Now is a great time to buy Real Estate  but!   

      The number of serious buyers is reduced right now now because they are so worried!  Here are seven common reasons buyers or seller-buyers are afraid to buy.  I have some possible answers to these concerns below:

1.)    What if prices drop even more?

2.)    What if I take a loss on my property when selling?

3.)     What if my credit isn’t very good?

4.)    What if I don’t have much of a down payment?

5.)    What if I sell before I find the house I want to buy?

6.)    Will the price of gas affect my investment?

7.)    What is the long term investment picture?

Answers……

1.)    If you’re looking for a short term investment, there may be a better time to buy.  If you intend to be in the property less than two years you may not gain any equity at all.  Fortunately, the California market is Cyclical, if you intend to stay for five years or longer - the market will have appreciated, increasing your investment.

2.)    Buyers who have to sell first may fear losing money on their sale but need to remember that most real estate markets in California and throughout the Nation have suffered the same fate.  You should get a good deal as well when you buy. A lower purchase price will also result in lower Property taxes.  When you sell first it is best to have a good down payment saved for the next property.

3.)    Because of the “bad loans” that were made where the result was too high payments on properties losing value, there have been many foreclosures and a tightening up on credit as well as closed loan offices.  You might be surprised however to find that although your credit may not be excellent, you can work with a lender to customize a loan for you.  However , now lenders and sellers may want to know your credit score.  Lenders can work with those with poor credit over a longer period of time like six months to write letters of explanations, make corrections,  and find the financiers who can do the most with lower credit scores.  It is true that one hundred percent financing and a poor credit score is going to be tough unless the seller is willing to extend some type of Seller financing. 

4.)    If you have a good credit score, and even a small down payment you will probably find a good loan, and possibly some seller financing to purchase a home.

5.)    If you need to sell first, and it looks like it will close escrow you can do a couple of things: your can ask to rent back for a month while you find your house, or you can rent another house, and store your possessions.  Then you can enjoy being one of the few buyers in a sea of discounted properties.  Or you can offer your home for sale contingent on your finding a suitable replacement home, but this may discourage some of your buyers. 

6.)     7. )   The price of gas while expensive is still not high compared to the cost of real estate.  It should not affect the long term growth of California which is predicted to double or more in the Sacramento Region.  California is expected to see millions of Retirees in the next ten years.  The long term picture is growth!  Growth should result in appreciation of property values, as long as it is controlled growth without excessive speculation building. 

To sum up, This Market is a real Opportunity for Buyers!  Prospective buyers should not expect the market to remain this way for long.  The upcoming government led drop in interest rate (we’re hoping) will be temporary.  The inventory of foreclosures will be bought up.  Most sellers are motivated but not desperate and could pull the properties off the market rather than wait for a low offer.  Buyers should not expect to buy a property for half price!  In many cases the listed price is already twenty percent or more below where it would have been listed two years ago.  If you have found the property you want to buy, don’t wait!!  Ask your Realtor to present an offer that you are comfortable with, excited about, and is contingent on a safe loan that is do-able for many years!

If you Eliminate the financial stress -- your next home purchase will be a good long term investment.

Karen O’Brien   Timberline Realty Inc.

530-823-1088 x 12