Know what question I always hear in real estate right now? Can you take a guess? Those that don't even know much about real estate could take a pretty good guess. Correct. You're right. No contender the question I hear the most is as a real estate agent here in Boise is, "How could someone be so intelligent?" OK, I've usually received questions that are opposite that one and never have received this question. So here is the big question, "Is the market the lowest it will get yet?"
It's certainly the million dollar question-seriously. Wish I could answer, because I'd certainly get a million dollars. Think of the question every kid loves to ask-"Are we there yet?" Exactly like when we were kids, we still get the same answer-no. Are we there yet-no. Has the market hit bottom yet-no.
I really would be a millionaire if I could supply the answer to this big question because a ton of people are wanting for that perfect time when we have definitely reached the bottom and then they can leap into the market for Boise real estate. If only I could be the agent for just one tenth of a percent of the crowds of people who are waiting to buy when the market is at the bottom I'd be able to finally answer my wife's big question of, "When are we going to be rich?" I've spoken to so many people-the simple guys to the richest of the rich-everyone is wishing to buy Boise real estate, many for investments and many to live in. You can't imagine how many are eternally waiting.
Here are a couple of scenarios where waiting for the real estate market to hit rock bottom does not make sense. One is the client who owns a home, but wants to upgrade. He's lost so much in equity in his home that he can't possibly bring himself to sell at these low prices. He's going to wait until the market climbs back up and then buy. Sounds clever, am I right? Let's see, when the price of his home raises sufficiently to finally sell his home, so will the price raise of the nicer home he is hoping to purchase. Unless you really want to plan to sell in a high market, THEN RENT while you wait for the market to fall again, then purchase when the market is down again, it will not make much of a difference. Those that already own a home are either going to sell high and buy high or sell low and then buy low. So those waiting clients won't get any benefits to their waiting-and truthfully, there will be an eventual rise in interest rates making their "time the market" plan to give the consequence of them paying higher interest rates.
Next example would be the people "waiting on the sidelines" or the people who are waiting to buy for the first time. They observe that prices are dropping and think-I'll just be patient to buy while I wait for the prices to fall even lower. This thinking is at least more understandable than the first example but still the end result is likely to be tears. Did you realize that right now most people renting are dishing out more money their month to month rent than they would be dishing out if they just purchased the exact house? Seriously. The price of a home and interest rates have dropped so far that most of the month to month payments on Boise homes I have assisted buyers to purchase are 20% lower than the average rental prices. I need to add, the majority of people when they purchase an average starter home will save the amount of about $150 to $200 each month in taxes because of interest deductions. When you put these tax savings in mind, about 30% percent each month is being overpaid by you. Unless you foresee a move in the next three years and if you can qualify for a mortgage, you should probably buy now.
At this point you are probably asking another question I get a lot "Are you done talking yet?" Almost. Here's my last tidbit on trying to time the real estate market. I've rarely met a homebuyer who considers the interest rate when he's considering whether a Boise home is "priced well." (Of course it doesn't have to be a Boise home to be a factor. I just think of Boise homes because that's where I do business. This applies wherever you are.) So here's an example. At 5% interest, over the course of a 30 year mortgage, a $100,000 home will actually cost you $193,000. That's bad enough. However, if mortgage rates go up just one point to 6%, that same $100,000 home will cost you $215,000. That's a difference of $22,000. Would you like to pay an extra 22% on your home? Of course you wouldn't. That's what you'll be doing if you wait until interest rates go up even just one point. Don't wait for rates to rise. I don't think home prices will drop enough to offset the interest rate expenses you'll pay.
If you're still reading, you are to be commended. I'm not sure if my own mother made it this far when she proofread this for me. Bottom line-if you are planning on buying real estate, don't wait (particularly if you are a move-up buyer.) And don't forget about interest rates. They are as important as purchase price when considering buying a home. You usually don't get to pick your rates so don't squander your opportunity when rates are low.
It's certainly the million dollar question-seriously. Wish I could answer, because I'd certainly get a million dollars. Think of the question every kid loves to ask-"Are we there yet?" Exactly like when we were kids, we still get the same answer-no. Are we there yet-no. Has the market hit bottom yet-no.
I really would be a millionaire if I could supply the answer to this big question because a ton of people are wanting for that perfect time when we have definitely reached the bottom and then they can leap into the market for Boise real estate. If only I could be the agent for just one tenth of a percent of the crowds of people who are waiting to buy when the market is at the bottom I'd be able to finally answer my wife's big question of, "When are we going to be rich?" I've spoken to so many people-the simple guys to the richest of the rich-everyone is wishing to buy Boise real estate, many for investments and many to live in. You can't imagine how many are eternally waiting.
Here are a couple of scenarios where waiting for the real estate market to hit rock bottom does not make sense. One is the client who owns a home, but wants to upgrade. He's lost so much in equity in his home that he can't possibly bring himself to sell at these low prices. He's going to wait until the market climbs back up and then buy. Sounds clever, am I right? Let's see, when the price of his home raises sufficiently to finally sell his home, so will the price raise of the nicer home he is hoping to purchase. Unless you really want to plan to sell in a high market, THEN RENT while you wait for the market to fall again, then purchase when the market is down again, it will not make much of a difference. Those that already own a home are either going to sell high and buy high or sell low and then buy low. So those waiting clients won't get any benefits to their waiting-and truthfully, there will be an eventual rise in interest rates making their "time the market" plan to give the consequence of them paying higher interest rates.
Next example would be the people "waiting on the sidelines" or the people who are waiting to buy for the first time. They observe that prices are dropping and think-I'll just be patient to buy while I wait for the prices to fall even lower. This thinking is at least more understandable than the first example but still the end result is likely to be tears. Did you realize that right now most people renting are dishing out more money their month to month rent than they would be dishing out if they just purchased the exact house? Seriously. The price of a home and interest rates have dropped so far that most of the month to month payments on Boise homes I have assisted buyers to purchase are 20% lower than the average rental prices. I need to add, the majority of people when they purchase an average starter home will save the amount of about $150 to $200 each month in taxes because of interest deductions. When you put these tax savings in mind, about 30% percent each month is being overpaid by you. Unless you foresee a move in the next three years and if you can qualify for a mortgage, you should probably buy now.
At this point you are probably asking another question I get a lot "Are you done talking yet?" Almost. Here's my last tidbit on trying to time the real estate market. I've rarely met a homebuyer who considers the interest rate when he's considering whether a Boise home is "priced well." (Of course it doesn't have to be a Boise home to be a factor. I just think of Boise homes because that's where I do business. This applies wherever you are.) So here's an example. At 5% interest, over the course of a 30 year mortgage, a $100,000 home will actually cost you $193,000. That's bad enough. However, if mortgage rates go up just one point to 6%, that same $100,000 home will cost you $215,000. That's a difference of $22,000. Would you like to pay an extra 22% on your home? Of course you wouldn't. That's what you'll be doing if you wait until interest rates go up even just one point. Don't wait for rates to rise. I don't think home prices will drop enough to offset the interest rate expenses you'll pay.
If you're still reading, you are to be commended. I'm not sure if my own mother made it this far when she proofread this for me. Bottom line-if you are planning on buying real estate, don't wait (particularly if you are a move-up buyer.) And don't forget about interest rates. They are as important as purchase price when considering buying a home. You usually don't get to pick your rates so don't squander your opportunity when rates are low.
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