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.
Showing posts with label first-time home buyers. Show all posts
Showing posts with label first-time home buyers. Show all posts
Thursday, October 16, 2008
Sunday, November 18, 2007
Happy first-time buyers...
Perhaps the happiest buyers that I’ve worked with lately are the first-time buyers who waited until now to get into the market. They are finding such unbelievable bargains that many are ending up in homes that would have been their first move-up home a few years ago. One has only to look at what you can buy these days for $100-150,000 to see what is making these people so happy. Homes that would have been $180-200K (maybe more) a year ago are selling at that level now, albeit mostly as foreclosures. Some need repairs or lots of remodeling/redecorating; but, that doesn’t seem to scare off most of these buyers.
Of course anyone coming into the state from almost anywhere else is finding Michigan to be a great place to buy a house, too. That’s all relative, I suppose; since, even with our currently depressed prices, Michigan housing is still higher than many of its Mid-West neighbors. What still shocks most of these people are the high taxes on many of the homes that they look at here. The assessed values have not tracked the prices down yet and many of the foreclosed homes are now taxed at non-homestead rates; so buyers will get hosed for the extra taxes until they can get the homestead tax break and maybe fight with the local assessors over the taxable value.
The few people around who feel secure in their jobs and are ready for a move up the home ownership ladder are also happy with how much house they can get these days for a relatively small increment in their monthly payment. Of course they still have the issue of how to get rid of their current houses, so maybe that’s a wash.
So, amidst the doom and gloom of the market there are people walking around with big grins on their faces, because they just bought the house of their dreams for much less than they thought it would cost. Let’s hope that they can hold on to those homes for the 3-4 years it will take to make sure that they break even on a future sale; otherwise, they will join the frowny faces on the sell-side of our business.
Of course anyone coming into the state from almost anywhere else is finding Michigan to be a great place to buy a house, too. That’s all relative, I suppose; since, even with our currently depressed prices, Michigan housing is still higher than many of its Mid-West neighbors. What still shocks most of these people are the high taxes on many of the homes that they look at here. The assessed values have not tracked the prices down yet and many of the foreclosed homes are now taxed at non-homestead rates; so buyers will get hosed for the extra taxes until they can get the homestead tax break and maybe fight with the local assessors over the taxable value.
The few people around who feel secure in their jobs and are ready for a move up the home ownership ladder are also happy with how much house they can get these days for a relatively small increment in their monthly payment. Of course they still have the issue of how to get rid of their current houses, so maybe that’s a wash.
So, amidst the doom and gloom of the market there are people walking around with big grins on their faces, because they just bought the house of their dreams for much less than they thought it would cost. Let’s hope that they can hold on to those homes for the 3-4 years it will take to make sure that they break even on a future sale; otherwise, they will join the frowny faces on the sell-side of our business.
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