Builders: Don’t forget Realtors brought you to the dance!

The housing recovery has picked up steam and new-home sales are returning to historical levels!

Sales of new single-family homes are up 28.9 percent from January 2012, to a seasonally adjusted annual rate of 437,000, according to a recent U.S. Census Bureau report. That’s the best January since 2008, and there’s plenty more room to run — new-home sales exceeded 1 million a year during the last boom. "It is safe to assume that new homes construction will continue to move forward, if not surge," said David Crowe, chief economist for the National Association of Home Builders.

It is also safe to assume that a growing number of homebuilders — but not most — will forget the Realtors who brought them to the dance. Studies by the National Association of Realtors say that 63 percent of all new homes sold to prospects were introduced to the homebuilders by Realtors.

According to Builder Homesite Inc., a consortium of 32 of the largest production homebuilder in the United States, 84 percent of all home shoppers contact a Realtor. Thus, many production homebuilders face an important business decision that affects their sales and relationships with the very Realtors they have worked so hard to nurture.

It appears that 2013 is the year that new homes have become a high-demand inventory choice, especially as resale inventory remains tight. So homebuilders, who have been profit-starved for years, must either accept the fact that it’s worth offering a consistent commission and co-broker policy to Realtors who introduce ready, willing and able prospects to new homes, or not.

If they are going to cut out real estate brokers, "a builder must assume that his product is so magnificent they no longer need access to the 90 percent of all buyers that typically engage Realtors during their search process," said Tim Wilcox, president of Irvine, Calif.-based Home Builder Media Group.

While history may repeat itself, this time there is no history to repeat. This is the first housing recovery in the history of the world that comes with a marketing booster rocket: the Internet.

The counterargument is that the builder can now attract more walk-ins and thus "save" on commissions paid to brokers. But a large proportion of "walk-in" buyers also have homes to sell and are already working with a Realtor — an issue homebuilders have no solution for. Homebuilders will also be the first to tell you that a large percentage of their walk-in traffic is not financially qualified, or is not actually in the market. In the old days, street signs drove a large portion of the traffic. Today, there is much less impulse traffic.

Homebuyers have seen the home, the floor plan, prices, features, an aerial of the location, on the Internet, long before they visit the community. "Tire kickers" tend not to want to get involved with a Realtor, and that’s a good thing. Realtors deal with this market every day. Homebuilders have had a long time to get to know Realtors and evaluate the impact they have on sales. Marketing commitments to the Realtor community are much deeper than any time in history. It is not a simple thing to dismantle Realtor marketing machines that are generating "first responder" prospects that are converting to buyers. Production builders are now using their "Internet advisers" to set appointments for Realtor prospects — an unheard-of concept before the Internet. They focus on the prospect, not the Realtor.

Homebuilders are accepting the fact that Realtors control the homebuyers, and are making it easier and faster for Realtors to get their ever-improving on-site teams in front of the Realtor’s prospect. The fact is Realtors need the inventory. Homebuilders need qualified prospects to assure continued momentum.

Realtors, sharpen your new homes showing skills.

Homebuilders, don’t leave your Realtor networks at the dance.

After all, they stood by you in the recent past when you couldn’t get a date!

 

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  How to Use Comparable Sales to Price Your Home

  Before you put your home up for sale, use the right comparable sales to find the perfect price. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

Real Estate Corner…

      Q.    We Are Considering Purchasing A Home And Are Uneasy About The Negotiation Process.  Can You Help?

       A.     The goal of a positive real estate negotiation is to result in a win-win agreement.  This is an agreement where both the seller and buyer feel they have received an equitable deal. 

      Here are a few simple tips to help ensure that you negotiate fairly. 

• First, make sure that you offer a fair price.  Nothing turns a seller off faster than a “low-ball” offer.  Likewise, don’t get into negotiations on a grossly overpriced home.  This can leave you feeling taken advantage of and exhausted.  Both the asking price and your offer should be based on current and factual comparable sales in the area. 

 

• Second, always respect the priorities of your counterpart.  Try to identify the other side’s motivations.  Then, examine your own.  If some items prove to be a sticking point in negotiations, offer to meet half way.  This may require you to pay half of some expenses or modify your closing date, but in the end you will feel as if you have fairly compromised.  If you have addendums to your main agreement, it may be helpful to solidify the purchase agreement and then deal with the addendums later.

