rickjones posted on December 06, 2011 08:37
Ok. Now that you know you will NOT find the perfect beach house, lets get busy. This is a buyers market and you want to make sure that you do not leave any money on the table when making an offer. You have read that many clients may be selling because they HAVE to sell, and may be behind in their payments.
Did know that your realtor can get information from tax records indicating what type of mortgage that was taken out at the time the current owners purchased the home you are interested in? While this should not cloud your judgment as to the correct market price of the house, any information regarding the position of the seller is always helpful. The mindset of many homeowners is that they do not want to sell a property for less than they purchased it for. Remember that this is not YOUR problem, but theirs. As a buyer, your goal is to purchase just a bit below the current market price, so as to protect you on the chance that the market slips a bit more. The seller wants to recover all costs, but if they purchased a home in 2005 or later, that is often not possible.
In new construction, have your realtor find out what price the builder paid for the land, and estimate what his construction costs are. No one is entitled to a fat profit margin in a tough selling environment.
Once you find a house that you want to purchase, remember that the larger the down payment, the better chance you have in the purchase process.