Home > Blogs > Peter Redmond Realtor > Peter Redmond's (peterredmond) Blog

When Is The Perfect Time To Buy?

By Peter Redmond Realtor

Real Estate Agent with BPO Homes DRE# 01350020

January 23, 2009 04:36 PM

I'd say it is now or never, because the market is actually loaded with a lot of excellent homes at great prices. One thing we must always remember in that in every decade we have a boom and bust cycle in Real Estate and in the Stock Market and the most prudent investors always buy when the market is low and sells when the market is high.

Which brings me to the most talked about subjects currently in the real estate industry the first is the lack of Financial Institutions willingness to lend & the second is Buyers waiting for the market to bottom out.

What I see most lenders doing is saying that they are still lending on the surface however they are making the criteria to qualify so stringent that most buyers are being turned off by their ever changing rules to get a loan. My advice is to get a good mortgage broker to assist you in finding out what the majority of lenders are looking for and become the perfect buyer. It may take a little extra time to search for special programs, collect tax returns, clean credit, save or get gifts for closing cost and/or down payments but it will be worth the trouble as the real estate market cycles back up in a few years.

As far as buying a home at the bottom of the market my opinion is that between now and the next few months the real estate market we will be hitting the bottom, but let's not try to time the market, because with the economic stimulus plans being put into place the market could take off anytime leaving us all saying I remember when the price of that house was ______ and I could have purchased it for_______? We all have and have heard too many of those stories.

So in conclusion if you can buy as a primary residence or invest in real estate now is the time to do it. A tip would be to expand your criteria by looking at the worst home in a nice area, with desirable schools and/or a duplex with a tenant in place.

"Sharing the good life"

Redmond Realty Group

Peter Redmond

Real Estate Consultant

CENTURY 21 Alpha Fine Homes & Estates

Direct: 408-313-5128

Fax: 408-493-4705

Email: Peter@PeterRedmond.com

Web: www.PeterRedmond.com

P.S. We are never too busy for any of your referrals!

Re-Blog

Comments(1)

Comment

Show All Comments Sort:

Rick Sergison

Keller Williams Real Estate Associates in the Toronto Area - Toronto, ON

Great post! I don't know how long your market has been down. Ours has just dropped over the past 4 -5 months. Here are two other points that I am making to folks thinking about waiting "because it's only going to get better."

1) Right now there are Sellers in our market who have been caught by the downturn and have no choice but to sell now at whatever price they can. They may have bought a new home months ago that is being built and ready soon but haven't sold their current home and were caught in the downturn. Those opportunities will not last forever and once they all get sold, the market will tend to even out or rebound slightly.

2) For people wanting to move up - if they have only owned their current home for a few years, they have to be careful to ensure that they maintain a positve equity position. Yes, they may be able to afford the move up later. Yes, the prices may fall more on the larger homes BUT if they don't have enough equity with their current house also declining - they may not have enough downpayment left after the mortgage principal and closing costs to BE ABLE to take advantage. If they can do it now, they should consider it. If they wait and get "equity locked" they may have to wait for years!

Jan 23, 2009 04:51 PM

When Is The Perfect Time To Buy?

Comments(1)

Peter Redmond Realtor

Service Areas

Recent Posts