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Buying a new Home in Today’s Market slump.

If you’ve ever bought a home, you know what a stressful and nerve wracking time it could be. Fortunately, one of the last steps in purchasing a  home is actualy preparing the offer for the buying process. At this point you have probably found the property you’re interested in and it meets all your needs. Some people are comfortable with preparing an offer when starting the dealing process of purchasing a home, however it is advisable to get the help of a real estate agent or other certified professional to help with the negotiating process.

Some points to consider when writting up an offer are, how much will you make an offer for?. Did you list the terms and conditions that suit your needs for the person that you are purchasing the house from  ? What is the amount of money you are willing to put as a down payment?

Negotiating an offer.

Suzie Orman on Mortgages

Negotiating an offer is part of the process of buying a home, it is rare for anyone to purchase a home for the asking price unless the market is booming and there is competition between two parties bidding on the same house.

With foreclosures all across the the United States, there has never been a better time to puchase a home for those who  can secure a mortgage. In some areas,properties are selling for a quarter of their value. Homes that were valued at 300,000.00 $ can now be found on sale in the market for less than 75,000.00. It has been a sad reality for many home owners who have fallen victim to the housing crash in the past year.

However with foreclosures being at an all time high, it makes this the perfect time to snap up a great deal.

The conditions you place on an offer must be met, if not, you are not bound to the offer. This biggest hurdle today is being able to  secure a mortgage loan from the banks in the first place. Most banks are not lending money even though the Bush administration set forth a 700 billion bailout package that went directly to the financial institutions for the sole purpose of stimulating new loans and mortgages. It looks like the banks have not held their end of the deal, leaving the housing market in the same bad shape as it was.

In the past general people were not in a big hurry to sell their homes, so it was up to the buyer to make a good impression by showing the seller the mortgage pre approval from the financial institution. It is good advice to put your loan pre-qualification in your offer to let the seller that you are serious about buying.

However with the current economic situation, many homeowners are selling to prevent a foreclosure and will be in a hurry to sell their homes. Just the same it is important to show good faith that you are serious at buying the home. This has become almost an ethical practice, since if the seller is desperate to sell because of a pending foreclosure, it is of vital importance that you do not waste their time.

When economic times are good, a seller will most likely make a counter offer to your proposal, this is normal practice it is merely a part of the bargaining process and you could either make another offer or you can refuse all together and not purchase the home.

When economic times are tough, sellers may be less inclined to make tough counter offers due to poor demand in the housing market and may accept at the first offer.

In conclusion, there are both benefits and detrements for the buyer in the current housing slump. On one hand there are an abundance of great deals to be had, on the hand, the banks have become reluctant to loan mortgages as a whole and this may be the biggest obstacle in todays real estate situation.