Is This a Good Time to Purchase a New Home?
A New Home Under Construction in Naples, Florida by Nova Homes of South Florida
Kathy Braddock, a managing director at real estate brokerage William Raveis New York City, says, “The reality is, no one has a crystal ball. We only know what the right time was to buy or sell by looking at history, hindsight being 20/20.”
Everyone’s specific situation is different and can vary based on a variety of factors, but let’s try to break it down. Aside from having the money to pay for a home, a strong financial position is also important to qualify for the best mortgage rates and appear as a more qualified buyer to sellers. At a high level, banks and sellers will be interested in your net worth, asset and liability profile, and credit score. If you’re in the beginning stages of deciding whether to buy a home, you may want to call a mortgage banker to get a pre-qualification. It’s extremely quick and easy to get one and the estimated loan amount is based on your unverified financial information.
One of the most important factors to take into account is your estimated time horizon. That is, how long do you plan to live or own the home. Elements such as job security, changing careers, or pursuing an advanced degree can have a big influence on this. Your time frame matters because there are a fair amount of “frictional costs” involved when buying and selling real estate. A longer time horizon gives you more of an opportunity to realize price appreciation on the home, to offset any transactional costs.
Determining when the best time for you to buy may be much more important than deciding whether home prices are “on sale.” As Braddock says, “we can’t time the market, but we can time our needs.” Be sure to review your specific situation with the experts to see if you are well-positioned to buy a home. (from an article by Roger Ma, posted to Forbes).
If you are thinking about entering the real estate market in Southwest Florida, contact Nova Homes of South Florida for all of your home buying needs. They have fifteen select plans to choose from, customize any plan, bring in a plan of your own or they can design your dream home from scratch. Call Nova Homes of South Florida at 239.307.6116.