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Stop Being Scared Already!!!!

By
Real Estate Sales Representative with Coldwell Banker Faucette Real Estate

I have a beef...

I am tired of the media scaring home buyers!  I understand the economic crisis is dire, and many people have lost their jobs, or their homes, or their retirement...I really do understand that, and sympathize.

BUT...for those of us who are lucky enough to live in an area that was not over-inflated at the beginning of this downturn, had low unemployment then and now, and is a truly wonderful place to live...I just wish they'd cut it out!

Being informed and being inundated with negativity are two entirely different things. 

Let us all remember...Real Estate is the best and most safe way for people to build savings, and, in some cases, wealth!  Real Estate prices go up and down, but for those of you who have been buying Real Estate for 20 years or so...do you remember how much you paid for your first house?  I'll bet is wasn't much compared to the next purchase, or the next, or the next!  I bought my first house for $6,000.  I sold it for $10,000.  I know many people have wished that they had bought Real Estate instead of investing in the Stock Market right about now!

Even though things aren't so good now, just keep these things in mind...

1.  As long as you can afford the monthly payment, pay at or under appraisal value, and plan on living there a few years, you're probably going to be fine, as long as you follow the advise of your Real Estate Agent & Lender.

2.  You have to live somewhere...why not pay rent to yourself, instead of your landlord?

3.  Don't overbuy!  Buy a home that fits your lifestyle and fits your budget.  If the bank says you qualify to buy a $300,000 home, shoot for $200,000, or whatever constitutes a payment that would be comfortable "rent" for you.

4.  Remember...you have tax deductions as a homeowner that you don't have as a renter!

5.  Get advice from your Real Estate Agent and ask them for statistics regarding prices in your area!

6.  There are lots of good deals out there now!  If you have 'fix-up' skills, buy a distressed property, a bank repo, etc., and get some instant "sweat equity"!  (Just make sure to get a good home inspection!)

7.  Have your Real Estate Agent negotiate your best deal...sellers that really need to sell quickly or banks with a huge inventory of repos are VERY negotiable right now.

This is my personal opinion, though biased.  Land is the only thing they're not making more of.  Real Estate Prices have gone up since the beginning of time.  Occasionally, prices do go down, but that's a great time to buy!  And that time is now.

I want to make clear that I wouldn't want someone to buy who is not going to be able to make that payment.  But happily, since the banks are under so much more scrutiny now, they don't lend to anyone who can't make the payments. 

If you're thinking of taking advantage of this great market and want to build a future by buying some Real Estate...well, just call me!  We can talk about it, and I can send you in the right direction!

Donna Schoby
Liberty Bank of Arkansas - Bentonville, AR

Chris, Great advice for buyers. Now really is a GREAT time to buy in NWA. It's a wonderful place to live and work!

Oct 28, 2008 08:25 AM