Source: Crye-Leike Living

  1. Negotiate with builders — Don’t be afraid to ask builders for concessions such as steep price discounts, closing-cost waivers, luxury upgrades, free landscaping, free trips and free club memberships. Many builder-incentive packages are worth $10,000 and up!
  2. Negotiate with home sellers —Unlike the go-go market of recent years, offers of five percent to 10 percent or more under asking price will not be appropriate. As a buyer, you have more bargaining power this year.
  3. Educated timing — Read up on local, not national, market trends, religiously read for-sale ads, and get a sense of what’s moving and where. Then be prepared to jump on bargains, especially as the last of the speculators are being flushed out of the market and for-sale inventories are at their zenith.
  4. Avoid hot spots — Stay away from buying homes in neighborhoods that appreciated significantly above average home prices in recent years, especially if you’re moving for the short term. Once prices in these hot spots are corrected, these often see slower upward movement or remain flat after the overall market heads north again.
  5. Modesty if the best policy — Consider more modest homes in well-maintained, established neighborhoods. By contrast, pricing and re-pricing on expensive homes, new homes and new condos make those products riskier during down cycles.
  6. Flexibility — For maximum flexibility in pouncing on the right deal, get pre-approved for your home loan. You will know exactly what you can afford and won’t waste time looking at properties you can’t. And when you find the home that is right for you, you can make a bid immediately.
  7. Follow fundamentals —  Just because a lender will advance you money to live or build beyond your means doesn’t mean you’re standing on sound fiscal footing. Buy what you can afford.