Home Buying Archives - Preferred Residential

Home Buyers: Don't Sabotage Your Deal

Buyer beware! We have all heard that phrase so many times that it has become second nature to be wary of someone selling something. It is good advice for sure but home buyers should also beware of ways they can sabotage their purchase of a house. It is easier than one might think as some overzealous home buyers recently reminded us.

Problem: The home being purchased is a rental with tenants in place. That means 24 hour notice is required to gain access to the home. Within a week of the deal being in contract the buyers were making life difficult for the tenants, dropping by unannounced and expecting to be given access to the home without a 24 hour notice on more than one occasion. These unannounced visits quickly turned the tenants and to a lesser extent, the seller, against the buyers.

Buyer beware: When tenants are renting a home 24 hour notice of intent to enter the home is required. There is no getting around it unless the tenants say otherwise. In our experience, tenants are seldom willing to waive the 24 hour notice when the house they are renting is being sold and will require that they move. A wise move for buyers in this situation is to make every effort to work with the tenants. Angry tenants can make a transaction much more difficult than it needs to be.

Problem: There are nice, new flower beds in the back yard that the buyers really liked. The buyers told the tenants that they had to leave those planter boxes in the back yard when they moved out. The contract clearly states that tenants’ personal property is not included in the transaction.

Buyer beware: Before writing an offer, buyers should be sure they understand what belongs to the tenants and what is being sold with the house. The first place to look is on the MLS listing. However, just because it says the refrigerator is included, buyers should not assume the sellers won’t change their minds. Buyers should clearly state in their offer what personal property they do or do not want included in the purchase.

Problem: The buyers began advertising the home for rent before the deal had closed. This created more tension between all parties and the tenants because suddenly people interested in renting the house were stopping by and asking to see the inside.

Buyer beware: If you don’t own the house, meaning you and the seller have not signed the closing documents at the title company, don’t advertise it for rent. The rental market in Bend is on fire right now and there is no reason to press your luck with the seller and the legal system by advertising a house you don’t own. The sellers and their tenants are not obligated to allow you to show the home to prospective tenants before closing and in most cases they will not allow it. Prospective tenants will likely think you are trying to con them and will move on to other rentals.

Problem: The buyers appear to have misrepresented their borrowing qualifications to the seller. The lender pre-qualification letter submitted with the buyers’ offer clearly stated that they intend to occupy the home as their primary residence and put 5% of the purchase price as a down payment. The ad mentioned above suggests an intent to actually rent the house out.

This could create two additional problems for the buyer. First of all, the seller, having seen the ad on CraigsList, can terminate the contract to sell AND keep the buyers’ earnest money. On top of that, if the lender sees the ad before closing they can cancel the mortgage and tell the buyers to take a hike. If the lender sees the ad after closing they can call the mortgage due and leave the buyers struggling to find financing. Especially if they don’t have additional cash to make the Loan-to-Value (LTV) at least 75%. We are aware of lenders calling loans due in Bend at least twice recently and it is not a situation anyone wants to find themselves in.

Buyer beware: Be up front with your lender. Don’t try to hide your intentions. The housing problems of 2007 and 2008 forced many lenders to re-evaluate their processes and one change many of them made was to be more vigilant in watching for borrowers who were trying to “game” the system.

Home buyers, it is good to do your homework and be involved in the transaction but if you get too excited about the purchase you could find yourself back at square one. Let the mistakes made by the buyers above be a reminder to beware of sabotaging your own real estate transaction.

How To Influence Sellers in a Multiple Offer Situation

For most of the last year in Bend, Oregon the real estate market has favored sellers because the number of homes for sale has been so low. This is called a seller’s market and in a seller’s market good homes often receive multiple offers within a short time after being listed. Multiple offers are great for the seller but put buyers in a predicament of trying to figure out how to make their offer more attractive than all the others.

A survey by the California Association of Realtors (see infographic below) confirms what you might already expect. The offer that was the highest priced was more compelling to home sellers than any other factor in 2013. It is easy to see why price would be most attractive to sellers but the good news is there are other factors that can convince a buyer to take a slightly lower price than the highest offer.

