Dear Sue,
I don’t know what to make of the crazy financial markets! I have been listening to the news constantly. It has been addicting. It’s like watching Sept. 11 all over again. It’s like watching an exploding space shuttle or maybe the O.J. Simpson trial. It is unbelievable!
Like the rest of the country, I am watching because I am anxious and worried about the outcome of these events. I don’t know if I should hole up or continue on with my life.
I am presently in escrow on a new home. Since I am feeling uncertain about making any big financial moves right now, I am struggling with the decision to close my escrow.
What are your thoughts?
— Anxious Al
Dear Al,
You have good reason to be anxious. Our current financial disaster on Wall Street has the entire world up in arms.
The proposed government bailout is designed to stabilize the markets not tank them. The finger-pointing, armchair quarterbacking, endless speculating and whining and lobbying is the background noise that makes for good television.
While our markets may be global, all we can influence is local. No one can make the closing decision for you. I can help you come to that decision by posing a few questions.
Does the home that you are in escrow on support your lifestyle? Does it support the way you want to live? Does it have the features that you need or want? Is it big enough or small enough? Is it conveniently located? Is it in close proximity to work, shopping, schools and medical facilities?
Does it have any issues or any incurable defects that you can’t live with?
Consider the affordability factor. Can you afford it? If you have been pre-approved by today’s conservative standards, chances are you more than qualify and you have a reasonable down payment.
Are your interest rates favorable? Are you locked in at a good rate? Is choice an issue? Do you feel you had enough properties to choose from? Have you looked at enough properties?
Is it a good value? Have you done a market analysis? How does it compare with other available, pending and sold properties?
Are you concerned about prices going down even further? What if they do? It’s difficult if not impossible to time the bottom of any market.
How long do you plan on living in your new home? If it’s five or more years, today’s volatile markets will be a distant memory.
Answer these questions and determine for yourself whether or not you should close your escrow. It’s a matter of good Home $$$s and Sense.
Sue Thompson is owner and sales manager of HomeTown Realtors. She can be reached at seesue@seehometown.com.