This is by far the best time for people to finally become homeowners. No more dealing with landlords, throwing money away in rent, and waiting days for things to get fixed.
Home prices are at an all time low and so are interest rates. There are so many great deals out there that it is hard to decide which will be the best investment unlike years past when supply and demand was so low that people had to settle for any house they could get their hands on. Pre-Bank foreclosures and REOs are everywhere. Home prices are undeniably at an all time low and there are great deals all over the country.
First time homebuyers have the ultimate advantage though with all the down payment and closing costs assistance programs available to them. Several key cities in the Salt Lake valley now have up to $10,000 for both down payment and closing cost with zero percent interest and no payments so long as they live in the home. And are only required to pay it back if they decide to sell. Further, the Home Run Grant is once again available for those looking to purchase a new home. Someone interested in a brand new home can get up to $4,000 to assist them with the purchase of their dream home. Furthermore, first time homebuyers have until November 30, 2009 to receive an $8,000 tax credit. Basically buy the home, go see your accountant and get a check in the mail! Does it get any easier than that?
The idea behind all of these incentives is obvious; get the economy rolling, moving forward, create a scenario where first time homebuyer’s skepticism dissipates instilling the confidence and reassurance needed to go ahead and take the leap knowing that now is in fact the best time to buy a home. Shouldn’t all first time homebuyers be knocking down the doors of every realtor in their city and begging them to help them find a home? Should be a no brain’er right? Well, actually It is not that cut and dry, not that simple.
Consumers have been so emotionally brutalized by the state of our economy that making even the minor decision on how to spend their money has become and overwhelming task. Everybody has a neighbor or a friend that is struggling to make ends meet, to keep food on the table and to pay their bills. The good news is that buyers are now more than ever highly educated when it comes to investing in real estate. Ironically, some homebuyers know more than their realtor regarding the new trends and programs available to them.
So homebuyers are faced with a new dilemma: now is the BEST time to buy but also, beware! Don’t get yourself into a more expensive home than you can afford and make a smart investment decision. This dichotomy has many homebuyers and real estate agents in a bind because there has never been a better time to buy, which is true. At the same time, for real estate agents to compel the new educated buyer to buy is another story.
The truth is that now is the time to buy. Homebuyers are knowledgeable when it comes to the real estate market. So once homebuyers get passed their anticipated buyer’s remorse with the added complication of the public’s skepticism; and purchase that home, they will find themselves having made one of the smartest financial decisions they have ever made. The key is not to buy for the sake of taking advantage of the incentives now available. The key is to buy smart because there has never been a better time!