I want to buy a house. Is this the time to buy, or wait? And for how long?

Question

I'm in the market to buy a house. People keep saying that I should wait, but how long? There are homes and condos for sale everywhere you turn! (I live in Los Angeles Co.) If I see a home that is $600,000.00 now, what do you think the asking price would be if it was still on the market in November?

Answer 1

I would buy now since there is large inventory on the market now. You could also probably negotiate a good deal. I would just make sure you get a home inspection and a fixed rate mortgage with a good rate.

Answer 2

WAIT until it is cheaper to pay a mortgage payment than it is to rent the same property....that will take a few years. The market is on the verge of collapse - if you don't believe me, buy something now and cry later when the bank forecloses on it along with everyone else that bought in the last few years and didn't get out. Oh, and if you're on the fence about selling - sell now - even at a loss...sell. Do a lot of research (I have) - and don't do your research at the Realtor's Association website, or by asking all your friends who bought overpriced houses in the last few years. the biggest lie in the industry "housing values always go up." A little research...

Answer 3

i'm not in your area, so I won't guess.

in my area, the 'standard' listing agreement is for 3 months. So if a house is on now for $600k and doesn't sell ... it'll probably be reduced in November.

this works fine if you have six or sixteen houses that would do for you. some will sell. some have owners who can't sell for less because they have next to zero in it and no cash to pay in a closing. but a couple of the 16 will reduce their price to sell by November.

Last I heard, the 'national average' actual sale price was about 7% under the listing price. My guess at a reduction after four months would be maybe 5% and the owner will try to bargain 'tough' after that.

still, there is no reason why you can't offer 480k now [20% off] and see if you get it. Keep your offer period short and include the usual contingencies, including effective APR on the 30 year fixed loan you want to fund it with.

[seven percent average reduction doesn't happen if there aren't a few 20% reductions thrown in there. :-) oh.]


GL

Answer 4

My advice is if you plan on living here for more than 3 years, then go ahead and buy because the interest rates are still low and it looks like it might increase soon.

Homes usually go down in price in the winter months, so your 600k house might hit 550-575k in November, but if the interest rate increases by then, you might just balance out in the long run. So far this year, in Orange County, we either stayed the same or increased in value. Some areas, like Anaheim Hills, took a hit.

Good Luck and if you want me to help you look, let me know.

Regards

Answer 5

As a realtor in Florida I would suggest that you find a buyers agent who will discuss with you the "dom" (days on market), the comparative sales and recent price reductions. It is a great time to buy a house as people need to move and often are very willing to negotiate.
We don't have any way to know when this downward spiral will stop so it is very important not to over buy. I always remind my clients about Kenny Rogers song "The Gambler" You gotta know when to hold'em
know when to fold 'em
know when to walk away
know when to run

Answer 6

this is a buyers market interest rates are really low find a house on the market thats been listed for quite sometime they usually are desperate to sell and may accept your offer.