Are you debating whether to take advantage of low home prices and big inventory this year? Before you jump into the property market, here are four tips to remember:
1. Be persistent. Though brokers say sellers are less desperate to move property than they were when the bubble burst, there are still distressed sellers out there and deals to be had.
"Because circumstances vary, you need to shop around and be aggressive," says Peter McCuen, head of New York and Miami brokerage Peter McCuen and Associates. "You never know who's in trouble."
2. Know when to buy. Long-term mortgage rates rose to 5.14% last week from 5.12% the week before, according to the National Association of Realtors, but are still lower than the 6.4% rate from this time last year. Existing home sales rose from 4.89 million units in June to 5.24 million units in July, outpacing the 4.99 million homes sold last July. It isn't a home bazaar anymore, and time and stats aren't on your side.
"Right now, they can get 10% to 15% off, but that's not enough for them," says Robert Dullnig, a broker with Kuper Sotheby's (Stock Quote: BID) (BID) International Realty Ranch Sales in San Antonio. "Most of them want to wait for a 30% drop, and I don't know if that's going to happen."
(BID) 3. Prepare to pay. If you're crazy for it and the seller is in no rush to sell, you may just have to inch up to their asking price to get what you want. The median price of existing homes is up to more than $178,000 from $164,000 in January, but is still lower than the $210,000 price tag from this time last year. You're still getting a deal.
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