So you're thinking it's time to buy...

I'm often asked "Do you think this is a good time for someone like me to buy a house?" or "When will we hit the bottom? THAT's when I want to buy!"

I have no simple answer. Home prices continue to trend downward. Foreclosures, mortgage delinquencies & jobless claims are on the rise. The economy on the whole is in decline.

However, I don’t think all this necessarily means that you should put off buying. On the contrary, if you plan to live in your house for 5+ years, or hold on to an income-producing investment property, you will build your credit rating, equity and tax advantages--something that stock investments don't offer.

Buying a house requires planning. Shop for the best mortgage rates, terms and conditions & get pre-approved so you’ll be ready to move ahead when you find a home that you like at a price you’re willing to pay. Remember that lending practices have changed, & you'll be needing to supply more information about your income, assets and expenses.

Do your homework & decide where you'd like to buy. Drive & walk through some neighborhoods. Talk to homeowners & business owners to get a better sense of how the area is doing & what it would be like to live there. Visit the local library, banks & post office to get a feel for the area.

Next, decide on a house, settle on a price, negotiate through inspections & get to the closing table. You can see where your chances of timing all this to coincide with the market bottoming out are slim.

Qualified buyers are in a good position right now. While there is no sign of a fast turnaround in the market, remember that real estate is local. Competitively priced homes in New Hampshire and Massachusetts are receiving multiple over-listing price offers!

Make a real effort to shop around and get a feel for the market. You can almost certainly increase your chances of getting a house at a price you can be happy with now and in the future.