New Home Loans a Smart Move with the Right Bargain

By Jonathan Haeber
CMR Columnist

Even though we're in the midst of a housing downturn, there is one important lesson to be drawn from the dire environment of the real estate bust: Bargains are out there, if anything because sellers are motivated to unload their homes.

A Home Bargain is Born Every Minute

Flip through the real estate section of any metro newspaper, and you might find the local gem that was overlooked. For example, The New York Times recently featured the story of Ms. Jocelyn Singh, who purchased a vacation home in the famed wine country of California for an astonishing $425,000 below asking price.

Singh's ranch house was on a prime acre of land in the quaint town of St. Helena of Napa Valley. With the extra 425K that Singh saved from the purchase, she's completing a much-needed remodel on the home to turn it into quiet the vacation retreat.

A Home Deal is a Deal

The new home loan and mortgage market may be bleak, but deals like these will only become more and more frequent. New York Times' Amy Gunderson writes: "Now, in many areas where second-home buyers flock, prices are trending downward. Home prices have already taken well-publicized hits in areas like South Florida and the Phoenix area."

Gunderson goes on to cite Cynthia A. Kroll, a senior economist for UC Berkeley, who predicts that similar so-called "vacation" areas have witnessed a dramatic slowing in sales, and price drops may be forthcoming.

Keep your eyes peeled. You won't be considered a sucker for securing a home for well below market price, especially if prices will begin an upward trend again in 2007, as some economists are predicting.

Source
New York Times: To Buy or Rent

About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home and took a self-taught crash course in home mortgages.

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