A Down Market Can Be An Up Market For Buyers

February 9, 2008

We’ve all seen numerous negative reports on the current home selling market. Those news reports have motivated many prospective home buyers to hold off with a purchase of a home until good times return. For the sake of achieving a balanced perspective, consider the following reasons for taking action now to acquire that needed home.

In recent months, a record number of homes have been added to the for-sale inventory. That translates to a very wide selection of available homes, making it more likely you can find the ideal residence in precisely the right location to meet your needs and tastes. Once the home sale slump is over, that selection base will dwindle. Since there are so many properties on the market, sellers are very willing to negotiate price and terms. Prices generally are now near the bottom of the cycle, according to several analysts.

The days of "bidding wars" are over, at least for a while. You can now take your time in finding the right home and negotiating the purchase, without fear of another buyer quickly entering the scene and snatching the property from your grasp. Mortgage financing is still available at near record low interest rates. True, it’s tougher to qualify for a loan today, but if you have good credit and a decent "credit score" you should have no problem in obtaining financing with very favorable terms.

If you do encounter problems in obtaining a conventional mortgage, you have other options. In some cases, the home seller owns the property free and clear (no debt) and may be willing to carry the financing himself at a negotiated interest rate. Or if you lack the usual 20 percent cash down payment, the seller may be willing to carry back a portion of that amount as a second loan on the property. The bottom line: For some buyers, this is a very strategic time to look for and acquire a home

Posted in All Things San Diego, Lending, Real Estate, Things of Interest