Get Out Of Debt

Get of debt today! It sounds a bit like a late-night infomercial, but the truth is that a debt-free lifestyle can be within reach for you and your family.

Reducing your debt-load can be the next, and biggest step, towards owning a home of your own. This is because you must have a strong credit score to buy in today's market and a strong credit score comes from healthy spending habits and low debt ratio.

Credit used to be something different than it is today. Some reports show that the volume of consumer loans more than doubled in from 1990 to 2000. Changes in credit were happening long before this decade, though. People used to buy only what they had the cash to use. Times have changed.

Students today graduate with an average of $25,000 in student loans. That is a staggering amount consider the current rate of unemployment.

The average American carries $10,700 in credit card debt (CNNMoney) and $59,000 in total household debt.

That's a lot of debt.

When the 2009 recession hit there was a resurgence of Americans paying off debts and funneling money into savings accounts. The U.S. savings rate was on the rise. This showed that American could tighten those purse strings when push came to shove.

While there are many families that are truly struggling to make ends meet and who seek out lines of credit to keep food on the table or the lights turned on, there is a large percentage of Americans that simply swipe the plastic and live on a margin.

Are you guilty of living past your means when you could instead be working towards a debt-free lifestyle and the dream of homeownership?

Homeownership is a great way to create long-term wealth and stability for your family. Today's buyers, however, need to have healthy credit scores (less debt) and of course at least 20 percent cash to put down. Let's get you started toward that dream.

The first order of business is to take an honest look at all of your debts and monthly expenses. Compare this to your monthly household income. Are you spending more than you make? Then it's time for a real intervention.

After you've taken a good, hard look at your finances, it's time to rethink your spending. Start by paying off the highest interest loans and credit cards first. Don't fall into the trap of making minimum payments. Write out a budget of your monthly must haves: rent, groceries, gas, tuition, and utilities. Then use the extra funds to invigorate pay off debt in big, healthy chunks.

It'll be an adjustment at first, but then your new spending ways will become habit. Find alternatives to your favorite activities and nip shopping addictions in the bud. It's time to switch up your priorities. It's not all about having fun. Sometimes we need to be responsible adults and pay off debt before we take vacations, buy new clothes, or buy new cars. Learn to appreciate what you have, stay away from buying what you don't need, and to keep your goals in mind. Homeownership is a very worthy goal. Make budgeting and paying off debt your top priority and you'll reach that goal!


Written by Carla Hill
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The List Of Improving Housing Markets Is Increasing

If you've been keeping a list, then, just like Santa, you'd better check it twice–not for who's naughty or nice–but rather which real estate markets are improving. According to the National Association of Home Builders (NAHB), "the number of improving housing markets across the country rose to 99 in September."

The data comes from NAHB's First American Improving Markets Index (IMI), released just this month. The figure is up from last month when there were only 80 metro areas on the list. Over six consecutive months, the Index looks at three categories: housing permits, employment, and house prices, to see how much they have improved from previous dips. The most recent IMI shows metro areas from 33 states as well as the District of Columbia.

The growth spurt is, obviously, good news to Barry Rutenber, chairman of NAHB and a Gainesville, Florida home builder. "This solid growth is an encouraging sign that housing continues on a slow but steady recovery path that is gradually advancing from one local market to the next."

NAHB reported that the list grew, overall, by 19. Retaining their spots on the current list were 68 metro areas. An additional 31 new metros were added, while only 12 dropped off.

"More metros across the country are experiencing a sustained uptick in house prices, employment and new building activity as rising consumer confidence in local market conditions pushes more people to consider a new-home purchase," stated NAHB Chief Economist David Crowe in a news release. The downside, according to Crowe, is the "overly tight lending conditions" which are slowing the pace for both builders and buyers.

Still, the NAHB reports that this is a positive sign. The IMI nationally tracks housing markets that are showing signs of improving economic health. In order to get a ranking on the top improving Metropolitan Statistical Areas, the index measures three sets of independent monthly data. Indicators analyzed are from the following areas and sources: employment growth (Bureau of Labor Statistics), home price appreciation (Freddie Mac) and single-family housing permit growth (U.S. Census Bureau). For a Metropolitan area to rank on the IMI, NAHB requires data to confirm improvements in all three measures for a period of at least six months following those measures' respective lows.

On the most current IMI, there are diverse geographical locations including: Tucson, Arizona; Jacksonville, Florida; Springfield, Illinois; Greenville, North Carolina; and Bend, Oregon.

This report will likely be touted as an indication that the housing market is, indeed, rebounding. What does that mean for sellers? It could mean perfect timing. The end of the year is nearing and many sellers are hoping to close escrow before 2012 wraps up. Seeing metro areas across the country improving may be the fuel needed to accelerate the process for the once hesitant and wary buyer.

If your home is on the market, check the full list of 99 improving housing markets on NAHB.org. If your metro area is listed, capitalize on the good news and be sure to have print materials with the information available for your potential buyers.


Written by Phoebe Chongchua
September 14, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Favorable Mortgage Rates Help Housing Market Confidence

While conditions continue to show signs of improvement, favorable mortgage rates are helping housing market confidence amongst consumers. According to Fannie Mae's National Housing Survey for August, 35% of survey participants expect home prices to rise over the next year. Consumer attitudes, while stabilized, increased from August 2011.

This study involved attitudes towards owning a home, renting a home, mortgage rates, the economy and personal finances. When asked about mortgage rates, 40% of consumers expect higher rates are too good to last and will rise within the next 12 months. The National Association of Home Builders/First American Improving Market Index reported that a net total of 19 housing markets were added to the list.

To be included in the Improving Markets Index 3 increases must take place: the number of housing permits, employment and home price appreciation. According to CoreLogic, a mortgage and research analytics firm, home prices for July rose 3.8% above last year and is the largest annual gain in six years. Housing affordability continues to be high as low mortgage rates have continued and housing prices are still below their peak reached several years ago.