• Finally, using a third party on your behalf will keep you focused and emotionally disconnected—resulting in a much better outcome.  Look for a CNE ~ Certified Negotiation Expert. I’ve made the art of successful negotiation the cornerstone of my business.  I work hard to understand the needs of both the seller and the buyer in the transaction, and can put these years of experience to work for you. 

If you are thinking of selling or buying soon,

be sure to interview your Real Estate Professional...

how do they overcome objections,

how do they negotiate.

If I can assist you further, please call me at 405-820-1740.

rhonda@rhondasrealestate.com.

The Complete Home Buyers Handbook

Insider's Guide to Saving Money &
Eliminating Risks When Buying Your First Home!

Chapter 7 – Closing The Deal

Drawing up contracts, having the final walkthrough, and going to the closing are the last steps you will have to take when buying your first home. This is the time when having a real estate agent you can trust, and a little knowledge of home buying comes in handy.

But what about all of those other miscellaneous fees that will come up before and during the closing? You should be aware of additional fees when you apply for a loan and when you are closing on your new home.

Contracts

Your purchase offer was the first contract you will be involved in when you want to buy a home. You should refer to this contract during the closing period to make sure that your rights are covered and that you are getting everything you pay for.

By writing a solid purchase offer that outlines what you want from the homeowners, you will be protected in case of disagreements and other issues before closing. But a purchase offer is just one of many pieces of paper you will have to see and sign before you can move into your home. Other contracts include:

• Contingencies
• Builder contracts
• Mortgage contracts, and
• Closing agreements

These contracts may vary in length depending on the forms being used and the information that will have to be included.

Contingencies

Real estate contingencies can be added onto an existing contract or can be created as a separate contract depending on what you would like to include in the purchase offer. Contingencies can include a wide range of items, including:

• Home inspections and pest inspections
• Home appraisals
• Financing
• Septic system tests
• Appliances that will stay in the home, and
• Property surveys

Contingencies can make or break a sale, so you should be sure to use the correct forms when filing contingencies and to word them correctly.

You will need to include a resolution for repairs that may need to be done before you can move into the home. If it is agreed upon in writing that the homeowners will take care of all or some repairs that may be found during a home inspection, this will save time later on.

You should also include ways to get out of the deal that include loan denial, repairs that cannot be fixed, and lead, mold, or radon that is found in the home. Having a way out of the contract will save you money and time.

If you are buying a home that is for sale by owner, you should find an attorney or real estate agent that is willing to help you create a contingency list and edit it where necessary. Do not rely on the seller’s agent because they are after their client’s best interests and not yours.

Builder Contracts

If you are buying a new home from a builder, you will have to sign a builder’s contract that states you have the financial means to pay for a new home, that you have decided on a location for your new home, and that you are ready to build.

You should hire an attorney at this point to go over the contract to see if there are any problems that will have to be ironed out before you begin building the home.

Mortgage Contracts

In order to complete your home buying, you will have to be approved for a mortgage by a lender and you will have to sign a contract in which you agree to an interest rate, monthly payment schedule, rate plan, down payment, and other fees.

These contracts are standard loan contracts that will explain the consequences of not paying your mortgage. You should read this paperwork carefully before signing anything.

Closing Agreements

These are the final contracts you will have to sign before you get the keys to your new home. You should read this paperwork carefully and be prepared to pay any closing costs at this time.

Home Warranties

If you are buying an older home, you may want to purchase a home warranty that will cover repairs that will have to be made during your first year of ownership.

While a home inspection will catch any immediate repairs, no one can foresee an oven falling apart or a dryer burning out. Since you may not have a lot of extra money left over after paying for closing costs, down payment, and mortgage payments, having extra insurance will allow you to make the repairs you will need.

Most policies will cost between three-hundred and five-hundred dollars. Coverage will begin the day of your closing and will last for a year. You will have the option of renewing the policy if you would like at that time. If you need to have an appliance repaired, you may have to pay small co-pay at the time of the repair.

Not all policies are the same, so you should do your research to find the best deal. Compare the types of repairs that are covered under the policies and choose the one that fits your home.

