Home Buying Returning to a More "Traditional" Experience

In many local neighborhoods, real estate markets are transitioning from historic low's to more traditional markets. Home buyers are left wondering how to navigate this emerging more traditional market and if they still have any advantages. The answer is YES - in many markets the buyers still have advantages, but they need to keep some guidelines in mind. Deals can be found but playing hardball with low ball offers that are out of sync with local comparable sales can back fire when multiple offers come in on single properties.

Here are some tips to remember:

1. Know the local markets. Work with an agent that has localized market knowledge and can share that with you. Ask your agent to pull comparable sales and pending listings so that you get a feel for where the market is at. If the market is out of your price range ask your agent to suggest another neighborhood that may have similar qualities you are looking for but maybe more in the range you are comfortable with. This is a much better way to go than trying to low ball sellers in market you really can't afford.

2. Get familiar with your credit report. Work with a loan officer and get pre-approved before even starting the home search - this will cut out many headaches down the road. Most sellers prefer buyers be pre-approved before even looking at their homes and any home you fall in love with and want to make an offer on will need to have a pre-approval letter to submit with the offer. It would be a shame to find the home you love and have to wait a few days to get pre-approved and in the meantime someone else puts the house under contract. Be ready to act and pre-approval with a loan officer really is the first step.

3. Short sales, foreclosures, and rent-to-own should not be ruled out as part of a comprehensive home search. They may take more time and require more financial obligation on the buyers part, but many homes fall into these categories, and ruling them out will narrow your search exponentially.

4. Several local markets are seeing multiple offers on properties, especially in Springfield. Be prepared. You may have to come in over asking price. Cash offers are sometimes seen more favorably than financed offers. This is why knowing your financial situation in advance is helpful. Some local markets, such are Riverside, are seeing less activity right now so multiple offers may not be an issue. Again, know your local market.

5. Try to check your emotions at the door. Hard to do, I know. But this is really a competitive market and you may have to put several offers in on several properties before you are able to come to terms with a seller. The home buying process can take 6 months to a year in this climate.

6. Buyers should be sure to have any offers contingent on a satisfactory home inspection and Wood Destroying Organism (WDO) inspection. Also, be sure to ask for a Seller's Disclosure when you submit your offer.

In summary: there are some great deals to be had, but saavy buyers will be familiar with their local market and be prepared to act accordingly and aggressively. Traffic is up and prices are stabilizing and increasing in many markets so bottomline: be prepared.