Real Estate - Is it a Good Time to Buy?

Everyone has heard about the housing market crash-it’s on the news, in your town and in your neighborhood. But, some good can come from it if you know what you’re doing. Right now may just be the best time for you to buy the house of your dreams. Here’s why it is the perfect time to invest in some real estate of your own (provided you are in a position to buy) and to get the best deal:

1. Supply and Demand

The market is flooded with real estate that has been foreclosed on, need to be sold quickly and then the homes for sale where people are trying to move. Whatever the reason, you, as the buyer, have the upper hand because there is so much competition.

All you have to do is drive through a neighborhood and count the “For Sale” signs and the foreclosure auction notices to see all the people competing for your business. If you are in a position to buy, you are also unique because there are fewer people needing to buy homes right now as well. So, the supply is large and demand is low-this translates into bargaining power.

2. Bargaining Power

Continuing with this train of thought, you can ask for whatever you want within reason and depending on how desperate the seller is to unload the real estate. You don’t want to be insulting, but you have so many choices you can hold out for the deal you want. Don’t be afraid to ask for a lower price, add-ons like appliances and other little features or no closing costs for you. Any and all of these are possible right now in this market.

3. Investment Opportunity

Whether you need a primary residence or just want to buy some investment property, this is a great time to shop. Real estate values have dropped dramatically in most states which means you can get homes for a steal. Once the market corrects itself, values should rise again (hopefully not to the overinflated amounts of old) and your chances of profiting on the purchase are great. Another bonus is that mortgage rates are fairly low right now.

4. Buyer Beware

While you can get great bargains right now, be careful about what you buy. Many foreclosed homes are in disrepair and will require some elbow grease on your part. Be sure you are willing to put in the effort on fixer-uppers. Pay close attention to the inspection report for the non-aesthetic issues that could cost you a lot in the long run.

Do some on-line research and see what is listed in your area. There are Web sites dedicated to foreclosures as well as normal listings. Talk to a real estate agent. She can tell you what the average selling price is in your area which gives you some bargaining room.

In the long run, real estate is a great investment, and if you are financially able, you should think about purchasing a new primary residence or a rental property. Because of the economic climate right now, you can get it for a steal and make a sound investment for the future.

Real Estate - Is it a Good Time to Buy?