Time to buy, or to buy time…
By: Matt Johnson, Content Editor/Writer | June 27, 2007
Today’s Wiki Wednesday Feature: Best Times to Buy
Everyone has heard the mantra “location, location, location” when it comes to buying a home, but timing is just as important. There’s no sense in moving into the perfect house if circumstances are likely to force you out a year or two later.
Can’t see into the future? That’s okay. A quick dip into the Real Estate Guide reveals (among many other articles) the Best Times to Buy, a discussion of personal and external factors that can help you determine if now is the right time to buy — or not to buy — a home.
With real estate markets softening in many parts of the U.S., it may pay to wait. The temptation to snap up what looks like a bargain should be tempered by the knowledge that if prices keep dropping after the house is yours, you may not be able to sell it for as much as you paid for it. This is especially true if you don’t plan to live in the house for more than a few years.
Other signs that you might be wise to wait include personal factors such as a change of job status, less than stellar credit (particularly now that the subprime market has tightened), and even impending parenthood. But if you’ve found the right market and your personal/professional life is on a relatively even keel, then you’re ready to get started. (And when you’re about to make an offer on that perfect house, you’ll want to time that too.)
Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.
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Ken Crotts on June 28, 2007 10:30 am
I am finding that the markets are varying from location to location and also from price range to price range. In Southeast King County properties under $300,000 are hot. $300,000 to $450,000 there’s a glut of newer homes on small lots. Over $450,000 to $550,000 quality homes on property (ideal move up homes for those in the $300-$450k range) are hard to come by.
In short work with a quality agent. They know the when the property you want is hot and you need to act fast and also when it is not and it is your time to negotiate hard.
Son Nguyen on June 28, 2007 3:01 pm
We find it is definitely a very slow process, it’s been over a year since I determined it was too uncertain to get into the market and yet it’s still like that now. Guess it’s real estate & not stock or online information.
kthor on June 28, 2007 4:54 pm
it’s going to be worth it if you wait to buy a home next year ..believe more of those subprime loans are due at the end of the year. Im already seeing banks agree to at least 20% or more discount on foreclosed homes in California.
http://www.theforeclosuresinfo.com
Paul Francis on June 29, 2007 10:06 am
quote “it’s going to be worth it if you wait to buy a home next year” end quote
This really depends on what market you are in. All real estate is local and in our particular area (Barrington) some new home prices have actually increased in the past couple of months. We also have a very high percentage of homes that are owner occupied (Over 90%) with low debt to equity ratios which is also an important fundamental to consider. If you want to rent in Barrington, rents can be just as high if not higher then obtaining a mortgage.
In markets fueled by speculators that saw high appreciation rates in the past couple of years, waiting a year or two may certainly be your best option even though we are seeing some great deals pop up in Las Vegas by sellers who need to sell. We are licensed in both Illinois and Nevada — what applies to one market certainly does not apply to the other.