REAL TipS: BUYING

Don’t outsmart yourself

Are you one of the people who is trying to “time the market” and wait for home prices to go down before you make a purchase? Doing so may not be as wise as you think.

Investment experts in different fields acknowledge that attempting to guess when the best conditions are present is an inexact science at best, even for industry specialists. The real estate market is no exception. In your attempt to find the most favorable balance between interest rates and sales price, you may just outsmart yourself and cost yourself a tidy sum of money.

Market upswings and downturns are rarely evident until after the fact. Consider the following: If you’re ready to buy today but decide to wait one more year and the price of the home goes down a few thousand dollars but interest rates are half a point higher, what have you saved? Nothing—in fact, had you purchased, you’d have a year’s worth of mortgage-interest tax deductions and a 12-month head start on building equity.

You don’t have a crystal ball—no one does. Any real estate expert can tell you that trying to time the market is risky and short-sighted. Over medium- to long-term periods, real estate appreciates steadily and is a solid investment. Any savings you see from price reductions may very well be offset by rising interest rates. The point? If you’re ready to be a homeowner, it’s almost always a good time to buy a home.

If you have doubts about buying a home, talk to a Texas REALTOR®. Your REALTOR® can help quell your uncertainties and explain why acting now to buy a home makes sense and will pay off in the long-term.

Texas Association of Realtors®