Foreclosures, REO's and short sales are the headlines across America these days no matter how you get your news. However, make no mistake - as gloomy as the headlines sound, they translate into favorable news for all you home buyers.

Before you get yourself into the home buying process, arm yourself with the following strategies so that you will be able to land your ideal home at a fair price.

1. Set Realistic Expectations About the Deal You Expect

Even in tough conditions, buyers may be unable to drive the absolute best bargain in town, particularly if they are looking for a home that is well-located and in reasonable condition. Don't forget some of the media reports out there are sensationalized to sell advertising - so be realistic about what a "fair" deal is.

If you have a property to sell, you may sell for less then you anticipate but as a buyer you can make it up on the other end.

2. Be Aware of Common Bargain-Hunting Traps

"Many local markets favor home buyers, but that doesn't necessarily mean buyers are guaranteed they will be able to get a fabulous deal," says Alisha Wade of RE/MAX Achievers in Scottsdale, AZ.

Here are some common traps home buyers can fall prey to, according to Alisha.

• Buyers frequently encounter sellers that still have the mindset they are selling during the heyday of a few years ago. Sellers often, as Realtors® say, "chase the market". This means they simply have unrealistic expectations about the value of their home given current market conditions and set a list price way too high.
• If a buyer submits a "low ball" offer, a seller will often view such a low offer as an insult. The seller is likely to counter-offer at full price, and negotiations are stalled right out of the gate. The potential buyer may lose the opportunity to purchase what would otherwise be a really good house for them.
• Bidding on a short sale is no guarantee of a good deal. The banks hold the cards and many times a potential buyer will find themselves in a bidding war along with other buyers in a multiple-offer situation. That, combined with an often protracted negotiating period, can frustrate even the most patient buyer.
• Bidding on a foreclosure has its own set of problems. If you elect to go the foreclosure route, beware it is an "as is" sale. Do all the inspections and work with a full-time agent who knows how to navigate the foreclosure market.

3. Consider Hiring a Professional Realtor®

Why hire a professional real estate agent as a home buyer? A buyer's agent has the buyer's best interest at heart. After all, your agent expects to sell the house again when you move in a few years. It's good business for your real estate agent to get the very best value for you on the property.

Your agent also wants to make sure you get a good product. That's why most real estate agents and brokers have spent years putting a team of professionals together, including inspectors, lenders, title and escrow services, and other vendors who can deliver great service to you. You'll have access to those vendor services through your agent.

Jumping into the real estate market as a first-time buyer (or even a repeat buyer) can create fear in the best of us. The fear is more in the unknown of the process than anything. "Working with a Realtor® can help allay normal fears about the home buying process," says Alisha Wade, who has many years of experience with home buyers.

Most people only purchase a few properties over the course of a lifetime. The process - combined with the fact that a home purchase is one of the largest investments anyone will make over the course of a lifetime - can be intimidating.

4. Look for Winning Characteristics of Successful Agents

• Hire a full-service broker and follow their advice. A good agent will spend time educating you on the realities of the market and the home buying process.
• Look for a "hands on" real estate agent who is available 24/7 and is responsive to your requests.
• Confirm your agent will review in detail all documents from the purchase offer contract, to the inspection reports, to the closing with you in detail.
• Look for a Realtor® with designations and certifications. Designations indicate the buyer can be confident their agent is knowledgeable and well-educated in industry best practices.
• Seek out an agent who will listen carefully to your home buying needs and will only show you properties that meet your criteria.
• Be sure your agent will attend the signings with you. Problems sometimes crop up at closing and having your agent present may help head off last minute glitches.

5. Avoid Common Mistakes Made Hiring an Agent

Here are some common mistakes to look for and avoid when hiring a real estate agent.

• Don't hire a part-time or inexperienced agent. Experience counts selling real estate. Look for agents who are seasoned, full-time Realtors®.
• Refrain from listening entirely to recommendations of family and friends. Put your faith in the professionals who are experts in the business.
• Don't let someone else do your research. You know best the personality of business people you like to work with, and real estate is no different.

Selection of your agent is a critical part of the process for you to buy and close on your dream home. Getting connected with the right real estate agent bodes well for a successful home purchase.

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