Pinetop White Mountain Blog

Good Evening Everyone,

The question of the day is why should you buy now?  Prices are still falling, foreclosures are still coming in to the market place, if I wait, I might get a better deal.  Right?

Well all of the above statements are true but...there are some other things happening that might make all of that irrelevant.

1) Interest rates are at a 40 year low.  There are now lenders out there who will finance a second home for as little as 10% down.  You need good credit and a steady income, there is no question about that, but the programs are out there.

2)  FHA is a good deal for you RIGHT NOW if you are buying a primary home.  BUT...starting September 7th, FHA & HUD have come up with a plan to get more money to your government in the form of higher Mortgage Insurance Premiums.  Translated, this means they are raising taxes.  Yes, our Government has to find a way to pay back all those Bail outs and for the new Health Care so they are raising taxes.  They are just calling it by a different name.  The "T" word hasn't been specifically mentioned but lets face it, that is what this is all about. 

How much of an increase?  Well that depends.  It could be as little as .80% of the purchase price or it could be as high as 1.80% of the purchase price.  What that amounts to is higher payments.  Higher Payments equals less buying power. 

3)  There are some really motivated sellers out there who just want to see an offer, any offer, on their properties.  They know they can't compete head to head with the foreclosures, but they are motivated to sell.  They will look at a reasonable offer and at least as a Buyer you would have a real person to deal with, not some faceless entity who doesn't care if you buy the property or not.

4)  It is truly a Buyer's Market.  There are lots of affordable properties on the market.  More than we have seen in almost ten years.  People who need to sell are finally realizing that they must price to sell or they might as well take their homes off the market.

So what is your excuse?  Price drops are only one part of the equation.  If you doubt what I have said today, check me out on Twitter.  I posted the information yesterday from the horses mouth.  The HUD documents are on that link for you to read for yourself. 

Don't wait.  Waiting is going to cost you more in the long run.  The time to move is NOW!

Thanks for reading.  Until next time.

Sandra Paulow, Associate Broker, GRI, SFR, REALTOR®

(928) 242-0300  or email me at: sbpaulow@frontiernet.net