With Prices Down, It's a Great Time to be a Buyer

The sales data from 2008 has been reported, and is shows that the median home price fell almost 12 percent last year. In the Boston area alone, prices fell over 7%, and a full 15% between November of '08 and their peak in September of '05. For those looking to purchase a first time home, now is the time to buy.

Jenifer McKim of the Boston Globe published an article yesterday titled "It's all a matter of ZIP code". In it she supports the argument of why first time buyers should consider pulling the trigger now and taking advantage of this "sluggish real estate market".

Read the full article here.. "It's all a matter of ZIP code"

It's Not All Bad News!

With the start of each day, or just about, our morning papers are littered with articles discussing the horrendous condition of the housing market. Whether we are reading about foreclosures, mortgage rates, median home price sales, or inventory levels, the news always seems to build on our fears. But the fact is that the market is still quite active, many properties in Boston are selling, and as mortgage rates move toward historical lows, the current condition creates a perfect time to buy for the right individual.

We've seen quite a bit of this recently in the Boston market. There are buyers out there, plenty of them, and as certain property values have exhaled to more realistic levels, they are being sold. When desirable properties hit the market it's not unusual to see several buyers get quickly involved in the bidding process.

Sunday's Globe ran a great article discussing three exceptions that often make a property be "less affected" by a poor housing market. They were "Location", "Price", and "Condition". To read the article, click this link - "Bidding Wars? Quick Sales? It's Happening!"

Optimistic Takeaways from 2007

There have recently been several terrific entries in Boston.com's Real Estate Now blog. Although the author also published a counterpart piece, there's a great entry that draws attention to many positive aspects of the current and recent real estate market. The author notes that price reductions have presented an excellent opportunity for buyer's with good credit whom were previously shut out of the market, as well as for trade-up buyers. Additionaly, the disappearance of subprime lending has put a stop to predatory lending, suggesting buyer's need not be as skeptical of the mortgage industry. Read the full article here, The Best of 2007: a buyer's agent view.

Costly Mistakes Buyers are Making In Today's Market

Buying a home is a very important decision in one's life. When purchasing a home many consider (amongst other things) money (financing), location, value and "vital features" the buyer's home must have. However, it is during this buying phase that many people make the most common mistakes that not only lead to buyer's remorse but can easily be avoided.

Many buyers go into the purchasing process with the belief that finding a home should take a lengthy amount of time. This is not the case. Sometimes buyers may find their "dream home" within the first few weeks of searching (some even within the first week!) yet pass over this home and continue to search. The reason for this is because many people often think that more "time and effort" is equivalent to how perfect the home will be. While purchasing a home is a major investment in the buyer’s life, the buyer if properly represented by their broker/agent should trust their agent's advice. Brokers/agents know what kinds of properties exist and which do not, what is available and what is not. Passing up a perfectly great home because it seemed "too easy" can be a bad decision for both the buyer and the agent. Your broker/agent is there to serve you and will advise you to help you make the best decisions possible. Buyers often feel uneasy about purchasing one of the first homes they have found, however with the proper guidance from your broker/agent this just might be the perfect home for you.

While purchasing a home is a large financial investment, buyers should not hold out on price if the unit they desire is their "dream home." When buying a home many buyers often think that they are spending too much money. However, if your reputable broker/agent and you do the proper research you may find the home is correctly priced. Backing out of a deal because of a small price difference can be a big mistake. Many buyers will always have a hindsight bias, where they believe they should have purchased in earlier years when "prices were more reasonable." However, in three years you may be saying the same thing about the unit you had passed up.

Another mistake buyers often make, is having the belief that buying a home is strictly for financial reasons only. If you believe the market is "unstable" and this is just a financial investment (like investment banking) then it will never be "the right time" to purchase a home. However, see purchasing a home as more of a way to meet ones goals, move your life forward, and possibly even a new adventure.

After making a large investment (such as purchasing a home) buyers often try to cut costs by not hiring a lawyer. Lawyers can not only help look over the fine print but make the buyer feel more secure with their purchasing decision. They can also take care of any last minute errors. Therefore, hiring a real estate attorney whose fees remain constant despite the price of the home you are purchasing is the best route to go.

Lastly, when searching for one's "dream home," make sure to really investigate the surrounding location. Many open houses are often held during prime time to make the residence look the best. You want to be happy with your new home 24 hours a day, seven days a week. Not seven hours a day three days a week. Come check out the area at night, the weekends, and even during rush hour. This way you know the home is exactly what you thought you were purchasing. And with an insightful broker/agent who may have even done the research for you, you are sure to be happy with your new residence.