ATG's Attorneys Offer Five Tips to Help Homebuyers Succeed in Today's Market.

CHICAGO -- In today's turbulent housing market, real estate attorneys from Attorneys' Title Guaranty Fund (ATG) offer insights and tips to help homebuyers avoid pitfalls and take advantage of available opportunities. The lawyer-operated title insurance organization says that homebuyers considering purchasing a property for themselves or as an investment can capitalize on the current market if they are well prepared and educated.

"There's a great deal of speculation and uncertainty about our housing market, not to mention our economy," stated Peter Birnbaum, ATG's president and CEO. "But there are signs that we may be nearing the bottom, and we are starting to see real opportunities for savvy buyers."

The average price of an existing home dropped approximately 10 percent in September 2008 compared to a year ago. The National Association of Realtors (NAR) also stated in recent reports that sales of previously owned U.S. homes rose 5.5 percent in September compared to August 2008 (the biggest gain since July 2003), and that the inventory of unsold homes fell - both hopeful signs for a down housing market. And, NAR said that sales rose in September in three regions: the Midwest (4.4 percent), the South (2.2 percent) and the West (16.8 percent).

Birnbaum believes that the uptick is likely the result of savvy homebuyers and investors picking up foreclosed and distressed homes at discounted prices.

ATG says that while no one knows for sure if prices will drop further, some people simply need and are going to buy a home. Birnbaum reminds everyone that homebuyers have not become an extinct species. He explains that the best way for today's homebuyers to insulate themselves from future market uncertainty is to buy smart. He and ATG offer five key strategies.

FIVE STRATEGIES FOR BEING A SUCCESSFUL BUYER IN TODAY'S MARKET:

1. Build an effective team - When making one of life's biggest purchases, homebuyers must identify the most qualified Realtor, mortgage lender, home inspector and real estate attorney. Having an "A-team" helps to ensure success. At the core of this team should be an experienced real estate attorney. The dynamics and complexity of this market can pose serious traps for the unwary. Having a qualified advocate is critical when buying real estate.

2. Get prequalified with the most appropriate loan early - Know what you can afford and what type of loan best fits your life situation and finances. Many of today's troubled borrowers were talked into loans they couldn't afford or that had terms they did not understand. Shop for a competitive rate with a good bank or mortgage broker, and get prequalified. When a potential homeowner is prequalified, her Realtor can locate the most appropriate properties and have the buyer be taken seriously by the seller - often giving her an advantage over other buyers.

3. Explore unique buying opportunities first - Explore properties that are being sold by banks. These REO (Real Estate Owned) properties have often been acquired by the bank after a foreclosure and are often sold at a discount to market value. Buyers may also realize advantages in buying from sellers who owe more than the property is worth. These "short sale" situations require the buyer to negotiate directly with the bank. Also, sellers that need to move because of retirement, relocation or divorce may also provide unique buying opportunities in today's "buyers market."

4. Be willing to compromise - A foreclosure, short sale or property being sold by a very motivated bank/seller may not have all the amenities a homebuyer is seeking. If the deal is good enough, a buyer should be flexible and stay focused on the big picture - getting an exceptional price. However, if purchasing a short sale, be prepared for the deal to take a while. Lenders are overwhelmed with bad mortgages and these transactions can take months to complete.

5. It's a buyers market, bargain hunt and negotiate - Statistics show that the inventory of homes on the market and the time it takes to sell them (market time) are at historic highs. Chances are that most sellers are motivated and are willing to negotiate, especially if they are in a position where they have to move. Houses that have been on the market for extended periods may be exceptional values.

About Attorneys' Title Guaranty Fund, Inc.

Through its nearly 4,000 member attorneys across Illinois, southern Wisconsin and northern Indiana, ATG has presided over 2.5 million home closings and provided homebuyers with competitively priced title insurance since 1964. The only bar-related title insurance company based in Illinois, ATG has built a significant market share by providing excellent service at competitive prices. It has a financial stability rating of "A Prime Unsurpassed" from the independent ratings bureau, Demotech.