Why Should You Buy a Home Today?

Let’s be honest, we are in a down economy. That is pretty evident to most people.

There is good and bad regarding this. Let’s look at the bad first, who doesn’t want to save the best for last? The bad is that we are in a down economy, it is not a hoax from the government, it is not a fallacy put on by media outlets, it is true.

The housing economy has been especially hurt by this, who knows the term “the housing bubble burst,” there is no better analogy for this. Home prices were soaring; people could get a loan for something that was twice their price range it seemed. And when the market went down, the housing market plummeted. If you didn’t notice it, consider yourself lucky! It was bad to be a home owner at this time, it was even worse to try to be a Realtor at this time.

With bad, there must be good too. Right? I am happy to say there is. With the housing market in a rut, the housing prices have decreased as well. You can get that kitchen with the granite counters, surround sound in the yard, and luxury amenities for a lower price right now. Sounds great? Of course it does, but you have to have the cash and assets to prove you won’t default on the loan. Because the banks made all the loans that no one could afford, they are much stricter on lending nowadays. You passed that bump? Perfect, real estate is in your reach, and you are going to get a great deal on it.

There are really two types of buyers, when it comes down to it. The buyer that needs to sell their home and is looking to upgrade, downgrade, move next door, move upstairs, I think you get the idea. They have property that they are hoping to sell before they purchase a new property. No one wants a bridge-loan (where you have a mortgage on two properties at one time, not the ideal at all), or two homes (unless they are buying vacation property, all the power to you if you are!).

And then there is the first-time home buyer. If you are looking to sell your home to move into a new one, don’t be afraid because it is a down market. Perhaps you will be selling your home for less than you want to, but on the positive you are going to be purchasing a home for less as well. First-time home buyers are my favorite to work with, they are ecstatic about their first home, and it is such a pleasure to work with them to make their dreams come true of turning the key to their first place to call their own. Oops, went on a tangent of the perks of being a Realtor!

Back to those buyers, if you are young, have a good job, and are renting, think about purchasing. Rates are pretty good right now, and prices are low. The nice thing about real estate is that we are coming up out of a recession. The key word in that last sentence is “up,” the value of what you buy will go up! This is great for you in so many ways.

If you rent, you are paying for someone else’s property, you are not building equity at all. My favorite part of rentals is that your mortgage payment is often near the per month rental. Remember most have a mortgage for a 30-year loan period so that is why it seems so close. But when you pay a mortgage you are putting money towards YOUR OWN HOME!

So if you are that recent college grad, that new hire, that student that is itching to move out and have your “freedom,” my advice is to WAIT if you can!! Live with Mom and Dad for that one extra year, and save up some cash for your down payment for YOUR own home!

 So, why should you buy now? Rates are low and prices are low, all across the board. Homes are selling for less, and people are buying for less.

I want to know what you all think! Leave a comment and suggestions on what real estate subjects you'd like to hear more about on Avon Patch.

Nolan Andersky

Nolan.Andersky@Gmail.com

Fact: If you are looking to BUY a home, us a REALTOR. The seller of the home you buy covers your realtor cost…so why not use a realtor?