Wonder what might be the best bet? Listen to what Warren Buffet thinks ....
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Wonder what might be the best bet? Listen to what Warren Buffet thinks ....
Over the past 8 years, it never fails that I hear this at least two or three times, “I’m going to put my house on the market after the holidays. ” While most people think this is the most logical thing to do, I’m here to provide a different view point for you so maybe you can see things the way they really are and maybe …. just maybe, see that Nov. and Dec. are great times to sell a home.
As everyone knows, the real estate market (along with any other type of market) is driven by Supply and Demand. Generally speaking, when Supply goes down, Demand goes up. You may be thinking, “Well, in the Spring and Summer market, there are more buyers out there. ” And I’ll be the first to tell you that you are correct, there will always be more buyers out there in the Spring and Summer. But to offset that increase of buyers, we also have a huge increase of people trying to sale their home. I can assure you that during Nov. and Dec., the seller supply drops more than the buyer demand so this is going to create an advantage for the home seller. Not only will they get a slight advantage in the marketplace, they will also get a couple more perks.
Get this …. One perk to selling your home in Nov. and Dec. is LESS showings! Sounds odd don’t it? The fact of the matter is that in this time of year, you won’t find the “tire kickers” out there. You will only see the folks that are serious about buying a home, and buying it now! So you can feel confident that when someone shows your home, it’s someone that is about to buy a home and not someone that is just thinking about moving. This is sure to make life easier for you and your family when trying to sell your home!
Another perk is going to be the visibility of your home to the buyers that are looking. In the Spring and Summer markets, your home will be competing with all the other folks that are trying to sell their home. So yours could easily get lost in the shuffle while folks are looking at homes online. During Nov. and Dec., you are competing with fewer homes and therefore, your home can stand out better because the crowd isn’t as big.
I have provided a chart below using generic numbers just so you could have a visual on what I’m talking about. Here, I’m saying that both Supply and Demand go down by about 50% in the Holiday months and in our market, we have more Demand than we do Supply. As you will see, in our market you will have the same scenario when selling if it’s done now vs. doing it in the Spring market. The difference being, life is easier for you if done now instead of waiting and opening your doors to the “tire kickers” that will be out there.
As I've stated over the last couple months, November is a perfect time to buy. Based on the past 12 months stats for Northern Virginia, the lowest prices were the homes that settled in Jan. To be perfectly clear, those would be the homes that went under contract in November and possibly December. If you would like to see those stats for yourself, just let us know and we'll get those right over to you. With interest rates around 4% right now ... this is totally a WIN - WIN situation for people looking to purchase a home right now. So when the time comes for you or someone you know to get into the real estate market (anywhere in the US), please don't hesitate to give us a call. If we can't help them, we have a powerful network of agents across the county that will be more than happy to help out.
Now, take a look at this image I've included. Just as this image shows, there are more than one perspective and we strive to show you that when it comes to buying or selling a home. We are not your "run of the mill" real estate agents! We will show you more detailed information then you could imagine to help guide you in the process of making a decision when buying or selling real estate.
You may have to look at the image for a minute but I'm sure you will see more than one perspective!
Listen to this folks.... Jim stated last year that it was over, and it was! The housing market HAS hit bottom and is on the way back up! If you or anyone you know is thinking about buying a new home in the near future, NOW is the time before prices climb more and interest rate get higher!!
John Paulson 9/27/2010
WOW! That’s a powerful statement.
There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?
According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.
According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.
The Wall Street Journal agrees with Paulson:
Ignore the critics. The odds have to be on his side…It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.
And Forbes said:
As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”
Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:
Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.
Check out this article on what is projected for the Washington Area Real Estate Market. If you are sitting on the fence .... you better get of and get into the market before it's too late. If you are ready to get into the market, give us a call, fasten your seat belt and get ready to enjoy the ride!!
Here's a little eye opener for everyone! This will help you understand that the banking industry and our gov't aren't working wisely to get this problem resolved.
The popular Home Buyer's Tax Credit has expired for all Americans, except for three very deserving groups: the brave men and women of the uniformed services of the U.S military, members of the Foreign Service of the U.S., or employees of the intelligence community who are actively serving outside of the U.S. on "official extended duty."
Official extended duty is defined as any period of extended duty outside of the United States for at least 90 days during the period beginning December 31, 2008 and ending before May 1, 2010.
Qualified military service members have one extra year to take advantage of The Homebuyer's Tax Credit of up to $8,000 for first-time buyers and up to $6,500 for certain repeat buyers. This means qualified military members must be under contract on a purchase by April 30, 2011 and close on the deal by June 30, 2011.
Qualified military buyers can also utilize this tax credit along with other available benefits from the Department of Veterans Affairs (VA), making this dollar-for-dollar tax credit extremely financially attractive with today's lower home prices and lower interest rates. That's because the VA allows qualified military borrowers to purchase certain homes in certain areas with no money down and no private mortgage insurance.
This Unit is A Gem and in a Perfect Location