Friday, January 09, 2009
Is 2009 The Year To Buy A New Home
Is 2009 the Year To Purchase A Home?
Frank J. Helderle
As a buyer in 2009 the decision lays entirely in your court. With low interest rates, an over supply of homes for sale and the lower prices 2009 is a great time to purchase a new home, with a few items to consider;
Buying Too Aggressively So you’ve located a few houses you’re interested in, make sure it’s something you can easily afford. Everything you read today about the economy tells us that our current recession will last longer than a year or so and that unemployment could hit over 8% which means trying to stretch your income just won’t work. Most lenders will tell you how much of a home you can afford, but by buying a home that costs 50% of your take home pay is just inviting problems. Consider what happens if you get laid off or your company shuts down? It can happen, so buy conservatively.
Purchasing A Foreclosure Yes a foreclosure can be a real bargain, with deep discounts, these properties can come with a great deal of baggage. After a home sits vacant for months or years things begin to deteriorate, such as no water running through the stacks, dishwasher pumps tend to dry out, carpet and vinyl begin to get loose when the house has no heat or cooling. Always know what you’re getting into. Before you begin looking at foreclosures hire an expereienced real estate agent and a certified building inspector. Make sure all utilities are on, even if you have to arrange for them to be turned on..By spending a few dollars in the beginning will save you much more in the long run.
Search For The Best Deal Home prices are expected to continue to fall most of 2009, those people considering buying a home are in the driver’s seat and should be looking for the very best deal. Since it is such a buyers market look for the deal and low ball the offer, you never know, you may get lucky. While low balling is common in today’s market don’t go overboard. Making an insulting low offer may upset the seller which may result in any offer you make on the property unacceptable
Understand The Local Market It’s really easy to listen to all the doom and gloom about the Real Estate market but savvy buyers need to be paying attention to the market area they are considering making a purchase. What’s happening in one area may be the total opposite in another. Remember, an individual market is not the same as a national market. Again hiring an experience local Real Estate Agent will insure you’re well educated about the market you’re shopping.
Buy For The Long Term As home prices continue to decline 2009 will not be the year to make a return on your investment. Actually your new home may continue to loose value throughout 2009. But, eventually home prices will rebound. Any home you purchase in 2009 you should plan on living in for at least 3 years
2009 is the year to purchase a new home if you know where to look, how to look and when to look. Contact The H Team today to begin looking for your new home