Is 2009 The Year To Buy A New Home

Is 2009 the Year To Purchase A Home?
Frank J. Helderle

As a buyer in 2009 the decision lays entirely in your court. With low interest rates, an over supply of homes for sale and the lower prices 2009 is a great time to purchase a new home, with a few items to consider;

Buying Too Aggressively So you’ve located a few houses you’re interested in, make sure it’s something you can easily afford. Everything you read today about the economy tells us that our current recession will last longer than a year or so and that unemployment could hit over 8% which means trying to stretch your income just won’t work. Most lenders will tell you how much of a home you can afford, but by buying a home that costs 50% of your take home pay is just inviting problems. Consider what happens if you get laid off or your company shuts down? It can happen, so buy conservatively.

Purchasing A Foreclosure Yes a foreclosure can be a real bargain, with deep discounts, these properties can come with a great deal of baggage. After a home sits vacant for months or years things begin to deteriorate, such as no water running through the stacks, dishwasher pumps tend to dry out, carpet and vinyl begin to get loose when the house has no heat or cooling. Always know what you’re getting into. Before you begin looking at foreclosures hire an expereienced real estate agent and a certified building inspector. Make sure all utilities are on, even if you have to arrange for them to be turned on..By spending a few dollars in the beginning will save you much more in the long run.

Search For The Best Deal Home prices are expected to continue to fall most of 2009, those people considering buying a home are in the driver’s seat and should be looking for the very best deal. Since it is such a buyers market look for the deal and low ball the offer, you never know, you may get lucky. While low balling is common in today’s market don’t go overboard. Making an insulting low offer may upset the seller which may result in any offer you make on the property unacceptable

Understand The Local Market It’s really easy to listen to all the doom and gloom about the Real Estate market but savvy buyers need to be paying attention to the market area they are considering making a purchase. What’s happening in one area may be the total opposite in another. Remember, an individual market is not the same as a national market. Again hiring an experience local Real Estate Agent will insure you’re well educated about the market you’re shopping.

Buy For The Long Term As home prices continue to decline 2009 will not be the year to make a return on your investment. Actually your new home may continue to loose value throughout 2009. But, eventually home prices will rebound. Any home you purchase in 2009 you should plan on living in for at least 3 years

2009 is the year to purchase a new home if you know where to look, how to look and when to look. Contact The H Team today to begin looking for your new home

Top 10 Home Buying Mistakes

Buying a home is the largest investment a person will ever make; yet all too often the decision is made in haste without proper preparation

Using this list may help you avoid any costly mistakes;

1. Love at first sight: Falling in love with the place at first sight. Does it meet your family’s needs and budget? Make a list of all your needs and make sure the house fits into those needs. Check out the neighborhood and the community before you buy.Visit at different times of the day and week to learn about noise and traffic patterns. Park on the street and observe some of your neighbors and their actions. Even if you don’t have children, the local schools will have a lot to do with possible resale value.

2. Failure to be Pre-Approved: Getting pre-approved will give you an idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. Most savvy home sellers are going to require a pre-approval when your offer to purchase is submitted.

3. Buying Too Much: Even though you can purchase a larger home and make the payments, take a reality check. Figure your actual monthly costs, including medical, groceries, automobile, include everything. Try to stay around 38% including your mortgage. Always figure 3% of the sale price for closing costs and another 1% for moving cost, new drapes and decorating costs.

4. On Your Own: Buying a house can be full of pit falls. make sure you hire a qualified buyer's agent, a lender, and a ASHI qualified home inspector. Request referrals from family and friends.

5. Making A Verbal Offer: Not putting an offer in writing allows for too many miscommunication. Never go by a verbal statement, if something is included in the sale like a refrigerator or stove make sure it's written into the contract. A written agreement always stands up in a court of law.

6. Create Contingencies: The more the better. Using a standard St. Louis Realtor contract provides these contingencies;
A. Financing: Allows the bank to have final say regarding appraisal,inspection and your ability to repay.
B. Title: Insures that any potential liens against the property will not pass with the ownership.
C. Insurance: Guarantees that the property is insurable, including flood and hazard insurance if required.
D. Survey: Insures that no other property is encroaching on your property or that your property is encroaching on a neighbors property.

7. Not Reading Everything You Sign: Always read the fine print and ask questions if you don't understand. Getting all the paperwork a few days in advance will allow you to read everything and have your questions ready.

8. Trust: The recent mortgage Crisis reminds us all to do our research and make sure everyone involved in the transaction knows their responsibility and is acting in your best interest, not his/hers.

9. Buy Low Sell High: Purchasing the highest priced home in the area can backfire on you, when the lower priced homes are sold. looking at the amount of foreclosure's on today's markets reminds us that markets can change.

10. Remorse: Don't worry about it. Everything will be fine. Buyers remorse almost always happens after such a large commitment. You've found the perfect house, now enjoy it.

The 'H" Team can assist you as a buyer's agent. Contact Us Today for your free buyers guide.

Missouri Real Estate Getting Ready to Rebound

Just released from Freddie Mac is the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage (FRM) averaged 6.40 percent with an average 0.6point for the week ending August 21, 2008, down from last week when it averaged 6.47 percent. Last year at this time, the 30-year FRM averaged 6.67 percent.

The 15-year FRM this week averaged 5.93 percent with an average 0.6 point, down from last week when it averaged 6.00 percent. A year ago at this time, the 15-year FRM averaged 6.12 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03 percent this week, with an average 0.6 point, down from last week when it averaged 5.99 percent. A year ago, the 5-year ARM averaged 6.35 percent.

One-year Treasury-indexed ARMs averaged 5.33 percent this week with an average 0.7 point, up from last week when it averaged 5.29 percent. At this time last year, the 1-year ARM averaged 5.84 percent.

"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. July's leading economic indicators fell by more than the market consensus and manufacturing slowed in both the Philadelphia and Richmond regions. ARM rates, on the other hand, rose slightly after the Federal Reserves Open Market Committee hinted it might increase the overnight bank lending rate in its August 5th minutes," said Frank Nothaft, Freddie Mac vice president and chief economist.

However, the housing front is providing some encouraging signs. The pace of home price declines slowed down for the fourth straight month in June and the number of metro areas exhibiting monthly gains rose from seven to nine, according to the S&P/Case-Shiller® 20-city composite index. There are also signs more buyers may be getting ready to return to the market. The Conference Board says the share of households planning to buy a home within six months is now at its highest level since March. At the same time, the supply for unsold new homes is down to 10.1 months, the lowest since February, as single-family existing homes (excluding condos and co-ops) start to sell more quickly. Although, when condos and co-ops are included, the resale inventory did edge up."
Although St. Louis, Mo is not included in the 20 city reporting market all local Real Estate News has been positive. New home permits are up, Realtors are noticing more traffic through Open Houses and calls are up. Although the housing market is not out of the woods yet, most fellow practicioners are predicting another six months of minimum gains.