Im ready to purchase a home now?

Im ready to purchase a home now - my realtor says buy now - my boss says wait for 4-6 months the buyers market, what should I do

Your boss is right your realtor want a sell desperately right now in these markets.

Many people have not yet realized their homes are just not going to bring the asking price. In a few more months reality will finally sink in and prices/accepted offers will be even lower.

Depends. The winter is a slow season. Traditionally that's when home prices go down. But this is not a traditional year for homes. Prices have dropped, and foreclosures are up. Right now home sales are really down. Look and see what is available now, or have your broker look for specifics. If you see something you really, really like, and it has been on the market more than 90 days, you have a good chance of getting a bargain and asking much less than what the seller wants. But be careful. Back in 2003 I was really trying to sell my home. I had it on the market for 4 months. I eventually took it off the market, refinanced for $350 less per month.

Remember, hindsight is 20-20.

Wait. The market is still swinging in the buyer's favor and the longer you wait the better chance of the rates doing a drop before the end of the year. Houses will always be there, it's the rates, down payment and long term forcast you need to look at.

Do research online about housing mortgages and financing, send for those Pueblo Colorado free brochures (they explain EVERYTHING very simply) and look around locally for those 'first time buyer' classes your city holds. The more informed you are, the better off you'll be.

I think your realtor probably knows a bit more about real estate than your boss.

If you have saved up a good chunck, and you have no debts, then go buy a house. Why would you wait?

There is a possibility that they are both right. However, it depends on your situation. Your boss is betting that home prices are going to continue to fall. Which they may depending on where you live and what pice range your looking in.

Your realtor may be swayed by the possibility of making a sale but they might also know more important details about your situation and the market.

So how can you know for sure? Here are a couple of questions to ask yourself and your realtor.

1) What has the market been like in the price range that you're looking in over the last 6 months? It's no longer enough to thing of the market overall. You need to know your specific range. That's because as financing has tightened up, it's increased and decreased the number of available buyers. As an example, in my market homes priced $120K-140K have more demand now than even the market high of 2005. Same with homes over $1 million. Still, your out of luck if your looking to sell over $417K (Jumbo loan limit) and under $600K. Ask your realtor "How many homes in ths price range are currently on the market and what's the estimated number of months supply? If the number of months supply is less than 4, you've got lots of competition for every house on the market. Start looking now and be prepared to pay close to the asking price. If the number is bigger than 12 the market is really soft. You'll have your pick of homes and a great barganing position. However, the market is likely to continue to soften.

2) How long do you plan to own the home? Home prices are likely to stay soft through the beginning of 2008. However, there is an overwhelming amount of evidence that shows there are a number of buyers listening to your bosses advice. (4 Million net jobs added in last 2 years, Apartment and home sharing increased, 2 million marriages, and 4 million babies born forcing people to buy bigger soon) We're likely to see them step into the market next summer when you'll all be competing for homes. Competition keeps prices high. The housing market is expected to normalize in 2009.

3) What kind of condition do you want or need the home to be in? As financing has tightened up so have the conditions under which lenders will lend money. If the house is NOT in good condition, you may find the bank doesn't want to lend you any money. In addition, it's gotten even harder to finance certain properties such as mobile or modular homes. These constraints are likely to continue.

4) What kind of financing are you in need of? There are several good programs that individuals can get to receive a lower interest rate, downpayment, etc. However, the conditions for these are also changing. (I've got a closing we had to shorten by 9 days because the financing program is ending). Want to buy over $417K? Unless you're paying cash you may have a hard time getting a loan. The government is working on expanding the loan limits but who knows when or if that will happen. Eligable for a regular conforming loan? Then you're mortage rates have actually been falling!

5) Need a home to meet specific needs or requirements? Builders have already started cutting back on new home starts. That's going to shrink the available inventory. If the estimated 2 million home buyers who are waiting on the sidelines step back into the market it may be difficult to locate a home that fits your needs.

Right now is the best time time buy a home. It's also a great time to be a renter. I'm trying to sell homes and I'm having the worst time trying to do it. The federal government just recently dropped the national avg. interest rate to .5% which helps new home buyers.

Email me at jc17as@yahoo.com and I will provide you with some good info. Where are you located and how much are you looking to put down? What does your fico look like? Is this first time purchase? Well some qualifying questions you may want to ask yourself before buying a home. And of course its a great time to buy right now. Email me.

Your realtor knows mortgage rates can't be predicted and that's what prices people out of houses more than a small upward tick in prices. Get pre-approved, try for a long-term rate lock (may cost a little $) with one time rate adjustment (in case they go down) and start looking for the perfect home. It may take a few months to find just what you're looking for. And don't discuss personal financial matters with your boss- unless he's also your parent.

Not all markets are the same, but since you did NOT tell us yours , we have no way of answering your question .
Some are actually rising . . .
But , "I'm ready" , means you have your prequal letter ,
Your 20% down based on the prequal and established a contact with a home inspector .

Since you are ready , start shopping now and when you find the one that meets your personall criteria ,
Go for it .
Else someone else might take the one you want .

>

Well ofcourse your realtor is telling you to buy now, he wants his 3% commision. The market right now is a buyers market, there is an excess of houses currently for sale. However since the summer season is the prime season to buy a house, finding a good deal will be slightly more difficult.

I say if you've done your research and know the market, the area you want to be in and how much your willing to pay then go for it. Just remember not to settle, your realtor will try to get you to by anything. Also plan on staying in your home for a minimum of 2 years in order to make a profit from selling it.

Good luck!

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