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Is Buying In A Down Market A Good Idea For Your Family?

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Education & Training with Coaching By Peter-Real Estate Investment Coach

Is Buying In A Down Market A Good Idea For Your Family?

 

Are you thinking of buying a house, but are not sure if now is a good time? The best way to determine if now is a good time for buying in a down market is to do your homework. Learn as much information as you can about buying real estate in a down market because this will help you make an informed decision.

 To help you get started with your research on buying in a down market, there are some important things that you need to know and consider.

 One: If you have a home that you want to sell so you can move up to a more expensive home, then now could be your best time to buy real estate in a down market because the longer that you wait to sell your current home, the lower the price you will get for your home. So, if you need to sell so you can buy a more expensive home, then now is a great time for you to be buying in a down market.

 Two: For some people, the smart thing to do is to sell your home now, so you can get the best price. Find alternate housing for a few months then buy your new home.

 Three: If you need to sell your home and buy immediately you may still be ahead because the price reduction for your new home purchase may be greater than the loss on the sale of your current home.  If your current house is worth $400,000, but due to high inventory and few buyers, you have to reduce the price by 10% and you only get $360,000 then you lose $40,000.

However, if you are going to be moving up to a house that costs $500,000 and has the same 10% discount or $50,000, so you are still $10,000 ahead on your real estate investment.

The most important thing to remember when you are considering buying in a down market is that you have to take time to do your research and figure out what you would lose and gain. This will help you make an informed decision about whether it is a good idea for you to buy and sell real estate at this time.

  

 

Comments (3)

John Combs
Alan Deblat Real Estate Corp. - Oceanside, NY

It is a great time to trade up as long as there is equity in the current house.

Mar 31, 2009 01:21 AM
John Combs
Alan Deblat Real Estate Corp. - Oceanside, NY

It is a great time to trade up as long as there is equity in the current house.

Mar 31, 2009 01:21 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

It helps if you live in an area where your example is not a $400000 home but a $40,000 one like rural America. Here it is way way cheaper to own than renting with low rates to buy instead of cash down the trash each month.

Mar 31, 2009 01:27 AM