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Tips for
buying in a tight market:
Increase your chances of getting your dream house in a competitive
housing market, and lower your chances of losing out to another buyer.
1.
Get prequalified for a mortgage. You will be able to
make a firm commitment to buy and your offer will be more desirable to
the seller.
2.
Stay in close contact with your real estate agent to find out about the
newest listings. Be ready to see a house as soon as it
goes on the market — if it is a great home, it will go fast.
3.
Scout out new listings yourself. Look at Web sites such
as REALTOR.com, browse your local newspaper’s real estate section, and
drive through the neighborhood to spot For Sale signs. If you see a home
you like, write down the address and the name of the listing agent. Your
real estate agent will schedule a showing.
4.
Be ready to make a decision. Spend a lot of time in
advance deciding what you must have in a home so you will not be unsure
when you have the chance to make an offer.
5.
Bid competitively. You may not want to start out
offering the absolute highest price you can afford, but do not go too
low to get a deal. In a tight market, you will lose out.
6.
Keep contingencies to a minimum. Restrictions such as
needing to sell your home before you move or wanting to delay the
closing until a certain date can make your offer unappealing. In a tight
market, you will probably be able to sell your house rapidly. You may
also talk to your lender about getting a bridge loan to cover both
mortgages for a short period.
7.
Do not get caught in a buying frenzy. Just because there
is competition does not mean you should buy it with no conditions. Even
though you want to make your offer attractive, make sure the offer is
contingent upon the inspections that help ensure your house is sound.
Tips to finding your perfect neighborhood:
Your neighborhood has a big impact on your lifestyle. Follow these steps
to find the perfect community to call home.
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Find out if it is close to your favorite spots.
Make a list of the activities — movies, health club, church, etc. —
you engage in regularly and stores you visit frequently. See how far
you would have to travel to engage in your most common activities
from each neighborhood you are considering.
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Check out the school district.
This is important whether or not you have children, as it may affect
the resale value of the home. The Department of Education in your
town can probably provide information on test scores, class size,
percentage of students who attend college, and special enrichment
programs. If you have school-age children, visit schools in the
neighborhoods you are considering. Also, check out
www.schoolmatters.com.
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Determine if the neighborhood is economically stable.
Check with your local city economic development office to see if
income and property values in the neighborhood are stable or rising.
Find out the ratio of owner occupied homes to apartments. Apartments
do not necessarily diminish value, but do mean a more transient
population. Also notice any vacant businesses or homes that have
been for sale for months.
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Determine if you will make money.
Ask a local REALTORŪ or call the local REALTORŪ association to get
information about price appreciation in the neighborhood. Although
past performance is no guarantee of future results, this information
may give you a sense of what kind of an investment your home will
be. A REALTORŪ or the government planning agency also may be able to
tell you about planned developments or other changes in the
neighborhood — like a new school or highway — that might affect
value.
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Make personal observations.
Once you have narrowed your focus to two or three neighborhoods,
walk around them yourself. Notice how the homes are kept, how quiet
the streets are and if the neighborhood feels like a good fit to
you.
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