Here's the scenario.  You want to buy a home and you have finally saved up enough money for a down payment and, luckily, home prices and the interest rates are still low.  What should you do first?

An article in Inman News, by Tara Nicholle Nelson, outlines the steps you should take to make this happen in 2012.

1.      First and foremost, says Nelson, fix your credit problems.  "More deals than ever are dying on the vine and credit problems are a top reason home-sale transactions fall out of escrow."  Review your credit report now and correct any errors.

2.      Do Your Homework: 

• Research the areas and neighborhoods you like. Nelson suggests going online to NabeWise.com for great information. Then look for an agent who is familiar with the areas you have chosen. "They can give you a deeper view into the need-to-knows" says Nelson, "like how long homes typically stay on the market and whether they generally go for more or less than the asking price."
• Research local agents. Ask your family and friends for a referral and then follow up online, searching online reviews and their website. Then arrange to meet them to see if it's a good fit for you.
• Look at all types of homes for sale...including distressed properties. When you interview agents, make sure they are knowledgeable in short sales and foreclosures, because there are some good deals to be had! "

"In some areas, more than 40 percent of the homes on the market are short sales and foreclosures, and they involve a very different timeline and set of facts than traditional home sales." Says Nelson, "Read up and talk with the agent candidates you interview about what you should expect from these types of listings, to minimize surprise and manage your expectations way in advance."

3.       Don't Stop Saving!  Nelson says that no matter what amount of cash you have on hand, when you start house hunting, making offers, closing your transaction or moving in, the time will definitely come when you'll wish you had more.

"You might want to ratchet up your offer a bit to best another buyer, or you might just end up with a place that needs a little sprucing up." Says Nelson. "It might be months before you know exactly what you'll need extra cash for, but now is not the time to press the gas pedal when it comes to your monthly spending."

4.      Start Clearing Out:  Especially if you have a house to sell.  This is the time to start donating, selling and giving away all those things you have accumulated.

"Use the proceeds to pad your cash cushion, or tuck the donation receipts away for your tax records next year." suggests Nelson.

This is a great time to buy a house!  Use these tips to make the process easier and be able to get into that new house in 2012!

Read the full story at Inman News.

photo credit: Justin Shearer

Posted in Marketing, Buyer Resources, Ownership, Real Estate Market Conditions

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