FreeRateUpdate.com's survey of wholesale and direct lenders shows that mortgage rates stayed firm this past week with 30 year fixed mortgage rates at 3.375%, 15 year fixed mortgage rates at 2.750% and 5/1 adjustable mortgage rates at 2.125%, available with 0.7 to 1% origination fee provided borrowers have good credit. Home purchase loans and traditional mortgage refinances require full documentation for employment, income and credit, all of which will be verified by the lender. HARP is a non-traditional mortgage refinance for borrowers who have loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009.

While loan to values for HARP have a minimum of 80%, updates to the program with HARP 2.0 eliminated maximum loan to value caps. Although GSE guidelines for HARP do not require an appraisal, lenders may have overlays that eliminate some borrowers from receiving approval. Since guidelines differ for each lender, borrowers are encouraged to keep seeking a HARP refinance even if they have been denied. For more information about HARP, an online inquiry can be obtained without revealing detailed personal information.

For the past week, FHA 30 year fixed mortgage rates are at 3.125%, FHA 15 year fixed mortgage rates are at 2.625% and FHA 5/1 adjustable mortgage rates are at 2.625%, all remaining steady. FHA still attracts first time home buyers who want lower down payments and easier credit qualifying guidelines. Since many locations offer housing grants or loans through state or local agencies, qualified borrowers can receive additional help for the required down payment. Often, seller concessions can be put toward the FHA closing costs (APR) which tend to be high due to various FHA fees and the upfront mortgage insurance premium. At this time, the FHA streamline refinance with no cash out is very popular since it offers reduced upfront and annual mortgage insurance premiums for borrowers who have loans that were endorsed prior to June 1, 2009. This program does not require an appraisal or other documentation, but requires that borrowers have a good history of mortgage payments. Borrowers can find out more about FHA mortgages by submitting the online form which sends a response almost instantly.

Keeping in line, jumbo mortgage rates were firm over the past week with jumbo 30 year fixed mortgage rates at 4.250%, jumbo 15 year fixed mortgage rates at 3.125% and jumbo 5/1 adjustable mortgage rates at 2.250%, all available with 0.7 to 1% origination fee for borrowers who have a history of excellent credit. While jumbo mortgage guidelines may be stricter, the documentation required is generally the same as that which is needed for conforming mortgages. Higher down payments and additional months of reserves are normally necessary and, therefore, require that borrowers have substantial assets. Since these are private loans held by the lender, jumbo mortgages are considered risky. On the other hand, they are also profitable for lenders who offer them. As more lenders enter the jumbo mortgage market, borrowers will find that the competition may lead to more flexibility with guidelines and approval and are advised to shop around for the best jumbo mortgage rates and terms available.

Last week, markets became more volatile than has been seen recently. MBS prices (mortgage backed securities), which move mortgage rates in the opposite direction, had a few severe swings in both directions which left average mortgage rates still. Investors are now waiting for the Fed's to take further action with a QE3 plan, possibly this week. The Labor Department reported that only 96,000 jobs were added in August although the unemployment rate fell to 8.1% due to the number of people leaving the work force. The labor force participation rate fell to its lowest level seen sine 1981. Unemployment applications fell by 12,000 for the previous week while productivity increased at a 2.2% annual rate. The big market mover was when the European Central Bank announced a new plan to purchase bonds in Europe in order to contain the Euro zone crisis and prevent a financial collapse.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Written by Ed Ferrara
September 14, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Picture This House: Why Photos Sell Your Home

As we head into fall, the change in seasons brings about a feeling of concern for some sellers. They fear that their home won't be looked at as much or, worse, won't sell.

Yes, it's true that many buyers, especially those with children, like to be settled into their new home before the school year starts. However, that doesn't mean it's too late for your home to sell.

Stepping up the marketing and generating the right kind of buzz can keep the visits to your home high and create interest in some high traffic places such as social media outlets that can help lure potential buyers in.

We all know the adage, "A picture is worth a thousand words". Well, when it comes to real estate, homes with high-quality pictures are about 60 percent more viewed than those advertised without photos. I'd say that poor photos would also lessen the chance that your home is viewed and/or visited.

This simply makes sense when you think about where most people start to shop for a home--online. Simply having text copy that describes the home, no matter how well written it is, doesn't do what photos and video can do.

Having your home professionally photographed is worth the time and money. If the photographer knows his/her trade well, the photos will "WOW" viewers. Even better, if a video accompanies the photos, you can place both on social media sites. Through the video, you can tell a powerful story. The agent or the homeowner can share compelling information about what makes this home unique.

In a video, you don't want to be emotional, rather, you want to share why this home fits the audience you are targeting. That means you need to know your audience. The same goes for the photo.

At the heart of your marketing should be images that tell a story in photos that convey why this home is a "must-have". Of course, searching for a home is still ultimately based on these parameters (which are usually entered-into a search engine): price, location, square footage, number of bathrooms and bedrooms, pool, etc. Once those parameters have been met and a filtered list of homes is shown, then it comes down to the photos and videos. Potential buyers don't want to waste their time physically driving to homes that aren't what they are looking for. So the better quality the photos, the better results in sales.

What makes quality photos? Good lighting, interesting angles, non-cluttered rooms, color, depth (size of room space), and overall exceptional quality of the image and video. That means the ISO, can't be too high or you'll experience a lot of "noise" (dark areas) in the photo. Raising the electronic gain too much on the video camera can make the video quality poor.

Unless, you're an excellent or pro photographer/videographer, don't attempt to photograph your home yourself. These photos are vital to the sale of your home. They're the marketing materials that will enhance the copy that's written about your home. And, again, the video and photos are often the enticement to actually get potential buyers in the door to make an offer.

Prepare for the professional photographers and videographers. Before your photo experts arrive, be sure to make a list of suggested angles and areas to shoot. Think about where you have your morning coffee. Is it outside on the deck overlooking an amazing sunrise? If so, even though that isn't specifically a photo of the home, it's a photo that tells a story about the home–be sure to have the sunrise photographed. The message in the photo and video will tell a story about the kind of experience buyers will have in this home when they buy it. And, that is definitely worth a thousand words.


