Sunday, October 12, 2008

REOs, Short Sales, Foreclosures! Oh, My!

These buzz words abound within our real estate market today. Headlines about our economy, politics and global affairs keep you from sleeping at night. If those things are not directly impacting your daily life you, you know you’re just waiting your turn. You find yourself wishing you were Warren Buffet or Donald Trump. And then, late at night, when you turn on the TV, hoping to find some mindless show that will help you drift off to sleep, you end up watching a “get rich quick” infomercial… and THEN you can’t sleep because you’re wondering if you ARE missing your opportunity to become the world’s next real estate billionaire. So, what’s the truth?

Well… it depends. It’s true that some people take high risks and make a mint. Other people take high risks and lose, big. I recently received an email from a financial planning consultant that said his firm’s recommendations in today’s economy were to make no decisions based on fear, panic or greed. Good advice, I think, especially when it comes to real estate.

Real estate decisions should be based on the lifestyle you’re trying to create for yourself and your family.
  • If you’re ready to settle down, buying a first home can be the best investment you’ll ever make.
  • If you’re already stable in your family and financial life, and thinking of moving up, it’s true that selling your current home can be daunting … but you will also get an amazing deal on your next home, so it’s all relative.
  • Perhaps you’re considering investing. To the true (well capitalized and long term) investor, I say “go for it”. The rental market is strong right now, and properties can be purchased with positive cash flow from day one. But, with each of these tidbits of advice come warnings.

It’s often said that real estate is a LOCAL business, but I feel it’s a personal business. Buying or selling in any market condition can be a good decision or a bad one, and more important than timing the market, is understanding how these decisions will impact your life and your family - today, tomorrow and for years to come.

If you have an opportunity to buy a home for a rock bottom, absolutely fabulous, amazing deal…if you can not afford the mortgage payments, then you should not buy. Even if the home you’re considering is a terrible financial deal, but you can afford the mortgage payments and you will love every moment of every day of your life because of your new home, then it is well worth it.

Hire the right real estate consultant. I can help you understand the short term and long term risks and benefits of buying or selling, help you make financing choices, and to educate you on the local market place. You'll learn all the terminology in today’s market – like REOs, Short Sales and Foreclosures.

If you’re buying, we’ll help you understand the risks and benefits of buying any of these types of properties so you can make the decision that’s best for you.

If you’re selling, we’ll help you understand if these sales are likely to impact your sale, and how; and help you evaluate the pros and cons of taking the “wait out the market” approach. Let me assist you in evaluating your options in the real estate world today.

More information about me is available at

Check out other blog posts to learn the answers to common questions like What is a Short Sale? What do I need to know about buying an REO? and Updates on Market Statistics.

Just follow the links… and, there’s good news for Loudoun County – check it out!

Please note the date of this blog post.  Please get updated information from me personally or at least by reading more current posts.  The market is forever evolving, and therefore, so is my advice!
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