Is now a good or terrible time to buy?

Asked by Chris, Royal Oak, MI Sun Jan 25, 2009

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6
Sonya Loose, Agent, Beaverton, MI
Mon Jan 26, 2009
Chris, don't forget that if you are a new homebuyer (haven't owned a principle residence in the last 3 years) you could qualify for up to a $7500 tax credit. This is good for purchases until July 1, 2009. Visit my website under the Hot Topics tab for more info on this! The other anwers are very insightful and well thought out...you've gotten some great advice!
0 votes
Derek Bauer, Agent, South Lyon, MI
Mon Jan 26, 2009
Chris,

As Maureen prefaced, we do not have a crystal ball, and it is very difficult to time the, "perfect buy." In our area, the economic downturn started long before it did in the rest of the country, and many predict we will come out of it sooner, as well. See, there is a silver lining to -3 weather :-). That being said, values are VERY attractive, rates are even MORE attractive, so what is there to wait for?? IF you are or may be moving inside of 2 years, I would recommend you Lease, especially now. IF you feel you will be around for more than a couple years, look VERY closely at purchasing.

I practice what I preach and just turned my previous primary residence into a rental and upgraded. It is times like this that create wealth ... or at least can create security. You don't make money when you sell ... you make money when you buy.

Feel free to contact me to discuss this, the concessions you asked about on foreclosures, or exploring your options as relates to FHA.

Enjoy your sunny, Monday!
Web Reference:  http://www.DoorToDreams.com
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon Jan 26, 2009
When deciding to buy in this market you will have to answer a few more important questions in order to get to your answer is this a good or terrible time to buy....

a) why are you thinking about buying
b) will you live in the property yourself or not i.e. primary residence
c) do you intend to stay in the property for a good number of years lets say 5 or more
d) is this your first home or do you already own property and need to sell that one to buy the next one
e) your credit, your avail. down payment etc. i.e. the financial side of the "deal"

And here a few hints from a Realtor:
if you are a first time home buyer with good credit and down payment, this is a great time in most markets to buy your first property, since interest rates are low, home prices in most markets are low and you have a lot of choices and can negotiate well your terms and the sale price in most cases!!!!

If on the other hand you own property you need to sell You will have to look at it a little bit differently:
a) if you are upgrading, i.e. you are going from a condo/townhouse to a larger single fam. home
or from a smaller single fam. home to a much larger home, larger lot or a more expensive area/location
You are still good to buy in this market, although you will most likely lose some money on the sale of the
lower priced property you will make it up by far with the purchase of the larger, more expensive property!

b) if on the other hand you want to downgrade, go from a large single fam. home to a condo --- if you can you may want to wait a while .....

But as in every case your personal reasons for selling and / or buying are the most important ones....

I hope I answered some of your concerns and if you think you may want to proceed you will need a good, experienced Realtor who is an expert in your areas of interest. If you want I can recommend a partner agent
just let me know.
Edith
edithsellshomes@gmail.com
0 votes
Voices Member, , Benton County, OR
Mon Jan 26, 2009
Become as informed as possible about the market area you are interested in and you will be able to answer your own question.

You will be better off on the sidelines if you're thinking of entering the game without knowing anything about the game. Don't become part of someone else's big score.

Review your credit, borrowing power, what you can really afford, job security, income flow, housing market, price declines, interest rate trends and decide if the game appeals to you.
0 votes
Bill Eckler, Agent, Venice, FL
Mon Jan 26, 2009
Chris,
Depending on an individuals personal needs and opportunity....this could be the best time in years to make a deal.

2 day ago sinerio: In Southwest Florida the bank approved the sale offer of a 2001 contructed home, 3/2/2 in great condition for under $60,000. The buyers are delighted to be able to purchase a recently constructed home at 1/4 of its original cost. (for less than the building materials.)

In our opinion, the biggest mistake potential buyers can make is to no be actively looking for the right opportunity.....the opportunities that make it the "right time to buy" are out there, it's a matter of finding them.

Don't be caught standing on the sideline..........get in the game. You could be part of a big score.

Best of luck,
Susan & Bill Eckler

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sun Jan 25, 2009
Chris,

Unfortunately nobody has a crystal ball about what will happen in our market and when.

There are some AMAZING deals out there for buyers, that have been unseen in more than a decade. Interest rates are also at a long time low.

If I were a first time buyer, I would be excited about the opportunities before me. People need a place to live and there are some great deals to be had. I think the people who are going to be able to take advantage of those deals are going to make a lot of money off of this downturn.

Maureen
Web Reference:  http://miOaklandCounty.com
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