Advantages of Buying a Home in Current Market
The negative reports about the current real estate market are often the
headlines on newspapers and the feature story on the evening news. These
reports have resulted in many prospective buyers deciding to wait until
the market has turned around before making a home purchase.
In fact, just the opposite should be the case. There are actually many
reasons why now is the perfect time to take advantage of the many
benefits offered by the current market.
In just the last few months, the number of homes that have gone on the
market has increased dramatically. The larger inventory of homes for
sale means that buyers now have a much larger selection of homes that
are available. As a result, you have a much greater chance of finding a
home that suits you in the best location to meet your taste and needs.
Eventually, the slump into which the housing market has descended will
end. When that happens, the inventory of homes from which you can choose
will dwindle quickly.
Considering the large number of properties that are currently available
on the market, many sellers have recognized that they must be willing to
negotiate both terms as well as price. Home prices are currently near
the bottom of the real estate cycle. This provides you with the perfect
opportunity to take advantage of these rock bottom prices.
If you considered the idea of purchasing a home just a few years ago,
you probably were presented with the inevitability of what were known as
bidding wars. Buyers lined up to bid on one particular property as the
market was limited and it was not at all uncommon for buyers to bid well
over the asking price. This meant you had to act very quickly in order
to find the right property and have a chance of getting it. Those days
are over. You now have the advantage of being able to take your time and
find exactly the right home to suit your needs. There is also the added
advantage that when you do find that home you can negotiate on the price
with no fears that another buyer will quickly enter the race and
possibly even snatch the property right out from under you.
In terms of financing, the news is not quite as bad as many news reports
would paint it. It is still possible to obtain mortgage financing and
even to obtain it at low interest rates. Standard rates for 30-year
fixed rate mortgages have dropped below 6%; which is quite advantageous.
You should know that the requirements to qualify for a mortgage loan
have tightened; however, good credit can help you to move past these
requirements and become
approved for a mortgage loan and at terms that
are quite favorable.
The best way to make sure that you do not have any problems qualifying
for a mortgage is to take the time to
check your credit scores before you apply for a mortgage loan and
repair your credit report for any potential
problems. Clear up any discrepancies and make sure you are paying your
bills on time to raise your score as high as possible.
In the event that you do have problems qualifying for a conventional
mortgage, there are other options available to you. One example is to
consider asking the owner if he or she would seller finance the property
at an interest rate the two of you negotiate. Many sellers who own the
property free and clear and do not have a mortgage very well may
consider this, especially if they have found it difficult to sell the
property because of the current market.
A temporary lease to own agreement is another option that may work in
some situations. This type of arrangement allows you to lease the
property for a specified period of time and then purchase the property.
Typically, this type of arrangement includes a portion of the lease
payment being transferred into a special account that can then be
credited toward the down payment on the property.
A twist on this idea is to lease the property with an option to purchase
it later. This type of arrangement gives you the right to purchase the
property later if you wish; however, you are not required to purchase
it. A portion of the lease payments can be credited toward the down
payment. In addition, the terms and price for the purchase are commonly
specified in the lease agreement.
With the wide number of choices currently available on the market and
sellers far more willing to negotiate terms and prices than in the past,
there has never been a better time to purchase a home.