Our favorite shows are only interrupted with “Breaking News” that would alarm or scare the viewers…”A gunman is loose”…”An apartment building is on fire”…”A child has been kidnapped”…

Yes, these are all important stories, but isn’t good news ever considered to be just as important?

My point is that right now, all of the media networks seem to be having a hey day reporting the bad, bad real estate market.  “Foreclosures are on the rise”…”Families are losing their homes”…”Mortgage companies are going under”…

True, true and true.

But what about the buyers out there that are being able to move up to a new standard of living, simply because today’s home values, combined with outstanding interest rates are allowing them to do so?

What about the people that never before would have considered keeping their existing home as a rental property, but that are now increasing their net worth and allowing someone else to make one of their house payments for them?

These aren’t the stories that seem to be making the headlines.

And of course, how can we forget the current incentives for first time homebuyers?  I wish someone would have given me an $8,000 credit when I bought my first home!  Do the newscasters ever break in to tell us another first time home buyer just got $8 grand direct deposited into their checking account?

I don’t think so!

What worries me the most about this is all of the people that cling to the nightly news to try and stay current with the local real estate market.

The local media is NOT current with the local real estate market.  They never are!

By the time the media is telling you the market is better, it will mean the market has been better for quite a while already.  Then people will frantically run out and try to buy something because the media has made them feel “safe” to do so, but by then it will be too late. 

The best deals will be gone because the savvy buyers were out grabbing them left and right while everyone else trembled on their couches…wondering if things would ever get better.

Remember what Warren Buffett said…”Be greedy when others are fearful and fearful when others are greedy!”

Like what you’re reading?  You might also enjoy:

http://ishopgreenwood.com/2008/10/17/be-greedy-when-others-are-fearful-and-fearful-when-others-are-greedy/

http://ishopgreenwood.com/2008/12/11/can-you-touch-bottom/

Sure, there’s a crisis going on and many are not going to be able to get a mortgage right now.  But for those of you that have been good with your money and have protected your credit, now is your time to take advantage of this crazy situation we’ve found ourselves in.

No matter what you’re looking at to buy right now, whether it be clothes, or a car or what have you, good deals are all around us.  But when we bring it specifically to the world of real estate, the deals that can be had right now are on a much grander scale.

If you’re a “Move Up Buyer” and looking to get into “that” neighborhood….now is the time to do it!  Go ahead, take a hit on the sale of your home, but take advantage of the hit that the seller of “that” home is having to take.

For example, if you’re taking a 10% hit on the sale of your home, how does that help you buy another one?  Well, a $100,000 home minus 10% is now going to sell for $90,000.  Ouch! That doesn’t feel good! 

But look, a 10% hit on a $200,000 home means you can now buy your next home for $180,000.  You lose $10,000 on the sale of your current home, but gain $20,000 on the purchase of your next home.  At the end of the day, that still puts you ahead by $10,000!

Or…maybe you don’t have any desire to move right now.  Fine.  Stay in your current home, but take advantage of this mortgage crisis and buy bargain homes and hold on to them as rental properties.  Because people are going to have a harder time getting approved for mortgages right now, it means that the rental market is going to be in even greater demand.

Bottom line – if you’ve been good with your money and have protected your credit along the way, now is the time to reward yourself…Go For It!

General Info:

Housing Type

click to enlarge

From what we can see, it looks like most of our residents are staying in their homes close to 4 years before moving onto the next one and that our Median Home Price in the 46142 zip code is $99,000.

A little over 40% of our residents stay in their homes for more than 5 years; the average home is about 22 years old and every year, approximately 19% of the homes in our 46142 zip code get sold to new owners.

Nothing earth shattering, but kind of neat stuff to know!

Yes, if you have been pre-approved for a loan program that allows the seller to pay your down payment for you, you absolutely have to close on the house BY THE END OF THIS MONTH – SEPTEMBER 30, 2008 or there’s a very good chance you’re not going to get the help you need!

This is very serious business.  Do you already have an accepted offer on a home?  If so, have you made sure that your contract specifically states that you are to close “on or before September 30, 2008″? 

Or even worse…have you been pre-approved for a down payment assistance program but have not even made an offer on a home yet?

If that’s the case, your window of opportunity may already be closed, but that is definitely a question for your specific lender. 

From what I’ve heard, you should have already had an accepted offer by the end of August for you to qualify for the program.  But again, please check with your lender for the specifics.  But the point is, if you were counting on the seller to pay your down payment for you…the clock is ticking!!!

Have a comment or question?  Click Here for the Financing Option that’s best for you? 

You can do the first two of those three, but forget about the turning around and selling it part.  Here’s why:

Because right now, there’s always going to be another home that someone can buy for less.  The people that are buying up houses right now are investors.  They’re looking for the best deals.

They don’t care that your home has this upgrade and that new fangled whatever.  They want cheap.  Remember, money is made in real estate when you Buy . . . not when you Sell.

So be one of those smart investors.  Start buying up properties and holding on to them until the market turns around.  Don’t sell them now.

Hold on to that HUD home you just snagged for $60,000.  Put some paint and carpet in it, rent it for more than your mortgage payment and hold onto it until you can sell it for $90,000 or $100,000 a few years down the road.  That’s how you make money in this market.

Now if you’re someone that just absolutely has to move right now . . . Maybe your family is growing and you need a bigger house or maybe your job has let you down and you can no longer afford the house you’re in and need something less expensive.

Either way, why not think about holding onto your current home and renting it?  Why sell right now if you don’t have to?  You already know it’s worth less now than it was a few years go.  And surely you know that what goes down must come up (or something like that).

Regardless, don’t let this market get you all down in the dumps.  Stop focusing on what your house woud sell for right now.  Start focusing on what you’re able to buy real estate for right now and take advantage of these garage sale prices.

Buy smart now and you’ll be sitting on a gold mine when the market recovers.