Four reasons to sell NOW. (And a few on why not to sell, too.) You decide.

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Even though the country is sitting still waiting for the recession to recede, homeowners and prospective homeowners are practically pacing back and forth during this nail-biting period when no one’s sure of anything.  You might think that there is absolutely no good reason to sell right now – but then, again, you may think it’s a perfectly good time.  No matter which side of the coin you’re on, there are valid arguments on both.  Here, we’ve assembled a list of tips on both ends of the spectrum and hope it’ll help you come to some sort of consensus on your real estate marketplace.

Yes, there has been activity in the real estate marketplace in general.  Don’t be surprised to hear that a good number of homeowners are opting to buy new properties, others are selling theirs and of course, others still are waiting it out, even if it means their property is currently suffering a loss.  Even though some of the sales are taking a bit longer than average, the sales are definitely there.

Now, if you’re like most people, you are just plain not sure what to do next.  So as you hang out with your friends and the conversation turns to real estate, you don’t know what to answer to the question that comes up, “Why would anyone sell at a time like this?”  Well.  We’ve got a few reasons to share with you.

1. Buyers have been shuffling money from their savings only to fund their properties – and they just don’t want to tap into their secondary resources like their retirement fund anymore.  Add negative cash flow to inflated expenses versus rental income – and you have a recipe that calls for SELLING.

2. People with no mortgage and some equity want to get that cash out of the property FAST and put it somewhere safer.  So the equation here is lower risk=lower return; they don’t want to take any chances and they’d rather sell to be on the safe side.

3. Homeowners feel they might as well cut their losses while they’re still ahead, instead of waiting 5-7-even 10 years for the market to turn around.  They are simply of tired of paying the negative cash flow month after month after month.

4. With interest rates as low as they are, buyers have a TOTAL advantage in this market, so naturally if you want to sell – DO it. There’s a good chance it’d be a successful sale.

Of course, there are many people sitting tight with their pocketbooks clamped shut and their doors locked, just waiting for the right time.  Here are a few things to know on why some people are NOT going to be selling anytime soon.

1. Some homeowners are banking on the fact that the market will make a speedy recovery, their equity will return and all will return back to normal soon enough.  Who knows?  It could happen.

2. Owners of multiple properties are getting great use of their vacation or second home – and figure that the enjoyment gained from the use of these places, far outweigh the negative cost to run those properties.  So even though they are experiencing losses every month, the price is worth the enjoyment.

3. Properties that generate a decent amount of rental income only need a little extra to top off the negative expenses and owners are willing to take the chance and wait the time out till the market gets better. 

The bottom line is, you have to decide what your situation is, what your priorities are and as you head toward a real estate goal, where you want to end up.  There’s a misconception that the real estate market is practically stalled right now.  This is so far from the truth.  Actually, the trend for the past several months and even leading into the holidays, is that buyers are doing up contracts as we speak.  Contrary to popular belief, foreclosures are currently on the decline and not on the rise like most believe to be the truth.  In fact, short sales are on the rise.  When you factor in that aggressively priced properties are selling super fast and sellers are getting multiple offers on them, you can see that there definitely is activity in the real estate arena these days.

Obviously, the choice is yours and we hope we’ve effectively shared with you that you DO have choices in this market – and we’re here to help make sure you make the right ones for you.

"Invest in Homes Today"- Warren Buffet

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The news spread like wildfire.  No, it’s not another politician’s sex scandal or the latest (definitely not greatest) gas prices.  It is the monumental statement made by Warren Buffett that he would buy up “a couple hundred thousand” single-family homes.  The catch is that he would do that if it were something he could practically manage. He may not be able to practically manage it but individuals certainly can.

Think about that.  For months, if not more than that, countless Realtors have been urging their clients and potential clients that now is the perfect time to buy.  Now that it comes from one of the biggest investors of our time, it brings new light to the subject for many investors and has generated widespread industry buzz from the moment the billionaire uttered those words.

In an interview where he discussed several topics, soon into the discussion with Becky Quick of CNBC’s Squawk Box, he said that in addition to equities, single-family homes are probably the most attractive investment there is out there right now.  With the low rates that seem to be heading further down still, he suggests buying at these low interest rates and then for homeowners to refinance if and when the rates dip even more. 

He cited that the only reason he has not purchased as many homes as he would have liked is because of the practicality of managing the transactions and properties.  Apartment units might have been more manageable and in his words, he said he would “load up on them” had that been the case. But for the everyday investor it makes perfect sense to seize this opportunity and Warren Buffett highlights this repeatedly in his most recent discussion on CNBC.

Mr. Buffett shared his perspective on the idea of buying homes at distressed prices, fixing them up and renting them out as an ideal way to get a solid return on investment.  Referring to the changing trends and attitudes within the housing market, he also said this is the perfect way to “short the dollar” because with a 30-year fixed rate mortgage it can go two ways; either the interest rate is too high down the line after which you can go and refinance or if it’s too low the other guy’s stuck with it for 30 years.  Could this be the return of the house-flipping craze that we saw boom in the mid 2000s?

Mr. Buffett’s statement brings new light to something that so many agents and mortgage consultants have been saying all along.  Buy now.  At a time when stocks are just now rebounding after four years of inching their way back up, he says that consumers should acquire 30-year fixed rate mortgages and then refinance when rates go down further. 

If homeowners can hold on to their property for a long time after purchasing it at the lowest rates the industry has to offer they are sitting on the best investment possible of our time.  Of course equities are still very strong but they have come up quite a bit and Warren Buffett says owning a home is a “leveraged way of owning a very cheap asset”, making it quite possibly the most attractive investment that you can make.

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We are so excited to be here to talk to you today and we just wanted to say that we are humbled, appreciative, and so grateful for our relationship.  It has been almost 20 years that we have been in this business and that we have had an opportunity to help people in the community with any real estate needs that they may have had and we wanted to let you know that we continue to be here for you.

While I have you, one question that we seem to be getting asked a lot, especially lately, is “How’s the market?”  Well, I can tell you that it has been very busy, especially with this beautiful weather that we’ve been graced with.  The buyers are out there looking for the perfect home and they seem to be attracted to homes that have great curb appeal. So, in order to help increase the value of your home, why don’t you get out and start your spring cleaning?  It is a great way to get some exercise and enjoy some fresh air and the beautiful weather we’ve been having.

We are here to help you and if you have any questions, please fill free to give us a call or e-mail us.  Our information is right below on the screen.  We would just like to thank you again and have a great day! Take care!