Buyers and Sellers worst enemy...themselves

One challenge facing prospective homebuyers is the difficulty of finding a house in a good neighborhood in good condition.  Prices continue to decline, but so does the number of homes for sale.
 New research gives us one reason why: Buyers may think it's a good time to buy, but sellers don't think it's a good time to sell.  A recent study I was just reading about found that nearly 80% of Americans think it's a good time to buy, but only 7.6% think it's a good time to sell.  The feelings of homebuyers are the same as in previous recessions, but the sentiments of sellers are different this time.
      Nearly two-thirds of those who expressed negative selling sentiment listed "difficulty of finding a buyer" as the reason. What this mean is the difficulty of finding a buyer at the price they want.

• Buyers' and sellers' worst enemy? Themselves
   
  Real-estate agents have to educate sellers on what price their home is really likely to fetch now. If sellers really want to sell, they adjust their expectations to the changed realities.

• See what's for sale in your neighborhood

If the sellers won't face reality, the agents sometimes decline the listing rather than waste time marketing a home that won't sell at the desired price.

Some agents are writing price-reduction clauses into contracts with sellers, which authorize automatic price reductions if no action occurs in the first few weeks.

Are sellers refusing to face reality? Or are they smart to keep their homes off the market now?

How To Lowball

We all love getting a good deal, particularly in this economic climate. Whether you're saving 75 cents on a bag of frozen french fries or $5,000 on a new home, frugality is in.

The art of the lowball offer
To kick it off, let's talk about that all-important step after you've found your dream home: submitting the offer.
If you're following the numbers, you're probably aware that most U.S. markets still favor homebuyers but that trend is quickly changing. That may lead you to believe that sellers are desperate and will take any offer you throw at them. You'd be wrong. While sellers may be more willing to negotiate now than they were in 2006, for instance, you still must perfect the art of the lowball offer. The key is research. Your agent  must know everything about the market, the property, the seller and yourself.

The market: There is no such thing as a national real-estate market, which means all this talk of a buyers market may not even apply where you live. Your real-estate agent can find out whether comparable homes are selling quickly or slowly and at, above or below asking price.

The property: How does the price of the property compare with those of comparable homes? How long has the home been on the market? The longer it has been listed, the more likely the seller may be to entertain lower offers. If it has been on the market for months or even years and there have been no offers, at some point the seller is going to give up and either accept a much lower price or just resolve not to sell it.
Another factor is whether the home will require a lot of work, if you're willing to do the work, you can generally find good deals on fixer-uppers.

The seller: If sellers already have purchased another home or are starting a job in a new city and must sell quickly, that will affect their willingness to settle for less. Being flexible on the terms of a contract also can translate into a lower price. For example, if the seller plans to move to a new home still under construction, he might accept a lower price in return for a rent-back agreement allowing him to stay in the home for some period after closing.

Yourself: Are you in love with the house or with getting a good deal?
If the buyer is in love with the property they might want to offer something closer to market value in order to lock it up, particularly if it's in a market with intense buyer competition. If the buyer is just looking to get a great deal they might take a shot at whatever they think is in the lower hemisphere of fair and see how things develop. In my opinion, a buyer's best bet for finding a great deal is to buy a short-sale property, but you must be sure you're cut out for what is usually a long, difficult process. You can also get a bargain when buying a foreclosure, but  those homes are priced based on what is owed to the bank, not on their actual value.
If you're looking at a distressed property, be realistic about whether you can handle buying a property "as is." If you've never picked up a hammer, the money you save on the purchase may not be worth the hassle and expense of hiring contractors to make updates — or even to make the home livable.

21 ?'s for your realtor when buying your 1st home

When it comes to purchasing your first home, buyers need to remember that their realtor is there to help ease the process and should take advantage of each opportunity to learn from them. Similar to a lawyer or any other consultant, a realtor is your advocate and counsel for the duration of the home buying life cycle, from the home search to close of escrow.

At a minimum, these are some of the most common questions to ask a realtor when buying your first home:

1) Is the listing price in line with market value?

2) What is a fair offer on the property based on recent comparables?

3) How long has the property been on the market?

4) How motivated is the seller?

5) What price did the seller pay for the home?

6) What is the age and condition of the property?

7) How many people have owned the property?

8) What items are included in the sale (e.g. appliances, window coverings, etc.)?

9) What are the annual taxes?

10) Is there a monthly or quarterly HOA?

11) Is the current owner up-to-date on payments?

12) How quickly can the property close?

13) Has all work on the house been completed with permit and to code?

14) What schools is the property zoned for?

15) Is there much crime in the neighborhood?

16) What type of utilities does the home require (e.g. oil, gas, septic, etc.)?

17) Who do you recommend to perform the home inspection, and why?

18) Which title company do you recommend, and why?

19) What is your relationship with the listing agent?

20) Do I need to be pre-qualified to write an offer?

And most importantly:

21) Is there anything you need to tell me that I haven't already asked?

Although a list of 21 questions may seem like overkill, when it comes to buying your first home, you can never be too informed. Realtors are people too and, regardless of how celebrated or highly recommended they are, they can forget to mention important details as easily as any other. As the buyer, it is your responsibility to ask the right questions and be as knowledgeable about the home as possible.

At the end of the day, you want to be comfortable that you made the best decision to purchase your new home. Your understanding of the property and transaction will greatly determine your confidence and satisfaction level with your decision - so don't hesitate to fire away with the questions (and be sure to take notes)!