Buying or Selling a Home in California - Home Buying & Selling Real Estate

</head> <body text="#000000" bgcolor="#FFFFFF" link="#0000FF" vlink="#800080"> <script language="JavaScript">  </script> <h1> home buying</h1> <h2> home selling</h2> <h3> home buying and selling</h3> Buying or Selling a Home - Home Buying & Selling Real Estate Should You Wait to Buy in a Down Market of Falling Home Prices? Everybody wants to know how to best time the market when buying a home. It's just natural. Especially if you're thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right? Some Home Buyers Should Buy Immediately You're probably thinking: "Of course, she would say that. She's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why: If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall. If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home. If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale. Consider the "Loss" on Selling Your Present Home For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000. Consider Your Real Profit Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you? (This ignores monthly payments, but you would make those if you were renting, too.) Consider the "Savings" on Buying Your New Home If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000. Review of Selling and Buying Numbers So you "lost" $30,000 on the sale of your home But you "made" $50,000 on the purchase of your new home Doesn't that put you $20,000 ahead? Don't Forget the Impact of Interest Rates Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price. FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power. FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power. FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power. Look at the Differences Among Purchase Prices versus Interest Rates If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices: $425,000 sales price, at 8.25% interest, your payment is $2,554. $450,000 sales price, at 7.75% interest, your payment is $2,579. $475,000 sales price, at 7.25% interest, your payment is $2,592. $500,000 sales price, at 6.75% interest, your payment is $2,594. $525,000 sales price, at 6.25% interest, your payment is $2,586. The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates. A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don't panic over newspaper headlines. Make an informed decision. Run your own numbers. First-Time Home Buyer Tips Tips for Buying that First Home Three Home Buying Mistakes How to Find the Right Home Home Buying Advice Looking Twice at Overpriced Homes Hot Design Features in Today's Homes Best Day to Buy a Home Advice From California City Real Estate You Won't Find Anywhere Else on the Web Single Women Buy Homes, Too Why Was Your Offer Rejected? How to Negotiate an Offer Related Articles Buying in Falling Market - Falling Market Buys - How to make an offer. Buying a Home - Making an Offer on a Home How Markets Use Information To Set Prices Why the dividend tax cut will cause interest rates to rise. buying selling home, real estate buying selling home, buying home selling tip, 1001 buying home selling tip, buying dummy dummy home selling, buying home process selling, buying home sane selling staying when, buying home in maine selling, book about buying selling home, home buying selling services,  buying home selling toronto,  buying caledon home selling, home buying, home selling, buying home selling, home selling tip, home own selling, by home owner selling, home price selling, 3rd buying dummy edition home, buying selling home, buying a new home, home buying guide <br>  <p><a href="http://www.califcity.com/">homes for sale</a> </body> </html>