Thinking about buying a home...when is the right time to buy?

Asked by Lidia Suarez, Denver, CO Tue Nov 13, 2012

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20
Al Bosworth’s answer
Al Bosworth, , Vail, CO
Sun Nov 18, 2012
I bought my first home in 1988. Mortgage rates were 10-1/2% and they were 18% when Carter was president. Now they're in the mid 3% range. Besides all the tax benefits, owning could be cheaper than renting! Remember, if you're renting, you're paying someone else's mortgage!

Check your credit and consult a licensed mortgage broker about what you can comfortably afford. Then find a reputable qualified Realtor to assist you. All their commissions are paid by the seller, so why not take advantage of a professional?

My best advice is- don't be upsold because the rates are so low. Only look at homes in your price range. Don't be talked into buying more house than you can afford. Many people buy more than they can afford because they hope as time goes by they will make more money. But what happens if you make less? Choose a home that fits your needs AND your budget.
1 vote
Michael Cheng, Agent, San Jose, CA
Thu Nov 22, 2012
Since you're an agent, you should know the best time to buy is when interest rates are sky-high (16-18%), underwriting standards are super-tight, and unemployment is high, above 10%. If you can buy a house under those conditions, preferably with cash, then home prices have the best chance to climb rapidly.

Advocating buying because rates are low is flawed reasoning and misleading. While rates are still headed much lower, prices should climb further. However, there's not much room left before we reach the theoretical floor in a non-deflationary economy. Once we've exhausted low rates as a stimulus in the next year or two, we'll need to see looser underwriting and lower unemployment. We're headed in the right direction, but we won't see a meaningful impact from those factors for several years.

So, right now is an average to decent time to buy for those with large downpayments, steady employment and flawless credit.
Web Reference:  http://www.archershomes.com
4 votes
Dena Schlutz, Agent, Boulder, CO
Wed Nov 28, 2012
I love Michael Cheng's answer and it states everything that I learned in business and economics classes! The only thing, is that I'm not sure we've been down this road before as a country with so much manipulation from the government in the free market.
1 vote
opondomusa, , 10020
Thu Nov 22, 2012
With record low interest rates and a variety of houses to choose from,this is the best time to buy.
But more specifically did you know that buying a house during the holiday season is a good deal.

This is the time of year where many people begin shopping for the holidays. They purchase gifts for their friends, family, and loved ones. But one item that you may want to consider buying for YOURSELF this holiday season is a new home. There are many benefits to purchasing a home in December, like:

1. Less competition Many consumers who are interested in purchasing a new home wait until after the holidays to start searching through the listings. While the malls have more customers this time of year, the real estate market actually experiences a decrease in shoppers during the holiday season. So, if you find a home that is perfect for you, you'll probably have fewer competing bids from other prospective buyers. And that leads to our next benefit of buying a home this time of year…



2. Good Deals If a house has been on the market for a few months -- and didn't sell during the late summer and fall seasons -- the seller may reduce the price during the winter months. In fact, in many areas of the country, homes prices are typically at their lowest during the month of December. Homeowners who are showing their homes during the holiday season are often hopeful to sell it before the end of the year because of tax purposes, so they may also be more willing to negotiate on the price.



3. It's a slow time of year for realtors and lenders and that means you will get more personalized attention from your real estate agent, and a lender may shave a few points off your interest rate, just so they can get one final sale and home loan on their books before the year is over. Also, because they are juggling fewer deals in December than at other times of the year, it's likely your paperwork will be processed faster as well.
1 vote
Enrrique Agu…, Agent, Aurora, CO
Sat Nov 17, 2012
now!! Call me i can help you
0 votes
The Roskelly…, Agent, Gambrills, MD
Sat Nov 17, 2012
I've been in the industry 13 years and I've never seen a better time to buy. Interest rates are at record lows, property values are stabilizing to increase and while I don't think we will see a repeat of the record real estate boom that ended in 2005, I think real estate remains the very best long term investment in your future.
0 votes
Robert McGui…, Agent, Denver, CO
Sat Nov 17, 2012
Lidia,

The best time in Denver is now. The rates are favorable, the prices have not skyrocketed since reaching their low point, and all of these things can change quickly and without notice. Homes will inevitably increase in value and interest rates have nowhere to go but up. I wrote an article recently about why it is better to purchase than to rent - http://bit.ly/GM15Ux

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Fri Nov 16, 2012
Lidia - since you're an agent, why are you asking this question?
I doubt you're thinking about buying a home and need agents' answers!

Don't you already know the answer?
0 votes
Tamara Stodd…, Agent, Longmont, CO
Fri Nov 16, 2012
NOW!
NOW!
NOW!
NOW!
NOW!
NOW!
NOW!!!!!!!
0 votes
Enrrique Agu…, Agent, Aurora, CO
Wed Nov 14, 2012
Hello Lidia for me the best time to buy is today, because of the interests rates are to low like never before and the prices of houses are still not to high you can find a nice home with low monthly payments, take advantage of the low interest rates, I hope i was helpful and if you have any more questions contact me at 720-327-7927 no compromise.
0 votes
You know the person asking the question is also a Realtor? But I agree, now is a great time to buy
Flag Thu Nov 15, 2012
, ,
Wed Nov 14, 2012
Dear Lidia,

My advice to you is don't try to "time the market." In 22 years of helping home buyers as a mortgage professional, I've never seen any "timing" work to a home buyer's benefit. I take the approach of preparedness and persistence, instead. That's how YOU set the BEST time to buy a home.

