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Saturday, August 29, 2009

HURRY UP HONEY..We Forgot to Buy A House!!!

As predicted, the pent up demand to buy a home has reached a breaking point. People are now looking to buy Real Estate all over the country. Factors contributing to this are a strong and stable stock market, banks willing to lend money, and a stabilization of home prices.

If you follow the news, you have been relieved lately
to hear some very positive things about the economy and about the National housing situation across the country. Home sales leaped unexpectedly in July to hit their highest level since last September, and this upward swing has continued through August and into September.
Here at the Shore, we have been inundated with prospective Buyers . . . and it’s a good thing. Now even REALTORS® who found themselves developing a great tan are scheduling home tours on a regular basis. But while being overwhelmed with Buyers may sound like a good thing, a REALTOR® can quickly turn into an unpaid tour guide if Buyers (and Sellers) are not educated about realistic home prices and the home buying process.
There are many kinds of prospective Buyers (first time buyers, investors, second home buyers, etc.) but they all have one thing in common: everyone wants the best possible deal. In order to get the best deal for a Buyer, a REALTOR® needs to know what the Buyer’s top requirements are (e.g.:3 bedrooms, 2 baths, porch, no more than 3 blocks to the beach, price range, conditions, pet requirements . . . the list goes on). This way the REALTOR® can select properties specifically geared to the Buyer’s needs. The REALTOR® will guide and educate a Buyer as needed about the area and the houses on the market, including days on market, current sales and homes under contract. The REALTOR® should also make sure that the Buyer’s expectations are realistic. And to some requirements, the only reasonable response may be: “You want a beachfront house for under $500K? Me too, but it’s not happening!” Now there are less extreme examples, but honestly, with what has gone on in the rest of the country, the expectation of a lot of Buyers is “I want to steal something”.
So make a list, be realistic, and above all PRIORITIZE! Together with your REALTOR®, eliminate and pare down all of the properties currently on the market based upon your price range and priorities. If at this time, there isn’t anything that meets all of your needs, you either need to adjust your priorities or look at the next price point to see if it includes a property that you might consider the “right one” for you. In the meantime, and this is key, a relationship is being built between a Buyer and REALTOR® and when the right property comes on the market, or when a price change occurs on one that you are interested in, your REALTOR® will contact you.
If nobody knows what you want, you risk missing out on the perfect property. Some Buyers prefer to be “free agents” and not work with a REALTOR® beyond a particular home they find on the Internet or a yard sign. They call the specific REALTOR® for one house and will only work with that REALTOR® on that particular house. When they find another house, they move to the next REALTOR® and do the same thing. Unfortunately, if you are not working with a REALTOR® who knows what you are looking for, when that next perfect property does “pop up” or has a price reduction, there will be nobody to notify you. So it pays to have a REALTOR® working just for you, keeping an eye out for the properties you are looking for.
Sellers want to sell and Buyers want to buy, so deals are happening, but only when everyone involved is realistic. While there is optimism in the air and Buyers are plentiful, one must temper these factors with the reality that Buyer and Seller must still have a meeting of the minds. Buyers must realize that while they are going to get a great value on a good property, they are not going to “steal it”. Conversely, similar concepts must be applied to Sellers when they are presented with an offer on their home, and every consideration should be given by both sides to try to arrive at an agreement that both can live with.
So sit down today and make a list of your priorities, ranking them in order of importance. Call your financial institution to determine your price range and call your REALTOR® of choice to assist you to find a great property. Chicken Little can, literally, GO HOME: The sky has stopped falling and so have housing prices!

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