One That Would Have The Fruit, Must First Climb The Tree...Thomas Fuller

Here are a few compelling reasons why buyers should, excuse the phrase, get off the pot.

1) Interest Rates are below 6%. Wow. Waiting for that additional $10-15,000 drop in price will mean squat if interest rates go back up. Judging from the concerns on Capital Hill with Fannie Mae and Freddie Mac, which by the way are the primary reason there is money out there to loan to consumers, interest rates could very likely go back up to keep investors happy and the government can avoid using a safety net.

2) If housing costs are going up, guess what, so is rent. Opting to rent does not save consumers from the burden of expenses. Landlords just pass it on down. In the end, renters pay more with nothing to show for it except receipts.

3) The Evils of Subprime Markets. The reality check here is that the first and foremost reason there is so much trouble in the mortgage industry is that consumers were taking on more than they could handle. Speciality products are not bad. It is very reasonable to use an Interest Only option or ARM to get in the door as long as you look at the worst case scenario and here is the key, apply discipline.

Most stories that I have read concerning those facing the perils of readjustments usually have several factors involved. A) Low income or No income at all B) Never took proactive measures to clean up their credit and refinance at a better rate C) Used their homes like a piggy back to purchase expensive cars and fund vacations or D)Barely could afford the home even at the lowest rate. Just because you can qualify for a $450K mortgage does mean you should. Sit down and examine your cash flow and see what is reasonable. Champagne taste on a beer budget always spells disaster. Be mindful of housing prices in your area and buy what is in alignment with your budget, not your fantasies.

4) Foreclosure is a small segment of our market. Places that have been devasted will include massive job loss such as Michigan for example. Cases of too many eggs in one basket. Other places hit hard involved people leveraging themselves to get rich quick in real estate. That doesn't even belong in the same sentence! The remainder mostly applies to those casualities of the sub-prime market meltdown. I won't even call them victims for many had opportunities to strengthen their position in their home once in the door and they failed to take it, or abused the privledge of home ownership to begin with. I am not trying to be harsh, but the media has played way too long and too hard on stories that quite frankly, were examples of what I just mentioned.

Now is such the ideal time to be taking advantage of rates and low price tags. Buyers markets are short lived in theory. I know several whom have turned away from opportunity because of the fear of commitment. One saying that always sticks with me is this, Tough times can come against you often, but opportunity doesn't. Don't count yourself as the many who will look back one day and said "If I only knew then what I know now".