Prepare to buy:

Get Prequalified for mortgage financing: focus on monthly payment
Understand your price range: determine your price limits for making offers
Know the location where you want buy your home: when you do, find an experienced Local Realtor
Have your "wish list" ready with the preferred features of the home you want: the "Dream Home" exists in our minds. Knowing your preferrred features of the home you most want helps you compromise when you find the right house at the right price that meets most of your preferred features. You can always add a fireplace later!

Persistence:

WHEN you go out there, shop 'til you drop. Buying the right home is hard work. Looking at homes, then giving concise feedback to your Realtor helps you find a home that meets your needs and a Seller willing to sell at the price you're willing to pay. You'll be disappointed a few times, that's part of the process. Stay with it and you are sure to make your own "BEST" time to buy a home.


Trevor Curran
NMLS #40140
0 votes
Matt Ackerman, , Denver, CO
Wed Nov 14, 2012
Hi Lidia,

It depends on your financial situation. If you are looking to finance the property with a mortgage, the process is straight forward. We have options to purchase with a conventional loan with as little as 3% down payment. I normally ask to spend about 15 - 20 minutes on the phone with borrowers to understand their income, assets, credit history, etc. and then we can draw a conclusion to the right price and monthly payment. If I can help, please feel free to call me at 303-759-7331.

Take care,
Matt
0 votes
Joetta Fort, , Arvada, CO
Wed Nov 14, 2012
You got some great answers already, I would just encourage you to think about sitting down with an agent who will take some time with you, to determine if now is the right time and to see if you feel you would work well together.

And do try to work with an agent who works mainly in the area where you want to buy. I see most of the agents below are from Denver, which is great if that's where you want to buy. I work in Denver's northwestern suburbs, I could go on.

And I'm just going to tell you this, since a lot of people don't realize it - if you work with a buyers' agent you don't have to pay them. They are usually paid a portion of the listing agent's commission.
0 votes
Marina Bay, Agent, Greenwood Village, CO
Wed Nov 14, 2012
Lidia,

If you are ready financially and mentally to buy a property, don't wait any longer. Home prices started to climb up this year, interest rates continue to be super low, housing inventory is shrinking. In addition, November/December are historically slowest months for sellers in Colorado and price reductions are in abundance. You can get a better deal now, than next year.

If you don't have a realtor, please don't hesitate to call me. I'll be happy to help!

Marina Bay
Cherry Creek Properties
303-880-6167
0 votes
Jim Hendry, Agent, Lakewood, CO
Wed Nov 14, 2012
Buying a home is a good thing overall. If you have a steady job and plan on staying in the home for a couple years. The interest rates are very low.
0 votes
Chuck Strau…, Agent, Denver, CO
Wed Nov 14, 2012
I agree that now may well be the best time to buy. Low prices, coupled with historically low interest rates make home affordability amazing. We are currently experiencing extremely low inventory, which is putting some upward pressure on home prices. The National Association of Realtors expects the market to be strong for at least the next two years, with home prices rising nationally in the 5-7% range. I personally believe that Denver will do even better. Finally, it is very likely that interest rates will also rise, both of these factors putting some strain on current affordability.
I also agree that the holidays are, at least normally, a great time to buy as there are usually fewer buyers this time of year. If inventory remains low (and I don't see any reason to believe that it won't remain low) then fewer buyers means less competition for prime properties.
Finally, I also agree with Ray. IF your current situation dictates that you wait, then none of these current economic factors matter. The time has to be right for you.
Best of luck.
Chuck Strauss
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
0 votes
Keleigh Thom…, Agent, Lone Tree, CO
Tue Nov 13, 2012
This time of year is the best time to buy as there are fewer buyers looking for homes and fewer offers coming in so less competition for you. Historically, December is the month that has shown the lowest home prices. In addition, rates are at an all time low so you can get more house for the money. Will you be a first time homebuyer?
Keleigh
Thompson Real Estate
720-394-3084
keleigh_thompson@msn.com
0 votes
Ray Williams, , Denver, CO
Tue Nov 13, 2012
Lidia,

Not to sound ambiguous or vague, but the best time to buy is when you are ready to buy. Sounds like a vague answer but it actually is insightful and thought provoking because there is quite a bit that goes into timing being right for you. Best~
0 votes
Arlyn Tratt, Agent, Skokie, IL
Tue Nov 13, 2012
I think this is a great time to purchase. Investors are driving the market right now. Rents are up ticking and I believe the bottom of the market is behind us. Rates will never be this low again and sellers are still motivated to sell. There has never been a better time to buy.
0 votes
Fabiola Kind…, Agent, Laguna Beach, CA
Tue Nov 13, 2012
Now is the right time. Interest rates are low, and home prices are starting to rise again. Government incentives will soon expire unless they are extended.
0 votes
(949) 246-2327 Laguna Beach, CA. CA BRE Lic.# 01258619
Flag Thu May 15, 2014
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