I saw a television commercial with a family sitting on a bench in front of a home for sale, just staring at the house from a distance. The point of the ad was that these people were told to wait before buying a home, so that’s literally what they did.
Sadly, far too many potential buyers are doing this same thing. They’ve been listening to naysayers who are paralyzing buyers with fear. In reality, now is the best time to buy a home, and here’s why.
Reason #1: You can get a tax credit if you buy before April 30, 2010.
Whether you are a first-time or repeat homebuyer, the government is offering an incentive to buy a home. First-time homebuyers can get an $8,000 federal tax credit and repeat buyers can get up to $6,500. Get more information here.
Reason #2: You can get more house for the money.
Home prices have been dropping for some time, although the numbers are starting to rebound. You can only really tell you’ve hit bottom when you start to move back up, and we’re seeing that happen. Based on current studies, like the Standard & Poor/Case-Schiller Home Price Indices, home prices are now improving, so the sooner you act, the better the value.
Reason #3: Mortgage rates are in your favor.
Not only can you get a great value on the purchase of a home right now, you can finance it for an incredibly low rate. So your dream home is even more affordable!
Reason #4: You have more bargaining power.
Sellers are very motivated and may be willing to make more concessions in order to court a serious, qualified buyer. If you’re looking to have your closing costs covered, you have more leverage now, when the market is still in a regrowth phase.
Reason #5: Lenders want qualified buyers.
Yes, the reins have been tightened by some mortgage lenders, but not all. Lenders will never make any returns if they don’t invest in buyers. You might need to work a little harder to find a cooperative lender, but the payback is that you reap the rewards of the first four reasons listed here. Need help finding a lender? I can help.
Stop waiting. Start shopping!