Saturday, November 25, 2006
Now is the time
I heard from a friend whose brother is looking to buy a house, but he has decided to wait until the spring. That's a bad move. Here's why.
Sellers who have their houses on the market at this time of year are desperate. If they don't sell now, their house is likely to sit until the end of the winter. That makes them highly motivated to sell, which means anyone's brother could get a great deal.
Second, the rates for a 30 year fixed rate mortgage have dipped to under 6
percent. He could probably get a 5.75 loan right now, possibly a bit lower. If he waits until the spring, there is no telling what the rates will be. A disaster, either political or natural, could affect interest rates and push them back up over 6.5 percent.
And finally, inventory is up and demand is down at this time of year. If he waits until March or April, demand will increase and inventory could possibly decrease. He will be competing with a lot more buyers than there are right now.
Sellers who have their houses on the market at this time of year are desperate. If they don't sell now, their house is likely to sit until the end of the winter. That makes them highly motivated to sell, which means anyone's brother could get a great deal.
Second, the rates for a 30 year fixed rate mortgage have dipped to under 6
percent. He could probably get a 5.75 loan right now, possibly a bit lower. If he waits until the spring, there is no telling what the rates will be. A disaster, either political or natural, could affect interest rates and push them back up over 6.5 percent.
And finally, inventory is up and demand is down at this time of year. If he waits until March or April, demand will increase and inventory could possibly decrease. He will be competing with a lot more buyers than there are right now.
