for more information on mortgage rates, mortgage programs and referrals to excellent lenders, contact me at:
karenSBrealestate@gmail.com or 805-280-9908.
Tag Archives: interest rates
4 Tips for Buyers in Today’s Real Estate Market
Many buyers today are concerned about how to buy in this market, unsure if prices are going to go lower, or whether they are on the upswing. The market is a living thing, so while you can look at trends and forecasts, you can’t really say with certainty which way things are going. But here are a few tips that can help when you’re out shopping for that first or next home:
1. Many buyers are still unsure about whether it’s the ‘right’ time to buy, especially if they are trying to buy a more expensive home than the one they’re currently living in. But a down or ‘buyer’s’ market is EXACTLY the right time to buy ‘up’, even if the home you currently own has lost value in the past few years. Here’s why: those higher-priced homes have decreased in value also, by the same percentage as your current home. That same percentage on a higher-value home means it’s lost more dollar value than your current, lower value home. The amount you save on your higher-priced purchase will be greater than the loss on your lower-priced home, and when prices go back up, your gains will be higher, too.
2. If your market is truly declining, the sooner you sell, the less you lose. Of course, in a declining market, everyone who’s thinking of selling is tempted to ‘hang on’ until the market improves. Usually, that takes years, so if you have that much time, by all means wait. But most people don’t. One way to lessen the pain is to sell your home, then rent for awhile as prices continue to fall, then buy into the new, lower value market.
3. Think about which way interest rates are going. Many buyers fixate on home values, but neglect to calculate the effect of interest rates on their purchase. As rates go up, your purchasing power goes down. For each 1/2 point increase in your interest rate, you lose $25,000 in purchasing power.
4. Everybody wants to find a ‘deal’. While it’s easier to find one when the market favors buyers, most people overlook the overpriced homes, opting to wait until the price comes down. I’ve seen it happen more than once, where buyers wait, the price comes down to something attractive, and then several buyers are competing to buy it at the lower price. Consider making offers on overpriced homes, if you can find market data to support your ‘low’ offer. And especially if the home has been on the market for awhile. It also helps if your agent is able to find out some information about the seller’s situation.
If you are a buyer wondering what to do in today’s real estate market, and would like some guidance, you can contact me at:
Karen Blackburn, Realtor
KELLER WILLIAMS REALTY
1435 Anacapa St.
Santa Barbara,CA93101
805-470-1002
Living in Santa Barbara 