I was considering posting this article later in the week, but then I realized that the tips I’m planning to share with you here need several days of rumination. After all, a home buy will likely be the largest purchase you’ll ever make and certainly is worth much consideration before you take the plunge.

Before you hit the reply button to tell me that this is a lousy time to buy a home, let me say this: for some people this is the perfect time for them to jump into the market. With housing prices dramatically lower than just a year ago and mortgage rates remaining quite low, people who are ready to buy are already out there looking. And, with warmer weather here (or on the way) the spring selling season has begun.

What To Look For When Buying A Home

Over the next few days you’ll want to do some research to learn a few things about the local real estate market, particularly neighborhoods that are tops on your list. Keep reading and we’ll explore some things for you to look for and to remember when you are visiting open houses this coming weekend:

Get Online – If you’re reading this article, then you’re already online. Head on over to Trulia.com to find homes for sale in your neighborhood. Sign up for this free service and acquaint yourself with everything they have to offer to you. Familiarize yourself with “My Trulia” as that will be the section of the site where you’ll spend the bulk of your time. You can find homes on the market that are of interest to you, comparing five homes side by side to get a good feel for what’s out there. Alternate site: SayHomeBuy.com.

Contact Lenders – Maybe you aren’t planning to buy a home immediately, but if you believe that you’ll be ready within the next month or so, then why not contact a mortgage lender to get pre-qualified for a loan? Buyers who are shopping for a home can gain an edge in this market by arriving at open houses with a qualification letter in hand from their lender. In most instances a qualification letter does not obligate you to use that lender, but it does send a strong signal to the homeowner that you’re ready to buy.

Case The Neighborhood – You don’t want to look like you’re trying to break into houses, but you’ll want to visit interested neighborhoods often and at different hours of the day and week. Travel down streets that interest you and then go down nearby roads and through adjoining neighborhoods to see what those areas are like. Make a note of traffic patterns, home conditions, zoning and points of interest (parks, shopping, schools) to help you decide whether the area is right for you. Multiple and varied visits can help you experience the neighborhood as residents see it.

Keep These Points In Mind At The Open House

Once you’re ready to attend open houses, you’ll want to:

Arrive On Time – Choose which homes you want to visit and try to be one of the first ones there. That way, you’ll be sure to get the undivided attention of the real estate agent and receive a personal tour of the home.

Ask Questions – You’ll want to use your time wisely when attending an open house, so be prepared to ask questions including obtaining information you may not have been able to get ahead of time: utility costs, taxes, schools, age of roof, landscaping costs, garbage removal, etc. If allowed, take pictures of the inside and outside of the home for later reference, especially if what was shown online or included in sales literature doesn’t go far enough.

Follow Up – In most cases, homes on the market today are selling at or below list price. And, home prices are much lower than they’ve been in some time. Still, you may not want to wait to long to make your decision because other home buyers will place their bids, especially if a home is priced right, in excellent condition and other favorable terms are included (e.g., closing costs or other fees paid). If you’re interested in the home, let the real estate agent know – she’ll keep you informed about its availability and ask you to make an offer.

Interested? Make An Offer!

Should you find yourself desiring a particular home, but you still haven’t gotten qualified for a mortgage, go ahead and make a reasonable offer as soon as you can. You can contact a lender once your offer has been submitted and speed up that process if your bid is accepted.

This season’s selling season will be slower than last, but homes will be on the market and owners are in the mood to work with any reasonable offer. For the person ready to buy a home, 2009 could be their best opportunity to jump in.

Not many people are calling the bottom of the housing market yet, realizing that in some markets further declines in home values may still be happening. But, for the person who is ready to buy and is looking for a very good deal, foreclosed property can be an excellent way to help them become a homeowner this year.

Consider The Risks

Naturally, buying a foreclosed home can be risky. You want to make sure that the home hasn’t been trashed and that the price you pay for the home minuses out whatever repairs must still be done. What a horror it would be to buy a home and find out later that tens of thousands of dollars in repairs still need to be completed in order to make your home habitable.

