What To Do In Our Current Market

Buy! Buy! Buy! We are still seeing several factors that point to it being an excellent time to buy. Some of the factors are low interest rates, an $8,000 tax credit for first time home buyers and good real estate deals. In addition, sellers are often willing to pay buyer’s closing costs. There are great buys in new construction where builders are sitting on inventory they need to move. Builders are often willing to pay closing costs or offer other incentives in many cases. One market segment buyers are overlooking is normal resale homes (non-distressed homes). Buyers are flocking to the distressed and lender owned properties but are sometimes finding that they are competing with multiple offers which may push the price to or above the asking price. Normal resale properties can be excellent buys, and typically do not need as much work and can close quick. Resale homes tend to be in more sustainable and healthy neighborhoods.

Need Help With A Down payment? Typically, buyers need 3.5% down to buy a home and credit scores need to be above 620 points. There are a few programs available for little or no down. Buyers can qualify for a state based down payment assistance program that loans the buyer their down payment in the form of a 2nd mortgage. All these programs require is the buyer contribute approximately a $1,000. into the transaction. If you are interested in buying a HUD lender owned property, you can purchase a HUD home for only $100 down. If you do not qualify for these programs or do not want to buy a HUD property you can receive a gift towards a down payment from family. Buyers can also use an IRA or solo 401k to buy a home. With the stock market hitting record lows, some people are looking for other options to beef up their portfolio. You can also come up with a down payment the old fashioned way by saving. Here are some tips for saving for a down payment from Broderick Perkins of RealtyTimes.com: • Set up a budget- Account for every penny you earn, every penny you save and every penny you spend, to reveal your spending habits. Get an online assist from Consumer Reports’ recommendations: Buxfer.com, Geezeo.com and Yodlee.com or a good old Excel spreadsheet will do too! • Sell, simplify and organize- Sell items that you will never use or assets that you may not use regularly. Maybe it is a car, recreational vehicle or just stuff. Organize, an organized home is a money and time saving home. • Pull your credit regularly- Look at your credit card statements for accuracy. Negotiate down your interest rate on cards or raise your deductibles on insurance such as health and auto to make your payments lower.

So, You’re Staying Put Some homeowners have decided this is not the right time for them to sell. For those homeowners, many may want to consider remodeling or updating their homes. Contractors are willing to give competitive bids for the remodeling work. With new home construction at low levels, more material and labor are available for remodeling than several years ago. This results in shorter project schedules and often lower project costs. Make sure that you hire licensed and insured contractors with references. There are also tax breaks and credits available on energy efficient appliances and improvements to your home. Some of the remodeling projects that see the best return are: Deck additions, 75% average return: Major kitchen remodel, 70% average return: Minor kitchen remodel, 74% average return: Siding replacement, 70% average return: Window replacement 75% average return.

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