Written by Phoebe Chongchua
September 7, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Home Prices Rebounding With Low Mortgage Rates

Over the course of several months, home prices in many markets have been rebounding with the consistent level of low mortgage rates. The National Association of Realtors data has shown five consecutive months of home price increases through July 2012. This past week, the S&P/Case-Shiller National Home Price Index showed a 1.2% increase during the second quarter of this year. It is obvious that the housing market is recovering at a modest but steady pace as mortgage rates continue to remain affordable, as well as, attractive.

FreeRateUpdate.com's survey of wholesale and direct lenders shows that mortgage rates remained firm this past week with 30 year fixed mortgage rates at 3.375%, 15 year fixed mortgage rates at 2.750% and 5/1 adjustable mortgage rates at 2.125%, all available with 0.7 to 1% origination fee for borrowers who have maintained a record of good credit.

Lending guidelines remain strict for home purchase loans and traditional mortgage refinances. Borrowers must qualify per employment, income and asset requirements and need to provide documentation as proof. After examining and verifying the information in the loan file, lenders often request additional information in order to make their decision for an approval or denial.

The Home Affordable Refinance Program, HARP, is available through the end of 2013 for underwater borrowers who have loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009. With the removal of loan to value caps, loans above 125% LTV have been increasing since June when it became possible for lenders to securitize these loans.

However, many lenders still have strict overlays on HARP which has made it difficult for many borrowers to refinance. HARP requirements and mortgage rates differ from lender to lender and require borrowers to actively seek which one will give them an approval and the best deal. The fastest results can be obtained with an online inquiry where lenders are willing and available to assist borrowers who receive a response within minutes and without the need of a social security number.

The FHA streamline refinance is, in many ways, the FHA version of HARP. This refinance is available for all FHA borrowers and, with no cash out, does not require an appraisal or other documentation. This works well especially for underwater borrowers or those who have a deduction in income. Now, for borrowers who have FHA loans that were endorsed prior to June 1, 2009, the FHA streamline has a reduced upfront mortgage insurance premium of .01% and annual mortgage insurance premium of .55%.

This reduction was done to entice more borrowers to obtain an FHA streamline at today's low, affordable mortgage rates, thus reducing the cost of homeownership in order to prevent further foreclosures or defaults. Current FHA 30 year fixed mortgage rates are at 3.125%, FHA 15 year fixed mortgage rates are at 2.625% and FHA 5/1 adjustable mortgage rates are at 2.625%. FHA still offers several mortgage purchase programs that have low down payment requirements, easier credit qualifying and all the long standing benefits that FHA mortgages have had in place for years.

Although FHA closing costs (APR) are high because of various FHA fees and the upfront front mortgage insurance premium, FHA allows borrowers to add this amount to the mortgage loan or use seller concessions in accordance with guidelines. FHA mortgages can be easily obtained through an online inquiry where approved FHA lenders are available to help borrowers obtain their goals.

Current jumbo mortgage rates also remained stable this week with jumbo 30 year fixed mortgage rates at 4.250%, jumbo 15 year fixed mortgage rates at 3.125% and jumbo 5/1 adjustable mortgage rates at 2.250%. Borrowers are required to have excellent credit in order to receive these low jumbo mortgage rates with 0.7 to 1% origination fee. Jumbo mortgages are necessary in higher cost areas where the price of property exceeds the loan limits of conforming and FHA mortgages. Often, guidelines can be strict and require substantial funds for larger down payment and reserve requirements.

Without a secondary market since the housing crisis, lenders generally keep these loans within their own portfolio. Even though it is considered risky, many lenders are re-entering the jumbo loan market because it is also profitable. This move is increasing competition which is making some lenders offer flexibility with guidelines. Borrowers who are in need of jumbo mortgages should shop around for the lowest jumbo mortgage rates and best deal being offered.

Towards the end of last week, MBS prices (mortgage backed securities) started to increase which is good for mortgage rates. Mortgage rates depend on MBS prices and move in the opposite direction. Some data released was not favorable with investors. The Commerce Department reported that demand for U.S. goods fell 3.4% in July which was the most in eight months. The Conference Board's Index indicated a decline to 60.6 in August which is the biggest drop since October and below expectations.

Jobless claims were flat and Chicago PCE Manufacturing came in below expectations at 53.0. The Commerce Department reported that consumer spending rose 0.4% in July, second quarter GDP was revised higher to 1.7% and new orders for manufactured goods increased 2.8% in July. The biggest event last week was Fed Chief Bernanke's speech which indicated possible further monetary easing to boost the economy which investors are now anticipating to see happen at the Fed meeting which starts September 12th.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.


Written by Ed Ferrara
September 6, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Your Home-buying Strategy

Buying a home is both exciting and sometimes stressful...whether you're a first-time homebuyer or an expert at it. The key to reducing the stress and successfully finding the home that matches your wants, needs, and budget is to have a home-buying strategy.

A home-buying strategy serves to keep you focused, in line with your goals, and on financial track. It can function much like a marketing strategy does for a company. It contains the important tasks, outlines your objectives in buying a home, your must-haves in a home, your financial budget, your move-in timeframe, location, desires, and more.

It may sound like a lot of work but if you take the time to put together a home-buying strategy and then share it with your real estate agent, you'll find that the clear goals you have will bring you closer to finding exactly what you're looking for and, likely, in a shorter period of time.

Putting together your home-buying strategy: In previous columns, I've written about getting organized for your move by organizing a binder that holds your vital paperwork and any materials that you'll immediately need during the moving process.

