Buyer forecast for 2008

You are entering a great window that will last at least 18 months. Take advantage of it, but with caution.

1) Sit down with an EXPERIENCED Lender who will clearly and openly disclose all fees and costs. Make sure that the rates and terms that they discuss are based on your FULLY documented income, a RECENT credit score and true cash reserves. Get pre-qualified, and check in with your Lender weekly to ensure that the program you want to use is still offered.

2) If you have challenges that prevent you from getting the best rate/term available on the market I would recommend not buying now, but spending some time cleaning up your credit, building cash reserves and building time of employment. The credit crunch is making it more difficult for challenged borrowers to get decent rate/term. As the fed rolls out new programs and the credit markets ease you will have more options. Plus, you do not need to worry about values going up as you repair your credit.

3) Use an experienced LOCAL Realtor. Their commission is paid by the Seller and their services can save you tens of thousands of dollars. Don't use a buddy or family member out of a sense of obligation. This is a huge financial commitment that you are making and you deserve the best representation you can find.

4) Take your time and view as many homes as you feel necessary to find the home best suited to your needs and budget.

5) Look closely at comparable sales and have your Realtor determine if the sales prices of the comps are real or inflated. Also have the realtor do listing/transactional research on the property. Find out if there is a notice of default, a recently recorded certificate of death, or divorce filling. All factors that could influence Seller motivation.

6) Be aggressively low in your initial offer, but not so low that you turn the Seller off.

7) Ask for a minimum 45 day Escrow, if not 60 day. Loans are taking MUCH longer to process and you may need the time.

8) Fully exorcise your Inspection rights and demand that Sellers make all necessary repairs at Sellers expense.

Finally, during the negotiations if you ever get that gut feeling that you are paying too much, or there is something wrong...STOP. Realtors only get paid when deals close, so they may get pushy to get you to sign and commit. If it doesn't feel right..wait. The home most likely isn't going anywhere, and if it does there are another 100 just like it looking for a Buyer.