5 things you should know if you have not bought a house in the past few years.

If you have not bought a home since the early 2000s you will need to be brought up to speed on what has changed, what to watch out for and what you need to consider before buying a house during 2010.

1. Prices are low. I mean real low. The median home prices of homes in the Orlando area are at an 8 year low. How low will they go? Where are the best deals?

2.  Financing guidelines have tightened. This is especially true of ARM and interest only loans. What financing is best suited for you? What can you expect to pay in closing cost and/or down payment?

3.  Low list prices are resulting in an increase in the number of homes selling. The Orlando real estate association is reporting a 32% increase in home sales so far in 2010 compared to the same time period in 2009. Will this increase result in higher sale prices?

4.  REO. REO or real estate owned is a huge component of today’s real estate market.  Properties that banks have foreclosed on are having a huge impact on the increase of sales currently being experienced. What is involved with purchasing a bank owned REO property?

5.  Short sales. Sellers who are upside down on their mortgage and are facing a distressed situation are asking their lender to accept less than is owed on the house in order for the owner to avoid foreclosure. Short sale prices are competitive with bank owned listings but the time it takes to negotiate and close these types of transaction are a real concern to potential buyers. Is buying a short sale a smart move?

I have only listed 5 things you should be aware of if it has been awhile since you bought a home. To discuss any of the 5 listed in detail or to find out what else you should know about buying a home, call me at 407-304-0255.