Home Sellers and Buyers: Tips for Both

According to published reports, existing home sales plunged more than 12 percent in 2007. To make matters even worse, the outlook and performance of the housing market in 2008 continues to be just as – if not even more – bleak. The effects of the collapse in real estate have been well documented, and while there is no shortage of 'expert' opinions, there's been no consensus to emerge that we're nearing the end of the downturn. So, the likelihood is that things will continue to look rather dismal for at least the foreseeable future. If you've decided to sell your home, this cannot be news that's particularly welcome to your ears. If your circumstances allow, you may wish to wait until such time as the economy improves and home sales begin to rise before putting that "For Sale" sign in the front yard. But regardless of whether you need to sell immediately or not, here are five basic tips that will help to make selling your home easier – if not now, then in the near future:

• Whether you sell your home privately or through a licensed real estate agent, careful consideration should be given to the asking price. Check recent home sales in your neighborhood and city to ascertain the medium selling price.
• While you certainly want to present your home in the best possible light to potential buyers, it's not recommended that you spend too much money on major renovations before selling. Whatever improvements you do make, incorporate the expenses into your selling price.
• Before you put your home on the market, ensure that it's free of clutter. (This suggestion might seem like common sense, but you'd be surprised.) Clean your home thoroughly and get rid of any unwanted items, either by donating them to charity or having a garage sale. Check the outside of the house to determine if there are any cracks in the foundation or shingles that have become loose. Also check the plumbing to ensure that there aren't any leaks, and make certain that all electrical outlets are working properly. Structural and operational details such as this can be handled by a certified home inspection, which is recommended before selling your home, anyway.
• Organize your home; and if you have a garage, do the same for it. Potential buyers tend to check closet space, bathrooms, windows and fixtures. You can prepare your home by adding a new coat of paint, as well as inspecting every area to ensure that it's as clean and presentable as you can make it.
• You may wish to have a realtor come to your home after you've cleaned it up and ask if there are any improvements he or she might recommend that would make the home more appealing to buyers. Realtors are professionals. Let their knowledge and experience work for you – even if you don't actually hire them to sell the property for you. They can also help you to properly price your home.

As stated earlier, you may wish to wait (if at all possible) until the housing market becomes more conducive to selling. Furthermore, it's not advised that you purchase a new home before you've sold your existing one. In these difficult economic times, it may be better to wait out the storm. However, if you can't (or you simply don't want to), read on; because depending upon your perspective, the news isn't all bad. With so many homes in foreclosure (and more heading there every day), there are those who assert that this has become a fantastic buyer's market. But before taking that leap, here are five basic tips to help you buy:

• Research as much as you can about the ins and outs of buying a home. There's a great deal of information available both online and by talking to family members or friends who've recently gone through the process. Pick the brain of a good realtor, too. The more you know, the better equipped you'll be to handle the process.
• Because of the current housing crisis, it's important that you obtain financial pre-approval for buying a home. In fact, speaking to a bank or other qualified lender should be one of the first steps you take in the home-buying process. Knowing how much you can afford based on your income and credit history will determine just 'how much' house you can buy, and save you lots of time.
• Once you've been pre-approved, you can begin the actual 'house-hunting' phase of the process. The services of a licensed realtor can be invaluable here, because he or she will have access to listings based on your pre-approved mortgage amount. Have your approval letter in hand when you talk to the realtor; this will cause them to take you even more seriously by letting them know that you're a "ready buyer" and you mean business.
• After you've found the home of your dreams, it's time to think carefully about your offer. Since you already have the pre-approval amount, you'll have a pretty good idea as to just how much you're willing to pay. Your realtor (if you've hired a buyer's agent) will negotiate for you and explain the process step-by-step. However, be prepared in case your offer is met with a counter-offer from the seller. Again, careful consideration is required before making any decision.
• Once a price is agreed upon by both you and the seller, the transaction will eventually go to closing. Your realtor will help to get you to and through this process, as well. Additionally, you'll need to ensure that the home has inspected before you close. This is necessary to prevent any unknown problems surfacing later on, which may be costly. The seller may have already taken care of this step; if not, it's a good idea to make the sale contingent upon a satisfactory inspection at the seller's expense.

Buying a home today takes a great deal of research. It can sometimes be frustrating and exacerbating, and a seller may have unreasonable ideas about what his or her property is actually worth, making an agreement impossible. Nevertheless, if you take the time to learn about buying a home and use the tools and resources available to you, it can make the process much, much easier.