The Warren Group which tracks Bay State home sales activity reported that although single family home sales and prices continued to drop, the month of June 2009 showed the smallest drop since one year ago--only 5% drop from June 2008.
The Massachusetts Association of Realtors also found some good news in the most recent data. The association reported that the median home price for single-family homes in June was above $300,000 for the first time since August 2008 and that home sales were up 39 percent from May - the second largest May-to-June increase since 1996.
All of this encouraging data brings me to the very timely topic of how to actually buy a home, especially since many buyers are trying to take advantage of the government homebuyer tax credit and its upcoming deadlines. I should clarify this by explaining that many buyers could save time and stress by following this effective method to purchasing a home.
- Phone several buyer agents to find one that is the best fit. This person should have buyer agency experience and thorough knowledge of the market area.
- Be patient and sit for an hour consulation with the buyer agent to allow them to get to know your wants & needs in a home. This time will also be the start of your "buyer education".
- Obtain a pre-approval letter through a recommended lender.
- The agent will set up your automated search account through the Multiple Listing Service to allow you to view properties that match your criteria online.
- Remember that the agent is working for you and will be constantly networking with other agents and trying to learn of an ideal home that may suit you.
- View homes based on both price and location. If a neighborhood is important, stick with only neighborhood homes for the first time out.
- View only 4-5 homes for this first look so you are not overwhelmed. It is helpful to evaluate the thoughts on those first homes the next day with your agent. You will both be more prepared for next time after having a frank, thoughtful discussion.
- You will quickly become aware of what certain price ranges can offer for the money and be ready to make an offer on an ideal home.
- Your agent will evaluate the recent sales to help formulate the appropriate offering price.
- The agent helps write your offer based on your offering price, desired closing date and other terms accompanied by your initial deposit of $500 or $1000. If the offer is accepted, the process moves forward.
- The buyer can elect to have a home, pest and other inspections during the first week after the accepted offer. Some serious issues may come up from the inspection that may need to be negotiated or repaired.
- Within 10 days to 2 weeks from accepted offer, the Purchase & Sale Agreement is signed by both parties. The buyer will put down their second deposit amount of usually 5% of the purchase price at this time.
- The bank will be handling all the behind the scenes financial documents at this time as they prepare for the closing day.
- You will contact your insurance company to request homeowners' insurance, transfer utilities and arrange for a moving company.
- Closing day will allow you a final walk-thru of the home. You will attend the closing with your license, sign all the paperwork and receive the keys to your new home!
If you have questions about this process, give me a call at 508-369-5131.