The last few months, I have read differing opinions on whether now is a good time to buy. Some say it is the perfect time, while others are telling people to wait. Some even go so far as to say the real estate industry is feeding the public false information in order to booster our own sales. I honestly laugh at this one, like there is some big conspiracy going on behind the scenes.
I am of the opinion that there has never been a better time to buy then now. Prices throughout the Twin Cities have dropped and there are tons of deals out there just waiting for a buyer. In fact the housing affordability index is back to 2003 levels, meaning homes are even more affordable then ever.
- Builders – many have over built and are looking to dump inventory to recoup any remaining profit, or to halt any further losses. I have seen some homes with a $50,000 – 100,000 price drop, with closing costs paid by the builder, just waiting for buyers to come along.
- Foreclosures – there are thousands of homes in foreclosure and as 2008 proceeds, banks are going to begin dropping prices lower, realizing that the losses they will be taking are necessary in order to rid the properties from their books.
As a buyer, what you need to understand is that you have never been in a better position to negotiate. If a builder is promoting discounts, don’t be afraid to ask for MORE! If a property is in foreclosure, don’t be afraid to offer less. If the listing agent tries to talk you out of doing so, ignore him. The final decision lies with the bank. If you can show you are a serious buyer, pre-approved, and ready to close, you have a better chance of making a real deal in today’s market.