One thing you can be sure of now is low interest rates. On average, a 15-year mortgage is just 3.78 %.
Also, RE/MAX chairman Dave Liniger predicts 2012 prices will stabilize, then rise again. Are you lucky enough to have some extra money?
Well remember, just because the market’s down, doesn’t mean you can pick a house and know it’s a good deal. Before you buy a home, think for a moment, ‘why on earth would anybody want to sell?’ Finding a motivated seller is a huge step to getting your dream deal.
Does the seller know of an oil rich area, and need to move pronto?
Is the seller on the run from the law?
Actually, it’s more likely they’re a lender, trying desperately to get rid of some bad news. 2011 saw 3.8 million foreclosures, a 28% increase since 2008. There’s even a further 250,000 to be resubmitted.
Dave Liniger also predicts that 50% of the 2012 market will be distressed properties, foreclosures and short sales. RealtyTrac reports that the average price of a foreclosure home is 27% below market value.
So please don’t just focus on whether it’s the right time to buy a home. Think whether you’re buying the right home, and from the right seller. And whether the market booms or slumps, it’s useful to have a qualified REALTOR® on your side.
A REALTOR® will use their extensive experience to tell you how good a deal is in relation to that area. How is that market likely to do in the future?
A REALTOR® also has access to the multiple listing system (MLS). It’s filled with exclusive information. Your REALTOR® gets immediate notification of when a new property is listed. Or what about the houses that have been stuck there for months? Is there someone who’s desperate for a half-decent offer? Use your REALTOR® to help root out the motivated sellers.
It seems now is a good time to buy. But there’s no need to rush such an important decision. Start by finding your ideal REALTOR®, perhaps online on sites like Sundaybell.com. Click here to see how Bob and Carly found theirs.