The economy has yet to hit rock bottom and money is tight. You may lose your job or even your house whether the house that you live in belongs to you or you are renting the house. Right now is a scary time but right now is also a time with opportunity knocking on your door! House prices have dropped dramatically and sellers and lenders are in need to sell their homes even if it means losing over $100,000 in return. The time calls for desperate measure and it’s your time to take advantage of it!
If you have the money to spare because you have been saving up to buy a house but couldn’t before during the housing boom because homes were so over inflated then the time for you to buy a house is definately now. Home prices are now affordable even though they have not dropped back down to before the housing boom but low enough for the average person to actually be able to afford without going through shady loan applications. Sometimes you will even be able to purchase a home that is below the market value before the housing boom as well. In addition to buying a house for below market value, you are able to ask for a better bargain because the ball is in your court now. You can ask for closing cost assistance although there are times when you don’t even have to ask because the seller is already offering up to 5% to cover your closing costs. As a buyer, you can buy a home without having to put out any money at all because the seller is the one that will eat the cost of everything.
When it comes to picking a house, location is not everything because with location comes a more competitive price. You could buy a house that is a little farther off for less and possibly even a newer house. For instance, you could buy a 4 bedroom, 3 bath, 2,200 square foot house on a 7,000 square foot lot that was built in 1997 for $250,000 in Ontario. Or, you could drive 10 to 15 minutes up north to Fontana and buy a similar house for $200,000 or less but built in 2006 with modern design and structure. It is not a big sacrifice to make in this case and why would you settle for old when you can settle for new? The American dream is not so far away anymore because now you can actually keep and hold onto the American dream. Sure, lenders may ask for a downpayment but with housing prices dropping to a low, the downpayment would not be as significant as it would otherwise be a couple of years ago.
But don’t jump up and down with joy just yet, there are still risks when it comes to purchasing a home. With all the abandoned homes, you would have to consider look into the history of the home to determine if you would be buying a home with a lien or even back up taxes which you would end up having to pay for if you were to buy the house. Also, you would also have to thoroughly inspect the house because things are not always as they appear because not all houses that you will encounter will be clean as a baby’s bottom. Viewing houses nowadays may be better in terms of the house being cleared out and with no tenants but sometimes you will find houses full of the previous homeowners left overs and abandoned trash. Some sellers will clean up the house before lising the house but there are cases where the house will be left as is. You should ask yourself if it is worth it to clean up the property or to move onto the next house because there is not a shortage of houses on the market so the choice is yours.
Also keep in mind that just because the house is more than what you want to pay for doesn’t mean that the house would be out of reach whether the seller rejects your low ball offer or not because in the end they just might consider it. When it comes to bank owned properties also known as real estate owned, the bank will continue to keep on dropping their asking price until they are ready to settle which may take them almost a year to decide but the inevitable will happen nonetheless. So keep your head up and see what your hard earned money can do for you now because remember this is now a buyer’s market so negotiations is in your court.