Home Buying in 12589>Question Details

Janis Borgue…, Real Estate Pro in Newburgh, NY

Will you be smart to buy a home in todays market?

Asked by Janis Borgueta, Newburgh, NY Wed Feb 10, 2010

Help the community by answering this question:

Answers

14
Oh, right. Thanks, Debbie.

Actually, I don't really care that "consumers" "hate" "cheerleading." Rah Rah Rah!

Real estate speculators have always made their money buying low and selling high; the trick is, knowing when low is low enough. And you only know that for certain after the fact.

But homeowners should have another set of concerns, mainly - how do they want to live? And there's no single right answer for everybody, not even a general set of guidelines.

If homeownership is your desire and your situation allows, most of the time, that's when you'll buy. Sometimes, you won't. Life goes on either way.

One secret to success in real estate sales is to focus on the people who actively want to buy and sell, and leave the rest for another day.
1 vote Thank Flag Link Tue Feb 16, 2010
It's just as incorrect to answer this question with.."it's a great time to buy"...........as it is to say "everyone who buys now is stupid".

Both exremes are just that - extremes.

If you find a home you love that you are planning on living in for a long time to come, and you can well afford it, and are not buying by the skin of your teeth......then buy it........why watch a home you love go away just because you are trying to time the market? Accept the fact that the value may still drop. In this case, it's your home...........not a stock. Living there "for a long time" (over 7 years) are the operative words.

That being said...........if this prototype buyer's plans are more tentative, and they aren't the kind of person who needs to fall in love with a home, and they are unsure or nervous...and the financial situation isn't solid......then they should wait.......the time is not right . Prices may still drop - that will vary area to area within the country......numbers may remain stagnant for years...who knows.......the same can be said regarding interest rates.

To answer the question posed by the agent above.........one would neither be smart - nor stupid - to buy now. It goes to motivation and needs.

ps mack....you know what the question is..........same old...."isn't this a good time to buy" cheerleading chant that most consumers hate!
1 vote Thank Flag Link Tue Feb 16, 2010
Gone for a while and the first question I see when I stop by to peruse is this one that is asked by a Agent.....

There has been some good responses to this question provided as if it (the question) were asked by a actual consumer (Depends on your market, depends on you ect..)

If this is just a let's start a "YOU SHOULD BUY" thread then let's just get the ball a rollin.....lol

MY MARKET is just a poppin, multiple offers, a shortage of Agents to represent all those anxious buyers, rising prices, no available properties to sell, everyone has a job and a chicken in their pot, Agents are getting 15% Commissions, homes sell in two days and no one is worried.

Realtors are highly respected because they have a Code of Ethics and are ranked higher than the Pope in Reader Digests new "Top Ten who do we trust" survey.


FSBO's are doomed and carry many curses, Flat-Fee, Rebate, Discount or anyone who charges less than the Full Standard Average 6% Commission is Bad, very very Bad.

Unlike other people Agents have expenses.

Good time to Buy..Great time to Buy...
Especially according to the RE Agent who desires or needs clients to make a living.....

The Real Question for a Consumer is (Do you want to base your decision to buy based on the opinions/advice of RE Agents?) since it may tend to be a bit biased....

Anyone (CONSUMER) who does not become as informed as possible about any Market they are considering buying or selling in is being very foolish IMHO.
Agents are one source of information not the end all experts or all-knowing gods of Real Estate.....They are often quick with the no one has a "crystal ball" for future predictions and quick with the "no one saw it coming" when explaining why it was a great time to buy in the past....

What a good number of CONSUMERS (and more join them every day) are doing is talking to each other, researching, watching and comparing who said what when and why..

Hopefully this means Consumers will do a better job than in the past of Hiring Services when they decide to use them and the RE Industry will be forced to do a better job of providing qualified Professionals to provide the Services.....

