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Time To Buy? Great Rates, Short Sales, Foreclosures and More

By
Real Estate Agent with London Properties (DRE 01883959)

Potential homeowners have been sitting for a while now waiting for signs that say "Now Is The Time To Buy." Is it a good time to purchase a home? remains one the most popular questions we hear

The answer is that it depends on the price range and your own particular situation. However this year with the new $8000 tax incentive for first time buyers that is not a loan but a true credit, as long as you don't re-sell the home in the next 3 years, combined with the low interest rates and a market that in some price ranges has held steady the answer is now yes.

So where do you start with shopping for your new dream home?

Our site contains the Multiple Listing Service where you can key in any price range, any city and specify the features you'd like to see in a home from the number of bedrooms and baths to the square footage, yard size, # of garages and extra amenities such as fireplace, granite kitchen counter tops and more. There's never any registration information needed to view all the homes either from the land or from the sky with satellite views. Here's the link to start this search now.

There's also a great overview of the process and check list to help guide you through the entire process located here.

What is the first step before we even start looking for a home or invest time and gas in driving by all the homes in the various neighborhoods where we might want to live?

Contacting a lender and making sure you are not only pre-approved for a mortgage but that you feel very comfortable with the monthly mortgage payments is #1.

We've seen many people start out driving around and spending hours each weekend entering homes only to find out that they are 6 months, a year or longer away from purchasing their dream home.

A good lender will not only advise you on the types of programs out there but will also guide you through the process, helping correct information and showing you what must be done to obtain an approval. There are many lenders that won't do the little extra things that we feel is a MUST to help you. We work with some amazing local lenders that will provide assistance, guidance and make sure that you understand all the costs involved in obtaining a loan. We would be happy to refer you their way. Remember, there's no charges to talk with lenders and have them pre-approve you. Sometimes clients are scared of what may be found but it's better to know up front what you must correct or do to obtain that mortgage.

Once you have a pre-approval from a lender then start your search online, in person by doing drive-bys, by entering open homes, by interviewing agents to find out what type of service they offer and who you trust to protect your best interests. We would love to be those agents! We also hope you will continue to use our site to obtain the wealth of information that's out there.

Short Sales and Foreclosures dominate certain price ranges:

Our area like most out there has many short sale and foreclosed homes. We've issued several warnings on these homes for it's not so easy to understand the process. You need to know what questions to ask for short sales and foreclosed properties. Frustration sits in when buyers don't understand the process or don't want to listen to what may occur. We set expectations based on the situation and help you through the process.

Short sales can and do take a long time. They are also not always the best deals out there. We show our clients the comparables, property history and ask several key questions such as:

  • How many liens are against the property?
  • Has a short sale packet been completed?
  • Has a negotiator been assigned?
  • Does the listing brokerage have direct access to the short sale negotiator?
  • Is the bank local or national?
  • Has a BPO, appraisal and all other documents been completed by the lenders involved?
  • Where do you stand in the short sale process (meaning is there actual approvals)?

These are just a few of the questions to ask about short sales. If the agent can't provide these answers or if the answers seem to be "not yet" or "we are working on it" then you can probably expect a long waiting period. The great news is that in Idaho you can cancel any short sale in writing before you have all the lender approvals without penalty.

Short Sales and Foreclosed (Bank/Corporate Owned) properties are priced usually at the lowest end of the pricing spectrum.

They are priced to move the home based in part on the conditions of the homes. Many people try to obtain these homes at 20% lower only to be outbid or rejected. Remember these homes are priced aggressively. That said we have managed to negotiate several thousand off the price but if you find your dream home and it's a foreclosed or short sale home consider all options when making your offer for if you go too low you will probably lose the home. It may not matter if you were just looking for an incredible deal but if you have an emotional attachment where the home has that special something you love then think twice before making a lower offer.

Location and condition determine pricing and many homes in certain locations have retained most of their value. I know the news makes most think that all homes have lost so much but that's not the case. Seeing actual comparables will show you what's going on.

Contact us by email or by phone to discuss anything you may need to start your wonderful and fun purchase of a home. Use our site and hopefully our services. For us it's about helping people and you're needs are always the focus. We would be honored to represent you throughout the real estate process!

Comments (1)

Anonymous
krissy in portland

You really seem to know your stuff. I don't live in your area, but if I did I would work with you to buy a house.

http://www.ponyboypress.com

Mar 12, 2009 11:55 AM
#1