Is the glass half full or half empty?
Richmond, VA (PRWEB) February 17, 2009
There is a lot of confusion about where the economy is heading these days. On the one end of the spectrum, many swear that we are nearing the next "great depression", while on the other end, some will consider their investment options, and look at this as an opportunity. There is only one question that should be asked: "Is the glass half full or half empty?"
To reference the age old analogy of the glass being half full or half empty, one might assume there is no difference, but there most certainly is. For those who view the glass as half full. the expectation is for the glass to be full in the future, and likewise, for many in the real estate market who consider the glass as half full right now, they view the current economic struggles as an excellent opportunity to buy. Those who presume the glass to be half empty expect it to be all gone in the future, and are likely trying to sell, which can be difficult when the nation is not faced with economic paranoia. Regardless, for those in the market to buy, falling interest rates makes now the perfect time.
One of the first things that buyers should consider right now is the fact that 30 year loans have dropped to their lowest in 37 years. This is a direct result of the Federal Reserve pouring funds into the mortgage market. After buying up roughly $600,000,000 worth of mortgage securities and like debt, the U.S. housing market was spared. In addition, key interest rates have been cut from 1% to .25%, resulting in fixed mortgage rates below 5%. What this means is that, coupled with declining home prices, this low fixed mortgage rate makes it much easier to afford real estate, and those with stellar credit are looking to strike the best deal. It is a good idea to shop around, as the criteria for a rate varies from lender to lender.
For anyone asking themselves Can I buy a foreclosure, short-sale, or Real Estate Owned home?" the answer is yes. Another aspect of the current market that is worthy of mention is the abundance of these Real Estate Owned properties, or REO's. These properties are owned by banks, and are the result of non-payment from previous buyers, as well as the bank being unable to sell the property at auction. This is when the property enters REO status and it must sell, usually for a much lower price. As an added benefit, buyers are free to take their time to inspect the property and make a solid decision, whereas in an auction setting, they might be forced to act quick.
Considering these things, it is no wonder that there are professionals in the field who specialize in finding REO for buyers. DROdio.com is just one of many resources which help potential buyers find their perfect home for the perfect price, which many times will mean that the property is in REO status. As a buyer in the current market looking to buy real estate in Virginia, Maryland or Washington DC, it is important to find a real estate broker that knows the ropes. Please visit DROdio.com for more information.