But, there is another downside to buying foreclosed property, one that every buyer should consider – is your local market, particularly the neighborhood, flooded with foreclosed properties? If so, your home’s value may take years to recover as the oversupply of foreclosed homes (which are already undervalued) can take a long time to finally sell.

Riding Out A Depressed Market

Of course, if you plan on staying in your home for many years, then you can probably ride out a depressed market. Just keep in mind that a neighborhood with an abundant number of foreclosures could be experiencing other problems, such as an overall deterioration. Get acquainted with where you want to live by driving up and down nearby streets to look for signs of blight. Check with the local police precinct to find out what crime rates are in that area. And, if you see a neighbor ask them for their honest assessment of the neighborhood.

So how much should you bid on that foreclosed home? Well, the first thing you’ll need to do is find out what its current value is. That can be hard to determine in a sinking market, but real estate comparables (comps) as well as checking home values on a site like Zillow.com can reveal that information. Once you determine what the value is, be prepared to knock as much as twenty percent off of the value of the home when submitting your bid to the bank who holds the property.

Banks Aren’t In The R/E Management Business

Banks aren’t in the business of managing real estate and may entertain your offer even if it is considered to be a “low ball” bid. In any case, your initial bid is a good starting point to give you some room to up your price, but not by too much otherwise you defeat the purpose of buying foreclosed which is to save you some money.

One more point: check online sites such as Trulia.com and RealtyTrac.com to keep up with home sales in a particular area. The latter is particularly good at pinpointing foreclosures, giving you a good idea if there are too many foreclosures in one neighborhood or not.

Adv. – If you are a first time homeowner, don’t forget that the federal government is giving to you an $8000 buying credit good through November 30, 2009. For more information about buying a home, finding a mortgage or refinancing, please visit SayLending.com.

The current housing market continues to offer a good news/bad news scenario. First the good news: prices continue to drop. Now for the bad news: sellers are dropping their prices. Well, the bad news for the seller is good news for the buyer who may discover that the home that they are interested in has already seen at least one price reduction, strengthening their position as a buyer.

Falling Prices After The Initial Listing

According to Trulia.com, which tracks the US real estate market, nearly one in four homes currently on the market has already gone through one round of price reductions. This is taking place even as sellers are pricing their homes at rates much lower than a year ago. Finding that their homes are not selling at the original asking price, 23.6% of homeowners have lowered their home prices at least once. Trulia’s data excludes foreclosed homes.

“Summer time is the peak season for buying and selling, and with some of the lowest prices in the last decade, we expect to it be a busy season,” said Pete Flint, Trulia co-founder and CEO. “Everyone wants to think they are getting the best deal available and price reductions are helping to spark a renewed interest in the U.S. real estate market.”

A number of major markets are seeing home prices reduced by their owners at a much greater rate than the national average. For example, Jacksonville, FL homeowners are leading the way with some 36% of the homes having gone through one or more price drop. Tucson, Boston, Los Angeles, Columbus, Dallas and Honolulu are among the markets where homeowners are more apt to drop their prices than average.

Taking Tens Of Thousands Off Of The Initial Price

More telling is just how much homeowners are willing to drop off of their selling price. Trulia says that this average is 10.6% which means that a home originally listed for $229,000 may have already been reduced to about $205,000.

Detroit homeowners are dropping the price on their homes by the largest amount, averaging 23%. This means that a Detroit home listed originally for $159,000 may have been reduced to around $127,000. Trulia noted that those markets with a greater number of foreclosures are forcing home prices down at the greatest rate.

Few experts are willing to concede that the national market has bottomed out yet. However, prices in some local markets appear to be stabilizing, even rising where demand exceeds available supply.

Source: Trulia, Inc.

Adv. – Are you considering buying a home this year? If so, you may be eligible for an $8000 federal tax credit if you are a first time home buyer. Make you move now while prices are low and before mortgage rates start to climb. Please visit PickMyMortgage.com to learn more about the lending process and to review our free, handy financing tools.

April 30, 2010 is a date circled in red on the calendars of some home shoppers. That is the last day when prospective home buyers can enter into an agreement to purchase a home in order to enjoy an extra special benefit: a federal home buyer tax credit of as much as $8000.

