Comments Off | Monday, October 3, 2011
Many people are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you’re smart enough to see the opportunity presented in the present economy, you might be in for the home-buying opportunity of a lifetime.
For one, you can take advantage of the ‘buying power’ you had in today’s market by negotiating for seller credits, lower closing costs, repairs and even seller financing.
People can get a lot of what they need and almost all of what they want today, However, when the market starts improving, your negotiating power will start to diminish. Would you rather compete in a buyer’s market or wait until it becomes a sellers market and face multiple buyers and major disappointments. ??
If you’re qualified to buy a home now, and the purchase makes sense for your situation, and you’re prepared to live in that home for at least five years then now is the time to buy.
Not all markets have experienced huge drops, however, so it’s wise to take a look at how far prices have fallen in your area.
In most of the cities where home values experienced a double dip after the expiration of the homebuyer’s tax credit in mid-2010, median prices won’t fall below their 2009 or 2010 lows, says David Stiff, Fiserv’s chief economist. These metropolitan areas include San Francisco, San Jose, San Diego and Washington, D.C. But in areas with a lingering oversupply of homes for sale, Fiserv forecasts a decline of 10 percent or more in the median home price (for the year ending March 31, 2012). These metropolitan areas include Riverside–San Bernardino, Calif.; Las Vegas; and Miami.
