Throughout the year there have been positive signs in the real estate marketplace criss-crossing some towns. This is good for the overall economy, home sellers, and the town itself.
This simple fact is surprising some home buyers, though, when they realize they may have to actually compete against someone else for their perfect home. They just can't imagine this happening with all the signs of a bad economy.
What's happening is many more home sellers have taken heed to the real estate marketplace and understand pricing their home at 2006 prices will get them know where. But pricing competitvely and strategically, puts them back in the driver's seat.
Here are two tips to keep you sane when you're looking to buy a home:
Know Your Numbers;
Ignore Multiple Offers.
Know how much home you can really afford, not just the pre-approval range you obtain from a mortgage professional. Actually know how much that range means to you monthly, with taxes. Understand the average utility expenses for the home size you seek. Even try to live for 2-3 months as though you were paying that mortgage and utility expense. This experience will give you an indication how the home purchase will affect your daily life, eventhough it won't include maintenance variables, etc.
Now, I may be shot for saying this and many won't agree, but ignore multiple offers. Buyers get engulfed by the excitement of the win, the game, and when reality sets in, so does cold feet some time.
It should not matter how many offers are on the table, just pay what you think the home is worth to you. Like Bob Meaux and I always say to our clients, when we tell you the home sold for X amount of money, don't kick yourself because you were thinking of offering just a little over X. No, you should simple be able to say, "good for them" or "they were crazy".
Know your numbers, know your comfort range. Don't go over that in the heat of the moment. You will regret it and start to blame others for it later.
If you don't get the home, then another one will come OR that same one may come back on the market sooner than you think.
Emotions draw you to a home, logic keeps you sane.
There's so much more I could talk about on this subject, but just remember these two simple home buying tips when you want to remain sane during your home buying experience and you will be able to check 'buying a home' off your list when the time is right for you.
Have you been in a multiple offer situation?