Tallahassee Real Estate Blog

I want to devote this Tallahassee real estate blog today to this fear: Buying a home in a confusing and uncertain real estate market.  I just saw an email expressing this today, and a CNN.Money article too.

First, it's very smart to be cautious in a market like this.  There's more uncertainty and volitility in the general economy than there has been in a long time.  But, the best financial rewards go to those willing to take measured and managed risks.  The wise homebuyer separates rational concerns from paralyzing fear.  Points to ponder:

1.  Most expert housing economists say we are near the bottom of the market.  While prices may fall in some areas another 5-10% in 2011, some areas of the country will see stabilization and slight increases.  Know your local market, and tap into professionals who do. AND know the value of the home you're interested in - some properties are already priced below market and may be at the lowest point they'll ever be. 

2.  Mortgage rates are probably at rock bottom, and will likely rise modestly over the next few years.  While you may save on purchase price by waiting another year, you may give up any savings by paying a higher mortgage rate.  Every half-point of interest means $100 extra every month on an average Tallahassee home.

3.  If you are stretched financially, think twice about purchasing, even if you can somehow qualify.  But, if you are secure in your employment, have reserve cash in savings, and plan on living in a home at least 5 years, you may be secure enough to make a wise purchase.

4.  If you need to sell a home first, IT IS ABSOLUTELY DO-ABLE!  It's a myth that there are no buyers for homes.  The reality is there is a sizable pool of buyers, but a home has to be listed at the right price.  If you need to sell first, get a professional home valuation, and see if the numbers work for you.

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