Buyer's Rejoice or Buyer's Remorse?

The real estate market has had a great run and now evidence is mounting that the party may well be over for residential properties in many areas of the country. With a growing inventory of both resale homes and new construction along with a clear slowdown in houses being purchased, what is the prospective buyer to do? Is the market in a traditional seasonal pause to be followed by an upward spiraling of prices? Is the market on the cusp of a deluge of homes coming on the market from investors, speculators and realtors getting increasingly nervous that they may be missing the window of opportunity to offload properties? With a typical lag of 30 to 90 days between a house going under contract and the closing, how does the buyer determine what is really happening with prices? Even after the closing, it may be 30 or more days before the actual selling price is recorded in the public record. If the house has been listed under MLS (Multiple Listing Service) the selling price is generally available to any realtor being a member of the MLS system where the house was sold. If the property was not listed in MLS then the actual selling price will not be available until recorded by the public entity responsible. Buyers with timing flexibility and who are working with a seasoned real estate professional are in the best position to be well informed on market conditions and local trends. However regardless of timing flexibility, here are 8 questions you should be asking your realtor! 1. What are pricing trends in percentage terms and actual increases/decreases in the general market area you are looking in and the purchase price range you are considering? 2. What is the inventory of homes currently within your market interests and how has it changed in the last 90 days? 3. What are the buyer incentives being offered by the builder (if new construction) or seller? 4. What are the realtor incentives being offered by the builder (if new construction) or the seller? 5. Is the property you are considering owner occupied and/or investor/realtor owned? 6. What is the listing history (if listed on MLS) of the property including changes in terms, price and broker? 7. For re-sales, what was the original purchase date and price paid by the seller? 8. For re-sales or new construction, what has the pricing trend been over the past 24 months for homes within the areas being considered? Being well informed can make a huge difference when preparing an offer to purchase a property.