BUYING A HOME IN TODAY'S MARKET

To buy or not to buy? So many people are leery of purchasing homes today due to their being skeptical about the economy.
While lenders are being far more selective in regards to who can get a home loan there is still lots of money available for qualified buyers.
So what is a qualified buyer? Most people think they are qualified to purchase a home if they simply have a job and the desire to purchase a home. Wrong. Being qualified means, you have the correct income to debt ratios, and that you do have employment or a regular verifiable income and that you have a credit rating that qualifies you to purchase. Most Realtors (pronounced Real tors, not real a tors, that really bugs Realtors ) . will not show homes to buyers who have not been pre qualified through a lender.
So what do you do if you have the desire to purchase a home and you see one that just suits you ?
Your first step is to pick ONE agent to work with. Picking one agent? You ask why you should work with just one agent, and there are many reasons.
1. Agents are loyal to buyers and sellers and their customers and clients should be too and will greatly benefit by finding ONE agent they are comfortable with. If your thinking is the listing agent can get me a better deal, you could be loosing out because that is usually not the case, a seller has a bottom line and no agent can make that bottom line get better. An agent might be able to negotiate with a seller regarding commission, but that negotiation has to be approved by both agents so the listing agent is not necessarily the best one to show a home or by any means the worst. But you do need an agent to help you so read on.
2.Why call a different agent every time you see a home you are interested in, they all have access to every property listed no matter who the listing company and agent are. For the most part for sale by owner listers are willing to work with an agent. Actually most for sale by owners are not familiar with all the paperwork or the legal ramifications that might occur selling a property on their own, which is a whole different blog.
3. When you find the agent you think you might be interested in, please ask questions. Interview the agent. Ask them what their plan is to help you . After all, this is the most major purchase you will make in your life time. If the agent skirts your questions or doesn't act like they have time for you, move on, there are hundreds of agents who want your business and are easy to talk to. I am one of those agents. I do want your business.
4. When an agent realizes you are serious and not just a "looky loo" who wants to view homes for decorating ideas he or she will be on the look out for homes that have the amenities you desire. That agent will help you connect with a lender , answer all your questions regarding the process of buying , will search for properties that match what you have stated you desire,set those appointments, view the homes with you , help you through the offer process, all the way to the closing.
5. If you are not a little bit concerned about the buying process you are not normal. It is not realistic to tread in waters you are unfamiliar with involving this amount of money and commitment without some concerns. So if buying a home in this market suits you then by all means find a Realtor and stick with them.
As for the market, it is going to vary from one area to the other in many ways , with price and location being the buyers most usual top concerns. Average prices in the market place have changed in the last three years and buyers are benefitting in many ways because of it. A seller and their agent determine what the listing or marketing price will be, hopefully through research of the market conditions and other property sales in the area and not by what the seller HAS to have to do what they want to do once they sell. While that is an important factor to the seller it has nothing to do with what the actual fair market value of their property is and while a seller might "take a hit" on selling their home at this time they are making it up on the buying side. Market price can also be discussed in another blog. Ultimately, it is the buyer who really determines value by what they are willing to pay for a property. At this time the buyer may desire to make an offer and it may or may not please the seller. A seller has the option to accept an offer the way it is written , reject it totally and not respond at all and let the time frames for acceptance expire, or counter . A counter does not necessarily have to do with price only and may include terms, conditions, what items stay or not, what items the buyer and seller agree to pay for in connection with the purchase .
Generally though at this time a buyer is going to be able to get more for their money at this time and with these market conditions. Property for sale inventories are up and a buyer has a lot to pick from in most instances. However, this does not mean a buyer should "wait to see what happens, and if it is still here in a week we might write an offer" What a buyer needs to be told and listen to is that while the market is flush with properties to choose from, it is also flush with qualified buyers.
Buyers , write your list of questions, interview an agent, have them give you a list of lenders, talk to the lender , find out about down payment assistance, closing costs, the whole ball of wax and you are on your way to home ownership.
If for some reason, you do not qualify at the time you talk to the lender, then find out what you need to do to either qualify for more house, clean up your credit or fix what the problem is. Your credit can be repaired and you can buy a house following a bankruptcy and or a foreclosure.