The real estate market has been going through a big correction, which may last through 2009. The home sellers and home builders have had difficulty making adjustments to the new ground realities. The housing and mortgage market have seen readjustments from the highs of recent past. The realignment has also shifted leverage from home sellers to home buyers. Herein, the home buying market has never had so much choice. This is the best time to buy a new house.
There is a lot of choice from oversupply of new homes, foreclosures, and pre-existing homes. Even though there is a lot of choice, there are tools available to you to filter through clutter and find bargains
It is no secret that home sellers, banks, and home builders have been having difficulty in off-loading their real estate. Home builders have gone to the extent of slashing their home prices and offering free upgrades to attract home buyers. Also, with the recent lowering of interest rates, new home loan applications, including for mortgage refinance have risen.
Here are some tips to find home bargains:
1) If you are looking for new homes, one of the best places to look for new home bargains are websites of home builders. On their websites, you can seek homes by location, price, community type, amenities, and other features. Also, you can see the latest discounts and offers in your area.
If you like to find out about different home builders and new homes in your area, then you can visit the National Association of Home Builders to get more information.
The main opportunities for seeking bargains are in completed spec homes, as builders are more amiable to sell sitting inventory. You will have more bargaining power on sitting inventory than ordering a pre-construction home.
Remember, it is more costly for a builder to carry unsold inventory than vacant land.
It is useful to visit various builder sites to compare and contrast home prices and other important features. Once you narrow down the houses that fit your criteria on the web, visit the builder’s community, further narrowing your choices for final evaluation for purchase.
2. Use the internet to find foreclosure properties in your area. In some instances you may have to sign up for a subscription but it may be worth it if you can find a good bargain. Also, sometimes your local newspaper may carry listings of recent foreclosures, in addition to other the regular real estate listings.
3. Existing home (not new) listings can be found in newspapers, free publications you find in shopping areas and restaurants, and on the internet. The most efficient way to search homes is through the internet. It is the most powerful tool for the home buying public.
4. Seek out and establish a relationship with a good real estate agent. Interview several agents and work with someone you like and trust. Real estate agents are an invaluable asset; they are experts in their fields. If you are pressed for time, they will do the house hunting based upon your criterion. Agents can walk you through finding a home, negotiating a price and closing the deal. In majority of cases, they are compensated by home sellers, not by you. Overall, I cannot emphasize the value of working with an experienced real estate agent.
In sum, there are many paths to finding a home bargain, but none as valuable as the services of a trusted experienced real estate agent.