Signs That It is Time to Buy

The media and the daily news bombard us with tons of information on the current Real Estate market and the financing situation. If we listen to the news, one day the market is up, the next day is down; prices are stabilizing one day, and the next couple of weeks another wave of foreclosures is coming. For sellers and buyers this could be very confusing times. The mixed messages we hear every day are to blame. This could stall the market for sellers, and create fear for buyers, who can, want, to take the leap and become homeowners, but are afraid that they won't get the best deal, or that the property value decreases after they buy it. They are also afraid of being laid off from their jobs - as this is also a confusing issue in the news. So, how is a buyer sure that it is the right time to buy? The answer to this question has a personal side to it, but also an industry side to it as well.

While it is true that prices in most of the entire United States have hit rock bottom, the real estate market has slowed down, there is inventory, and sellers are competing with each other, while prices continue to be all over - sometimes making no sense at all - these conditions might actually benefit the buyer.

Prospective buyers must analyze their financial situation first, to make sure that they can afford a home. Each individual's situation is different, and it will require an honest view of his or her finances, as well as analyzing their job stability and employment prospect for the future. Once this is taken off the table, a prospective buyer can see more clear if they can afford to buy at this time.

This is one of the best times to buy a home for many reasons.

• There is a huge inventory of homes available.
• There are many desperate sellers willing to lower prices in order to sell. They are willing to negotiate features, offer packages, and many other advantages to sellers. Sellers know that they are competing with other sellers and that there are many attractive properties in the market now.
• Prices are low, and even getting lower in some areas.
• Mortgage rates are low as well. However, lenders are very careful and scrutinizing the process. Requirements are stricter than years ago.
• Buyers can pick and choose and even make some requests, which many times are granted by the sellers who want to get the property into their hands fast.
• Foreclosures and short sales are abundant.

If a buyer has had an honest approach to their current financial situation, and has determined that he/she can afford a home, then the next step should be to take advantage of the current Real Estate market conditions and get qualified for a loan. However, this is no time to buy to sell in five years and make a profit. Prices continue to be volatile and the market will take a long time to recover. This is a time to become a homeowner for a longer term. Finding a good agent that helps them navigate this confusing market should be next.

Firelight Highlands Ranch