Timing is everything in life. When it comes to real estate, a question potential home buyers are always asking is: “is it a good time to buy a house?” Of course, this depends on several factors. But, in this latest installment of our ask an agent series, we talk with sales consultant Pam Cook about deciding when the time is right for you. An edited transcript of the discussion follows.
Is it a good time to buy a house?
Absolutely, it is a good time to buy a house and for a lot of different reasons:
What factors would you look at to determine if it is a good time to buy a house?
The first factor is your personal financial situation. Do you have the down payment funds? Can you get a loan approval? What kind of loan approval? Are you ready to make the commitment and buy a house?
If you’ve got all that in place, then interest rates going up or down or prices going up or down don’t really matter. If you’ve got the ability to buy, you are going to reap the benefits of building equity in a property. Real estate has shown to be a good investment because it builds equity over time. Plus, you benefit from the tax incentive where you get to deduct your mortgage interest.
Does the right time to buy vary by region or by buyer type? Or does it depend on the kind of home the buyer is seeking?
Not really. I go back to whether the buyers’ personal situation makes buying a good fit for them. There are always going to be things in the market that are in flux.
One Saussy Burbank sales agent used to tell buyers: ”Prices are going up – it’s a great time to buy; Prices are going down – it’s a great time to buy; Interest rates are going up – it’s a great time to buy; Rates are going down – it’s a great time to buy!”
One of the things affecting the market right now is a low inventory of available homes. There is more competition to get a home, so prices are being bid up. That can be a put-off, but it’s not a reason not to buy because you are going to get in and build equity.
The shortage of inventory is one of the things that makes new homes attractive to a buyer because it means there are more opportunities to buy in that area they are interested in.
Are there any red flags the home buyer should look out for in deciding whether it is a good time to buy?
Everyone is afraid that what happened in the great recession of 2008-2010 is going to happen again. Yet there were completely different factors in play. There was mortgage fraud and too much inventory. Now, we have the opposite problem. There is low inventory, and lenders have tightened up their policies.
Otherwise, if you can’t get a pre-approval or your personal circumstances are changing you may not want to over-extend yourself. Finally, if you have doubts about the location, it’s not a good time to buy there.
What are your top three tips for someone thinking about buying a house?
First, I know it’s the cliche for real estate, but location is key. They are not making any more land. Compromise on your floor plan or your finishes, but don’t compromise on location.
Second, do your research into different neighborhoods that interest you. There is so much information available today that buyers can really find out a lot on their own.
Still, third, I’d recommend engaging a knowledgable real estate agent active in the industry. Finding a good agent is really helpful to most buyers. It can help them navigate the market and the buying process.
Why should someone buy Saussy Burbank?
We are an experienced builder that has been building high-quality homes for over 30 years. You want an experienced builder that has a good relationship with contractors and vendors and has quality people building your house.
Saussy Burbank also builds new homes in the most desirable locations with communities coming soon in the hot Charlotte neighborhoods of Commonwealth Park, Elizabeth, and Madison Park or in the suburbs of Fort Mill, Marvin, and Davidson.
Our hallmarks are our architectural detail, our style, our porches, and our energy efficiency. We’re going to give you a warranty and stand by what we build; we’re going to give you a beautiful home.
We approach things differently. As a smaller, locally-owned builder, we are able to be a little more nimble and reactive to the market both with our locations where we build as well as our plans and our design. That allows us to give the buyer a much better customer experience. That’s always our end goal; we want the buyer to be happy with their home.
McNeill Burbank is now a separate, independently owned and operated business. If you wish to visit the McNeill Burbank website and learn more about their exciting communities in Raleigh, NC please click below.