The whole bunch of us went to Wilson's Mills last night to look at a house that Hilary and Travis are considering. Both sets of parents, Hil and Travis and Travis' brother, Tyler.
It's a nice house, good condition, three bedrooms, unfinished upstairs.
These are uncertain times to buy a home. The market is very soft, as evidence by a story in today's paper. Buying an asset in a falling market, whether it is a stock or a home, can sometimes be as perilous as catching a falling knife. Timing a market bottom is tricky.
Home prices seem to be holding up here, but that may be only because sellers have not gotten sufficiently anxious to drop their prices enough. A more important indicator, I think, is the days that Triangle homes are sitting on the market. A $200,000 house that has sat there for six months may really need to be $180,000 in order to sell. People get very emotionally attached to their equity, regardless of current market conditions. But if a house hasn't sold for months, then it's probably overpriced. That is the majesty of our capitalist economic system -- it sends a very clear signal whether something is priced appropriately, i.e., is there a buyer willing to pay that price?
There's also the matter of concessions. Sellers may be sticking to their price but paying a greater share of closing costs. Or throwing in other goodies. But sometimes these concessions muddy up a transaction.
The same rules apply whether you are buying a house in a good market or a bad one. Shop around, keep a tight rein on your emotions, and get over any concerns you may have about having your offer rejected. Try to imagine, two or three years from now, if you're selling a particular house, whether you think you'll get your money out of it. Obviously, the more you pay now, the more you'll have to list it for in the future. Some future buyer won't give a hoot what you paid for it; the only thing that will matter to them is the price they're willing to pay.


