What to Do in a Dying Home Market
Doomsdayers and naysayers are having their field day. For years, they've been predicting a drop in home equity. And, thanks to a much-needed roping in of runaway inflation by the Federal Reserve, interest rates are not such a hot deal any longer. Many are taking the "sit, wait, and watch" approach, but you want to take action. Lucky for you, there are advantages to be drawn from this dying horse.
Advantage 1: Home Buyer's Upper-hand
If you're a prospective buyer, congratulations! You now have the upper-hand while negotiating with agents. What this means to you is that you can push for that down payment credit, cosmetic repairs, or -- in some cases -- a new car.
Agents and sellers are "motivated." Motivated in real estate lingo often means that you get a bunch of free stuff, just for buying a home. But, beware! Don't settle for an above-market home price just because of the free car.
Advantage 2: Home Equity Improvements
If you feel comfortable drawing on your home equity, then take out a home equity loan and make those much needed repairs. It will up the value of your home while you're waiting for the market to pick up.
Advantage 3: Risin' Rents
If you're considering buying as an investment, there's one advantage this market offers: Higher rents. Renting out your home can help put money towards your home mortgage while you're waiting for your available home equity and value to increase.
Source:http://www.nysun.com/article/38605
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages. For a home equity loan visit http://www.californiamortgagerate.com
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