How to buy Real Estate at a BARGAIN even when the market is up!
by Adam Lachica
on Tuesday, March 20th, 2018 at 3:09pm.
Everyone wants to buy when Real Estate is a bargain. But should you delay homeownership out of fear of not buying at the bottom? Not anymore!
The biggest reason people want to buy their home at the bottom of the market is fear they may lose their original investment (down payment). If the value of the home they bought is lower when they decide to sell down the road, they may not get that original investment back.
In the past, you had no way to recover any amount of your investment (down payment) that was lost due to market values decreasing. The great news is that is no longer the case. I found a lender that actually has down payment protection insurance they can pair with your mortgage loan! This means you can feel comfortable knowing that even if the market value of your home decreases, you have the ability to recover the down payment (up to 20% or $200,000) you made on the purchase of your home. EVEN if you sell your home for less than you purchased it for! Contact me for a lender I know and trust who has this option available for you and can discuss the details.
Below is an example:
Let's say you purchased your home for $400,000. You put down 20% which is $80,000.
5 years later, the market has softened some and you sell your home for $350,000. That's a 12.5% loss, which is $50,000. OUCH!!!!With down payment protection insurance, you get that $50,000 back! It is reimbursed to you from the insurance policy!
Think about this: If you are selling your home at a lower price because the market is softer, the chances of you being able to buy at a lower price are also greater. NOW the risk of losing your original down payment from the higher market has been removed, you can move out and move up to your next home knowing you have not lost that precious down payment and investment you worked hard for and saved.
I get asked great questions every day about the purchase and selling process. This is the biggest purchase most people make in a lifetime. It is a very exciting time, but can also be a little stressful. I want this to be a great experience for my clients, so I am always researching options that can allow my clients to relax and enjoy this wonderful time in their lives. I am always “Looking Out For Your Best Interest”