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Friday, May 29, 2009

Buy Now or Wait?

Buy Now or Wait?
by Gretchen Ellinger

Oh, for a crystal ball! Many are asking the same question: Have real estate prices hit the bottom, or will they fall even further? Sellers wonder whether to lower their prices even further. Buyers wonder if now is the time to buy, or will prices go even lower? If you are the buyer poised to purchase, some important considerations may help you decide if you should buy now or wait.

Your current budget, and your future budget, should both be taken into careful consideration. While dramatically reduced purchase prices on properties that were previously out of your price range may be tempting, the purchase price addresses only the current budget. The price of maintenance may move the property out of your projected budget; for example, if the property that you did not previously consider has moved into your price range after a 30 percent price reduction, you may be able to afford the purchase price, but can you afford the ongoing Homeowners' Association (HOA) fees and utility bills, which will not be reduced at all?

If you purchase the property at the current price, will you be happy with the property for that price? If so, then you should probably act now. Or will you make yourself crazy wondering if you should have waited for a lower price? If this describes you, then wait for a further price reduction, with the understanding that someone else may buy it while you are waiting! If you have found the perfect property, the one that will flip your switch every time you think of it, then by all means buy now, if budget considerations are managed. If prices continue to drop, that does not affect you, because you bought your dream property at a great price.

Current prices of Puerto Peñasco real estate are very competitive, and while we are not sure where the bottom is, nearly all the experts agree that prices will stabilize, followed by appreciation. The crystal ball says that Puerto Peñasco real estate continues to be an excellent investment, for vacation enjoyment as well as for long-term gain, especially for buyers who take advantage of the current market conditions. Now just may be the time to purchase your little piece of Paradise!