Tax Credit

Though home buyers still have until the end of June to close on their homes, a binding sales contract must be in hand on April 30 in order to be eligible for the credit. That credit has limitations including a salary cap of $125,000 for single home buyers or $225,000 for married couples filing joint returns.

Even if you already own a home, you may qualify for a $6500 tax credit. In either case the value of your home, which is to be your primary residence, cannot be above $800,000.

Credit Advice

So, are you ready to take the plunge? Not so fast! At least that is the opinion of some credit counselors who are concerned that potential buyers could be pulled into the market thanks to lower home prices and generous tax credit.

“Many people are able to benefit from this tax credit, but that does not always mean buying is a good option for them,” said Lindsay Alston, a credit counselor with CESI Debt Solutions. “You have to look closely at your income to see if the numbers work.”

Alston went on to say that buyers should make sure that their annual costs including mortgage, insurance, association fees, and property taxes should not exceed more than 30 percent of your gross income. That means if you make $40,000 annually than your home related costs should be no higher than $12,000.

Extra Costs

Lots of home buyers fail to consider other expenses related to owning a home including lawn upkeep; replacement of appliances; roofing and gutters; windows and doors; and other maintenance expenses.

“The tax credit is a great incentive for people who are financially in good shape and planning to buy a new home anyway,” said Alston. “But if you don’t think you can make the numbers work without it, you should probably wait and continue to save, even if it means missing out on the tax credit.”

If you aren’t certain that you should buy a home, ask an objective party such as a financial adviser whether your should buy now or pass on the tax credit. Friends, family members, real estate agents and mortgage brokers may encourage you to jump in, but if you aren’t adequately capitalized you can find yourself battling to keep up down the road.

Adv. — Are you looking for tips on how to control your costs, perhaps how to set up a budget? SayLowerBills.com is your one stop resource center designed to help you gain control over all of your expenses. Don’t let a sour economy hold you down — take charge by learning how to save money and use your resources wisely.

Good news from and for America’s homeowners.

Here’s a bit of good news that will warm your recession-weary hearts: a full 90 percent of homeowners are satisfied with their homes. Yes, in these days of sinking home values, rising foreclosures and a tough economy, most people have no regrets concerning the home they bought one, five or 10 years ago or longer.

Homeowner Happiness

A recent survey conducted for Bankrate.com has dispelled the notion that a significant number of Americans are unhappy with their homes. That survey has revealed just nine percent of homeowners are not happy but even that number is due to factors often beyond homeowner control.

What the survey conducted by Princeton Survey Research Associates International revealed were a number of surprises including:

• Ninety percent of homeowners say they don’t regret buying their home versus a mere nine percent who said they do;

• Among those who regret buying their homes, the most common reasons cited were because they cannot sell their home and move on along with those who say they regret their purchase since they can’t afford their monthly mortgage payments;

• Only eight percent of Americans don’t know what type of mortgage loan they have, down from 26 percent who didn’t in a Bankrate poll commissioned two years ago;

• Fixed-rate mortgages are rising in popularity with 79 percent of those polled saying they have a fixed-rate mortgage on their home;

• Wealthier Americans most overwhelmingly favored fixed-rate mortgages with almost 90 percent of those polled who make over $75,000 saying that their home was paid for with a fixed-rate mortgage.

Nasty Headlines

Greg McBride, CFA, senior financial analyst for Bankrate.com expressed surprise by the results of the survey  and stated, “…all the nasty headlines in the past two years have really moved the needle in terms of mortgage awareness, with a significant drop in the percentage of borrowers who don’t know what type of mortgage they have.”

Clearly, in some markets dissatisfaction levels are much higher than the national norm and those markets including parts of California, Nevada, Detroit and Florida are regular news features. But some other markets including San Francisco and San Joses are showing signs of stabilization if not recovery.

Adv. — Looking for summer clearance bargains? Check out the nBuy Shopping Plaza and our 5,000 retailer strong network of stores!

Association costs can slam your budget.

You bought property in a prime neighborhood where housing values are strong and demand from buyers is good. Unlike other neighborhoods, your area is managed by an association, which determines how your property and home should look right down to the spacing of your rose bushes.

