10 Reasons to by NOW!
1) Interest rates are at an all time low: the no doc, adjustable sub-prime mortgages are gone. Fixed rates are back. FHA financing, first time home buyer programs, VA loans, conventional loans still give you plenty of options.
2) Selection: Homes, townhomes, condos, and new construction to choose from as well as building sites.
3) Bidding wars are less likely: At the peak of the market buyers often had to bid properties up substantially from the listing price. There were escalation clauses where buyers outbid other offers. Buyers often did not get the home they were bidding on, due to the feeding frenzy taking place.
4) You can make an offer: A few years ago when you made an offer, the question was how high above the list price could the buyer reach in order to be the best offer on the table. Today the average selling price verses the list price ratio is about 96.5%.
5) Due diligence: In the frenzied real estate market of the last few years, many buyers waived inspection contingencies and other advantageous inspections in order to gain an advantage when multiple offers were being considered by the seller.
6) Repair requests: After a buyer completes a home inspection, they are allowed to submit a repair list to the seller. In the past a seller might insist the home be sold "as is" with very little concessions. Understanding difficulty with financing homes in today's market has meant that sellers are more willing to address inspection issues.
7) New specs: In certain areas, some builders with excess inventory are willing to include extras and make concessions that previously they were unwilling to do in a high demand market.
8) Fewer investors: A good portion of the increased demand for housing came from investors who got into the market to buy homes for rental purposes or to fix them up for quick resale. Due to the changes in mortgage loans, many investors are no longer in the market to compete with the "owner occupied buyer" of a home.
9) Equity and appreciation: Even after the burst of the housing bubble, real estate is still considered one of the safest investments you can make. It is an asset that you own and will likely appreciate in value - even in the areas where housing is still recovering. After all, there's no place like home!
10) Tax advantage: Why throw money away month after month on rent? When you own your own home you are allowed to itemize deductions on your tax return such as interest payments and taxes. This may end up lowering the amount of income taxes you pay each year - please check with your accountant. Spend the money on yourself instead!