One of those factors is how well qualified a buyer is to borrow the money needed to buy the house. Pre-qualification letters are a dime a dozen but submitting an offer with a pre-approval letter can make big difference to a seller and listing agent who know the difference. A pre-qualification is based on what a borrower tells the loan officer. Generally, there is no checking of facts or even a credit check. A buyer who is pre-approved has provided their lender with a complete loan application and usually some supporting documents, credit has been checked, and the lender has run the application through the desktop underwriting system.

Another way to sweeten an offer for a seller is limit or even waive any contingencies. Contingencies are most often used by buyers to protect themselves from things that might be wrong with their borrowing ability or the house. The most common contingencies buyers place in a purchase contract include the inspection, financing and appraisal. A cash buyer can waive the financing and appraisal contingencies but a borrower who needs a mortgage cannot.

Waiving the inspection contingency can be dangerous and is not recommended for buyers who are using all of their cash to purchase the home. If the buyer finds something wrong with the house after the offer has been accepted then it’s “tough luck.” The seller has no obligation to negotiate repairs or price and the buyer has little choice but to proceed with the purchase.

The ability to close the fastest is a factor that buyers will consider in determining who wins a multiple offer situation but it doesn’t carry a whole lot of weight according to the survey. It is likely that most sellers just expect the process to take a certain amount of time so they have already accepted that fact. It probably shows up on the survey because many of the sellers were presented offers from more than one cash buyer. Cash buyers have some flexibility when it comes to how fast they can close but buyers who are borrowing money to buy a home are at the mercy of their lender.

We find it at least a little intriguing that personal information from the buyer, like a letter and family photo didn’t show up in the survey results. Here at Preferred Residential we have seen a “buyer bio” positively influence the decision of some sellers. Many sellers want to see their home go to a buyer they can relate to and some times a letter can tip the scales when two offers are substantially similar.

The bottom line for home buyers in a multiple offer situation is to make your best offer your first one.

Looking to Buy a Home? Plan on Owning it

Buying a home sets the stage for owning it and as obvious as that might seem, many home buyers fail to recognize it. They get caught up in the excitement of buying a home and don’t consider their long term needs and goals as part of the home buying process. As a result, they often end up unhappy with the home long before they planned to sell it. The good news is it doesn’t have to be that way. Some extra thought and planning while shopping for your next home can leave you satisfied with your home purchase for as long as you live there.

Patience, Grasshopper

It is important that buyers take their time and do their homework when shopping for a home. Once you sign on the dotted line, that home is yours and it isn’t cheap or easy to sell. The last thing anyone wants to do is buy a house only to find out you hate it after less than a year because there is more traffic than expected, the drive to work is awful, the schools really aren’t as good as everyone said or you can’t afford to remodel the tiny galley kitchen after all.

What about tomorrow?

A recent study by the National Association of Home Builders says buyers will stay in their home an average of 13 years before moving out. You may not expect to live in your home for that long but what happens if life gets in the way of your plans? Would you be able to live in this house longer if you had to? To the best of your ability, choose a home you will be comfortable in for as long as you live there.

Wallet Rules

Emotions can sometimes blind us to common sense and in the case of buying a home they can drown us. Your wallet should have the final word on which house you buy. If you have the thought, “Wow, that mortgage payment is high but my income will go up soon so it shouldn’t be painful after a year or two” then the payment is too high and you probably shouldn’t make an offer on the house.

Just because you qualify for a given payment doesn’t mean it will be easy to make. Buy with a fixed rate mortgage and a payment you can afford. Then if your income does actually go up you will have even more cash flow for vacations, paying down principal, saving for retirement or to save for your next house.

No More Landlord

One of the great things about renting is if something like the furnace breaks it is the landlord’s responsibility to fix or replace it. Buying a home means YOU own it and if anything breaks it is coming out of your pocket. Be prepared for the unexpected by setting up a savings account with enough money to cover the most expensive repair you might be faced with like replacing a furnace or leaky roof.

