5 Tips for Buying a Home During a Recession

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louis c of CA 5:54PM April 13, 2009

A realtor friend mentioned that most of his sales on foreclosures these days are to landlord/investor types with money looking to rent the houses out to those that cannot afford to buy a house. They are looking at foreclosures in good neighborhoods "cheap" that they can fix up and rent out for the cash flow.

Jack Em of OH 2:09PM February 03, 2009

Karen you could not have put it any more eloquently. The good realtors focus their efforts to serve their clients at the highest level knowing that the paycheck will take care of itself.

I often turndown buyers, that are not a direct referal from my clients, unless a buyer agreement is signed. Buyers this is the contract that protects you much like the listing agreement protects the seller.

What amazes me is when I meet someone who can curse someone for not using a professional in their chosen profession, but then turn around and think they can navigate the real estate market like a professional. I certainly won't begrudge someone trying to save money, but I will point out mistakes in real estate often are not discovered for a period of time. I spend hours upon hours keeping up to date on the latest information so I can keep my clients informed. Did you know that the highest foreclosure rate is on 3 unit buildings? Most those owners were investors and I imagine more than a few thought they knew what they were doing.

Best advice I can give is simple, professionals get professional results and if your hiring a realtor or any other person when spending the single largest sum of money in your lifetime you might want to interview a few candidates for the position.

Philip of IL 7:08PM February 02, 2009

I must say that a statement like, "Don't listen to real estate agents when you are bidding, they are only thinking of their commissions" does nothing but perpetuate an atmosphere of consumer mistrust of this profession. There are many highly trained, highly ethical, and highly successful real estate professionals (like myself) with many happy buyer clients who have purchased homes at prices they were thrilled with along with the professional guidance through all the inspections and gathering of repair estimates from competent professionals (many of these repairs were paid for by the sellers after we respectfully provided the written estimates and a request for assistance - something my buyer clients didn't even know you could do).

I provide factual information to my clients on the home's condition, current data on local, regional, and national real estate markets, economic and lending climate, and then advise them that, "If they are prepared to walk away, they can offer any price that they wish to offer" which many do - even at the risk of being outbid by another buyer - which has happened - even in this market. I give my clients every fact I can give about the property and the market and then respect their ability to come up with an offer that they are comfortable making. I teach both buyers and sellers that "getting offended" has no place in this business. Each party has a right to ask - at any step in the negotiation - and each party has the right and obligation to speak up and decide where the boundary is.

Buyers and Sellers are adults - When Realtors facilitate by providing factual information and a positive climate, the parties can negotiate an agreement that allows the buyer to buy and the seller to sell. A good Realtor provides the framework for this to happen. If the lengthy process ends in a closing (which 99% of mine do), then the only time I think about the commission is when I walk out the door of the closing with a check in hand for a job well done. Prior to that - my interests are my client's interests.

If you want this type of representation - you will need a legal buyer agreement so that you can become a CLIENT. Some states allow a buyer to be a CUSTOMER - and the definition and legal obligations of the Real Estate professional are different.

Contact a Realtor - through your state's assocation of Realtors for the highest of ethical standards, read their materials, and ask a lot of questions.

It's a great time to buy a home!

Karen of ME 12:56PM January 23, 2009