It’s a hard statement to swallow for all the Americans currently paying more on their mortgage than their home is worth. But longterm it makes sense. At the worst, real estate home prices will remain stagnant for five years. That makes some panic. However, buyers looking for security, a place to raise their family, a place to call their own should be looking at staying in a home longer than 5 years. On the other side of the coin we have sellers. Sure, there may not be as much ‘easy money’ in doing weekly ‘flips’ (remember all those TV shows that emerged from the idea? How many of those do you see on TV now days?). But this only means the serious Realtors will stick around. Which translates into better service for real buyers. It’ll take a lot of work on behalf of the Real Estate Agents but the market is there.
Don’t be afraid, try them out. Be sure to comment if you have any more app recommendations.
Tallahassee Home Owners we've mentioned the Federal Tax Credit before. Rumors are it will not be extended. However, that could change at anytime. It's best to act now before it's too late.
Delaying a home purchase waiting for home values to decline could price you out of the market.
Say you are waiting for Tallahassee home values to decline 10%...
If that were to happen, and interest rates rose 1% to the 6% level, then you may not no longer be able to afford the same Tallahassee property. Interest rates are at all-time lows and have likely probability to increase. Not to mention the first time buyers tax credit.
Buying the same home | Waiting for price Decline | % change | Borrowing the same amount | Buying a better home
|
Borrow |
$100,000 |
$90,000 |
-10.0% |
$100,000 |
$100,000 |
|
Interest Rate |
5% |
6% |
20.0% |
7% |
8% |
|
Monthly Payment (30 year fixed rate loan) |
$536.82 |
$539.60 |
0.5% |
$665.30 |
$733.76 |
Here's an excerpt (with link to entire letter) from an open letter by Lloyd Frink, President of Zillow:
For Tech-Savvy Consumers, Real Estate Agents are Still the Experts
Despite the number of websites that now offer consumers never-ending information, traditionally only available through agents, most consumers still-and should-prefer to bring in a professional if they're serious about transacting.
Back? Me again. The main takeaway for me was that an informed consumer is easier to help. For those scared that they'll no longer need your service, remember: you're a trained and qualified professional who has been working in the sector for years. It would take just as long for a buyer or seller to gain as much know-how as you.
What this translates into is that you'll spend less time teaching a client and immediantly start working towards end goals. This allows you to take on more clients and make more money.
Sites like Zillow are here to stay. Let's use them to our advantage.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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