What's the best strategy for owning a home in a depressed real estate market?

I think you should disregard the majority of the answers here. You are getting a lot of third party information from people watching the 5pm news. Here's the true low-down.

There is no better time than right now to look for a home. Sellers will not be lowering prices any further and interest rates are not going to be getting any lower. Your negotiating power is not going to be any stronger than it is right now. Depending on the market you are in, Real Estate has already started to make a recovery or will be soon. If you don't buy before summer of next year, you're probably missing out.

Please ignore the comments about your credit. If you're serious about buying a house, simply contact a trusted lender and have them perform an analysis for you and let them show you exactly where you stand and if there's anything you can do to improve your terms. I say this because it's not just credit that affects your rate and terms. If the expert does this properly, you'll walk away with confidence knowing exactly where you stand. Also, since your mortgage banker will make a commission from the mortgage, you should not pay him to perform this analysis.

Also, a general rule in Real Estate. When the market is good, buy. When the market is bad, buy. Deals are to be had in any market. Surround yourself with professionals to help you and you will be just fine.

Assuming that you already own, hang on for the ride. One maxim in real estate: "What goes down, must come up." holds true over time.

If you're in the market to buy, choose carefully. Buy in a decent neighborhood. Get a fixed rate mortgage. Be prepared to stay put for at least 5 years or so.

In the condition the market is these days, your best bet is to get your credit report accurate to improve your score. Then go to a local bank (Not a big chain bank like Bank of America) and try to stay away from lenders like Countrywide. They "sell" your mortgage off to other companies and that affects your rate later in the life of your mortgage. Local banks want to keep their money local, and are more apt to "make deals" in lieu of a cash down payment. The poor real estate market affects the seller too. Have your agent offer "deals" to the seller like lowering the asking price to cover the down payment, paying for the home inspection(Get the home inspection, they alone are PRICELESS!) and other ploys agents use. In some cases agents will agree to lower their commission if the other agent lowers their commission to save the buyer/seller some money and make the sale.

Epic, if you own a home and do not have to sell, then don't! Sit tight, the market will rebound. If you're thinking about a move in the future, plan for it now. Keep you credit clean, save some money.

While this is a depressed market now, it will turn around and I'd rather be on the upside of selling, than the downside.

One other point I'd like to make is alot of people are out there looking for the deal of a lifetime. What they don't seem to understand is they are lowering the values of the very properties they are buying.

Best to ask a LOCAL Realtor. Each area of the country is different!

The top of the San Diego California real estate market was the summer of 2005. Most home values are now off by double digits!

I think we are only half way through this decline. 2010 should be the bottom.

Keep in mind, the average San Diego median home price is over $550,000. So, a 15% decline is a $82,500 loss! If you purchased last year, even with 20% down payment, your San Diego home could now be worth MUCH LESS than the amount of your mortgage!

With my take on the background of the current San Diego real estate market expressed, my opinion on the immediate future is that the San Diego real estate market is likely to accelerate down as the popular adjustable rate mortgages from the last few years come up for their first adjustment.

Yes, San Diego housing values could easily be down 25 to 30% from their summer 2005 values by the end of 2007.

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://www.brokerforyou.com/brokerforyou

Additional real estate info sites:

http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.com
http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.brokerforyou.com/blogger/index.htm
http://www.sandiegorealestatelibrary.info
http://www.sandiego-agent.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com
http://www.alpinerealestateagent.info
http://www.bonitarealestateagent.info
http://www.carlsbadrealestateagent.info
http://www.chulavistarealestateagent.info
http://www.clairemontrealestateagent.info
http://www.elcajonrealestateagent.info
http://www.encinitasrealestateagent.info
http://www.escondidorealestateagent.info
http://www.fallbrookrealestateagent.info
http://www.jamulrealestateagent.info
http://www.miramesarealestateagent.info
http://www.nationalcityrealestateagent.info
http://www.pacificbeachrealestateagent.info
http://www.pointlomarealestateagent.info
http://www.santeerealestateagent.info
http://www.sorrentovalleyrealestateagent.info
http://www.tierrasantarealestate.info
http://www.universitycityrealestateagent.info

Buy a 3BR, 2BA, 2 car garage, quality siding, property in good condition (new roof, appliances, paint, flooring, hvac), in a good location, at a good price, and hold it until the prices go up.

Take pride in your ownership, do some remodelling, fresh paint, land scaping, think about additons, don't try to sell it unless you have to.
The Market will turn around, Real Estate is always a save investment. Other than stocks, Real Estate you can see and use. People will always have to live some where. Population is increasing and so is the need for Real Estate. Be confident and patient

Offer a deal lowing than the asking price, have 20% down and have extremely good credit.

In this market, have the funds to close a deal fast, majority of cash the better, so on any offer is solid no string attached

then look for the deal not the house, be patientest fall in love with the deal, make lots of offers, do not get discourage if they are rejected,

In the end one person will be desperate to sell, of the places you saw, the agent will remember that even though your deal was low, it was a fast closing and serious

In this market cash is king

get copy of your credit report you want to have a 680 middle score to have the best chance! if you have several credit cards pay them down to less than 50% of the limits! this will raise your score!
I would say try to put down a minimun of 10% and make a low offer. I would also include in the ofer that you ask for 6% seller concessions. thats 6% of the loan amount to cover closing costs. this has nothing to do with your down payment you must pay that! having seller concessions formt he seller allows you to only bring the down payment to the closing table. many that get 6% find extra money left over and its suggest you apply that to buy your rate down just 1% will lower your rate .50% not much but considering you save paying that for 30 years it adds up 100k home saves you 15k in added interest!

The American dream? I don't think so. I think it's the American nightmare!!!!

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