Buying a home in the second quarter of 2013 takes patience, being realistic, and a combination of decisiveness and quick response.
1. Patience . . . Yes, as the saying goes . . . “patience is a virtue!” In the current climate with low inventory, high demand, and competition among cash buyers (investors), as well as the rest of the buying population–most of which actually want to buy a home to live in. Be patient if you make several offers and none are accepted. The right property will present itself. Be confident and know that with proper preparation–being pre-approved for your financing, maintaining good credit, and staying focused on the goal–it will eventually pay off.
2. Being Realistic . . . know that most transactions, especially short-sales can take several months sometimes. This is especially true where more than one mortgage (lien holder) exists on the property. Perfect world = single lien holder who approves short-sale. Real world = many times two lien holders exist. Thus, you have to wait on first mortgage holder AND second mortgage holder. They must both agree. Actually have a transaction going now that the offer was written 7-months ago. For my clients sake, hope the second lien holder and first lien holder agree soon.
3. Decisiveness and Quick Response – Be prepared that a property will come on the market and due to low inventory, many people will be vying for the same property. Respond quickly. Set appointment with your agent to view property and be ready to make an offer. Make sure you have the funds liquid for deposit, appraisal, and home inspection. Deposit amount depends on sales price but usually no more than 3% of sales price.
Good luck and keep fighting the good fight. Your offer will get accepted AND you will find the home you are looking for.