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I moved here From San Diego about 4 months ago. My wife and I got into a rental with a 1 year lease. I have no idea about the housing market and really would like to buy a home but I’m confused… After researching I still can’t decide whether I should wait to buy a home or try to get one as soon as possible.
Some tell me that the market is flooded and to wait. Others tell me that people are coming so buy now. Is there anything out there for me to read, look at or someone I can talk to who I can trust about a game plan for a first time buyer?
We moved here from San Diego for pretty much the real estate. San Diego got to crazy with the Cost of a house. Even a Condo will go for $230,000+. For that I can get a 5 bed 3 bath with a pool here with all the upgrades and Zero closing costs. But in SD you get a small 2 bed 2 bath, condo with an insane HOA ($150+/month) and a 5+% closing cost. So in the end you’re spending like $2300 a month for 30+ years just for something that was a condo conversion. But I’m sure that the market is going to go down since my home town pretty much burned.
If anyone can help with some links or an… Honest realtor, that would help a lot.
I moved here From San Diego about 4 months ago. My wife and I got into a rental with a 1 year lease. I have no idea about the housing market and really would like to buy a home but I’m confused… After researching I still can’t decide whether I should wait to buy a home or try to get one as soon as possible.
Some tell me that the market is flooded and to wait. Others tell me that people are coming so buy now. Is there anything out there for me to read, look at or someone I can talk to who I can trust about a game plan for a first time buyer?
We moved here from San Diego for pretty much the real estate. San Diego got to crazy with the Cost of a house. Even a Condo will go for $230,000+. For that I can get a 5 bed 3 bath with a pool here with all the upgrades and Zero closing costs. But in SD you get a small 2 bed 2 bath, condo with an insane HOA ($150+/month) and a 5+% closing cost. So in the end you’re spending like $2300 a month for 30+ years just for something that was a condo conversion. But I’m sure that the market is going to go down since my home town pretty much burned.
If anyone can help with some links or an… Honest realtor, that would help a lot.
Of course, the ideal time to buy would be when the inventory has been shrinking for a while and prices have been moving up for a little (consistent) awhile, but since not even investors can time the market perfectly, it's entirely up to you. It mainly depends on how long you plan to live in the house. If it's less than 5 years, I wouldn't buy if I were you.
"Honest realtor"... hmm... sorry present company, but I file this phrase in the "oxymoron" cubby... Nobody whose livelihood depends on sales can be honest about them. Not a realtor, not anybody in any sales field. OK, perhaps some have a bit more integrity than others.
I'm a recent buyer, and I can give you my unbiased opinion:
Living in a nice area, with good schools, low-ish crime, plentiful community events, will cost you a good premium. Since PHX area schools are mostly pi$$-poor, the good ones will cost you in home price. If you see a pretty 3,000 sq ft house, but up the street is the high school covered with graffiti, it's not worth $400K.
My street lookes so nice, but the school looked ugly. I got "a deal" a year ago, which today means I have a house worth about what I paid. Someone told me a good way to scout neighborhoods is check them out between 6 and 8 AM on a weekday, and see what people where to work. That would have helped me understand my neighborhood better.
That being said, I think PHX is right in the middle of the downturn, which should last at least another year, maybe 3 or 4. But from my view, being in the middle of the slump, you have a huge selection out there. If you start the looking process now, you can lowball sellers who have previously been reluctant to lower prices. Others have said to look at the 2003-2004 values, and that's close to what it is worth. There is so much to choose from now, you can easily walk away and up the street to the next one. You won't be able to lowball someone who is upside down, but for those who didn't use the "house ATM", they may be willing to take a 80K profit as opposed to a 180K profit.
This is just my opinion, as I see the huge inventory as a great leverage tool. I suppose as the inventory dwindles, probably slowly, so will your bargaining power and choices.
THX for the above link. This looks like a good tool to use as my lease goes on. My wife wanted to start looking then Break the lease after we buy. So Ill keep an eye out for more info.
I moved here From San Diego about 4 months ago. My wife and I got into a rental with a 1 year lease. I have no idea about the housing market and really would like to buy a home but I’m confused… After researching I still can’t decide whether I should wait to buy a home or try to get one as soon as possible.
Simple answer, ZaVaZ
Since you have approximately eight months remaining on your lease, this would be an ideal time to begin a serious hunt for the perfect home. Even an "old construction" home could take about two or three months once the offer is accepted, etc. If you decide on "new construction" there could be a similar wait or longer so I would began looking as soon as possible.
The inventory is huge and you are in the best position right now to make the best choice possible without the pressures of being homeless.
Location: Sunny Phoenix Arizona...wishing for a beach.
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Quote:
Originally Posted by ZaVaZ
I moved here From San Diego about 4 months ago. My wife and I got into a rental with a 1 year lease. I have no idea about the housing market and really would like to buy a home but I’m confused… After researching I still can’t decide whether I should wait to buy a home or try to get one as soon as possible.
Some tell me that the market is flooded and to wait. Others tell me that people are coming so buy now. Is there anything out there for me to read, look at or someone I can talk to who I can trust about a game plan for a first time buyer?
We moved here from San Diego for pretty much the real estate. San Diego got to crazy with the Cost of a house. Even a Condo will go for $230,000+. For that I can get a 5 bed 3 bath with a pool here with all the upgrades and Zero closing costs. But in SD you get a small 2 bed 2 bath, condo with an insane HOA ($150+/month) and a 5+% closing cost. So in the end you’re spending like $2300 a month for 30+ years just for something that was a condo conversion. But I’m sure that the market is going to go down since my home town pretty much burned.
If anyone can help with some links or an… Honest realtor, that would help a lot.
