First, congratulation on your decision to buy today! You get a right time to find a great deal on your new home. Buyer's market means more inventory to chose from. You have a better chance today to pick up the house of your dream within your price range.

Second, the Sellers may be more cooperative today. Sometimes it means a better price for the buyers. Sometimes it is a better condition of the house. The chance to bargain the home is much higher than ever.

Third, if you need to sell before buying you may apparently find yourself in the same unfortunate situation as many sellers are. We know how many sellers literally lose money selling their houses. However, the possibility to bargain on your new home is very high. You still have a very good chance to win buying and selling on today's market.

Fourth, the crisis in a mortgage industry created a situation when many people lost a chance to obtain financing for their home purchase. It means that financially strong buyers have fewer competitors than ever. So, check out your credit score, analyze which areas may be easily improved, improve them, get approved by the reliable lender, and make an offer to buy your new home. Buyers have more time to compare the houses and prices, better chance to avoid stressful multiple offer situation and make an intelligent, well-weighed decision.

What are advantages and disadvantages of buying a foreclosed house in comparison with buying a private owner's property?

First and main advantage and reason for buying a foreclosed property should be the price. Please do not assume that all bank owned or HUD owned properties automatically have a better price than the houses offered for sale by private owners and their agents. You and your agent need to do a very thorough and specific market analysis in order to decide will the price outweigh the risks related to purchase of foreclosed property. Please keep in mind that we may and should negotiate the price with the banks today! Banks do not take it personally.

First and main disadvantage of buying a bank owned property is a higher risk.

	Private owner’s home	Foreclosed home
Residential Property Disclosure	In most cases mandatory for sellers to disclose all known defects and major repairs made on the property. Seller may be liable for non-disclosure	No disclosures. No liability. “As Is” sale
Home Inspections	You may address the inspection findings to the sellers and get some problems fixed prior to closing. You may get some credit towards fixing the problems from seller at closing.	Most of foreclosed properties have no electricity, gas or water during the showings and inspections. Limited possibility to inspect a house properly. You may address the inspection findings to the seller. However, in most cases Bank’s contracts or addendums clearly state that no repairs will be done. “As Is” sale.
Risk of hidden plumbing problems	Lower if the property is occupied. Higher in vacant houses with utilities disconnected. Better chance to get correct information about time when utilities were disconnected and house was winterized.	Very high. All properties are vacant. Most of them have no utilities connected.The buyer can hire a licensed plumber to pressure test the lines with air to determine the condition of the plumbing.
Need to repair before moving in.	Sometimes	All the times
Possibility to use as a primary residence and secure mortgage	Very high in many cases.	May be lower. Some properties may not be appraised as a primary residence due to condition. Investment property usually get financing with a higher interest rate in comparison with primary residence.

Should we buy or should we wait until housing prices will drop down even more than today?

There are three major things to consider when answering this tough question. First, buying the house is much more than making a pure financial investment. People normally buy when they have important personal issues in their lives. Homeless people almost never buy the houses. People rarely buy the houses when they have no place to live. They usually rent in this case. So, the main questions will be "Why we really want to buy a house and are we ready for this move." Normally when people are ready they do not wait for a better pricing on a whole market. They hire professionals, choose the right house, analyze current market conditions and trends, and negotiate the best price and the best terms for their homes.

Second, Real Estate market is strictly local. Your neighborhood market condition may be very different from national statistics. Your local market does not necessarily follow the average national trends. You can watch this even within one city or school district. One community pricing may be growing while another one just the next door may be stable or even declining. That's why it is so important to seek assistance from local Real estate professionals, from experts who know local market in details. You can also do your analysis yourself. Just join our Local-n-Global Market Watchers Club and receive your monthly reports with very specific information on your favorite neighborhood's pricing, market trends and current mortgage programs and rates. Our experts will share professional opinions with you and will value you your opinion on specific local issues.

Third, people usually obtain financing in order to buy Real Estate. No need to say, how interest rate may influence your ability to afford the house you like. Higher the rate, lower is the price you can afford to pay for the home, and visa versa. Unfortunately, sometimes apparent affordability of the higher priced homes due to lower mortgage rates brings people a wrong idea of a monthly payment being more important than the price of the home. Financially, the price you are ready to pay for the house is defined not only by the size of down payment, or by loan amount which bank allows you to borrow. It defined by current market prices, current interest rates, property taxes, cost of improvements needed to be done, cost of utilities and maintenance. It is not the market, or bank, or seller, or Real Estate agents who make a decision how much should you pay for the house. It is your life, your money, your happiness, and your responsibility. Be reasonable, buy whenever you feel good about it, and be happy in your new home! Local-n-Global Real Estate consultants are here to help you in every step to your dream home. Good luck!

Do I really need an agent on Buyer's market?

Yes, you do need an agent on any market! The role of Real Estate professional is much more complicated than just finding and showing the properties for you, or juggling the paperwork during the transaction.

Information, Convenience, Negotiation, Coordination, Support. Your Real Estate agent will arrange few houses to see at the same day. It saves you time and helps you to compare different homes. In most cases your agent will use special key to get an access to the houses, so you may avoid the necessity to meet with the owners. You may take your time, see all the details of the house and make your comments without taking risk to be heard by owners.

Your trusted Real Estate agent will support you during the whole way from first showings to closing, and even beyond this point. It's both professional and emotional support, and you as a buyer really need it!

Should I pay for buyer's representation?

In most cases the answer is No, not directly. Though you hire an agent as your representative, in most cases the commission reward is included into the price and paid by the seller, no matter how many agents are involved in the transaction. In other words, even if you chose to go unrepresented, the sellers will pay their agents both sides' commission anyway.

In some cases you may chose to pay your agent's company directly, for example, if you chose to buy a house from unrepresented seller who did not have a contract with any agency to pay the commission. In some cases you may hire the agent to make a competitive market analysis for you or help you coordinate the transaction if you buy, let's say, from your relative or close friend who do not offer reward to Real Estate professional. In any cases it is good to have a strong, knowledgeable, dedicated professional on your side. Good luck!