I’m sure you have heard the investment phrase “buy low and sell high”.  Now is the time to buy low.  Oh I know, you are scared.  I get that.  The national media seems to only print articles about the worst markets in the country.  But that’s not Birmingham.

Granted, the Birmingham market is softer today than it was 3 years ago.  But when else can you “buy low”?  By definition, this is the time to buy a new home – while the market (prices) are low and interest rates are low.  That means your payment will be low.

If the market is red hot, and everyone feels great about buying new homes, then  you cannot “buy low and sell high”

Sure, it takes courage.  Yes you need to be sure that the payments for your new home are affordable on your budget.  Seek professional advice from a Realtor.  Ask them to show you the payments on one of our homes and explain to you the tax benefits of home ownership.  When you factor in the tax benefits, I bet you can own a new Tower Home for less money that you would pay to rent a nice apartment.

And by the way, that is why Americans consider home ownership the American Dream.

Are you ready to buy a home but trying to decide if you want a new home, to chase a short sale, foreclosure, or used home?  Well here are some pints to ponder:

A new home is a safe bet.  It will be built to code.  The home will have the latest features.  It will be energy efficient.  You can make some selections to be installed by the Home Builder.  And, the Builder will offer a warranty on the home.

A short sale or foreclosure could be a good deal.  Or not.  Just remember that you are buying someone else’s problem.  If the bank owns the home, they have hired a handyman to repair or finish the home.  That is often quite a contrast from a licensed and insured Home Builder.  You may spend months trying to negotiate the deal with the lender.  They may not even respond to your offer.  There will not be a warranty.  Good luck on the home inspection – I hope he finds all the short cuts!  So good luck (you are going to need it).

What about a used home?  Think about it this way.  You are walking into a shoe store.  There is a rack of shoes with a sign that says $50.  One pair of shoes is new.  The others are used.  Which would you rather own?  Wouldn’t you prefer to be the first person to cook a meal in your new kitchen?  And surely you would rather be the first person to take a bath in the tub!  Don’t forget the warranty, energy efficiency, and smell of a new home!  Surely, you don’t buy used shoes for the same price as new ones?

First, due to soft market conditions the prices of new homes are lower today that they were 3 years ago when the market was red hot.  Second, mortgage rates are at the lowest they have been since World War II.  So a new home is more affordable today than any time since the 1940’s!

Buyers today can buy more home for less money.

Don’t be concerned by national real estate media reports.  Real estate is a LOCAL market.  The Birmingham market still remains relatively solid compared to the top 50 largest real estate markets nationwide.

New homes are being sold every day in Birmingham.  At Tower, we are having a great year.  The reason for that homes are super affordable today

So, make your own decision.  Don’t let anyone tell you what’s right for you.  Study the market.  Calculate your payments using today’s phenomenally low rate.  Then decide if owning a new home is right for you.