Yes, it appears that the market is slowing a bit….interest rates are increasing and that always slows down buyers. Regardless, the rates are still quite good if you have ability to lock in a 30-year fixed rate!

Buyers seem to be hesitant in making a commitment to one house over the other–taking their time to see homes and less eager to make an offer.

Perhaps this is an effect of the last six months of REOs and short sales. Once you get used to playing the field and submitting muliple offers on multiple properties, sometimes it's hard to see a "normal" sale and commit to pursuing just that one home. Which home to buy ordinarily is a multi-faceted decision of economics, suitability and emotion. But, when you deal with foreclosures it's like gambling. You learn to not get attached to any one home as the best offer gets it.

A good offer on a "normal" sale is still what I recommend in terms of making that commitment. Having the option to negotiate with the seller is a great benefit! Terms can be worked out in a matter of days or hours, rather than weeks and months!

It's hard to say. The right locations and right prices are going to sell regardless of economics and market woes. The higher-end homes are taking longer to sell. There is just less demand for $1M+ properties, and 3 to 4 months ion the market even in prime locations seems to be a fair expectation.

It's not unusual to see a slow in the rental market and real estate market around tax day, graduation season, back-to-school season, and then the holidays. Basically every three months then you'll see a wax and wane regardless of the economy.

In lower-priced markets I've seen fewer new listings this month. Some feel there will be a new wave in June of short sales and REOs. It makes sense that there may be peaks every 90 days based on the foreclosure process.

Some buyers have a misconception that in a buyer's market, low-ball offers are the way to negotiate a sale.

Ultimately, a house will sell for the market value. Therefore, looking at a listing price and automatically deciding to knock 20% off, thinking the seller is desperate to sell, is not a sure-fire way to write a successful offer.

Feeling out the reason behind the sale is key. If it's an REO, obviously the bank is selling the house to offset a loss. A short sale isn't a far cry from that. A traditional sale is the most flexible. Any number of reasons can be involved, so have your agent inquire about the seller's circumstances and motivation level.

Say your lender will allow up to $12,000 credit for non-recurring closing costs. So, to get the edge on a foreclosure property that you really like, you bump up the offer price accordingly and ask for the full $12,000 NRCC credit.

First of all, the offer price is only the offer price — the bank will look at all the terms and a $412,000 offer with $12,000K NRCC is still a $400,000 offer.

Secondly — aka the second problem — the home has to appraise. In some markets, that 3% difference is enough to cause a problem with the appraisal and make it necessary to adjust some numbers. That's one thing if you have that $12,000 in your pocket to bring in, but if you can't afford the down payment and closing costs combined, then you've shot yourself in the foot.