Now Is A Great Time To Buy A Home

Now Is A Great Time To Buy A Home

By Scott A. Miller
Prudential Zack Shore Properties

If you’re ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 6% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the National Association of Realtors:
• One average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.
• The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.
• Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!

5 Tips to Help You Sell Your Home Fast

There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:

Price It Right

The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.
Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.

Make Your Home Irresistible

Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.

Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.

Create Traffic

If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.

Go with a Professional

Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.

Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.

Offer Incentives

Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.
Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.

Buyers can search the entire MLS right from my web site at http://www.BeachViews.com Sellers will also find excellent information and links through my web site.

Scott A. Miller – Prudential Allenhurst November Associate of the Month
Realtor Associate
Prudential Zack Shore Properties
401 Spier Avenue
Allenhurst N.J. 07711
732-531-1122 ext. 206
Smiller@pruzack.com

8 GREAT Reasons To Get Pre-Approved

8 Great Reasons To Get Pre-Approved

1) Pre-approval determines which loan program best fits your needs.

2) Your property search will be focussed on a price range you can negotiate on with strength.

3) You will be confident in making an offer on the home you really want when you find it.

4) Your agent can present your officer to the seller to the seller with a pre-approval letter for you.

5) In today’s market, where multiple offers on properties are not uncommon, pre-approval puts you in a much better negotiating position.

6) You will be clear on and know the amount necessary for down payment and closing costs.

7) If you are a first time home buyer, you may be able to qualify for a special first time home buyer program that may allow you to afford more home for your money.

8 ) If you feel like you would like and can afford a higher mortgage payment, other options may be available.

Scott A. Miller

Prudential Zack Sjore Properties ~ 401 Spier Ave. Allenhurst N.J.

732-531-1122 x 206 SMiller@pruzack.com

http://www.BeachViews.com

Don’t believe me? See for yourself!

So the mortgage rates continue to fall. For anyone thinking of buying or seller this is key, take a look for yourself at the past 4 weeks, direct from Freddie Mac’s website! For buyers, you get a MUCH BETTER rate, lower monthly payments and a GREAT deal on inventory that’s presently out there as a main home or investment property. For property owners who need to sell, price your property CORRECTLY the first time and your property WILL sell! No matter what anyone tells you or what you hear in the over-rated, drama driven media, real estate is STILL the BEST long term investment there is! Contact me if you’d like more information or have any questions…..

Treasury Weighs Action On Mortgage Rates

From MSNBC

EXCELLENT NEWS!!!

Treasury weighs action on mortgage rates

Plan would aim to buoy housing market by forcing down the cost of loans
By David Cho, Zachary A. Goldfarb and Dina ElBoghdady
The Washington Post
The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the moribund housing market, according to sources familiar with the proposal.

Under the initiative, the Treasury would offer to buy securities that finance newly issued loans for home purchases, according to the sources. But to participate in the government’s program, mortgage lenders would have to set exceptionally low interest rates, for instance, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

These securities would be purchased primarily from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders, according to sources who spoke on condition of anonymity because the plan has not been finalized.

The cost of the plan and source of funding remain unclear. One possibility is for the Treasury to raise money by issuing bonds to the public at 3 percent interest. This could allow the government to turn a profit because it would be buying securities that pay 4.5 percent.

At a meeting attended by the Treasury’s Interim Assistant Secretary for Financial Stability Neel Kashkari and the National Association of Realtors in mid-November, senior Treasury officials said they were optimistic that subsidizing lower mortgage rates with taxpayer dollars would help revive the housing market, sources said.

Treasury officials told the Realtors that the plan could be a more effective way to help homeowners than focusing efforts solely on borrowers who are struggling to meet their monthly payments, the sources said. Democratic lawmakers have been advocating a proposal to modify the mortgages of distressed homeowners.

A source said Treasury officials suggested at the meeting that the Realtors start a grass-roots campaign to press the mortgage rate plan with lawmakers.

Treasury officials described the situation as fluid and said the plan was still being finalized, according to people in contact with the department. The officials expressed concerns yesterday that premature disclosure of the plan could prompt Americans to put off buying homes and hold out for a better rate, sources added.

Treasury spokeswoman Brookly McLaughlin said she would not comment on the matter.

Key to solving financial crisis
Treasury Secretary Henry M. Paulson Jr. has said that a recovery in the housing market is key to solving the financial crisis. Such a rebound would restore confidence in the banking system and support the value of troubled assets backed by mortgages.

Though he has said a mortgage modification plan proposed by Federal Deposit Insurance Corp. Chairman Sheila C. Bair could help the housing market, Paulson has expressed concerns about whether it would reward borrowers who bought houses they couldn’t afford. Bair’s plan would use tens of billions in federal funds to modify adjustable-rate mortgages for several million financially troubled homeowners.

The initiative under review at the Treasury would be an alternative. Borrowers would have to meet standards set by Fannie Mae, Freddie Mac or the Federal Housing Administrations that include documenting their income, sources said. Fannie and Freddie were put under government control in September. The Treasury plan would not apply to refinances.

Any efforts by the Treasury to lower rates on new mortgages would work in concert with a Federal Reserve plan announced last week to buy $500 billion worth of existing mortgage-backed securities issued by Fannie Mae and Freddie Mac, and $100 billion worth of those companies’ debt.

