Buy house now or wait? Southern NJ. (price, market)

[JamesBoyer]

Originally Posted by NatasNJ

Likelyhood of someone paying 10k more than me for this house? HIGH is my guess.

More details on house. Rehabbed. So basically new inside.
Taxes not reassesed for 2008 post rehab. So they are going up and my guess is people want to know that number before offers come in.

Asking price was $425k in June. Now relisted at $399k.

I offered $320k. He countered $390k.

Nothing from me yet. I would go up more but I don't think he is going down to match where I will go up to. Sure I could give final offer at my top but for some reason I am holding off at this point on doing that.

Don't know anything about that house but what you have said, but my bet is that there is fairly close to 0 chance it will sell below 350K in its current condition. Just my guess, but if it is fully rehabbed, that is exactly what is selling best, when you take every other consideration away. So if 320K is your price, time to move on most likely.

[MoorestownResident]

Originally Posted by JamesBoyer

Don't know anything about that house but what you have said, but my bet is that there is fairly close to 0 chance it will sell below 350K in its current condition. Just my guess, but if it is fully rehabbed, that is exactly what is selling best, when you take every other consideration away. So if 320K is your price, time to move on most likely.

320K on that listing price is 20% below asking. And he's probably not overvalued. Nothing wrong with making it but don't expect he'll suddenly go for it, unless you know he might be foreclosed on. 10% below asking is fine but an offer like that is insulting to many sellers.

[NatasNJ]

I am willing to go up. This was my NO BRAINER if he accepts offer.
But not sure I would go above $350k. And I don't think he will go down below $370 at this point.

[MoorestownResident]

Originally Posted by Sassygirl18

The other consideration in all this is interest rates. Sure, the house prices may continue to fall, but what if interest rates go up? Right now they are pretty low. If interest rates shoot up, it's not going to do you any good to wait out the market and get a lower home price.

Rates for those with prime credit are currently well above 6% due to the credit crunch. My rate last year with perfect credit was 5.75%. I have since invested in the house substantially, it is a prime area of a very desirable town. Given the scenario I would have bought last year when I did at 5.75%.

For those buyers on the fence, realize that higher rates might become a major offset to your willingness to want to get the best possible price. I'm not a realtor, so don't mistake my intentions. Just realize that the rate is very important factor for affordability and analysis versus price risk. You save $20K but pay 6.75% on your rate over 30 years, you'd much rather pay an extra $20K to lock in 6.0% over the life of the loan.

[JamesBoyer]

Originally Posted by MoorestownResident

Rates for those with prime credit are currently well above 6% due to the credit crunch. My rate last year with perfect credit was 5.75%. I have since invested in the house substantially, it is a prime area of a very desirable town. Given the scenario I would have bought last year when I did at 5.75%.

For those buyers on the fence, realize that higher rates might become a major offset to your willingness to want to get the best possible price. I'm not a realtor, so don't mistake my intentions. Just realize that the rate is very important factor for affordability and analysis versus price risk. You save $20K but pay 6.75% on your rate over 30 years, you'd much rather pay an extra $20K to lock in 6.0% over the life of the loan.

You can still get a 30 year at about 6%, but not for long. Wells Fargo just locked in a client of mine yesterday at 6%, great credit 20% down of course.

[NJ987654]

Buy now so long as you expect to be in the home for 3+ years. Rates are low... there is huge selection... just be selective (don't fall in love and overpay!). If the seller won't work with you or if the home isn't priced right, move on. There is plenty of deals out there.

PS - get a fixed mortgage

[NJ987654]

Also... if you do buy, watch the market... if the House passes the housing bill today, rates will likely drop. They dropped right after Fannie was taken over. Anything that brings stability to the markets should help rates.

[Roselvr]

Pretty sure Wiley said that she was able to lock onto a rate, it went from 6 to 6.4 the same day or next day.

[NatasNJ]

I am locked in at 6.125% right now and have another company ready to offer me 5.875% but I can't lock in with them unless I have contract on house. So I am covered for next 60 days.

[Hooper's Judge]

Originally Posted by NatasNJ

Yes. Preappoved for MUCH more than I would consider spending. I honestly have not NOTICED any issue with getting approved. Seems to be no different than 2 years ago. The banks are begging to give me a loan. I do plan to put 20% down and my wife and I are both working and both have 770+ credit scores. So not worried about getting mortgage.

Went looking today at some open houses, etc... So far nothing that has made us want to make an offer. I still think the areas I am looking are a tad over priced. But no houses that offer what we want regardless of price.

I am glad to hear that you were approved. BUT after what's happened with the mortgage fiasco why on Earth are these MFs still approving people for more mortgage than is reasonable?!?!?! Glad that you are wise to not take the bait! Good luck, my friend. Perhaps if you cannot find exactly what you want you will consider buying something cheaper and putting money into renovation to make it exactly as you desire... just a thought that you might find the "hidden potential" in a property and make it your "dream" home. I assume that there may be some deals on construction in the coming months.