Marietta, Georgia is a wonderful bedroom community located on either side of Interstate 75 about 15 to 20 minutes Northwest of Atlanta. Many of the people that live here commute to Atlanta because of its close proximity, making it an extremely popular place to live.
It seems potential first time home buyers here in Marietta are teetering on a fence trying to make a decision to buy a home. They may be thinking that home prices will fall more. And/or, maybe they are thinking interest rates will go lower. I'd like to address those two suggestions by giving them as the two primary reasons it is time to buy here in Georgia.
The first reason is that purchase prices of homes in Marietta, GA and the surrounding Cobb County area have dropped approximately 30 percent. It's my professional opinion that now is one of the best times in history to buy a house here because we are at or very near the bottom of a history making market decline. This is especially true if this is your first home because you did not lose anything when the real estate market dropped. All of us look for sales at our favorite stores and especially sales with a 30% markdown; this 30% off of homes in our area is the deal of the century - literally!
Someone may argue the real estate market could fall even more. While that could happen, think about this: Everyone wants to buy into the stock market when it is at its low; we all would love to do that and almost all of us have to admit that we have never even come close. Many people buy stocks in the middle of a rising market and most buy much closer to the top when it looks safe. But savvy buyers purchase stocks (or homes) after they have fallen because of the reduced chances they will fall significantly further and the greatly increased chances of gains. If you are a first time buyer, now is especially a good time to buy.
Secondly, interest rates are lower than ever right now. During the 3rd week of October 2010 they were 3.75% for a fixed rate 30 year loan from one of our lenders. Shocking in a good way, isn't it?
If rates do go a little lower it will not save that much money on a monthly payment but if they don't and they climb back up, we can quickly start to lose out. (I thought a recent rate of 4.25% for 30 years was great.) Now, I have to tell you, anything under 4.0% is unbelievably fantastic.
Here's an example to help put the subject of interest rates in perspective. Let's say you are looking at a $150,000 home in a lovely subdivision on a quiet street in Acworth, another suburb of Atlanta near Marietta. FHA requires only 3.5% down and we'll use an interest rate of 3.75% for a 30 year fixed rate. Using our fancy calculator this works out to be $5,250.00 down and a base payment of $670.36 (Principal & Interest Only) which is less than many apartments (and forget the quiet street). If the interest rate falls to 3.5% the basic payment only drops $20.37/month. The interest rates are fluctuating up and down right now and that's another signal that it's time to buy!
I do suggest you go ahead and use a mortgage calculator because a good one will give you more information on Private Mortgage Insurance (PMI) and on property taxes (about 1 to 1.25% of the purchase price in Cobb County). These are both added to your basic payment. Just use your favorite search engine and look for "mortgage calculator" and you will find many to choose from.
One last thing I'd like you to consider as a first time home buyer. Hiring a Realtor® to represent you as a Buyer's Agent is smart; they will negotiate on your behalf and will represent you. You won't be charged a fee for this representation because the fees are split with the seller's agent which means the seller pays the commissions. Buyers do need representation; hire a Buyers Agent and they will walk you through the process and make it as easy as it can be.
Right at this moment many first time home buyers are thinking about purchasing in Marietta, GA or the surrounding countryside. Some are already beginning the process of purchasing a home and we want you to know that NOW is definitely the time to buy one of the really beautiful homes that are available today!
Cathy Meder