We own 4 properties now. We just sold one in January. We listed in November and sold in 75 days. We spruced it up, had it staged and got 98.7% of list price. Property does sell when it's priced right and staged. I kinda felt like I had to prove it to myself. But I did it and yeah it cost some money to do it, but it was worth not paying a mortgage on a vacant house for 6 or 9 months. Spend just a little money up front and get it sold and the money will be saved from not making unncessary mortgage payments! We are selling off some of our properties to get a little cash to make another purchase. Our dream house...the house we'll be in for the next 20 years. The house I will hopefully raise children in. It's such an amazing time to buy. Our dream neighborhood(s)' prices have come down so much that I can hardly stand it.
I was able to help one of my tenants get their dream starter home ($125K) and they close in 2 weeks. Even better than them getting their dream house is that it appraised for $7,000 more than what they paid for it! That's 6% equity upfront. In our market, 6-7% equity is great because that's about what it would cost to sell so they could break even right now if they had to put it back on the market. They put 3% down so they are well on their way to building great equity. I'm so excited for them!! This is why I love my job. We're going to put that rental house on the market too with plans for a quick sale! With that money along with other monies we've saved, we'll be able to move forward on the next house and get a fabulous deal because of how low the prices are.
I can understand that buyers are on the sidelines looking for the right deal. But I think the waiting might be more attributed to the fear of risk.
You see, when you buy, you get to choose where you want to live, what you want to live in and how much you will anty up for it. Now, I don't think I'll go get $50K more off the price of these homes, maybe $10K, but the fact is that they are listed or at least some of them are listed well below what they would have been listed for 3 years ago. The market will bounce back and in Charleston, it's going to be sooner than most think. By the time it bounces back, prices will be on the rise and it'll be too late for buyers looking for a "bargain."
Plus as you pay down the mortgage, you are building equity! While you are paying it down, you get a HUGE subsidy from the government in the form of tax relief. Now, I'm still a fan of getting rid of that mortgage so you aren't paying interest to a bank, but at least in the mean time, you do have some benefit unlike paying rent.
As a renter, you don't get any of these things. Don't get me wrong, there is a time to rent. And I love my tenants! I have built some great equity in my rentals while others have made the mortgage payments. However, the American Dream is to own your white picket fence around your 3 Bedroom house, not your landlord's house. When the time is right, it's time to move forward. If you are waiting to buy, you are missing out on the rewards! Call the Charleston Relocation Expert for a FREE consultation to see if you are ready to start the American Dream.