Today is the best time to buy property - Why

According to some, the outlook to buy a new home may be grim - it's reported that existing home sales will decrease nearly 7% this year, and new home sales are expected to decrease 19% (1). And with a nod to the times, real estate developers in San Diego, California are offering a 'two for one' deal - on homes, that is (2). Real estate is going through an adjustment period, and for many potential buyers, now is a good time to buy a house if there are available funds to secure the financing. Mortgage interest rates are still low compared to historical data, and home prices are also similarly low compared to what some of them were 1-2 years ago. The point I'm trying to convey is that now is, in fact, a good time to buy a house for those buyers who weren't able to buy a new home when the real estate boom was happening. People looking to buy a new home and invest in properties (keeping them for a long-term period) would also benefit from the current state of the housing market.

Finding Affordable Homes

Finding affordable, quality homes and assisting home buyers with the financing are the types of things the company I am associated with and other similar companies can do for people who are ready to buy a new home. The more we are able to inform them as to what options they have available and what they can do, the easier it will be for the market to slowly but surely recover and keep things from getting worse for those in financial distress. Again, if you are looking at the long run when you decide to buy a new home (five or more years), you will be able to benefit with the conditions the market is currently giving you, hopefully encouraging you to understand why now is a good time to buy a house.

1. Selecting a real estate agent- If you select the right real estate agent to help you buy, you have done half the job. A good real estate agent will guide you through the entire process of home buying, particularly the financial ones and will make the experience much easier for you. An agent is well- acquainted with all the important things you will want to know such as the neighborhood, safety, the quality of schools etc. of a particular place you may be considering. And the best part is- you don’t have to pay the agent anything, the seller has to make the payment.

2. Inspecting the home- It is always a good idea to hire an independent professional home inspection service before you buy a house in CA. It is a visual examination of structural, mechanical, electrical, plumbing systems inside the house by a professional.

3. Disclosure statement- law says that a seller should provide the buyer the complete real estate transfer disclosure statement before selling a house.

4. Know about RESPA- The US department of Housing and Urban Development administers several regulatory programs to ensure equity and efficiency in the sale of housing. Real Estate Settlement Procedures Act (RESPA) protects buyers by mandating a series of disclosures that prevent unethical practices by mortgage companies and provides information about real estate settlement services to the buyers.

5. Types of loan- There are different types of loans to choose such as fixed rate, adjustable rate, balloon payment, negative amortization. Here you need the help of your real estate agent.

6. Closing costs- In CA, you can expect to pay for the following charges, called closing costs at the time of purchase of your home.a. loan origination fee b. processing fee c. appraisal fee d. document preparation fee e. closing fee f. title insurance.

7. Assistance program for first time homebuyers- Although many people can afford a mortgage payment and associated costs, the thought of coming up with a substantial down payment often restrict them from buying. Charity organizations and federal institutions are there to assist them.