When is the best time to buy a house? With many markets reporting an abundance of homes for sale, and interest rates remaining at near historic lows, now might be one of the best times in recent memory. 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 I feel 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 because when there is high inventory, smart sellers price their homes properly – not according to past sales but according to current conditions – so their homes will sell in a timely fashion. Once a home is priced to what the current market will bear, buyers will make offers.
Shop Around. But Don’t Wait Too Long. The National Association of REALTORS reports that, on average, homes stay on the market for 7.5 months. The increased inventory gives homebuyers a great opportunity to compare homes that meet their needs. However, this does not mean that homebuyers should procrastinate. If you find a house you love, put in your bid and negotiate. Don’t provide an opportunity for another buyer to make an offer.
Watch Mortgage Rates. Studies such as the 2006 Coldwell Banker® Homeownership in America Index revealed that that majority of people move based on lifestyle changes such as new job, marriage, divorce or family expansion. Pay attention to the mortgage rates and recognize that buying a new house will likely result in a change in mortgage rates. How much? A monthly payment of a 30-year fixed 5.875 mortgage rate on a 300,000 loan is $1,774.61. The monthly payment at today’s 6.381 rate is $1,872.79, representing a $98.18 increase.
Negotiate on the Incentives.Sellers eager to move their homes may offer you a variety of incentives such as cars, trips, and even credit card bill payment. If you accept an incentive, make sure it makes sense for you. Instead of having your bills paid, you may opt to have the seller renovate the master bathroom or install new flooring. Of course, you can always ask the seller to simply deduct the amount in question from the list price.
Here are some more tips and info to keep in mind during your quest for the perfect home:
If you have to resell soon, don't buy an unusual home.
Even if the quality of a school district doesn'' matter to you now, remember it might someday to another buyer.
Expect lower maintenance costs with a brand-new home.
Never tell a sellers broker how much you'll raise your offer for a particular house.
When interest rates are low opt for a fixed mortgage.
Pay attention to floor plans. Changing layouts of rooms later, can be costly.
You can deduct on that years tax return points paid by either party on the purchase of your own residence.
If the present owner has a title insurance policy less than 3 years old, you could have substantial savings by buying a reissue of that policy rather than a completely new one.
Pay attention to the original listing date of the homes you inspect; Sellers tend to be more flexible in the price the longer the home is on the market.
A house that's sited to take advantage of the sun, the wind and the typography costs less to heat and cool and can save thousands of dollars over the years in utility bills.
Buying a house whose style is uniquely individual will probably minimize rather than maximize its resale value because the house will appeal to a somewhat more limited number of potential buyers.
If you think you may need more space in the near future, be sure the house and lot will allow for expansion.
Redoing a kitchen is likely to be expensive. So be sure of what you need and want before you buy.
Don't buy a house with foundation problems. Although most foundation problems can be corrected, repair work is usually expensive.
Before you buy a house that may have a wet basement problem,get a good unbiased diagnosis from a professional with moisture control experience. The solution could be costly.
A roof that complements the style of a home and is carefully maintained adds to the home's visual appeal and its resale value.
A light-colored roof reflects heat and is best in areas where air-conditioning is the greater energy user. In colder weather climates, a dark roof is preferable because it absorbs more heat. In temperate climates, a middle-range shade is best.
The three most popular wall choices are brick, wood siding and stucco. About half of all home shoppers prefer brick for exterior walls; about one-third prefer wood siding; and about one-fifth prefer stucco.
Wood floors suggest warmth, quality and good taste and are an asset when it comes time to sell a house.
Most home shoppers prefer a combination of ceramic tile and vinyl wallpaper as a covering for bathroom walls, creating a positive effect on the house's resale value. Ceramic tile is usually installed wherever water comes in contact with the wall.
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