DON'T GET "PRE-QUALIFIED”!

Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.

In years past, I always recommended that buyers get "pre- qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller.  Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Oftentimes unknown problems surface!

Some of the problems I've seen include recorded judgments, child support payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the client's bank account long enough, etc. So the way to make a strong offer today is to get "pre-approved".

This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

 It is a buyers market in Las Vegas

Gone are the days of 2004/2005, the days of multiple offers and properties that were sold almost before they had been on the market a half a day.  Agents putting will accept offers until Wed. noon and after PM that day you will either have a counter offer or a rejection.  I once called on a house to see if it was still available and was told yes.  Not a half hour later I was on the road to pick up my clients.  My cell phone rings and I was told they had accepted an offer.  To get my clients in a house during this time, I searched at night and found a home I knew they would love.  I called the seller and made arraignments for my clients to see the house at AM and we wrote the offer at AM.  Lucky for me it was accepted.  It was a crazy time and I for one am glad it is over.  Prices were driven up so far that it had almost cut out the middle income people and of course lower income stood not a chance.  I really hate that as I think everyone should be able to have the American Dream if that is what they desire.

So those days are gone for right now and it is a buyers market.  We have a record number of homes on the market both new and resale.  Builders are offering unheard of incentives for buyers and agents a like. Some sellers are lowering their prices as much as 50K and offering bonuses to agents.  Unheard of for a long while.

As a buyer you need to plan your move, find an agent you feel comfortable with and research markets together.  Have your agent do a market analysis on areas you are interested in so that when the time comes you have a good feel on what to offer. You will want to know what the turn over rate is in the area and if it is a good resale area.

At the time of multiple offers buyers were waiving inspections to gain favor with the sellers.    There  are plenty of horror stories out there now because of that.  Make sure you do all your inspections.

Be in your comfort zone, get pre-qualified with thoughts to the future.  Mortgage rates are not as good as they were and they don't look like they are coming back down anytime soon.  So know in advance what you you are comfortable spending on payments, including taxes etc.

When you find that home you want, be patient.  If your first offer is countered, don't get discouraged.  Some sellers have not mentally adjusted to the new market of 2006.  If you really want the house counter back, even if it is the same amount you offered before.  This will let the seller know that it is your bottom line.  If he is serious about selling he may reevaluate his position.  Negotiating is a good thing in this market.

HAPPY HOUSE HUNTING!!!!