Closing

When you finally arrive at the closing, you should expect to:

• Sign contracts
• Do a final walkthrough
• Pay closing costs, and
• Get your keys

 The closing can take an hour or two, but usually moves quickly because there is little left to do. At the closing you will probably meet the homeowners. This could be the first time you will meet them.  This is a good time to ask if there is anything about the home you will need to know.

Sign Contracts

When you sign the contracts, read them carefully to make sure that everything that has been discussed is in the contract. Ask questions that you may have at this time.

Final Walk Through

The final walkthrough of the home will take place before or during the closing. This is the final chance for you to see the home before it becomes yours. Make sure the items on your contingency are in place so that you can sign the contracts.

Paying Closing Costs

Typically, the buyer will have to pay the closing costs associated with buying a home. But in a buyer’s market, you may be able to add a contingency that states the seller will be responsible for all costs. This may appeal to sellers who want to sell their home quickly.

When deciding who should pay the closing costs, you should research laws that may be in place that dictate who pays for what. Many times, buyers and sellers will agree to split all costs including closing, home inspection, pest inspection, and home appraisal costs. You will have to negotiate with the sellers to see which you will be responsible for.

Get Your Keys

After signing the contracts, you will receive the keys to your new home. This is an exciting feeling and one that will be with you for a long time!

Congratulations! You now have The Complete Home Buyers Handbook!

Now you know what to expect in purchasing a home...

why not call a Realtor!

Website: www.RhondasRealEstate.com

Email: rhonda@rhondasrealestate.com

Call or Text: 405-820-1740

The Complete Home Buyers Handbook

Insider's Guide to Saving Money &
Eliminating Risks When Buying Your First Home!

Chapter 6: Making An Offer

By this point, you have found a real estate agent you trust, contacted a few lenders, and seen a few homes. If you haven't made up your mind on a home yet, you should take your time and keep looking. But keep in mind that if you wait too long, you may end up in a bidding war with another buyer.

Making an offer on a home is a huge step. You will be taking on the responsibility of a mortgage, repairs, lawn care, and other chores that homeowners sometimes gripe too much about.

While you should be cautious, you should also make an offer on a home that you really like within a week after seeing it. This will put your mind at ease so that you can think of all the other items you will have to get done before the closing.

What To Do Before Making An Offer

Before you make an offer on a home, you should do the following:

• Attend open houses
• Find out more about a property
• Find out about taxes in the area, and
• Have an appraisal done before making an offer

 These suggestions will help you make the most informed decision possible when it comes to buying your first home.

Attend Open Houses
 

Attend as many open houses as you can in homes that are in the area where you want to live. This will give you the opportunity to see what is out there, the going price of homes in the area, and also give you a basis of comparison when looking at other homes.

Open houses are fun because you will be able to look into every area of the home without having to worry about the homeowners and real estate agents following you around. Many times, you may even find your new home this way.

Almost every weekend in most neighborhoods, there will be an open house. Stop by and see for yourself what the homes in the area look like and what you can get for your budget.

Find Out More About A Property

If you find a home that you might want to buy, you should find out everything you can about the property first before making an offer. Visit the county clerk’s office or land records office to see how much the current homeowners paid for their land and the value of their property.

This will give you an idea of how much you should offer for the home. If the home is in an area that has seen better days, then you can make an offer that is less because when you sell the property some day, you may have to lower your price as well.

Find Out More About Taxes In The Area

As a homeowner, you will be paying yearly property taxes, local taxes, school taxes, community dues, and other taxes that could drive your household spending through the roof. Before you commit to living in a certain area, make sure you understand everything you will be paying each year.

Your real estate agent should have the neighborhood information that will help you decide where you want to move. You can also visit your local tax office and see how much the current homeowners paid in taxes last year.

Have An Appraisal Done Before Making An Offer

Most first time home buyers do not have an appraisal done until their lender asks them for one. But you are well within your rights to ask for a home appraisal before making an offer. You will not have to share the findings with anyone until your lender asks to see the appraisal. Typically appraisals are completed after the offer is accepted and the lender has reviewed it.

How To Write A Purchase Offer

This is the most important step when making an offer to buy your first home. The purchase offer should outline everything you expect from the homeowner and what they can expect from you. You should include the following in your offer:

• price being offered
• amount of deposit on the home
• amount of money you will be putting down on the home
• mortgage terms
• Contingencies (such as appliances that will stay repairs that will need to be made, removal of items in the yard, etc.)
• when closing will take place
• specify who will pay which fees
• any reports that will be needed, and

Each of these categories should be explained in its own paragraph. You should try to be as specific as possible when writing up a purchasing offer.

