Biggest Shifts in The Real Estate Market
The real estate market has been shaken with a ton of problems that everyone can only wish for it to be better. Here are some of the biggest changes in real estate:
Do not expect big jumps in house prices
If you are purchasing a home you need to have a good cash flow to make sure that you can pay the mortgage. When you live in a particular community where everyone is in the same income bracket, most like the prices of the houses are almost the same and that you need to accept that fact that the home prices will only go up by around 3%. It is good to buy a house now but limit your expectations since the value of the home will not go sky high.
Lenders are not as ready to take risks
A lot of home buyers today do not have enough cash for their home purchase without having to take out a loan. You need to understand though that lenders today are not as ready to take risks because of current market conditions. You need to have a very good credit score to be approved for a loan plus you need to have enough cash to shoulder your down payment and other costs. Make sure that the property you are planning to buy is located in a community where there are not many foreclosures.
Go for new places
Yes, you can find cheap houses going on a short sale or get a bargain foreclosed property. If you want to do this, you need to have a good real estate agent that can get you the best deal for the foreclosure sale. He or she must have connections with the big lenders and skills to help you thru the negotiation process.
The better move will be to get a property where the properties will have a good equity in them but with foreclosure properties around them. This way you will be able to negotiate a price that is competent enough against the foreclosed homes. If you do this, you will end up with a property that is in a better shape and will need lesser maintenance.