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This week saw another drop in the interest rate at the Federal level.  A large number of lenders are subsequently lowering the interest rates offered to consumers.  Reputable real estate agents won't push their clients up in price or tempt them by showing them properties they can't afford.  The same applies to good mortgage lenders.  The naive buyer won't be approved for higher amounts by decent, ethical lenders.  The current requirements in underwriting will weed out many questionable loans.  BUT!!!  Will the innocent, uninformed buyer be swayed or tempted into over-spending???  Yes, lower interest rates allows some to buy slightly higher in price.  But should they?

This week's news has already brought a new wave of fence-sitting buyers to the Realtors' doors.  We've been seeing more people enter the buyer pool recently.  Good news for sellers?  Good news for those buyers?  It depends on each individual situation.

I've said this before, and I'll continue to say it:  The time MAY be right for you and it may NOT.  Enlist the help of a good mortgage counselor and a reputable Realtor.  Choose a National Brand Realtor (i.e. Coldwell Banker, Century 21, Sotheby's, etc).  Talk to the office manager about which agent to choose.  How do you feel with the office and the manager.  Then interview the agent.  Make sure they know the area, the market, and eventually you!  Be honest with the agent in what you're looking for, your financial situation, your fears and questions.  Let him/her know what you know and what you don't know.  A good agent should be able to walk you through the process.  In fact, he/she should be eager to explain everything to you.


If you're searching for an agent to SELL your property, do the same things.  Ask questions about marketing, negotiating skills, price ranges, and experience.  Look at the agent's web site.  The office/company web site.  How do their other listings look?  If you were a buyer, would you stay on the site or move on to one that's easier or has better pictures?  Remember, when you're on the site, you should consider a few things: look at the pictures for THAT company's listings.  They have no control over what other companies put out.  Ask about how much traffic they get on a monthly basis.  Do they only have their own listings or other company listings as well?

Remember that when you interview an agent...the AGENT is interviewing for a job in which you are the boss.  That does NOT mean you should direct them on what to do.  The agent is the professional.  But the agent will be accountable for results to you, the boss.

Once again....get advice from professionals who work in the real estate industry every day.  This is not the time to consult with Uncle Bob...unless he's a full-time real estate professional.