Should Real Estate News Influence a Home Buyer's Decision?

Zillow's blog recently examined whether a home buyer should take current real estate news into account when considering a home purchase.

Here are 3 strategies they recommend (and we do to!) in approaching a real estate transaction in this "information overload" era:

1.  Be Smart about Mortgage Rates: Don't be simply motivated to act on a purchase because of rising mortgage rates or feeling the pressure to "act now!" in closing on a home.  Shop around for a better rate or consult a mortgage broker to assist you in finding a rate at another bank, or even wait a few days to see if rates change.  But by the same token, don't not buy a home merely because you think rates will drop slightly in a month.  It's all about being smart and maintaining perspective.  After all, rates overall are still low, especially when you look back on the mid-teen rates of the 1980s!

2.  Ok, Sign on the Dotted Line Right Now: Don't try to time a real estate transaction.  If you are buying a home, you should be fully invested and committed.  There's no way to predict what circumstances and news will change each week.  If you're buying a property to live in and spend years of your life in, you don't to regret a decision made solely based on rates that week or getting the deal of the century.

3. Be Patient:  We tell our customers and clients this all the time.  The time to buy is different for everyone and shouldn't be determined by mortgage rates and prices.  Finding a home that you love in the right location and within your budget will ultimately make you a lot happier and less likely to experience buyer's remorse.  

While keeping informed about the current real estate market is important, don't let it dictate your buying strategy.  Instead, rely on your own smarts, financials and patience...and as always contact us if you have any questions about buying a home!