Each state has its own laws concerning contingency, amount of time a buyer has to respond to the offer, and fees that are to be paid. Be aware of these laws before sending your offer or you may end up with a counter offer or a rejection.

Have a lawyer or your real estate agent look over the purchase offer before sending it. They may have some advice or additional categories you should add depending on the age of the home, the neighborhood, and the laws that exist. If you make an offer that is reasonable, well written, and hard to break, then you will be on your way to buying a home.

Making An Offer

After completing your research, you will be ready to make an offer on your first home. You will have to visit your real estate agent to sign a formal agreement that will outline your offer and for how long you will be making this offer. Most agreements allow the sellers anywhere from 24 hours to three days to a week to consider the offer, depending on circumstances.

In this time, the offer may be accepted, rejected, or a counter offer will be made. You will have to decide what you will want to do next if the offer is rejected or another offer is made. If the offer is accepted, then you will have to contact your lender, a home inspector, and make arrangements for your move.

Most homes will go to closing within a month after an offer has been accepted. This may seem like a long time, but it is not. You will have plenty to do in the meantime.

Low Or High Offers

Hopefully, by researching the neighborhood, the property, and the value of the home, you will be able to come as close to the seller’s price as possible. Sometimes, though, this is not possible. There may be circumstances that may prohibit you from making an offer that is close to the selling price.

Making The Right Offer

The closer you can come to the asking price, the better off you will be. Once the home inspection is complete, the homeowners may have to come down in price anyway because of the repairs they will have to make.

Making the right decisions when buying a home are not always made quickly. You should play by the rules and just see what happens. If you get into a bidding war and cannot bid any higher, then it is best to let the home go and find another. You should not be a slave to your first home by buying one that is over your budget. There are many homes available if you keep looking.

How To Handle A Counter Offer And Offer Rejection

Sometimes, if you give homeowners an offer that is lower than their asking price, they may offer a counter offer. This is usually an offer that is more than your offer, but a little less than the asking price. 

Counter Offer
 

Depending on where you live, the laws pertaining to counter offers will vary. Typically, the number of counter offers is limitless, but no counter offer can be the same. While counter offers are usually concerning money, these offers may also contain the following:

• Ownership of appliances
• Repairs
• Time frames for closing, and
• Time frames for counter offers

Buyers and sellers may only have hours to accept, reject, or offer another counter offer after receiving one. This can be a very stressful process, especially if you are dealing with a seller that has other offers on the table. While most homeowners will reject an offer if it is too low or they have received another, some will try to get the most they can from the sale which can include the smallest items in the home.

If you are determined to buy a home, but still want a lower price after the seller has reacted with a counter offer, you can try to find a price that will suit everyone’s needs. If you are making a counter offer that does not make that much of a difference, you should weigh the odds that another offer has been made, the homeowner will reject your offer, and that time is ticking for everyone.

Try your best to accept the counter offer before making one of your own. Is it really worth losing your dream home over one or two thousand dollars?

Dealing With Rejection

The hardest part about an offer rejection is that the homeowner does not have to answer your offer. If you do not hear from the homeowner within a week, it is safe to assume they are not interested in your offer. While this can be frustrating, you will have to move on. Begin your house hunting again and try to stay positive.

If the homeowner gives you a response in the form of a rejection, they may site the reason why in the paperwork. If your offer was too low, they had another offer, decided not to sell, or want to wait for a higher offer, at least you can move on without wondering why your offer was rejected.

Considering Items In The Home

When you are writing your purchase offer, you should consider the items that you would like to keep and items you would like to have removed from the home. These items can include:

• Certain appliances (such as the washer and dryer)
• Lighting fixtures
• Storage fixtures
• Single air conditioning units that fit into windows
• Hardware from windows and doors, or
• Pools

You should put these items in writing so that you will get them with the home. Some homeowners may try taking certain items with them either because they didn’t know that you wanted them or because they were not supposed to be sold with the home to begin with. Be sure to obtain a list of items the homeowner is selling with the home so that you can compare it to your list.

This can also work in reverse. If there are items that you would like removed from the home or the property before you move in, you should specify these in the offer.

