Lake of the Ozarks Real Estate Blog

Prices are at Incredible Lows:  Real Estate Prices are at all time lows.  In the past 6 months I have done several deals that made me jealous of what the buyer was getting.  Seriously people are buying homes today that just a few years ago would have been 25 - 50% higher is price.  Even if you are a seller and you have to take less for your home to sell you will likely be able to take advantage of the reduced prices when you purchase your next home.

Interest Rates are Incredibly Low:  Just today I had a mortgage Broker come by my office and drop off a rate sheet showing 30 year loans for less than 5%; that is Amazing!  My Father, John Farrell, before he opened the Real Estate Office was Vice President for a local bank and he has said on numerous occasions that he remembers 18% interest rates.  Just think about that; a $100,000 loan today would have a payment of $542 per month with a 5% interest rate and financed over 30 years; In the early 80s that same loan at 18% would have cost you $1,511 per month, that is a difference of $969.

Tax Credit:  Buyers still have time to take advantage of the Home Buying Tax Credit.  First time buyers have until April 30th to locate a home and negotiate a contract to be eligible for the 10% or $8,000 tax credit.  Sellers who have owned their primary residence for a minimum of 5 years and manage to sell their house are eligible for a tax credit up to $6,500.  Remember these contracts must be negotiated and accepted no later than April 30th and closed no later than June 30th.

All Time High Supplies:  When you consider the foreclosure listings, auctions and other sellers there has never been more inventory for buyers to choose from.  This truly is a Buyers Market and if one seller is not willing to negotiate with you all you have to do is walk down the street and make an offer to the next seller.

Stop Waiting For The Bottom:  I tell everyone I know that if you wait to know for sure that the market has hit rock bottom and has no where to go but up then you will likely miss out on the best deals.  Look, no one can guarantee you when prices will hit rock bottom and start to go back up.  If that could be predicted, no one would buy until that happened and nothing would sell.  I truly believe that anyone waiting to hear that the market has bottomed out will likely miss out on the best deals.

Remember buyers and sellers are both taking risks.  Individuals who are selling today are taking a risk on the possibility that the market may begin to turn around in 6 months and prices could start to improve.  Buyers are taking the risk on the possibility that the market could get worse and the home they purchase today could continue to drop in value.  My suggestion to buyers is that if you want or need to buy stop worrying about getting the absolute best purchase you can and just look for the best house you can at the right price.  If you are planning to be there for a long period of time what does another $5,000 really mean.