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Your Top Real Estate Questions Answered: Question 3

Blog by Sara Kalke | May 15th, 2011

Question 3: Is now a good time to buy?  Or sell? 

Here's the deal with real estate.  I've said it before and will say it again.  Real estate is a really bad way to get rich quick.  That's because there is no good way to get rich quick.  Unless you win the lottery or strike oil in your backyard, you'll probably have to go about acquiring wealth like the rest of us: slow and steady, saving and risking what you save.  Real estate is a good LONG TERM investment.  With inflation set to perk up, real estate is looking better and better as a LONG TERM investment.  There are many many other blog articles to come on this topic, but here is my answer to your question, is now a good time to buy or sell?  Prepare for it, it's really exciting... MAYBE! 

It is a great time to buy if you have your "ducks in a row", i.e. pre-approval from a lender, an income stable enough to take on a mortgage, some wiggle room in your budget to pay for home expenses (because the buck stops with you if your house needs repairs!), and in this market, perhaps most importantly, wiggle room to account for the impending rise of interest rates when you go about re-financing once your mortgage term is up. 

If you're thinking of selling, there are a few good times to sell: 1) your needs have changed - either location, size, style, etc.  just don't work anymore - if you can afford it (see above), there's no time like the present to help your family be more comfortable.  There are very few buy/sell scenarios where waiting does much more than further your discomfort.  Unless change makes you uncomfortable, which would explain why many people think waiting is such a good idea.  2) you're an investor and it's time to "cash in" and move to Mexico - well yes, then you might just need to sell off some of those investments now, won't you.

Stay tuned for the answer to the final question in this series, Question 4 (Should I rent or buy?)

If you have any questions, please call me anytime!  Everyone's situation is different and I'd love to help you with whatever your real estate needs are.

- Sara Kalke
(780) 710-7669
On Twitter @sarakalke
On Facebook at http://www.facebook.com/sarakalkerealtor