Also, be prepared for monthly expenses that you might not have had to pay while renting. We have had a few buyers tell us they wouldn’t have budgeted for something like garbage, water, sewer or gas if we hadn’t reminded them about it. While a $40 monthly sewer payment by itself might not break the bank, $200/month in unexpected utility bills could be a lifestyle changer.

Financial Reasons to Buy a Home

To a large extent, the decision to buy a home is an emotional one. Life events, like getting married, having children or landing a dream job are exciting times and often lead to serious consideration of buying a home. The National Housing Survey released quarterly by Fannie Mae suggests that this is not uncommon as most Americans buy a home for emotional reasons like having a good place to raise children, a place where their family can feel safe, space for their family and control over what happens to the living space. What about financial considerations?

Buying a home is likely the largest purchase most Americans will make during their lifetime. Maybe the home has become such an ingrained part of American life that as long as we qualify for a loan the rest of the financial picture doesn’t really matter to us. Maybe, but shouldn’t financial reasons for buying a home should carry at least as much weight as the emotional reasons? Here are five financial reasons to buy a home that we think are pretty important considerations.

You are paying for a roof over your head whether you own it or rent it. The question is, would you rather pay off your own debt or your landlord’s? There are certainly situations where it makes more sense to rent than own but in the long run it is almost always more financially beneficial to own.

Owning a home is a form of “forced savings.” Let’s face it, putting off saving in order fund a lifestyle is the American way. With a house, part of the monthly payment goes toward principal and becomes equity in the home. That equity is, in essence, a savings account. The beauty of this savings account is that it is tough to spend because the only way to get to it is to sell the house.

Housing is a great leveraged investment. By leveraged we mean money has been borrowed against it in order to purchase it. Sure it is possible to buy gold, stocks, and many other investments with borrowed money but it is much easier to finance a home or even an apartment building. Even if you don’t consider your home to be an investment consider this: A two percent increase ($3000) in the value of a home bought for $150,000 with 20 percent down payment ($30,000) translates to a ten percent gain on cash invested. In the same scenario but with only 10 percent down payment, the same two percent rise in the value of the house becomes a 20 percent return on cash.

Owning a home offers tax advantages. It is always wise to consult a tax professional when it comes to the tax ramifications of owning a home but it could also be very beneficial. In most cases mortgage interest paid on a primary residence can be deducted on the Federal Tax Return. If you have ever looked at the amortization schedule for a 30-year mortgage then you know that can be a substantial amount of money. Hopefully your local property taxes don’t equal the amount paid in mortgage interest but they too are tax deductible.

Potentially more significant than deductions is the ability to exclude capital gains on a primary residence. Single taxpayers can exclude up to $250,000 in gains (appreciation) realized when selling their primary residence and married tax payers filing jointly can exclude up to $500,000. The exclusion is available to those home owners who have lived in the house that was sold for two of the previous five years.

Hedge against inflation by owning a home. Historically real estate has performed quite well against the Consumer Price Index which is the primary indicator of inflation. The linked page shows that real estate values aren’t likely to be affected by inflationary pressures and, in fact, almost always rise faster than inflation.

These financial reasons to buy a home probably won’t ever be more important to American home buyers than the emotional reasons noted above but we can keep them in our back pocket for those times when we want logic to prevail.

Why The Final Walk Through of Your New Home is Important

New homes are looking pretty attractive to buyers in Bend, Oregon right now. What makes new construction attractive is the competitive pricing compared to existing homes and, of course, the fact that everything is new. It is easy for buyers to think that “new” would mean there would be no problems with the house. Unfortunately, not all builders are created equal and some times there are problems, major or minor, that need to be addressed. The trick is to be able to identify those problems and bring them to the attention of the builder while the builder is still willing to fix them for free.

