Remember these 3 Tips before you buy that Scottsdale AZ home

November 23, 2008

As a Scottsdale AZ real estate agent, I interact with real estate buyers and sellers. As a result, you can imagine the range of emotions I hear on a daily basis. If you are a Phoenix AZ real estate owner or real estate investor, the emotions3 Tips before you buy that Scottsdale AZ home range from shock to sadness to anger. I am sympathetic as I too am a home owner.

I do get to balance the frustration with buyers who feel that this is a once in a lifetime sale.  Phoenix AZ real estate prices are down more than 30% in the last 12 months alone. Even town like Scottsdale AZ, Fountain Hills AZ and Paradise Valley AZ are down more than 15%.

Most buyers, are still nervous as cash is still king and buying homes requires as much, or more, than 20% down payments. However, for the most part, they feel like kids in a real estate candy store. They are licking there lips and getting ready to buy at deep discount, bargain basement, even going out of business (no pun intended) sale prices.

I want to encourage those who have been planning to buy and who can truly afford to buy to take advantage of a buyer’s market, deep discount prices, low mortgage rates, tax benefits to take a leap of faith and buy.

However, I also want to caution buyers to consider the following real estate buying rules so you don’t fall into a trap like many others have in the last few years.

  • Don’t take on more house than you need to - one of the biggest mistakes that real estate buyers make is buying much more than they need and worse buying much more than they can afford.
  • The impossible can happen - gas prices have gone down 60% in 4 months, the S&P 500 is down 45% for the year, real estate prices have dropped more than 30% in the last 12 months. These were impossible events to think could happen. Make sure you can afford what you buy and can afford to stay in the home for a long time.
  • Diamonds are forever. Cash is not! - make sure you have sufficient reserves in the event of a prolonged recession, depression or emergency. If you don’t have at least 6 months of expenses in savings, dont buy!

Today’s home buyer is seeing opportunities that they may never have expected.

I encourage you to buy a home only if you can stay in your home for at least 5 years, put down at least 10% (20% is better) and get 30-year fixed mortgage.

If you can handle the payment comfortably then history has proven that you will build a nest egg while enjoying all the other benefits home ownership has to offer.

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Copyright © James Wexler *Remember these 3 Tips before you buy that Scottsdale AZ home  *

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes

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Written by James Wexler · Filed Under Articles, Buyers, Investing 

Comments

One Response to “Remember these 3 Tips before you buy that Scottsdale AZ home”

  1. Rochester MN Real Estate on November 24th, 2008 11:02 am

    I think that are great Real Estate tips for anywhere … not just Scottsdale.

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