We talk a lot about avoiding stress when you’re trying to sell your home, but what about when you’re looking for a home. Chances are, you have specific requirements and a stringent budget, and finding a home within these restraints is a definite challenge. It’s important to be open to different possibilities when you’re searching for a home.
If you have a family, and need a certain amount of bedrooms, that’s one thing. However, if you find a great home in a wonderful neighborhood, but it doesn’t have an in-ground pool, perhaps leave that dream alone and address it in a few years. It’s easy to get stressed out, and frustrated when you’ve looked at several homes, and none meet your expectations, or requirements. However, remind yourself that good things come to those who wait, and the more homes you look at, the better chance you have of finding your dream property; looking at many homes is great research and experience. Accept that finding a great home will take time, but once you move in, the rewards are priceless.
At the beginning of the year (2010) it was predicted that once the Federal Reserve stopped propping up the mortgage industry at the end of March along with the end of the First Time Home Owners Tax Credits interest rates would raise considerably. What no one knew at the time this prediction was made was the coming fate of the Euro and how that would affect investments in the United States. It’s just one more indication that we truly live in a global society.
When Greece announced the current issues with debt and their inability to repay many in Europe turned to invest in US backed securities, which are considered a safe investment throughout the world. After Spain and Portugal announced that they too are having issues it has just exacerbated the Euro problem and pushed even that many more investors toward US backed securities, which in turn has kept interest rates below where they were expected to be at this time.
For the current buyer or refinance client this simply means that interest rates continue to be low, which makes it a great time to buy or refinance your home. For everyone it just shows us all that it is very hard to predict interest rates and other trend in an ever evolving global world.
Home sales were up 6% in January 2010 over the same period in 2009 with 1,033 home closings. Condominium sales were also up the first month of 2010 from last year. If you were a lucky buyer, you most likely got a better deal this year than you would have last year since the average median price in January was $159,000, down from $165,000 in January 2009. The condo medium price was $154,550; also down from $165,000 last year at this time. Another difference is the inventory numbers. They were up last year and are actually down over 275 and at the end of January there were 22,233 units on the market.
This is all very good news and it looks like the first time home buyer’s credit has worked during the past year and continues to work now. It’s really a very good time to purchase a home as prices are down, interest rates continue to hold at near historic lows and, as long as you have a house under contract by the end of April, there are government tax credits available to you whether you are a first time, a move up or move down buyer in the market. We don’t expect this “perfect storm” for buyers to last much longer so the time is now.
Over the last several months I have come to realize that many people who are just starting out looking for a home don’t really know what each person does in the process of helping them with a purchase a home. In an effort to educate and help that first time home buyer understand the process, I’d like to start with the Realtor and explain what a Realtor goes to school to learn, and is qualified to do, for the buyer they represent.
Realtors are responsible for:
- discovering what type of properties the buyer is looking for
- the price range the buyer is comfortable with
- setting up and showing the buyer properties
- negotiating on behalf of the buyer and in their best interest
- writing the contract to reflect the agreed upon negotiations
- facilitating the home inspection and termite letter on behalf of the buyer
- being a point of contact for the appraiser if sellers agent is unavailable
- attending the closing procedure with buyer, if at all possible
Though we assist you with some additional choices, if needed, for things like Title Company and mortgage information or recommendations for a good loan officer, it is the buyer who is ultimately responsible for choosing who they would like to use. If you have any additional questions about Realtors and what they will do for a buyer, please don’t hesitate to call.
This has been one of the questions I have heard on more than one occasion and would like to take a few minutes to address answer it. I know that in today’s world, as a buyer, you can easily search and find a home on the internet and it seems like it makes more since to just do it yourself. While I understand the thought process, I think it’s important for you to understand the real estate process.
Realtors are normally paid by the seller, not the buyer. There are few exceptions to this and if you are involved in one of those exceptions, you will have plenty of advanced notice. If a seller has a knowledgeable realtor, shouldn’t you have one on your side to negotiate the deal on your behalf? Would you go into a business deal without an attorney making sure you are dotting every I and crossing every t? It’s the same for a real estate transaction. This is a legal transaction and may be one of the most expensive purchases you make in a lifetime. Should you not do everything in your power to protect yourself? That’s what realtors do.
One of the things that seller’s seldom do is take a good look at their house as a buyer. The seller tends to go on and on about all the great things about the house and why they believe it should bring in a certain price. A Realtor’s job is to look at the house like a buyer would look at the house and make recommendations to the seller to make some changes so the house will appeal to a buyer right out of the gate.
Here are some of the things the seller should look at like a buyer.
- Grease stains on your driveway.
- Keeping the lawn cut and free of clutter
- Putting personal items like family pictures or your children’s drawing’s away
- Keep your closets neat and tidy
- Organize your garage
These are just a small list of things that makes buyers think the house will stay just as they see it after they purchase the house. It may not be true in practice but perception is often mistaken as truth.
