Is Now the Right Time to Buy or Sell a Home?
With these difficult economic times, we’re all facing challenges that we hoped we’d never have to face. And with today’s housing market in such a state of flux, we’re all more than a little concerned. Will President Obama’s plan to save our country from financial ruin trickle down to us, the common home owner, or will we be the next casualties?
Our largest investment has gone from being a source of pride to a source of fear. The trickle-down of lay-off’s, down-sizing and businesses closing has us all wondering if we’re next. Will we be able to continue to make our mortgage payments and keep our home, or should we sell and hope that the market will gives us a fair price?
Knowing when to buy a home is as important as knowing when to sell a home. Traditionally, we could determine this factor simply by the season. Selling homes in the late spring and early summer was the best time to buy a house. Actually, it was also the best time to sell a house. Likewise, buying a house in the dead of winter, often takes a little more oomph…or maybe settling for less than what your buck could normally get.
However, with that being said, there are a few areas that you should determine before taking the big leap of faith in buying a house in today’s market.
- Can you realistically afford to buy a house?
- Are you certain that your position is stable within your company?
- What are your short and long term goals for a house?
- Will you qualify for the new mortgage guidelines that the new administration is proposing?
If after answering the above questions honestly, you are comfortable with the thought of buying a home a home, your first step should be to find out your credit score and what you qualify for. Secondly, find a reputable real estate agent to assist you in locating the type of home you want to buy and the type of neighborhood in which you wish to live.
The dilemma of when to sell a home can be equally distressing. First of all, the Seattle real estate market is not what it used to be. Over the last six years, the Seattle area has seen in influx of home sales. Now while some of these homes went for fair market value, a larger number were sold with over-inflated prices which now reflect as a loss in today’s market. What was once valued as a $300,000 home may very well be worth far less…and that hurts the homeowner’s bottom line.
Bottom line for potential home buyers:
It may be the best time ever to purchase a new home. Interest rates are still at a historic low and new government plans to assist first time home buyers are springing up even as this article is being written. Also, there are many home owners who are now willing to negotiate price, terms and perks.
Bottom line for potential home sellers:
Today’s market is tough. You’re in competition to both keep your house or to potentially take a loss on it in today’s market. However, a financial loss by selling for less than what you desire can be far better than losing your house in the long run.
A word to the wise: contact a mortgage specialist and pick their brain regarding your specific situation on the the best and worst times to buy and sell a house . And remember, great deals are a matter of timing and your specific situation.