There may be hidden benefits in having waited for that perfect home.I feel like some buyers were so anxious for the $8,000. tax credit, especially as time was running out on the April 30 contract deadline, they may have chosen a house based on monetary impetus rather than family needs. I also feel as though in some circumstances the seller's may have been partial beneficiary's of the $8,000. As the clock ticked down there was more competition for the same homes and sales prices were bid up benefiting the seller not the buyer.
Now that the incentive has passed, there is less urgency for buyers to act. You may be the only one bidding on a home. Also, although interest rates have been historically low for a couple of years now, they rarely ever get below 5%. Right around April they were hovering in the 5 to 5.25% range. Today they are hovering at 4.875%.
There are many factors to consider in determining if the time is right for you to buy. deciding whether to buy a home or rent an apartment can be a complicated decision. How do you know what's right for you? Potential buyers should ask themselves several key questions before making this important decision.
What are the monthly payments - hand how do they compare to my rent (don't forget to factor in the mortgage interest tax deduction) this is a huge benefit.
What other monthly expenses will there be - what are the taxes, homeowners insurance, monthly maintenance. you should plan for on going maintenance like painting, landscaping, minor repairs, yearly furnace tune up, etc.
How long will I stay in the home - the longer you plan to live in the home, the more sense it makes to buy.
These are just a few of the considerations, if you are contemplating whether to buy now, talk to an expert. get a referral from a friend or family member for a mortgage consultant or a Realtor who can help point you in the right direction.
Check out Trulia's Rent vs Buy index for 50 US cities
John Savignano RE/MAX Executive
If you are thinking of a real estate move, let me show you how my 24 years of real estate success can save you thousands! Call John at 508 625-0059.
Servicing the Metrowest Towns of Hopkinton, Holliston, Ashland, Southboro, Westboro, Milford,Medway Franklin, Grafton and Natick.
