Is it truly a great time to buy a Home?
BY JR Hafer
Certainly, it is truly a great time to buy real estate for a fist full of reasons. It is a buyer’s market. Supply far exceeds the demand at present. Mortgage Interest rates are at historical lows, market values have dropped, in some cases, as much as 31% from the higher values of 2004 and 2005. Banks are unloading foreclosed properties at bargain basement prices and those upside-down are selling at negotiated short sales.
Because the number of foreclosures on the market and short sales added to those who are motivated by anticipated economical hard times, a buyer on today’s market should be able to find the perfect home without much compromise at all.
Those potential buyers with higher credit scores who make offers to purchase through a knowledgeable Realtor® can find sellers willing to make concessions to help with the buyers closing costs.
The national economic and financial hard times are giving potential first time homebuyers incentives to go ahead and buy rather than waiting. For example the federal government has passed The American Recovery and Reinvestment Act of 2009 has authorized the IRS to provide an $8,000 tax credit to buyer’s who haven’t owned a primary residence in the last three years.
You can find unbelievable deals in great neighborhoods and who can say if the market has bottomed out or not. However, several of these factors I have mentioned will pass you by if you “dilly dally”. The tax credit goes away on December 1st, 2009. Mortgage interest rates have but only one way to go and that’s up. They will surly start rising further and faster as the market stabilizes and recovers.
The Tsunami of foreclosures and short sales has certainly changed the whole landscape of the real estate market here in central Florida and many other places in the nation. But the fact is; the probabilities of a home buyer getting another opportunity like this, is perhaps nonexistent.
Indeed people can purchase the house of their dreams at bargain basement prices in this environment. But do it wisely. Your Realtor will advise and guide you how to get pre-approved and navigate the process wisely in order to achieve an excellent purchase for your family’s comfort and security.
Although there are many pitfalls, your Realtor can advise you how to avoid them. Make sure you ask him / her about a home inspection, a home warranty to circumvent any surprises and disappointments.
Yes, it is truly a great time to buy a home. But make sure you do it the right way. Get the right financing, and the right Realtor. Someone who can make your real estate experience a real easy one. Enjoy the process and enjoy your new home.