The five “Do’s” every Buyer should know right now:
- Do buy in 2009... or you will definitely whine! What I mean by this is that there has not been a buying opportunity like the one in DECADES. NAR's Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high. Houses are ON SALE NOW!
- Do understand that the Government will Stimulate things... Lot’s of things. Governments think they can “buy” their way to prosperity... And to some degree they can “jump-start” things. But Government action by increasing money supply (or as they like to call it stimulus) has a tiny little after-effect – INFLATION. So, when the government says “ooppps” we printed to much money and this little inflation thingy isn’t looking too good – they increase INTEREST RATES. Currently interest rates are so low – the last time they were this low Leave It To Beaver was still running “new” shows... Not the reruns we’ve all become accustomed to!
- Do understand what VALUE means. Don’t confuse value with cheap. Right now it’s very easy to be price focused – and yes you should be – but Buyers MUST look for value in a home purchase. A cheap home is just that – cheap... And they tend to remain that way. A home that has true VALUE can be purchased today at a great price that will ensure a good equity return in the future.
- Do make a choice to not believe the electronic Cyclops in your living room. The media only can report on what has happened. They use fancy charts and graphs. They have neat touch-screens and experts that went to really, really good schools. But, at the end of the day they are reporting to you on a time lag of at minimum 60 days and more likely 6 months. The only true way to know what a market is doing is to talk to a Realtor or a Title Agent. Why? BECAUSE THEY ARE ON THE FRONT LINES. Realtors and Title Companies know about transaction volume before all others – and trust me – transaction volume is up – deals are being made. By the time the media reports that transaction volume is up for 3 months in a row... They are at least 5 months behind on calling the bottom.
- Do buy a home for the right reasons. Homes are for you and your friends and family to gather in and to enjoy life in. Your home is not a reality show. Your home is not a bank. Your home is where memories are made, first steps are taken, and life is lived... That’s it. Pretty simple stuff – but we ALL forgot what a home truly is. A home is your connection to community, to family, and to friends. Buy a home in 2009 for all the right reasons and then we all will be better off in the long run!
A New Direction In Real Estate
Jeff Martel | Broker / Marketing Director
7400 West State Street, Boise Idaho 83714
Voice | 208.860.3696
Fax | 888.452.5257
Main Brokerage: http://www.43re.com
New Homes: http://www.NewConstructionBoise.com
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