The Time To Buy Is Now

(Playing the real estate game can prove to be very rewarding, yet is very risky.)

As countless numbers of investors or property flippers can attest, if you do not buy or sell at the right time and wait too long, you may hesitate yourself out of several thousands of dollars and instead create a long-lasting headache that is your constant reminder of what you should have done.

This is an important example that should be applied to today’s real estate market. While many people got stuck with an extra property or two after the housing boom ended last year, the same may happen in a different capacity for prospective buyers over the next couple of months.

Buyers have to be careful not to wait too long before pulling the trigger to buy. M. Anthony Carr exploits the possibility of regretting waiting too long, in his article, “Waiting For the Bottom That May Have Already Hit,” which was published November 24, 2006 in Realty Times.

“I've been getting asked this question now more than ever: ‘Is now a good time to buy a house?’ Many buyers have been waiting for the bottom of the real estate market to hit before getting off the fence to make that next real estate purchase.”

Since it has indeed been deemed a buyer’s market by every nationally accredited real estate association, then it is a good time to buy. Hopefully, though, it is not too late to get what you were waiting for.

Sellers have finally realized that there is nothing they can do about the current market except lower prices in order to generate a sale. As prices have lowered, sales have begun to pick up again, including an increase of over 5 percent in new home sales in October 2006.

There really is no telling how long the lucrative buyer’s market will last but when it ends, it will most likely end abruptly, with prices and sales increasing every month from a particular date.

Other than the fear of watching the greatest home buying opportunity pass by while you sit and wait for another $10,000 price decrease, there are a couple other reasons to take some action and buy now.

“Money is cheap. We have historically low interest rates. Currently, for most borrowers, they can nab a mortgage in the 6-ish percentage range. Depending on the points you want to pay (and for those with good credit), loan rates are from 6.75 and down.”

Since the economy is good and once homes begin to sell more, interest rates will probably rise again. Buying now and saving up to a full percent on your mortgage rate you end up being worth several thousand dollars.

Inventory is high as well which means that you have the power of choice and negotiation. “For sellers who are set to take opportunity by the horns and get moving, the buyer can get thousands off the list price so the seller can turn around and do the same thing. Most sellers, in this market at least, can afford to take a $25,000 - $50,000 hit on the sales price because they'll be able to negotiate the same type deal on the backside of the transaction.”

Don’t be one of the people who have the means to buy but just waits for a bigger and better deal, only to have someone else take advantage of it.

The real estate market is unpredictable, so you do not know how long the buyer’s market will last. But what you do know is that there are great buying opportunities available, now.

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