Dunes
1 vote Thank Flag Link Wed Feb 10, 2010
I still don't understand the question.
0 votes Thank Flag Link Tue Feb 16, 2010
I would be stupid to buy in todays market.

Once the interest rates rise, the $8k goes away and sellers realize just how many buyers have left it will be a good time to buy. When government interference stops it will be a good time to buy. Not until then.
0 votes Thank Flag Link Wed Feb 10, 2010
Dunes - You seem well rested and in rare form. Welcome back. TU!
0 votes Thank Flag Link Wed Feb 10, 2010
Janis, your question is a good one but really can't be effectively answered without more information regarding your intentions, condition of the market in your part of the country, financial goals, how long you plan to live in the home, what are rental prices in your area, and quite a few more. I would call one of the people who have responded to this questions and talk with them about your question so you can have a two way dialogue about it and address all the peripheral concerns.
Just because rates are good and prices are low may not mean it's a good idea for you to buy a home now.
Web Reference: http://www.ratewindow.com
0 votes Thank Flag Link Wed Feb 10, 2010
It's always smart to buy when the buyer is ready.
0 votes Thank Flag Link Wed Feb 10, 2010
Before I answer that question I'd need to know what the purpose of the purchase is. Are you buying as an investment or are you buying because you need a place to live? Are you planning on staying in the residence for longer than five years? What would be the difference in tax deductions; purchasing vs. renting and are the monthly costs similar? If they were similar could you find a rental that would suit your needs as well as a purchase? If you have a pet would that be a concern if the landlord would not accept the pet? Of course there are more variables.

Long and short: Buy LOW Sell HIGH and Location, Location and LOCATION. Do you believe that prices will dip even more in your area? Then the answer would be wait, unless you are a first time or second time buyer who qualifies for the government credit. Another consideration would be the interest rates and the ever changing mortgage downpayment and decreasing seller concession guidelines.

You see how many variables there are? You'll need to weigh all that will affect the buyer before you determine that answer. What may be the right time for one may not be for the other.
0 votes Thank Flag Link Wed Feb 10, 2010
Janis you should rewrite this in your blog instead of here under questions. This will allow more people to offer their opinions in the correct forum. And... my opinion is now is a great time to buy with the low interest rates, great selection of homes and great prices. If you can find a home that suits your needs and is priced at or below todays market value. I recomend buying.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Feb 10, 2010
Yes, there are many good reasons to buy a home today. Prices are better than they have been in years, and interest rates are great. You are throwing money out the window when you rent. The important thing is to not overextend yourself, trying to buy more than you can comfortably afford.
0 votes Thank Flag Link Wed Feb 10, 2010
Not sure of your question. Do you mean:

"Will you be smart enough to buy a home in today's market?"

Or do you mean:

"Would you be smart to buy a home in today's market?"

If the former (putting the emphasis on the individual buyer): Any time is a good time--a "smart" time--to buy a home if you buy right. Buy at a good price, and buy something that works. But it's not the right time for everyone, and it's not the right time if you overpay or get something that doesn't work. People make "smart" and "dumb" decisions in all markets.

If you mean the latter (putting the emphasis on today's market conditions): Not necessarily. There are risks and opportunities in any market.
0 votes Thank Flag Link Wed Feb 10, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Janis,

I'm hoping this is not just attempt to gain attention or promote yourself & your business. This question may be better served in a blog where people could comment.

As stated earlier by Dream Town, you as an agent, should be well aware all markets are different and this question is very subjective and vague.

Maybe a little more specificity is needed if you are truly asking a question to gain some knowledge from others in the industry.

Darin
0 votes Thank Flag Link Wed Feb 10, 2010
As an agent and the author of the question it would have been nice to hear your thoughts to spur the discussion. The answer is largely subjective as the national market cannot accurately summarize the happenings of local markets. The Chicago market, which is experiencing quite a lot of growth over the past 6 months in some important areas may fetch a different answer than the market in your local area.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Feb 10, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer