To buy, or not to buy, that is the question...

Yes it's true. This market is challenging for sellers. In most parts of the country, the inventory has tripled. With so many choices out there, buyers can afford to be picky. Do you have the best product, or the best price?

Why are buyers waiting on the sidelines though? I've been selling real estate for years, and can't recall a better time to buy. There are 3 reasons that make me believe now is the time to write an offer.

1. Interest rates are extremely low. Let me say that again. Interest rates are extremely low. You can get a 30 year fixed rate right now for less than 6%. We haven't seen that in years. If prices go up, and rates go up, it will cost you thousands!

2. Inventories are high. I know we already touched on this above, but it's true. In a seller's market, you usually have very few listings and a lot of buyers. This is what creates a seller's market (supply and demand) Well we're currently in a buyer's market so the exact opposite is true. There are a ton of sellers and very few buyers. Buyers can find motivated sellers, favorable pricing, incentives, etc. If you don't get the price you want, you can say "next!" If you don't get the inspection results that you were looking for, again you can say "next!" Buyers are in charge.

3. Prices are flat. In some parts of the country, prices are up. In many parts of the country, prices are down. Take advantage of the situation. There are more foreclosures, more motivated sellers, more people that are relocating for work and need to sell, etc.

Bottom line, look at your situation and decide if now is the time for you to make a move. Of course homeownership is not for everyone, but don't wait because the national news media has painted a doom and gloom picture. Even if prices continue to decline, if rates go up, your payment will most likely be a wash. Also, I often hear people say "well I'm not going to buy because prices are suppose to drop 2%"

This may happen, this may not happen, but is it worth the risk of waiting? Personally, if I bought a house for $300,000 and it went down 2%, I'd say "so what"

So I paid $300,000 for a house that's now worth $294,000. Big deal. I'm still enjoying pride in ownership, tax benefits, etc.

Real estate is a great investment tool. Values double every 10 years statistically. Our population continues to grow, and people need a place to live. Real estate is a sound investment that has made millions of people wealthy.

To learn more, please visit my website at www.jaybaklund.com

Jacob Baklund, Bellingham Realtor