Tuesday, July 1, 2008

5 New Rules Home Buying

I just read an interesting article from CNN.com called 5 new rules for home buyers -
There's no guarantee that prices have hit bottom yet - but that doesn't mean that you can't get a great deal now...Especially in DC...

Rule 1: You can't time the bottom
Rule 2: One reason to buy now - mortgage rates
Rule 3: Another reason to buy - rates on big mortgages
Rule 4: Don't buy cheap; buy good schools
Rule 5: Make sure your agent has your interest at heart
And my personal favorite (and my own rule)
Rule 6: DC is becoming ever more affordable with all factors taken into account....

...with rising gas prices, longer commute times, falling home prices (and some good negotiating tactics from your agent), improving school districts, millions in commercial/retail real estate development - the list goes on - DC has become ever more popular in recent months for suburban families to pack up and move closer to their jobs, mast of which happen to be in DC. Why spend all of that time in the car in bumper-to-bumper traffic wasting gas with the A/C turned up barely crawling at 5-8 mph when you could wake up at the same time, walk to your local Starbucks, have breakfast, read the paper and walk to work all in the same amount of time. What do you think?

6 comments:

Anonymous said...

If I follow your list I have to rule out DC when I get to #4.

Jesse Kaye said...
This comment has been removed by the author.
Jesse Kaye said...

While I don't disagree with you, there are a select few across the city that have wonderful ratings from parents and communities. More can be found here:

http://tinyurl.com/6nzhnb

Mose said...

I think there are many benefits/attractions to living in DC, but the "improving school districts" are not one of them. They may have improved relative to what they were in years past, but that really isn't saying anything at all. DC has some of the worst public schools in the country. The limited exception to this rule are the smaller, neighborhood based elementary schools located in NW, but those are the most expensive neighborhoods in the District, and that still only gets your kids through 6th grade. My wife and I regularly debate what we should do when our kids reach school age - suck it up and pay for private school, or move to a suburb with good public schools. DC public schools are simply not an option.

Anonymous said...

One positive effect of the credit crunch is that the new condo buildings being filled right now should have a financially strong set of owners. Defaults not only hurt the banks. They also hurt the remaining owners of the building. Those who default and don't pay condo fees increase the financial burden for their neighbors.

Anonymous said...

Dumb question - as a buyer, wouldn't I prefer high interest rates? Interest rates and housing prices are linked. Wouldn't it be best to pay a higher interest rate on a lower priced house than a lower interest rate on a higher priced house? I can always refinance my mortgage when rates go lower, but I can't refinance the price I pay on a house.