Buying A Home In Today's Real Estate Market

If you?ve read a newspaper or watched the television news lately, you know that the real estate market is in serious trouble. There are many homeowners who are desperate to sell and are in danger of foreclosure.

You might think, then, why would I want to be a homeowner? The answer is clear. It?s a buyer?s market. These sellers need to unload their homes before the bank comes knocking. This means there is a wide variety of houses for sale at rock-bottom prices.

Buying a house in this market isn?t a practical financial decision for people who may need to move or within the next few years, but if you?re looking for a relatively permanent place to settle down, there?s no time to buy like right now.

Working With a Realtor

If you?re a first-time homebuyer, you?ll probably want the services of a Realtor who can walk you through the necessary paperwork and help you with negotiations. Remember that a Realtor earns his or her commission on the sale price of the home?meaning that the Realtor?s fee is paid by the seller. As a buyer, it literally costs you nothing to have a Realtor on your side.

Especially in a down market, sellers are often desperate to close the deal and may tell you whatever they think you want to hear in order to make the sale work. Having an experienced Realtor to help you can be invaluable. He or she will spot problems and know when something is just ?too good to be true.?

You can find a Realtor by calling a few local companies or searching online. Arrange meetings with a few different people and choose someone you get along with and feel like you can trust. Explain your needs and desires in detail so that your Realtor can be on the lookout for homes that would be a good fit for you.

Different Ways to Buy

Lots of sellers are still listing their homes for sale with Realtors, but in a down market, you usually see a large increase in homes that are ?FiSBOs? (For Sale By Owner) or up for auction. Real estate auctions can be a great way to find a real steal, but they can also be tricky to navigate and most Realtors can?t help you with the purchase.

If you want to explore homes up for auction, keep a few things in mind: First, make sure to secure a mortgage pre-approval for at least the amount you plan to spend. At many auctions, you can?t retract a bid once it?s placed without paying a steep penalty, even if you?re unable to get a mortgage. Also, unless you are interested in a fixer-upper, be wary. Many auction companies only sell homes ?as is.?

As stated earlier, the proportion of ?FiSBO? properties on the market inevitably increases in a down market . Sellers often choose this method because they are in a financial crunch and want to avoid paying a Realtor?s commission. If you already have a Realtor, you don?t have to shy away from FiSBO homes. If the seller is truly desperate to sell, they may be willing to pay your Realtor?s commission in order to get the deal made.

If you decide to go it alone on either an auction or a FiSBO home, make sure you have all of the paperwork reviewed by a real estate lawyer. This might run you a couple hundred dollars, but it?s more than worth it to protect yourself against potential financial calamity.

Enjoying the Buyer?s Privilege

In a down market, you as the buyer have all the power. If a house isn?t exactly to your liking, you can go a little farther down the block and likely run into several more homes for sale. Take advantage of this fact and be choosy. This is a great time to get your dream home for less money than you ever thought possible.

No matter which route you go to find your new home, remember to have professional help from either a licensed Realtor or a real estate lawyer. Keep in mind that you have plenty of options, and that the market isn?t likely to turn around in the next several months?it might take years. The perfect home for you is out there, just waiting to be snapped up.

If you?ve always wanted to experience the pride that comes from being a homeowner, now is the time to make that dream come true. Don?t wait for prices to rise again. Buy now and when the market turns around, you?ll have a beautiful home you can be proud of and a great return on your investment.

David Beart is the owner of Professors House . Our site covers buying a house, household finances, family forums, recipes and other household.