What's Hot in Costa Mesa Real Estate and Costa Mesa Homes for Sale, Colin Delaney Real Estate Blog

My New Blog

The Fall is Deal Time!!!

November 13th, 2007 11:36 AM

I always advise my best clients that the Fall is one of the best times to find a home- especially if you want to negotiate a great deal off of the purchase price. And if you've seen the recent ads telling you it is a good time to buy a home, they're right.

If you're thinking about buying, get out there- there is little to no competition (as a buyer) and you can build in any type of depreciation you might be afraid that's in the near future. I recently represented a buyer on a listing that was priced at nearly $1,290,000. We were able to negotiate nearly $250,000 off of the top, giving the buyer nearly a 25% built in buffer against any negative market trends.

The problem with the market is you just have to get your head right. If you're thinking of buying a house on the short term (1-2 years), don't buy. It would be foolish. But if you look at a home as an investment and a place to live on a longer term, it's a great time to buy.

Rightnow, interest rates are still at historic lows, conventional financing is available, and a home's value historically will double every 10 years.

That’s a return most investments can’t match. During the past three decades, home values have increased an average of 6.6% per year. And because most buyers invest only a small part of their home’s total value in a down payment, their return on that initial investment is much greater, thanks to the power of leverage.

Did you know that the average homeowner today has 36 times the wealth of the average renter? Homeownership is key to climbing up the economic ladder. When you own a home, you’re essentially paying yourself and building up equity. Not to mention the tax deductions only owners can claim, such as property taxes and mortgage interest.

Of course, a home is much more than a way to accumulate wealth.

It’s a place to enjoy your lifestyle and your loved ones. What other investment can claim that?

The best way to evaluate your situation and options is to contact a Realtor and look into the local market.

Posted by Colin Delaney on November 13th, 2007 11:36 AMPost a Comment (0)