How to Buy in Today’s Realty Buyers’ Market
Savvy investors are flying under real estate radar these days. They know that NOW is the time to buy. Not only are prices low and going lower, but interest rates are following suit.
How can you get in on this? First, get a good Realtor who is willing to walk you through the steps. Get your finances in order. Talk to a lender or two. Figure out your buying options.
Then, simply tell your Realtor what you want to do and set him free. Follow him into every nook and cranny he can find. Ask lots of value-related questions. Figure out which homes best fit your needs, then go in for the kill.
Fresh information is important in profiting with today’s real estate Buyers’ Market. But if you are to take full advantage of the situation, being prepared to buy is crucial.
If you and your Realtor stay alert with FRESH INFORMATION, you can hardly make a bad decision. Don’t buy into negative news clips. The louder news agencies declare real estate is down, the more the timid will freeze in position, making good buys inevitable.
Buying now, while markets are down, works especially well if you are moving up in price. Real estate guru, John Foltz points out that when the market does turn around, you’re much better off gaining equity in a pricey home than an economy model.
And, if you are disappointed that you missed the recent market peak, look at these facts. One Scottsdale home owner wanted to move last year. The home she had to sell was $400,000 and the home she wanted to buy was $600,000, a difference of $200,000. This year, her home is worth less, $360,000 but the home she still wants to buy is now $540,000, a difference of $180,000. Look at that – she SAVED $20,000 by riding the market down in both properties. Luckily, the home she wanted was still available, so when the prices came close enough for her loan limits to kick in, she pulled the trigger. Viola! New home! Big savings (that can happen for you, too)!
Even better, when the realty market does recover her newer, higher value home will appreciate a much larger amount than her older home.
“WHEN to buy?,” seems to be the next logical question. And, here is the answer . . . when you find the home you love and you can negotiate a comfortable price, THAT is the moment to buy. Why? Consider the most important issue - you’ll be living in the home you’ve always wanted for at least a few years, riding the market recovery UP!
When selling your old home, aim toward a competitive price-per-square-foot (sq ft) so you can generate traffic. Offer cross-agent bonuses to lift foot traffic. Ask your agent to host open houses. Consider buyer perks like interest rate buy-downs. Plasma TV’s help many homes sell these days . . .
You don’t know where or when you buyer will show up. You don’t want to miss him, because your first buyer is likely to be your best. Once you secure a sale of your home, “take it out on the seller” of your new home by passing through your Buyer concessions to your Seller.
Buying at the ebb of the market is smart in any investment opportunity. In real estate, it’s better than gold, because real estate is safe. It has the longest and strongest long term appreciation of any investment field. Plus, being able to upgrade your lifestyle is a big bonus. And the added appreciation you will enjoy on the larger value will help enrich your portfolio.
Your Realtor can show you how to tie up the home you want until you sell the home you have. Again, if you drive a great deal buying, you can offer great concessions on selling. Let your seller pay part of the bill!
Fuel your quest with fresh information. Pay keen attention to the money market, loan rates. Stay in touch with your lender, ask him to keep you posted if when your loan situation changes. Insist on frequent MLS input. Good Realtors can update you almost daily.
Don’t miss the boat. Turn a deaf ear to words of pending doom. Will that happen? Of course it will, but waiting to buy in today’s market atmosphere translates to pure greed. Chances of hitting the bottom of the market and the best interest rates are very low. One pundit put it like this, “if you wait to buy Microsoft until they release Windows, it will be too late.” Now is the time to buy real estate and here are some handy tools.
Get prepared with your finances
Get an enthusiastic Realtor you can relate to
Figure out where you want to live
Get excited enough to go look at homes
Make value judgments as you go.
Prepare to make concessions, trade-offs
Decide which homes best fit your wants and needs
Don’t get in a hurry
Be decisive and consistent
Deal in good faith but be prepared to walk away
Pack your bags . . .
It’s that easy!