Benefiting from a BUYERS MARKET!

Happy new year!

And let's fact it,the residential real estate market is in a terrible mess!

The mortgage meltdown has caused major problems everywhere. New home prices have dropped to a 20 year low. Older homes are taking longer to sell and their prices are also decreasing.

Buyers and sellers have a perfect right to view the current real estate market conditions with apprehension.

However, homes are being bought and sold! Life continues. For some fortunate buyers and some fortunate sellers this is a good time to enter the market if one knows
" How to Best Benefit from A BUYERS MARKET"

And yes we are in a Buyers Market.

The following tips are based on my 35 years expeience in the real estate sales business here in Middlsex County, Massachusetts.

This advice is not what you will typically hear from a new real estate agent or agents who take a speedy course known as "Selling Real Estate 101."

FOR BUYERS

1. Have Patience!. Time is generally on your side unless you must buy.
2. Scrub all emotionalism! Be objective.
3. Plan well in advance; Precise planning & home goal setting will pay dividends.
( know the side of house you need, number of bedrooms, etc)
4. Know your financial strength ( or weakness) as a potential buyer.
5. Pre-qualify and stay pre-qualified from reputable bank.
6. Have adequate liquid assets (cash) for down payment and closing costs.
7. Constantly research specific a few target communities and neighborhoods.
8. Study to learn how to properly interpret a listing offering sheet.
9. Study and learn how to determine home's actual sales history.
10.Don't rely on the bank appraisal you pay for. (They work for the bank, not you!)
11.Don't rely on the mortgage survey plan you pay for.
12. Look to purchase what you need than than what you would like.
13. Think long term: energy & other costs are not going to decrease.
14. Study benefits of FHA & VA loan guarantees.
15. Work with an seasoned & experience agent who has been thru turbulent markets like the current one.

FOR SELLERS:

1. Be objective. ( Price does not equal value)
2. Don't guess at home value! Hire an licensed appraiser for an objective valuation.
3. Determine your total debt obligations.
4. Constantly be aware of immediate and direct home competition.
5. Study urban, suburban or rural dynamics ( whichever may apply).
6. Work with an experienced and seasoned agent.

In subsequent postings I will cover each and every item above in some detail.

Hope that you find this benefical.

Bill McInerney, Realtor