Must-Have Strategies for Buyers and Sellers in a Heating Real Estate Market

Nov. 29, 2012 - PRLog -- SAN LUIS OBISPO, CA – As the real estate market continues to recover, boasting an increase in sales, increase in the construction of new homes, and record low loan rates, there are strategies that every buyer and seller should consider. Dawna Davies, owner and broker of Davies Company Real Estate, has developed these tips for buyers and sellers considering a transaction in the near future as well as individuals with no current plans to enter the market.

“Over the years I have worked with lots of clients in different planning stages. I have helped people transition out of past decisions they regret, to a better situation. With a little planning ahead buyers and sellers can save time and money as well as increase their options,” said Davies.

Tip 1: When looking at properties, think like the future seller not the current buyer. This will help a buyer anticipate items that need to be resolved before purchasing.

Tip 2: Look at properties with the most conventional floor plans in the decided price range. Should a person decide to make a change for any reason, these homes will likely rent and sell the fastest.

Tip 3: Consider the walk-ability of the property location. This is becoming more important with an increase in one-car families and environmental concerns. In general, walk-ability adds an element of convenience and more value to prospective future buyers.    

Tip 4: Talk to a lender before viewing properties and have them calculate the maximum loan and payment amounts. Only then, determine the actual amount you are willing to pay per month in loan and housing costs. This will often be a lower amount than approved by the lender.

Tip 5: Determine the loan program(s) available and the specific criteria that the lender will require to approve the loan. If it is a USDA loan, VA loan, or other government-backed loan, especially one with low-to-no down payment, the lenders may have strict criteria about the condition of the property to be purchased.

Tip 6: Plan ahead when selling or purchasing a property. Look at a calendar and consider realistic timing given your personal circumstances. At that point the real estate season and market can be taken into consideration.

Tip 7: As a seller, wait until a few days before the property goes on the market to determine the asking price as the market is always changing. If you determine the price too soon, you could miss out on an uptick in the market value.

Tip 8: Keep paperwork from home purchases and sales, including loan information, expenses, and property improvements. Future purchases may require this documentation. This is especially important in the case of a short sale or foreclosure.

Tip 9: Always keep in mind that the property you currently live in may not be the last property you will ever own or live in. It might be a stair-step to the next one.

Tip 10: No property is perfect and investing in real estate ultimately requires a leap of faith. Work with your agent to ensure that you are making the most informed, strategic and calculated leap.