Should you buy now or wait until you have 20% down?

Real Estate Agent with Smart Green Realty

I sat next to a bright, young contractor from California at lunch last week. He lamented that he and his wife might never be able to afford a home in the Bay Area where he lived. They were working on saving 20% for a down payment.

You know what I said: "There has never been a better time to buy!" I told him to talk to his lender about FHA financing where he would only need 3.5% down. Interest rates are rising already...up at least half a point since October. None of us have many buyers. Most sellers are giving serious consideration to offers. I live in Philadelphia so I wasn't looking for a deal. I just gave him my urging that he should not wait to buy. When lunch was over I said, "Someday you'll remember this lunch and thank me!" What I want to know is How many other ready, willing and able buyers are still sitting on their wallets?

Comments (1)

Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

I remember when my daughter was in high school, there were a bunch of people trying to convince their kids they should pay cash for a house. Well, even now with the prices lower than they were then, none of those kids can buy a house with cash, 10 years after graduation. I hope their parents aren't still telling them trying to save up for a house while paying rent is a good idea!

Dec 04, 2010 10:47 AM