Don’t Wait for Prices to Fall
by Tyler on 07/29/09
The biggest issue that I run into with my clients is the fear of overpaying for a property. They are worried about bidding wars and ending up not getting as good a deal as they thought. The truth is in Northern Virginia, homes are priced way under the market value because of all the foreclosure properties.
For all of you that are hesitant to take the plunge right now, here are some facts:
- Sitting on the fence can be expensive. Some of you would have more equity today, regardless of the falling prices, if you had bought when you first considered it, instead of throwing your money into a black hole renting.
- Financing is unpredictable. Highly qualified buyers a year ago can’t find financing this year because the credit market has gotten more strict or personal finances have caused home buying to become undesirable.
- Interest rates are on the climb. Look at this scenario: if prices decline by another 10%, but interest rates increase by 1 percentage point, your monthly payment will be the same.
Take a step back and think about what waiting could do to you. If you’re in the market to buy a home, you’ll do the right thing.
