WHY SELLERS SHOULD "SELL" AND BUYERS SHOULD "BUY" RIGHT NOW!
Lately many buyers are asking themselves is this the right time to buy? It seems a major contributor to this uncertainty and question is because buyers are wondering if they would be better off taking the gamble that home prices will continue to fall. Is this gamble a smart one? Should you wait and take that risk? The answer to both of these questions is "no"! While yes, it's true that home prices are likely to continue to fall some, the more important factor that needs to be considered, and is also likely to occur, is that home mortgage rates will continue to climb. This is in large part due to the fight of growing inflation, increased foreclosures and the sub-prime mortgage mess. While the average mortgage rate for a conventional 30-year fixed rate is still relatively low compared to historic rates, aggressive buyers who wait around for rates to go lower have little time to react once rates start to climb.
But what about the seller? Should they wait to see if a buyer is willing to pay what they're asking or even close to the asking price? Well, to answer that question, we have to consider several factors. 1- What is the motivation of the seller? Are they looking to purchase another home or even better yet, are they already in contract to purchase their next house? In a majority of cases, this seems to ring true for a large portion of sellers. If this is the case, it is far better for a seller to consider lowering the price of their house "now", or have a realistic price set in their minds that will attract buyers, than to wait for that "one " buyer who is willing to pay top dollar...it's not going to happen, not in this market!
