I wanted to share an article I wrote for The Ventura County Star, our local newspaper. This article was written in an attempt to enlighten and energize buyers. You have my express permission to reprint it in any format you choose.
Real Estate's
Theory of Relativity
We've all heard the saying "it's all relative" but when it comes to Real Estate, is it?
I would give the answer to that question a resounding YES!
My personal experience is a perfect example. It was 1989 when I sold my home in West Hills, CA and moved to Moorpark here in Ventura County. The market was hot and I sold my home in three days for top dollar. I consequently paid top dollar for my home in Moorpark. Are you starting to see the "relativity factor?" A few years later my property value declined by more than $60,000.00! I did not need to move at that time but if I did the price of my home would still have been "relative" to other homes that I would have had to purchase. I would have sold for less, but I would pay less for my next home.
The whole point I'm trying to make is that sure, prices are down, but so what! The "doom and gloomers" would have us all believe that the sky is falling, or that the "balloon" is bursting. The fact of the matter is that people still need to buy and sell real estate. Instead of looking at the current market as a "down" market, I look at it as a "market of opportunity"; one of the best times to make a move be it a purchase or sale.
Think about it from a seller's perspective:
- Price is relative.
- If you sell a home you will sell it for less.
- When you purchase your next home you will buy it for less.
- If you buy it for less, you will pay less in taxes.
- This works whether you are moving up or downsizing.
From a buyer's perspective:
- Price is relative.
- The lower the price, the lower the taxes.
- The lower the price, the more home you can afford.
- Many sellers offer incentives such as help with closing costs in a "down" market.
- Interest rates are historically low.
Are you starting to get the picture? This really is a market of opportunity.
There is a lot of press these days focusing on the negative aspects of a "down" market, but what about the positive opportunity for first time buyers, investors, and anyone moving from one home to another.
When a "seller" closes escrow, that person in an instant now becomes a "buyer". I say "we're all riding the same wave" and it really doesn't matter what market we're in.
It's all relative.
Rudy Detgen is a Realtor® and works for Troop Real Estate in Simi Valley
He can be reached at:
Phone: 805-217-6706
Email: rdetgen@sbcglobal.net
Web: http://www.rudydetgen.com/
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