Prepare to Buy in 2012: Type of Home

Ready to Build 

 

2012:  The Year of Opportunity

For Home Buyers, 2012 may be the last year of competitive home prices nationwide and historic low interest rates at 4% or better.

So it is time to prepare now!!

         Is a New Home in your plans?

Or do you prepare a previously owned     

                                                   Home?

A big question that all buyers must start with.

Home buyers have found builders aggressive at the beginning of 2011 to unload inventories. Yet, most bank's unwillingness to lend money unless a builder has a house pre-sold has caused the standing inventory(thus quick closings) to dry up.

As a result, New Home Buyers must plan 4-8 months from contract to closing.  This lengthy time between contract to closing requires patience and understanding by the buyer; there are many parts to a house and many contractors involved with unforeseen challenges that can come along.  In addition, due to low inventories, Builder may once again tighten up on incentives and may be less flexible on price and terms.

Typically, resale home(previously owned) do not require the lengthy delay between contract and closing.   Normally, working directly with a seller, responses to offers is 24 to 48hrs with closing in 45-60 days with Home Inspections typically negotiated.  Yet, as foreclosures and short sales promise to continue to be popular among buyers, especially 1st Time Buyers, due to the low prices, buyers of these distressed homes will likely

see delayed responses from banks that can rival New Home time frames.  Secondly, these distressed homes will continue to be sold "AS IS", causing buyers to accept home just as it is with flaws and all.   

In large, non-short sale/foreclosures cost more than short sale and foreclosure homes.  But, typically, the prior are in much better shape and "move in ready" versus the latter.

In conclusion, a buyer seeking to buy in 2012 must determine:

   a) New Home or Previously Owned Home

   b) Time frame home is needed

   c) Willingness to buy home "AS IS"(with warts and all)

   d) Need to feel "I got a great deal"

   e) Need to "do nothing but move in"

Awe...but we only begun. 

Preparing now to buy in 2012 is absolutely the right thing to do.

More tips in next post!!!  

Tell me what you think!! 

                                                Question(s)??? 

      Chime in with your plans to move in 2012