Real Estate Expert to Spring Home Buyers: Jump in Now | AOL Real Estate

Real Estate Expert to Spring Home Buyers: Jump in Now | AOL Real Estate.

With the spring home buying season upon us, waiting for the market to bottom will cost you. So says Michael Corbett, host of the syndicated TV show Extra‘s Mansions and Millionaires franchise and author of the recently published Before You Buy! The Homebuyer’s Handbook for Today’s Market.

AOL Real Estate chatted with Corbett, along with Coldwell Banker CEO Jim Gillespie, who wrote the foreword to the book, about what homebuyers can expect in today’s drastically different housing market, and how to avoid the kind of sales that lured homeowners into the last boom and bust housing trap.

After the jump, find out what type of property both experts agree is more trouble than it’s worth for the average buyer.

 

 
Why Waiting for the Bottom Backfires

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particular market,” says Gillespie. “It’s a great time for a young couple to get on the ground floor of prices that are right at or near having bottomed out.”

But both Gillespie and Corbett caution new homebuyers against waiting for the proverbial bottom to drop out.

“We never know when we have hit bottom until it’s past,” says Corbett. Furthermore, what’s unique about the current housing market isn’t just low prices – it’s also historically low interest rates. “They work together,” Corbett says. “It’s a real balance, and interest rates are going up. Anytime you buy within this bell curve, it’s a good time, because interest rates are so low.”

Short Sales and Foreclosures: ‘Leave Those to the Pros’

“If you’re looking to get a good deal, you’re doing yourself a disservice by only looking at foreclosures and short sales,” says Corbett. With foreclosures “you’re buying a property ‘as is,’ the sales are very complicated, and they’re not necessarily a great deal.”

As for short sales, Gillespie, who had the bad fortune of waiting five-and-a-half months to close on a deal gone awry, says they’re often not worth the effort.

“With so many good properties on the market, there’s no need to buy a home sight-unseen in competition with investors paying cash,” he says. “A lot of times you’re not even allowed to see the property, so you don’t know what you’re buying.” Additionally, the longer a buyer is tied up in short sale red tape, the greater the chance of missing lower interest rates.

Foreclosures and short sales “are so scary,” Gillespie says. “Leave those to the pros.”

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