 Tips to Buyers - In a Seller's Market!
The real estate market recently shifted in 2013 in favor of the seller. Yet as a buyer in today's market, it is still necessary to know your game before purchasing a home. After 2008 buyers controlled the market and we saw declining prices and over supply of inventory. At the start of 2013, the real estate market has become more favorable to sellers and we are now seeing the result of that as evident of the prevailing bidding wars. Sellers can now set any asking price and have their home sold within a few weeks. This has naturally caused buyers and many industry insiders to state that the real estate market may be heading towards a mini housing bubble. This is not really the case as what we are seeing is more of an adjustment to reflect the current state - more demand but little supply. One thing that is a direct result of this is the fact that home buyers and investors who are competing for fewer homes have caused what we may call bidding wars and thus higher home prices. This is why hiring a real estate professional is crucial in today's seller's market. The real estate agent can spot the great deals when they come up in the market. A real estate agent will also conduct the market research necessary to strategize the winning bid for the buyer. As real estate professionals, they have the experience and market savvy as well as the knowledge to negotiate effectively, to ensure a successful real estate transaction. This should be a refreshing thought to those who have been searching in the market for some time and have yet to find that perfect home. Basically, with loan rates at all time low, this is still the perfect time to buy a home. So how can you be ready to grab that dream home when it comes up? One thing is to plan in advance, and make sure that your financial picture is in focus and find out your credit score. Repair it if necessary. Get pre-approved for a mortgage There are many options out there still. One of the loan options are FHA loans that can provide loans to home buyers at only 3.5% down payment. Check with a FHA approved Broker or Loan Officer for current rates and guidelines. FHA loans are a good resource for first-time homebuyers, and buyers who may not have a large source of downpayment. FHA loans also protects the home buyers in a way - as they are very concerned with the condition of the home. FHA loans have some strict guidelines in the condition and proper building code compliances of the subject home. The subject home must meet the FHA guidelines prior to approving a loan. There are other loan programs, provided by some cities or counties, to assist first time homebuyers or their employees who would like to purchase a home within their jurisdictions. And once again, the next thing to note, is to find a reputable licensed real estate agent who can help in the home buying process. With the assistance of a real estate agent, the home buying process becomes fairly smooth and stress-free. The real estate agent can recommend a reliable and experienced loan officer, who can also help the buyers in advance in procuring a loan pre-qualification, or even, a loan pre-approval. But remember - always try to work with an experienced agent that is familiar with the area. Also, try to find a Realtor, or someone who is a member of the California Association Of Realtors. These real estate agents are not only licensed but are well versed in the code of conduct and ethics that every professional real estate consultant should know or adhere to. A good real estate agent can do "due diligence" for the home buyers - making sure that all things are disclosed about the property, order inspections, if necessary, negotiate and conduct contract administration, and most of all, making sure that the escrow process rans smoothly, and hassle-free! A hard-working real estate agent or broker, can make a buyer's home search an easy one. Agents have the tools and resources to help find the ideal home in a much shorter time. Agents also have the expertise in their own respective market areas, and are knowledgeable of the current real estate trends and new incentives for home buyers. There are so many advises and recommendations one has to remember in buying a home. An experienced real estate professional can make it easier and smoother, and this will take the stress out of home buying. But for the home buyers, there are 3 things to remember....Bottom line - when buying a home, it's always.... Location, Location, Location!
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