When Is the Right Time to Buy?

It’s a question every prospective homeowner asks at one point or another: When is the right time to buy?

“Prices are going up and up and up,” a first-time homebuyer said.

The first thing Springfield-area home hunters learn is that this is a seller’s market. Beverly and her fiancé have been shopping around for nearly a year.

“There was a little bit of impetus to get in now before it became unrealistic,” she said.

But in Springfield’s market, is it really realistic to buy?

“As first-time buyers, it’s nerve-wracking. It’s intimidating. It’s the biggest thing you are ever going to buy,” Beverly said.

But there’s no time like the present because the key to real estate is to get in before you get priced out.

When is the right time to buy? When you prepare to buy.

1. Get professional help – Find a realtor you can trust. Yes, you have unprecedented internet access to sellers’ information, but a realtor has years of experience that can help you with everything from the area, the appraising of a dwelling, the paperwork, the comparables, and negotiation on price.
2. Before house hunting, get pre-approved – Pre-approval gives you great information about how much house you can afford and allows you to move quickly if you find the right house.
3. Expand your horizons. – Some people want to live in a neighborhood that requires more money than they can afford, so we encourage them to expand their horizons to another neighborhood or consider condos or townhouses.
4. Always hire a home inspector – You should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.
5. Beware of sleeper costs – Comparing the monthly mortgage payments to paying rent is only part of the story. The bank may require property taxes and insurance to be part of the monthly mortgage payment.
6. Walk the neighborhood – Look at the houses in the neighborhood. Are the homes well maintained? Are the lawns mowed and edged? Where are cars parked? Talk with your neighbors. Are they friendly? Do they have kids? Do they have anything good or bad to say about your house of interest?
7. Only a fool signs papers without reading them. Read the papers. Make sure you understand your obligations. If you feel insecure, hire a real estate attorney. This is the biggest purchase you may ever make. Do it the right way.

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