The Fed was pleasantly surprised that 30-year fixed mortgage rates fell by as much as three-quarters of a percentage point in anticipation of their program. Homeowners rushed to refinance. Cheaper monthly payments may bolster consumer spending, the most important component of U.S. economic activity.

‘Short-term windfall’
News of the Treasury plan spread quickly through the markets. Shares of home builders rose. At Long & Foster, the Washington area’s largest real estate brokerage, top brass informed agents that they should gear up for increased demand from potential buyers.

“This is going to be a short-term windfall that everybody needs to jump on,” said Dave Stevens, the firm’s president and chief operating officer and a former Freddie Mac official. The move by the Treasury certainly would mean “interest rates will drop,” he added.

But it is unclear whether lower mortgage rates will spark home buying, which is a weightier decision for ordinary people than refinancing a loan.

There are also questions about how much the Treasury would spend to buy down the mortgage rate. One industry source said another idea being pushed by trade groups calls for the Treasury to spend $50 billion of its $700 billion financial rescue package to reduce the fees, or points, that home buyers pay when they want a lower rate for a mortgage.

Yesterday, the average rate on a 30-year fixed-rate mortgage increased slightly to 5.75 percent yesterday, up from 5.54 the previous day, said Keith Gumbinger, a vice president at research firm HSH Associates.

“What’s not known is the timing of the purchasing of the mortgage-backed securities and how quickly money will be pumped into the marketplace and that matters as to how low the mortgage rates will go,” Gumbinger said.

Staff writer Neil Irwin contributed to this report.

URL: http://www.msnbc.msn.com/id/28045659/

10 Ways To Prepare For Homeownership

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact me, a REALTOR®. who’s experienced and who can help guide you through every aspect of the process.

Scott A. Miller – 201-538-4177 SMiller@pruzack.com

Don’t believe everything you hear!

Every morning I watch the news and talk to people throughout my day and I’m amazed at how people are so influenced by the news without checking out the facts for themselves. The news generlizes the state of the housing market and the banks ability to lend money in our current economy. The news you hear is not town, county or even state specific and every state caries in their conditions. Even when you average out the states that aren’t that bad with states like California and Florida the view will look bad. Fortunately here on the Jersey shore it’s not nearly as bad as they say, the news states or as the general public thinks.

Houses ARE selling, people ARE getting mortgages and real estate transactions WILL happen in ANY market because people will ALWAYS have housing needs whether it’s to upgrade, downsize or move to a different area or state even. I spoke to a good friend the other day who is the manager of a mortgage company. I know and trust him 100% and have my own mortgage through him. He was telling me how big banks are not taking the risks that they were before with people who have lower credit scores and or smaller down payments. BUT if you have a great real estate agent and a great mortgage person, they can make it happen for most people looking to buy. He told me a story about a young couple he was working with who had low 500 credit scores and wanted a zero down mortgage. Now the average buyer or even real estate agent would tell them, “no way, it’s not happening!” but that’s NOT true at all! They have low credit scores due to a horrible car accident caused by a drunk driver. The mortgage application was turned into the bank with an explanation it was noticed that they had paid all their bills on time for the past year or so and held jobs for a good period of time and once all the details were reviewed their mortgage was approved! Not only were they approved but they were approved with no money down and an interest rate of 6.15%! Combine these types of situations with FHA loans and incentives like the first time home buyers $7500 tax credit, all kinds of options are out there. So, moral of the story, do your own research and do NOT just believe the news or things you hear from your friends or neighbors. Every situation is unique and in many cases can be worked out.

This leads into another subject… “Houses aren’t selling.” WRONG! Houses ARE selling, do you know who is selling houses? The sellers and real estate agents that are pricing their listings CORRECTLY according to the local comps. Overpricing your home in this market is a surefire way to make buyers run in the opposite direction. The other problem with this is that the home gets a bad what we’ll call “mojo” because it just sits and gets stagnant on the market, no showings, no offers and this helps no one. A good real estate agent will not even take an overpriced listing! They will turn it down if the owners are not realistic about their pricing decisions. Homes priced correctly on the Jersey shore ARE selling! I think one of the most important pieces of advice I tell people is to make sure they aren’t hiring a “listing agent” but DO make sure you’re hiring a “MARKETING AGENT”! Listing agents will take any listing, at any price just to have it, then leave you high and dry once they have the listing. A marketing agent such as myself with take that listing and make sure it’s on the MLS, on many different websites on the internet, a few local newspaper ads will be printed, flyers and brochures will be made and distributed, just listed postcards will be sent to the surrounding neighborhood and an entire network of real estate agents will be emailed within 48 hours of attaining the listing. In addition there will be a brokers open house and one or more public open houses on an as needed basis. In this type of market, don’t just choose any agent, ask questions and don’t be concerned with the brokerage fee, stay focussed on how hard the agent will work FOR you!

All that being said, if you’re a buyer, seller, investor and landlord, feel free to call or email me anytime, 7 days a week with questions or help with your real estate needs. YOUR real estate goals are MY priority! SMiller@pruzack.com