7 Useful Real Estate Tips for 2012

Although the market bubble burst in 2007-08, experts are predicting that the U.S. real estate market will reach an all time low in 2012. The Zillow Home Price Expectations Survey reports that real estate market prices in the U.S. are expected to fall until the market's bottom is reached in late 2012 or early 2013. A steady annual growth rate of approximately 3% through 2016 is projected, which is slightly below growth rates experienced during the pre-bubble years. Overstock of home mortgages higher than their home value will continue to restrain prices and create major obstacles for sellers in 2012.

All this presents a very bleak picture for people who are thinking of buying or selling their home in 2012, in order to help you out during these tough times we present a few useful real estate tips for you to help you out make the best deal.

1. Set an Appropriate Price From The Outset

According to the National Association of Realtors, more than 50% of the owners whose homes took several months to sell in the past year, agreed to accept less than 90 percent of the asking price. So, make sure your real estate agent creates the latest comparable sales including short sales and foreclosures along with a recent summary of sales prices plus an original price list. But be careful that the information doesn't reflect the homes that failed to sell.

2. Be Flexible

Homeowners are advised to bend forward to accommodate real estate buyers. Prepare to negotiate and offer extras such as closing costs, paid property taxes, appliances, homeowner association dues, home mortgage payments and seller financing. Enlighten your agent to listen carefully to prospective home buyers' qualms about the home so that they can be adjusted accordingly and immediately.

3. Refine Your Real Estate Search through Social Media Sites

Home sellers and buyers use Facebook and other social media and online selling sites. Making YouTube videos to display homes has also made it easier to quickly link to potential buyers. Moreover, there is a huge variety of smartphone apps emerging to review real estate listings and refine searches. Make use of these searches.

4. Beware of Fraudsters

Homeowners and buyers should beware of fraudsters who target anxious homeowners with special deals that sound pretty legit. Some fraudsters try to trap you by offering loan modifications for upfront fees while others claim that they are attorneys and provide fee-based help in navigating government housing assistance programs. There are also fake investors who try to convince distressed owners to sign over their homes with quit claim deeds in return for false promises, while others will try to persuade former homeowners that they can get their homes back by making single payments. All homeowners are advised to be cautious and to never sign on blank documents to avoid getting duped.

5. Be Careful About Making Verbal Promises

It is difficult to qualify for home mortgage these days because credit records are under great inspection and lenders usually demand a 20 percent down payment. Therefore it is highly recommended to consider cash offers and reject low offers from home buyers. Moreover, real estate agents should advise home sellers to retreat from view during showings, lest they botch the deal by disclosing something unpleasant.

6. Real Estate Acquisitions Require Due Diligence

Besides financial details, disclosures and protections, you also need to keep a few other points in mind when buying a home. Hire a company to verify the tax arrearages of the house, illegal room additions and garage conversions. You should also ensure that property lines are accurate. Consider hiring a land surveyor to research the original deed, stake out the property's lines to avoid future disputes.

7. Check for a Due-Diligence Checklist

Log on to Nsopw.gov and search for neighborhood predators. It is advised to meet your neighbors and find out any gang activity, indigent lingerers and frequent loud parties to avoid unpleasant future surprises.

Selling or buying a home requires careful consideration. It is probably the biggest transition you’ll ever make. Keep the above tips in mind to make sure you grab the best real estate deal in 2012.