BUYING AT THE BOTTOM: WHAT YOU NEED TO KNOW

While others argue over whether this really is the bottom, savvy buyers are taking advantage of the best market in years to buy a home now. Let’s give aspiring homeowners the know-how they need to snatch up a bargain, from where to look, to what to watch out for to how to get financing that will make their home ownership dreams come true.

I. Here Are the Best Kind of Homes to Look For

1. A property with a clear ending! Estates, trusts, divorces and foreclosures.
2. A seller in trouble. Sellers who are behind on their property taxes, have a failed business or just need cash.
3. A scorned homeowner. Just like a scorned lover, the homeowner had another buyer who just backed out, they will almost always sell the house for even less.
4. A shopworn listing. A home that’s been on the market for more than 60 days or a home that’s had numerous or aggressive price drops always signals a good deal to be had.
5. A home with an overgrown yard. It always means the homeowner is ready to give up.
6. A vacant home. No one likes to pay a mortgage on an empty house.

Don’t’s

1. Don’t go for a short sale unless you have plenty of time. They can drag on and on because of the bidding process and you can end up paying the same money or more with all the increased costs, repairs and the rise in interest rates while waiting to close.
2. Don’t compromise on what you’re looking for just to get a ‘good deal.’ It’s no deal if it doesn’t have the criteria you want in your home.

II. Insider Tips to Spot the Seller Ready to Take a Low Bid

1. Check the closets. See if the wife’s or husband’s clothes are no longer there.
2. Check the tax records. Find out how much the seller owes. You can get the records at the county clerk’s office, and in some municipalities the town records are online.
3. Look for give-away words. In advertising words like “bring offer” or “drastically reduced” mean exactly that.
4. Ask your agent to pull the listing history on the house. It includes how many times the home has been listed and what the price reductions have been.
5. Let the seller talk! If the seller is home at the showing, let them talk. Often they’ll say more than they should like, “We close on our new home next month.