Associations have their pluses and minuses, and are certainly not for everyone, particularly for homeowners desiring freedom of expression including what color to paint a home, whether to have an in-ground or above ground pool, and other personal touches.

Homeowner association fees can vary widely and will sometimes scare potential buyers away. However, on closer examination your association may present some value beyond maintaining order in your neighborhood, including the following:

Pool access — The cost of maintaining your own pool may not be worth it to you, but having access to a community pool that is included in your association dues might be worthwhile. Leave the cleaning and maintaining to someone else — use the pool as much or as little as you like.

Lawn care — Some associations provide complete groundskeeping from cutting the lawn to planting seasonal flowers in your yard. This can be beneficial for the homeowner who enjoys a well manicured lawn, but doesn’t want to maintain it herself. If your landscaping tastes are different, you might find the association’s choice of gladiolas instead of gardenias to be a bit restrictive.

Utility coverage — If you live in an condo or similar clustered housing unit, your utilities may be covered or at least certain expenditures such as water, sewage, trash pickup, heat, cable, Internet and common area lighting. Consider these matters when you see your $400 monthly association fee.

Parking area — Two spaces for parking may not see like a big deal, but if your community has limited parking it can certainly beat the cost of renting garage space. Your association fee may also cover lot maintenance including snow removal, general upkeep and and blacktop resurfacing.

Exercise amenities — Besides a community pool, your association may include tennis courts, hiking trails, basketball courts, a fitness center or something as simple as a horseshoe pit or bocce ball court.

There are some cautions potential homeowners should know about before buying a home with a homeowner’s compact. Firstly, you’ll need to abide by the rules — no exceptions, except as approved by board approval. Secondly, there are many hidden costs that can spring up including major renovations to the grounds, parking areas and streets and in the case of clustered housing the buildings, such as the roof. Your monthly fees may not cover these expenses; you could be billed thousands of dollars separately for your share of the improvements. Thirdly, the association board should be financially solvent. Although stricter laws in recent years have required associations to have reserves, these funds can quickly become depleted if a major improvement or maintenance issue arises.

Ultimately, your decision to buy a home with a neighborhood compact should be weighed by your willingness to submit to sometimes onerous regulations and the cost of maintaining such an arrangement. Beyond that, your attorney may have a thing or two to say, with the appropriate warnings to help you make an informed decision.

Further Reading

St. Paul Real Estate Blog: Sky High Association Dues; Teresa Boardman; Feb. 2009

Navigating through short sale confusion.

You’re working with a real estate agent who has found several homes that are within your price range. As you visit each one, you and your spouse take in various layouts, mentally marking off what you like and dislike about each house. Quite unexpectedly, you find a home that you both love and one that is priced $20,000 under your budget. Giving each other a “this is the one!” glance, neither one of you can hold back on your enthusiasm, feelings that are quickly tempered by your agent who states, “By the way, this house is a short sale.”

“Short sale” is a word that may be feared more than “foreclosure” for today’s home shoppers. With a foreclosure, the home is in the bank’s hands and is ready for resale. With a short sale, the home is still in the owner’s hand, with the bank standing in the way of a possible approval.

Low Prices

Short sales are enticing for one big reason – low prices. Owners, desperate to get out from underneath a loan they can no longer afford to pay, may set the home below market value to help it move. Trouble is, if the bank doesn’t like that price, it stands to lose thousands of dollars in any sale. If the bank isn’t receptive to your deal, then your home buying dreams may soon fizzle.

With a short sale, you do what any home buyer does. If you like the home, you present an offer through your agent who will then extend that offer to the buyer through his agent. If the seller accepts, you’re not done – the bank will have to review the sale and decide whether to let it go at a loss. This process can take weeks, if not many months, and may depend largely on local market conditions.

Market Conditions

For example, if the housing market is fairly strong, with homes bought and sold fairly regularly, the bank may be cool to the idea of a discounted house. However, if the neighborhood has homes that have been lanquishing on the market for months, maybe a year or longer, then the bank may accept your offer provided that it is a strong one.

