Timing The Market
June 28, 2011If you are waiting until the real estate market has finally touched bottom before you buy a home, just know that even the most successful real estate investors say that it’s really impossible to accurately time the market.
However, there are a few indicators that seasoned investors use to decide whether a property is a good investment. First, they look at local market conditions. If there are a lot of properties for sale that eventually sell below asking price, then you have a “buyer’s market”; which means you can negotiate a better deal at the bargaining table. They also look for properties with excellent locations (stunning views, waterfront access, etc.). These kinds of properties will always be in high demand and hold the best long-term value.
Interest rates are also important. Most buyers think that the asking price of a home is the key financial issue to consider, but the interest rate is actually more significant. The difference of 1 percent doesn’t sound like much, but, depending on the property, it could save you hundreds of thousands of dollars over the lifetime of the loan.
Today, with home prices and interest rates at historic lows, experts say this is a perfect climate to buy.
