Why Fall Might Be The Best Time To Buy A Home

A lot of people think the best time to buy a house is during the Spring market.

And, it is…

…in the sense that more houses are listed for sale in the Spring. But, there’s also a heck of a lot more buyers trying to buy those listings.

The thing is, some of the houses listed back in the Spring don’t end up selling. (Usually just because they were overpriced.)

Now, it isn’t like new listings don’t happen in the Fall. There are always new listings coming on the market. But it’s not like, just because it’s Fall and not Spring, prices are necessarily going to fall. In other words, new listings aren’t likely to list for a lot lower than you would have seen in the Spring.

However, the homeowners who did list back in the Spring, are much more likely to be anxious (perhaps even desperate) to sell their home. They’ve created their own problem…they missed the boat by pricing too high.

Which is great news for you, if you’re looking to buy a home:

  • Less competition. (Many buyers stop looking at this time of year…for no good reason.)
  • Motivated sellers. (They’re sick of being on the market, and wondering why nobody bought their house.)

But it isn’t always easy to find those listings. They don’t wave a white flag, or lower their price to some ridiculous amount everyone would notice. If only it were that easy…

Just because someone listed their home back in the Spring doesn’t mean they’ll be all that negotiable.

There are certain things a great real estate agent will know to look for.

And I love rolling up my sleeves and finding the ones we can most likely negotiate the best deals on.

So, got anything you want me to roll up my sleeves and look for? Real estate deals won’t just fall in your lap, but I can certainly help you find one this Fall.

Bonus
Want another reason to buy a home in the Fall?

You can take advantage of year-end sales to outfit your home!

Hardly anybody buys a home who doesn’t want (or need) to make improvements, however small. So why not coordinate your purchase with sales on items you’ll need? According to Consumer Reports, September is an ideal time for buying carpet and paint. In October lawn mowers go on sale, and the same goes for appliances and cookware in November.

I’ve created a free guide to help my clients properly prepare for purchasing a home. If you’re thinking about buying a home in the near future (or ever…), grab a copy! The Ultimate Home Buyer’s Guide

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What Or Who Are Fannie And Freddie, Anyway?

If you are a home buyer or seller or pay any attention whatsoever to the housing market, you have probably heard about “Fannie” and “Freddie.” Fannie stands for Fannie Mae but is really the acronym – FNMA – For Federal National Mortgage Association. Freddie is for Freddie Mac, or FHLMC, the Federal Home Loan Mortgage Corporation. These two companies keep the money for mortgages flowing. Here is how they do it and why they are important.

Both Fannie and Freddie are backed by the federal government, so the U.S. has a vested interest in helping them provide money. These two companies buy the mortgages that have already been made by banks, and are often referred to as “the secondary market.” Then, they pay themselves back by packaging big bunches of existing mortgages and selling them to big investors, such as pension funds, insurance companies, etc. who are looking to collect the interest. Fannie and Freddie have also created guidelines – and forms — that just about every lending institution uses for just about every loan.

You are probably wondering why banks cannot just fund loans, keep them, and earn the interest. If you live in a largely populated area, the big banks probably do have plenty of cash to lend. But let us say you live in a smaller area, such as Flagstaff, Arizona or Joplin, Missouri. Your local lending institutions may simply not have enough money to continually make home loans. So, they make you a loan according to certain common guidelines, and then they turn around and sell it to either Fannie or Freddie. Now, the local lending institutions have more cash to continue making more home loans. The truth is, without Fannie and Freddie, the mortgage market and housing market would dry up in many parts of the country. Not good. This is another reason why the government gets behind these two entities – homeownership is generally seen as good for the country.

Another thing that these entities have done is create the 30-year loan. If we had to pay off our homes in, say, five years, home ownership would be pretty unaffordable in large parts of the country. And the longer the loan term, the more interest is charged and the more profit is made by the large investors. Win-win, right?

Some economists and politicians want to privatize Fannie and Freddie and stop the government from backing them. They argue that there is too much risk if the government, and an endless flow of money from taxes, is involved. It is thought that this may have contributed to the 2008 economic crash. There are lots of views on this issue, but the majority agree that maintaining the status quo is a good thing. If you would like to know more, please check out the Fannie Mae and Freddie Mac websites.

Fannie Mae: http://www.fanniemae.com
Freddie Mac: http://www.freddiemac.com

Image courtesy of www.FutureAtlas.com.

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Can I use an agent to purchase a new construction home?

Yes!  In fact, some builders pay agents to find prospective buyers.  You can also use a buyer’s agent to help negotiate the price and upgrades on a new home.  An agent can be particularly valuable for directing you to newly built developments that match your needs, as well as helping you select reputable builders who are financially sound and respond promptly to buyer’s concerns.

Builders normally require an agent to be present on your first visit to the site.  This is a sensible procedure that allows the agent to be paid a commission should you decide to buy within that community.  Otherwise, if you find a development on your own, make the first visit without the agent, and later make a purchase, the builder may refuse to pay the commission – even if, at some point, the agent became involved in the process.

I’ve created a free guide to help my clients properly prepare for purchasing a home. If you’re thinking about buying a home in the near future (or ever…), grab a copy! The Ultimate Home Buyer’s Guide

The post Can I use an agent to purchase a new construction home? appeared first on Alexandra Larsen.

Majority of Buyers Favor School District Over Home Features

Like the old saying goes, when it comes to homeownership, the most important thing? Location, location, location.

According to a recent report from Realtor.com, getting their kids into the right school was the top priority for a huge portion of buyers. And those buyers were more than willing to give up other features in order to buy a home in their desired school district.

According to the report, a whopping 91% of buyers with children (and 73% of buyers total) said that school boundaries were “important” or “very important” to their search. And of the buyers that purchased a home in their desired school district, 78% willingly gave up desired home features—like a garage, large backyard, or updated kitchen—in order to make sure they got their children into their school of choice.

The Takeaway:
When you invest in a home, make sure it’s in a good school district, whether you have children or not—for many buyers, it’s one point they’re just not willing to negotiate on.

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