Buyers ... Stay Informed on the Local Market

I know that there is a lot of concern about the economy at this time and many people are sitting on the fence waiting to see what’s going to happen. There are many buyers that are either waiting for the prices to bottom out or interest rates to bottom out, or both. The reality of the matter is that now is a great time to buy.

The only way that you will know when the prices have bottomed out is when they have already started to rise. The same is true for interest rates. Another reason that now is such a good time to buy Lexington South Carolina Real Estate, is the inventory is great and sellers that have to sell are taking less for their homes than they would have a year ago. Many builders are also carrying more inventory than they would like and in many cases are offering some great incentives. When the market turns around we are likely to see these incentives start to fade away. By waiting, you could have less inventory to choose from, pay a higher price for the home, have a higher interest rate and loose the incentives that are currently being offered.

I also know that some people are waiting to purchase because they may be afraid that they may get laid off. While this is a valid concern, I know of a lender that is offering a protection plan where if you get laid off, they will make your payment for up to 12 months! And the best part of this is that it is FREE for the first year! After that, you will have the option to continue the coverage for a fee or you can drop it. The choice is yours.

If you currently own a home and are thinking about moving up, you may be concerned that you will not get as much for your home as you would have a year ago, and you are probably right. Keep in mind that you will probably not pay as much for a new home as you would have a year ago either. If your current home is valued at $100,000 and you wind up selling it for $90,000, then you would end up getting 90% of what you feel your home should have sold for. Now if you purchase a $150,000 home at 90% of the asking price, you would be paying $135,000, or a savings of $15,000. Depending on what your current interest rate is, you may also find that you would have very little increase in your payment. Let’s think about this for a minute…a larger house, possibly very little change in payment, instant equity, and a loan that offer a protection plan. This sounds like some pretty good reasons to get off the fence and get your home sold and move up.

If you are a first-time homebuyer, many of the things we have discussed are true for you as well...great selection of homes, great prices, great interest rates, builder incentives on new homes and a buyer protection plan from the lender. If you are currently paying rent, you may very well be able to purchase your own home for the same or less than you are currently paying for rent. Doing this would mean that you are working toward paying for a house for you instead of working to pay for a house or apartment for someone else! The other thing is there is a tax credit that you can claim on your taxes if you purchase before December 1, 2009 that is 10% of the cost of the home, up to a maximum of $8,000. This is a true credit, NOT a loan!

If you have any question please feel free to contact me either by phone at (803) 233-7544 or email at Charles@CharlesStill.com.

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