Getting ready for Christmas,

Although Christmas is still two weeks away, planning for the whole family to come home for Christmas began the Saturday after Thanksgiving. Of course that meant I was going to have to organize, sort, reorganize and file the numerous stacks of paperwork I had sitting on nearly every table, corner and countertop around our home. Obviously I had promised I would get it done before everyone arrived, but it's still stressful. At this point I would say I am about 40% into the job and it's starting to look pretty nice. I'm getting lots accomplished. I suppose it's not as stressful as I had once thought.

Also, I’m still working as hard as ever with my real estate listings and sales. With everything going on in the economy, I know it’s still difficult for buyers and sellers to think forward but it’s really an excellent time to buy that smaller or larger home. In our area, prices are below 2006/2007 prices and interest rates are at the lowest point in nearly two years. In my book that amounts to a win-win for everyone.

But, some sellers are thinking, “I don’t want to give my home away.” Although I really don’t know exactly what that means, I think it means ‘I won’t sell my home for less than what I feel it’s worth.’ Except the workings of the market tells us the value of a home. It’s not some conjured dollar amount a seller really feels strongly about. That’s why, in our market area, those home which are actually being sold are homes which have been reduced to the point where the market meets the expectations and capabilities of the available buyers. Now it’s true that some homes sell for more than what most of us believe is market value. Yet, in those rare cases, there is something unique or cute about that property where its market appeal just simply exceeds the overall market. All of the rest have to be competitively priced according to location, size and features in order to find that special qualified buyer.

Of course, qualified means one having an acceptable credit score. Except now isn’t the right time to get me started on the virtues of credit scoring. I’ll speak more on that topic another time.

Now, getting back to why now is a great time to buy, let’s assume that two/three years ago a house sold for $300,000 and it’s now available for $225,000. Let’s also assume it is your home which you won’t give away. But in this hypothetical situation you sell it and purchase a home which sold for $700,000 two/three years ago for $525,000. Let’s figure this out. On the sale of your home you lost $75,000. But on the home you purchased, you saved $125,000. Isn’t that a savings of $50,000? Both scenarios assume the very same 25% loss of value.

As for the financing, if it was 6% or more two/three years ago and it’s now just over 5%, on a $500,000 note that’s an additional savings of $416.67 per month. (6% minus 5% = 1% times $500,000 equals $5,000 divided by 12 months in the year is = to $416.67 per month)

It’s not just a good time to buy, it’s an excellent time. So get off the couch and give me a call at (253) 370-5626 and I’d be happy to work and compare the specific numbers to your situation.

As to my continued Christmas preparation, I was only interrupted once in preparing this blog. My wife wanted me to help bring in the groceries and she wanted me to go with her to pick up a new mattress and box spring. Lucky for me she let me come back and finish. I do love Christmas, especially with everyone coming home. I am not a shopper though. But my wife loves it. In exchange I rub her feet. We make a good pair.

Until next time, Merry Christmas and happy house hunting to all.