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I want to Buy A House But Where Do I Start? Pt2

Real Estate Broker/Owner with Premier Homes Realty 607004

June 18, 2015 01:09 AM

I Want to Buy A House
Where Do I Start? (Pt2)

After you've found a Realtor to work with, discussed your financial situation with a lender and received your pre-approval letter, you are ready to begin getting out and looking at houses. Hopefully by this point you've already researched areas where you'd like to live and the type of home you're interested in.

Schedule a meeting with your Realtor to discuss your wants and needs in your new home so they can begin sending listings that fit your criteria.

Types of Resale Homes

It is important when you are searching for homes you understand the different types of resale types. Why is that important to you? It can affect the length of time to acquire the property or the process in which you must follow in order to purchase. See resale types below:

Standard: This house is listed for sale by the home owner and will be a normal sale between the Buyer and Seller. No third party involved.
Short Sale: The house is listed by the home owner, however the owner will require approval from a third party (their mortgage company) before the sale can occur. The market value of the house is less than the amount they owe on the mortgage. It can take up to 3+ months just to obtain the third party approval of the sale.
Foreclosure / Bank Owned: The mortgage company has taken possession of the property from the home owner and now the seller is the bank.

There are benefits to seeking all three types of homes, but based on the timeframe you need to move will determine which property type will be ideal for you.

Next, you should start scheduling appointments to see properties of interest with your Realtor. You should consider taking a list of the things you are looking for in your new home so you can reference your list while you are walking through the properties. Taking pictures or video of the homes you like will allow you to review it again at a later time so you will not forget the details of the home.

Buyers Market vs. Sellers Market

There are various benefits and disadvantages for Buyer's and Seller's in both market conditions. The principle of supply and demand will determine which market we are in at any given time.

Buyers Market

Most consumers seeking to purchase a home would want to be in this situation. This means the supply of homes are higher than there are Buyers. As a Buyer, you have a better bargaining position because there isn't as much competition from other Buyers wanting to purchase. When you submit your offer on a home, it is less likely there will be other offers on the same property unless it is priced below the market value, is the cream of the crop of the inventory or it just came on the market.

The demand for houses are down and the supply of houses are up.

Sellers Market

A Seller's market means there are more Buyer's looking to purchase a home than there are houses listed for sale. If you are a Buyer searching for a house in a Seller's market, be prepared to make a decision quickly if you see a house you like. Many houses are going under contract within the first few weeks of being listed. This means many Buyers are offering their highest and best offer upon submitting their FIRST offer. A Seller can be more selective in the offer they chose and not have to give up too much in order to sell their home.

The demand for houses are up and the supply of houses are down.

So before you start your home buying/selling process, make sure you understand the market you are in. By knowing your market, it will help you determine what type of offer you will submit.