With all the hoopla in and around the country with the current real estate market, is it such a bad thing for investors or anyone willing to get a real estate investment going? I would say absolutely not. There is one thing that people can find right now and that is tons of foreclosures and houses in areas where the prices have never been lower. How could you not think about an investment right now, especially if you have or are able to get the capital to invest in it. There is no doubt about it – it’s a buyers market. So I’ve decided to let you in on four reasons why I think people should buy right now.
The first reason is the amount of houses for sale in this current market. With the amount of foreclosures, preforeclosures, and anyone wanting to get out of their home, the country has tons of homes for sale for your choosing. With the amount of homes for sale, you have a very competitive stance on getting a great deal on purchasing a home. The ball is in your court when negotiating because if someone has an asking price that you don’t want, you can move on to the next house down the street. This leads into my second point.
The amount of houses on the market leads to the amount of reductions in home prices. It truly is a buyers’ market when you have home sellers competing against each other to get their property sold by lowering their prices. Again, this gives you the competitive advantage you need to get a great home for a low price.
Third, the Federal Reserve just cut its discount rate half a percentage to 5.75%. It’s stepping in and trying to maintain some stability in the market, which will give some relief. The lowering of rates could get banks back to lending money to people who are creditworthy.
Finally, as the real estate market bottoms out, sellers and lenders will be very anxious to accommodate a buyer. Whether it’s in the price, in the transaction, or any fees charged, a buyer will again have the upper hand when trying to get a good price on their investment. So, there you have it. If you are interested in joining in on a great buyers market and you have the money, go for it.