Things Every Home Buyer MUST Keep In Mind
If you follow me on Twitter, you probably know that I am starting Pharmacy School in June in Phoenix, Arizona (actually Glendale, a suburb of the Phoenix). The process of moving out has led me to purchasing a foreclosed house 3 miles from my school. I am currently in escrow and the house will be mine on May 25th.
The process of searching for homes, interacting with real estate agents on both sides, and the entire process has allowed me to gain valuable experience that I can share with you.
Have You Decided to Buy a House
Buying a house means that you might be risking years and years of hard earned money and possibly putting yourself into debt that could take decades to pay off. There are lots of factors to take into consideration before you make your purchase in order to ensure you have a pleasant experience and come out financially healthy.
The rules are different if you are buying a house as an investment property than if you’re buying to live in it. In this article I will share some of the important things to consider about the property in question before you sign the contract and change your financial future.
What’s really going on with the real estate market? Does anyone really know?
Last year, I gave you the best and worst housing markets for the 2009 year, with the average percent fall (and very rarely, gain) in selling prices.
This year, real estate prices seem to follow no pattern. In some areas, they are recovering from their 2008 price lows and in other areas, foreclosures keep piling up. Investors have it tough… speculators are everywhere, pointing to positive signs in the economy one day and then predicting doomsday the next.
Let’s start with the good news: Historically, housing prices don’t drop consecutively for more than a few years. In cases where they do drop more than a few years, the reduction rate is very little. With the current credit crisis and a record 19 million vacant homes in the country, there is no shortage of houses to buy if you have the money, although I recommend waiting out until mid- July. Experts predict another 25% drop in prices by the end of 2009. If you’re looking for a house, these upcoming months could be the best time. Here is a graph of the change in average US home prices:
As with all good news, there is always some bad news. In this scenario, the bad news heavily outweighs the good news. Several of the once booming housing markets, such as the Inland Empire in Los Angeles, Las Vegas, and Phoenix, have seen the worst drops in prices. Detroit, home of the automobile Big Three, is probably going to never recover from the losses this decade as thousands of jobs have been lost and houses are selling for next to nothing (a 0-16 football team probably didn’t help either). Prices are plummeting nationwide, there is no money to fill in the vacancies, and more homes are being foreclosed every day. We could be in for a hellish two years. This list attempts to quantify the specifics of the housing market in larger metropolitan areas in the US by ranking the biggest drops in house prices (worst areas) and the best areas (least drops/ increases)
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