5 Questions Every Savvy Home Buyer Should Be Asking Now

Are you thinking about buying a home with current prices dropping to a 3 year low? Here are 5 questions that you can ask yourself to see where you stand.

  1. Is our rent equal to a loan payment? If you can afford to buy, it can give you one bonus that renting cannot—the lucrative tax breaks that come with owning a home:
    * Deductions for payments of mortgage interest, loan discount points and real estate taxes.
    * Home-office deductions for qualified owners.
    * Deductions for expenses if you rent out your property.
    * Home-sale capital-gains exclusion—profits up to $500,000 tax-free!
  2. Are prices in our preferred area steady? In many areas of the country—even in areas with high foreclosure rates—there are neighborhoods where homes are holding their value or increasing in value while price decline is slowing.
  3. Will our equity go further where homes cost less? By moving to a place where homes are less expensive—and general living costs are lower—your money will go a lot further a lot longer.
  4. Will we live in this home for several years? Financial planners often advise buyers to think of real estate as you would any other large investment: The longer you hold your home before selling, the higher the probability you'll ride out any downturn and come out ahead on price when you decide to sell.
  5. Is this the perfect home for us? The schools are fantastic. The proximity to your office, gym, favorite stores can't be beat. You love the area and the home, and you won't find another one like it. In a better market, you would most likely have much more competition for that home.
    If you have any questions or would just like to look around at the homes in your area I have a great program that will let you do that. Call or send a quick email to let me set up your personal web page to have full access to the homes on the NWMLS.

Lonnie Snyder

Keller Williams Realty Southeast Sound
Phone: 206-406-2710
E-Mail : snyder@kw.com
Website: http://www.callsnyder.com/
Blogsite: http://renton-real-estate.blogspot.com/
Lonnie Snyder is a full time real estate agent and REALTOR® with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Washington’s Kent, Renton, Newcastle and South Bellevue.

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