I keep hearing that the prices are starting to fall... if I buy now as a first time home buyer, will the prices keep falling? I am wondering if I should wait to test the waters or buy now- if I buy now and the prices keep falling, the value of my property will depreciate rather than appreciate therefore not building any equity. I NEED ADVICE!
2006-10-03 13:51:55 · 10 answers · asked by danicad134 1 in Business & Finance ➔ Renting & Real Estate
I live in New York and plan on buying on Long Island...
2006-10-03 13:52:40 · update #1
Most people who have homes for sale are desperate to sell. If you find the house of your dreams, and get a great deal, purchase. If the owner is not willing to bargain or wants what the neighbor sold for last year, don't purchase, you will be able to get a great deal elsewhere. Price comparison with recent house prices, last 3 months.Check out new constructions too, they are eager to sell now.
2006-10-03 14:00:01 · answer #1 · answered by Anonymous · 1⤊ 0⤋
There is no "right" answer to your question, unfortunately. The issues you describe are risks associated with ANY investment. If you would be buying as an investment (not your home) then the only answer is to run the numbers (rent, tax benefits, appreciation in value ...) The real estate market was due for a correction, but over the long term, prices trend upwards in real estate. The real question is does your investment horizon match the length of time necessary to make a strong return on your investment. In other words, are you looking to make your return in 2 years, but we're in a 5 year down turn?
If you are buying as your home, then take the plunge when you are ready. Don't try to out guess the market. Just do your home work and stay within a reasonable budget.
2006-10-03 14:00:08 · answer #2 · answered by comic1965 2 · 0⤊ 1⤋
YES YES YES!
I sell Real Estate in Nevada, and the time is now!
Prices haven't fallen; they've increased very slowly. The difference is that it's a buyer's market and INTEREST RATES ARE FALLING!!! This is key! If you get a great rate, you have more buying power, and a lessor payment.
What you need to do, is find a great realtor (like me), and have him find you a great loan (look at a couple lenders). Have your realtor find property with that you need (area, number of bedrooms, age, square footage, etc...), then have them find the property with the longest "Days on the Market, DOM". Theses are sellers that are getting desperate.
Write the offer at asking price, and include "3.5% of the purchase price towards closing costs". This is the initial offer and expect a counter. The thing is they know you are interested but on your terms. Don't let them up the price to much and take away your closing costs, be fierce; and if they don't like it, walk away.
This is the time, because rates are dropping, and it's your market.
Good Luck, I'm excited for you!
2006-10-03 14:02:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Prices falling is a relative term and areas that have seen super appreciation will adjust or fall the most. Judge each property and area individually. Strike the best deal you can. If you are planning to stay in the home 5 years or more, don't worry about short term adjustments or drops.
Remember its the location you are buying. If you buy a poor house in a bad location you will see little gain. If you buy a mediocre house in a great location you will do well. If you buy a fixer upper in a great neighborhood and put some sweat equity into it, you will see a lot of appreciation.
//Rick
http://www.paccrestinspections.com/
2006-10-03 14:06:05 · answer #4 · answered by Rick B 1 · 0⤊ 1⤋
Long Island is one of those places where the prices could be inflated right now and be moving down but, it's also an area that people want to live and the property is scarce . so, I'd look around and if I found the perfect place I would go for it because it might not come around again and you want your first home to be special. If you do improvements to it and keep it long enough it will still be a good investment since it's Long Island.
2006-10-03 14:05:36 · answer #5 · answered by MISS-MARY 6 · 1⤊ 0⤋
Good property has fallen, but in most of the country, the prices are starting to hold (except places like Michigan) - there are good real estate deals in all markets - if it's a desirable property, it will hold value no matter what - and if you're concerned about a dip in value, then don't invest in anything except CD's and savings bonds.
Real estate is not for the faint at heart.
2006-10-03 13:55:05 · answer #6 · answered by Anonymous · 0⤊ 1⤋
wait a few more months until after the election. then see what happens. if it starts to go up, buy. if it slides faster, wait until it slows the decline and there is a slight uptick, then buy at the bottom. it may take 6 mo or 2 years, that is the way the cookie crumbles dude. read some books about it.
there si one called "TIMING THE REAL ESTATE MARKET" written by a guy who lost his shirt in San Diego
2006-10-03 13:55:07 · answer #7 · answered by Anonymous · 0⤊ 1⤋
You might want to start looking for the best bargain around, such as a distress sale, foreclosure, ect. You can make money in ANY market when you buy the house, and pick up immediate equity.
2006-10-03 13:55:00 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Buy for the long term.
2006-10-03 13:55:23 · answer #9 · answered by Jimmy 5 · 1⤊ 0⤋
now is a great time
2006-10-03 13:57:11 · answer #10 · answered by NunZ7777 4 · 1⤊ 0⤋