Is Now a Good Time to Buy a House?
The question I get EVERYWHERE I go!
It seems like everyone seems to be talking about how crazy the current real estate market is, and rightfully so. The market is at levels no one has ever seen. You hear all of us agents talk about "inventory is so low" and you hear horror stories from your friends who are facing the market and have lost out on 10+ houses... I get it. It's okay to be hesitant, but here's where what I say when someone asks me "Is now a good time to buy a house?"...
This questions can only be answered by YOU. It's completely subjective to your own situation and perspective.
Of course, as an agent, I'm going to say if you got money in the bank and you're ready to face the market...absolutely it's a great time. Interest rates are so low, it's basically the cheapest it's ever been to borrow money. Housing prices are only rising, so get in while you can. Yada yada. All the realtor things to say. It's all true though.
But truthfully, you have to make the ultimate decision to get serious about buying in this market. Because really...it's not easy.
To help you make that decision, here are some of my professional tips and things that I'm seeing in this market:
In order to be competitive, buyers need to have extra cash on top of their down payment and closing costs to pay above appraised value in nearly every price point. This is something most sellers are seeking out when they list. (Put yourself in the seller's shoes...they are trying to take advantage of this market and make the most money out of their home, that's probably why they are deciding to sell right now...)
It's very common for a buyer to write multiple offers before getting under contract. I've had clients write 10+ offers before finally getting one accepted. You may need to add another month or so to your timeline if you're trying to buy before a certain date. Being patient, open minded, and not getting discouraged is KEY in this market for buyers.
Buyers are also including other terms on their offers to stand out, such as waiving repairs and due diligence, offering the seller a closing date that works best for them, paying the difference if it doesn't appraise, putting down a higher earnest money amount to show you're serious, and so much more. These are all things you should consult with your Realtor and Lender about to make sure you are in the right place to write any crazy terms in your offer.
It's not impossible in this market. That's also what I tell everyone. If the above things sound like things you are okay with, then it's a GREAT time to purchase real estate. Find yourself a Realtor who is on your side, get your ducks in a row financially, and really hit the market hard. It's competitive out there, but like I said, not impossible.
If the market scares you and you aren't in a rush to purchase anything, I would still advise speaking with a Realtor to come up with a plan and a timeline to figure out when you are going to jump in the market. It's never too early to speak with a Realtor or a lender! We are here to help and FREE for buyers!
