Zina Johnson, Other/Just Looking in Dorchester, WI

I am interested in buying a home. Is now the right time considering all the markets crashing?

Asked by Zina Johnson, Dorchester, WI Mon Oct 13, 2008

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17
Buying a home isn't just about a "buyers market," it's about whether this is financially the right time for YOU to buy. Don't let agents talk you into buying a home simply because it's a "buyers market" until you have done some real personal financial homework.

While markets may be crashing and the prices of homes dipping it doesn't mean YOU should be investing YOUR money in the market unless you:
* have access to credit
* have fat cash reserves
* aren’t already over-exposed to real estate
* have a secure job or income stream
* expect to hold the property for at least two years


Good news is prices of homes are dropping and mortgage rates are dipping, so, the short answer is, yes, it is worth considering but necessarily worth doing until you have seriously reviewed your financial position and outlined why you are buying and how long you intend to own the property.

Hope that helps ... We have done some interesting blog posts on this if you are interested in reading more:
http://www.territoryre.com/blog/

Good luck!
3 votes Thank Flag Link Tue Oct 14, 2008
Generally speaking, don't ask a board full of real estate agents if it's the right time to buy. They're pre-programmed to say "yes".

Research elsewhere for an answer.
3 votes Thank Flag Link Mon Oct 13, 2008
Probably not. The economic turmoil going on at Wall St. will not be felt in real estate for another half year. Prices are not IMO going to stabilize until 2010-11. Build up your down payment, and wait until prices come back to historic norms (as measured by Mattapan income ratio and rents). Good luck.
1 vote Thank Flag Link Fri Oct 17, 2008
Zina, if you are comfortable making the monthly payments (including all expenses) than I would have to say yes. You definitely want to take advantage of the $8,000.00 tax credit before November 30th! If you have any other questions or concerns please don't hesitate to contact me.



Jason Hargrove,Realtor
Success! Real Estate and Mortgages
Office: 781-848-9064 Direct Cell: 508-527-3523
Fax1: 781-848-9975 Fax2: 508-584-7161
http://www.SuccessRealEstate.com / http://www.JHargroveSellsHomes.com
0 votes Thank Flag Link Sat Sep 12, 2009
Where do you want to be in 5 years? If you buy now, where you want to be over the next 5 years, you can make a great deal, start saving on your income taxes with interest, taxes and other benefits. Also, with a new administration coming into office (McCain or Obama), one has to look at what has happened after Uncle Sam decided to pay for previous wars. After Viet Nam, interest rates soured high into the double digits almost reaching 19%, and that war was cheap compared to Iraq. After the Korean War, rates also went up. Same for World War II. So I'd say buy now with a fixed rate loan, and 5 years from now, we should be back into a normal market. If you are waiting for the botttom, why not make a low offer now, and start enjoying the benefits of home ownership!
Good luck to you.
0 votes Thank Flag Link Sun Oct 19, 2008
As Warren Buffet says, "be greedy when other are cautious." If you wait until a "good" time there will be a lot more buyer competition.

I agree with the previous comments about being financially ready.

Real Estate values are local, just like your weather. So, don't listen to blanket statements that you hear about everything going on in the market. If you already know the area you are interested in buying, you should research the area to find out how things are performing and get expert advice in that area.

Good luck
0 votes Thank Flag Link Sat Oct 18, 2008
The people in the best position to buy a home are those who have done their homework about your local housing market and the area you choose to live in. There are very importaint steps you need to take before buying a home. Do you have money in the bank? Do you have excellent credit? The point is, please do your homework before makeing a decision of this magnitude.
0 votes Thank Flag Link Sat Oct 18, 2008
It's not so much about the rest of the market as whether you are in a good position to buy. Take a good look at your finances. If you have a solid income, savings (or investments - NOT your 401k) for a decent down payment and control over your debts, you should be able to get a mortgage. But that's only part. Make sure you intend to stay where you buy for several years because it could take that long for the market to be healthy enough to sell.

If you do buy, don't look at the "current value" of your house until it is time to sell. The market is still unstable so that would just worry you. Be satisfied that you can afford your payments and the place is yours.

