‘Home Values Down’

Printing your recent article “Home Values Spiral Down” (Aug. 30) was a most valuable service for your readers. You probably saved many of them thousands of dollars by keeping them from purchasing an overpriced house that’s about to tumble in value.

Some of us have seen the decrease of home values since 1989. We have studied and kept track of figures (inventory of houses for sale vs. actual sales, asking price vs. selling price, etc.). We have looked at houses for sale and compared them to those a year earlier. The downward spiral is still taking place and there is, as the report noted, no end in sight.

Most prospective home buyers do not have access to this information. Usually, the only information they have is what the real estate agent tells them. Unfortunately, many of them tell people that this is “the best time to buy.” However, they told us that in 1989. The phrase was repeated in 1990. In 1991, they told us prices have bottomed out. Last week, an agent told me at an open house that prices were moving up!

If I could give advice to your readers that are contemplating a home purchase, I would tell them to put it off if they can--let other people’s money settle the market and wait until prices stabilize.

I would also like to tell them that if they must buy a house they should:

1--Don’t settle. Find a place you love. This way you’ll be happy with the place and not worry about the depreciation that might take place.

2--Make low bids. Don’t be afraid and don’t feel bad. Houses have sold for 20% and more below asking price. And don’t feel bad about offering so little money for a place. After all, you worked hard for that money while the owner received his increased equity by happenstance.

3--Look at price ranges other than the one you have set for yourself. In other words, if you were planning to spend $300,000, also look at houses at or below $250,000. You might be pleasantly surprised at what is being offered below your range.

ROGER DOBKOWITZ

Los Angeles