Buyer/Agent Q & A

Buyer’s QuestionsàAgent’s Answers

Q: “If it is possible that prices will continue to fall, why should I buy now and not wait?”

There are two sides to consider when you are thinking about home buying. One side is the price; the more important side is the cost. Thinking about the price of a home plus the interest rate of your mortgage, a buyer such as yourself must think of your personal monthly payments. Riding the market out while waiting for prices to reach their low point will allow interest rates increase to the point where they can cost more over the life of the mortgage. “Fannie Mae, Freddie Mac, the National Association of Realtors, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters…” (www.REALTOR.org/realtormag) My recommendation would be to meet with your personal mortgage professional to see the details in how an increased interest rate with cost you based on the size of your loan.

Q: “When will I begin to see appreciation if I buy now?”

Local pricing trends will tell you what you need to know. Due to the market-to-market variations in appreciation, no one answer can be given. However, national indicators are expecting values to rise this year. 2010 Home Price Expectation Survey tells us that experts foresee prices will increase starting the second half of 2011 appreciating more than 10% between now and 2015.

Q: “Does buying really make better sense than renting?”

Why did you begin to think about buying your home? According to Fannie Mae National Housing Survey, the four main reasons a person goes from renting to buying are; to have a place to raise and educate their children, safety, more living space, and control over that space. None of these have to do with finance. You and your family should benefit from buying a home, not only your pocketbook. That is something that needs to be addressed before anything else. To begin your home search in the Bozeman Montana area, click here.