You might be wondering if buying a home during the holidays is a wise idea. Here are some good reasons to consider buying your home during the holiday months.

Here are five good reasons:

1.  December and early January are usually slower for sales and  sellers are motivated since they might not have sold the property in earlier months.

2. Rates are the lowest they have been in years and many options
are available, especially for buyers willing to put down 20% or more as a down
payment.

3.  There is  less competition to deal with which means less stress for you during the holidays.

4. Tax advantages: you may be eligible for deductions on points and mortgage interest if you close by the end of the year. Consult your tax advisor. deduction.

5. Lower prices & lower rates.

You should decide if this is a good time for you to buy.  Keep in mind, homes that did not sell over the summer are also available are great deals.  Furthermore, pricing might rise again after the New Year, so it might be a good time to find a bargain.

Good luck with your home search.

Here are 10 basic tips to guide you.

1. Use the Correct Forms

2. Determine Price

Barring extreme buyers’ markets or sizzling sellers’ markets, you will probably want to offer a bit less than you expect to pay. You can ask for guidance, but don’t expect your real estate agent to name a price for you. Picking buyer’s prices is not an agent’s job.

3. Make an Initial Deposit

In most states, to have a binding offer, you need to make a good faith deposit. It could be cash, personal check, cashier’s check or other modes such as personal property, real property, mortgages or unsecured promissory notes.

Spell out who will hold the deposit — almost anybody but the seller!

If your state has “liquidated damages,” the seller could be entitled to retain your deposit if you default under the contract.

4. Disclose your Down Payment

Your down payment could be cash, promissory notes, stocks, real estate or other assets. Generally, it is readily available cash. Some states require verification of your down payment within a certain time period.

5. Name Financing Terms

Please remember that your deposit, when added to your down payment and financing should equal the total consideration paid. Disclose the type of financing you hope to obtain: conventional, FHA, VA, contracts of sale, assumption or other.

6.         Include maximum points, especially if you are asking the seller to pay them.

7.   Include Contingencies

California Association of Realtors (CAR) purchase contracts in California give the buyer by default 17 days to do inspections. Other states are similar.

Many contracts carry provisions for such contingencies as:

·            Appraisal

·           Loan Funding

·            Physical Inspections.

·            Depending on your state law, if you do not remove your contingencies in writing, they may still be in effect, all the way to closing!

8.  Under when possession happens

Is it  on closing? A day after closing?

9.   Understand  Who Pays the Fees

10.. Request Special Reports

If you won the land that the house is on, you have a strong right to the property.  But if others have rights to it through liens, unpaid taxes, or mining rights, they are also part owners of the property.  Even if you know nothing about these risks, as the homeowner you are still vulnerable to such claims on your property.

Title insurance which protects against claims on your real estate by others, requires that certain risks be eliminated before the policy takes effect.  It then covers hidden risks thereafter.  If you have to go to court in regard to your property, the title insurance company will pay for your legal counsel.  If you lose your rights, you should be protected up to the amount of the policy.

Make sure you discuss a title insurance policy with your title company.

When you are ready to buy a home, call me.  As your real estate professional, I’ll be happy to help you through the process.

Well much to his disappointment the home sat on the market for 6 months; He gave two realtors a shot at selling it. He wants what he put into it (90,000  plus he has a loan on that property, so he is not going to net much. He must have his bottom line.

What do you make of all this? On the one hand you would think that move-in ready property should sell fast, in a good neighborhood like the one in this example. On the other hand, the increased cost of the upgrades may have  detrimental effect on selling the home.

Now in a completely different type of market, (sellers market) these upgrades may justify a higher price and even bring in multiple offers; but in a buyers market, they might go wasted. Too bad, the house in my example is a real one, and beautifully staged as well; it sat there and no one wanted it……………for that price.

Then there is always being in the right place at the right time. Maybe it wasn’t the right time for this house to sell. It was out of place in the down market with
REOs and short sales to compete with………..

Pride reductions! What about them says the seller? Another price change? Why now? says the seller. It’s a great house. It will sell.
Then finally the offers start coming in …..slowly at first, then more…………but   they are ‘not high enough’ for the seller. He wants more. He cannot make his bottom line after expenses of the sale…………….he threatens to rent the place……………
The home is a corner lot and has side access. In sellers opinion it’s the best one on the block and people should see the value in it. Still, the offers are ‘just too low’ what’s the matter with the buyers out there, don’t’ they see this is a beautiful home to raise a family? And in a great neighborhood with good schools too. What’s not to like!

In the end who is the winner? What about time spent and time lost? It’ time to walk away…………..for now.