The Perfect Market:

I know everyone knows about the perfect storm, which is a series of simultaneous events which, taken individually, would be far less powerful than the result of their chance combination. As a professional in the real estate industry, I'm calling all buyers and letting them know that this is the perfect market.

There's been a substantial amount of bad press for the real estate industry in the news, online and just about any place where a soapbox could be positioned. I'm not down playing the current state of affairs. There are plenty of people who are victims of predatory lending practices from well known lenders like Countywide and there are plenty of people who should have known better i.e. if you couldn't afford the home traditionally, why did you buy it in the first place type of people? It's not a perfect market for those people (excuse the sarcasm), but if you've been on the fences about buying, you have a decent down payment (3-20%) and good credit, what are you waiting for? The next 30 days are as good as any to buy and to buy with confidence.

Let's examine why the current that of affairs makes it good time to buy.

1. Mortgage companies still need to lend people money to make money. Mortgage brokers are so desperate to write "good" loans, they will literally fight for your business. Have you heard of Bank of America's no closing costs program or lender paid Private Mortgage Insurance (PMI)? Well, different brokers are offering different things and they are for a limited time only. Get a copy of your credit score and report and shop with confidence.

2. Other providers of home services for buyers during the buying process i.e. attorneys, the home inspection company, title and so forth are more likely now to offer discounts, which equates to savings for you. All you have to do is ask for it.

Example:

"Mr. Attorney, I know my cousin used you in the past to close on his house. He had a lot of great things to say about you. I have an attorney who will do it for a discounted price. What's your fee?" (This is assuming you can get the attorney to actually talk to you personally on the phone). No matter what the attorney says, ask for a discount. "The other attorney offer ____; but I want to use you can you match it" Hopefully you get the drift. Attorneys were also spoiled by the inflated market of 2003-2005. Some attorneys rely on their real estate closing to pay for their utility bill? It might feel a bit sleazy at first, but so what? You'll never know how much you can save if you don't ask.

3. Prices of homes have changed and even though this upsets many sellers, they still have to move on with their lives and the only person who will help them accomplish this is you, the buyer. Also, sellers are more willing to negotiate now more than ever before. But keep in mind that some homes are priced to sell and there may not be any move to negotiate. When a deal makes sense, more than one buyer will be interested in the same home. Try to beat that other buyer by offering list price or as close to list price as you can. I know what you're thinking. In the spring, the prices of homes will have dropped even further. Wrong! That's what everyone thinks. If you wait too long, you'll have to compete with someone else who has the same mentality as you. More than one person competing for the same house increases the prices again, taking food off your table.

4. Realtors are also motivated. If you can close by the end of the year, it's a good thing for realtors. Realtors are often judge by the dollar volume of their sales or the number of closed transaction. They compete for recognition within their company/region and besides, the longer the house stays on the market, the more money they spend in advertising and working. Realtors are always looking to move on to the next deal. They can only get pid if they close.

If mortgage brokers, sellers and their realtors are motivated, that to me is the perfect market. If just have to ask yourself, how motivated are you?