in this market should ask: “‘Am I in a safe
neighborhood with good schools and in a community that I like?’ If the answer’s yes, then their investment is no more of a risk today than the day they bought the house.”
Make the Most of It
How to navigate the subprime fallout
If you’re buying a home …
- Investigate all sources of funding. Work with a reputable lender and investigate community-based programs that may offer down payment or closing assistance. _Ultimately, make sure you fully understand the terms of the loan.
- Negotiate for what’s important. Get a home inspection report from a licensed contractor or home inspection company. Ask the seller to focus on critical repairs, but consider fixing cosmetic concerns yourself.
- Assemble a team. Get references for any professionals—real estate agent, mortgage broker, attorney, etc.—who will provide information that’s vital to your decision _making.
If you’re selling a home …
- Stage the home. Paint, replace carpeting, etc., to ensure the house appeals to the widest range of potential buyers.
- Price to sell. Work with your realtor, visit the local _property assessor’s office, and use online resources to research what comparable homes in your area are _selling for.
- Be willing to negotiate. Understand where you may need to be flexible to avoid killing the deal.
- Consider leasing. Weigh the possibility of leasing the home to minimize potential losses and buy some time for the housing market to improve.
If you’re managing your portfolio …
- Buy solid companies on the dip. Market volatility and investor fear can cause a stock to drop, regardless of the company’s future viability.
- Think defensively. As the economy slows, look for opportunities in sectors that are more likely to hold up in a downturn, such as healthcare and utilities.
- Check your asset allocation. Make sure that you’re holdings are diverse and make any necessary adjustments.
- Hold on to cash. Don’t be afraid to increase your cash position as you wait for increased stability in the _market.
Where’s the value of your home headed?