The current real estate market is not only a great opportunity for first time home buyers but also for “move up” buyers. The link below contains a great article that does a nice job of explaining the advantages of “moving/buying up” in a buyer’s market. Although one may not get the same amount for their current home as they may have two years ago when they sell, if they buy a larger house, they will be getting it at an even deeper discount (more than making up for the loss on the sale of the current home) and when the market begins to accelerate again, the appreciation on the larger, more expensive home will be greater.
On another note, you may have heard that first time home buyers will be able to use the $8,000 tax credit up front as down payment toward the purchase of a home rather than wait to claim it on their tax returns on the back end. This was suggested by the secretary of FHA, Shaun Donovan, and would only effect FHA loans. This has NOT been approved and no plan has been set forth. Apparently Secretary Donovan mistakenly let this slip at a press conference, however, there is no definitive plan or timetable for such a program. I will certainly keep you posted on any update regarding this.
Please let us know if you have any questions. And, of course, if you know anyone who is interested in buying, selling or investing in real estate in the Denver area, please put us in touch with them. We will take exceptional care of your referrals.
The Richards Group of Keller Williams Realty offers a wealth of knowledge and experience in real estate transactions in the Metro Denver area.