You Would Have to be an Idiot to Buy a Home in 2008

Posted by: Wayne Long on September 11th, 2008

What possible reason could you have to buy a home this year? Let’s analyze the facts.

1)    Interest rates down to 5.5% – the takeover of Freddie Mac and Fannie Mae have the rates tumbling. Why on earth would anyone want to pay a low interest rate like this when we could wait for double digit mortgage rates. I mean at 11% interest we would get twice the write off on our taxes wouldn’t we?

2)    $7500 tax credit for first time home buyers. You heard me right that is a tax credit – not a deduction. Of course if we wait on 11% mortgage rates we will have a pretty big deduction anyway so we may not want or need this $7500 tax CREDIT!

3)    Seller incentives are at all time highs. Sellers are almost certainly going to pay all your closing costs.  They may also be willing to throw in a refrigerator, privacy fence, and who knows what else.  But who needs all that stuff!  I would really rather pay my own closing costs and other expenses to get into a home as this makes me more independent.    Again, I can write that off on my taxes – right?

4)    Homes are at bargain prices compared to a couple of years ago! We don’t want to buy when prices are down though – do we? It is always better to buy high and sell low isn’t it?    If we bought now we might make a big profit in a few years – what would we do with all that money?

Any rational person can see that buying a home in 2008 would be a huge mistake.  Waiting a couple of years to buy a home would obviously be the wise decision.



17 Comments on “You Would Have to be an Idiot to Buy a Home in 2008”

Cedar City Real Estate

I really like the way you put things. Your headlines are always attention getting. After anyone reads this article it will be a no brainer of what to do. Oh by the way send all the people who wish to buy a home to Cedar City Utah.

Eric in Austin

Everyone wants to catch the market exactly when it bottoms out. However, as long as you catch it TOWARDS the bottom, you’ll do more than fine in the long term. The reasons you’ve outlined above are fantastic reasons to buy this year.

Scott Roemermann

It’s amazing to me how hard it is to convince “the masses” that we have such an outstanding opportunity right now. Everyone wanted to be a real estate investor 12-18 months ago. But, oh no, not now.

Hawaii Real Estate Reporter

I agree this is a great time to buy. BUT that $7500 tax credit is actually a loan you need to pay back. Still a good time, low interest rate, prices etc.

John Badalamenti

Very Well Stated Wayne. And…the FHA just announced that the down payment requirement of 2.25% is being raised to 3.5% beginning Jan. 1, 2009.

Mark Simons

Love your “logic”..can’t argue with that. But did you forget Lenders? Why buy now when you still have the choice of 30-40 major lenders to shop when in 2years most will have folded and you can pick from BofA or Wells Fargo only? Thanks.

John Carle

I don’t envy your markets right now. I live and sell in Edmonton, Canada. our market, while somewhat suppressed thanks to fear of impact by the US market, is still strong.

All the best to you agents in the U.S.

The Ace

You are absolutely correct, anyone buying a home in 2008 is an idiot. Now is the worst time to buy.

The bottom will come in 2010 buy now a catch a falling knife.

The Ace

Patricia Flores

Can anybody tell me about a company by the name of I live in the Detroit area and I got a post card in the mail from them stating they will place my home on the MLS and at no cost. My friend rec. the same post card and just listed their house through them. She stated that it worked just fine for her and that her house appeared on I would just like some feedback from people that are in this line of work and might have some more info. Thank you.

Wayne Long

@Ace – it is great that you know exactly where the bottom will be. Are you typically available on the psychic hot line or anything where I could contact you on a regular basis. There are some other things I would like to know. :)

Austin Real Estate Guide

That was awesome. Yeah since mortgage rates dropped I have been scouring the mls for something to buy.

Mack Perry

One fact that you forgot to mention is that for first time buyers they would also have the unfortunate experience of saving on their income taxes due to being able to write off the interest on their mortgage. Really they are probably better off paying someone else’s mortgage through their rent.

Lake Homes

I agree it is a great time to buy a house or any real estate really. Land, lots, investment property…. but I’d make sure I have a good chunk of cash. I would not to risk pulling a large loan in this unstable market right now.

Wayne Long

@ Mack – Very good point. I don’t know why I left that one out. :)

@ Lake Homes – I think you are always better off not to finance so much that it puts you at undue risk.

Scott Patterson

Defiantly points for home buyers to consider, with the market in it’s current state. I agree this is a Great Title.

Land Incorporated

Pick an area low in foreclosures but with reduced prices and it a good risk. Life is a risk and good property bought low will work out in long run.

outer banks nc real estate

always make a counter-offer. . It’s not a winner-take-all game, it’s a friendly and professional conciliation between the buyer and seller. Buyers should be treated well

Leave a Comment


For Real Estate Agents

Online Marekting Solutions

For Home Buyers and Sellers

e.g., 1250 S Main St, Burbank, CA or 91506
     Search Foreclosures    Search New Homes    Search Rentals    

Blog Categories

Blog Archives

Real Estate Blogs

Top Articles

Recent Comments

Guaranteed LeadsReferral Lead ProgramListings PackageVisits to your WebsiteFind REALTOR®Homes For SaleHome Values