Organizing your home-buying strategy works in a similar way. You'll start by taking inventory of the home you currently live in. This gives you the opportunity to note both the pros and cons. Write it all down. Then write down your must-haves, would-love-to-haves, and absolutely-nots. You can write a list on notebook paper and place it in a three-ring binder and share it with your agent. In today's digital era there are many highly useful tools and apps to help you with house hunting. The creative and social website, pinterest.com is wonderful for saving website links and photos to various boards that you organize in categories. Even if you keep digital files, also keep the binder handy as your agent will give you lots of paperwork and having it all in one place will be a big relief when it comes time to find a particular document.

Seek out financing. Do this before you start to physically go out and look for homes. Sure, seeing lots of different homes can be fun (for some people) but seeing homes that you don't qualify for is a lesson in frustration for all. Be realistic and be informed by getting the information you need from a mortgage broker who can get you pre-qualified.

Create categories in your binder. Separate sections with tabs and label them things like: budget, favorites, neighborhood, comps. This is where you will place the notes you take during your house hunting. The "budget" section clearly has the defined price point that you are comfortable with. Surprisingly, some buyers start their shopping without giving careful consideration to this and they wind up frustrated because they're not certain how much home they can afford. The "budget" section also includes other expenses that go along with owning a home such as amount of savings for household repairs and, perhaps, new home furnishings.

Bring along a small camera, video recorder or your smartphone to capture your own quick snapshots that you can print out and put in the "favorites" section of your binder. For the "neighborhood" section, be sure to take a few photos of parks or other areas in the community that make this neighborhood and location a good potential match. Again, there are apps that can also do this on your computer but I find both the use of a physical binder and digital tools to be the most effective. Sometimes you just need to see and hold the photo or papers in your hand.

In the "comps" section, you'll place the comps that you receive from your agent. Sometimes buyers will toss this information away thinking they'll remember the details. However, it's best to keep any comps you receive to review it again later when you're making your ultimate choice. Yes, there is lots of paperwork but it serves a good purpose.

Having all that paperwork and your digital apps at your finger tips will provide you with a solid and effective home-buying strategy that allows you to focus on finding the home you're looking for rather than searching for papers and photos you've misplaced. Also, later when you're contemplating, referencing the photos and notes that you've taken will help tip the scale and help you choose the home that's right for you.


Written by Phoebe Chongchua
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Searching For Your New Home

You want a home. There are houses for sale. How hard can it be to find the right fit? For anyone who has house hunted before, you know the answer. It can be a time-consuming and difficult process if you don't know where to start.

In order to get started in the right direction, it's paramount that you have a good idea for what you're looking. Make a wish list that includes everything from your neighborhood preferences and budget to housing amenities.

"What if I don't know what I want?" you ask. There are buyers out there that just aren't sure if they're in the market for a condo or a single-family home. They don't know if they want to be near downtown or out in the 'burbs. If this sounds like you, then your agent can be a big help.

They can show you a few different options, explaining the pros and cons of each. Hopefully, this preview session will help you make a firm decision on the direction you're headed.

Next, learn how to navigate your local MLS. In today's technology age, it's all about previewing a house online before you take the time to go on a showing. Just because a house meets the criteria you've set forth for your agent doesn't mean it's a house you'll want to see in person.

Realtor.com is a good place to start. They display all the listings for your area, searchable by bedrooms, square foots, bathrooms, zip codes, price range, and more.

Has your agent sent you listing info containing an MLS (Multiple Listing Service) number? You should be able to input that number on the MLS website to take you directly to that particular listing.

Better yet, have your agent sign you up for daily or weekly email updates. They can send you links to newly listed homes that fit within your given wish list criteria.

Finally, have an open mind. Some houses look stellar on paper (online). They appear to be your dream home. Once you see them in person, however, they simply don't measure up.

The opposite can be true for houses as well. A house may look shabby and run-down online (perhaps due to bad photos or bad decorating), but in person you realize the neighborhood is perfect and the house sturdy. All it needs are some cosmetic fixes.

Don't keep second guessing yourself. If from the beginning you have a solid plan on what you want, you'll be more likely to make a decisive move when the time comes. Waiting too long could mean losing out on a home you really want.

Being realistic about your wants and budget is a good way to make the house hunting process a whole lot smoother. Keep in mind that there may not be theperfect home, but there will be a home that is right for you.


Written by Carla Hill
August 29, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

What Do You Buy When Nothing is Perfect?

How do you decide what to buy - whether to buy - when nothing's perfect?

Today's "dream home" emphasis on buying real estate makes it tough for buyers whose wish list and budget do not match. If you have designer tastes and a fixer-upper budget, should you buy now, or wait until you can afford more?

That question is simple to ask. Buyers should always ask and answer this question before they start the dream home search. The problem is that this simple question has a very complex answer which is all about you. I've been answering it by raising relevant issues and topics in the 600 plus articles written for this column, "Decisions & Communities," and I can always see more considerations…and more articles to write.

The real answer: Only you know what to buy and if you should buy.

To prepare yourself and your partner to answer this question with foresight - not wish you had in hind sight - there are strategies to consider:

When prices are going up, strategize.

The urgency to jump into the market before real estate is financially out of reach, must be weighed against the reality that prices often reverse themselves at some stage. Decisions regarding this financial concern should include considerations like the following:

• The "what goes up, must come down" pattern is no longer true for all neighbourhoods, particularly choice urban and recreational locations.
• Factor in the cost of where you'll live while you wait, and how you'll stay ahead of inflation. Calculate how to realistically save more money toward the purchase.
• Create a Plan B in case prices do not come down when you want them to.

Set a budget that expands real estate choices.

