A Buyers Market

      Is the real estate section of your local paper filled with stories about how slow the real estate market in your area is? Is it taking months to sell the homes on the market? If this description fits your area, and you have been waiting for the perfect time to buy a house, this is the time!
      This kind of market is referred to as a "buyers' market" for good reason--it is an opportunity for buyers to select from a large number of homes that could satisfy their needs. Everyone involved is ready to bend over backwards to make it possible for you to buy your dream home. Most sellers are highly motivated and so are the local Realtors, loan officers, title companies, and other professionals involved in the transaction. It is important to remember that the real estate market runs in cycles, and conditions can change without a lot of warning. This could be the perfect time to contact a good Realtor to discuss your needs and to explore the possibilities available to you.

A Good Start!

      When an agent begins to work with a new buyer, he or she will sit down with them and ask a lot of questions, and do a lot of listening. In the initial buyer interview, we try to get a clear idea of what you are looking for, as well as the approximate price range, considering your overall financial picture. The agent will explain how we work to represent you, what the local market in Louisville is like, and what we can do to help you locate that perfect home.
      At this initial interview, it is important for buyers to be as clear as possible about their needs. After you have talked and decided how much you can comfortably spend, he or she won't show you homes you might love that are way out of your price range. If the agent knows that you have bad knees and want to avoid stairs, you won't be taken through three-story colonials with top floor master suites. Promoting clear communication with our customers is good business for us, and it can save you hours of house hunting.
 

A Great Opportunity

      It may seem like "the impossible dream" to first-time buyers who have to stretch in order to purchase their first home. Many younger buyers can afford the monthly mortgage payments, but they may have to get creative to cover the down payment and closing costs.
      If you are thinking about buying your first home, contact a real estate professional. If your funds are limited, there may be possibilities you have not considered, such as local or federal loan programs that can get you moved into your new home. Sellers are sometimes willing to extend a small loan to help cover closing costs in order to complete the sale.
      You should also consider the many housing options available. If you aren't sure that you can afford a single-family home, there are beautiful condominiums and townhouses with amenities and prices that are designed to appeal to first-time buyers.
     

A Realtors Services

      "Few things in life are free", right? One thing is still free--the guidance and assistance of a real estate sales professional for home buyers. In the traditional real estate sales transaction, it is the seller who pays the commission that is divided among the various sales professionals involved in the transaction when the home is sold.
      Unless you are hiring a buyer's broker, you get several free services from the Realtor: 1) Target marketing which gives you quick, precise targeting of homes you want, in a price range you can afford. 2) Loan pre-qualification. This saves you much time and the potential disappointment of finding the perfect house (which you can't afford). 3) Guidance in obtaining the best mortgage terms. The marketing professional knows that if there is no financing, there is no purchase. Most Realtors have become quite expert in the mortgage market. Another old saying is "The best things in life are free."
 

Affording A Home

      It is important to know how much you can afford before you begin looking at homes. You should also talk with a lender and get pre-approved for a loan. This puts you in a stronger negotiating position with a seller.
      As a rule, your monthly housing costs should not be more than 28% of your monthly pre-tax income, including the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.
      Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your Realtor can help you make the basic calculations. And remember, buying at the top end of your price range gives you more time to outgrow your home, and can save you money in the long run.