Check range of prices when looking for first house

Q: I’m getting ready to buy my first house and I don’t really know the market or conventions right now. Is it appropriate to look a lot higher than my budget and try to get people to come down in price? Most of the houses I like are above my limit.

A: The market in the Albuquerque area has changed quite a bit in the last number of months. While some sellers might take less than asking price, it is definitely a seller’s market, which is defined by the average house selling in six months or less. The Absorption Rate — the rate at which the current inventory should sell if moving at the same rate of the last year — is roughly 3½ months, according to the Greater Albuquerque Association of Realtors. Of course, some houses sell in a few days and some take a lot longer. But if a house is priced right and has been prepared well, then there’s a good chance it might go rather quickly.

Basically, you should look at a range of houses, including those that fall in your price range. You might also look at some that are well above, but be warned, sellers might not take a lower price and might be put off by a very aggressive offer.

One strategy is to find houses that are priced higher and have been on the market for a long time at that price. If they just lowered the price, they’re not likely to come down much further for a buyer. However, if they’ve been sitting on the market and not selling, there might be some room to negotiate.

So, get out there and start looking, but be realistic and know you might have to adjust your expectations on what kind of house you will get rather than expecting sellers to lower their price to meet your budget.