Low Rates And Low Housing Prices Equal A Good Time To Purchase.
Low Rates And Low Housing Prices Make This The Time To Buy!
If you have been pondering investing in real estate but have been afraid of the recession in the real estate market, fear no more. This is the ideal time to purchase real estate. Interest rates are very attractive as are home prices. Because the housing market crashed last year, the real estate market has been in a recession. It is expected to remain in a recession for a few years, after which it will rebound and start booming again. This happens all of the time in investment markets. We see it in the stock market as well. It always bounces back.
Now is the time to buy because you can get a good deal on a home as well as low rates on a mortgage. Mortgage lenders are dying to give away money. There are some lenders who are calling people that they dealt with years ago in order to try to get them to refinance. If no loans can be made, lenders go out of business. Many lending companies are already laying off employees and others have completely folded. Those lending companies still operating are offering low rates and attractive packages to potential customers. Some are even offering to pay closing costs so that they can get the loan.
As a buyer in the real estate market today, you have your pick when it comes to choosing the best home as well as the best mortgage package. You can get a good deal on both if you take your time and shop around. Do not be frantic to get the first home that you see and jump into the first mortgage that comes along. Now more than ever, it pays to shop around.
You can use a real estate agent who will show you around or one who is listing the house. Take a look in the area that you like and look for homes on the market. Ask a real estate agent to pull up listings for you so that you can look around yourself. If you see something that you like that is in your price range, take a look at the home.
The old rule of thumb was to knock off 10 percent from the asking price in your first offer. Now the rule is 20 percent. Chances are that the seller will not accept this offer, but you are always better off to go in low and have them counteroffer instead of jumping in with a price higher than what they would take.
Do not allow the real estate agent to sway you when it comes to making an offer on the property. The real estate agent wants to make sure that you offer the most money possible so that he or she can make a commission off of the sale. Make sure that you offer what you want and not get pressured into offering more than you think the seller will take. You can even offer less than the 80 percent if you think that it is warranted.
Because of low rates for mortgage's in conjunction with housing prices, this is the perfect time to buy real estate. Whether you are using it as a residence for yourself or a rental property, there has never been a better time to make this long term investment.
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