Some Helpful Home Buyer Tips for 2010

There were 993 residential homes on the market in the communities in this Lakes Region of NH market report as of March 1, 2010 or about 15.5 months worth of inventory. The average asking price stands at $583,496 and a median of $289,900. This compares to 941 homes last March at an average asking price of $547,575 and a median price of $299,000. It won’t be long and we’ll be back into the spring buying season. Ah, the smell of flowers blooming, the sound of birds chirping, a warm spring breeze, and the rustling of buyers as they come out of their winter hibernation. Well, we can hope, can’t we?

If you are buying a home, and particularly if you are a first time buyer, here are a few tips to keep in mind as you look for that perfect place to call home:

1. Educate yourself, particularly if you are a first time buyer. Take a first time home buyer class or read some books on home buying and ownership (there are plenty available at Borders or Amazon.com). A little knowledge will go a long way in giving you some confidence about the home ownership adventure you are about to start.

2. Meet with a local lender to find out if and how much of a mortgage you qualify for. There is no sense in looking at $300,000 homes if you can only qualify for a $200,000 home. And, you’ll also need a letter from the bank to <!--more-->show that you have at least qualified for a mortgage before you can make an offer on a home when you find one. Find out what kind of programs are available to you. Ask questions. The most important thing is whatever home you buy, you need to feel comfortable about your ability to afford the monthly payment that you’ll be making. Also make sure to compare different lenders to see what they offer and compare rates.

3. Meet with your real estate agent to begin your home search. If you don’t have one, meet with several REALTORS®. Ask them how they propose to work for you. You will probably want someone who is full time in the business. The agent will be working for you so treat it as an interview. Your home buying adventure is like a partnership and you should be confident that your agent is knowledgeable, professional, a good listener, and someone you feel comfortable working with over a period of months. Work with only one agent. You may want to engage that one REALTOR® as your Buyer’s Agent. A Buyer’s Agent works for you and has defined fiduciary responsibilities to you. Your agent should explain the home buying process in full. He will be your guide in finding a home, your negotiator, your sounding board, and will help you all the way through the closing process to make sure thing go smoothly. It can, and should, be a fun and enjoyable adventure.

4. Build your home buying database. By viewing a number of homes and comparing them you will begin to increase your knowledge about the market and the relative values of the homes that you have seen. You will learn something at each house you visit. You’ll notice things about the homes and neighborhoods that you like and dislike and begin to formulate what it is that you really want in your new home.

5. Don’t decide on a home by the price, decide by the value. Many buyers today seem to gravitate toward the perceived “deals” they think they may be getting on a foreclosed property. While the prices may be low on bank owned properties, many times it will cost more to bring the home back up to standards than buying a more expensive home that is in move-in condition.

6. Don’t be short sighted. This home may not be the last home you ever own. It seems like most people move every seven years or so. Thinking about resale is extremely important. Location, location, location is always a big factor when selling so considering that is very important. Also, if you definitely think that the house you are purchasing is going to be your first step of many, try to buy a home that will suit the needs of many buyers rather than a few. For example, a small to medium size ranch works well for first time buyers, retirees, and buyers looking to downsize and can be a much easier home to sell down the road.

7. Make sure you get a home inspection. Don’t buy a home unless you have the home inspected by one of the many qualified home inspectors we have in the Lakes Region. Be there for the inspection and ask questions. This is your time to learn more about the house you are buying. If undisclosed issues are revealed in the inspection you can ask for the seller to correct them or negotiate a reduction in the purchase price. If an agreement cannot be reached on correcting the defect, you can get out of the deal and continue your home search.

8. Don’t wait if you want to buy a house. If you are considering buying a home and can afford to do it now, don’t wait. You can start building equity, gain tax advantages, or stop paying rent. Buyers sitting on the fence waiting to make sure that we have reached the bottom will only know that the bottom has been reached after the prices start escalating again. Even more importantly, interest rates are not going to remain this low for much longer. Additionally, the $8,000 first time buyer credit and the $6,500 credit for qualified repeat home buyers are going to expire on April 30th. There may be no better time to buy than right now…