5 Mistakes Home Buyers Make

I want to share this article published yesterday in the Wall Street Journal. Useful info for all of my past, present and future buyers!

By SARAH MAX
Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal homebuyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.

Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the foul market–and the record low mortgage rates.

But woe to the overconfident buyer. Here are five common missteps that first-time home buyers make.

1. Snubbing the real estate agent

With so many websites offering a mass of data on listings, who needs an agent? Most people, actually. Finding a house and figuring out comps–the price of comparable homes on the market–is the easy part. Managing the nuances of offers, inspections, financing and all the other pivotal steps to buying a home is where many new buyers tend to get tripped up, says Shii Ann Huang, an associate broker with The Corcoran Group in New York.

When you hire an agent to act as your "buyer's representative," she's obligated to put your interests first, even if her commission is paid by the seller and based on the sale price. Skeptical? That's all the more reason to find an agent on your terms. Ask friends and acquaintances for referrals and interview two or three candidates before deciding.

But don't let the agent find you. When Viviane Ugalde and her husband, both physicians, bought their first home in Sacramento nearly two decades ago they made this mistake. "We stumbled onto an agent when she saw us peeking in the windows of an empty house for sale," Ms. Ugalde recalls. The agent, who happened to live on the same block, came out of her house (wearing pajamas), offered to show the couple around the neighborhood, and ultimately helped them find a house. Then the agent, who was new to real estate, neglected to show up for the closing. "It was scary and confusing signing what seemed like a thousand pages," says Ms. Ugalde.

2. Guesstimating how much you can afford

Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt and then get a dose of cold water when lenders refuse to qualify them for that amount. "The process is so different than it was four or five years ago," says Diann Patton, a broker with Coldwell Banker in Grass Valley, Calif. Not only are lenders reading loan applications closely, she says, they're verifying employment and running credit checks multiple times during the process.

Make a date with a mortgage broker or banker before you get serious about your search, says Ms. Patton. Remember, too, that the costs of buying and owning a home go well beyond the sticker price. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.

3. Letting charm cloud your judgment

No one will fault you for falling hard for a charming older home. But, unless the house has been painstakingly remodeled or you're prepared to pay for repairs and upgrades, an old house can quickly lose its allure. Last year Alison Koop, a public relations manager for the University of Washington, came dangerously close to saying "I do" to a seemingly fabulous mid-century home in northeastern Seattle. Ms. Koop was so smitten with the big windows and vaulted ceilings in the living room that she neglected to notice the exposed wires, shoddy roof and other structural problems. Any delusions Ms. Koop had were laid to rest in the guest bathroom. "When the inspector turned the faucet on," she says, "the spigot fell off, hitting the floor of the tub with an exclamatory thunk."

If you're considering an old home, don't let the inspection be your last line of defense, says Jay Papasan, vice president of publishing at Keller Williams Realty. "Negotiate a long due diligence period," he says. That gives you time to get real estimates from contractors and back out if need be.

Of course, new homes aren't without their drawbacks. Recently, many newly built homes experienced serious problems with Chinese-made drywall, for example. Proceed with care whatever the home's age.

4. Focusing on the house, not the hood

In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and marathon commutes. When Laurie Tarkan and her husband bought their first home in 2001 they were so infatuated with the circa-1924 three-bedroom cottage that–in addition to brushing over some of the headaches of an old house –they didn't give a whole lot of thought to its somewhat out-of-the-way location about a mile from downtown Maplewood, N.J., a popular New York suburb. "As a first-time buyer you're not aware of all the things you should think about that aren't about the house," says Ms. Tarkan, who after living in New York City for 17 years, still hasn't gotten used to driving everywhere.

Spend as much time as you can in your future neighborhood, ideally on different days and times. Eat in the restaurants, drop in a yoga class, test drive your commute.

5. Making arbitrary offers

With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them–all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.

If the house has been on the market for months, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity and market trends, and don't be afraid to start the bidding low. If the house is fresh on the market (or recently foreclosed) and other buyers are circling the block, put your best foot forward but don't get suckered into a bidding war.

Everyone, please remember we have a good amount of inventory right now and together, we'll find you that "just right" property! Have a safe, fun-filled Labor Day Weekend at the beach, Pier Park or where ever you are this holiday weekend!

As always, I'm here to take care of ALL YOUR REAL ESTATE NEEDS!

