The Changing Game of Home Buying

The Times, They Are A'Changing

The market mess we have been through for the last few years has been hard on sellers and pretty easy on buyers. Foreclosures brought market prices way down and there was so much inventory that buyers could beat up on sellers for lower prices, concessions on closing costs and more. But now that we are seeing the bottom of the market, things are leveling out. Buyers no longer have the power they used to have.

Don't Lowball It

With a buyer's market, buyers could send in whatever offer they wanted and sellers would be at their mercy. A lot of times the sellers would take whatever came along and take a loss so they wouldn't be stuck with a house. But now that foreclosure prices are going up due to investors bidding and inventory shrinking, the advantage the buyers have is fading fast.

Get Preapproved

This has always been a smart move and any Realtor worth his salt will insist on a client being preapproved before submitting an offer. No one wants to go through the purchase contract back and forth, just to find out that the buyer can't buy the house. Being preapproved shows the seller you are qualified and serious.

Tune Into the Market

Get to know the market prices. These vary from town to town and even from neighborhood to neighborhood. Make sure to look at items specifically in your price range and only from houses that have sold in the last six months. Realtors can get you a list of houses that have sold and break it down by price range, house style and neighborhood.

Expect Competition

We have seen an increase in market activity. Though it still isn't a seller's market, it's not the buyer's market it used to be. It's closer to neutral and will eventually slip back into a seller's market. We are seeing multiple offers put in on some competitively priced houses.

Do Your Homework

This is really just a summary of the previous points: get preapproved, get to know the market for the neighborhoods and houses you're interested in and stay on top of things. You can't tune out for a month and come back in. In addition, make sure you have the money needed to close.