Now is the Time to Profit from the Mistakes of Others

Now is the Time to Profit from the Mistakes of Others

Let's list some bad real estate ideas from the last few years.

Lenders made some big mistakes that lead to the current housing crisis. They relaxed their loan standards and made many unwise loans. Loaning money to people who have a history of not paying their bills, the Sub-Prime crowd, was a really bad idea. These high default rates started this crisis.

Flippers, people who counted on continuing appreciation to make them money, instead of using sound investment principles, have also contributed to this crisis. Many are defaulting on their loans.

Homeowners, also counting on continuing appreciation, constantly refinanced to take equity out of their homes to buy cars and big screen TVs and go on vacations, have contributed to this crisis. They now owe more money than their house is worth.

The current result of all these mistakes is very low interest rates! Lenders are back to making sensible loans again and the only way to get buyers to buy right now is to offer very low interest rates. For those people with decent credit, well under 6%!

If you are a buyer, with financing, there are bargains to be had.  You are in the driver's seat! There is no shortage of homes for sale. Bid low.  If sellers won't budge from their price, walk away. Another home, at a better price, may show up.  Ask for closing costs or a rate buy down, a home warranty, and all the appliances.  Sellers are much more willing to take care of all the repairs identified by the repair inspection, than they have been in the past.  If the house needs some updating, it may be possible to get the seller to complete this work before closing.

Oregon has weathered this housing crisis better than most of the nation. Don't let fear and negative thinking block you from buying a home now. This is a golden opportunity to profit from the mistakes of others.

Wayne B. Pruner is a Realtor® with Oregon First, who works in the Tigard Oregon area. He is ready to help you with all your real estate needs. His phone number is 503-891-0795. Here are links to his real estate website and his real estate blog.