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Find Your Dream San Diego Home in a Down Market
Published : 01/21/2008 by Tim Holsten
What if you could find your dream San Diego home in a down real estate market?
I'm going to withhold the answer to this tough question until the very end of my comments.
Imagine you are driving around one Sunday afternoon just after leaving your favorite lunch restaurant in your San Diego neighborhood when you stop in at an Open House you saw on my Encinitas real estate website. You are in awe as you tour the home because it meets every item on the 'dream home checklist' that you have dreamt of, but never thought you could afford.
Next, you do what any reasonable person would do and ask what the price is. You ask the agent to repeat herself because you remember homes selling for much more in this neighborhood than the price she just quoted you. As you drive away, you do some simple math and realize you can afford this home. You are about to share your excitement with your spouse when they quickly say, "Too bad the market keeps going down." What do you do?
I suggest you make a list of San Diego real estate market pros and cons.
The main pros would be:
1. This is your dream home and your quality of life will immediately improve.
2. You know how difficult and lengthy it can be to find your dream home - just check the tons of inventory at my Carlsbad real estate website and that hurdle is no longer there.
3. You can afford this home and are not taking on a financial risk.
4. Interest rates are still low and you can get a great rate.
The main cons would be:
1. The market is still possibly going down and your new home might depreciate in the short term
2. San Diego interest rates might go even lower.
3. If you currently own a property, you might have difficulty selling it.
Let's dissolve the interest rate con quickly. If rates head further south then you can simply refinance. There is no interest rate hurdle. Regarding having to sell your current property if you own one, of course your home might be worth less than it was at the market peak in late 2005. If you price it on day one attractively, instead of with unrealistic hopes, it should sell in a reasonable period. And you have already done the math and concluded you can afford the payments on the new home anyhow.
So the biggest hurdle left is that the new home might depreciate. It turns out this is not a hurdle either as long as you plan on living in your dream home for many years. This will allow you to ride out the current market cycle and begin appreciating again.
So, what if you find your dream home in a down market? I suggest you make your dream come true.
Tim Holsten
Team 73 Degrees
Keller Williams Realty
858.922.7908
tim@73degrees.com
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