Spring is on the horizon and it usually means that home buying season is about to start. However, most of us a expecting something different this year. While many home owners want to sell, most are taking a wait and see approach. With the Presidential election, possible recession, rising gas prices and such it seems that selling or buying a house might be the furthest thing from most peoples minds.
As American's we tend to gravitate towards bad news and the housing market has been a major source of bad news for a least a year now. Youv'e heard it mortgage crisis, foreclosures, declining prices but what does that mean for home owners in Johnson county Kansas?
For many Johnson County home owners it will mean a missed opportunity. I know some of you are thinking, a missed opportunity? I mean exactly that. Every real estate market provides oppotunity to someone. Since real estate is always moving in a direction there is always something to gain or lose. Some people profit on others misery while other profit from hard work. Let me give you 2 scenarios:
Scenario 1: John & Mary bought there first home in 1998 for $150,000, it was a cozy ranch in a nice neighborhood. Since then they have had 2 children and now the house is a little small for their needs. The great news it that their house is now worth $225,000. A nice $75,000 increase. Last year thety may have been able to sell that home for $230,000, so it is worth $5000 less than it's peak value. Now let's take a look at the home they want to buy. A 4 bedroom 2 story with 3 car garage. That home was selling for $400,000 last year but the builder has to many homes in inventory, so he slashes the price to $375,000 not only that he is offering a free basement finish worth $15,000 . So my house is worth $5000 less but the replacement home is $40,000 cheaper including the basement incentive.
Scenario 2: Bill & Wendy just got married and they are thinking about buying their first home. They had looked at some home last year but could't afford a house that met their needs. They want to live closer to the city, so they have been looking near Mission. That when we find a ranch that sold just 2 years ago for $120,000 now being listed by a bank for $100,000 Bill & Wendy's limit. Not only do they find a house that they couldn't afford last but they get a lower payment because of lower interest rates and the new changes made to FHA mortgages allows them to use grant money to help with down payment & closing costs.
So the question I want to ask is what are you waiting for? Buyers have been complaining about rising prices for years, now that they are on the decline you still don't want to buy. I am sorry but you can only stand in a puddle for so long until you get webbed feet.
So what is the cost of waiting? Everything, waiting will let this market pass you by. Waiting will let everyone else get the deals while you wait for the prces to go back up. Waiting is the difference between be a home owner and wanting to be a home owner. Don't believe me, let talk in 3 years and see.
If you don't want to be passed by attend my next buyers seminar. We will show you why now is the right time.
Copyright 2008 The Russell Home Team 913-681-1383 www.mikeRussellHomes.com
Mike Russell is a REALTOR with Keller Williams Realty. Mike specializes in Johnson County Kansas Homes and Real Estate for sale. Mike is a tech savvy realtor with over 17 years experience. Did you enjoy Mike's Blog? Feel free to subscribe or join Mike on his Social Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...
Mike Russell & Associates can be reached at 913-266-5828 or MRussell@KW.com or www.SearchjocoHomes.com