Move Up Buyers

How many times have you said to your spouse, “We should have done that years ago! But now it is too late.” or “If I knew then what I know now, I would have…”

Well, does it occur to anyone that this correction in values is a huge opportunity for a DO OVER? Now is the single best time to move up to your dream home at 2003 prices or better! What are we waiting for!?

House values in many areas have regressed to levels not seen in five years. And mortgage rates are still very low when you take a long term perspective. Every type of investment has its cycles and we are clearly in a down part of the real estate cycle. But no one disputes the fact that home values will recover in the long run and continue to appreciate. So it stands to reason, isn’t this the most amazing opportunity to move up ever?!

With the basic concept of buy low and sell high, now is the time to buy low. Really low! The homes you used to drive by and dream about ARE NOW IN YOUR PRICE RANGE.

Of course, many will ask, “What about the sell high part? If I own a home right now, what do I do with that?”

I have 2 answers for this. First, you don’t make money when you sell real estate. You make money buying it at the right price. If you have to sell at a discount in order to move on with your life, but you are also buying at a discount, you should more than make up any losses by making a good buy.

Second, with as many as 1 in 25 homes in foreclosure in some areas of the country, all those folks are going to have to rent for a few years before buying their next home. Rents are going up, the renters are out there and more are coming. If you can’t sell or don’t want to sell in a down market, then get a good renter and hang on to it! There are numerous resources for locating, screening, placing and managing tenants. I have been a landlord for the last 4 years. It is a very part time job and it leads to some very nice tax deductions as well!

In down times like these, the smart ones will use the gray matter between their ears to get creative, take action and reposition themselves for the next part of the cycle. So do some soul searching. Ask yourself where you want to be five or ten years from now. Where do you want you and your family to be living while you get there?

This is the perfect time to move into the right neighborhood or better school district. Maybe you are worried about gas prices and want to move closer to work, friends or relatives. Maybe you are planning to have more kids or start a home based business and need more space. The reasons are numerous and the opportunities abound!

Ronny Loew is the Move-up Specialist with MN Home Loan Partners. He can also be heard on The Minnesota Real Estate Show, on 100.3 KTLK, FM. He can be reached at 952-808-2815 or rloew@houseloan.com