Buying a house isn't a simple process. In fact, you could make your list of pros and cons and still end up undecided and confused of your next step. If you happen to plan to buy while it's a seller's market, or you are worried about rising interest rates, then you probably aren't sure whether it's the right time for you to buy.
Timing the market and making a decision to buy a house is a complicated process, but the following 4 questions according to Trulia should help you get started:
How do I know whether to buy now or wait?
The million-dollar question when buying a house is: Is this a good time to buy? You obviously wouldn't have the answer to this, and the best next thing to do is to ask a local real estate agent's opinion. An agent should be able to tell you the current market's situation and back it up with facts, equipped with information on current data and trends, and be able to offer advice in your best interest.
How much will seasonal trends affect my results?
The real estate market behaves differently during different times of the year and most people take advantage of this. Real estate agents know that there is an influx of home buyers during spring and summer as not as much people want to go house to house during the frigid winter season. However, if you want to be wise, you could choose to buy during down seasons like fall and winter when there is not much competition and prices are likely more negotiable.
Are 2015's seasonal trends in line with the previous years?
Knowing the changes in the market in terms of seasonal trends can help you decide on whether now is the best time to buy. In Chicago, the price per square foot for homes rose 4.4 percent in a span of one year. Your agent should be able to help you interpret the statistics and find out whether such asking price hike is "normal" and advise you based on this year's trends.
How is my price range, relative to homes on the market?
Ask your agent of the actual comps and what your price range would get you today versus a year ago. The two factors that need to be looked at are median prices and price per square foot. Your agent should be able to help you understand how your budget relates to the median price in target neighborhoods and if there are trade-offs that you can do to get what you want now versus a few months ago.
