How do I buy a home in a turbulent market?
The number one answer is you have to know the numbers as they are now, and you need to figure in the shadow inventory of foreclosures that are about to hit the market.
To buy safely and not end up upside down a year from now what you need to know is that it will take 12-15 months for the new inventory of foreclosures to clear the market and create a stable or even market. Until this happens prices will continue to slide 8-12% more. What I am recommending my valued clients is to start the negotiation 15% below the estimated current market value. Example you view a home listed for $120,000, however the actual home is only estimated to be worth $100,000. We would recommend that our clients offer $85,000 and accept an offer no higher than $90,000. If the market drops over the next 15 months only 5%, you actually end up with a equity increase.
The Good News is, January homes sales activity was up 14% and the price increased by .20% a modest annualized gain of 2.4%. Take these figures into consideration, the risk is much less purchasing a home and having it decline in the first twelve months.
Here are some things to consider before you start looking for a home.
Determine your needs based on a comfortable life style that your living a life and not for a home.
Determine what you are qualified to purchase. If you have more questions about the loan qualification process send us a quick email and we will respond to you within 24 hours or for quicker service call 847-381-9500 ask for Art Dusenbury.
Decide what your target move in date is. Then give yourself at least 120 days to complete the home buying process. It is taking much longer to close on a purchase then it has in the past.
Know how the market is going to affect you in the future. The only way to really know what the market is doing is by selecting a real estate agent that will look out for your best interests. You need an agent with experience and knows how to navigate the turbulent Chicago Real Estate Market.
Join us next Wednesday when the topic is "Now I am pre approved for a home loan; whats next?" In the mean time feel free to search our extensive data base of homes and foreclosures that are a Great Buy in this highly affordable market.
The Good News is, January homes sales activity was up 14% and the price increased by .20% a modest annualized gain of 2.4%. Take these figures into consideration, the risk is much less purchasing a home and having it decline in the first twelve months.
Here are some things to consider before you start looking for a home.
Determine your needs based on a comfortable life style that your living a life and not for a home.
Determine what you are qualified to purchase. If you have more questions about the loan qualification process send us a quick email and we will respond to you within 24 hours or for quicker service call 847-381-9500 ask for Art Dusenbury.
Decide what your target move in date is. Then give yourself at least 120 days to complete the home buying process. It is taking much longer to close on a purchase then it has in the past.
Know how the market is going to affect you in the future. The only way to really know what the market is doing is by selecting a real estate agent that will look out for your best interests. You need an agent with experience and knows how to navigate the turbulent Chicago Real Estate Market.
Join us next Wednesday when the topic is "Now I am pre approved for a home loan; whats next?" In the mean time feel free to search our extensive data base of homes and foreclosures that are a Great Buy in this highly affordable market.
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