Understanding The Seller

One of the key elements of making a solid offer is having an understanding of the seller. Your real estate agent will be able to tell you a little about the seller that may help when trying to come up with a fair offer.

When deciding on an offer for the home, you should find out the following about the seller:

• How eager are they to sell their home?
• How long have they lived in the home?
• How many offers have they received?
• How many have they turned down?
• Have they lowered their asking price?
• Are they relocating to another area?
• Do they need to sell their home quickly?
• Are they waiting for their asking price?

These questions, although you may not know the answer to some of them, will help you make an offer that will be looked at by homeowners and taken seriously. Sometimes when a homeowner needs to leave the area in a certain amount of time they will lower their asking price. This could be an advantage for you, but if the homeowners have already lowered the price, they may not want to lower it any further.

Make a reasonable offer and see what happens. Depending on the circumstances, it may be accepted. 

What To Do In A Buyer’s Market

In a buyer’s market, you will have more choices when it comes to the types of homes you can purchase. Depending on how long the market favors the buyer, you will also have the luxury of taking your time because bidding wars are much less. When buying your first home, you should check out all your options. That home you couldn’t afford a few years ago may be in your price range today.

When looking for a home in a buyer’s market, you should do the following:

• Stay current with the listings in your area
• Sign up for free email listings and newsletters
• Check out homes that have recently been reduced
• When making an offer, ask for closing fees to be paid for by the seller
• See if there are other offers, such as appliances that come with the home
• Ask for certain allowances (carpeting, roofing, siding, ect.)
• Do not be afraid to offer a lower price, and
• Ask for a shorter response time

In a buyer’s market, homeowners may offer these options to you as incentive to buy their homes. They may also offer warranties on appliances that you should take advantage of.

There are dangers that you should consider when buying in a buyer’s market, however.

• If you are not planning on living in the home for more than three years, you may want to wait until the market changes or plan to live in the home longer. Many times, market trends can last for a few years. If you need to move after a year or so, you may have difficulty finding a buyer and you may have to sell the home for less than what you paid for it.

• While most homeowners stay in their homes for at least two years in order to save money in taxes, marketing trends have been known to last longer. You should be prepared for this when buying your first home.

• Make sure a thorough home inspection has been completed before buying the home. If you decide you cannot live there after you have bought the property, you may have difficulty selling it and you will have to spend more money making repairs.

Even though you cannot predict how the market will change, you should consider a home that you can afford, that you will want to live in for a long time, and one that can be improved upon while you own it. 

What To Do In A Sellers Market

In a sellers market, you will have to play the game slightly different than you would in a buyer’s market. In this type of market, there are many buyers who will want to buy homes that are attractive and priced within their budget. Homeowners will have their pick of offers to choose from so your offer will have to stand out in more than just price.

When looking for a home in a seller’s market, you should:

• Make an offer that is close to the asking price or slightly over
• Send a pre-qualification letter from your lender with the offer
• Choose a closing date that is sooner rather than later
• Do not ask for too many contingencies
• Send a personal letter
• Promise more of a down payment, and
• Use a real estate agent that gets things done quickly 

In a seller’s market, you may also want to think about the dangers of buying a home. If you make an offer that is too high and you find out later on that the mortgage payments will be a struggle, you may have to sell. Depending on changes in the market, this may be more difficult than when you were looking for a home.

Buying your first home during this time may also be difficult because you will not be able to put much down, you may only qualify for a certain amount of money which may not be enough to compete during a bidding war, and you may be out bid by those who have more experience than you do. 

When you decide to buy a home, you should be looking at your finance situation, the market, and the asking price for the homes you are interested in making an offer on.

If you can wait a few months to see where the market is headed, then maybe this is the best way to save more money and find a home that is affordable. This is a waiting game that no one wants to play, but may be necessary, especially if this is your first home purchase.

Seller’s markets and buyer’s markets have their advantages and disadvantages, but in the end, the offer that you make will determine whether your offer will be accepted.

Next:  Chapter 7 - Closing The Deal!



The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 3 – Watching The Market

 

Now that you know more about finding a real estate agent, you should begin watching the housing market carefully in the weeks or months before buying your first home in order to get a feel for whether it is in your favor.

