"Move up in a down market" ...

Right now is actually a great time to be thinking about buying. Not only are rates low, inventory high and massive tax credits for first timers, the long term results are worth it alone.

Here are some reasons you should seriously be thinking about buying right now.

Percent of Net Loss/Gain

   Here is an example if you were to sell your home in the Seattle market today:  You could take a 10% loss over what you desire to receive. We are all playing on a level playing field, so we would also have to consider that the seller of your move-up home would also take a 10% loss. Base on your existing home value of $550,000 less 5% we are looking at $27,500. On the surface, that is not a loss you would want to take, but if the prospective home’s value is $850,000, the net loss to the seller would be $42,500, yielding a $15,000 net gain to you.

Good Selection

  The “supply vs. demand” scenario is in full swing right now hence the lower house prices and larger inventory.  What this means to the buyer is that there is plenty of homes and properties in all price ranges to choose from.  There is probably no such thing as the perfect home, but you can get a lot closer to what you want than you would be able to if it were a “Seller’s Market.” In times past, you may have been reluctant to sell before you had located you next home. In today’s market that simply is not necessary with the larger inventory. This buyer's market makes it possible for most buyers to find their home and negotiate for the terms they feel is adequate.

Interest Rates

   The current interest rates continue to hold in the lower areas for the borrower. They have not risen significantly, and though they probably will not go down much more then they already are, when the market does pick up, we could see a rise which would also cost you money every month. You would be amazed at what a difference just 1% can make on your mortgage payment each month. Even though the lenders have made it a little tougher for buyers to obtain a loan this is actually good, in that it helps you know exactly how much you can afford without over budgeting yourself. Lenders are not in the real estate business and don't want to get stuck with a bunch of houses again, so they are going be more careful as to who gets the loans.  But they are still lending money to those who have good credit.

Timing is everything, and if you are considering buying in the Seattle  real estate market, this truly is a great time to do it. Give us a call today to see how much you can afford and to look at homes in your price range.