by PN Schiavone

Created on: December 04, 2008   Last Updated: March 10, 2009

The truth about the real estate market is that it will not rebound soon. In fact, we are quite likely to see the commercial side of real estate falter soon. Recently bailed out banks are not lending money. The banks are sitting on the money, keeping the credit market tight. Loans can be obtained, but only from the most credit worthy borrowers. The same banks that were too loose with the money for the last 10 years are now hoarding the money.

The amount of foreclosures on the market are rising monthly. Major companies are laying off employees at an alarming rate. Employees that are laid off find it difficult to pay the mortgage. For homeowners that have lived in their home a long time, they may be able to pay the mortgage while there resources last. This creates a domino effect and as long as the economy is shrinking there will be some homeowners that will not be able to pay the mortgage.

The good news is that a declining market will favor new entrants for home ownership. If you have been frugal and saving money, it may be the best time to buy real estate. There are plenty of good pre-foreclosures on the market. These homes are not usually highly distressed. A buyer is allowed a home inspection. This is very important. Many foreclosures are bought with only a Realtor visit. Once you put an offer in a buyer cannot re-evaluate the property. Most pre-foreclosures are bought as is. The home inspection is important as it gives the buyer the chance to buy the property knowing its condition. A buyer can even walk away from the deal if the property ends up having major problems that could not have been known with a Realtor walk-through.

If you are in the market to start looking for properties the Internet is the best place to start. You can join Realtors web-sites and browse are you leisure. One of my favorite websites is Pattis dream homes.

This site gives you a real look at the MLS in the Chicago area. You can ask a Realtor questions and get real answers from a professional that can help give referrals for competent help when buying your home. The next six months are going to be one of the best times to buy real estate for first time buyers. Long-term owners can still move in this market as all prices are declining. Any perceived money lost on your sale will be made up on your low price purchase.

If you have been in your home less than five years, selling in this market usually does not make sense. The real estate market is probably about a year away from recovery in most areas. In highly volatile markets the wait may be at least two years. If you are positioned correctly this is a great time to buy into the market. The best way to tell is to talk with a real estate professional.

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