subject: Buyers Agents Advise Buying Now Is A Good Idea [print this page] Own Instead Of Rent, Trade Up On A Current Home
Broker Eugene Berman quotes, "If you wait for the last drop you could go thirsty." He is a member of the National Association of Exclusive Buyer Agents and was referring to the fact that waiting around on a market is not always the best idea. Timing can be a deciding factor in buying a home. If a buyer decides to wait and see if the deal sweetens anymore, the deal may disappear instead. Many real estate agents are in agreement that waiting for a good deal to get better may not always be the wisest choice.
Another broker from California, Chisholm Gentry, just sent an email on the status of his clients: "Hope all is well! We've seen a small slow down in the local market. Still lots of buyers but they are just now (after two months of the interest rate drop) starting to make offers again on homes. Have you seen new buyers getting into the market lately?"
The answer to that question would be yes, and no.
Many people are taking advantage of the low home prices, low interest rates, and high inventory of homes. Some others are trying to play the "waiting game" to see if the already sweet deals are going to get any sweeter. There is no way to time a buyer's market. Everything can change drastically from one day to the next.
By renting instead of owning, consumers are not reaping the tax benefits that home owners receive. Rents are also increasing. According to a July 19, 2010 press release by RealFacts, rent is up in almost every market in the 2nd quarter of 2010. When paying monthly rent, there is not security in knowing that the payment will be consistent for the next 3 years as it is in owning a home.
Buyers can't always be sure that buying a home will hold its value, but The National Association of Home Builders reports on their website that new homes have consistently appreciated at a 5-6% increase every year! It is one of the best investments for individual households when taking into account the tax advantages.
It is always a prime time for buyers to trade up on their current homes. They may take a loss on their current home, but they will get a great deal on a more expensive home. By buying a more expensive house for less now, the investment will pay off when the seller's market comes back around. It is currently a buyer's market so there is more bargaining power for buyers as well as more inventory to choose from.
Buyers Agents are extremely skilled at negotiating for the best deal. They also have access to all MLS, for sale by owner, and foreclosure properties. If a buyer is looking for a real estate agent to represent their fiduciary interests 100% of the time, they should research buyers agents who are members of the national associations by typing "Buyer Agent Search" in their browsers.
Trading up on a current home or choosing to buy a home instead of renting are both excellent ideas in the current buyer's market. It is a good time to take advantage of low interest rates and low home prices. Playing the waiting game in the housing market is not always to a buyer's advantage.
by: Kathleen Chiras
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