Deciding to buy a house is never an easy decision and all of the bad news about the housing market can make even the most optimistic person skeptical.  So, if you've been wondering if now is the time for you to buy a home, it's time to take a look at the reasons why you might want to make your move soon.

Housing Inventory is Very High:

Right here in Fairfield County there are more houses and condos for sale in every price range than there have been in many years, so a buyer can be selective.  In some towns there are so many houses for sale that it will take over a year, at current sales rates, for all of the homes currently on the market to be sold (and new houses continue to come on the market every day).  High inventory also means that there is more competition, so (most) sellers realize that they need to be flexible in the price and terms they are willing to accept for their house.

Prices Have Come Down:

Fairfield County's housing market hasn't been as hard hit as other parts of the country, but prices have come down almost everywhere.  That means that whether you were planning on spending $200,000 or $2,000,000, you'll likely be getting more house for your money.  If you're worried that the price decline will mean that your house will lose value after you buy it - don't. Real estate is an investment, but it's an investment you live in, so how much you gain on the investment is important, but having a home of your own to enjoy is priceless. 

Foreclosures & Short Sales are Everywhere:

Almost 1 in 3 homes for sale in the area are either already a Bank Owned Foreclosure or a possible Short Sale.  If you have a lot of patience and can be flexible about your moving dates, then you should consider looking into a Short Sale or Foreclosure property.  I mention the need for patience, because both Short Sales and Foreclosures usually require more time and paperwork than a typical home purchase.  With a Short Sale, you are at the mercy of the bank and may have to wait months to find out whether or not they will accept the price that you've offered for a house.  And with both types of deals, you're likely to be buying the house in "as-is" condition.  So you want to be sure to hire a licensed, experienced Home Inspector who will give the house a thorough inspection and let you know what work, if any, the house will require.  In either case, you want to be sure to choose a Buyers' Agent and Attorney who are experienced in dealing with these types of deals so that they can walk you through the process and keep on top of all of the details.

Mortgage Rates are Still Low:

Fixed Rate mortgages are still hovering around 6% for a 30 year term, which if you compare it to the rate that you might be paying on other debt, such as credit cards, is really good for the long term.  Talk to a mortgage broker or your local bank to find out what type of mortgage programs they are offering and how much of a mortgage you are qualified to borrow.  You may be surprised to find out that you could buy a condo or house and have mortgage payments that are less than your current rent.

Now that you've got a grasp of the general reasons why now is a great time to be buying a house, you need to think about your personal situation.  Ask yourself these questions to help determine whether now might be the right time for you to buy:

1. Do you plan to stay in the same area for at least 3 years?
2. Do you have any savings you can use for a down payment?
3. Are you confident that you'll stay employed, with the same level of income, for at least another year (longer is always better)?
4. Do you have other debts that you could/should pay off first?
5. Do you have enough income to pay the mortgage, taxes, insurance, common charges (for condos) and maintenance costs without stretching yourself too thin?
6. Are you ready to be a homeowner?

If you can answer all of those questions in the affirmative (except number 4 - you should pay down other debts, if possible, before taking on more debt) and feel comfortable that buying your own home will enhance your life, then go for it.  Find a dedicated Buyers' Agent who is ready to guide you along the path to home ownership and get ready to start your journey.

On Tuesday morning one of my buyer clients called me about one of the listings she had received in her morning email from my MLS search service.  "There has to be something wrong with this house," she said, "but I'm really curious to see it." 

The house she was speaking of is a 1,650 square foot raised ranch with 4 bedrooms and 2 bathrooms on a 1/4 acre in a lovely Stamford neighborhood.  The listing agent's remarks said,

"Unbelievable - Must See. Looking For Fast Sale! Prequal Required." 

Photos of the house's exterior showed some curb appeal and a large, level backyard with a big deck.  So far, so good.  But then the red flags starting popping up:

1. There were no pictures of the interior
2. A big red flag because the list price is $319,900 (Comparable homes have recently sold for an average of $616,000.) 

So the question became is there something really wrong with this house or is the kind of bargain they talk about on all of those late-night infomercials?

We made an appointment to go see the house on Wednesday evening.  In the meantime I did my homework to see if I could learn more about the house.  The tax records on the MLS showed that it's been bank-owned since 2005, not surprising.  A previous MLS listing from 2002 made me truly concerned because the remarks stated "Home Shifted When Settled.  Needs To Be Raised/New Foundation."  That's a significant issue - had it been fixed since 2002?  If not, why wasn't this mentioned in the new MLS listing?

When we went to the house last night, all of our questions were answered.  From the front steps you could tell that the whole house was tilted backwards.  The tilt got increasingly worse as you moved from the front to the back of the house.  It felt like we were in a fun house at a carnival or had gone through the looking glass with Alice.  And there were more problems...the kitchen appliances had all been ripped out, the deck was unfinished, a bedroom and bathroom had been built in half of the 1-car garage and more.  This house was a disaster and couldn't likely be lived in without a lot of work and money invested into fixing the problems.  The saddest part of the whole thing was that it was obvious that someone had put a lot of money into the house before it went into foreclosure - there were new cabinets in the kitchen, an expanded bathroom with a large jacuzzi tub, a stone patio, a brand new deck and other improvements. 

All I could think was that this house had been built in 1963 so when it last sold in 2002 it must have been just as tilted as it was when I saw it yesterday.  How could any real estate agent, home inspector or mortgage bank have allowed someone to buy a property with so many problems?  Did the last buyers intend to fix the structural problems and then find it was too expensive?  Or did they just decide they could live on a tilt?  Who knows?  It's just one of those things that boggles my mind.

Thankfully my clients have good senses of humor and we had a few good laughs at the house's expense.  They know that finding any house in their price range in Stamford is a real long shot so they wanted to be sure they weren't missing out on a real opportunity.  The best part of the meeting was that they had a chance to see first hand that more often than not, deals like this really are too good to be true.  

I'll be keeping an eye on this house to see what happens.  It will be interesting to see if they can actually get it sold.