Potential First-Time Homeowners Should Take Advantage of our Current Housing Market
Our current housing market, which is giving homeowners around the country financial headaches, is providing a grand opportunity to a certain class of potential buyers – first time homeowners. One man’s trash is another mans treasure is a saying that accurately reflects our current housing mess. Aside from those with a substantial amount of cash reserves, which allow them to take advantage of our down market, first-time home-buyers are finding their unique situations more than ideal.
Large Selection + Dropping Home Values + Low Interest Rates + Little Buying Competition = Happy Potential Homeowners
Take Your Pick
The tidal wave tsunamis of foreclosures and the down market has put an increasing number of homes on the market, but with no buyers, which gives potential homeowners an incredible selection of houses to choose from. First-time lookers are able to concentrate their efforts on homes they truly want. No longer are they feeling forced to make quick decisions that they could ultimately regret. Buyers are now able to coast into their closings 100 percent sure that they are making the correct decision, which is something that has no price tag.
Prices and Interest Rates are Down
In an attempt to help stimulate our economy and put more faith into our credit markets, the Federal Reserve has continually lowered interest rates in the previous months. This has left home-buyers with not only an increased selection to choose from with low price tags, but low interest rates that we could only dream about a couple years ago. If you consider all three of these variables, you can see why first-time home owners should be excited – nearly everything they could wish for is the reality our markets currently provide.
In the Drivers Seat
Low home prices, low rates, a large selection, and little buyer competition offer first-time home owners the chance to drive a potential sale in their favor. A good example of this is demanding the seller to pay for various cost associated with buying, like closing costs. Closing costs are a major hurdle for fist-time homeowners to cross because of the substantial amount of money needed to put down for decent mortgage rates or for much needed immediate house rehab, all of which could potentially leave no money for closing costs, which can be a real deal breaker. With little home buying competition, the buyer can demand that these costs be a burden on the seller, as well as other costs like home inspections and appraisals.
I encourage fist-time buyers to pull the trigger and take advantage of our current credit crisis, after all, the ultimate goal is to buy low and sell high. $
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Comments
Great post and it (almost) never a bad idea to buy when things don’t look so positive (ie don’t buy high).
I hate to be whiney but can you increase or change your font? A bit hard to read…
Mike
@ Four Pillars: Is it really that hard to read? I hadn’t ever noticed, I wonder if others are having the same trouble…I will definitely look into it. Have you tried holding Ctrl + scrolling the mouse wheel?
Ben, I totally agree with Four Pillars about the text being a bit on the small side. The article is great!! I myself am a newlywed 24 y/o female my husband and I live in the Metro DC area in Northern VA which if you are familiar with is a crazy expensive area and a year ago we could only dream of purchasing a house in this area but with the way things have turned around we have been one of the lucky folk. Both of us are hard-working professionals and our companies are growing dispite the current economy and actually my husband just got a promotion with a real nice pay increase and I’ll be getting mines in April, we just signed to agree to purchase our 1st home!! @ 170k, 5% FHA Loan and seller’s are paying 4% closing costs. We have been looking since Nov. 2008 and have seen it all but def. I agree just to go for it if you have the upper hand.
D’oh…I completely forgot to change the text…fixed! I live in the DC area also and can completely lament about housing prices. I was hoping for better drops before we bought just recently but I think this area is slightly better insulated than other parts of the country.
You using ZipRealty & Zillow? Zillow might be a little inaccurate but it still helps to look.
Yes, home buyers get bolder and of course inspections used to boost demands. Even House buyers take the advantage current market and have to move forward…