Making sure you "tick off" all the items on your wish list, but don't end up "house rich, cash poor" can be a challenge. Get tough, to get ahead: Before you view any houses or condominiums, put your financial ducks in a row, so nothing will get in the way of negotiating a deal when you find "it":

• Get your credit in order. You can check your credit rating with the main credit companies for free. Correct errors, and there will be errors, since no one cares about the accuracy of this record but you. You know about paying off credit cards and any debt you can to achieve top borrowing power, so do it.
• Search out a mortgage broker experienced at maximizing borrowing power while minimizing borrowing costs. Time spent here will save you thousands over the years ahead.
• Make sure you know why you "must have" the "must haves." Often fads and trends influence this list. Concentrate on buying what's going to be in and what can be inexpensively up-dated to follow new trends, rather than paying for renovations that are already fading from fashion. Pare the "must have" list down to "absolutely must haves" - a very short list which will probably include a specific location. With fewer limiting criteria, you'll have more possibilities to choose from. Then, create a "value" list of features and benefits that will add value through expanded use, income potential, cost reduction, or other factors of relevance to you. Keep track of these details when viewing, so comparisons can be accurate.
• Create a budget to cover all the costs of buying and expenses of ownership in the first year. A real estate professional will know how to crunch these numbers so you're clear on how much cash you'll need on closing to cover legal fees, adjusted costs like property taxes, and expenses heating, and utilities for the upcoming year. Provide your buying agent with a list of ownership costs you want to know for each property, so you can determine value and, eventually, use these figures to decide on an offer price.

Adapt to buy

If you walk into a house or condominium unit and feel you're home, put in an offer. If you don't have this immediate "dream home" reaction, you may still discover this is an ideal property for your needs, and a great investment.

• By totalling up "value" features and benefits, you will find real estate to love, and transform into a dream. Make enough profit on this real estate, and you can afford a true dream home on your next buy.
• Buy the best location you can afford. Ideally, the least house on the best street within your budget for the greatest appreciation in value over the shortest time. The same is true for condos, a lesser unit in the best condo, in the best location you can afford.
• Place the greatest weight on features and benefits that cannot be changed like location, including sun orientation, and things that are expensive to change like square footage. Look for bad decor and sloppy housekeeping since these can reduce the number of interested buyers and keep the price down. Be aware of superficial "staging" and its stripped down approach that makes rooms look larger and everything look newer.
• Buy the neighbourhood first. Decide on who you're going to live with and where you'll spend your time shopping. School and workplace issues are important. Find out what redevelopment is planned for the area. Many lovely neighbourhood shopping areas are threatened by "big box" development.

Discovering your dream home can be expensive. If you get emotionally attached to the real estate before you own it, you can lose your negotiating toughness and spend more than necessary. This can also lead to drastic overspending reactions if there are multiple offers.

Pay as little as possible, but remember that there are other cost factors to build into the offer including closing date, what is included in the price, and what the owner will pay for (survey, repairs, taxes, etc.). Make sure you have a thorough home inspection to reveal even deliberately-hidden problems with wiring, plumbing, and other expensive to repair elements.

Concentrate on the dream of home ownership, rather than the cosmetic "staged" appeal of a particular house or condominium, and you won't have your dream turn into an expensive nightmare.


Written by PJ Wade
August 21, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Confident Home Buying: Is This The House For Me?

Buying a house is likely the single largest investment you'll make and, like a good marriage, if it's the right one, it may last a lifetime. But how can you be confident in your home buying, especially if you're a first-time buyer? With so many homes to choose from, how do you know if this house is the one?

Sounds like a dating question. And, coincidentally, using some of the same techniques used to determine if you're marrying the right person may also help you decide which home is the best for your needs. These days more buyers are coupling up–-buying homes together (even if they're not in a relationship) to offset the cost and be able to afford more.

You've heard of buyers' remorse and you know you sure don't want it. Sometimes fearing buyers' remorse can actually lead to buyers' inactivity. They become afraid and so they do nothing. They shop, they see, they even put offers in but in the end, they don't close. If you're a serious buyer, you don't want to get stuck in a cycle of looking and never owning.

So, how can you be confident that the home you're buying will meet your needs? Start with some basic guidelines. Make a list of your must-haves, needs, and wants. These are truly three different categories. Yes, some things you list may overlap but after your list is started, you'll begin to see what really matters to you. Sometimes buyers will be shopping for a home with a pool, but when they finally make a list they realize that money is very tight and the added cost of heating a pool will be too much of a drain. So they revise their home-buying desires and start house-hunting all over again. It would've been far more effective to have considered this from the start.

Next, study the home or apartment that you're currently living in. What are the positive aspects of it? Are there things about the place you live in now that you absolutely can't stand? Taking stock of what is working and what isn't in your current home provides a good blueprint for the things you should consider when searching for your next home. Remember to be honest. Sometimes we tend to forget the bad things about a home due to its sentimental value. If you look at your current home with a critical eye, you'll know which areas caused a big headache and then you can be sure you don't buy another with the same problem.

For instance, maybe the home needs a lot of fixing up and you and your spouse barely survived the remodel without tearing each other apart. You might then want to search for homes in much better condition to limit the fixing up. Our minds have a wonderful way of forgetting the bad, once the bad is over. But, trust me, you'll remember once you're back in the same scenario again.

Do your homework and get everyone's feedback. Unless you're buying a home alone, you should spend time meeting with those who will be living in the home to discuss what's important. Sounds obvious...yes, but guess what? A lot of times Buyer One and Buyer Two don't even talk about what's really important to each other until they start searching for homes. Then they realize how truly different their views and expectations are and see the necessity to compromise a little. Time is better spent reviewing and discussing first. That way, an agent can make sure the properties being shown are in line with everyone's desires.

Finally, plan ahead. Especially if you're moving a family or you're moving in with someone else. Use a synchronized calendar, like Google, to help map out all the meetings and showings. There will be lots of important meetings to attend and if you can't get the necessary buyers there, the process will be stalled. Without the necessary buyers present, you can't be confident the home will satisfy. Plan. Schedule. Commit. This will assure that the home-buying process will be a success.


Written by Phoebe Chongchua
August 17, 2012

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Home Builder Confidence Improves as Mortgage Rates Stay Low

As mortgage rates have continued to stay low, builders' confidence has improved for the fourth consecutive month in August according to the National Association of Home Builders/Wells Fargo Housing Market Index. Increasing 2 points to 37, the index is at its highest level since February, 2007. This report is a survey of builders' outlook for single family homes sales and expectations of sales for the next six months.

