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SHOULD I BUY NOW OR WAIT?

SHOULD I BUY NOW OR WAIT?

Trying to TIME the market? Maybe not the best idea

Let’s be brutally honest.  Realtors are salesman.  It’s a sales job.  If your not good at sales, then don’t be a realtor.  Although, being a top producing realtor is MUCH more than being a good salesman, but at it’s core, sales are its essence.  

That’s bleeds into my next point.  Should I buy a house now or wait?  Ask any realtor and they will say “Yes!” as a good salesman should.  

But, let’s REALLY look at this question.  This is a question that many people ask themselves when considering the purchase of a new home in this market.   

Trying to “TIME” the market is never a great idea.  The better idea is to “Get On The Ladder” and start earning wealth through real estate.  Real estate is a long term hold.  There are major inventory issues in the market that are not going to subside for maybe years or decades.  When rates recede the demand will rise and prices will follow.  Supply and Demand is undefeated.  Homeowner wealth is 40 times higher than those who rent.  And the CRASH?? We can talk more about why that is an extremely low probability next week.

While there is no one-size-fits-all answer to Should I Buy Now?, there are a few key factors to consider that can help you make the best decision for your personal situation.

Firstly, you should consider your credit score. If you have excellent credit, with a score of 740 or above, you will likely be able to secure the lowest mortgage rates available. If you have a history of on-time payments and are viewed as a low-risk borrower, lenders will be more willing to offer you favorable rates. So, if your credit score is high, now may be the right time to buy.

Secondly, you need to have saved enough money for a down payment. Most lenders will require a down payment of at least 5% to 20% of the home's purchase price. You should also have additional cash reserves to cover unexpected expenses that may arise. If you have saved enough for a down payment and have additional cash reserves, then you may be in a good position to buy.

Lastly, you need to consider your long-term plans. Buying a home comes with significant closing costs, and you should be reasonably certain that you won't move again soon. Selling a home very soon after buying it can have serious tax implications. So, if you are planning to stay in the home for a while, it may be the right time to buy.

In conclusion, if you can answer yes to these three questions, now may be the time to buy a house:

Do you have excellent credit? 

Have you saved enough for a down payment? 

Are you planning to stay in the home for a while? 

However, it's essential to remember that purchasing a home is a significant financial decision, and you should carefully consider your options and consult with professionals before making a final decision. We are here to guide, educate, and provide all the tools and knowledge necessary to help you make an informed and intelligent decision about buying a home. 

We deeply appreciate the trust and partnership you have extended to us. As some of the best realtors in Los Feliz and Greater Los Angeles, the Riley Real Estate & Home Mortgage team is dedicated to assisting you in discovering your dream home in the beautiful neighborhood of Los Feliz and surrounding Los Angeles areas.  We eagerly anticipate the opportunity to serve you in buying, selling, investing and mortgages and earn our reputation as a top realtor and make your real estate aspirations a reality.

 

Best,

Riley Schmidt




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