5 Things to Do in A Buyer's Market
With so many homes out there, buyers now have more time to ponder available homes.
In Arizona the average number of days a home is on the market is 96 days, according to the Arizona Multiple Listing Service for February. That’s up from 54 days in February of 2007.
And there’s a record number of homeowners trying to sell their homes in today’s slowed market. In Arizona alone, there are more than 50,000 houses and condos – of which about 95 percent are in Metro-Phoenix – that were listed in March, according to preliminary figures from the Arizona Regional Multiple Listing Service. A healthy market typically carries about half that number, analysts say.
Even in a market that favors buyers, you need to do your homework if you’re trying to find the perfect home. Try these five things:
Get prequalified. Prequalification tells you how much you can afford and what you can expect to pay monthly. It helps narrow your choices.
Looking at homes that aren’t in your price range is frustrating. If you fall in love with a house you can’t afford, you’ll have a hard time being satisfied with anything else.
Determine where you’d like to live. If you have school-age children, research schools and test scores. Look into neighborhood services. Check out transportation routes. If you take the bus, look for the nearest bus route. If you drive or carpool, drive from that area to your office during rush-hour traffic to know what to expect.
Research home prices and have realistic expectations. Sales of existing single-family homes in Maricopa County increased more than 25 percent from February to 5,385 as the market cycled out of its traditional post-holiday slowness, according to the realty studies program at Arizona State University. The median home price increased, as well, though at 2.1 percent, bringing it to $265,470. That’s up from $260,000 in December, according to the Arizona Real Estate Center at Arizona State University’s Polytechnic campus.
Nevertheless, there are many sellers who still are expecting last year’s conditions. Some have overpriced their homes and won’t negotiate. You may not be able to budge them from the price they want. You can try waiting it out for a few months, and if the home hasn’t sold, extend another offer. Or look for another home whose owner is willing to negotiate.
Get a home inspection. This will point out defects or problems that should be fixed. It also will help determine how many years are left for the major appliances and features, such as the roof and carpeting.
Interview several lenders. Have them explain your options. Tell them your concerns and whether the payment amount is an issue. Choose someone who provides service (you’ll know by how quickly they return your phone calls) as well as good terms. Make sure you understand all aspects of the loan you’re getting.
See more:
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