June 2009 Volume 19 No. 6
Home buying today - focus on value
With home prices down and the number of properties for sales high in many parts of the country there have been a lot of articles and blog posts about now being a great time to buy. While the consensus is that it is indeed a great time to buy a home, it is important to maximize value when making the purchase.
While many articles focus on price, pointing to an example home used to be priced at $200,000 and now can be purchased for $180,000, they are missing the point of finding value. While saving $20,000 on the purchase is great, consider whether that $20,000 could be used more effectively another way. Would spending that money allow the purchase of a similar home in a "better" neighborhood, a larger home, or a home with better amenities like a 2+ car garage, walk in closets, or central air conditioning?
Remember that buying a home in a down market should be about getting the best value for your money, not necessarily the lowest price. After all, home prices will go up again, and the homes that will appreciate the quickest, and have the highest values are the ones that are in the most desirable neighborhoods, with the most sought-after features. Purchasing a home in this buyers market provides an opportunity not only to enjoy a new home today, but to reap the rewards of appreciating values in the years to come.