One recommendation we at Preferred Residential always make, even for new construction, is to get a professional inspection. A professional inspector should catch anything major but there are a lot of things, especially “finish work” that fall outside of the inspector’s realm. That’s where a buyer’s walk through becomes important.

Most builders will provide an opportunity for the buyer to inspect the home one last time before occupancy. This is called a “Final Walk Through.” Buyers should read the builder’s warranty closely and know what it covers and for how long because many builders view this walk through as the buyer’s last chance to raise concerns about workmanship in the new home. Some builders will cover workmanship for up to a year but if there are issues in the house, repairs will be much easier for the buyer to deal with before moving in.

Take your time. Don’t let the builder’s representative is standing next you make you feel uncomfortable or rushed. If you think you might feel rushed then bring another set of eyes with you. Your Realtor® and/or a friend who has experience in construction or has bought a new house recently would be great choices. Look at everything. Sit or stand in different places in each room and just look around. You might be surprised by what you see.

Damage to sheetrock. A lot happens in a house after the drywall is hung. Appliances, light fixtures, flooring, interior doors, cabinets, bathroom fixtures and trim are all installed after taping, texturing and painting. This creates many opportunities for interior walls to be damaged. We have seen dings in walls below the toilet, a line running the length of a hallway where it looked like someone had drug a ladder through wet plaster on the ceiling, unusually large blobs of plaster near the ceiling, and spots where the paint looked different because someone had spilled something on the wall before painting.

Floor coverings. Look at the transitions from one floor covering to another. Check to make sure flooring with lines in it, like tile and laminate, look square and the edges are finished or covered. Grout lines should be straight and all the tiles should be level so you don’t catch a toe on an edge. Carpet seams should be tough to see not painfully obvious like this one.

Doors and windows. Open and close each and every window and door in the house. Make sure they open and close correctly and when they are closed, exterior doors and windows should seal properly. There should be no draft or light coming into the house from around the edges of a window or door. We have a client who bought new construction and within 6 months noticed that he could see light through the MIDDLE of the door where the wood was separating. It is a beautiful door but now it is a little less beautiful because the builder put putty in the seam instead of replacing it.

Plumbing fixtures. It is not uncommon for a small leak to go unnoticed in a new home. Run water in everything that can be turned on then check the fresh water lines and drain lines for leaks by sliding a hand along the lines. If it comes up wet there is a problem.

Cleaning. One of the best things about a new house is that no one has ever lived there and it is all new and clean….usually. Construction creates a lot of dust and debris and construction workers are not known for their cleanliness. If the blinds are dusty or there are dirty hand prints on the wall or banister don’t be afraid to ask the builder to clean them.

These are all items that reflect on the builder’s craftsmanship and the builder should be more than willing to fix them. Just remember to take your time and be as thorough as possible.

How Much Can I Qualify For?

How much a borrower can qualify for when buying a home in Bend, Oregon is primarily determined by the debt-to-income (DTI) ratio and the loan program used to finance the home purchase.

DTI ratio is a measurement, expressed as a percentage, of your eligible gross income that goes towards paying the housing principal, interest, taxes and insurance plus other monthly liabilities like auto loans, credit cards, student loans etc..

For example, if a buyer has income of $6,000/month and $2,600/month in liabilities (monthly debt payments including the new house payment), simply do the math to calculate your DTI ratio.

For example: $2,600 ÷ $6,000 = 43% DTI Ratio

If you aren’t already working with a lender a “How much house can I afford” mortgage calculator is a great tool to get you on your way to figuring out how much you might qualify for. Be as accurate as you can with your numbers so you don’t end up with “garbage in – garbage out” results.

Each loan program (like FHA, VA, USDA, Conventional) has it’s own maximum DTI ratio limit like 43%, 45%, and some go to 50% or 56%. A high DTI ratio of 50%-56% indicates how much of the gross income is being used to satisfy debt and how little will be left to pay bills like utilities, gas for your car and going out to dinner or a movie.

Having a DTI Ratio at 43% or lower is now the industry standard as a result of the Qualified Mortgage and Ability to Repay regulations recently passed by the government.

