Tips for Home buyers and Home Sellers

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I found this good references for anybody who want to buy or want to sell their properties.

Year 2009 is the beginning of a rough year ahead. More people facing financial difficulties will opt to sell off/ release some of their assets and properties, while buyers are actually getting lower mortgage rates in properties. However, tighter credit standard and loans do pose as a set back for most buyers. Thus, here are some useful tips for buyers.

1. Spare more Cash. During these hard times, ready cash is always better than liquid investments and other low-rate mortgages. Those with ready cash during the recession will always be better off than those who don't.

2. More freebies. With the recession, house-sellers, as well as developers are offering a wide range of incentives for buyers; but nothing beats incentives in monetary forms: FREE legal fees, low/NO interest rates.

3. Start Saving Up. Save up for your purchase, at least for 20%. It will be a great help in the future, with lower house payments and higher equity.

4. Determine your Budget. Before you look for borrowers, calculate and sum up how much you can afford. Be realistic and include extra for unforeseen negative circumstances. Finally check out a few lenders before getting the most suitable package.

5. Clear your Credit Debts. If you have any outstanding credits (utility bills, credit card bills, loans etc), it is better to clear them off first. Otherwise, it will drag down your finances in the future, along with your house mortgage.

6. Research. Do your own research before buying. Listen to what your agent tells you, while you do your own research through newspaper or online: housing inventory backlogs, the average for-sale time and average selling prices. Also, be wary of the number of area foreclosures and major-employer layoffs. Then, only you negotiate and decide.

7. Check out Neighborhood. Quality of schools, traffic noise, upcoming zoning issues, neighborhood stability, home turnover, crime levels; these are the important issues too look at before buying and moving in. A trustworthy, experienced agent will be a good help here.

8. Look for Other Opportunities. If you can’t get any loans or any sales now, just wait for a while. Situations should improve later in mid-2009. Loans may loosen, though don’t expect everything to come back to normal in just a short while.