Hi I’m Anthony Lamacchia & I’m John McGeough of McGeough Lamacchia Realty.
Today we’re going to talk about Buying a Home in today’s market. With interest rates this low and housing inventory so high this is a better time to buy a home than it has been in 20 years. Over the past 5 years the market has really changed and it has become so much more confusing for buyers with all the foreclosures and short sales on the market. It is more important than ever before to make sure you hire the right agent to represent you when buying a home. We really cannot emphasize the importance of this enough. You cannot just work with any agent; you need to hire one with experience in today’s market.
When searching for homes, it is important to work with a Realtor who will connect you to a very advanced and cutting edge auto email system that will send you all homes for sale in real time just like Realtors receive. A good system will send you homes in the price range you want, in the towns you want and have many other great features that will help you learn about the towns proximity to major highways, and public transportation and many other important aspects to consider when buying a home.
Some buyers believe in the myth that it is better to work with the listing agent directly because you will get a better deal. Nothing could be further from the truth. It would be like going to court as a defendant and working with the plaintiff’s attorney. Buyers need to realize that listing agents are contractually bound to act in the best interest of their seller. Not you the buyer! You cannot just hire any buyer’s agent. You need to hire a good one. The wrong agent with a lack of experience could cost you thousands of dollars during an offer negotiation.
Buying a home that you can afford in good times and in bad is the most important component to making sure you do not end up in a situation where you cannot afford your home. Notice how we said in good times and in bad. In anyone’s life there can be times when money gets tight. It is so important to be sure that you do not get in over your head. Even though lending guidelines have tightened up you can still end up having trouble paying your bills if you lose your job or have a decrease in pay. That is why you must be prepared and you should buy less than you can afford. If a mortgage broker says you are qualified for up to a 400,000 dollar home that does not mean you need to spend 400,000. Maybe spend 350,000!
Over the last few years and for at least the next few there will be thousands of foreclosures and Short Sales on the market. Buying these properties can save you money but they can also cost you money if you or your agent does not know what they’re doing. There are so many minor details that matter and many buyers and buyer agents overlook them. Things such as making sure your offer has a deadline date for Short Sale approval if you are making an offer on a Short Sale. Without a deadline date you are technically contractually bound to that property forever! You would not believe how many times in a week we receive offers with no deadline at all.
It is also important to be sure that you hire the proper home inspector and consider other inspections such as, lead paint, radon and septic when needed. There are so many things to consider when buying a home it is easy to forget something.
Once an offer is accepted on a property it is especially important to be sure that the proper homework is done. From the right real estate attorney to do the title work, to the proper Purchase and Sale negotiation, to buying the right title insurance policy and keeping closing costs from getting too high. A great agent will always work with your best interest in mind.
As we said in the beginning, today is a great time to be buying a home. But you also need to be more careful and more calculated than ever.
That is all for Buying a home in today’s market. Thanks very much for watching!
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