Redding's Ups and Downs

Everyone seems to think that today’s real estate market makes it easy for home buyers to snag a deal. Sometimes that’s true, but more importantly, buyers must remember to stick to a well planned budget, or a good deal can turn your life sour.

Good accountants are good consultants. Good lawyers are good consultants. And good Realtors are good consultants. Don’t be afraid to contact a good realtor for advice. Agents love to work at finding the “right” house that encompasses the buyer’s desired amenities and yet still stays within their budget.

Buyers should be careful not to look at homes outside their comfort zone. Even though the economy is horrid, don’t think you can give a low ball offer on a 300K home when you can only afford a home for 210K. Not only are low-ball offers rejected day in and day out, but as a buyer, you suddenly fall in love with homes outside of your price range. Don’t be tempted to buy above your comfort zone. Stick to your budget. Stay focused,

Even though lenders are being fussier to whom they lend money, some are still lending higher amounts than buyer can comfortably afford. Always sit down and plan a yearly budget that includes not only normal bills such as mortgage payments, car payments, telephones, power bills., but also includes saving for car problems, health issues, education, home repairs, gas prices, vacations, etc. In almost all cases, your “comfort zone” will be much less than the amount a broker would actually lend you to buy your home.