Buying a home this summer? Tips on smart shopping

Many home buyers will be out this summer, after much waited anticipation. They are ready to make the dream of homeownership come true. Combine that with bargain prices and great interest rates and the idea becomes more attractive.

It has been estimated that as much as 2/3 of home buyers in the market are buying for the very first time, which is an unusually high number.

Those less effected by the recession are likely to do better at the mortgage lender's office, especially if their credit scores are high.

1. Get prequalified BEFORE you go looking for your home.

Many realtors are requiring that their clients have a financial conversation with a lender prior to looking at homes, so they know early in the process and have evidence that they are truly eligible. Based on the times we are in the lender will most likely need more information that just how much money you make and how long you've had your job, now it's asking for tax returns, credit reports, and pay stubs.

2. Leave the kids at home

As wonderful as it feels to bring the entire family, this can also throw off buyer's focus, particularly if they have small children, and are trying to keep tabs on the kids at the same time focusing on the features and benefits of each property they are viewing. Bring the kids back after you have found the home that you will be bidding on. In today's market buyers are looking at a fairly large number of homes because you might have to bid on several in order to get one offer accepted. Hauling the kids around to each house can be very tough on them, especially now that temperatures are heating up.

3. Find highly motivated sellers

Although most homes that are selling are priced incredibly well and sold by banks, there are still a good number of "normal" sellers that have to move for some reason or other, and may be willing to take less than asking price for their home. Seller motivation levels are high right now as they struggle to compete with foreclosures, but in many cases carry upgraded that foreclosures do not offer. Look at how long the home has been on the market, and if there have been any recent price reductions.

4. Be particular, but act quickly.

For kids with school schedules, both buyers and sellers prefer to uproot during the summer to be able to settle in for the regular school season. However, if for some reason this is not feasible, don't worry that your kids won't adjust if starting once the semester is underway. Regarding market supply, there is currently a 3 1/2 month inventory on the market. Available listings are dropping quickly - currently in the 35,000 range. So while there are great deals to be had on the market, those deals are getting snatched up quickly and bringing multiple offers with them. If something strikes you, it's best to write an offer quickly - in 2 days it might be gone

First-Time Buyers Becoming a Larger Segment of the Phoenix Real Estate Market

Some analysts are saying that the upswing in market activity is the result of another speculator's boom. Lately there has been a foreclosure buying frenzy happening across the valley which has come to the attention of other parts of the country. While there's no doubt that investors are finding great bargains out there, especially in older areas of the valley, they are not dominating the market like they did in '04-'06. Last month 19% of home sales were to investors, according to Mike Orr of the Cromford Report, a housing data tracking service that monitors stats of the Phoenix area real estate market. During the boom 35-40% of sales were to investors.

First-timers are the fastest growing group of home buyers right now. It is believed me some that it will represent as much as half of home sales very soon. And remember, first-time buyers have the $8,000 tax credit coming back to them from the government. There are other programs in the works, i.e. Neighborhood Stabilization, etc, that is more geared toward owner-occupant buyers vs. investors.

We are at record home sales levels, and prices are moving up. Median price is $116,500, up from $115,000 at the end of April, representing a 1.3% increase. While it may not sound exciting, a year of this would be over 15% in appreciation.

$/square foot prices for active and pending homes climbed as well, now at $84.86.

The price range for homes under $150,000 are now receiving multiple offers and are now often times sold in a few days rather than weeks or months.

Most investors are now paying cash for homes. It's a different breed, not the speculator type we saw a few years ago that put 0 down and could easily walk away. Investors who finance are having to put down 20-25% minimum to purchase. They aren't likely to walk away from these obligations.

The market is seeing a surge of seasoned, experienced, and conservative investors and savvy first-time buyers - this is a much different market than seen in previous years.

Phoenix Real Estate Market Showing Signs of Recovery

The smallest decline in valley home prices in over a year happened last month - fell from $127,000 to $125,000. Sales last month nearly doubled over April 2008. Home prices are showing signs of levelling off. These indicators could be that the local housing market has hit bottom.

Existing home sales have been climbing steadily since fall. In the time we are in now sales and median prices tend to increase as buyers move to lock in a purchase before the start of school and holidays, according to Jay Butler, director of realty studies at ASU. Some improvement would not be unexpected.

Foreclosures were less in March and April, more indicators that the market may be showing signs of improvement. The number of homes on the market that are foreclosed property is also shrinking, which helps prices.

More short sales vs. foreclosed homes on the market will help slow foreclosures. And owners are also starting to realize that lenders may work with them, i.e. loan modifications.

How Do I Sell My Home Quickly?

At a time of economic uncertainty, more and more people are willing to relocate out of state for find themselves gainful employment. These individuals often cannot wait too long for their home to sell, as they will be making 2 payments - one on their current home and one mortgage or rental payment on a new home - financially just not doable for most. There is such a hurry that mistakes cannot be made. Pricing too high and "testing" the market is definitely not a viable strategy for these sellers, as most likely their home will not even be looked at by today's hyper-bargain conscious buyers. And competing against foreclosures, which are accounting for about 80% of all home sales today, there is another potential hurdle to overcome. Pricing below other "normal" homes by 10% or more seems to be the best advice around.

1. Make improvements to the home - buyers just want to move in, they don't want to fix anything or deal with a property that needs work, unless that property is steeply discounted. If you don't have savings and have to borrow money to fix the home and make it presentable, than do so. You money will be more than made up. Try borrowing from friends and family first. You may be able to get a contractor to agree on delayed payment, such as when the home closes so you don't have to come out of pocket. Alot of businesses are struggling right now and are able to come to different terms than in the past.

2. Clean it up - clean and declutter the home, these 2 items could make a substantial difference in buyer perception, and often don't cost anything, other than time involved and elbow grease. By decluttering, remove anything visible that is personal in nature, family photos, etc, as this will deter the buyer visualizing themselves in the home, rather that it is someone else's.

3. Curb appeal - Buyers primarily use realtors to email them possible home listings. Most times buyers will opt to drive by your home before deciding if it's worthwhile to set up a private showing of the home, so make sure eyesores from the front of the home are removed.