Property Concierge

Pasadena Homes Under $400,000

Posted on May 22nd, 2009 by Doug Willis

If this is the weekend you have finally made the decision to begin your home search you should find a good supply of homes in which to preview. After all, it is the weekend of the Indianapolis 500 and what better analogy than to “Start Your (home search) Engine.

I think you would probably have to go back as far as 2003 or 2004 to find this many homes available for sale priced under $400,000. Consider the other factors in your favor that make this the most opportune time in the last few years to go house hunting:

1. Favorable Interest Rates – rates on 30 year fixed money loans are fantastic. Want to get your rate even lower, consider buying down the rate by paying 1 to 2 points. This might make sense if you plan to stay in your house at least 5 years.
2. First Time Buyer Tax Credit – if this is your first home you will probably qualify for the $8000 federal tax credit. What could be better than a gift from Uncle Sam? You could look at applying the tax credit to the mortgage buy down or point reduction above, giving you the advantage of lower monthly payments.

Is Now the Time to Buy?

That’s a decision you and only you can make. Some people think the market will continue to decline resulting in lower prices. Consider your long term goals. If you plan to sell in the next two years, then who knows. But if you plan to live in the house for the next several years then now could be the time. You should speak with a tax professional and allow them to run a couple of scenarios for you. Look at the cost of renting and then the cost of buying along with the tax implications. Many times it can be a simple math problem, and the answer lies within the tea leaves.

When I performed the search for Pasadena homes priced under $400,000, there were 60+ homes that popped up on my list meeting the pricing criteria.