In addition to this index, Building Permits increased 6.8% as reported by the U.S. Census Bureau and Department of Housing and Urban Development and was at the highest level since August, 2008. Numbers going forward are looking positive for builders with the real estate market showing signs of recovery and affordability even though it still remains fragile.

This past week, FreeRateUpdate.com's survey of wholesale and direct lenders shows that mortgage rates remained steady with 30 year fixed mortgage rates at 3.375%, 15 year fixed mortgage rates at 2.750% and 5/1 adjustable mortgage rates at 2.125%, all available with 0.7 to 1% origination fee. To obtain these low mortgage rates, borrowers must have good credit and the qualifications needed for approval. Home purchase loans and regular mortgage refinances require documentation and verification of employment, income and assets.

On the other hand, HARP (Home Affordable Refinance Program) offers underwater borrowers the chance to refinance without the need of an appraisal or other documents. Eligibility requires that the borrower have a mortgage that was sold to Fannie Mae or Freddie Mac prior to June 1, 2009. HARP mortgages have been on the increase since the expansion of the program that includes all underwater mortgages with the removal of loan to value caps. While some borrowers may find obtaining HARP difficult, this should not be the case. All borrowers can inquire online about HARP where there are numerous lenders available to accommodate all types of circumstances.

With FHA still offering low down payments and easier credit qualifying, there remains continued concern with their exposure to risk and rates of foreclosures. Nevertheless, FHA loans remain a major player in the mortgage industry and continues to have low mortgage rates and favorable refinancing options. Current FHA 30 year fixed mortgage rates are at 3.125%, FHA 15 year fixed mortgage rates are at 2.625% and FHA 5/1 adjustable mortgage rates are at 2.625%. To assist the insurance fund, FHA does have high closing costs (APR) due to the upfront mortgage insurance premium and other FHA fees, but borrowers will find that these can often be added to the loan amount.

For home purchase loans, seller concessions will sometimes cover the bulk of these fees. Despite any negativity, FHA's latest offer is the FHA streamline refinance with no cash out for borrowers who have loans that were endorsed prior to June 1, 2009. Without an appraisal or other documentation, eligible borrowers can refinance quickly to the low FHA mortgage rates being offered at this time. Volume for the FHA streamline has been high enough for lenders to turn away any borrower who is not already a customer. With a larger number of FHA approved lenders available, online inquiries have become a popular way to obtain this FHA refinance.

Jumbo 30 year fixed mortgage rates increased by .125% this past week and are now at 4.250%. Jumbo 15 year fixed mortgage rates are at 3.125% and 5/1 adjustable mortgage rates are at 2.250%. Excellent credit is required in order to receive these low jumbo mortgage rates with 0.7 to 1% origination fee. These loans require full documentation for employment and income for both outside employment or self employed.

Asset statements must show enough available funds for the higher down payment and additional month of reserves that are required. Jumbo mortgages are becoming more competitive as more lenders are entering this market. While these loans are considered risky, they are also profitable for lenders who usually keep them within their portfolio. With more lender product offerings for jumbo mortgages, borrowers may find there is more flexibility when considering an approval. Obtaining lender requirements and mortgage rates in advance will help borrowers find the best deal when shopping for a jumbo loan.

Mortgage rates were at risk of rising most of last week as MBS prices fell after better than expected economic data was reported. MBS prices affect mortgage rates which move in the opposite direction. The preliminary August index for Consumer Sentiment rose to 73.6 which was the highest level since May according to the Thomson Reuters/University of Michigan report. U.S. leading economic indicators rose 0.4% in July according to the Conference Board.

The Consumer Price Index was flat for July while Core CPI, minus food and energy, was up 0.1%. Industrial Production for July increased 0.6% and the August Empire state dropped to -5.9 (the first time below zero since October, 2011). The big news was Retail Sales for July which rose 0.8% which was much better than expected. July PPI rose 0.3% and Core PPI increased 0.4%. Adding to this, data from Europe was better than expected with increased GDP data from Germany and France which sent investors back to risky assets and the stock market higher.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.


Written by Ed Ferrara
August 22, 2012

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Buyers: Making the Right Choice

There are so many different homes to choose from during the buying process. How can you be sure to make the right choice?

From condos, downtown neighborhoods, suburbs, and country homes, there's a perfect fit for every buyer.

To make the best decision you need to be sure to really give time to your decision making process. Yes, your gut can take you in the right direction, but don't be one of the many buyers that falls prey to listening only to their hearts, ending up biting off more than they can chew.

Some homes take more work than others. This goes double for older homes. The same can be said for many foreclosed houses. The price tag might be appealing or you might love the styling of the home, but keep in mind that much of a home's value is actually in its condition.

This is why it is imperative to have an inspection done on any home you are considering buying. Additionally, you should have a clause in your contract that states if the inspection comes back unsatisfactorily that you, the buyer, have the right to end the contract to buy.

Different homes also comes with different lifestyle factors. Some buyers love the idea of having everything within walking distance. They like spending their extra time meeting friends for dinner and drinks or perusing the latest art exhibit. Could a condo be a good fit? It's a definite possibility.

Homeownership comes with its share of time intensive responsibilities. Lawns need upkeeping. Repairs need made. A condo can give you the location you desire without all the extra maintenance you'd find with a single-family home. That means extra time for the things that really matter to you!

Condos, while low maintenance, however, can also have their downsides. You will share walls, common areas, and amenities with neighbors. If you are an extremely private person, then condo living may not be for you.

Do you prefer a more isolated setting? Many people love the idea of country life. Just keep in mind that the further you are from people, the further you are from grocery stores, hospitals, and restaurants.

A suburban lifestyle has gained popularity over the last 20 years. Cities expanded to welcome their growing populations that wanted, and could afford, newer homes with their own nearby shopping centers. School systems can be very good and most areas boast lovely street designs thanks to urban planning.

