Buying a Home in a Slow Market

There is quite a bit of talk about how bad the housing market is at this time for sellers and how difficult it is to buy a home for those whose credit is not good. This doesn't mean that it is impossible to get a new home, or to sell the one you have, it may mean that your expectations need to be lowered or changed.

For instance, if you need to sell your house due to interest rate changes and you cannot afford to take a loss then consider renting out your house and downsizing to a smaller home until the market changes and you are able to sell the house. Many people are looking to rent right now because they are not able to get loans to buy a home themselves.

There is more flexibility in buying a home at this time than selling a home if you have a decent credit score. You may even be able to get a really good deal on a house that someone else is desperately trying to get out of.

It is also a good idea to shop around the different types of housing available. A modular, or pre-fabricated home, that is generally much cheaper than a site built home may be found for even cheaper as companies are trying to sell what they can. A modular home can be a very good investment because, unlike a mobile or manufactured home, a modular home is placed on a solid foundation and can increase in value much the same as a site built home.

A manufactured home may seem like a deal but like any piece with a title it will decrease in value. A manufactured home decreases in value much like your car does and in this housing market a manufactured home would be difficult to get rid of because it would be worth so little and many who looked to buy it would have a very hard time getting financing. If the only home you can afford is a manufactured home, and you stretch your budget thin to do that, then you may want to wait until you can afford something more. There are times when buying a manufactured home makes very good sense. Buying land with an old mobile home on it may make a good investment if you are planning on building a site built house eventually. It could give you some time to pay down on the land and give you a cheap place to live while you build your home.

If you do find a home, remember how we got into this slow market in the first place and do not put yourself into the same situation that so many are now finding themselves in.

Do not buy more house than you can afford. If possible get a fixed rate so that you do not even have to worry about your rates going up. If you do decide to get an adjustable rate mortgage then make sure that you can still make the payment if your rates rise dramatically. Just because a bank may be willing to lend you a large amount does not mean you can actually afford it. You do not want to be one of those unlucky people who have recently had to foreclose on their homes, homes they could not afford when the rates went up.

It is very possible to get a home even in a slow market but it is important to be responsible in your buying decisions so that you do not find yourself in a home you cannot afford or a home you cannot sell.