Buying real estate can be as easy or as difficult as you want to make it. Prospective purchasers research to gain knowledge of the local market place anywhere from a quick couple of days to more than two years. Judging from a variety of research conducted on the subject there really isn’t a dependable average.
Some people make it their hobby to search for real estate for years. Others find the right property quickly and jump into the market. Buyers today, however, are more knowledgeable in great part due to the internet. Perhaps one of the best ways to go about the process is first getting pre-qualified for a mortgage before starting your search. That’s unless you’re in the enviable position of paying cash.
Getting a good real estate agent who is a local market expert to work with can provide a great advantage. In most areas of the country real estate agents are paid a commission by the seller, and the purchaser is not obligated to pay any additional fee. Finding the right agent can save you time and money.
When it comes to buying property people are always concerned about not paying too much. A real estate agent can provide a Comparative Market Analysis on the property being considered in just a few short minutes behind the computer researching sales in their local Multiple Listing Service. An appraisal is required by most lenders for a mortgage.
Real estate sales had been booming for years, but in the majority of markets home sales have slowed. Although home ownership reached an all time high, increasing foreclosures are having a significant impact on the market.
The talk of a bubble in real estate has always been a concern for consumers. Real estate markets are driven by local economic and political influences and are generally regional in their performance. Cycles have historically run in 7 to 10 year economic turns in the U.S. and are also greatly influenced by the Federal Reserve Board of Governors setting the interest rates for borrowing. With the historically low interest rates experienced the past several years many markets have experienced unprecedented appreciation.
However, few people consider buying real estate at the top of the market, and few purchase at the bottom of the cycle, which puts the majority of real estate owners in strong economic positions.
The over-whelming majority of states have seen their real estate markets slow down. However, in states where real estate sales have slowed it can still be a good time to purchase property. Many veteran real estate investors often buy more real estate in slower markets, capitalizing on the down turn to make a higher profit over the long haul, purchasing properties at lower prices than previously possible.