The Current Housing Market Is a Great Time for Buyers
18/10/2007 14:28 Filed in: Arizona Real
Estate
With
Prices low and sellers wanting to move on, desperate
to sell, regardless of how many concessions they
might have to make to close their deals. With more
than half a million brand new homes languishing on
the market unsold across the US and a lot of existing
homes that will take an estimated 8-9 months to sell
with an average realtor, buyers have plenty to be
happy about..
I hear of many people sitting on the sidelines waiting for even lower home prices, but they may lose out to tighter regulations in the mortgage lending market. If you’re thinking of buying a home, it may be easier to get the mortgage you want now than it is in the near future. Government officials at every level are pushing for more stringent regulation of lenders, and the banking and mortgage industries themselves are already taking proactive steps to tighten purse strings because of so many losses suffered due to defaults and foreclosures. Meanwhile the economy is sending mixed signals and the stock markets are jittery, which could signal bumpy roads ahead. If interest rates go higher or if the values of investment portfolios shrink, those who are waiting to buy a home may find themselves paying more for their loans or they may even be completely disqualified.
One more thing to consider is if you are sitting on the sideline about buying is that the real estate market in the USA is normally a seasonal and cyclical affair. The busy season is in the springtime, and that is when homes generally sell for the best prices. As summer wears on, sellers often lower their expectations of a sale, along with their asking prices. That means that those who are shopping for a home have some extra leverage if they buy at the end of the summer season.
When negotiating the sale, here are some places to ask for extra savings from sellers:
The Price:
To be taken seriously and possible get a deal that will stick, don’t lowball the seller but offer a price that is within five percent of the asking price. Get pre-approved for your mortgage and if you are buying with cash, this will defiantly improve your position.
Repairs:
Ask the sellers them to do necessary repairs before you buy. Or have them give you a cash allowance based on contractor bids, and then do the work yourself.
Closing Costs:
It is almost becoming typical practice these days that the seller assists with some of the closing costs. These will help you qualify for better mortgage terms while saving you some serious out-of-pocket money. Keep in mind that don't get to hung out on closing cost assistance unless you really need it. Think about it if you save it of the price of the house and you plan on being there a few years your even.
Appliances:
Moving appliances and furniture is expensive for home sellers, and most of the time they will throw those items in for free, so make sure to ask.
There are also other ways to save money or get extras when you sit down to negotiate. In bearish real estate markets, homeowners became rather creative with off-the-wall miscellaneous perks. During the past year, buyers in the have gotten free trips to Europe, cases of vintage wine, automobiles, boats, and other incentives. If you can think of a commodity to help close the transaction, mention it to the seller and they might go for it. For example, if you are buying your home from a member of the city symphony orchestra or the local basketball team, you might get free season tickets. Need a riding lawn mower and see one in the garage? Maybe your seller is moving to a condo where they don’t need to cut the grass and they will be happy to toss it in to clinch the sale. Buying from a chef? Maybe he or she will give you free meals at your new favorite restaurant in order to put the icing on the cake of the sales contract.
Have your Realtor provide you with updated market info because prices, inventories, and values can change quickly, but that adds another incentive to buy now while the inventory is large and the prices are cheap.
Don’t expect to see writing on the wall when the tide turns. By the time it becomes obvious to everyone that the buyer’s market is over, it will be too late to find those outstanding bargains and you will have missed the boat. If you want a home, don’t deny yourself the pleasure just to save a few possible bucks. I would suggest when you do find that deal make sure it is a home you and your family will be happy in for a few years. The flipping days have ben put on hold.
I hear of many people sitting on the sidelines waiting for even lower home prices, but they may lose out to tighter regulations in the mortgage lending market. If you’re thinking of buying a home, it may be easier to get the mortgage you want now than it is in the near future. Government officials at every level are pushing for more stringent regulation of lenders, and the banking and mortgage industries themselves are already taking proactive steps to tighten purse strings because of so many losses suffered due to defaults and foreclosures. Meanwhile the economy is sending mixed signals and the stock markets are jittery, which could signal bumpy roads ahead. If interest rates go higher or if the values of investment portfolios shrink, those who are waiting to buy a home may find themselves paying more for their loans or they may even be completely disqualified.
One more thing to consider is if you are sitting on the sideline about buying is that the real estate market in the USA is normally a seasonal and cyclical affair. The busy season is in the springtime, and that is when homes generally sell for the best prices. As summer wears on, sellers often lower their expectations of a sale, along with their asking prices. That means that those who are shopping for a home have some extra leverage if they buy at the end of the summer season.
When negotiating the sale, here are some places to ask for extra savings from sellers:
The Price:
To be taken seriously and possible get a deal that will stick, don’t lowball the seller but offer a price that is within five percent of the asking price. Get pre-approved for your mortgage and if you are buying with cash, this will defiantly improve your position.
Repairs:
Ask the sellers them to do necessary repairs before you buy. Or have them give you a cash allowance based on contractor bids, and then do the work yourself.
Closing Costs:
It is almost becoming typical practice these days that the seller assists with some of the closing costs. These will help you qualify for better mortgage terms while saving you some serious out-of-pocket money. Keep in mind that don't get to hung out on closing cost assistance unless you really need it. Think about it if you save it of the price of the house and you plan on being there a few years your even.
Appliances:
Moving appliances and furniture is expensive for home sellers, and most of the time they will throw those items in for free, so make sure to ask.
There are also other ways to save money or get extras when you sit down to negotiate. In bearish real estate markets, homeowners became rather creative with off-the-wall miscellaneous perks. During the past year, buyers in the have gotten free trips to Europe, cases of vintage wine, automobiles, boats, and other incentives. If you can think of a commodity to help close the transaction, mention it to the seller and they might go for it. For example, if you are buying your home from a member of the city symphony orchestra or the local basketball team, you might get free season tickets. Need a riding lawn mower and see one in the garage? Maybe your seller is moving to a condo where they don’t need to cut the grass and they will be happy to toss it in to clinch the sale. Buying from a chef? Maybe he or she will give you free meals at your new favorite restaurant in order to put the icing on the cake of the sales contract.
Have your Realtor provide you with updated market info because prices, inventories, and values can change quickly, but that adds another incentive to buy now while the inventory is large and the prices are cheap.
Don’t expect to see writing on the wall when the tide turns. By the time it becomes obvious to everyone that the buyer’s market is over, it will be too late to find those outstanding bargains and you will have missed the boat. If you want a home, don’t deny yourself the pleasure just to save a few possible bucks. I would suggest when you do find that deal make sure it is a home you and your family will be happy in for a few years. The flipping days have ben put on hold.