How to Buy Your First Home in Today's Market

The heat has definitely been taken off the reallawyer. If you needed brain surgery you wouldn't
market these days. Prices are down from theirwant a knee surgeon to perform it, would you?
lofty heights of a couple of years ago, mortgageA good buyer's agent with your best interests in
rates are at record lows and there are moremind will not discourage you from your lawyers
homes and condominiums to choose from. If youinput and advice on any offer before it is
are thinking of plunging into the real estatepresented to a seller.
market here are some time tested rules that will5. Power of Sale and Foreclosure Properties
ensure you a frustration free experience.Often real estate agents will offer to send
1. Hire a Buyers Agent to Represent Youprospective buyers a list of power of sale
Whether you are a new first time home buyer orproperties on the market. The implication seems
a seasoned homeowner, sooner or later you willto be that a pot of gold awaits buyers of these
need the services of a good real estate agent toproperties. This is far from the truth. Power of
act on your behalf. A buyer's agent owes youSale properties have been taken over by the
fiduciary duty and must legally work in your bestmortgage holder when the registered owner has
interests.defaulted on the loan. They are usually vacant and
2. Get Pre-Approved For a Mortgagetherefore subject to faster deterioration and
This is a relatively easy process that your buyer'svandalism than an occupied home. This is not to
agent can help you with. There is no obligation andsay that bargains cannot be found in these types
won't cost you anything. It will however let youof properties but caution is advised. Care in the
know how much you can spend on a new homepreparation of an offer on power of sale
and will usually protect you from any increase inproperties is also required so as not to expose
rates for a period of time. It will also allow you toyou to any unforeseen additional costs.
forgo a financing condition in an offer, making it6. Keep Your Emotions under Control
more attractive to a seller. If you are a high ratioWhen you do walk into the home that you
borrower you will still need a financing conditionabsolutely fall in love with, do keep your emotions
clause even with pre-approval.under control. Any signals of enthusiasm or
3. Know the Costs of Buying Before Closing Dayexcitement shown to the seller or the seller's
Before you sign on the dotted line you need toagent will be used to your disadvantage.
know there are costs to buying a home. Legal7. Home Inspection
fees, Land Transfer Taxes, LawyersSometimes you are in a competing situation for a
disbursements, Title Insurance, Home Insuranceproperty and you will be under pressure to forgo
are some of the costs you will need to havea home inspection. In this emotionally charged
available on the day of closing. Be sure to haveatmosphere you may be tempted to do so. Do
your buyer's agent explain these to you so thatnot let anyone talk you out of performing a home
you can budget for them on closing day.inspection by a qualified home inspector. You may
4. Select a Real Estate Lawyer Before You Buywish to instruct your buyer's agent upon hiring
If you do not already have a real estate lawyerthem to remind you of the dangers of this if and
ask your buyers agent for some names.when the situation arises.
Alternatively you can ask a relative or friend for aAlong with a regular home inspection you may
recommendation. When you speak with them bewant to consider doing a Thermal Imaging
sure to ask if they specialize in real estate law.inspection. It does cost more but it will reveal
There are many types of lawyers practicing inhidden problems and potentially hazardous issues
different areas of the law, criminal, family law andthat a visual surface inspection fails to uncover.
corporate to name a few. You need a real estate