Take Advantage Of This Great Time To Buy
Broker Eugene Berman quotes, “If you wait for the last drop you could go thirsty.” He is a member of the National Association of Exclusive Buyer Agents and was referring to the fact that waiting around on a market is not always the best idea. Timing can mean everything when buying a home. Is a buyer tries to wit out the market to see if the deals get any better, they may miss their chance to take advantage of the current market. Many real estate agents concur that waiting around for a good deal to get better may not always be the best choice a buyer can make.
Another broker from California, Chisholm Gentry, just sent an email on the status of his clients: “Hope all is well! We’ve seen a small slow down in the local market. Still lots of buyers but they are just now (after two months of the interest rate drop) starting to make offers again on homes. Have you seen new buyers getting into the market lately?”
The answer is yes, and no.
Low interest rates, low prices on homes, along with a high inventory of homes for sale are driving many buyers to make serious offers. There are still the buyers waiting around for the great deals to get even better. Timing a buyer’s market is almost impossible. What might be an amazing price one day can jump up to an unaffordable amount the next.
If a buyer is currently renting while deciding whether or not it is a good time to buy, they are not receiving the tax benefits they could from paying their own mortgage. Not to mention rental rates are increasing. According to a July 19, 2010 press release by RealFacts, rent is up in almost every market in the 2nd quarter of 2010. There is a lack security in knowing if the monthly payment will stay the same for the next 3 years when paying monthly rent.
Owning a home is an investment that typically holds its value more firmly than other investments. The National Association of Home Builders reports on their website that new homes have consistently appreciated at a 5-6% increase annually! ! It is considered one of the best investments for individual households when taking into account the tax advantages.
It is a great opportunity for home owners to trade up on their current homes. The home owner may end up taking a small loss on the sale of their home, but the deal they can get on a more expensive home will make it worthwhile. By the time the seller’s market returns, a more expensive investment will pay off. The market is seen as a buyer’s market now, which leaves more elbow room to bargain with sellers as well as a bigger inventory to choose from.
Buyers Agents are extremely skilled at negotiating for the best deal. They also have access to all MLS, for sale by owner, and foreclosure properties. If a buyer is looking for a real estate agent to represent their fiduciary interests 100% of the time, they should research buyers agents who are members of the national associations by typing “Buyer Agent Search” in their browsers.
Trading up on a current home or choosing to buy a home instead of renting are both excellent ideas in the current buyer’s market. It is a good time to take advantage of low interest rates and low home prices. Playing the waiting game in the housing market is not always to a buyer’s advantage.
Learn more about how to buy a home. Stop by Kathleen Chiras’s site where you can find out all about the housing market.
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