leighyork

Many Americans are wondering if they should buy or sell real estate right now.  Congress certainly isn’t doing anything to answer the question.  People just don’t know what to expect in the economy.  I’d like to share some facts with you that may help you make a decision.

1)  Every market is different.  The media is your worst enemy when it comes to knowing what’s going on in YOUR real estate market.  They don’t know!  They are quoting national numbers that are based on averages.  You don’t need the nationwide average, you need to know what’s happening in your neighborhood.

2)  A Buyer’s Market and A Seller’s Market are not necessarily exclusive of one another.  Most markets in Texas are a great example of what I’m saying.  Because interest rates are so low a buyer can get much more for their money.  They qualify for a higher sales price.  So, even if the property values have not dropped  it is still a buyer’s market because they can get more house than they can when interest rates are higher.  Say a seller has only owned their home three or four years and property values have not climbed. They’ve been steady or even a very slight decline.  If he sells it for what he paid, he lived there for nothing but interest payments.  He can sell and get more house for his money because interest rates are low.

3)  Don’t assume your home is worth less or not appreciating.  Don’t trust your tax appraisal.  A lot of states are ‘non-sales price dislosure states’.  In those states, the taxing authority is often way off on true market value.  In disclosure states many tax districts don’t make adjustments for market ‘changers’ such as employment rates, city limit expansion, zoning changes, etc.  Get accurate comparable sales information from a REALTOR or buy a market appraisal from a licensed appraiser.

4) The fastest, most solid way to build wealth is through real estate.  You must own it to make money though.  If you are renting, you are buying the house for someone else.  You’re making someone else wealthy.  If you already own a home, consider buying a rent house.  There are more renters in today’s market and the interest rates are still low even for investment properties.

5)  Interest rates are in the 4s.  Are you waiting on ‘free’ money?  If interest rates get much lower it will be because our national economy is not improving.  Let’s hope that isn’t the case.  You need a place to live so you might as well own.

6)  Having said all of this about why you should buy now, let me give you another reason to sell.  The inventory of homes for sale in your area may be very limited.  If there’s little to no competition, it’s a good time to sell.  If you’re house is better than the rest and you price it competitively, you have a sale.  Now, go buy more house for the same payment you’ve been making on the higher interest rate note.

I hope this has helped you.  As always, you’re welcome to email me with questions or suggestions.  817-613-6420

Good luck!!