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Real Estate Agent with Surterre Properties

 Since starting in real estate years ago I have come to conclusion that buying a home is one of the biggest decisions an individual can make. So it's understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don't purchase a property now wishing they had taken action sooner.

"Current market conditions have created a perfect storm of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike," said James M. Weichert, president and founder of Weichert, Realtors. "Those who have the means and the desire to buy now but don't, aren't likely to see such a great opportunity again anytime soon."

Specifically, Weichert offered three reasons why those who aren't under contract to purchase a new home by April 30, 2010 might regret it.

1. They won't receive a sizeable amount of money from Uncle Sam.

For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire soon. First-time buyers who aren't under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. They might not lock-in on the historically-low interest rates.

Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically-low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts.

If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan.

3. They might miss out on record home price affordability.

Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.

"There is no time to waste for anyone who wants to take advantage of this great buying opportunity. Particularly for those who have a home to sell first," added Weichert. "If you are prone to saying ‘what if' and wondering what could have been, you will thank yourself down the road for buying now."

 And thank you for making me Your Orange County Real Estate Connection

www.MichaelCarusoRealEstate.com

Best regards,

Michael Caruso, Broker ABR ABRM CRB CRS GREEN GRI

 2007 President, Orange County Association of Realtors (949) 753-7900

 

For more information, visit www.weichert.com.

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And thank you for making me Your Orange County Real Estate Connection.     

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Best regards,

Michael Caruso, Broker Associate ABR ABRM CLHMS CRB CRS GREEN GRI

Surterre Properties

Past President, Orange County Association of Realtors (949) 495-8600

 

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Comments (7)

Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Very good points, Michael.  It is a prime time to invest in real estate!

Mar 30, 2010 05:23 AM
John Pusa
Glendale, CA

Micheal - Thank you for sharing an informative and helpful blog.

John

Mar 30, 2010 05:43 AM
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Sharon and John,  Thank You for leaving a message, I really appreciate it. Have a successful day! 

Mar 30, 2010 08:21 AM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

Michael these are great points. If someone has been thinking about buying a home, there really won't be a better time because conditions just won't get much better than they are now!

Mar 30, 2010 12:36 PM
Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Michael: You are absolutely right. These are historic times for all of us.

Mar 30, 2010 03:09 PM
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

These are definitely essentials to consider.  Cherise

Mar 31, 2010 09:28 AM
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Christine, Matt and Cherise- I am glad you all agree and enjoyed this post! Have a great weekend!

Michael

Apr 02, 2010 07:16 AM