Page 2 of 4 Buying When The Market is Hot: Loan Pre-Approval and a Buyer's Agent Can Help

Do Your Homework

Be the Best Buyer You Can Be

1. Get your loan pre-approved. Having proof of a lender's commitment is very appealing to sellers. This needn't take very long at all. Weichert's Internet-based "Loan Prospector" program is aligned with Freddie Mac and can give buyers a loan commitment literally within minutes.

2. Make a larger "earnest money" deposit. "Earnest money" is a deposit you make with the seller when you are serious about pursuing the home they are offering. It helps hold the home off the market while your contract offer is reviewed by the sellers and their agent. "A larger deposit shows the seller you are serious about staying in the contract," says Huffman.

3. Put as few contingencies in your agreement as possible. This means less work for the seller and a shorter time period before the potential closing of the deal. Depending on the age and general condition of the property, Huffman has seen winning contracts that had absolutely no contingency clauses, not even a home Inspection clause. Of course it's always advisable to make your sale contingent on a home inspection in older homes that may have hidden problems.

4. Go with your agent when he or she presents your contract. This allows for more efficient negotiating and quicker written response to counter offers. It doesn't mean that you're going to be in the same room when your agent presents your offer to the sellers. You should be nearby, however, even if it's just waiting in your agent's car outside. That way you can initial any counter offers or counter-counter offers that may be necessary. Your initials hold more weight than a verbal "OK" over the phone, and could help you win the home over a competing buyer who isn't present in the flesh.

5. If you are unable to attend the contract presentation, consider authorizing your agent to use an escalation clause which allows them to increase the amount you are offering in order to compete with others bidding for the property. However, make sure your escalation clause has a ceiling amount that you can live with, cautions Huffman.

6. Have your agent write more than one offer prior to presentation. If the home you are looking to buy is something of a fixer-upper, for example, you should consider writing up one contract that includes the seller making repairs, and one that doesn't.

The Crystal Ball

Looking For A Newly Built Home? Builders Have Made the Buying Process Easier Than Ever

While some first-time buyers want an older home of a particular style, and some are most concerned with location and not the home's age, others have their hearts set on owning a newly built house. If you fall into this last category, you're not alone. The country's best home builders are having a busy fall season in the Washington metropolitan area this year trying to fulfill the huge demand for their products. Tom Bozzuto of Bozzuto Homes says the market is as tight as he has ever seen it for home buyers. "The customer demand is just incredible. Builders can't find enough buildable land to keep up," he says. Bozzuto has sold more than half of the luxury condominiums it is offering in Rockville's Falls Grove neighborhood and has yet to even begin construction there. New homes are currently being offered in a variety choice locations by respected builders such as Airston Group, Drees, Brookfield Homes, Ryland Homes, Washington Homes, Oak Ridge Builders, Coscan and more. The trick for buyers is to determine where they want to live and to start there home search early. Get out early this spring and be prepared to make decisions quickly," says Bozzuto. He adds that most builder and Realtor web sites include mortgage calculator software that allows buyers to quickly determine what they can afford when buying a new home. Planned communities such as Salem Fields and Lee's Hill in Fredericksburg or Brambleton in Loudoun County, offer a wealth of home choices in extremely well-design communities that offers loads of recreational, social and high-tech amenities. Everything-down to the finishes and interior and exterior detailing-is designed to make your newly built home a charming and comfortable retreat as well as a state-of-the-art modern dwelling conforming to modern standards of energy efficiency and high-tech convenience. Make a point of visiting several of these communities during your search for a new home.

Find a Builder, and a Salesperson, You Like

"My advice to first-time buyers in the new homes market is to get comfortable with the builder's salesperson," says Blair Deseati, sales and marketing director for Ryland Homes, "Make sure from the start that you are working with someone you get along with, someone who makes you feel at ease. A great salesperson is only the one that's great for you." Whether or not you are working with a real estate agent as you pursue a new home - and it never hurts to have the support and expertise of a good agent - there are some issues you'll face that are unique to new construction You'll probably have the opportunity to make changes or additions to the basic model you choose, for example, since the home you are buying most likely has not yet been built. Look for a salesperson you feel is going to help educate you in those areas, says Deseati. "There are so many facets of education during the home buying process. You want your rep to help educate you on financing options, on the house and how it's built, and on the community and all its elements - where's the shopping, where are the schools, how's the commute?" Tom Hayden of Oak Ridge Builders agrees that the beginning of the buying process should be a very honest discussion of your priorities as a buyer, your financial picture, and other personal information relating to your needs and expectations. A smart buyer should be willing to share that information with the right salesperson to allow them to best help you make choices. Builders have homes designed for buyers in all price categories and locations, says Hayden. The trick is to lock in these low interest rates for as long as possible while you search, or while you wait for your new home's construction to be completed. Oak Ridge, for example, works with a partner lender who can lock in interest rates for as long as six months while a home is being completed. Currently the company is selling townhomes perfect for first time buyers in the Woodbridge area and is offering close-out lots of 1/2 acre or more at Meadowbrook Woods. Remember, every buyer comes in with a unique set of circumstances, and once that's on the table, a good builder salesperson is going to give you honest and informed advice on how to move forth from that point, The great builder salesperson may even tell you this isn't the right place for you to buy, considering your particular needs and circumstances, but will give you directions to the place that is. Ryland's Deseati says that there are buyers at every price point, and that they all have questions, concerns and fears. "That's why we try and provide as much information up front as possible," he says. To further simplify the process for those buyers who prefer it that way, Ryland has created a one-stop shop offering the services of Ryland Mortgage Company and Ryland Title, says Diseati. "Many buyers are happy knowing they can handle it all through us," he says.

Benefits of Buying New