One possible way to help the process move forward faster is by offering to pay slightly above the seller’s asking price and foregoing special requests such as splitting closing costs and asking that certain problems be repaired first. Having an approval letter from your mortgage broker may also help your case. Still, unless you know someone who works in the inner bowels of the bank’s mortgage department, you may find the short sale process to be a big mystery.

Buyer Patience

What every buyer of a short sale needs are two things: patience and the intestinal fortitude to survive a possible rejection by the bank, missing out on opportunities to buy other homes that don’t come with the baggage of a short sale. Short sales can yield big savings, but they often fail and take long to complete.

See Also – Why Short Sales Take So Long (And Often Fail)

The residential real estate market can present challenges to sellers and buyers alike, with the former wanting to get the best price for her home while the latter wants to receive a good deal. As you might surmise, there is some tension at times between the two parties, what real estate agents seek to alleviate to make a deal happen. As a buyer, you can negotiate the price of a home, perhaps shaving more than the customary 5 percent off the asking price. There are some things to consider as you negotiate, tips that can help you save money on your home purchase.

Motivation

Why is the buyer selling? Oftentimes you can uncover this information with the help of your real estate agent. Seller motivation may be the key here: if the homeowner is desperate to move, perhaps in a bid to relocate to another city in pursuit of a job, then their desire to negotiate may be a strong one.

On the other hand, do not expect much room to negotiate if the seller is downsizing, perhaps is she is moving on to senior living or desiring to rent an apartment. For many owners, the home is their chief asset and the funds they get from the sale of the home will cover their retirement needs.

Reality

Some buyers are under the impression that they can offer a low-ball price and the seller will be glad to accept. Instead, the seller is likely to be insulted and will not think that you are a serious party.

You need to know the local market and that comes by reviewing comparables or comps for the neighborhood. If the home is unfairly priced, then you may have more room to negotiate. If the home is priced right, then your offer needs to be a strong one. Your initial offer should be competitive, within range of what they might accept with room for you to bump your price up.

Offer

What exactly should you offer for a home that is of interest to you? Let’s take a look at one example. You found a home that is listed for $250,000, just about right for the neighborhood. Knowing that you may be able to shave 5 percent off the asking price, you offer $230,000 to get the ball rolling. This amount is about 8 percent below the asking price, not too low of an offer, and a good place to start.

If the owner receives your bid, you may get a counter offer. The seller may then ask $245,000, which already saves you $5,000. You can present a new offer for $235,000, demonstrating that you are a serious negotiator. The buyer may hold firm or counter offer again, perhaps lowering her price to $240,000. At this point you can accept the offer or present your final offer of $237,500, which is exactly 5 percent off of the asking price. The buyer may accept or reject your offer, leaving you with a decision on what to do next.

Extras

Home shoppers should keep in mind that there are some extras that can be negotiated when buying a home. This is especially important to keep in mind if the seller is not showing much willingness to drop her price.

Those extras can include things of value that she may not need, but you will have to pay for if you bought the home. Such items include drapes, certain appliances such as a washing machine and dryer, yard furniture, perhaps even living room furniture. Consider what these items would cost you if bought new and keep the value of them in mind as you negotiate. You may end up paying $245,000 for the home, but come away with more than $5,000 in furnishings.

Resilience

Serious negotiators know what they want and stick to their prices no matter what. If you clearly believe that a home can be had for less, then negotiate for a lower price. Avoid showing enthusiasm for the home and keep your emotions in check. Take note of what repairs need to be done and ask for assistance to have these done.

If you cannot get the price that you want, then be prepared to walk away. There are many other homes for you to consider and better deals to be had. Besides, when you move away from a deal, a homeowner may have a change of mind and accept your offer.

Author Information

Sam Dressler is a UK based property expert. She helps consumers navigate the buying and selling process. Did you know for example that in Scotland home reports are a legal requirement. Get help and information like this from her various work across the web.

So, you want to make a killing on foreclosed property do you?

If you do, then there are several ways for you to find a foreclosure and get a hold of the property before someone else snags it. Yes, foreclosures are one way to profit in the real estate business, but you need to know where to go and act quick! Keep reading for some useful tips.

