01.  Tips for buying a home in today's market
02.  Buying Foreclosed Properties & Selling your home
03.  Tips for selling your home by owner & Questions to ask when    interviewing a real estate agent.

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In 2006 home prices in the United States greatly decreased. The worldwide question was why? It started due to the fact that the FED lowered interest rates, which in turn made it affordable for numerous unqualified Americans to purchase real estate. The housing market peaked and then the scenario of supply and demand came into play. In the beginning there were more prospective home buyers than homes, which increased the value. However, once all the people who wanted to buy had done so, a surplus of homes was available with no potential buyers.

The first initial home defaults were those who were purchased at the end of 2005. Home buyers at that time were offered very low interest rates on their mortgages. When these low interest rates reset to higher rates, it made it nearly impossible for homeowners to afford their payments. Considering these homeowners bought when home prices were at their peak, selling the home with a profit was not likely at that time.

Many Americans are distraught about our economy and housing market. It is frustrating if you are trying to sell or buy a home right now. Experts are undecided about the future real estate market.

Let's take a step back. History always repeats itself. A great deal of people may not remember the housing crisis in the1980's. Between 1978 and 1981 home sales dropped by 50%. Mortgage interest rates hit an all time high of 18%. It took quite a few years for the market to rebound enough for the average American to afford to purchase a home.

Our current economic situation is not the most ideal at the moment, however the U.S Government has plans in place to help stimulate the housing market. Keep in mind the housing market did not collapse overnight, therefore will take some time to fix.

So, with home prices plummeting, is it a good time to buy a home? The answer is more complex than you think. For many years it was difficult to purchase a home due to the sky rocketing prices. Now that home values are sliding down and interest rates are relatively low it is a goal that is attainable for many prospective home buyers. On the other hand, it is much more difficult to obtain lending right now. Prior to even applying for a mortgage be sure you have a secure job, a hefty down payment and good credit.

Lenders made the costly mistake years ago of approving people for mortgages that were not qualified. Since the companies lost billions of dollars and needed government help they are being extremely cautious right now. To put it simply, it is very difficult to obtain any funding from financial institutions considering their financial obligations.

Tips for buying a home in today's market

1. Get approved for financing first: The days of 100% financing are over. Lenders want larger down payments and typically mortgage payments should only be 30% of your gross income. Keep in mind that you will need to have cash for closing costs and moving. Closing costs generally are between 2% and 3% of the sale price depending on the state you live.

2. Be an informed buyer: It is true now more than ever that it is a buyer's market. You, as a buyer, have more control than the seller. Sellers are very willing to negotiate on most things including incentives, pricing, and closing costs. Be sure to find a home that is your "dream home" and good for resale. Location is everything when purchasing a home. Check out the school districts, crime statistics and other public works that could increase or decrease the value of your future investment.

3. Be ready to negotiate: Never assume the seller is asking what they expect to get. In today's market homes are often priced a lot higher than what the seller will accept. Utilize local resources to obtain comparable sale prices, also known as "comps", which will assist you in making the best offer.

4. Think long term: Buy a home that you can grow in. With the general economy one of the best decisions you can make is to purchase an ideal home in which you can afford. Real estate experts are advising any home should be a long- term investment. Expect to keep your new home for at least 7 years. At that point you will be able to obtain a greater profit.

Buying Foreclosed Properties & Selling your home

You will want to start by finding out what homes are going into foreclosure. You can obtain this information through your real estate agent, online search engines or your county's public records. The home listings will vary daily so be vigilant about tracking them.

Become aware of the laws in your state to purchase a foreclosure. It may benefit you to hire a real estate attorney or agent who is familiar with the process. The everyday buyer is not usually aware of certain disclosure paperwork that you should request to cover yourself.

Perform a title check on properties that you are interested in. This will let you become aware of any liens or other problems you may encounter should you decide to pursue the property.

Drive by any homes you are interested in to assess their value. Homes with roofing, mold and other noticeable problems may not be worth your purchase.

Homes that are on the verge of going into foreclosure are often times your best options. The struggling owners are most likely going to be willing to strike a deal for less than the home is worth. Be cautious though that the homeowners are forthcoming about any major repairs or damages to the home. It is imperative to hire an inspection company. It will cost a couple hundreds dollars, but will help you avoid costly expenses after you move in. This information will prove to be priceless.

Investigate the properties at auction if you choose not to negotiate with the homeowners. Auctions oftentimes move at a fast pace and you want to know exactly what you can afford. Bear in mind that homes sold at auctions are "as-is". Bidding extraordinary amounts could dig you into a financial hardship in the future.

Have an expert, such as a lawyer; examine the paperwork prior to signing it. All documentation that pertains to the closing should be photocopied and filed with the county and all parties involved.

Selling your home

When you decide to sell your home you have many choices to make. Where do you start? Should you sell by owner, or use a realtor? These decisions will be based on your personal situation.

If you choose to go through a real estate company be sure to do some research on the agent and company. Choosing the perfect agent will be the key to a successful sale.

Tips for selling your home by owner & Questions to ask when interviewing a real estate agent.

Tips for selling your home by owner

Pricing: Choosing a sale price for your home will be the most difficult decision you will make throughout the process of selling. Since you have chosen to sell with out professional guidance you will want to do some research. Find out what has sold around you and price accordingly. You do not want to give away the home, yet at the same time if you over price it will be extremely hard to find a buyer.

Once you pick a price that is suitable for you add 3% to that. You are now in a position to enlist local realtors. This is referred to as "courtesy to realtors". "Courtesy to realtors" means that you are not locked into a contract, however if they bring you a buyer you will pay a 3% commission. Chances are a realtor will bring by many potential buyers, as this is their profession. It gives you the benefit of selling on your own, yet also utilizing the skills of a realtor. It can make the process of selling your home happen very quickly.

Market your home: Get your camera out and start taking pictures of your home for a flier. List the benefits of your home using adjectives that will draw a prospective buyer's attention. You want the buyer intrigued enough to contact you to see the home. It has been proven that color brochures are more effective than black and white. Now, you will need to purchase a "for sale by owner" sign, as well as an info tube. These can be found at your local hardware store.

First impression last: Think for a moment when you drive by a home. What is the first thing that you look at? Your answer most likely is the front yard and entrance. Plant some flowers, powers wash the driveway and sweep away any leaves that block the door. Remember don't be penny wise and dollar foolish. Even though it may cost you a few dollars to spruce up your entryway, it could mean enticing that one buyer into your home.

Have Open Houses: Invite people into your home to view it consistently. It will give you a chance to meet prospective new buyers, as well as let the neighborhood know you are selling. Neighbors are one of your best resources. Having open houses will make your neighbors more likely to let their friends, family and colleagues know of the house available.

Important Questions to ask when interviewing a real estate agent

How much experience does the agent and company has?

How long has the agent sold houses in the area?

How many houses did that agent sell in the past year?

Get a commission breakdown.

How will the agent and company advertise the home?

Ask for references of other homeowners who have used their services.