My suggestion would be that you hold onto your cash at least until May, but monitor the specific housing segment you are targeting using pre-set automated MLS search agents via email. President Obama should sign HR1 within the next few days reinstating the $729,950 conforming cap, which may be a factor in your housing selection.
Loans that are not being purchased by the Fannie/Freddie (jumbos) are being priced at a premium to counter not having the Fannie/Freddie liquidity option. For example, the Jumbo-Conforming spread was about 1.8% late Jan/early Feb but now it's around 1.1% (going in the right direction for sure). Historically, and until July 2007, the spread or difference between conforming mortgage rates and jumbo rates moved within a narrow range of about 0.20%.
The lowering of rates in conforming (and agency conforming) loan amounts, along with a continued reduction in base Real Estate prices are two trends that shout to prudently informed buyers to wait. However, this strategy must be coupled with active market monitoring to be successful. Do not take your purchasing advice from the evening news - team with a professional Realtor to get the benefit of continual market monitoring.
Best Regards, Steve
Checked on searching at $750K to look for REOs to possibly negotiate downward to stay below your $650K target to achieve more to choose from: No additional attached listing, 10 more detached (2 REOs).
we have a down payment for a single from this location as well and is really unhappy with the sales rep that do feels like playing games with us. we have not have our final contract to date and looks like we are closing pretty soon.
no sure if we are going to follow through with the purchase. might let go our deposit as saw some better deals somewhere else with better home and service.
I think you should worry about the final value of the stuff you ar buyin and whethere it's fair price that others are receiving today. If you are not in that boat, go ahead and talk to them again and again.
I basically told them, I will back out if the price is not reduced this time around. They agreed to give that at the base price advertized today.
Let us know if u have any info about getting the deposit back. Also if there is anyone who is closing soon let us know if you have any info about price adjustments..
Also, do read my post regarding Realtor representation when buying from builders (a response concerning this very project):
There may be a couple of "Hmmm" moments when you review it. Let me know if I can help.
How are you collecting the deposit? Do you have an attorney? What do you advise?
What plan did you buy, when did you buy it and how much did you buy it for? I was told the same thing about price adjusments. If the asking price on paper is lower they wil adjust your price within 60 days fo close. I feel the sales reps there play games on how they offer the incentive and homes. Did you get any incentives?