Buy now or wait, that is the question
February 15th, 2008 - Categories: Buying a home in the Dothan area
By: Michelle Beasley
Let’s set the record straight on whether or not this is a good time to buy real estate. The National Assocation of REALTORS has been taking some flack in the press recently for its “Now is a great time to buy” campaign. Maybe it is, maybe it isn’t. The truth is, it might be a good time to buy a home, depending on your circumstances.
Here are the primary factors you should consider when making your decision. Our recommendations are based on the current Dothan area real estate market. Please talk with a real estate professional in your locale to help you determine the appropriate course of action for you.
- If you plan on staying in your new home for five or more years, chances are good that you will weather the current real estate storm and see price appreciation again before you want to sell. If there is even a remote chance that you may have to sell within the next five years, then proceed with caution.
- If you are renting, how much home could you buy for the same money you are paying in rent each month? With interest rates near historic lows, payments on a median priced home ($133,000) in Dothan would be in the $800 - $900 range. So if you are paying $600 to $700 per month in rent, you could buy a house in the $90,000 range for the same amount per month. Pay your own mortgage and build your own equity (starting in a couple of years probably) and stop paying your landlords mortgage payment.
- If your credit is in good shape, then you can get financing. Much has been made about how banks and mortgage companies are tightening their grip on money, but they are writing mortgages everyday to credit worthy folks that want to buy a home.
- You have found a house that fits your needs and that you love, and all of the above are applicable.
This isn’t a “one size fits all” buyers market. If you are thinking about buying, we would be happy to sit down with you (NO OBLIGATION) and discuss the pros and cons of buying in the current market. You can contact me at Michelle(at)c21keyrealty.com, or fill out our handy dandy contact form.
We will list some factors to consider if you are thinking of selling in a later post, so stay tuned.