Flex Your Buying Muscle

 

Regardless of the causes, most areas around the country are experiencing what is commonly referred to as a “buyer’s market.”  That term might make sellers squirm, but for those purchasing a home, lower prices are just the starting point for negotiation these days.

 

During the recent “boom” years, buyers often accepted a property “as is,” and asked for few concessions, even forgoing inspections and appraisals in an attempt to avoid being dumped for the next qualified buyer in the queue.  Now, however, buyers are in the drivers seat and they know it, insisting on a variety of terms in their offers.

 

The most popular demand now seems to be the “home warranty,” whereby the seller purchases a one-year service contract to cover any unexpected system and/or appliance repairs.  Of course, this is on top of insisting that sellers pay for all needed repairs exposed by an inspection before closing, or at least an allowance paid to the buyers to cover the expenses.

 

Just one inspector doesn’t seem to be enough, either.  Now buyers are looking more closely at lead and radon levels, roofs and foundations, and looking into inspectors who specialize in these areas.  Sellers find they need to be more flexible, or the buyers will simply move on to the next seller in the queue.  Now is the time to boost your purchase power.

10 Things to Take the Trauma Out of Home buying

1. Find a real estate professional that’s simpatico. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the practitioner you choose is both skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price and a good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
4. Accept that no house is perfect. Focus in on the things that are most important to you and let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.
7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on many unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.
10. Choose a home first because you love it; then think about appreciation. Even with our current market conditions homes over all appreciated, a home’s most important role is as a comfortable, safe place to live.