DO YOU NEED HELP COMPLETING THE BUYING PROCESS?
To My Readers:
I've been away a while, butÂ am back, ready and eager to share my real estate expertise with you. In the coming weeks, I will be discussing the following topics and more:
How Powerful WOMEN are in the Decision-Making ProcessÂ of Buying and Selling;
What Added Values a Real Estate Professional Brings to the Process;
7Â Deadly Mistakes SellersÂ Make When BringingÂ PropertiesÂ to the Market;
TheÂ Consequences of Holding OutÂ in Hope ForÂ a More Favarable Market;
Are Home Prices on The Upside?
What Happens When Interest Rate Start Climbing!
Look out forÂ answers to all ofÂ your real estate questions, concerns or issues. Keep coming back forÂ valuableÂ TIPS to the BUYING AND SELLING process!
Pierre King, Associate Broker
Weichert - H P Greenfield.
Â Â Â Â Â FIRST-TIME HOME BUYERS, DO YOU NEED HELP?
No doubt many of you are shaking your heads in disagreement! Yet, how easily we forget how time slowly creeps up on us. Itâ€™s not important how much time you have; the key is what you do with the time youâ€™ve been given. So, with this grace period from Uncle Sam, you must prepare in order to beat the deadline! It may seem impossible, but nothing is!
Nervous, Arrogant, Cautious, Excited -- are these words familiar? First-timers, these words may seem contradictory, but sum you up. Evidently, youâ€™re many things at once. You are:
Â· Afraid to pay too much;
Â· Excited to get a good deal;
Â· .Confused because of the number of homes/the many choices; and
Â· The circumstances under which sellers are selling â€“ short sales and foreclosures.
But thatâ€™s OK; all will be well, with the necessary guidance. Letâ€™s thank Uncle Sam for extending the $8,000 tax credit for first-time home buyers, as well as $6,500 for second-timers as start-up capital. However, the end is quickly approaching! Whatâ€™s next?
Let us review some false assumptions that can derail first-time home buyers.
Â· Â Â Â The Housing Market Is Weak
For many months I remained positive about selling homes in todayâ€™s housing market; many others concluded otherwise, mostly local and national television stations that kept reminding us of how terrible the market was. Were homes selling? Definitely, yes! The difference was that the number of transactions per month declined compared to previous years. Those buying in such a market did so because interest rates and home prices were low. Were they smart? Absolutely! They realized the environment and who they were competing against, wasted no time and bought.
Who were their competitors? The by-standers who were timing the market, sitting on the fence, anticipating that prices would decline even further, and hoping they could use their homes as ATM machines! While they waited, the rules on how banks were lending funds changed, and became tighter.
First-timers: inventory is gradually running low, and time is against you. So, if there are others who are attempting to beat the 11:59 p.m. April 29th, 2010 tax credit deadline, you must be in a legal and binding contract. Therefore, why wait? My advice to you: Buy before the rush! If you canâ€™t beat the rush, always take this into consideration.
Â· Â Â Â I Need to See All the Options
Many first-timers proceed with excessive caution. Why? They tend to believe that thereâ€™s an infinite inventory, which feeds their desire to find that perfect home. They, therefore, procrastinate, not realizing how confusing it becomes after seeing so many homes. To avoid this predicament, you must make sure your real estate professional arms you with facts and data, e.g., which homes have sold in the area; how much they sold for; what types of interest rates are available; and how low are those rates!
Todayâ€™s rates are comparable to the 1950s; they are so low, the only direction they can go is up! If they reach a plausible 7Â¾% -- which is still considered as low -- prices may have to go down another 15% to make up the difference in the monthly payments.
Â· Â Â Â Iâ€™ve Found a Bargain
First-Time Buyers: Itâ€™s true that affordability is at a record level today, but many buyers need help putting price into perspective. I agree there are many deals, but what are you getting for your money? If the market value of a home is $420,000, is selling for $325,000, but requires additional fix-up at a cost of $60,000, would you rather buy this home or purchase one at $400,000 that requires no work? This is the dilemma most first-timers face. Often, they have to be ferried around, looking at house after house, before arriving at the decision that they donâ€™t want to do so much work. To avoid this do the math!
First-timers, time is of the essence! Before going out to look at homes, have your real estate professional give you a buyerâ€™s consultation. At that consultation, where you will bring along your supporting documents, and a list of what you are looking for in a home, make sure to establish the following:
Â· Financially, how much you qualify for
Â· What type of property, and the location, etc
Come prepared to spend at least 2 hours.
Remember, this could be a test. The Real Estate professional may be trying to establish whether or not you are a serious buyer.