Amazing, there really are some buyers out there! However, my personal experience is that they are treading more carefully than ever. Many of them that I personally have been working with over these months are feeling overwhelmed at the surplus of inventory available in their price range. I would say that most buyers are waiting for ... da, da, da, "The Deal." However, it has become more and more of my job to help lead our buyers to the right point of decision for their personal needs. Ultimately, I will never push or demand, but will invite them to make the best choice with the best data that we can provide. Maybe some of the points below may remove some of the "overwhelm" from the process:
- Financing First: Having the right kind of financing in place is more important than ever. A quick prequal from a mortgage broker just doesn't cut it anymore. Guidelines have changed. Having a down payment is essential, credit scores have tightened up more than ever, and loan programs have disappeared at a rapid rate. Getting loan approval from a reputable lending institution that you and your Realtor are comfortable with is a must before looking at properties. Have an approval letter in hand before ever looking, along with a Good Faith Estimate which breaks down the cost of getting the loan.
- Prioritize: Decide what the "have to's" are in the house and area. If it is driving distance to work, schools, location, etc.
- Set Correct Expectations: Understand list price vs. sales price for your particular market. Our MLS actually breaks each area of our town and averages out the sales prices for that region. It oftentimes surprises buyers who enter into town from another market area only to discover that here, their preferred housing area may be selling within 2-3% of list price (Yes, even in this market).
- Foreclosures vs. Bank Owned: In reference to forclosures in our market, be prepared that the entire sum for the awarded bid is due at the time of auction. Many buyers do not realize that the majority of homes awarded with a certificate of purchase are actually bought back by the bank. I have personally found that for most buyers, finding a bank-owned home is a better fit for them as they can get a loan on a bank-owned home.
- Short Sales: Dismiss the word "Short" from the term Short Sale and be prepared that it can take up to 3-4 months to hear back from the bank on these homes.
- Live Life: OK, we are all experiencing the sting of the economy to some degree or another. However, having a home and the stability associated with settling into a home is worth the risk.
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