Buying in a down market? How to and Why?
October 7th, 2007 . by Mike KellyIt’s almost like dollar cost averaging into securities and stocks. If you are a consistent investor then this market is a great opportunity to get more for cheaper dollars today. If you feel the market is still correcting then factor this into your offering price.
In our area we are seeing values unheard of in years. My only caveat in this market is to try and get the BEST neighborhood for the cheapest price. Many folks are jumping on REO’s and “Short-Sales” but buying in neighborhood where this is prevalent could see further deterioration of the marketplace in that neighborhood. I would look for a “Short-Sale” in a great neighborhood as the chances of this recurring will not be as much as the other areas. However, if you’re an investor and go by the “deal” then head on. Just be aware of the neighborhood–Location, Location,Location. Besides, I just got an interest rate update from a lender I use and we are at 6.25% for 1 point!! Such great rates!! And if you are a fist time home buyer there are super programs for you to afford a home today. Just stay with the big boys: BofA, CountryWide,Wachovia, Washington Mutual as they got the money but don’t forget your local credit union!! In California they can make or break a deal.
