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Outguessing the market

Posted October 22, 2014 in Advice Column, Bondurant

How do you possibly outguess the market? Is building, buying preexisting or renting the right option for you? What will rates do? How much should your down payment be?

If you are like most people these are difficult questions. Just one wrong answer can cost you and your family a lot of money. The good news is the process is not overly complicated, and there are more resources available than ever to help educate you. Here are a few ideas to help you in your search.

•    When deciding what purchase route to go, it is very important to first decide your exit strategy. I know that may seem crazy for a home you have yet to buy. Remember, you make money the day you invest in the house, not the day you sell it. Selling is just the by-product of hard work and research on the front end. Figure out the length of time you are likely to be in the property and the likelihood of change occurring in the next few years. Does a long-term investment make sense? If you build, will you have time for values to rise? This usually will lead you to a path where the choices become clearer.

•    Financial questions can also be a big issue. Watching market rates, knowing your investment needs and what time frame you are dealing with are huge factors in making an informed decisions. All of these factors you can research and discuss with professionals who have expertise in these areas. Make sure the advice you solicit is unbiased and rooted in your best interest. Using local market information about what may be overpriced or undervalued can be very helpful in putting yourself in a long term strong position.

•    Use resources that are available to you such as comparable property searches that many county assessors have online. Compare neighborhoods through tools like Zillow to help you find opportunities in communities where you want to live. Finally, compare the options with an unbiased opinion. By using these tools you will be much more likely to end up in a home that makes sense for your current and future needs. If you buy wisely, it may just be the best investment you ever make.

We look forward to helping our customers navigate these and other important financial decisions. Legacy Bank wants to make sure your dream home is always just that.

Information provided by Jeff Sullivan, Mortgage Banker, Legacy Bank, 515-967-4949.





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