valentinosdcpulse

As a famous sage (actually a Realtor in North Carolina) once said, the media has made it sound as if in the current buyer's market, homes are almost free.  While it is true that home values have dropped and made it possible for buyers to buy a lot more home for their money, this does not mean sellers are willing (or able) to give their home away.  The media hype has made first time buyers unrealistic and unprepared make a successful bid on a home. 

It is also true that prices are down from a year or two ago, that homes are plentiful, that interest rates (though rising a bit) are still historically low, and government incentives to buy are enticing.  However, in some markets (such as DC) homes in the price ranges most attractive to first time buyers have been snapped up by investors.  There is often a bidding war on lower priced homes.  Often times, the best deals are on homes that are owned by banks, which have intentionally been put on market at prices so low that they invite competitive bidding.

If you are a first time buyer who hopes to walk away with one of these homes, you need to be realistic and prepared.  Engaging the services of a competent Realtor with insight into the local market is essential.  Being flexible about the house is crucial.  It is highly unlikely that you are buying your dream home, so be willing to bid on an acceptable, affordable home.  This increases the likelihood that your bid will be accepted.  Once you have your first home, you are building your future for your next home.

Sellers in the current market may have to accept far less than they hoped, so the buyer is likely to win over other bids (if it comes to that) will have a better chance if he make the transactions trouble free for the seller.  Here are few things you can do if you are ready to buy and want your offer to win out:

• Complete a loan application so your financing is ready to go.
• Have a complete pre-approval letter signed by a person (not a form letter).
• Be willing to pay more than the asking price.
• Come equipped with a large downpayment.
• Be willing to buy the home as is and avoid haggling over small repair issues with the seller and put this in the contact.
• Still insist on a home inspection but within 5-7 days.
• Aim for a quick escrow.

You don't want to make an impulse decision when buying a home, but time is of the essence these days.  Coming to property showings ready to buy will serve you well!

Rachel Valentino can help you prepare to become a homeowner. She is very familiar with the DC metro area, so she can direct you to appropriate and affordable properties in the District, northern Virginia, or eastern Maryland.