for Right At Home Daily
he problem with being a homebuyer these days is that you have the best and worst of home buying all rolled into the current market.
Interest rates are hovering around seven percent, with lower rates available on adjustable rate mortgages. Low interest rates boosts home buying power. At current interest rates, if you have no other debt and some cash to put down on your home, you'll be able to buy three to nearly four times your gross annual income. That's a lot of house, if you can find one.
Now that we're in the 4th year of a strong seller's market, there are fewer homes available for homebuyers to look at and bid on. With less housing stock available, you'll have to make some tough choices. Dealing with the disappointment and frustration at not finding what you want may be even harder.
Your best bet might be to go with a fixer-upper home. Consider choosing a home that needs cosmetic improvements (rather than structural ones) and refinish it to your taste over time. You'll get more house for your money, and possibly one that you'll like enough to stay in for the long run.
Ilyce Glink is the bestselling author of 100 Questions Every First Time Home Buyer Should Ask, and is the Managing Editor of Right at Home Daily.