Wednesday, March 31, 2010

Still Homeless? How to Buy a Home in Today's Market!

Why you still don't own home...

If you find yourself homeless even after writing many offers on homes in the San Fernando Valley, the problem is not the market but you.

Here are the steps you need to take if you plan to get into a home priced below $550,000 in today's real estate market:

1. Have a pre-approval letter from a direct lender.  A direct lender is a major bank: Bank of America, Wells Fargo, etc...

2. You need to have 20% down payment or more.  Being approved for a conventional loan is better than being approved for an FHA loan.  Money talks in this market so if you have none, you'll find yourself outbid every time.  Listing agents are more likely to favor offers from big cash down buyers and all cash down buyers.

3. You need to have an open mind. One thing you cannot change is the location.  If the location is good and the layout of the home is okay, write an offer.  Being picky is not going to get you into a house.

4. Depending on your price range, you will need to have flexibility with your loan approval.   If you are maxed out at a price range and the homes are selling for more even if they are priced below, you'll never get into a home. 

Things to know...

1. You'll never know the true market dynamics by sitting in front of your computer searching for homes.  It's a different ball-game when you are out there in the trenches. 

3. The asking price could not be in line with reality.  Any agent who under-prices a home more than 10% is not serving the seller well and is causing confusion in with home-buyers.

There are strategies...

Not every San Fernando Valley real estate agents works the same.  If you are a ready, willing, and able buyer ready to buy now, call me 818-730-4128.  I'm serious about your success in getting you into a home and you should be too.

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