Is the Media Dictating Your Life?

Are you waiting for the news media to tell you it's fine to move on with your life? Do you realize that this is the only time in real estate history that inventory is exceptionally high, prices have dropped up to 15% off peak and mortgage rates are also at historic lows? Frankly the stars have aligned and the time to buy is right - if you're buying for the right reasons..

There's an indication that home prices that have not been set at a reasonable level may drop through 2008 for another 3-5%. Or, they can just sit, unsold. If the situation on a home that you truly love is that it is indeed overpriced, any savvy REALTOR can structure an offer that will reflect that difference, based on recent comparable homes that have sold at current market value. That means finding a REALTOR who's familiar with the local market, has actually seen the homes that have sold, and isn't afraid to negotiate.

My personal belief is that the days of "flipping" a home are gone for now. This is an exceptionally risky time to purchase to "flip" a property. First of all, buyers are the most savvy than they've been ever. They will discover the original purchase price and dissect to death the amount of money that was put into the property, only to discern that your list price is too high...sometimes whether that is the case or not. Only if you've ever been pecked at for hours on end by a gaggle of geese, can you know the feeling.

So, buying a home is not the answer to a "get rich quick" scheme. Real estate is also not a purchase to consider if you haven't built up a hefty down payment or a strong credit score. The essence of owning a home is "security"... and you can't be secure if you haven't laid the groundwork yourself in terms of credit rating and finances. Real estate is a long term investment. If you're planning on purchasing a home, do it wisely. Purchase for the long run...and I mean for at least 7 - 10 years.

The media continues to regale us with stories of foreclosures. However, are you aware that RealtyTrac, the "nations number one source for foreclosures" (dubbed so themselves) counts single homes as a "foreclosure" several times over? They count a home as a foreclosure when it's lis pendens, a Notice of Default and various other overlapping stages of distress. In reality, New Jersey saw just over 400 foreclosures in 2007. With 21 counties, that averages out to about 19 foreclosures per county. Not really record breaking news, right?

Realize this. By the time the media tells you "it's ok to buy a home," the opportunity will have diminished. Interest rates will have risen beyond current historic low points, the most desirable homes will have been sold for very reasonable prices, and more buyers will have entered the market. This is not a "fear of loss" tactic. This is reality, which has been documented by The Otteau Group, New Jersey's foremost most respected real estate appraisal group. For free market reports, sign up at The Otteau Group.

Copyright laws forbid me to share graphs, charts and precise data on the internet. But it's there and available. Speak to a REALTOR who keeps informed of the trends. Get truly informed, not incensed by sensationalism. There's a difference. Remember, basic facts don't sell news, "tragedy" does.

© 2008, All Rights Reserved. "Antoinette" Scognamiglio, REALTOR® Associate, Prudential New Jersey Properties.

"Antoinette" Scognamiglio specializes in the northern New Jersey markets of Northern Bergen County, Morris and Sussex Counties, in addition to several townships in Passaic County. Certified by Prudential New Jersey Properties as a relocation specialist, I take exceptional care in assisting my clients in finding their new home and community.

Please visit http://www.antoinetteshomes.com/ to learn more about my philosophy in conducting real estate business, and also to access the resources I offer to the public at large. My credo is..."The title of REALTOR® should be held with great care or not held at all." Put your real estate transaction in careful hands. Contact me directly on my cell at 201-240-8699 or my Denville office at 973-625-1250, ext. 105.