For most people their home is their largest asset. We look to empower you with knowledge when it comes to buying or selling real estate, investing in and evaluating real estate.What should you do in order to sell your home for the most Money in the fastest time possible? What are the most common mistakes people make when buying a home? Is now a good time to invest in real estate? What should you look for when buying a second home.We will help you answer these question and many more …
Wednesday, February 8, 2012
4 steps to buying a house in 2012
Q: I am on a mission to buy a home. I've wanted to own a home my entire
life, and thought I would miss the opportunity to buy while the market was down,
because I had no real savings when the market crashed. I think I'm ready,
though, and prices still seem low. What should I be doing now to make this
happen in 2012?
A: Let me count the ways -- I mean, the things -- you can and should be doing
now if you want to buy this year. The recession has done lots of favors for
buyers-to-be, including dropping prices and interest rates to bargain levels.
But it has also created a lending and housing market climate in which loans are
tough to get, tensions about buying into a down market run high, and
transactions are harder and longer to close than they have ever been.
If I were talking to a friend who wanted to throw a New Year's 2013 party in
her new home, here are the things I'd tell her to do, stat:
1. Fix credit problems. More deals than ever are dying on the vine,
and credit problems are a top reason home-sale transactions fall out of escrow.
Detect and correct errors on your credit report now by reviewing the federally
mandated free reports you can get at AnnualCreditReport.com.
2. Study up. Do some research, both online and offline, into things
like: Areas: Start your online research into decision points like tax rates,
school districts, neighborhood character and even prices in various areas. Check
out NabeWise.com for some local
insight into neighborhood flavor and personality.
When you start connecting with local agents, ask them to brief you on
neighborhood market dynamics. They can give you a deeper view into need-to-knows
like how long homes typically stay on the market and whether they generally go
for more or less than the asking price, so you can be smart about how you search
vis-à-vis what you have to spend. Agents: This is the perfect time to ask your family and friends for a
referral to an agent they know, have used and love. Then, follow up by doing an
online search for the agent's name and seeing what sort of online reviews and
activities you find. When you've narrowed the field down to a few, call them up
and set up a meeting to find out if you're a good fit. Distressed properties: In some areas, more than 40 percent of the
homes on the market are short sales and foreclosures, and they involve a very
different timeline and set of facts than traditional home sales. Read up and
talk with the agent candidates you interview about what you should expect from
these types of listings, to minimize surprise and manage your expectations way
3. Save even more. Sounds like you've worked hard for a number of
years to save enough cash that you think you're in the clear when it comes to
funding your down payment and closing costs. Studies show that after months of
saving, people often let up and relax into a spending season. Even at your early
stage in the process, it's easy to start noticing and buying the furnishings and
touches you want to install in your new home.
While I don't want you to feel deprived or forgo amazing and affordable deals
on things you know you're going to need, I assure you that no matter what amount
of cash you have on hand, when you start house hunting, making offers, closing
your transaction or moving in, the time will definitely come when you'll wish
you had more.
You might want to ratchet up your offer a bit to best another buyer, or you
might just end up with a place that needs a little sprucing up. It might be
months before you know exactly what you'll need extra cash for, but now is not
the time to press the gas pedal when it comes to your monthly spending.
4. Purge. Now's the time to sell, donate or give away as much of your
junk or, excuse me, precious personal possessions as you can. Use the proceeds
to pad your cash cushion, or tuck the donation receipts away for your tax
records next year.
Start here, and chances are good that your house hunt -- and purchase -- will
be in full swing by spring, if not sooner.