Six Reasons Real Estate Should Be Atop Your Holiday Wish List
You hear about the popularity of electronic toys and PlayStation 3. But, real estate is the real deal this holiday, writes the Toledo Free Press.
With such a busy schedule and tight deadlines, Santa is one of the most elusive people in the world. But it’s never too early to give him your list, and real estate should be close to the top. A home mortgage is going to be more affordable than you think, and the market dynamics are in your favor. Here are a few reasons:
1. Interest rates. They’ve remained stable and have even headed downward a bit. When you look at history, mortgage rates around 6-7 percent sound like a bargain. Seasoned agents talk about the tough economic times back in the early 1980s, when rates were a whopping 16 percent. Business was so slow that they’d pick up the phone checking for dial tone. The cost of borrowing is still very affordable. Take advantage.
2. Large inventory and variety. It’s still very much a buyer’s market. If sellers want to sell, they must compete. Price is one sure way to do that. The saturated market has normalized a bit with the weather change. Sellers who don’t have to sell often take homes off the market for the holidays. But those with signs still out front are likely serious contenders, often willing to bargain. In this climate, willing buyers and sellers can definitely get a deal done. Make your move.
3. Foreclosures. As the holidays get closer, the number of foreclosure properties across the country remain at record high levels. That includes Ohio and Michigan. Ask your Realtor to help you find homes that are in foreclosure. If you’re considering taking advantage of these opportunities, keep an eye on the market now so you can recognize a great buy when you see one.
4. Ample down payment assistance. Because of a lack of affordable housing, local governments, including the city of Toledo, are offering down payment assistance to people who need some help to purchase a home.
5. Seller concessions. Sellers are sometimes willing to give a little to make a sale and it has become more common in the past year. With the mortgage lender’s approval, the seller can contribute funds to the buyer to help cover closing costs, acquisition fees and prepaid items. The buyer benefits by bringing less cash (or sometimes no cash) to the closing table. The seller secures a buyer and encourages a quicker sale. If your Realtor suggests a proposition that includes seller financing, consider it.
6. Prices have fallen and stabilized. Contracts for home sales in August are up 4.3 percent, according to the Pending Home Sale Index and the National Association of Realtors. The outlook is for home prices to increase next year. The time has come to make an offer!