Real estate strategies for 2007

As the winter draws to it’s end and people come out of their homes the real estate market begins to show life. It is a cyclical event. For those who are interested in buying a home to live in there are a few strategies that may help you during this buying season.

If you are going to be buying a home as your primary residence there is never a bad time to buy. Real estate as a long term investment is always going to provide the stability and appreciation necessary to be considered a successful investment. It will be a buyers market this year and this means you have the ability to be more selective in choosing your home. There is a lot of inventory and settling for a home that is not perfect for you is not necessary. Of course, the perfect home can also be be one that you purchase well below market value, not necessarily your dream home. In either case, be more selective and negotiate with sellers.

I also suggest negotiating with your real estate agent. Serious buyers are worth their weight in gold. Sellers are already pliable enough to get closing costs covered. An agent who receives 3% commission from a seller may be willing to contribute up to 1% towards your loan costs providing you an ability to buy down the interest rate. This can be very helpful for those putting 10% or less down as the rates that are attached to these loans are always higher. The additional credits obtained from the real estate agent can bring your rate down to a level similar to those who put down 20%. This should be negotiated BEFORE you have the agent representing you. It is unethical to negotiate this after he has found you a home. If your agent is not willing to do this you may want to shop for another agent. Of course, not all homes pay the agent 3% and as a result this method will limit the homes you will see but with the inventory overload there should still be plenty of options available.

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