by PN Schiavone

Created on: December 07, 2008   Last Updated: April 06, 2009

If you have a good credit score and money in the bank, buying a home now makes sense. It is important to research the market in your area for buying opportunities. Every market is different, and value can be found in many areas. In Florida, there are many people who own second or third homes in what was a great wealth accumulating market. These people are just stopping to pay their mortgages and letting the banks deal with the mess. Now 7.2% of all Florida homes are in foreclosure. The national average is about 3%. For investors and vacation home owners it is strictly a business decision to stop paying the mortgage. None of these owners are going to the street. The wealthy are more likely to just walk away from a house. Even in this state, there are areas where a foreclosure can be picked up cheaply. It is important to get to know your particular market.

Prices tend to be cyclical in any market. The bottom of the market may not be here yet but if you plan to be in the house for the long term timing the market for a home is not essential. Finding a home that you can afford and raise your family is what is important. Some areas of the country are trying new methods to keep prices up and foreclosures down. In Port St. Lucie County, Florida it is now mandatory that a bank go to arbitration with the homeowner before the bank can foreclose. The result has been less foreclosures in just a few weeks.

Here is what you need to find out to buy in this market. First, What can I reasonably afford in regards to a mortgage, remember that major items may break in your home and at least $2000.00 in emergency funds may be needed for repairs or system failures in your house. Second, find out your credit score. This is so important as your cost of the loan will be greatly affected by this score. Higher scores mean lower rates. Third, research what home prices are in your area. There are many sites that allow this such as Realtor.com, but if you want the most up to date information, joining a realtor's site can be of great value. Belonging to a realtor's site you can keep in contact with a Realtor and when you are ready get a referral for a true real estate professional that will make buying a home easier.

The best way to ensure buying without loosing your shirt is to buy through a short sale. I am a big proponent of this. For these reasons. One, the home usually is not distressed like a foreclosure's would be. Second, after the offer is made and accepted, home inspections can still be performed. These inspections will help you find what affects the value, and livability in the home. If the home needs huge repairs, just walk away. This is much cheaper than buying a house with major problems. Even if market prices drop more you know you received a price lower than the market to start.

If you are financially ready. Now is a great time to buy. Stop renting and raise your family in a better environment. Buy below the market and know that in six more months you will be gaining equity and value in your home. Your overall tax bill from uncle Sam will also be lower, giving you more money. Owning a home is a better way to live.

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