Keep in mind while going through this process that your debt-to-income is extremely important in determining how much you can borrow. However, what that number ends up being depends on how good you, as the borrower, are at telling your loan officer about all of your income and being able to support it with documentation.

Go through your most recent three bank statements and look closely at your deposits. Are there deposits that happen every month but aren’t part of your salary? You may be able to use those to bolster your income. If you receive cash payments on a regular basis but don’t deposit them to the bank you may not be able to use that money to qualify even if you have a contract in place that says you are owed the money. Underwriters like a paper trail for all your money, especially your income. This is why it’s important for lenders to get all the details before the borrower can expect to see an accurate dollar amount they qualify for.

Mortgage lending is not rocket science, but it can get uneccessarily complicated when borrowers start making assumptions or even guesses about variables involved in determining the debt-to-income ratio and how much a borrower qualifies for.

Some lenders will be more conservative in their initial estimate than others lenders. I feel this is a prudent way to approach a pre-approval because there is nothing worse than being told by a lender that you qualify for a mortgage of X amount only to find out two weeks later when your offer has been accepted, inspection completed and appraisal returned that you don’t qualify for that amount. Now you can’t buy the house you are in contract on. Frustrating to say the least.

The key to figuring out exactly how much you qualify for is dependent on the questions a loan officer asks when gathering information as well as the completeness and accuracy of the information the loan officer receives in answer to those questions.

Here is a brief list of variables that impact how much a person qualifies for:

Property tax rate Credit scores Loan Program & term HOA dues Child/spousal support	Home owners insurance Interest rate Loan to Value (LTV) Student loan debt Manual vs Automated Approval

My advice is that you work closely with an experienced, reputable, local lender on your pre-approval and have him/her explain how they came to your qualifying amount just to make sure they are using an accurate, monthly qualifying income and using reasonable assumptions for the variables listed above that can’t be accurately determined so early in the home buying process.

Once you have your qualifying amount in order so you know how much house you can afford and a pre-approval in hand, you’ll have more confidence when making offers and negotiating sales price.

Here is a short video that offers more technical terms and ratios and shows you how to do the math yourself to calculate your ratios.

http://youtu.be/_YRYA5Rg3F4

Even More Tips for First Time Home Buyers

In step one you selected the real estate agent and mortgage lender you thought were the best fit for you. In step two you set reasonable expectations for your home search. Now that you are ready to begin looking at houses it is time to buckle down and get serious.

The best way to prove to home sellers that you are a serious buyer is to have an approval letter from your lender. Not a pre-qualification letter but a pre-approval letter that states your lender has verified your income and expenses and you have received approval for a mortgage through the desktop underwriting system. Having this letter from your lender will be an important part of any offer you make.

First of all it will put you in a position to be able to make an offer. A smart seller won’t even respond to your offer until they have some sort of verification that you have spoken with a lender. Most buyers only have a pre-qualification letter which just means the lender thinks they can provide the buyer with a mortgage based on what the borrower has told them. Your pre-approval letter will put your offer in a better light with the seller. The seller will be more inclined to consider your offer as your mortgage has already cleared one hurdle to approval. A buyer with only a pre-qualification letter could end up being a colassal waste of time for the seller.

Speaking of wasting time…During this phase of your home search it is vitally important that you communicate with your Realtor and that she understands what you are saying. No one wants all that driving around town to be a waste of time. While you are standing in a house, tell your real estate agent what you like and what you don’t like. Tell her why. The goal is for you and your realtor to be on the same page about what you want so that she can present you with homes that have the things that are important to you. It is one thing to put your “must haves” on paper but once you start looking at houses that list can change. It is not uncommon for first time home buyers to think they know what they are looking for only to look at a few houses and find out that really wasn’t what they wanted or it was something they could live without.

