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Scenarios When the Time is Not Right to Buy a House

In real estate, the most common battle cry is “location, location, location.” However, when you plan to buy a property is just as important as where you intend to purchase. “Timing, timing, timing” is also a good guide to compare home loans here in Grand Junction, Palisade, and Clifton properly and find the most favorable deal.

Why? Because there is such a thing as a bad time to purchase a house. If you notice any of the signs below, you might want to wait some more to realize your dream of being a homeowner.

When You Might Not Move in the Foreseeable Future

Buying now when there is a good chance that you might be relocated to a distant place can be a terrible mistake. If you will not stay for a couple of years in the property you want to buy, you might end up wasting money.

You may not be able to re-sell your property for more than what you paid for it. If you put it on the market too soon, you may be slapped with a prepayment penalty by your lender. Also, selling your house under pressure may not bode well for you.

If you need to get rid of your property fast because you are scheduled to move in the near future, a discerning buyer may smell your desperation. It may be used against you to compel you to drive down your asking price.

If you do not see yourself staying put in one location for many years, you may be better of renting a place. This way, you could have more flexibility and freedom to relocate if and when the need arises.

When Your Financial Situation is Somewhat Rocky

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Taking out a home loan, perhaps the biggest debt you will ever acquire in your life, when you are not financially ready would be irresponsible. There may virtually be no mortgages with 100% loan-to-value ratio requirements anymore, but there is no shortage of products intended for those who could barely afford them.

If you can’t put down a sizable down payment or lack substantial cash reserves to continue repayment even if you lose an income stream, then it is probably not time for you to speak to a lender.

When it is Mid-Year

House prices are usually higher in the middle of the year. Statistically, sellers are more open for negotiation in the months of January, February, November, and December. After all, homeowners who do not have to sell could wait for the holidays to pass and list their properties during the busy summer season.

When it is a Seller’s Market

A seller’s market is when there are more buyers than sellers in the market, giving the latter group more power at the negotiating table. Other than demand, supply is also an indicator of who owns the housing market. An abundance of inventories can cause a real estate market to go hot.

Timing your property purchase could save you a ton of time and dime. If you pull the trigger in the right moment, you could gain advantageous concessions from a seller and get the most favorable mortgage deal your credentials permit.

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