Your Realtor For Life,

Karen Branham, CRS*, SFR, SRES, e-Pro, Broker Associate
Coldwell Banker United, Realtors
726 Thomas Drive
Panama City Beach, FL 32408
(850) 832-8626
Visit me at http://www.KarenBranham.com

*CRS - Designation earned by only 4% of Realtors Nationally

PANAMA CITY BEACH....THE FUTURE IS BRIGHT!

WOW! I AM SO EXCITED TO SHARE THIS LONG AWAITED YET EXPECTED NEWS ABOUT OUR BEAUTIFUL AREA! No, it's not about BP, nor the grand celebration of our very own Panama City Beach International Airport, but it's the expected optomistic and exciting news release regarding our HOME VALUES!

If you did not catch the article last week regarding America's Strongest Housing Markets in 2014, here's a recap with some local stats.

Biggest home price increase projected in 2014:

Coming in #6 in the United States:

PANAMA CITY-LYNN HAVEN-PANAMA CITY BEACH METRO AREA.

Forecast 4-year price increase: 26.9 percent
Current median price: $158,669*
Prices to reach trough in: 2010 Q3
Median family income: $53,800
Population: 164,770

Home prices in the Panama City area fell about 27 percent after hitting a peak between 2005 and 2006, according to the FHFA home price index. Agents have shared the feeling that our local market was stabilizing earlier this year, but the BP oil spill led some buyers to cancel their contracts and rethink about buying in the area. Despite the area’s large number of foreclosures (1.93 percent in the first half, according to RealtyTrac), agents believes the new Beaches' International Airport which opened in May would help stimulate our local economy. The area's unemployment rate reached 12.1 percent in January and dropped to 9.3 percent in June, according to BLS data.

After many buyers who were sitting on the fence realized that our beaches were not closing due to the BP situation and that the area was still a great market to invest in, plus with interest rates at the lowest rates we have seen in perhaps the last 10 years, buyers decided to hit the streets again for some great deals.

I personally have had a better first year in 2010 than in 2009 so I am even more excited to see how we finish the year in 2010. I know sunny days are ahead!

So, buyers, call me now so I can find you the best deals on the beach! Sellers, if you have wanted to move up and could not afford to before, now you can buy that new home at an incredible value before that "move up" home value is no longer within reach!

Have a terrific end of sunmmer, watch out for our returning students beginning Wednesday when school opens, and remember, there is LIGHT AT THE END OF THE TUNNEL!

Your Friend and Professional Realtor, Karen

Karen Branham, CRS*
Broker Associate, SFR, SRES, e-Pro
"Exceptional Service"
Coldwell Banker United, Realtors
850-832-8626
http://www.KarenBranham.com

*CRS - Designation Earned by ONLY 4% of Realtors Nationally

WHAT'S NEW IN PANAMA CITY?

So, now we know what that crazy upside building is on Front Beach Road! It's "WonderWorks"! What??? Yes, now friends and family from out of town, and even us locals, can enjoy this long awaited new attraction. "WonderWorks", the largest indoor attraction in Panama City Beach, is located right across the street from "Ripley’s Believe It or Not" Museum, talk about convenient. It is a four-story, 39,000-square-foot attraction filled with entertainment, including 100 interactive hands-on exhibits, small rides, video games, a gift shop and more. I think we'll take the family and check it out this summer.

Next, although it's been open for a few weeks now, if you have not visited our new International Airport, take a drive out there to see what the excitement is all about. My youngest daughter Erin flew into the new airport last week and parking and picking up travelers was very quick and easy.

Also, what's new on the beach? Nothing, we still have our gorgeous beaches, sun worshipers, and of course swimmers! My husband went out diving this past weekend and brought home lots of delicious fish, too.

Finally, don't forget our Summer Concerts have started at Pier Park, every Thursday between 7 - 9 pm, bring that cool drink and your lawn chair, maybe even bring along your local real estate magazines to check out the great deals still available in Panama City!

When you are ready to buy or sell, just let me know!

Have an AWESOME week and a safe July 4th holiday weekend!

Your friend and REALTOR for life, Karen

Karen Branham
Certified Residential Specialist (designation held by only 4% of Realtors Nationally)
"Exceptional Service"
Coldwell Banker United, Realtors
Email: karen.branham@cbunited.com
Website and blog: http://www.karenbranham.com
Direct: (850) 832-8626