When is the best time to buy a house? With many markets (including ours) reporting an abundance of homes for sale, and interest rates remaining at near 45-year historic lows, now might be one of the best times in recent history to buy. While today's real estate market does offer advantages to buyers, consumers still need to be savvy in order to get the best deal they can.
Following are some things that the professionals at Coldwell Banker Residential Brokerage think every homebuyer should keep in mind:
•· Don't Try to Time the Market: When home prices are lower, it is very tempting for potential buyers to try to wait as long as possible in the hopes that prices will decline even further. This strategy can be detrimental. Buyers should make offers once a home is priced at what the current market will bear. A professional sales associate can help you make an offer based upon the prices at which similar homes in the market are selling for. In a buyer's market, there are more opportunities for negotiations, but making an offer is the important first step. If you find a house you love, put your bid in and negotiate. Don't let another buyer to make an offer on the home you love.
•· Take Your Time...To A Degree: The increased supply of homes on the market gives homebuyers a great opportunity to evaluate a variety of properties. However, this does not mean that homebuyers should procrastinate. Ask your sales associate how long properly priced homes are staying on the market before going into the contract stage. This information will help you gauge the time you may have to choose a home. You may find the change in days on the market from last year is just a few days longer. Make sure your sales associate provides you a daily update on new listings so you do not miss your dream home.
•· Homes Are Selling: Don't think you are the only one looking for a new home. Properly priced homes are selling. Studies such as the recent Coldwell Banker® Homeownership in America Index revealed that the majority of people move based on lifestyle changes, such as new job / promotion, marriage, divorce or family expansion. These lifestyle changes remain constant in good or bad markets.
•· Watch the Mortgage Rates: While interest rates have risen a little over the past two years, they are still at historically low rates; and prices have fallen slightly. This combination makes now a terrific time to buy a home. Experts predict that rates will probably inch upwards throughout the year - and as the market begins to even out, prices will start to rise. Be sure to watch the rates and do your math carefully, because changes in mortgage rates are not necessarily cost prohibitive.
•· Negotiate on the Incentives: Sellers eager to move their homes may offer you a variety of incentives such as cars, trips, and other deal sweeteners. If you accept an incentive, make sure it makes sense for you. Instead of a trip, you may opt to have the seller renovate the master bathroom or install new flooring. Of course, you can always ask the seller to just deduct that amount from the list price. Let your Coldwell Banker agent be your guide. As your Buyer's Agent, their job is to guide you through all negotiations and trade-offs to secure for you the best deal possible.
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