Q. Is the local real estate market getting stronger or weaker?
Stronger in terms of activity but weaker in terms of average price in many communities; Danville’s home prices have decreased 5.9% in the last year. However, some neighborhoods have actually increased in value. It’s really a market of contradictions. Consult an expert.
Q. Tom, would you buy a home in today’s market?
Unequivocally YES—if I was planning on living in it for a minimum of five years. The combination of significantly lower prices and incredibly low interest rates, plus substantially increasing rents equals a great buying opportunity. Think about it—just about everything costs more these days; groceries, gas, medical care, college tuition, home/apartment rents. Homes and interest rates are actually “on-sale.”
Q. Are mortgage interest rates really all that attractive?
Emphatically YES! Fixed rate 30-year money is at or under 4.5%. Fixed rate 15-year money is at about 3.75%. It is harder to become “loan-approved,” but well worth it.
Q. Tom, cut through all the fluff. What really makes a home sell in today’s market?
The right combination of four components will determine if a home sells: condition, location, price and marketing exposure. If any one of those is below par, chances are the home will not attract offers. Price remains critically important. There you go—no fluff!
Q. Why should I hire an experienced Realtor? There is so much information available to me now on the internet, I wonder if I can save some big money doing it myself.
Think of it this way; it’s not what you know, it’s what you don’t know that may cause big problems in any purchase or sale transaction. The most experienced Realtors share real estate contract wisdom, negotiating savvy and proactive problem solving skills from hundreds of successfully closed transactions all to your benefit. Hard to put a price tag on that.
Q. Is owning a home still the ‘American dream’?
I firmly believe that home ownership definitely remains part of the American dream and a solid component of both financial stability and long-term wealth building. Here’s both my personal and professional recommendation in a nut shell: get the best advice, buy smart regarding community and lot location, finance wisely, methodically pay down the mortgage, take advantage of the tax advantages, maintain and improve your property over time and remember that real estate is meant to be a long-term investment. And enjoy your home—that’s the best part!
To My Readers: Starting in October I’ll take a sabbatical from writing this monthly real estate column; I have enjoyed every minute of keeping you informed on local real estate matters and trust you have found the information valuable. Special thanks to Eric Johnson and his wonderful ALIVE Magazine staff for the opportunity to contribute to a fine publication that will certainly continue to count me as an eager reader and raving fan!
See you out in the real estate marketplace – Tom Hart
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