Even though it might still be a little scary out there, the fact is that now is a great time to buy. It’s natural to be nervous that the economy might slip again, or that you should wait for home prices to fall lower, but in reality now is the time. Interest rates are low and affordability is high. There is also an oversupply of homes on the market – so why not move on up? Here are a few things to consider and decide if now is your time to upgrade your home.
1. Interest Rates. Low rates mean lower monthly payments and less money long-term. The Federal Reserve has promised to keep interest rates low for a while, but it is possible they will creep back up. You’re in good shape if you have excellent credit, or better yet if you can do an all-cash purchase.
2. Ask yourself why you’re buying a home. Don’t do it just because the market is good for buyers. Do you need more space? Want to live in a nicer neighborhood? Do you think you can afford your actual dream house where you will stay for a long time to come? Or, maybe the house your in just isn’t capable of taking on all the improvements you want to make on it.
3. Look into your equity. Home values have fallen across the county, which could mean that the equity you have built is gone. We can help you figure this out. We know the current market value of your home and will help you decide if now’s the time for you to buy. Most sellers, understandably, will not take a loss on their home. Good news is if you have owned your home for at least five years, you most likely still have equity.
4. Make sure you are financially stable enough for an upgrade. Fact is there is still a high unemployment rate in this country. Moving up is more than just buying a bigger house – it’s higher taxes and more expenses too. Confirm that you have steady employment, decent retirement savings and an (at least) eight-month emergency fund.
We are local real estate agents serving Erath County. We would love to help you answer all of these questions. If you are in the market to buy or sell a home please contact us.