The real key is to decide what lifestyle is best for you and your family. Once you've decided this, you'll be able to zero on the best location. Next, be sure to consider more than just the price tag of a home. Consider upkeep costs, area taxes, needed repairs, and even future salability. Do your due diligence and you're sure to make the right choice!


Written by Carla Hill
Published by Realty Times

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It's Buying Time Again, Big Time

If you've got the income. If you've got plenty of tenure on the job. If your credit is solid. If you can otherwise pass muster at the mortgage loan desk. If it's cheaper for you to buy than it is to rent.

Yes, there are lots of "ifs," but it's one of the best times in America to buy a home. And it won't last forever.

To wit

• Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales, according to the National Association of Realtors (NAR). The bargain basement is open for business.

• Investors know a party when they see one. They snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, NAR reported.

• The second home market is back with a vengeance. Both investors and playhouse buyers are jumping on this bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.

• Meanwhile, owner-occupied purchases fell 15.5 percent last year.

Numbers talk

The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, which means you may have already missed rock-bottom in this sector.

The median sales prices for vacation properties was $121,300 in 2011, down 19 percent from 2010, which means you may still have a shot at the basement here.

Likewise, NAR reported the median price of all single-family homes dropped 4 percent from $170,600 to $163,500 in the fourth quarter 2010 to 2011 and, during the same period, condo prices fell almost 2 percent $163,500 to $160,800.

Housing market forecasts for a recovery remain mixed, but it's about when, not if. If this isn't the Year of the Dragon for the housing market, it could begin to breathe fire next year.

But consider that many of those forecasts are based on lagging information. One study by John Burns Consulting says many are lagging by a full quarter and prices have been rising in many markets for a full quarter.

And then there are those record low interest rates.

Don't get behind the curve and wait until a line forms and multiple offers are the norm, rather than the exception.

"Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today's market," said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez.

"But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner," Rodriguez added.

NeighborWorks' advice

• Be mortgage ready. If you haven't already, check your credit reports from the only federally-sanctioned source of free reports, AnnualCreditReport.com, to make sure your credit is mortgage worthy. Don't get taken by sound-alike websites that offer you "free" credit reports that are only "free" after you buy a credit monitoring service.

Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost or no mortgage at all. Work with a homeownership advisor at aNeighborWorks HomeOwnership Center or other NeighborWorks organization to start the homeownership process.

• Know all your costs. More than just a mortgage payment, homeownership comes with insurance, tax, utility, maintenance and transportation costs, among others. Include them in your budget to determine what is truly affordable.

• Know your mortgage. Fixed-rate mortgages (FRMs) offer payment certainty, while adjustable rate mortgages (ARMs) frequently provide lower initial monthly payments, but those low rates could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.

• Hire good help. Get a licensed real estate agent who knows the market. It's easy to go digital and browse for housing. Actually going through the process and closing on a home without professional assistance is something else. Ask anyFSBO (for sale by owner).

• Take your time. There may be some pressure to get in the market at today's affordable prices and low interest rates, but if you move too quickly, it could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district. Buy only what you can truly afford, not a home based on the largest loan the lender will lend.


Written by Broderick Perkins
April 12, 2012

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Or visit our website: www.LivingLakeTahoe.com

Relying On An Agent

The latest NAR Profile of Home Buyers and Sellers showed a growing trend among recent buyers.

The latest figures show that 89 percent of buyers purchased their home with the help of a real estate agent or broker. This is a sharp increase from a decade ago in 2001, when only 69 percent of buyers enlisted the help of an agent or broker.

Why do today's buyers buyers choose to work with an agent? Let's look at just a few of the many reasons an agent can be your biggest ally.

First, agents are licensed professionals, which means they had to complete coursework and pass an exam in order to become and agent. They have the education and experience to help you navigate what will be one of the biggest purchases of your life.

They also have access to a wide range of properties and can guide you to those that are the best fit for you, which can save you time and energy. If you are unsure what type of property you're interest in, an agent can help explain the pros and cons of things such as condo life versus single-family detached living.

Where are the up and coming neighborhoods? Which areas are more walkable or have access to better schools? These are all issues an agent deals with daily.

They can also ease the burden of buying by simplifying the process. They set up showings, drive you to appointments if needed, and help you handle the intricacies of negotiations.

Today's market also presents challenges that simply weren't present or didn't dominate the market a decade ago. Buyers are faced with some great deals, but through some complicated channels, such as short sale or foreclosure. How does one handle these sort of contracts? Your agent or broker will know.

According to the NAR, "More than ever home buyers are relying on real estate agents and brokers to help them with their home purchase regardless of whether the home they are buying is a foreclosure, short sale, or even a FSBO sale because they need a real estate agent to help them through the process."

Finally, buyers are unsure if now is really a good time to buy. They need to rely on someone with local market knowledge. Is this a good neighbor to invest in? Are prices still dropping in this community? How long do homes take to sell? What is the median selling price? Buyers want the best deal out there.

The 2011 Profile found that more buyers are opting against dual agency, where the agent represents both the buyer and seller. This could signal that today's buyers are very cautious about getting into the market. While a dual agent isn't supposed to harbor any bias, buyers now want to be extra sure they are getting the best deal possible. In fact, "60 percent of recent buyers had an oral or written arrangement with the real estate agent or broker so that the buyer's agent only represented the buyer and not the seller."

If you are considering entering buying a home this year, be sure to strongly consider using a real estate agent. They could be your biggest ally.


Written by Carla Hill
January 17, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Five Great Things about Homeownership

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!


Written by Carla Hill
Published by Realty Times

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Call Alvin's Team Today! 877-651-7810
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Choosing a Condo

Not all home buyers have dreams of spacious lawns, rambling rooms, and secluded properties. Many buyers, rather, are on the search for a home that will be easy to care for and will give them plenty of chances to be active and social.

From first-time buyers to down-sizing retirees, condos offer a wealth of opportunity. Many come equipped with clubhouses, gamerooms, gyms, and common outdoor meeting areas. Others go above and beyond with organized mixers, dances, movie nights, and more!

