Make Hay While the Sun Shines!
#6 Make Hay While the Sun Shines!
While others are on the fence, smart buyers are actively making astute purchase offers and winning!
Smart buying never goes out of style. Many millionaires in our country made their money during the depression when they were able to snap up bargains. While most buyers are on vacation enjoying summer or feeling insecure about the market – now is a great time to make your move.
By the time uncertainty about the debt crisis or other hot political topics fade, you will be in your home and enjoying the benefits.
Have home values bottomed out yet?
The question of whether home values in your areas are truly at their lowest point is really a moot one. A good trader never tries to pick the bottom of the market. Instead, a wise investor picks their ‘entry point’ based on the ideal price and timing and researches what they are buying thoroughly before making their move. If you wait for the so called ‘bottom’ you could miss it and things will be headed up again.
Timing your money!
The other big factor for most home buyers is the price of money you will be ‘buying’ to purchase your home. 30 years is a long time to be obligated for anything so if you can snap up a great low rate now (before the home market improves) AND a great home value you will win on both counts. If you wait until the market improves, I can assure you money will also be more expensive. It’s easy to wipe out any savings advantage on your purchase price with a higher interest rate loan. I’d be happy to run some cost comparisons for you. Just call!
Do your homework!
Once you have targeted your price range and ideal neighborhood you must keep on the hunt until you find the right home. Sure there are many people in our area missing out to cash sales on some homes. Don’t get discouraged. Make sure to watch the listings in that area in your price range. Set alerts with your Realtor and stay on the lookout yourself. Many homes in certain price ranges are selling fast so you can’t afford to be casual about it. Be proactive and let your Realtor know you are serious.
The most essential research is knowing what you can afford, where you want to live and having a firm grasp of your financing and management costs for how long you intend to own the property. Naturally, it will help to be fully preapproved by a lender so you can pounce.
I’m happy to provide a Priority Buyer Letter ® with your application. This will convince the seller to accept your offer first!
When the buyer is ready the home will come!
Needless to say the search can be an emotional roller coaster. One client told me last week she was starting to lose hope after so many offers had been declined (for cash buyers). So if this is you try to be more ‘business like’ about your search. Set aside a time of the day (early is best) when you look at online listings and touch base with your Realtor if you see something.
Reserve one afternoon a week for walking, biking or driving around your target neighborhood to see what’s on the market. As you know, private sales are often not listed in the newspaper so you are likely to find them yourself first. Your Realtor will also be the best person to negotiate for you with a private seller so keep them informed of your interest in any home.
Consider Lease to Own:
SHHH some Realtors don’t like this idea because they often fall through (they don’t get the sale). However, in some cases a shop worn sale property may be just the home to rent for a year or two as your perfect foot in the door with a Lease to Own contract. If the seller is exhausted from a long time on the market, chances are they would welcome the income. Ask an attorney to write up a contract if you don’t have a Realtor working for you. In my book: if you don’t ask you don’t get. So ask by all means!
Lease to Own may be perfect for anyone with credit impaired situation following a short sale or foreclosure. In fact - it could be your best bet to nailing down a great rental history – AND the home of your dreams in one move. Be sure and clarify on the contract that any improvements you make are credited toward your closing or some other recognition of your sweat equity into the home while you live there. Besides, even if this home does not work out long term, you will have the experience of finding out if it’s right for you.
