Wednesday, October 20, 2010

What The Stats Mean For LOCAL BUYERS

Distressed Sales. Buying a home today in our area, you might be tempted by the lower prices that distressed homes (pre-foreclosure, foreclosure, etc.) offer. It’s good to know that competition is heating up for these properties, and you are likely to be bidding against investors who are able to offer all-cash or significant-cash deals, making their purchase offers more inviting than yours. We can help you craft an offer that compares favorably against other buyers.

Inspections. The homes offered at discounts are likely to require repairs -- some known and visible, others unseen. If you cannot get a complete inspection on a questionable home, be prepared to walk away. Smart buyers should plan for additional costs and weigh them against move-in-quality properties.

Short Sales. Short sales may also be inviting, but if you have a short timetable to move due to an impending lease end, home sale, job relocation, etc. be aware that short sales are not always quick transactions.

Lower-End Buys. If you’re in the market for a smaller home or investment property, act fast. The inventory of smaller, more affordable homes is in shorter supply in many areas. We can help you determine what smaller homes are selling for and make your offer inviting to the seller.

Higher-End Buys. Larger homes with bigger price tags tend to sit longer in this market. Fewer upper-tier home buyers and higher costs to qualify for jumbo loans tend to reduce demand for these properties today, and fewer buyers want to take on bigger homes. If you’re in the market for a home larger than the median size home (2,100 square feet in 2009), you might have the most room to negotiate the price and terms of sale.

Mortgage Pre-Qualification. Remember, qualifying for mortgages at the lowest interest rate means you need an excellent credit score and a good down payment. (FHA loans have less-stringent qualifying requirements.) As a buyer today, be sure to get pre-qualified for a mortgage before you even start shopping for a home. If you are purchasing a condo, second home or investment property, or you need a jumbo loan, you are likely to need a higher down payment.

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