Condos can be a great choice for single homeowners looking to socialize. They can be a wonderful choice for older adults who are fully capable of caring for themselves, but wish to cut back on home maintenance.

Typically, owning a condo means you no longer have to worry about mowing your yard, maintaining landscaping, cleaning or scooping sidewalks, or making large-scale repairs. You pay a small fee each month that pays for your portion of this upkeep. Your condo association should also have a reserve fund that is held for large repairs, such as roof replacement, when the time comes.

The operative word is "should." Not all condo associations are the same. Before you buy, be sure to check into how diligent the association is. Are they up-to-date on reserve studies? How often in the last 10 years have they raised fees? Do they have an lawsuits pending?

Additionally, not all condo communities are equal when it comes to amenities. When you set up a showing, be sure to visit all that will be available.

This next upside has a catch. Condos generally come with an extensive set of rules. This means the condo government says what you can do to your home and what you can't. They can prohibit improvements, pets, home-based businesses, and subletting. The positive side of these rules is that your condo community should stay uniform, updated, and in good order. If you have an issue with a neighbor, you can easily lodge a complaint, for they are liable to the condo rules.

As every up has it downs, there are some drawbacks to owning a condo. One primary negative is the overall lack of storage. Generally, you have no garage, attic, basement, or backyard storage shed to house those Christmas decorations and other treasures.

Another hefty downside is the monthly HOA fees. For the entire time you own the condo, you will be expected to pay fees. While these go towards upkeep and amenities, it is an added financial burden that one must consider on top of purchase prices. Additionally, you are still responsible to pay your monthly fees even if your condo is entirely paid off.

Finally, while owning a condo means you have many comparable homes on hand for pricing comparison, it also means you have lots of competition on hand for units that are just like yours.

Condos can make ideal and happy homes. Be sure to do your due diligence when researching what community is right for you!


Written by Carla Hill
Published by Realty Times

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The Joys of Homeownership

Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons.

Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer.

What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones.

It makes sense. Many people enter the realm of homeownership as young couples looking to build a nest. They plan on starting their own family and need room to expand and grow. These family homes will see many firsts and will be the container of countless memories. Additionally, homeownership gives families more room to entertain and this means extended family will also share in building memories.

It's not just young families, though, that seek homeownership. Families with teenagers seek larger homes to room their growing brood. Retiring adults may wish to start a new phase and new memories, seeking out warmer climates or smaller, more manageable homes.

These little moments are what life is all about. Memories from Christmas mornings and summer vacations will fill minds for years to come.

On the other hand you literally can put down roots by planting trees and shrubs! Renters are rarely afforded the luxury of gardening. In fact, digging up the landlord's yard is frowned upon. As a homeowner you are able to create your own green oasis, including trees that will mature alongside your children and gardens that will feed your hungry pack.

There is a certain pride that comes with homeownership. This little piece of property and land is yours. There's no one that can evict you or take it away. This security allows people to form deep attachments to both the land and home.

This pride of ownership spurs many owners to make improvements and additions, both to keep the home in working order and to make it more comfortable and usable, which in turns improves neighborhood values and overall curb appeal.

Why do people buy? They may be initially motivated by changes in circumstance, such as a new job or a new family, but they buy based on emotional responses. People want a house that can become their home, where they'll fill it with good times and memories. Be sure to remember this sentimental side of homeownership the next time you read about stocks, bonds, and housing woes.


Written by Carla Hill
Published by Realty Times

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Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Time to Move up?

The market if fraught with scary headlines and ominous news reports. Could the economy slip once more into a recession? Will home prices fall even further? It's enough to make even the bravest buyer a little squeamish.

The truth of the matter is that now is a fantastic time to buy. Interest rates are wonderfully low and affordabilty rates are at record highs. Not only that, but there is an oversupply of homes on the market. Now is a great time to move up if you play host to the right set of circumstances.

In order to evaluate if now is the time for you to buy, consider these five issues.

1. Interest Rates: Low rates translate into smaller monthly payments and less money over the long-term. The Federal Reserve has promised to keep interest rates low for the foreseeable future, but in the next few years we could see rates climb back upward. If you have excellent credit, you'll likely qualify for an exceptional rate. Better yet consider doing an all-cash purchase (like the nearly 30 percent of the market) and avoid interest rates altogether!

2. Why are you buying?: This is an important question to spend some time pondering. Don't move on a whim. What is the real need to move? Many move-ups need more space, want to claim a more prestigious address, or are ready to settle down for good and want to be exactly where they've always dreamed. Perhaps your current home is unable to be remodeled to accommodate your wants and needs. Regardless of the reason, be sure to spend ample time thinking about what move is best for your family.

3. Equity: Home values have fallen across much of the country and this could mean that equity you had built over the past few years is gone. Talk to a local real estate agent about the current market value of your home before deciding if now is a time to buy. Most sellers aren't willing to take a loss on their home. The good news? If you've owned your home for many years (at least five) then chances are you do indeed still have equity.

4. Financial Stability: There's a 9.0 percent unemployment rate that doesn't appear to be going anywhere fast. Moving up can mean bigger payments or heftier bills (energy costs, property taxes, etc). Are you ready to take on this new responsibility? Be sure that you have steady employment, adequate retirement savings, an 8+ month emergency fund, as well as savings for downpayment and other closing costs.

5. Family Concerns: There are many different stages to life and at each of these stages one must consider how actions will affect family members. A family with young children will need to consider school districts, sports teams, and friends. A couple nearing retirement may want to consider the needs of children or grandchildren that live nearby. Buying a home is about much more than making a sound financial decision, it's about creating the sort of life you desire.

Moving-up can be part of the fulfillment of a life long dream. Many couples simply can't wait for the day they step inside their perfect home. Now is a great time to make those dreams a reality, just be sure to toss in a little sensibility with your dreaming.


Written by Carla Hill
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com