Fear of overpaying for property is common in today's economic environment, especially in places like California where prices continue to be unstable.
If you find yourself on the fence, afraid to pull the trigger, or just down-right scared about jumping into today's real estate market, because you're concerned you'll pay too much, here are some factors to consider:
Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.
Financing is fickle. Some people who were highly qualified last year are unable to find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.
Don't be the last person on the bus. Educate yourself about your buying power and what options are available to you. With prices at an all time low, you don't want to find yourself chasing the market because you weren't prepared to play the game!
For a free Home Buyer's Information Packet, feel free to contact me anytime. Email all requests to firstname.lastname@example.org.