Is this the right time for you to be buying a home considering the fact that this is a down market? This is a great concern for many prospective new home buyers, and there are a few factors that you should consider before you commit to buying a new home.
For most people purchasing real estate in a down or stagnant market is a good idea. However, you need to figure out a strategy and feasibility study before making any investment decision.
For the prudent investor the more information you have, the better the decision outcome for your home purchase plan. For some good advice on buying during a depressed housing market, this article has some crucial hints. When considering buying a new home in a "buyer's market", here are a few more things that should be considered.
- Figure out is how much money you can save by selling your current home in order to look for another in an area that has a down market. With proper research, and even using the help of a real estate agent, you can easily come up with a number of options. A real estate agent understands the markets and can help you make this difficult task quite easy. An agent will also be able to advise you on whether it is a good idea to buy a new house or keep the current one given all the variables.
- Secondly, consider the prevailing interest rates and the current movement trends. If interest rates are heading towards an all time low, then it is a good idea to prepare to purchase when they hit the bottom. This will end up saving you money in the long run. Buy a house when the interest rates are low if at all possible.
- The location of the home is another important factor to consider. You may feel reluctant to relocate, but if the location of the home is in a down market is worse than in your current location, there is a trade off to consider obviosly. Generally speaking, neighborhoods do not change so much that a great deal now means a big profit later. Consider the area with close scrutiny to avoid the pitfalls there.
- Get a professional home inspector to go over the house and ensure that it is in a good habitable condition. If you purchase a house that will start requiring serious repairs, then it may end up costing you ore in the long run. The few hundred you spend paying for an inspection, could save you tens of thousands.
- Do not forget to go over the legal aspects of the purchase. Get a real estate attorney to ensure that you are in compliance with the laws associated with the purchase of the home, even in a down market. He can help you negotiate with motivated sellers so that you do not end up looking like you took advantage of their situation, from a legal stand point, in order to buy the house at a low price.
There are more factors that you should consider when buying a home in a down market, but these are the most basic. Buying a new home in during such economic times, even in a bullish buyer market, should be approached carefully and meticulously. Buyers can get a very good deal in this market, even gaining entry to houses they may not have dreamed of buying, but there are stumbling blocks as well. Do you research and be prudent.
A buyer's market does not mean "buyer beware" - but there is reason for concern
For more detailed information about how your best moves toward homeownership, consult the HUD site here, CNN Money, and the home buying tips section of Century 21. Your local real estate agent index will also render great resources to assist you.
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