First-time buyers continue to drive the activity in our market.There are less than two active listings under $250,000 right now for each one under contract. Below $150,000, it's basically a one-to-one ratio. Half the homes on the market under $150,000 are under contract - the rest are either unrealistically priced, too beat up, or stuck in short sale pergatory.
The fact is, if it's clean, priced right and not next to the Interstate, it's probably under contract.
That's why HAVING A PLAN is so important right now.
If you are a first-time buyer, you need to do a couple of things in order to get the outcome you desire.
First, you must get pre-approved. This is not optional. In a multiple offer environment, sellers (often banks) want buyers who are rock solid. If you can't produce a pre-approval letter from a known, reputable lender, chances are it won't be you going under contract.
Second, I strongly encourage you to get together with your agent (preferably, me) for a serious heart-to-heart before you begin looking. Understanding how the real estate contract process works... understanding your rights and responsibilities as a buyer... and understanding how to deal with the competition in our market is critical to your success.
A well-written real estate contract protects you... a poorly written contract put you and your earnest money deposit at risk. If you don't understand what you are signing, don't sign.
Your agent should clearly explain the differences betweeen traditional resales, short sales, foreclosures, and HUD homes. The process for each is unique, and the strategies you employ will be different for each type of seller. Your agent should be able to clearly articulate how each of these types of sales works, and how your approach should differ from situation to situation.
Real estate agents are not commodities. They are a collection of ethics, experiences, expertise and problem-solving abilities. Some excel, some are terrible.
The agent you choose is as important as the home you buy... because if you select the wrong agent, your odds of ending up in the wrong home go up dramatically.
