When something’s down, something else has to be up.  We all know that home prices have plummeted because of the foreclosure crisis.  Oh, so true.  But what that downturn has done is create a equally dramatic reaction in the acquisition opportunity arena.  In other words… it’s a buyers’ market!  For those who have sat on the fence waiting before jumping back into home ownership, or maybe for those looking to get into the pool for the first time; sounds like the bell has rung.

Some would argue that owning a home is not the sure-fire investment it used to be.  They would point out the time value of money and if one so opted to rent, he could take the difference he saved from paying a mortgage, and the downpayment that is still in his pocket, and invest those dollars elsewhere.  Valid points.  I will explore those options in a later blog post.  For now, let’s dabble on the side of buying a home.

Prashant Gopal wrote in BusinessWeek, August 20, 2009, “Why Rent When You Can Buy?”

To create a fair matchup between owning and renting, we calculated ownership costs assuming a fixed 30-year loan for 100% of the purchase price with no down payment. If we had instead decided to factor in a 20% down payment, owning would have been the cheaper option for the top 10 metros on our list.

“It’s a great time to buy,” says Mollie Carmichael, senior vice-president of John Burns Real Estate Consulting in Irvine, Calif. “If you can own a home for less than the cost to rent, then it’s a logical financial proposition.”

So take out your calendar and block off Sunday afternoons to go deal hunting, um, I mean house shopping.  Ask a Realtor to show you the best offerings in the most desirable neighborhoods.  Consider the long term implications of your choice because you will probably have to hold on to your new dwelling for awhile if you want to see a return on it.  So, are the schools good?  Is your commute to work acceptable?  Recreational and dining options?

If you really want to get top value for your dollar, you may want to look at buying a house that was foreclosed on.  You can go directly to court house auctions, again talk to Realtors, or simply ask around.  It’s amazing at the deals you can make now if you are in the market.  Just make sure to get accurate information.  The value of a house a year ago is NOT what it is worth today.  If you want to know if a house is in foreclosure now, or who the real owner is (there are scams involving homes being sold/rented by con artists) get a Property Report done first.  For a few bucks, it’s worth it.

The pride of ownership does go a long way.  Especially when you didn’t have to pay an arm and a leg to get it.  So, if you’re looking to buy; start looking.