Advice: buying in today’s home market

(The Money Pros) - We are indeed in a recovery, but no one knows what the future holds.  Even data can be misleading from month to month, and we have to look at the big picture.  If employment improves, we will see housing improve.

Home prices are 30% lower and interest rates are nearly half of what they were 5 years ago, so it is a great time to buy but only if you are comfortable in your source of income.

Buyers and sellers both have to carefully consider their own unique situation, and get advice from professionals they trust, to help ensure long-term financial success.

Homebuyer education is key to long-term, sustainable home ownership. Take advantage of a first-time home buyer class such as those offered by RI Housing or other non profit organizations.

Learn financial literacy skills of budgeting, saving, credit and debt management. Be sure to familiarize yourself with the whole home buying process and the costs associated with it.

Buyers should learn about mortgages and financing to avoid predatory lenders and other pitfalls. Consider getting a buyers agent.  It does not cost you anything, and they offer negotiation skills, market knowledge and the network of referrals.

Selecting a Buyers Agent:

• Find them through referrals from friends, family, or other professionals
• Interview to make sure they are a good fit for you (interview three)
• Check out their web presence

Just try to enjoy the process and learn as much as possible.  Make a list of what is important to you in a house, and educate yourself about the market.

Buyers shoudl go to open houses and check out neighborhoods at different times of the day and night.