Sunday, April 14, 2013
Are You a Buyer in Today's Market?
So, you have decided to take the plunge into home ownership? Are you one of those buyers that have sat on the sidelines waiting to buy?? Waiting for the exact right time to jump into the market? Thinking prices were coming down...waiting for that perfect home? Or are you a renter who realizes that now may be a better time to buy because rents have gone through the roof?
If so, then you need to be prepared for today's market!
Why buy now? Buy now because rates are low and money is cheap! If you are buying today in the Spring 2013 market place then there are something you need to know!
In most markets right now you are in what we call a seller's market. Do you know the difference between a seller's market, a normal market and a buyer's market?
Sellers Market, a sellers market is when the demand is higher than the supply. What does this mean for buyers? It means that you may have to pay more to get what you want. This is an ideal situation for sellers because they can sometimes get more than what they want for their home. You can also spot a sellers market when there is less than 6 months supply of inventory.
Buyers Market, a buyers market is the complete opposite of a sellers market; it is when the supply is high and demand is low. This is a great market for buyers because there are so many choices that you can usually pay less for what you want. In a buyers market there is more than 6 months of supply of inventory.
Normal Market, a normal market is when the market is balanced. This is when the playing fields are equal, there is no tipping of the scale in either direction.
OK, so now you know the markets. It is important to note that there can be different markets in the country or even in the same state. It is also important to note that markets can change quickly or slowly and it can be hard to predict. What affects what types of market we are in? The economy. Plain and simple.
OK, so let's get back to the matter at hand...being a buyer in today's market.
Be Prepared. Do your homework. Meet with a mortgage lender. The best way to go about this is to ask friends and family for referrals. Ask who they had a good experience with, etc. Get pre-approved and know what your comfort level is in owning a home. Do not bite off more than you can chew. Consider your options, do you want a fixed mortgage or an ARM? Are you a first time home buyer? Then ask what programs are available for first time buyers. You need to be pre-approved so you can compete with other buyers in the market.
Meet with a real estate professional. OK, now that you have a pre-approval in hand go and interview some agents. Again, ask family and friends who they used and if they had a good experience and have them define what a good experience means to them and see if how it compares with your expectations. Next, meet with the agent for a buyer consultation. Find out what the agent will do for you. A buyer consultation is complimentary.
Find a home. Now that you have all your ducks in a row...you are ready to look at properties for sale!
I found a home now what? Make an offer. If the home has been on for a nanosecond then be prepared to pay asking or higher. Again, you need to be comfortable with the numbers. But in this Spring 2013 market you need to realize that you maybe in a multiple offer situation and that the buyer with the best terms will be the buyer that will get the home. The best terms can mean different things to sellers. For example, timing may be the biggest factor. A seller may want to close in a few months versus the usual 6 weeks it takes from offer to close. So, if you offer the sellers the best terms for them then you may just be their buyer! Good luck!
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