How to Know When it’s the BEST Time to Buy

It's All Almost Always About the Market

The market conditions normally play a mammoth part when deciding to buy a house. Keep in mind that the housing market values vary widely from region to region. For example, the Florida market has seen dramatic increases in home values; where Ohio has seen their real estate prices go into undesirable terrain in the last year.

Stay away from buying high and selling low - if your market has gone soft or has already hit its peak and then is heading south, you may want to hold off on your purchase.

There is a magazine called Smart Money that has generated a worksheet that will compare the costs of renting vs. buying by using market appreciation calculations to conclude when you will come out ahead. By entering in the price, down payment, your income bracket, interest rate, and the current market appreciation rates, the worksheet will breakdown what you stand to achieve.

It’s About Your Current Situation

There are three main reasons that people will file for bankruptcy: change of job status, divorce, or unexpected health expenses. If you are facing any of these encounters and don't have any financial cushion, then this might adversely affect your capability to pay a mortgage. Those “BIG life” happenings define your inclination to buy at this moment or to hold out for a little more financial stability.

The “Tell-Tale Signs” that you should wait to buy:

·     Are you planning to move within the next five years?

·     Are children in your immediate future?

·     Are you changing jobs?

·     Have you recently filed for bankruptcy or have a low credit score (below 650)?

The Future of your Finances

Apart from life events playing into your choice, getting your finances in order before you begin your search for that perfect home is key. Even though there are numerous programs accessible to buyers with a “low-or-no down payment,” if you find your debts growing gradually and you don't anticipate an increase in your income, unfortunately you are situating yourself in greater financial risk if you were to take on a mortgage.

On the Other Hand…

If you are ready to buy a home that may need a little bit of work and, over a period of time, you can have enough money to get it done, your home possibly will increase in value faster, ultimately strengthening your financial position. If you are ok with taking on a roommate or renter, you could also soften the overhead of a mortgage. Buying a home can be risky, and it's worth taking the time to ask yourself the tough questions about what you're willing to do to look after yourself from getting in over your head.

How to Get Started

If you’re ready to get the process going, take your time….here’s where to start:

1.       Go to open houses – find out what’s out there

2.       Get Pre-Approved by a mortgage broker

3.       Interview Real Estate agents

4.       Check to see if any repairs to your credit score need to be made

5.       Use sites like www.Zillow.com or www.Homes.com to review neighborhoods and much more!

“Stop Dreaming – Start Moving”® with Team 292-SOLD

925-292-SOLD (7653) // www.292SOLD.com