Buying or Selling Real Estate: Make Your Decisions Based on Your Core Beliefs

Before buying or selling anything you should first consult with your core beliefs. For instance if you were in the need of a new car and you felt that over the long run gas prices were going to trend downward and eventually stay low than gas consumption would not be an issue in your decision making process.

If you are in your 30's or 40's considering health insurance and the plan you are reviewing does not provide for prescription drug coverage, you have to ask yourself....."Self....am I more likely or less likely to need prescription drugs in my future?"

This kind of base thinking helps you to make long term decisions.

What brings this topic up in today's blog is that I just traded e-mails with a person who lives in the Northwest, lets call him Tom. His concern is that the real estate bubble is about to burst and prices and values of properties are about to drop. Needless to say, if you've been reading this blog, we do not agree on this point.

Even though we do not agree we are both right, for the moment, based on our core beliefs.

Tom believes that the real estate run up has run its course and that the type of appreciation we have seen can not be sustained for the simple reason that if it went on who could afford a house? The price would soon out strip the general publics ability to buy. So his decision, for now is to wait. Perhaps for interest rates to come down, perhaps for inventory to go up, or maybe for home values to fall. In any case based on his core beliefs of today's market he has made a decision and is on a plan.

I understand that some may think I'm jaded, that my sole goal is to go list and sell more houses. That my job is to sell the idea of home ownership. To a degree this is correct. I think homeownership is one of the greatest things we have going for us in this country. I know that people in other countries would love to have the same opportunities that we have in the United States. We have choices of where we work, where we live, if and when we want to buy a home, if and when we want to start a family and when we do go to buy a home we have choices in style, price and almost an endless array of mortgage programs that allow even the youngest of us to be able to afford our first home.

Yes, over the past 18 months or so many markets have seen a double digit run up in values. Some of these areas may even see a roll back in the coming year. I think what sets the Northwest apart, for now, is the short supply of houses to meet the current demand by buyers. Even if our home values only go up by 8 to 10% this year, you are still way ahead of the game than if you were to choose to pay rent.

So, my answer to buyers who are considering whether or not they should buy would be....................YES! If you are going to be staying in the area for at least 3 years......buy now.

Interview and choose a good real estate agent, have them recommend a good lender, meet with that lender, get a good faith estimate. Choose a home that meets your needs and buy it. Because my core belief says that home prices in our area will hold due to increased government intervention it is becoming harder and harder to build, we are having more and more people who need homes and this is a pretty great place to live and bring up a family.