Timing Is Everything When It Comes To Buying Homes
by: W. Troy Swezey
The old adage that “timing is everything” especially
applies to buying a new home. And trying to be at the right house
at the right time and get it for the right price can be tricky. Here
are some guidelines to assist you:
Turn to the real estate section of your Sunday newspaper. Monitor
the market and tract home prices. Expect to spend 90 days watching
the real estate market through advertisements. Question and investigate
homes that are advertised month after month. Hard-to-sell properties
could either be a warning sign or simply overpriced for the value.
When a real estate agent provides you with descriptions of homes
currently on the market from the Multiple Listing Service (MLS),
ask for a list of homes that were on the market within the last six
months or year in the same neighborhood. Compare asking prices to
actual sales prices for the same type homes.
In addition to monitoring housing prices,
learn to identify hot, up-and-coming neighborhoods by tracking
selling prices from week
to week. If one neighborhood experiences price booms while other
house prices are sluggish, its’ clear which community to invest
in. If you’re passionate about an upscale area – and
on a budget – prepare to buy a fixer-upper and invest some
money in renovation. Conversely, beware of buying a beautiful home
in a marginal area. You may not get your money back when you sell.
Keep close watch on the fluctuating mortgage interest rates. Low
interest rates are the most inspiring reason to buy property. Watch
the rate of United States Treasury Bills. According to Sonny Block,
well-known talk show hose and real estate author. T-bills are a sure
way of predicting the rise and fall of mortgage rates.
Also watch the national Discount Rate, the rate at which banks can
borrow money from the government. When the Discount Rate drops, banks
pay less for borrowing the money and in turn reduce mortgage rates
to the borrower.
Predicting when a market is ripe for home buying is not an exact
science – even for real estate experts. However, by following
these simple tips – and staying on top of real estate trends,
sales patterns and interest fluctuations, you are sure to get the
best house for your buck.
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