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I’m stuck in a lease until june 31st. The only way to break it is to pay back discounts from my previous months and pay 3 months’ rent plus forfeit a deposit. That comes to around $8000. So, I can’t buy a place till this summer. I have a couple thousand saved for closing and ernest money. Since I’m a first-time buyer I’m approved for a 3-6% down payment assistance program. I also have really good credit and my monthly debt is less then 15% of my income. But since all of this is on hold till June, I’m somewhat worried that I may not be able to get a loan in the future market or that prices will have risen significantly. Thank you to everyone who responds!
p.s. I am in Denver colorado.
Answers
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If only negotiating a home purchase could be that easy…
After the summer selling season, home prices do tend to decrease, but a decline in housing quality is primarily to blame for this pattern. You see more fixer-upper and secondary location properties listed in the fall when the best condition and location homes are during the summer.
While local weather variations will affect each market, some global factors also influence seasonal trends in real estate. The supply and demand of any particular market are greatly influenced by the holiday season and the academic year.
Buyers and sellers who have kids generally wait until the end of the school year to move so they can have more free time and the possibility for a fresh start when the next school year starts. This is because they don’t want to uproot their family in the middle of the school year. According to studies, the summer is the busiest season for moves.
Additionally, the state of the market might alter suddenly and subtly. Markets that were once heated can mysteriously cool down for a few weeks before heating back up.
Vaor
“Buy now. Here’s why: Mortgage rates are near historic lows, and are not likely to go any lower- in fact, they will probably rise by summer. So, while you may get a slightly better price on the house you want, it will cost you more to borrow the money to pay for it.
Now, I understand your concern about the penalties for breaking your lease. Try this:
Find a realtor that works with buyers-I can refer you to one if you click on my picture and contact me. When you find the house you love, make a reasonable offer, and include as a stipulation to the contract that the seller will pay your termination penalties. You will probably go back and forth on that item a bit, but I’m willing to bet that you will get them to at least split it with you. And, if you don’t close til the end of April or May, it won’t be so large an amount anyway. Good luck, and let me know if I can help!”
Source(s): I am A Realtor with Coldwell Banker in Atlanta.
“Hello Why Wait This Is a Buyer market and the bargains are out there I live in Long Island and have been a realtor for 17 years my previous customers are calling me to find them a home the opportunities over her are many, we are thinking of relocation to Colorado (Springs) Is it nice there? Well, If I were you, I Look Every day I Sure you find the home of your dreams, good luck”
Anonymous
“You will be better off if you wait until after summer. Because any house that does not sell when school is out just got cheaper.
Keep saving for a bigger down payment also!”
Anonymous