Why NOW is the right time to buy!
If you are thinking of buying a home, NOW is the time. There are many reasons but I will tell you about a few great reasons to buy at this time.
Inventory. There is currently a great inventory of homes on the market. As we pass the peak season many homes have been reduced in price and there are some great values out there. After the new year properties generally are listed at a higher price in anticipation of the new selling season .
Competition. At this time of year there are fewer buyers looking to buy. This means there is less competition for the home you may wish to purchase. In the Spring, there will be a new group of buyers ready, willing and able to buy. That being said I just reduced the price on one of my listings and we received 4 offers. The activity suggests that there are buyers out there ready to buy a house that is affordably priced.
Interest Rates. There are some of the lowest interest rates that we have ever experienced for mortgages that are available. The combination of low rates and lower prices mean you can qualify for much more house now than when rates and prices rise. If you are on the edge of ratios to qualify for a mortgage a rise in interest rate could mean the difference from being qualified to buy or not being approved.
Negotiating. At a quiet time of year with fewer showings of homes it often means you can agree with a seller on a better price and terms. Some sellers may also be willing to move back the closing to a later date in order to sell their current home and move on with their plans.
Choices. At this time of year you may have more flexibility in the options available. If you don’t want to move into a home until the Spring or Summer you could consider building a new home and getting the design, finishes and energy efficiency that you desire in a house. Waiting until Spring may mean that you will have to wait longer for a new home and the home will not be completed in time for you to position your current home for sale at the peak selling season.
If you have decided to buy be READY to buy. This means talking to a mortgage company and getting a pre-approved In order to have a strong offer you need to have a pre approval letter from a bank. This will tell the Sellers that you are qualified and ready, willing and able to purchase. If you need a gift for cash down at closing be sure you speak to the mortgage consultant on how to document and the timing of such a gift so that it can be applied to down payment and / or closing costs. Know what types of loans you are qualified. Some may have better options or work better for you depending on your resources. Be sure you have discussed the sequence and timing of events that occur with a home purchase. From the time the offer is made, through acceptance and contingencies you should be well informed about the sequence and time frame. Expect that a normal closing will take about 6 weeks. You can move into your new home after your close. You may need to adjust your time frame on the offer based on when you need to be living in the house.
The smoothest home purchases happen when the buyer is knowledgeable about the process and has an experienced professional who can assist them every step of the way. Before you start looking you should set up a meeting with an experienced Realtor to discuss your needs and the process. Home ownership is one of the most rewarding experiences life offers us.