Mortgages | Car Loans | Personal Loans | Debt Consolidation | Credit Reports | Credit Cards

Home Purchases

Home Purchase Advice
-Home Purchase Guide
-Ensuring a Fast Purchase
-Pre-Application Preparation
-Buy, Don't Rent!
-Spouse Have Bad Credit?
-Effects of Credit Card Debit
-Student Home Loans
-Mortgage Mistakes
-Fair Market Value
-Buyer's Market or Seller's?
-Pre-Offer Question to Ask
-Making an Offer
-Putting No Money Down
-Home Inspections
-Home Warranties
-Escrow Accounts

Home Construction Info
Buying a Vacation Home

Home Equity Loans

Auto Loans
Personal Loans
Debt Consolidation
Credit Reports
Credit Cards

 -Managing Money
 -Credit Help
 -Checking Accounts


When in the market for a new home, your estimated fair market value is not the only factor that influences the value of a home you are interested in buying. You need to determine if the area you are interested in buying in is a seller's market, or a buyer's market.


Estimating the fair market value is still necessary, but you need to realize that the numbers you come to are only estimates and can be based on house sales from 6 months or greater. Believe it or not, a lot can change in six months. Resulting in a shift from an area being a buyer's market to one that favors the sellers, and vice versa.

Seller's Markets
You will need to negotiate close to market value if a house you are interested in is located in an area that is a seller's market, with houses selling quickly, for prices close to asking prices. You don't want to lose a house that you are interested in by playing games over the price.

Sometimes, a house is in area that is so favorable to sellers, that more than one offer is made on the property at the same time. Often, the highest price will be accepted, with no negotiations taking place. Sometimes, a seller will negotiate with all potential buyers at the same time. This type of seller is looking to get the most dollar for their house. There are some tactics you can follow if you are putting a bid on a house that has already had bids placed by several other buyers. First off, make sure that you have a loan approval. This will show that you are serious about buying. Also, when trying to close the deal, don't ask for any extras in the sale (i.e. asking for appliances and/or furniture to be thrown in). Another thing you can do is let the seller know that you are very flexible in regards to when you want to close. 

Buyer's Markets
If a market is soft, it favors the home buyer. If this is the case, the house may already be on the market for some time. A buyer's market will give you the upper hand and probably allow you to make a purchase at a price that is substantially less than what the seller is asking. You will also have the flexibility of pacing the entire process at your speed, closing when you want.

It is important that you conclude what kind of market it is as soon as you are interested in the property. If you delay, and it is a seller's market, you may miss out on a house you really like. On the other hand, if you fail to detect that an area is a buyer's market, you can end up paying more than you should for a house.

Evaluating the Costs of Homeownership
Understanding the Housing Market
Calculating Mortgage Payments
Determining if Your Salary is Enough for the Loan You Want

Selling a Home?
Learn what you can do make your home more appealing during the winter months
Removing clutter and junk will help you sell your home


Home | Apply NowCommon Questions | Mortgage Loan Types | Contact Us
Mortgage Fees | Mortgage Information

Home Construction Info | Vacation Home Buying Tips | Home Purchase Advice

Home Purchases | Refinancing | Home Equity Loans

1998 Star Loan Services Inc.. All Rights Reserved. Privacy