My New Blog

Summer buying

With the summer Sun also comes a entirely new group of home buyers … “Honey, it’s sunny and there are open houses everywhere, let’s just look around.” The “beginning of the end” as they say it. So what do people need to know before they get pumped up to tour?

1. The Bottom: There is no way to know when we will hit this imaginary bottom everyone is talking about. So just think about the market as fluid. Prices are lower now than they were a year ago, which means great deals are out there.

a. Selling in a market like this is not as hard as you might think. Yes, you will not sell it for as much as you would have in 2006, but if you are buying again, as long as you buy smart, the lost equity will wash with your new home purchase. It’s just money in your left pocket being moved to the right.

2. Get realistic about home Value’s: I’m working with a handful of buyers right now that seem to think they can low ball every homeowner … a few of them paid the price of a Tax credit because of their unrealistic expectations.

a. Most homes are marketed by a realtor who wants it to sell. (remember they don’t get paid for taking the listing, only for selling it) So the price should be close to its CURRENT market value. Yes, there are exceptions to this rule, but 99% of the time you will not get a 20% discount. In some cases, smart realtors will even get their home owners to list a home under its value to get it moving.

3. Shortsale and bank owned homes can be a pain: If you are under no time constraints and would like to pursuit a shortsale or bank owned home, this is what you need to know.

a. Be patient, these types of purchase’s can take a while. I have worked with buyers who have waited MORE than 6 months to get a Counter offer. I have also seen it just take a day or two.

b. If you want a good deal, don’t limit yourself to short sale and bank owned homes. Last year, the 3 deals I thought where best came from a traditional motivated seller.

4. Don’t wait to get Pre-Approved: There are still great and flexible loan products out there for qualified borrowers. You are not doing anyone justice by waiting to get pre approved.

a. Do not be one of the buyers who incorrectly assume they can buy, only find out that they are a few months away from qualifying. Time is the cure for all things financial. Your loan officer should be able to help you create a plan for homeownership if you are not qualified yet.

b. Make sure when you get pre-approved, it’s from someone local who you trust. I am constantly picking up the pieces after an “Online” mortgage company dropped the ball. Loan officers that you call on a 1800 number are ORDER TAKERS, not mortgage professionals. A lot can go wrong if you’re not working with someone who understands your local market.

If you are looking to get pre-approved, please feel free to contact me.  We will have an answer back to you within 24 hours.