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Best Time to Buy A New Home Depends on Person and Place

So if trying to time the bottom of the real estate market is not the best strategy, what should a home buyer evaluate before buying a new home?  Here are some considerations that can help you assess whether this is a good time for you to buy property.

Points to Consider Before You Buy a New House

Local Market Conditions:

  • Are real estate prices in your neighborhood(s) of interest fairly stable? If home values are increasing, holding steady or coming back significantly after a decline, you shouldn’t hesitate to search for suitable houses for sale in that area - especially if you plan to stay in the home at least five years.
  • Has there been a rise in foreclosed properties or a marked drop in home prices? If you have to sell a home in these conditions, unless you have an urgent need to move, you would be wise to ride it out until the local real estate market improves.
  • Is your rent almost equal to a mortgage payment? In many areas, it makes sense to take the plunge and own your own home.  The benefits are numerous, but one major plus is you can write off the mortgage interest and property taxes on your personal income taxes each year.

Personal Finances:

  • Did you move into your new house less than two years ago? Chances are, you haven’t accumulated much equity in your home, and if home values have fallen in your area, you may be “upside down” and owe more on your mortgage than the home is worth.  Hang tight and wait until the real estate market recovers.
  • Do you have solid credit, and can you document your income and make a decent-sized down payment on a new home? Mortgage lenders have tightened up on their standards, so you’ll have to document that you’re a good risk to get a home loan at a low interest rate.
  • Are you concerned about job security? If you think your company or business may hit a rough spot, hold off.  Buying a home is a huge, long-term commitment.

If your personal finances are in good standing, your job situation is secure, and the local real estate market is stable, you are in the perfect position to take advantage of this buyer’s market.  So what are you waiting for?  Carpe diem!  Go ahead and buy a new home!


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The Author: Sandra Tuell
Website: http://www.newhomes.com
About: As weblog author for Homes Advisory, the blog for New Homes Realty, Inc., Sandra Tuell covers topics that run the real estate gamut, written expressly for the home buyer. On the blog, home buyers will find practical information and advice on preparing their existing homes for sale, enlisting the services of a buyer’s agent, searching for new homes, making an offer and closing the transaction. Sandra regularly presents real estate news from the perspective of how events will impact home buyers and the real estate industry in general. Trained as a journalist, Sandra stepped into the real estate industry as an accredited home staging specialist, interior arranger and color expert. Since March 2007, Sandra has researched, commented on and explored happenings in the real estate industry, including home building, home mortgages and financing, real estate investing, and the economy. With a passion for all that is pertinent to the design, comfort, livability and marketability of the home, Sandra also provides tips and insights for homeowners who wish to maximize the potential of their personal spaces and turn their new houses into homes. For the past four years, Sandra has operated her own interior arrangement and home staging company, Roomscapes, servicing clients in Pinellas County, Florida. Previously, Sandra worked in the corporate world as a marketing professional, applying her creative energy in a variety of roles including advertising, promotions, special events planning and web content creation. Her current position as a writer for New Homes Realty allows her to bring together her love of design and her educational training as a journalist. "It's really the best of both worlds," says Sandra.

This entry was posted by Sandra Tuell, on Tuesday, June 24th, 2008 at 11:25 am and is filed under Buying A New Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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