The question always comes up as to when to buy real estate, and it's always that the best deal in real estate is the one you bought yesterday. Let's face it, as much as we'd all like to have a crystal ball, and KNOW that now is NOT the time, or IS the time to buy or sell, that's not going to happen. It's kind of like life...just like when you have a baby---you don't know if this screaming little bundle is going to grow up to be president (of the U.S. OR their own company), work in a factory all their lives, serve in the military, or just choose to live with you "forever." So how do you decide when the best time to buy is?

Look at your personal situation. Are you planning on staying in the area or the job you are currently at for more than 2 years? Look at your financial situation. Lenders look at your debt-to-income ratio as well as your credit rating--unless, of course, you can pay cash for the house you plan to buy. You also need to look at family size and what is necessary--you don't want to buy a small 2 bedroom house if you have 3 kids and one on the way. These are situations based on your personal life and decisions.

As it is, too many buyers assume they'll "wait until the prices drop" however, Jim Svinth, chief economist at Lending Tree says that may not be the best idea--especially now. Jim says "As the economy recovers, finance costs will rise. Waiting for the perfect time to get into the market may cost prospects, especially renters, more in the long run."

"The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Svinth. Any savings you might incur by a further drop in prices might be offset by rising financing costs."

Svinth goes on to use the example of buying a $250,000 home in today's market at 6% on a 30 year fixed rate mortgage, 20% down payment, the monthly payment is $1199.10 (principal and interest only), however, if you choose to wait a year, and prices drop 10% to $225,000 on that same home, but interest rates are at 7%. The same 20% down payment and 30 year fixed rate mortgage, your monthly payment is $1197.54...a savings of only $1.56 a month.

The entire article is available at http://www.floridarealtors.org/NewsAndEvents/n1-030308.cfm

Meanwhile, waiting that year, a renter continues to pay rent (or rather, the landlord's mortgage), and is unable to reap the benefits of writing off interest and taxes paid on their tax returns.

Buying a home is one of the biggest decisions a person makes in their life and can be daunting. I've bought and sold many of my own personal properties so am quite familiar with the process on a personal level. If you have questions about the process of buying or selling, feel free to contact me at Valerie@ValerieSullivan.net, 850-803-8446 or visit my websites at www.ValerieSullivan.net, www.ValerieSellsTheBeach.com, or www.TheBeachRealEstate4U.com.