It may take a time or two of looking at houses with your Realtor® for her to really get a feel for the kind of house you are looking for. By the second time you go out looking at houses and for sure the third you should be seeing homes that are in the same ballpark of what you want. They won’t all be THE house but if you want 3 bedrooms, 2 baths and a fenced back yard then you certainly shouldn’t be looking at 2 bed, 1 bath, zero lot line homes just because they are in your price range.

This is the fun part of your home search so don’t forget to enjoy it. Don’t get discouraged if your home search takes longer than you had hoped. The house for you is somewhere out there and it will be clear to you when you have found it. The bonus is that because of all of your hard work and diligence you have two great professionals working for you to make the deal happen.

More Tips for First Time Home Buyers

You started the process of buying your first home by choosing a real estate agent and mortgage lender that meet your qualifications and feel like a good fit. Before you take off, excited to find the perfect home, step back and set some expectations for your home search with more tips for first time home buyers. What you expect to happen during your house hunt will affect how you react to what actually does happen. Setting realistic expectations for yourself now can save headaches and money later.

This won’t be the last home you ever buy. Most first time home buyers can’t afford their dream home. If this is the case for you then try thinking of your first home as an investment in your future homes. As an investment, the most important aspect of your first home will be appreciation/re-sale value. At some point you will likely want or need to sell this home and your best bet to make money on it is to have bought a home that others will find attractive. Look for homes in well kept neighborhoods, close to public transportation, near shopping and amenities and in school districts with good reputations.

Be prepared to set emotions aside. Approach buying a house as a financial decision not an emotional one. There is so much money involved in buying a house that you can’t afford to make an emotional decision based on modern styling or high end finishes that cause you to overlook the four lane highway outside the front door. Be analytical. It might be useful to make a list of pros and cons for each house.

Expect added pressure. Remind yourself that you don’t need extra pressure from yourself or anyone else. Buying a house carries enough pressure on its own. Don’t let anyone add pressure on top of that. We recommend leaving family and friends at home during showings. While they usually mean well, more often than not their comments do nothing more than muddle your thoughts and make you feel like you can’t think for yourself.

Some times pressure can come from a Realtor. Your real estate agent should never put pressure on you to buy a house. If it is ever anything other than trying to convey a sense of urgency in a potential multiple offer situation then it might be time to find a new real estate representative. Listen to advice but don’t let anyone tell you what house to buy. You are the one who will be living there, not them.

Extra pressure can also come from you. Expect that you aren’t likely to find the home you will buy the first time you look at houses. After multiple showings and weeks of looking, buyers some times convince themselves that the house they are looking for just isn’t out there so they should settle for something less. Starting your house search with the knowledge that it can take weeks or even months to find the right house (especially in this market with little inventory) will help keep you from pressuring yourself to settle.

Having set some reasonable and realistic expectations now it’s time to start your home search!

We have even more tips for first time home buyers.

Is a Fixer Upper Right for You?

Whether you are a handy home owner looking to “buy up” at a discount, an investor looking for a flip or rental, or a first time home buyer looking for an affordable house you can make your own, a house that needs some repairs can present you with a good opportunity to create equity.

It sounds pretty simple, find a house that needs some help, buy it and fix it up. However, if you aren’t careful it can be quite easy to lose money on a fixer upper. Here are some things you should consider when shopping for a fixer upper.

Get an inspection: It is one thing to be handy with a hammer and saw but quite another to be able to properly inspect a home. Many problems in a house may be obvious: plumbing leaks, failing windows, and a leaky roof for example but it is the ones that aren’t so obvious that can be the most costly to fix. Mold, termites in the walls, water not being properly directed around the foundation and siding that no one knows how to fix or replace (we’ve had this happen) are not always so obvious. We always recommend a professional inspection, even for experienced buyers.

Get bids from a licensed contractor for all repairs: Unless you have been buying and fixing homes for a long time, the best way to know how much a repair will cost is to ask a contractor. Then add ten percent. This will give you a worst case scenario of how much it will cost to fix your home. If you can’t afford to pay someone to complete all the repairs (even if you are planning on doing all the repairs yourself) then it might be a good idea to move on to the next fixer upper. Think of it as an insurance policy. You never know when a timber might fall on your head or a spider might bite you while crawling under the house and if you can’t complete the house you could end up in a really bad place financially.