Watching The Housing Market

For the past year, the housing market has been favoring buyers. Soaring market values were short-lived as many people decided they just could not afford to live in certain areas because of the cost of housing.

This has caused many sellers to lower their prices. While this sounds like good news for you, the housing market can be very fickle.

Depending on where you want to live, you may end up having to pay a small fortune for the home of your dreams.

This is why watching the market, surveying neighborhoods, and finding a good agent will help you in your search.

While you should not become a slave to the housing market, you should keep the following in mind before buying your first home:

• The past market value of the home you are interested in buying.
• How much house your budget can get you in different neighborhoods and towns.
• Neighborhood value.
• How much the home should increase over time, and
• Price reductions that may be available.

Just because you buy a home for a great deal does not mean you will make a huge profit when it is time to sell it. The housing market will continue to change and since this is your first home, you may want to choose something you can pay off quickly and make a larger profit on in the future.

Also, remember that any improvements you make on the home will increase its overall value. Just don’t spend too much money on improvements. Creating a home improvement budget and sticking with it will help you make those monthly mortgage payments and other payments that will be due.

One of the biggest mistakes that first time homeowners can make is buying a home for a lot less than they budgeted and then making improvements that will end up costing more money in the end. If you can find a great deal on a home, use that extra money as a cushion in case you lose your job or are too ill to work.

Owning a home is a big responsibility. Knowing how the market is moving and spending your money wisely will help when you are creating a budget, applying for a mortgage, and deciding how much to put down on a home.

Making The Most Of The Housing Market

While you should be watching the housing market, there are other areas of interest you should be watching also, such as:

• National interest rates for mortgages.
• Building rates in your area.
• Number of foreclosures in your area, and
• Stock market and gasoline prices.

National Interest Rates For Mortgages

Even though the housing market may be going your way does not mean that the interest rates you could be paying are. In the times when the housing market has taken a slump, interest rates tend to rise in order to retain the natural balance within the economy.

The interest rate you receive will depend on many factors, including:

• Other loans
• Current credit score
• Credit history
• Number of credit cards
• Yearly income
• Owed debts
• Current interest rates
• Type of lender
• Time of year, and
• Adjustable and fixed rate mortgage

If you see housing prices dropping, you may opt to buy a larger home than you would have if the prices had been higher a year ago. While you will be saving money on that end, you may be paying more each month because of the interest rate you received.

Building Rates In Your Area

If you notice the housing market has also caused the building of new homes in your area to decrease, then you may have to enter into a bidding war in order to buy your first home. When new home construction goes down, this can mean one of several things:

• The area is no longer popular.
• The interest in buying a new home has diminished.
• People can no longer afford to purchase new homes.
• People are opting for older homes that are less expensive to heat and keep cool during the year.

While that housing slump may bring a reduction of housing prices, you should consider making a bid soon after finding the home of your dreams because bidding wars will only end up costing your more money.

Number Of Foreclosures In Your Area

When looking for a home, you should consider looking at homes that are under foreclosure. This can be for many reasons, but usually banks that hold the titles want to unload these homes quickly so that they do not lose more money than necessary. Many times auctions will be held or the home will be advertised as a foreclosure in the newspaper or online.

You should check out these homes because you may find exactly what you are looking for in a home.

Stock Market And Gasoline Prices

Even if you do not play the stock market game or own a car, you should still pay attention to these areas because they are usually what will dictate housing prices and the cost to heat and cool the home.

When the stock market is doing well many people will spend their money more freely, which will give way to higher housing prices. But when gasoline prices go up so will the price to heat and cool a home, which may make homebuyers reconsider buying until the prices fall again.

This could be a good time to buy a home if you are willing to pay a little more each month in utility costs.

The impact society can have on the housing market can be huge, and it can also have lasting affects. Buyer’s market’s are created when there are more homes available than buyers, while seller’s market occurs when there are more people who want to purchase homes than there are for sale. These housing markets go back and forth due to issues mentioned above.

In The End

Buy a home when you are ready. Many times, people will buy a home because it is cheaper in the long run than paying rent each month.

The downside to home ownership is that you have to make your mortgage payments on time each month. Very few lenders will give you more time to come up with the money.

If you miss even one payment, your home could be foreclosed upon. You will have no place to live and your credit score will suffer severely.

