These are some very unsettling times. Unemployment in DC is at near record highs. DC property values are amazingly holding steady."So, what's going on?!" It seems that most consumers are in the Land of Paralysis. Major purchases are delayed, vacations are put off or downgraded, and people are more cautious in all their spending.
I understand. If my only source of information was the media, I would be confused, misinformed, and scared too! And while I can't tell you the exact time when the housing market will turn (not a single soul can!), I do know that home ownership is still a GREAT long-term investment & renting will NEVER increase your wealth. I also know it isn't about timing the market, but rather time in the market.
During this phase, when real estate in much of the country can be bought for relatively low prices, you need an expert on your side. These windows of opportunity only come around about once every 15 years or so and traditionally last maybe 12 to 18 months. I'm not talking about buying & flipping here. I'm talking about buying & holding. But by the time it's on the front page, it is always too late.
Smart Financing:Today, I see more & more individuals worried about getting the wrong financing. And that's a healthy & legitimate concern. Buying a home with the wrong financing is just as bad (or worse) than buying the wrong home. The predicament with foreclosures is a reflection of previous poor lending practices. It should have never happened, but if you're working with a reliable Realtor®, they should also be putting you in touch with a trustworthy lender.
Some customers fear that they may not qualify for a mortgage, especially since standards have tightened in response to the foreclosure crisis. Believe me, if you are a good credit risk, you can get a mortgage with a fixed interest rate under 5% - not the lowest ever, but pretty darn close! Now, to me, that is far more important than most other media headlines! Even if your credit isn't perfect, FHA loans offer some good options.
At the moment, first time homebuyers can take advantage of an $8,000 tax credit. This may be made even better after the recent hntst that it might be applied to the down payment in some cases. In DC and many areas, there are incentives to encourage home buying as well. Your Realtor® can fill you in on any special programs that can help you ease into home ownership!
Price it Right from the Get-Go:Sellers want to move on and take advantage of the great deals available for their next home. The single biggest mistake sellers make is pricing their current property unrealistically high. The longer a home sits without selling, the staler it looks-and the greater the perception grows, accurate or not, that something is "wrong" with the property. This mistake should be avoided by pricing the house correctly. Markets establish price and letting emotions dictate pricing decisions can be costly. Additionally, flawlessly staging a space is a must. Clear all clutter, deep clean, paint & remove all the bulky furniture - be committed to do whatever it takes to make the home shine!
There's Still No Place Like a Home:Homeownership is STILL where it is at. During these market fluctuations, don't lose sight of the big picture. Buying & holding real estate has done an amazing job of generating phenomenal wealth for the average American. And beyond the financial benefits are the personal rewards.
Home is where we create memories & dreams. It's where we find our respite, our calm, our love. We enjoyed an eight year real estate boom, and now we're stabilizing - unpleasant yes, but certainly not surprising...or permanent. Don't let the current media negativity cloud your decision making. This is a VERY good time to buy a home.
By the way, I put my own money where my mouth is. Just bought a NW DC house in late September.
What are your goals? Let's grab a coffee & discuss your real estate aspirations.
Hope. Desire. Expect. Accomplish. - Rachel
Rachel Valentino, President & Managing Partner
The Atlantic Coast Connection: Long & Foster Real Estate
Cell: (202) 270-6972
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