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Wendella Ault Battey, LLC
Attorney at Law
283 Collins Street
Hartford, CT
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WWB Associates, LLC
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April 2009 Tip

If you are one of those people who have been waiting until the real estate market rebounds to purchase that home or investment property, there may not be a better time than now. There are clear signs that the market is moving up, ever so slightly. Interest rates are at an all time low. The banks must now start lending some of the stimulus funds they have received from Washington, and the long days of winter are now behind us.

If these are not enough reasons to buy a home consider the large tax credit that has been made available to purchasers, and which has been extended through November of this year. If you are still not convinced, then consider all the foreclosed properties that are now hitting the market at record breaking numbers. What we are seeing are foreclosed properties that the banks need to get off their books. Many of these properties have winter damage because they have been unoccupied through the winter. But there are a great number of these properties that only require some cosmetic work such as cleaning and painting. Remember many of the prior homeowners were desperately trying to keep their homes and eventually had to leave after the moratorium on foreclosures was over.

Because of the significant drop in prices being offered for these homes, in some cases as much as twenty to thirty percent (20%-30%) decrease in value depending on the location of the property, the lenders are looking for cash borrowers. We know that there are cash borrowers out there because of the multiple offers these properties are attracting as soon as they hit the market. In at least four cases my borrower was out bided on a property, with seven or eight other offers being made at the same time, above the asking price, and within one to two days of the property being listed. Here's the tip.

Tip of the Day:

If you have cash you have been holding on to for the last six to eight months, this is probably a good time to buy that home or investment property, even if you have to finance the purchase. Foreclosed properties are worth considering, but they are moving fast. If a property goes on the market and you have looked at it with your real estate professional, do not take too long before making an offer. Since these properties are already discounted make the offer at the asking price. If you think the property is a good buy then chances are that other buyers out there will feel the same way. A lender will more than likely accept your offer if it is made at or close to the asking price, rather than wait to see what other offers may come in. If you find yourself in a multiple offer situation, do not bid more than the asking price unless the property is clearly worth more in its current condition and you really want the property. Finally, always consider what your investment objective is, whether to live in the home or rent it out before making your offer. It just might be accepted.

For more tips, please visit our tip archives.