House Buying According to Dave Ramsey

Should You Buy or Sell in 2011?

Make the right decision to buy or sell a home

The Tip

The coming year could mark the turnaround of the troubled real estate market. But homebuyers and sellers will each have their own challenges to face.

No matter which side of the real estate market you're on, it's been an interesting couple of years to say the least. Housing values dropped nationwide, foreclosures skyrocketed, and homebuyers became scarce.

In 2011, the forecast is for a calmer season, which isn't welcome news if you're hoping for a rebound in home values, but great news if you're shopping for a home. Here's a look at the two sides of the real estate coin for next year:

Slow Market For Sellers
If at all possible, hold off on selling your home until you see clear signs of a rebound in your local market. You'll want to see three straight months of rising sales and decreasing inventory—a six months' supply as opposed to the current 11 months' supply.

Even with these positive indicators, home values may continue to drop in some areas, and foreclosures will still be tough to compete with. That means it will be even more important to price your home correctly.

You'll find a real estate professional a huge asset in getting your home sold during 2011.

A Buyer's Market
What an exciting time to be a homebuyer! There's a huge selection, prices are down, and mortgage interest rates have never been lower. Oddly enough, though, house hunters haven't been buying—mostly because they're afraid the market hasn't hit bottom.

But most analysts agree that home values will only drop a few more percentage points in most areas—if that. So there's no need to wait for the "official" bottom. If you find a home you're in love with, however, don't get lured into a bidding war. There will be plenty more homes coming on the market at a good price.

A real estate pro will make sure you get the best home for your money and help you negotiate a great deal, potentially saving you thousands of dollars.

Working with a Professional
There's no way to overstate the importance of working with a real estate professional in today's housing market.