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HOW TO BUY A HOME IN A TIGHT REAL ESTATE MARKET? The real estate market in Southern California, as in other parts of the nation, has shifted dramatically from a buyer's market to a seller's market. Multiple offers and surging prices may be good for sellers. But what if you are a buyer trying to find a home when there is hardly anything for sale? Here are some things you can do to increase your odds of finding and buying the right home for you. 1. GET YOUR FINANCES IN ORDER. When the inventory of homes for sale is low, you can be sure that other buyers will be looking for the same house you are. So when the right home comes on the market you have to be prepared to jump in immediately and make a strong offer. It is important to GET YOUR DOWN PAYMENT IN HAND, so you can close quickly if necessary. MAKE A LOAN APPLICATION and GET PRE-APPROVED FOR A MORTGAGE in advance. When your real estate agent presents your offer with an approval letter from your lender, you will have a real advantage over other prospective buyers. If there are multiple offers, 95 percent buyers will always lose, So make arrangements to show the ability to put down at least 10 percent, even though you may ultimately put down only 5 percent. 2. COMMIT TO A REAL ESTATE AGENT. Find an active, responsible agent who specializes in the area where you want to buy. In a fast-paced market, many homes sell before they hit the MLS. Many sales today occur because the agent brings buyers and sellers together on unlisted properties. You are at a real disadvantage if you are working with an out-of-area agent. You need to work with someone who will call you about new listings before the public learns about them. 3. KNOW WHAT YOUR PRIORITIES ARE IN A HOME. Carefully analyze your requirements for a home. Write down what you want and need and put the essential features at the top of the list. Seeing a number of homes will help you determine your housing requirements. No home is perfect and it is unrealistic to expect to find all the features you desire in one property. You will have to compromise. 4. REVIEW YOUR PRIORITIES FROM TIME TO TIME. If you cannot find the right home in 30 days, take another look at your priority list. You may have to consider different ideas. For example, if you passed on a home you liked because it needed new paint and carpet, take another look at it. Be open to looking at the inside of homes that are unappealing from the outside or are different styles than you had in mind. Look at homes in a different location. Sometimes going just a few miles to an adjacent community opens up a whole new selection of homes for sale, often at better prices. 5. RESEARCH EXPIRED LISTINGS AND "FOR SALE BY OWNERS". Ask your agent to check on expired listings to see if there is one that might work for you. Sometimes sellers of expired listings take a break from being on the market. They still want to sell and they plan on going back on the market again. Drive the neighborhood you desire and scour the classified ads to locate a "for sale by owner". 6. WHEN YOU FIND THE RIGHT HOME, ACT QUICKLY. A well-priced property in good condition will draw many interested buyers the very first day on the market, so when you find the right home, sign an offer and presented it immediately. Out-of-town buyers or those who have to travel, are at a real disadvantage. They might miss out on the right home. To prevent frustration and disappointment, make that sure a close friend or family member knows exactly what your are looking for. If the right property comes out when you are out of town, someone can view it, describe it to you on the phone, and if it sounds right, you can make the offer by fax. 7. MAKE YOUR OFFER AS CLEAN AS POSSIBLE. No seller will take a contingency in today's fast-paced market. Be sure to make the performance time periods short, so interview home inspectors and decide whom you want to use in advance. Then you'll be ready to have the physical inspection completed within a few days of acceptance. The more flexible you are in your search criteria, the easier it will be to find a suitable home. If you cannot find the ideal home, find one that comes the closest to meeting your needs and buy it with the idea of moving in a few years. Just be sure you buy a home that will be easy to resell when the time comes. If you have any question, please click here to send your question, and I will reply your question with in 24 hours. |
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