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 In working with buyers, I am not bothered if they are poorly informed or unaware of basic information. But what shocks me, is how much they THINK they know. It is usually because someone told them once about their mom's best friends, sister, who bought a house 45 years ago and had this weird thing happen. there is always a lot of details and most of the info either doesn't happen anymore or is just wrong. I'm not calling anyone a liar, but stories and details change over time. Getting over bad beliefs because of a one-time story they heard, is one of the hardest things realtors deal with. As a buyer, regardless of what it is, it is your responsibility to research and know the truth behind what you are doing. If you don't, then you are setting yourself up for a bad situation, loss of your hard-earned money, or worse, even a lawsuit. So please do your homework. Our market in North Texas, all over Texas actually, has been a sellers' market for several years. The market will shift and there are signs of it now, but no one knows for sure when it will shift or what the catalyst will be that makes the shift. Sometimes it may happen over time, others, it is an event that changes everything. However, with current inflation, interest rates rising, and other factors, we will probably see it soon. So here are a few things I wanted to go over if you are in the market to buy right now.  Interest rates are rising, that is a fact. Unfortunately that means you cannot buy as much house as you could a few months ago. I recently had a situation with someone who was pre-approved last fall for one price, but because of rates, they are now looking at lower priced home. So before you look, get with a lender and get pre-approved. You may waste a lot of time looking at homes in the wrong price range if you don't and I promise it will save you headaches later on.  Save - Save - Save, and if you think you have saved enough, save some more. There is really no such thing as getting in a home with cash out of pocket, at least not that I have seen. Usually, when a buyer doesn't have to make a down payment it is because the seller is being asked to pay it for them on an FHA loan. In a sellers' market, they aren't real keen on paying for someone to buy their home. Keep in mind, it is already costing them a good chunk of change with realtor fees and closing costs. Sellers 'concessions,' or money paid by the sellers for buyers closing costs or down payments, are not very welcome in this market. Many agents who represent sellers are not even marketing homes for FHA loans for that very reason. If you don't have the money for down payment and closing costs, you are probably not going to be able to buy a home right now. Also, you will have to have some cash on hand to pay the earnest money and inspection fees. Sometimes other costs may arise as well. There are some programs that help with down payment assistance, but you will just have to check with lenders and see. Those programs also have pretty tough standards, so they aren't very common. The normal down payment can be 3%, 5%, 10% or even 20%, depending on your credit, what you have available, etc. So back to the topic, SAVE- SAVE-SAVE.  You may not want to pay full price for a property. You may have even been told all your life never to pay full price, but if you want that house, chances are, you will be paying full price, if not above. Sellers with houses that are a bit distressed, out of date, or have been on the market a while, are a little more open to negotiating. The other problem with distressed properties though, is that your lender may not approve of the purchase. The lender not only approves you to purchase, they have to evaluate the house and condition, to ensure they want to lend on that home. It is a risk for them as well as you. However, if the house is in great condition, new on the market and priced well, more than likely the seller will not be willing to negotiate. Especially if you are in a situation with multiple buyers. In metropolitan areas, there are usually many offers within just a few days after a property comes on the market and anything less than full price is quickly set aside. All offers will be presented to the sellers to make their decision, but a low-ball offer, meant to start a negotiation is ignored. Your realtor has played this game, listen to them and take their advice. That is their job. If you are really into negotiating, just wait, you will get your chance when the market shifts.  A very famous, wealthy, and accomplished leader often says "I don't have to know everything, I just have to know who to ask." You don't have to know everything about buying a house, but you should know some things before you start the journey. So do your research. To make my life easier, I put together both a video and a document that outlines the process of buying a home or land. When people contact me to look at property to purchase, one of the first things I do is to send them those resources, encouraging them to look at them. Obviously, many don't take the time, however as time goes on, I have found they have referred to these resources. Even seasoned buyers can't remember the entire process and are surprised they have forgotten certain pieces of vital info crucial to the process. Please reach out to lenders, realtors, bankers, or other professionals when you have questions. It can save you a lot of time, energy and possible disappointment. And remember, I would be happy to be your trusted real estate advisor whether you are just looking, thinking about buying, or actually ready to make that big purchase. I can walk you through the process and hopefully take some of the stress out of the process. CONNECTING YOU WITH MARKETS ALL OVER THE AREA!
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