Foreclosure Deals

HUD – The U.S. Department of Housing and Urban Development or HUD is a marketer of foreclosed homes. HUD takes ownership of houses that the FHA or Federal Housing Authority has repossessed after homeowners of FHA-backed loans fail to keep up with payments. Homes are offered to people who plan on living in the homes first.

If no owner occupant is found, then HUD property is then made available to investors. Check the HUD site frequently for updates.

Foreclosure.Com – You can find a complete list of foreclosures in your area by visiting Foreclosure.com. The site pulls together more than 1.2 million homes that are “distressed” meaning their owners are in preforeclosure, bankrupt, foreclosed, and tax lien listings. In addition, FSBO listings are featured.

You can get a 7-day free trial followed by a $39.80 per month charge to your credit card. You can cancel at any time.

Do the Drive – Drive around neighborhoods that interest you and contact realtors about homes that are sitting vacant. Many times these homes are distressed properties and may have already been taken over by the bank.

Foreclosed properties are easily recognized as curtains are missing and the lawn is typically not well maintained or some otherwise “vacant’ appearance is evident.

Visit Your Government Office — A drive to your county seat can reveal information not immediately available elsewhere. The sheriff’s department might have a list of homes ready to be foreclosed; get a copy of that list and visit the home before foreclosure takes place.

Who knows, but you may be able to make an 11th hour bid on the property. A true “white knight” response for someone who is in crisis!

Foreclosure Considerations

Not all foreclosed homes are bargains, however. Many homes are in desperate need of repairs or complete overhauls as the homes were neglected or abused by their most recent owners.

In some situations tax bill and utility bill liens will be added to the final cost of the home purchase and must be considered when placing a bid on foreclosed property.

See Also — How to Avoid Becoming a Foreclosure Statistic

You have been shopping for a new home and have found one that suits your needs. In fact, it is as close to being the “dream house” you have been shopping for. Unless your desired home is brand, sparkling new, it may have certain issues that need to be settled before you can close on the deal. Some issues are easy to resolve, but others just may be a deal breaker.

1. An old roof. The roof may look good, but your inspector says that it has one, maybe two years left before it must be replaced. Worse, there is already a layer of shingles underneath and that means that all shingles will have to be removed. The cost will start at around $5,000 and push up to $10,000 and beyond for larger roofs. If the homeowners doesn’t bend on the price, this is a repair you’ll have to carry out soon after you buy the house.

2. A buried oil tank. In some states a home with a buried oil tank cannot be sold without being removed. Its environmental concern that might cause the remaining oil to leak into the ground and pollute the surrounding area. If you thought that replacing a roof was expensive, then just wait: removing an oil tank can set you back by several times the cost of replacing a roof.

3. HVAC concerns. No air-conditioning? That’s no problem if you live where summer temperatures rarely swelter. But, it is a problem if heat waves routinely occur from May through September and the HVAC is broken or absent. A new system can cost from $5,000, but just wait: it will cost more if duct work needs to be run. This deal might need to be renegotiated if the HVAC system is working, but old, and is not likely to make it through the next heat wave or next winter’s cold snap.

4. Plumbing problems. Leaking pipes can be mended, but what if the water pressure is weak? How do you fix that problem? You may also discover that the homeowner’s plumbing work is not up to code, requiring that a plumber come out and refit some pipes, run a new line and, worst of all, dig up the front yard to reconnect to the street. A serious plumbing problem can rival the cost of removing an oil tank.

5. Windows and doors are old. The house is immaculate, but it was built in the 1970s when heating and cooling standards were not as stringent as they are today. The roof is new and the HVAC system is in very good shape. Nothing else looks out of sorts until you expect the windows and doors. Single pane windows won’t keep out the cold or keep in the heat. Your summer bills may be manageable, but old windows can translate into big heating bills beginning in November and running through April. Figure that you’ll pay at least $150 for each new Energy Star window and upwards of $1,000 for each energy efficient door.

Deal Breakers

There are other deal breakers you can catch before you put a bid in on a home. If the local schools stink, then move on. You don’t need to have kids to know that good schools rule and the entire community thrives or suffers. Easement issues, odd neighbors, nearby electrical lines and a towering water tower can also scuttle the deal.

See Also — Making the Offer to Buy a Home