Is it a Great Time to Buy a House? - It Depends

Here is a comment in response to my recent post were I said it was a Great Time to Buy.

"You seem to have changed you tune on housing. Last spring, you said we were nowhere near the bottom, and to avoid purchasing the typical fungible suburban tract house. Now you are saying to come see you if we are interested in buying. What gives?"

And here is my response. I haven't changed my tune on housing. I report what I see, as I see it. So things are always changing and that is what I discuss. When I say it is a great time to buy, it means you must still be a smart buyer. Here's an example. There are three identical homes in a subdivision.

Home 1 - Owned by the builder and he is asking $250,000 for this new home.

Home 2 - Owned by a homeowner and they are asking $350,000 because that is what they paid for the home three years ago. Moreover, they had 100% financing and that is the amount they still owe.

Home 3 - Owned by a bank that foreclosed on the home. They just want out. So they put the home on the market at $175,000.

This is not a perfect example, but it gets the point across. When I say prices are still coming down, I mean the prices on Homes 1 and 2. As you can see, there are many homes listed far above the market, because homeowners are stuck, and they refuse to accept reality . . . or they cannot afford to. These homes are going to drop 30-50%. But Home 3 is already at that 50% off level, and 30% below what the builder is asking.

So it is a GREAT time to buy if you are going to live in the home and you know how to buy. If you are a patient investor, it is also a time to buy . . . if you know what you are doing!!!! Investors must do their homework and understand the markets. Too many investors and end users hire a friend or relative to be their real estate agent. That is usually a huge mistake. You need to hire an experienced expert.

Visit our website for a wealth of information . . . www.FloridaHomes.PRO
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