I did a post a few days ago about people just sitting on teh sidelines. Now I’m seeing a retreat of active buyers, too. This seems to be caused as much as anything by the recent market meltdown, combined with the increased difficulty of getting a mortgage these days. Sorting out the marginal buyers is probably OK, if for no other reason that their own good; however, regular buyers who have the wherewithal to get a mortgage should not be heading for the sidelines, too. Now is one of the best time in the last few decades to be a home buyer. Prices are way down, and the rates for mortgages are still good, for those who can get one.
So, if you’ve saved and planned and are ready to be a homeowner, stay in the hunt. The inventory is very good, with about 30-40% of it comprised of foreclosed homes. Many of those homes are trashed or need major work, but many others are just fine and move-in ready. Put a good Realtor® to work for you (HINT: you already know one) and get out there and look at houses.
Those who are timid in this market; those who try to wait until everything is perfect; those buyers are going to have a bad case of the “coulda, woulda, shoulda’s” when they realize that the missed the really good deals. Here’s what it takes to win in this market:
Get a good Realtor (we’ve already discussed that – I’ve got you covered there)
Get a good Mortgage rep (I can recommend a great one if you need one) and get pre-approved, not just pre-qualified.
Get out and look – there’s lots to see right now
Don’t be afraid to make an offer, even if it seems low; you’d be surprised what banks and private sellers are accepting right now
Get a good home inspector and insist on a thorough inspection with all utilities on and the house de-winterized for the inspection
Get a good handle on the prospective costs of any needed repairs (a good inspector will be able to estimate those for you, but get a specialist if needed, for estimates for items like a roof or a furnace)
Negotiate getting the repairs made or getting the cost of them off the price or be prepared to make a decision on whether to go ahead with, or walk away from, the deal
Insist on getting an extended coverage or Eagle Brand title insurance policy on any foreclosed home – that will cover a multitude of potential issues
Remember that old sports saying that you can’t win if you not in the game. Now is a great time to be a buyer. So, don't go into hiding now.Get in the game and have some fun.
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