»

Why Now Is A Good Time to Buy

  Comments Off Sunday, December 14, 2008

There are a lot of people who are able to buy today but are afraid to because they believe that prices will go lower.  While this may be true, there are several reasons why the able buyer who has personal residence needs to satisfy should rethink their strategy.
Firstly, it is difficult to “time” the real estate market just like it is difficult to “time” the stock market.  Usually, by the time the data comes out to reveal that the bottom of the market has been reached, prices are already on the rise.  This alone is not so bad, but some of the other benefits of today’s market also become more elusive after the market “turns around”.

Secondly, inventory is at an all time high.  This means you can take the time you need to compare and contrast your top candidate properties.  Don’t take too long though; properly priced properties can receive multiple offers even in today’s market place. You will also be able to review and evaluate your inspection reports and negotiate for repairs or repair credits.

Comprehensive inspections performed by experts and thorough evaluation of the resulting reports is especially critical when purchasing “Fixer Uppers”. After the “turn around” inventory could drop rapidly leaving those on the sideline to be caught in the “post-turnaround” frenzy associated with the seller’s market multiple offer phase of the market cycle.

Thirdly, some sellers will credit back money to the buyer.  This money can be used to cover all of the buyer’s closing costs or be used for repairs.  REO (Real Estate Owned by the bank or other lender.) properties are especially attractive for this reason.

FHA purchase money loans are especially accommodating of this practice. The REO sellers becoming less generous with buyer credits may accompany the “post-turn around” phase of the market cycle.

Finally, interest rates are still at a historical all time low.

Tags: , , , , ,
Posted in Buying a Home by Orlando Hooks

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.