Why Now Is The Time To Buy Your Home Cheap In Today's Real Estate Market

by: Ted Mazzei

Obviously the real estate market has crashed. The Real Estate Bubble has Burst. Home prices have tumbled, and you can buy a home really cheap today and profit from this opportunity down the road when the market comes back, as it always has. It is a Buyer's Market like we have never seen before, and the opportunities are very favorable now to buy a home cheap.

Some other additional reasons to buy your home today: Home prices are at historic lows, foreclosures numerous in almost every market nationwide, interest rates still very low, banks and mortgage companies anxious for new loans, real estate agents starving for business, and sellers highly motivated to sell before they lose their home entirely through foreclosure.So you may be asking why buy now if home prices are going to continue to drop. For one, like many investments decisions if you wait until the "bottom" of the market, you will simply lose. No one knows what or when the bottom in the real estate market will be. There are already some positive indicators that the trend is beginning to level off. Therefore, the main motivation is to take advantage of the market now before it turns around again and make your best deal today. In other words, buy your home cheap today.

Here are some recommendations to follow in making the best deal in your favor. Number one, always make sure that your credit file is clean, accurate and reflects above average scores, so that you can qualify for the best loan terms with your bank. Keep in mind interest rates, points and fees are also negotiable today. So shop around at least with three local banks first before you decide on your loan package. Then get pre-approved (not pre-qualified, I mean pre-approved) for a certain loan amount before you even begin to search for your dream home. By being pre-approved up front, all parties will know that your loan will actually close, and therefore the seller will definitely entertain your offer. Then get familiar with the market area, hire a reputable real estate agent who can provide you with a wealth of information about the market. But do not, I repeat, do not allow the real estate agent to influence your offering price on the home you chose to purchase. Don't forget to also check out the foreclosure and real estate auction listings as well. You may find the home of your dreams and the best prices here.

Once you have decided on a particular home, get a bona fide real estate appraisal up front. This is extremely important today due to the recent decline in real estate market values. You do not want to offer more than the house is worth. More than likely the seller will even pay for this, if you ask. Then offer much less than the appraised value for the home. From this point on everything is negotiable, and it is up to you and no one else to decide how much to pay for the home. Stand firm, and if the seller does not agree (on your predetermined price) on your terms, simply continue shopping, because now is the time to buy your dream home cheap.

Ted Mazzei is a previous real estate appraiser, mortgage loan officer, mortgage company owner, and owner of www.homes-cheap.com