THX
-Z
If you are pretty sure you are staying in the Valley for a while why not buy? If you think you may have to sell sooner, you may be stuck.
Since you have approximately eight months remaining on your lease, this would be an ideal time to begin a serious hunt for the perfect home. Even an "old construction" home could take about two or three months once the offer is accepted, etc. If you decide on "new construction" there could be a similar wait or longer so I would began looking as soon as possible.
The inventory is huge and you are in the best position right now to make the best choice possible without the pressures of being homeless.
Good Luck!
Great advice. Eight months puts us in the middle of 2008 where, hopefully, the picture will be clearer. Not much is going to break either way between now and then.
ZaVaZ - you do have some time before your lease is up, which will give you time to explore neighborhoods and see which areas appeal to you.
Also, just a couple of things to keep in mind:
Although the general trend in the Phoenix housing market is downward, there are some areas that have really tanked. Meanwhile, some areas of Scottsdale have actually gone up in value. So once you've found the neighborhood(s) you like, you may want to contact a realtor at that point so that you can keep a close eye on the housing trends.
Secondly, be very, VERY cautious about buying a new build. Builders are giving some great incentives right now, especially on their inventory homes (homes that were pre-sold, but the buyer has been unable to complete the contract so the home is basically ready to move into); however if this overall downward trend continues into 2009 (as many are predicting), you could really be "stuck" if you need to sell before 2010 or 2011 if you purchase in a new home subidivision. If you have to compete with builder's incentives, you're sure to lose money. And . . . one other caution about a new build - if there's a lot of empty lots, it could stay that way for quite a while. Worst case scenario - the builder goes bankrupt and walks away from half finished houses. . . . Not good for resale. So if you decide a new build is what you'd really like, look for a subdivision that's really close to being built out.
"Honest realtor"... hmm... sorry present company, but I file this phrase in the "oxymoron" cubby... Nobody whose livelihood depends on sales can be honest about them. Not a realtor, not anybody in any sales field. OK, perhaps some have a bit more integrity than others.
Calling all realtors and salespeople dishonest is an insult and completely untrue. A generalization like that against any profession is absolutely uncalled for.
I happen to take pride in being straight forward and completely honest with my clients. That means telling them what they need to hear, rather than what they want to hear. It means turning down their business rather than promising that I can sell their home at an inflated price they think their home is worth.
The NAR has a Code of Ethics that is a very high standard, and which I comply with out of respect for my profession and my fellow colleagues; for the protection of my clients; and for my own protection.
I moved here From San Diego about 4 months ago. My wife and I got into a rental with a 1 year lease. I have no idea about the housing market and really would like to buy a home but I’m confused… After researching I still can’t decide whether I should wait to buy a home or try to get one as soon as possible.
If anyone can help with some links or an… Honest realtor, that would help a lot.
THX
-Z
Unless one is an investor, the rule in real estate is to "buy and hold". Buying and holding real estate is a great way to build wealth.
Buying to turn in one or two years is a risk that only experienced investors should take. The average home buyer should plan to buy a property as a "home" and live there for 6 or more years. 6 years is the national average.
The best time to "sell" is when the market is going up, and the inventory is low. One should not wait for the "top" because when you see it's the top it will already be on the way down.
The best time to "buy" is when the market is down, and the inventory is high. That is the situation today. One should not wait for the "bottom" because the only way to recognize a bottom is after the prices have risen. So, after the prices have risen, and people recognize that the bottom has passed, there will be more competition from other buyers.
While we do not know when the market will turn around, we do know that if buyers wait until the market does turn around, the ones who wait will pay a higher price. The average buyer will not know that the market has turned around until they find they have to pay a higher price for the home they're looking for.
There are a lot of bargains out there today, and the smart buyers are buying them now because they have very little competition. If you are going to buy a home and keep it for the normal holding period of 6 years or longer, then you should not be affected by any further slide in the market. Over the period of 6 years you will most likely see an average of 3%+ per year increase in value. If you stay in your rental, you will see no increase, and you have no interest tax write off.
Because it's a buyers market right now, you have the advantage of being able to take your time to look and find the right area, the right property, and negotiate the right price.
We're getting a lot of people from Canada buying property in our area now. On Sunday my Canadian buyer signed a contract for a home listed at $1,295,000 and is paying cash. (They can't write interest off their taxes) He said that with the increase in the value of their dollar, that property here is very cheap for them now. He is recommending to all his friends that they come here to buy. (We had competition for this house. There was another offer and we had to negotiate hard to get the deal.) A home just two houses away and listed at $1,395,000 sold the same weekend.
Last week I sold another home in the same master community listed at $339,000 to a young couple who felt that this was the best time to buy -- home prices are low and interest rates are low.
I'm working with 5 other buyers who are taking their time to find the exact right property for them. We'll find them soon.
The smart ones are buying now because they know that with the continuous influx of people relocating to Phoenix that the market will turn around and they will have bought "near" the bottom. The're not concerned with trying to time the "bottom" because they know they can't.
If you listen to what the TV media is saying, and the people who are repeating what that media is saying, you will always miss the top and the bottom. One can not time the market, except with some exceptional luck.
When the news becomes no longer "sensational" (the bubble has burst -- sub-prime lenders are going bankrupt -- foreclosures are up, etc) the press will stop reporting. They will not report good news because it is the sensationalism that attracts viewers and increases their ratings.
Interview a couple of realtors and choose one that you feel comfortable working with. The agents who contribute to this site are here to provide information for people to use. Check out the profiles of the agents on this forum and visit their web sites. You'll be able to find one that you'll be comfortable with.
Bill
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, but you can watch what's going on here: 
. . . Not good for resale. So if you decide a new build is what you'd really like, look for a subdivision that's really close to being built out.
