Monthly Archives: May 2012


Flawed appraisals seem to be killing deals in some areas. The inappropriate use of distressed and foreclosed properties as comparable in determining home values may be driving prices down in some cases. This practice perpetuates the cycle of declining home values in some markets. If you are having your home appraised you may want to check out the comps the appraiser uses to determine value. If necessary, argue your point.


1. Real estate keeps pace with or exceeds the rate of inflation. Even in areas hit hard by foreclosures, virtually all of them have shown substantial increases in real estate values when viewed in the long term.
2. The lowest interest rates since the 50’s. Consider buying now – here is why; with the government running huge deficits, it will have to sell treasury bills to cover the debt. Investors are feeling skittish about purchasing these securities.
3. Increasing interest rate add up quite fast. An interest increase of just 1 percent results in about a 25 percent increase in interest costs over the life of a 30 year fixed-rate loan.
4. The market may be close to bottomed out. Take a look at your local market in your specific price range. Look at the number of months of inventory now vs. six months ago and one year ago. If the number of months is declining that lets you know that your market may already have reached bottom.
5. Build your wealth – NOT YOUR LANDLORDS. When you purchase you lock in a payment at today’s rate. Assuming that inflation is average – 2.54 percent per year – 10 years from now your monthly payment will be the equivalent of 75 cents on the dollar.