We have already discussed some of the more common issues that face home buyers in the current market. In this article, we will delve into a slightly more advanced topic. If you have been reading our articles diligently and following their advice, you should have no problem understanding this one.
Today, we are going to address the crucial issue of timing. Let’s say you are driving home one day, and you notice a new housing development being built. You like the location, and the layout seems appealing, so you decide to buy one of these houses. At this point, the next thing to consider is when you should buy your new home. Timing can make a big difference in many ways, so let’s ask the question: Should you buy early or should you buy late?
Benefits Of Buying A New Home
There are quite a few good reasons to buy a new home as opposed to a pre-existing home. For one thing, you won’t have to worry about anything that may have been done in the house before. When you buy an existing home, it will probably be necessary to clean it from top to bottom just for your peace of mind.
Better still, new homes are unlikely to require repairs or maintenance. If they do, you need to ask for a partial refund! Once you buy a new home, you can just sit back and relax without any immediate need for maintenance or cleaning. On top of that, you will have the satisfaction of knowing that the building is fully certified and in compliance with all relevant building codes.
Should I Buy Early?
If you choose to buy early, you will probably have a wider variety of options. This is because the realtor will (presumably) have plenty of units left to sell. This keeps you from having to settle for a place that isn’t your ideal home.
Another benefit lies in the likelihood of superior customer service. At the early stages of the process, the sellers are probably a little nervous. They will have had little to no business before now, and they will probably be eager to sell. If you learn to recognize the common signs of nervousness, you can get a good idea of how badly your agent needs to sell that home. This skill will also help you to recognize liars with an accuracy that you never thought possible.
Should I Buy Late?
If you decide to buy late, it is a good bet that there won’t be as many units available. This means that you may not be able to get the ideal home. If this is one of those housing developments in which every home is similar (i.e., tract housing), then this factor won’t be a problem. Thus, we can say that it is probably better to buy late when dealing with tract homes.
Here is a news story that will give you a good idea of how fast the housing market can change. In 2008, the housing industry went through a major crisis that led to the implosion of the market. Due to some irresponsible and short-sighted lending practices, home prices ended up taking a gigantic dive.
In the present time, we see the pendulum swinging back in the other direction. Home prices started going up as good homes became less and less available. So, here is what probably happened: When the prices dropped, all of the smart investors probably took advantage of the situation by buying up prime real estate at bargain prices. This is great for them, but not so great for the rest of us.
This type of economic looting created a situation in which most people simply cannot afford to buy their own home. The lesson in all of this is to keep your eye on the market and buy when the prices drop! Late buying will give you a little more opportunity to watch the market and wait for the right moment. Your agent might get mad, but all the money you save should make it worthwhile.
Consult Your Calendar
A lot of people don’t realize that home prices tend to fluctuate along with the months of the year. There are several things that drive this process, but most of it comes down to an effort by the seller to increase the value through clever timing.
Around the first of the year, everyone starts doing their taxes. Depending on how much you pay in taxes, this might be a very important time of year for you. When you get that big income tax refund, it’s a natural time to start making those big purchases. Real estate agents are aware of this fact, and they will take advantage by raising prices right around the beginning of January.
Home sellers also know that customers are more likely to make a purchase when the weather is nice. In most locations, this means that business will shoot up in the spring and summer. Spring is traditionally considered to be “home buying season.” However, hot-weather climates are another story altogether. In these areas, summer is a time to stay indoors and camp in front of the air conditioner. Thus, early winter will be peak time in hot areas like the American Southwest. You can probably guess that prices tend to be a little higher in the summer and spring.
In the end, it is very difficult to decide if you should buy early or late. There are good arguments for both sides of the question, but overall it is probably better to take a fluid approach. Instead of fixating on one answer or another.
take a middle-ground attitude about the whole thing. Keep your eye on the prices and do your best to strike when the iron is hot. In case you didn’t take my meaning, that means you should wait for the lowest possible price and pounce on it immediately. We hope that you have enjoyed this article enough to fill out the contact form and receive more informative articles like this.