Fischer and Frichtel Home Center & Community Blog | Why Now is the Time to Buy

Posted by JasonB on October 16, 2009

The recent economic climate has deterred many from purchasing or building their first home. Many are waiting for the market to stabilize or for property values to rise, however the problem with the “ride-it-out” mentality is that many are missing out on the best time to purchase. For buyers in the housing market now, the rewards may very well outnumber the risks.

Sellers are more willing than ever to compromise in terms of contracts and closing costs. The more stable the market becomes the less advantages buyers have.  While we all want the economy to rebound, it will be harder to negotiate price reductions or other benefits. Homes have never been more affordable and mortgage rates are at the lowest in years, all things that make this an enticing time to buy.

The $8,000 tax credit is another HUGE incentive. As of right now, the deadline to qualify for the first-time home buyer credit is November 30, 2009. Experts say if you are a renter, now is the time to invest your monthly rent into something that will actually substantiate your worth. If you qualify, the money can be used toward your down payment, updating the interior of your new home, paying off any outstanding debt, towards your mortgage principle or on anything you want.

Building the home of your dreams shouldn’t be out of the question either; the tax credit applies to new and custom built homes even if you already own the property. According to the National Association of Home Builders, “For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house.” First time home builders qualify as long as the date of first occupancy was on or after January 1, 2009 and before December 1, 2009. Eligibility for the tax credit with newly-constructed homes bought from a home builder is determined by the settlement date.

If you have any questions at all, contact us today at 314-576-0500.