Tips for Home Buyers and Sellers

April 27, 2007 — -- Sales of existing homes were down in July for the fifth month in a row, according to the National Association of Realtors, with the median home price down for the 12th straight month.

Given all the concerns over the housing market these days, the question on everyone's mind is: Is this a good time to buy or sell real estate?

If you are looking to buy, this is a great time for you.

Interest rates are still at a very low mark, there are a lot more houses available in certain areas and buyers can take their time selecting a home because places are staying on the market longer.

For sellers, it's a bit more tricky.

Some markets have seen significant drops in property value leaving homeowners with less equity than they had a few months ago.

"People need to realize that a home is where you live. It's not a lottery ticket," said Jim Gillespie, president and CEO of Coldwell Banker.

Just because the market has fallen apart in some areas, it doesn't mean that property owners are losing everything.

To help you navigate the market, here are some other tips for buyers and sellers:

1. Be a Careful Shopper. It's a buyers market with a wide variety of choices, so don't make a hurried decision. During the housing boom if the seller had multiple offers they may have chosen to avoid a finicky shopper, but since buyers have the edge take the time to note details in the house. Do the faucets work properly? Do a full home inspection and be aware of what repairs may be needed if a purchase is made. — Lawrence Yun, an economist with the National Association of Realtors.

2. Back to School, and a New Home? While it's important to shop carefully, it might pay to make a decision in the next few months. The housing market is expected to pick up in three to six months when the uncertainty in the mortgage market settles, so the window of opportunity may not favor buyers through 2008. — Lawrence Yun, an economist with the National Association of Realtors.

3. Don't Try to Time the Market. When home prices are lower, it is very tempting for potential buyers to try to wait as long as possible in the hopes that prices will decline even further. This strategy can be detrimental. Once a home is priced to what the current market will bear, buyers will make offers. It is best to work with your sales associate to make an offer based upon the prices at which similar homes in the market are selling for. In a buyer's market, there are more opportunities for negotiations, but making an offer is an important step. If you find a house you love, put your bid in and negotiate. Don't let it sit for another buyer to make an offer. — Coldwell Bankers.