The Waiting Game Is Not Always The Best Game In The Housing Market
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Own Instead Of Rent, Trade Up On A Current Home
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 be crucial in many cases. When something looks like a good deal, the buyer should not wait around to see if the deal gets better because it might just do the opposite. Many real estate agents agree that it is not wise to try and predict when to buy during a buyer's market.
A broker in California, Chisholm Gentry, recently emailed regarding that 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 to that question 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.
Buyers can't always be sure that buying a home will hold its value, but The National Association of Home Builders reports on their website that new homes have consistently appreciated at a 5-6% increase every year! It is one of the best investments for individual households when taking into account the tax advantages.
Home owners have the great fortune of being able to trade up on their current homes. A home owner may take a small loss by selling their home in this market, but the deal they can obtain on a more expensive home will be worth the small loss. By buying a more expensive home, a buyer will reap the rewards of a more expensive home when the seller's market returns. Buyers in a buyer's market have more negotiating power to get a deal of a lifetime.
A good buyer's representative who excels at negotiating is a buyers agent. Buyers agents also have access to a variety of homes for sale including MLS, for sale by owner, and foreclosure properties. Buyers Agent and members of the National Association of Exclusive Buyer Agents specialize in working with buyers and protecting the buyer's fiduciary interest 100% of the time. It is a good idea for a buyer to research Buyers Agents in their area when looking to buy a home by typing in "Buyer Agent Search" in a web browser.
Whether the buyer is considering trading up from their current home or is a present renter looking to take advantage of low interest rates, waiting for the market to get just a little better may not be a wise choice. A better choice is to evaluate how long one plans to stay in the same location, job security, and rent verses buy calculations. Right now home prices are historically low, as well as interest rates. It is a buyer's market and a prime time to buy.
Article Source: Articlelogy.com
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