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Not what you know, but who you know...
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| Article on the Gilliam & Associates Realty Nashville Flood Relief Drive I organized during the summer of 2010. |
In 1985 a picture of me & my friends on the Pirate Ship ride from opening day of the NC State Fair, was on the front page of the Raleigh News & Observer newspaper. You can imagine the delight that Saturday morning when friends and family started calling, asking for my autograph. The famousness of it all!
25 years later I felt the same excitement all over again as I read, "pulling together for a cause" by Christa Gala. Her article was on the front page of the Real Estate section of the Raleigh News & Observer newspaper. Once again there was my picture, with an article about the Gilliam & Associates Realty Nashville Flood Relief Drive I organized. This time instead of phone calls, I got shout outs on facebook.
They say it's not what you know, but who you know. I am lucky enough to know some amazing people, not least of which is Christa (Chrissy) Gala, who made both opportunities to be in the paper possible. As you look at the picture from 1985, that's me at very top left, and the girl sitting next to me is Chrissy. (She was the one who wanted to ride the Pirate Ship that day.)
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| In this picture from the 1985 NC State Fair, I am at the top left, Chrissy is sitting next to me. |
Top 3 Reasons You Should Buy a House Today!
1. Interest rates are low.
2. Home prices are low.
3. Both interest rates and home prices will rise. Duh?! Right?! Of course, you knew I would say those things. If you are reading this blog, you were hoping that I would share some secret- some jewel- some "insider trading" gem that only I would know after 15 years in real estate. Here’s what you may not realize: It is all math... worse, it is algebra! Boring, I know. If you say, “I want a $500,ooo house,” what you are really saying is, “I can afford an 'X' amount monthly mortgage payment. In this case, X equals interest rate, times the principal, plus taxes and insurance. If the interest rate goes up, so does the payment. If the payment goes up, then the amount of house you can afford goes down. All of a sudden, that half-million dollar dream home is out of reach. Anyone who has ever bought a car knows that payments can be played with. You can put a larger down payment on the house; you can get an adjustable rate mortgage instead of a fixed rate mortgage; you can secure additional private (i.e., Family) financing, and so forth... You get the idea. Here is the best news (the part that doesn't involve a crystal ball): rates are going up, but they are still at historic lows. Demand for housing is low because people are scared. When they are no longer scared, prices will go up. Pent-up demand will be unleashed on the market place. We all know about supply and demand. When demand goes up, prices go up. You are at a once in a lifetime crossroads: Demand is low, interest rates are low. You can get MORE for your Money than my crystal ball says you will ever be able to get again in your lifetime! Don't let this opportunity pass you by... you will regret it if you do... I can promise you that you will. “Okay,” you say, “yes, prices are low, but I bet they will go lower.” You are a risk taker and want to feed off the bloodbath you foresee. You may be right, prices may go lower. Can't say for sure one way or another; but, interest rates are rising. That is happening. If the rate goes up faster than the prices fall (which is what is happening now), then you are losing ground, not gaining. Your payment will still be more than it would have been if you had paid more for your house. All signs point toward buying now. Get off the fence and into my car... let's go find you your dream home now, while you can still afford it!
2. Home prices are low.
3. Both interest rates and home prices will rise. Duh?! Right?! Of course, you knew I would say those things. If you are reading this blog, you were hoping that I would share some secret- some jewel- some "insider trading" gem that only I would know after 15 years in real estate. Here’s what you may not realize: It is all math... worse, it is algebra! Boring, I know. If you say, “I want a $500,ooo house,” what you are really saying is, “I can afford an 'X' amount monthly mortgage payment. In this case, X equals interest rate, times the principal, plus taxes and insurance. If the interest rate goes up, so does the payment. If the payment goes up, then the amount of house you can afford goes down. All of a sudden, that half-million dollar dream home is out of reach. Anyone who has ever bought a car knows that payments can be played with. You can put a larger down payment on the house; you can get an adjustable rate mortgage instead of a fixed rate mortgage; you can secure additional private (i.e., Family) financing, and so forth... You get the idea. Here is the best news (the part that doesn't involve a crystal ball): rates are going up, but they are still at historic lows. Demand for housing is low because people are scared. When they are no longer scared, prices will go up. Pent-up demand will be unleashed on the market place. We all know about supply and demand. When demand goes up, prices go up. You are at a once in a lifetime crossroads: Demand is low, interest rates are low. You can get MORE for your Money than my crystal ball says you will ever be able to get again in your lifetime! Don't let this opportunity pass you by... you will regret it if you do... I can promise you that you will. “Okay,” you say, “yes, prices are low, but I bet they will go lower.” You are a risk taker and want to feed off the bloodbath you foresee. You may be right, prices may go lower. Can't say for sure one way or another; but, interest rates are rising. That is happening. If the rate goes up faster than the prices fall (which is what is happening now), then you are losing ground, not gaining. Your payment will still be more than it would have been if you had paid more for your house. All signs point toward buying now. Get off the fence and into my car... let's go find you your dream home now, while you can still afford it!
