Depending on the economy, you may find yourself in a buyer's market in which the buyers get the best deals, or you may find yourself in a seller's market in which the sellers get the upper hand. Sometimes, you'll find yourself somewhere in between.

In a buyer's market, there are a lot of homes on the market, and they may take a while to sell. To sell a house, the seller might need to offer a really good price, plus additional incentives such as help with financing. If you're buying a home in this type of market, you can take your time looking and can usually strike a pretty good deal.

In a seller's market, houses aren't on the market for long. In fact, they may sell before they are even listed. Because the market is so strong, many owners will decide to sell their homes themselves; you'll see a lot of for-sale-by-owner (FSBO) homes. If you're selling a house in this market, you're lucky. You'll probably get many good offers and not need to offer any additional incentives. If you're buying a house in this market, you may have to work hard to find a house that you like and can make an offer on before it is sold…To get your offer accepted, you should be financially ready (prequalified). Also, don't expect to submit and have accepted a contract with a lot of contingencies.
 

Home prices may start to fall in the coming months, according to the National Association of Realtors, following a report that showed sales of existing homes fell in June and the number of homes listed for sale soared to the highest level since 1997.

Condo prices are already being hit, falling 2.1% from June last year to a median price of $226,900. Single-family homes edged up 1.1% in June to $231,500.

But with an 8-month supply of condos for sale, and a 6.8-month supply of single-family homes, sellers are under pressure and buyers have plenty of options.

These are "MUST DO NOT" things before buying (or even looking) for a home.

No Major Purchase of Any Kind:

When you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women.  It begins simply, by going out to restaurants, then accelerates to buying clothing, electronic gadgets, and since most Americans have a special fondness for the automobile, you may even buy a "brand new car."

If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home, or a move-up home, if you are already a homeowner.  Next, you contact a loan officer to get prequalified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet).  "If only you didn't have this car payment…"

Don’t Move Money Around:

When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs.  Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets.  This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.  The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits.  You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly.  To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds.  Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.  Oh…don’t change banks, either.

Should You Change Jobs?:

For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money.  For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
Think ahead.  If you're even beginning to think about a new (or move up) home this year, talk to a real estate broker first.  They can properly advise you as to how ANY purchase now, could affect your ability to get that new home you want, later.

The decision to involve an attorney in your real estate transaction depends upon your personal requirements. One of your real estate agent’s responsibilities is to advise you in the process of addressing your personal needs and helping you to achieve them.

Choosing an attorney to advise you can be an asset from the moment the first offer is made until the time of closing, or as a way to request assistance as needed throughout the process of the real estate transaction. Attorneys can assist with things such as title issues, preparation or review of the deed, counsel regarding how to take title, zoning ordinances, lien issues, and closing assistance.  Some states require using a real estate attorney, some do not.  Check with your real estate agent about your state's requirements or practices.

If you are considering a complex transaction, then you may be wondering how to go about finding the right real estate attorney for your needs. A few recommendations would be to ask your real estate agent, ask family and friends, call the local Bar Association, conduct telephone interviews, and request a written list of references.

Keep a written record of each attorney you interview, and rate each potential candidate according to their skills, effectiveness and fees. Note whether they charge a flat fee or by the hour.  The difference can be significant.

Of course, having a good real estate agent that offers assistance in those aspects of your real estate transaction is the best way to meet your legal needs. Always consult your real estate agent before making any decisions in choosing a real estate attorney.

One Month Before Moving

Obtain an IRS Change of Address form, call 1-800-829-1040 and ask for Form 3903 to help deduct Moving Expenses.

Gather moving supplies, boxes, tape, rope.
 
If moving far away, make any necessary travel arrangements like airline, hotel, and  rental car reservations. Or plan your travel route if driving.
 
Call a moving company or make truck rental reservations to move yourself.
 
Finalize real estate and apartment rental needs.
 
Place legal, medical, and insurance records in a safe and accessible place.
 
Obtain a Change of Address form to tell the Post Office of your move.
 
Give your mailers your new address:
           Friends and family members
           Banks, insurance companies, and other
                  financial institutions
           Charge card and credit card companies
           Doctors, dentists, and other service providers
           State and Federal Tax authorities and any
                  other government agencies as needed.
           IRS–see note at the top of this post.
You can do this by sending them Address Change Notification Cards or, for magazine publishers and business mailers, by following their change-of-address instructions.
 

Save moving receipts (many moving expenses are tax deductible).
 
Make maps of your new neighborhood to familiarize yourself and your family with your new area.
 
Plan your moving budget
Two Weeks Before Moving

Inform gas, electric, water, cable, local telephone and trash removal services of your move. Sign up for services at your new address.
 
Line up new cable service for your new home.
 
Inform long distance phone company of your move. Sign up for long distance service at your new address.
 
Recruit moving-day help.
 
Confirm travel reservation.
 
Arrange to close or transfer your bank account, if appropriate.
 
The Day Before Moving

Set aside moving materials like a tape measure, pocket knife, packing boxes, tape and markers.
 
Pick up rental truck.
 
Check oil and gas in your car.
 
If traveling, make sure you have tickets, charge cards, and other essentials.