Real Esate Blog

If you are listening to the news at all you are aware that foreclosures are at  an all time high. Georgia ranks 9th in number of foreclosures and most disturbing, is new foreclosures are coming faster than sales of existing foreclosures. So our market is getting even more overloaded with foreclosures for sale.What does all this mean to you?

If you are a SELLER it is very bad news. It means you have a lot more competetion at very low prices. Unless you absolutely have to sell because of a change in job or relocation, I would not suggest you even try to sell right now. Put off the move as long as possible and hope the market turns around. Other than rare circumstances this is not the time to think of "moving up" in a home. While it would be a great time to buy a home, getting your home sold at a reasonable price will be extreamly difficult. If you MUST sell now, be prepared for your home to be on the market longer and bring a lower price. Preparing the home to sell is more important than ever. The home must look better than any other in your area and price range. Be sure you choose an agent that can assist you with the preparation of the home and will give you the straight facts, not neccessarily what you may want to hear.

For BUYERS this could be the best time to buy. Interest rates are low, choices are greater and the prices are lower than I have ever seen in all my years in real estate. Does this mean you can make big money by buying now? Maybe not, because we never know where the bottom is. Home prices may very well go down even more. But, with the great selection of foreclosures on the market and discounts of 20-30% it is hard to imagine the market sliding that much more. So, if you can get the right deal on a foreclosure or a seller willing to let go "cheap", I would definitely say "go for it". The trick is you will need to be in the home for several years to see the best return on your money. It is NOT the time to consider "flippin". But with the low prices, low interest rates and tax advantages it is definitely a good time to buy a home to live in. 

For INVESTORS this is a mixed bag. Sure, prices are low and discounts are great, interest rates are low and it is tempting to jump in. But, if you are a flipper, selling on the other side can be very difficult and much less rewarding. On the other hand if you are looking for investment properties for the future and for rentals, this could be the perfect time. With the credit crunch, rental property will be even more in demand, since borderline buyers cannot get financing to buy a home as easily as in the last few years. The rental market should turn around greatly in the next months to years. Long term real estate investments could be a real winner.

Of course all this is just my opinion and I have been wrong before, lol, but that is how I see things right now. Take it for what it is worth. Phil