Calculate the time to completion and be realistic about your ability:

The goal on any fixer upper is to keep cash expenditures to a minimum. For most, the easiest way to do that is to do the repairs yourself. The trick is to know your limitations and not over estimate your ability. Time is of the essence whether you are trying to get the house on the market, get it rented or just ready to move in. Be sure to carefully consider whether or not you have the time to get the repairs done yourself because often there is a surprise hidden behind those walls that can set back your timeline.

Determine if you are creating value and/or equity: It’s great to make a house attractive with stainless steel appliances, granite counter tops, and tile bath surrounds but if you aren’t creating something that people will want to rent or buy at a price that allows you to make money then you better be planning on living there for a long time. Your real estate agent and/or property manager are great resources to help you determine how much value your improvements will add and how they will affect rentability.

Buying a house that needs some work is a great opportunity to make some money whether you are an investor or not. Just be sure to take your time and do your homework because it can also be an easy way to lose a lot of money.

Winter May be the Best Time of Year to Buy a House

One thing we could probably all agree on is that winter is not our favorite time of year to move. From the cold to the potential for snow and rain it just doesn’t seem like the best use of one’s time. It doesn’t seem like it but there are some advantages to putting on the over-coat and galoshes and climbing in the Subaru to find your dream home.

Visit during bad weather. This can be especially beneficial to a home buyer in Bend when there is snow on the ground. How much sidewalk is there to shovel? Which way does the driveway face? If it is a steep driveway and it doesn’t face south you could be in for a long winter of parking on the street instead of in your nice (relatively) warm garage.

Another advantage of doing a drive-by with snow on the ground is being able to see the snow or lack of snow on the roof. The snow on a well insulated roof will melt much slower if the house is well insulated. Compare the snow on the roof of the house you are considering to the snow on the roof of the neighbors’ houses. Just remember compare sections of the roof that are facing the same direction. Especially if you are shopping on a sunny day in Bend.

Spend time in the house on a cold day. Walk around the house from room to room to see how well the furnace heats the whole house. Figure out where the furnace is located and go the the rooms located the farthest away. Also, make it a point to check as many windows as possible while the furnace is running. Run your hand around the inside edges of the window to feel for a draft.

Fewer buyers to compete with. Many people don’t like to move during the winter so while they are hiding out you can take advantage of sellers who are motivated. Fewer buyers means that you can take more time to consider a home before you make an offer. It also means that you may have more negotiating power with the seller when you find the perfect house.

You can have your Realtor and lender all to yourself. We have already established that most people have a general dislike for moving during winter months. Now is the perfect time to take advantage of your real estate agent and mortgage lender. They will be able to spend more time on your search for a new house and process your loan faster.

If you are thinking about buying a home come spring why not start your search now? You aren’t in a rush so you don’t have to make an offer unless the house is exactly what you are looking for. And if you don’t find your dream home what have you lost? Maybe a little time but when the competition picks up again you will know exactly what you are looking for and be ready to pounce before the other guys even know what happened.

Home Buyers: Don't Sabotage Your Deal

How To Influence Sellers in a Multiple Offer Situation

Looking to Buy a Home? Plan on Owning it

Patience, Grasshopper

What about tomorrow?

Wallet Rules

No More Landlord

Financial Reasons to Buy a Home

Why The Final Walk Through of Your New Home is Important

How Much Can I Qualify For?

Here is a brief list of variables that impact how much a person qualifies for:

Property tax rate

Credit scores

Loan Program & term

HOA dues

Child/spousal support

Home owners insurance

Interest rate

Loan to Value (LTV)

Student loan debt

Manual vs Automated Approval

Even More Tips for First Time Home Buyers

More Tips for First Time Home Buyers

Is a Fixer Upper Right for You?

Winter May be the Best Time of Year to Buy a House

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