Tips for Buying in a Tight Market
Increase your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer.
1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller. Work with a local lender who knows the current market.
2. Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast.
3. Scout out new listings yourself. Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. Your real estate agent will schedule a showing. Your real estate agent can also set you up on a property search that will e mail you homes that fit into your critiera.
4. Be ready to make a decision. Spend a lot of time in advance deciding what you must have in a home so you won’t be unsure when you have the chance to make an offer.
5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t go too low to get a deal. In a tight market, you’ll lose out. By hiring the right agent, they will do all the negotiating for you, so you get the best price.
6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.
7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.
Provided by NAR.
What will 2010 bring for home sales?
One of the million dollar question
s for this year is what’s going to happen with the real estate market? Many wonder if home prices will still decline, plateau or actually rise?
My thought for this coming year, especially in the first couple of quarters is that we will see a slight increase in home sales. With the extension and expansion of the Home Buyer Tax Credit till April 30, 2010, I think those who are buying are doing it now rather than later this year.
Traditionally the winter months tend to slow down, however home buyers, especially those that can qualify for the tax credit cannot wait till this spring to start looking for a home. They need to be doing it now.
In the Grand Junction area we have seen 5 consecutive months of declining inventory. Meaning less homes are listed on the market. It certainly is still a buyers market, however the market is not as saturated as it once was. If this trend continues we will start to see a balanced market in our area.
Below are some comments about what 2010 will bring for home prices. I don’t know about you, but I’m a glass half full kind of person, so I expect to see great things for 2010!
Some real estate researchers are forecasting that home prices will fall again in 2010.
· Fiserv Lending Solutions, a financial analytics firm, predicts that prices will decline an average of 11.3 percent in 342 of the 381 markets it covers.
· Moody’s Economy.com foresees another 8 percent drop, with Arizona, California, Florida, and Nevada feeling even more pain.
· Shari Olefson, author of Foreclosure Nation: Mortgaging the American Dream, predicts a national average decline in prices of about 10 percent in 2010.
· Peter Schiff, president of Euro Pacific Capital and the most bearish of the bears, says real estate prices could possibly fall another 30 percent before they hit bottom.
NATIONAL ASSOCIATION OF REALTORS® Chief Economist Lawrence Yun sees it all differently. He predicts home prices will rise more than 3 percent in 2010.
“The headwind we face is rising mortgage interest rates,” Yun says, “but the compensating factors will be the home buyers tax credit in the first half of the year and increased job creation in the second half.”
Source: CNNMoney.com, Les Christie (01/01/2010)
Foreclosures: A good deal?
With the downturn in the market and the increase in foreclosures, many individuals are looking at purchasing foreclosures thinking they are getting a “deal”.
Unfortunately many people equate foreclosure with a steal.
You can get a good deal in a foreclosed home, but you have to do your homework and know the market to make sure it is a good deal. Some of the foreclosed homes are not that much below market, to be considered a good deal.
When looking at foreclosed homes, be prepared that the processes takes more patience than a typical real estate transaction, but for the most part they close in the same amount of time as a typical realestate transaction. Also know that the properties are sold “as is”. It’s still a good idea to get an inspection, but you will not be able to request that anything be fixed.
Sometimes when homeowners know their home is going into foreclose, they take anything of value out of the home, such as appliances, light fixtures, even hot water heaters. If these items are removed or missing it could also affect the type of financing you can get on a home. When you purchase the home you will obviously have to replace these items, keep that in mind when you are considering what you are spending on the home.
As a buyer you still need to look at a fair amount of properties, just as when buying a non- foreclosed home. This will give you the best perspective for your local market and when you come across that home you’ll know you are getting a good deal.
As an end note, do not pay a service for a list of foreclosed homes. Contact a Realtor and they can get one for you for free. I’m happy to help anyone with this.
Andrea Haitz, Broker Associate
“Taking Real Estate to New Heights”
Keller Williams Grand Junction Realty, LLC
715 Horizon Dr Ste 225 Grand Junction, CO 81506
970-256-9100 office
970-201-3578 cell
$8000 Tax Credit… Don’t miss out
Earlier this year congress voted in the $8000 tax credit to help first time home buyers. You must close on or before November 30, 2009 to receive the credit. Those who have not owned a home in the past 3 years also qualify for the tax credit.
NAR (National Association of Realtors) is trying to extend the tax credit for 2010, and even make it better. However it is not a sure thing as of now.
With interest rates low and home price in Grand Junction, CO and nearby areas, low it’s a great time to take advantage of the market.
In some cases you can use the $8000 tax credit to help with closing costs.
Check out www.HousingMarketFacts.com for more informaion.
Andrea Haitz, Realtor
Keller Williams Grand Junction Realty LLC