If you can afford to make the move into your new home now, you should not wait too long before making an offer. The housing market can change quickly and with competition out there, you may end up losing more money if you don’t make an offer after seeing a home that you like.

Rent To Own

Another option you may have is to buy the property you are currently renting or rent a property that also offers you the option to buy after a certain amount of time. This will give you a chance to see if you like living in the home and will give you time to get your finances in order.

Rent to own properties are usually older than other homes and have been rental properties for some time. This means that they may not be in great shape. If you are looking for a property that you don’t mind repairing, then this option may be for you.

When looking at a rent to own property, you should ask the following questions:

• How old is the home?
• How many times has it been rented out?
• What is the mortgage payment on the home?
• What is the rent per month for the home?
• How long will I have to make my decision?
• What happens if I change my mind?
• What happens if the home owner changes their mind?

You should still sign the proper contracts stating that you are interested in buying the home after the given time period. This will protect your rights and the rights of the current homeowner.

New Homes

When you think of your first home, you may be thinking of a brand new home. Since the housing market is favoring buyers at the moment, you may get a great deal from a builder that is developing a new housing community, or you may find a plot of land that is in an existing community. This can be a great alternative to buying an older home for many reasons:

• You will have a part in designing the home.
• You will have new appliances and lighting fixtures.
• You will have new carpeting and flooring.
• You will be able to choose all of the fixtures, carpeting, and flooring.
• You will be able to add a porch or a patio, and
• You will be able to place the home where you want it on your property.

A new home can be very exciting, but it can also be a lot of extra work. The first step in buying a new home is to find property. You should visit builders and real estate agents who will file all of the necessary paperwork, permits, and other items needed to build on the property. This can take a few weeks, so be sure to plan accordingly.

The next step is to design the home. This is the fun part where you will get to personalize your home to suit your needs.

Once you have been approved for a mortgage, the property has passed all of the land inspections, and the home has been designed, construction will begin. Depending on the time of year, you will have to wait about 3-6 months before you can move into your new home.

After construction is complete, you should complete a walk through of the home, check all of the fixtures, and have the home inspected before signing the final paperwork. Then the home is yours.

Many people hire a lawyer during the construction phase so that all of the paperwork has been filed and there are no problems during the walk through.

Buying a new home is just one more option you should consider when looking for your first home. Home construction can vary, as there are a few ways to build a home, including pre-fab homes that will be built elsewhere and delivered to your property where they will be assembled. Look into all of your options before deciding on a home that is right for you and your budget.

Using The Housing Market To Your Advantage

By paying attention to current housing trends and keeping a watchful eye on the homes in your area, you will be able to make an offer on a home that will be accepted.

While the market is continually changing, it is a useful tool for those who are on a budget, who want to find a home that is large enough to suit their needs, and will be worth more when it is time to sell it.

When watching the housing market, consider the following:

• The number of homes that are in your area.
• The number of days the homes have been on the market.
• The price of a new home compared to those that are being sold by homeowners.
• The price of renting vs. buying.
• The number of homes that are in your price range.
• The highest price you can pay when buying a home.
• Interest rates in comparison to housing prices, and
• The time of year.

Springtime is a good time to buy a home for several reasons:

• More people want to sell.
• It is easier to make appointments to view homes.
• Prices are usually lower.
• People are more willing to reduce their asking price.
• Income tax returns can help with a buyer’s budget.

There will be plenty of people who could not sell their homes in the fall or winter months and who are trying to sell before the summertime. Homeowners that need to sell their homes before a certain time are more willing to reduce the price of their homes.

While you should consider looking at a home during any time of the year, you will find that many homes will be lower in the spring to attract buyers.

This is also the time when interest rates are re-evaluated and many lenders are willing to give loans to those whose credit is not the best. Take advantage of when interest rates are at their lowest even if it means accepting an adjustable rate mortgage. You will have the option of locking into a fixed rate at a later time.

While the housing market can change, the idea of selling one’s home will not. Homeowners may choose to wait out the current housing market, but if they are eager to buy another home or move to a new place, their wait will be short-lived.

Negotiate with homeowners until a fair price can be reached. This is the same practice during a sellers market as in a buyers market. You may have to play the bidding game for a week or two, but in the end, it is the person who needs to make the transaction happen the most that will end up compromising the most.

Next:  Chapter 4:  Home Inspections 101
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