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Real Estate – Is This the Time To Buy?

Posted by J.S.

July 26, 2008

Today’s volatile real estate market is making some individuals weary about investing in real estate. With the market in what some are calling a freefall – is this really the time to purchase real estate for your investment portfolio?

Foreclosures are up, interest rates are down, and renters are innumerable due to so many adjustable rate mortgages crippling previous homebuyers. Therefore, for the well-qualified investor, this just may be the perfect time to purchase real estate. Long term, fixed rates are lower than ever before. The price of credit is also extremely low right now.

Some people feel that purchasing a house that is ready to go into or is currently in foreclosure is a high risk. It very well may be. The bidder may have to wait as long as five months before the foreclosing banking institution accepts a bid lower than what is owed on the property – and mostly at this point in time - what is owed is far more than current market value. After potentially months of waiting, the bank may flatly reject the bid or counter – and more time is lost while ironing out details both parties eventually find suitable.

However, if you have the time to wait, it is well worth the gamble. In almost every town, nationwide, “FOR SALE” signs are popping up everywhere. Mortgage companies are been forced to sell their portfolios to competing mortgage firms or banks in order to stave off bankruptcy. Others are simply selling off the “bad paper” they invested in. Either way, the market savvy investor wins.

For those who are searching for that perfect home rather than simply an investment, the options and choices are nearly limitless. The well-qualified borrower has as many, if not more credit friendly loans waiting to be found.

The same time constraints may apply if one is looking at foreclosure properties, but again, if time is not of the essence, it is worth the wait. You may get lucky and have an answer in as little as a week. There are also things you can do ahead of time to show the seller you are serious about purchasing the property. Such things include: requesting a short sale, placing a respectable deposit into escrow upon submission of the offer, or not quibbling over closing costs or inspection fees.

For many – NOW is the perfect time to buy real estate!