I'm in escrow right now in CA
0 votes Thank Flag Link Fri Oct 17, 2008
Hi Zina- it is a great question and the best option is to talk to an Accredited Buyer's Representative (ABR). A good agent will sit with you and look at your curent situation. What are you paying for rent? Do you pay a ton for utilities because your rental property does not have insulation? What amenties are you missing from your current property? Do you have a down deposit available and good credit? What towns are you considering? How long would you plan to live in this next home? For example, If you plan to move in 1-2 years, buying might not be the best option. However, if you plan to live in the next property for 5 years or more, this may be a fantasitc time to buy. It is truly about your current situation, so meet with an agent. Even if you choose not buy right now, you can learn the process and get all your questions answered so that you can decide when it is the right time to buy for YOU.
0 votes Thank Flag Link Fri Oct 17, 2008
There is no National Real Estate market so don't go by the national news media. The agents that have responded thus far all have good points, but they may not apply in your market. Some areas of the country have hit bottom and are beginning to rebound, some have never declined in the first place and others have remained stable throughout this "crisis".
The best advise I saw in the answers was to get an agent that is an accredited buyer's agent (ABR) to help you and show you comparable recent sales to support the values.
The $7500 first time buyer tax credit is a nice gesture and can help but remember it is only a interest free loan not a gift. That being said, I am always interested in interest free loans, just use it wisely. Paying off other debt is the most practical use of any interest free loan.
Happy House Hunting!
Web Reference: http://www.CallBobAllen.com
0 votes Thank Flag Link Fri Oct 17, 2008
Yes. Although we may not actually be at true bottom until late winter, we are awefully close. The exact time is not an exact science. However, prices are low. You know the phrase "buy low and sell high". Well now prices are low and the property you purchase (as long as it is in good condition and in a reasonably good location) will be a good investment. With that said- once you purchase, plan on owning the property for 5-6 years in order to see solid appreciation. And lastly, it is a good time to purchase while rates are still low. Of course you'll need good credit and downpayment.
0 votes Thank Flag Link Fri Oct 17, 2008
Zina,

The best time to purchase a home is during a "Buyer's market" which we are currently experiencing. With this said, it is a good time to buy.

Also, any knowledgable investor qill tell you, the best time to buy is when everyone else is selling. That makes the present, pretty appealing.

However, in light of the most recent turn of events, we suggest that any buyer, wait a while(a few weeks) before making a committment.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Tue Oct 14, 2008
In very broad terms yes now is the time to buy its a buyers market and there are many wonderful homes for sale at amazing prices. Now having said that if you were my client I would ask more questions to see if purchasing a home is the right time for you. Each person or family has differnt circumstances . One of the questions I would ask you first is have you spoke to a lender. Are you aware of what price point you qualify for and are you comfortable with the payment . Is this a first home or a move up home, is this a vacation home or primary residence. There are many factors to consider when you begin your search for a home. I would sugguest you find a reputable Realtor who can give you the information you need to determine if the right time for you to buy is Now.

Great question good luck.
Helene M Moore
0 votes Thank Flag Link Mon Oct 13, 2008
I agree with Belinda...Another thing to consider though... Buyers are typically focused on whether the prices of homes will continue to decline or not. You must also factor in the interest rates. Even a substantial drop in the list price of a home is nullified by an increase in rates so while you might shave a few bucks off the list price, the monthly payment may be quite more not to mention how much more you'll pay over the life of that loan. No one has a crystal ball as to the future of the housing market, but if you are prepared and ready to go, then start interviewing several accredited buyer agents and good luck! Don't forget that First Time Buyer's tax break...
0 votes Thank Flag Link Mon Oct 13, 2008
Great deals are made and not found. If you have the down payment and credit score you can benefit from both the buyer's market and the First Time Home Buyer's Tax Credit for 2008. ($7500). Find a good buyer's agent that is willing to sit with you and determine if now is the right time for you. Best of luck!
0 votes Thank Flag Link Mon Oct 13, 2008
It is definitely a buyers market now,but the right time to buy is when it is the right time for YOU to buy.Do not try to time the market, even the experts don't know when it will change.. If you have all your ducks in a row , you have good credit, the down payment, know what you are looking for, and truly want to buy , go for it.. Interest rates are still low, and there are great deals to be had. There are also first time buyer incentives available. For further information , please visit my web site.
0 votes Thank Flag Link Mon Oct 13, 2008
Wait a few years, prices are still declining. Good Luck
0 votes Thank Flag Link Mon Oct 13, 2008
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