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Home > Home Buying Tips > Is Now the Right Time to Take Advantage of the Buyer's Market

Is Now the Right Time to Take Advantage of the Buyer's Market?

Many people who have not previously purchased a home are now giving thought to the idea as prices continue to drop and the number of homes on the market escalates. Still, many are not sure whether they should buy a home now or wait out awhile to see where the market will finally settle. Obviously it's a home buyers market now. So, is now the right time to buy a house? 

Generally, the best time to make any type of major purchase, such as a home, is when the market is conducive to doing so. That would certainly seem to be the case now, while home buyers are able to be quite selective in their choices and save money when they finally do make a decision.

As professional real estate investors know, the best strategy for investing in real estate is to buy when you can do so at a low price and then sell when the market has experienced an upswing. As every professional real estate investor knows, "You make money when you BUY, not when you SELL". The lower you buy; the more money you will make when you eventually sell the property.

In most markets today, buyers can purchase a home for at least 5% below the asking prices. Some buyers find they can purchase homes at as much as 10% below the asking price. On a modest $150,000 home that means buyers can save as much as $15,000.

In addition to the upfront savings, many home sellers are also able to offer additional incentives in order to move their homes. These incentives include assistance with closing costs; which can be quite attractive to first time home buyers who may not have a large amount of cash to put toward the purchase of a home.

Still, while the national market certainly may point to the fact that now is an excellent time for buyers to take the plunge and go ahead and purchase a home, it is generally a good idea to make sure you are researching locally as well. Local markets due have a tendency to be somewhat different from the national market. For example, some areas have become quite hot. Within the Washington DC area there are several pocket markets that are actually sellerís markets. Within these small pockets homes are selling in less than two months, prices are up and the number of closings is up from just a year ago.

Such markets are few and far between; however, and the home buyer that has been sitting on the fence trying to decide whether now is the right time for them to buy or not would do well to review their local market and seriously consider taking the initiative. One of the keys to remember, if you have been hesitating about purchasing a home, is that while it is true there has been a spiral in sales prices on both coasts; the correction was long overdue in coming. On both the East and the West coasts prices had escalated so quickly that a correction was inevitable. That said; buyers who live basically in Middle America; however, will find that price declines have not been nearly as dramatic as in other areas. In these areas, buyers will not actually see an immediate benefit in waiting to purchase a home. In fact, those buyers who continue to put off purchasing a home may even lose significant advantages; such as a wide selection and sales prices that are quite affordable.

The widespread rumor that mortgage money is no longer available has been largely overstated. The simple fact of the matter is that there is still mortgage money available. Buyers who have significant credit problems may find it is not as easy to purchase a home as in past years; however, those buyers with reasonable credit will find they are still able to be approved for mortgage loans. Certainly, qualifications are now being more rigorously examined and more documentation is required, but mortgage money is still available. In addition, mortgage rates are still relatively low.

If you have ever thought of buying a home, now could very well be the best time to do so. Even if you live on the West Coast or the East coast, it could still be an excellent time to buy. Residents in the Seattle area, for example, are welcoming the price declines. In the past, prices rose so quickly that it was difficult for many to even consider purchasing a home. As a result of declining sales, many home sellers are beginning to set more realistic sales prices for their homes.

The bottom line is that buyers have never had a wider selection than they do now besides the ability to buy a home at prices that are considered by many to be quite affordable.



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