It's a Great Time for Buyers!
Top Reasons to Buy a Home Now!

It's no secret that the housing market finally, after a long while, belongs to the buyer. Home sales and prices sagged in 2006 and 2007. According to David Lereah, chief economist for the National Association of Realtors, buyers have a "window of opportunity" in 2008 to take advantage of lower mortgage interest rates and seller flexibility.
 

A cooling housing market gives buyers, especially first-time buyers, more opportunities to snatch up a good deal. Here are the Top Reasons to consider Buying a Home:

1. Selection, selection, selection. As of January 1, 2008 - there are about 12,601 resale homes on the market in Baltimore, Cecil and Harford counties (Maryland) alone - in these 3 counties alone the inventory equates to almost 25% of the active properties in the entire state of Maryland. Throughout Maryland there are 52,765 active!  Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 2,500 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.

2. No Bidding Wars. In 2005 - 2006 there was a 'feeding frenzy' that existed. Buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is little to no competitive bidding in this buyer's market.

3. Make a reasonable offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.

4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.

5. Contingencies are welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005-2006 many buyers waived these contingencies in order gain an advantage with multiple offers.

6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.

7. Repair requests are accepted. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.

8. Deals for everyone. It is estimated that one third of all sales in 2005-2006 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to PA and the outer parts of the state in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.

10. Real Financing is available. The zero down, no doc, adjustable, and high interest sub-prime loans are gone. Fixed rates  and low interest are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!
    
    

If you find the right house at the right price, Buy It!

If you're serious about buying a house, you have to decide whether you will actively shop and then negotiate a fair deal, or if you'll just passively browse houses, hoping to stumble on a steal.

* Reported by National Association of Realtors and Metropolitan Regional Information Systems