To Buy or Not To Buy!

What a market we’re in! Money’s cheap and houses are a plenty. If it was 2005, we would be jumping for joy! So…what is different now than 2005?

For starters, people are afraid of buying a house thinking that it will drop in value some 30-40% in the next 6 months. Just like the stock market at times, the real estate market can be significantly driven by emotion and media hype. Remember when tech stocks where being traded by anybody who could get their hands on them? Well, for the last 9 months, we’ve seen horror stories about people losing their homes to foreclosure and adjustable rate mortgages going through the roof. The media has turned this into what would seem to be the end of the world. Others comment on how it is merely a common denominator of people that shouldn’t have gotten into these houses in the first place. The issue was that people were being told that they COULD afford these houses and that they DID deserve to live the “dream”. It was kind of the same logic as credit card debt, enjoy what you want NOW, and pay later. Later, unfortunately came sooner than expected.

The truth of the matter is that if you are ready (financially and mentally) to buy a home, now is a great time! If you look at it over the long term, no matter when you buy a home, you are always prone to some kind of market changes.

So what do you do if you want to live the dream and settle down in a home for your family?

Look at the long term. What are your needs for a home immediately and in the next 10 years?

Get prepared financially. If you have money for a down payment, speak to a mortgage specialist.
Save money for a down payment so that you can “jump” on that great deal when it comes around.

Check to see if you qualify for any special first time buyer programs. Your agent can also help with this process.

Consult a professional real estate agent, preferably a REALTOR® to be on the look out for the right property for you and your family.

Be prepared with ideas on location, size and most importantly price that you can afford.

Jacen Crehan is a REALTOR at CENTURY 21 Adams & Barnes. To learn more about Jacen, visit him on line at AskJacen.com, YourMonroviaTeam.com or call 626.674.3514.