When Should I Buy My Next House

August 18, 2008

As if the home buying process isnt nerve wracking enough, an unstable market presents unique challenges to future home buyers. With the steady stream of bad news, increased foreclosures and tightened restrictions on mortgages, it can be more difficult to buy a new home now than it has been in the past. Lenders are getting picky and it can spell bad news for those individuals on the house market.

If you already qualify for a mortgage, however, and have a good income with strong credit, you can be in a prime spot to purchase a home. With declining home prices and an established mortgage, the house market is not as treacherous for established homeowners as it can be for first time buyers. There are some tips and tricks, however, to help you stay within a safe area for your future home purchase despite an unstable market scenario.

Do not over reach yourself with a large mortgage. It might be great that you can afford a certain price on paper, but you need to take the time to work out how much your mortgage payments will actually be each month. Can you afford to have this as a monthly expense while still saving for your retirement, college, increased portfolio, or a new car? What are the bills that will accompany a house that is that large? Can you afford those along with your mortgage? What are your annual taxes? Know this information before you get too caught up in a big number that will mean little to you until you break it down in monthly installments.

Real estate agent differences can affect home buying as well. All real estate agents are not the same. Some will call you regularly while others prefer to stay quiet until they have found the exact right house for you. Ask a number of questions to your potential real estate agent to find the one that is best suited to your personality. Do they experience with title searches? Can they help you spot potential problems with the property? Having a good real estate agent that fits your personality will make all the difference in your future home shopping experience.

Even the best real estate agent can miss some things. Look online to find crime statistics, school districts, home prices and comparables. You can find an array of quality information about your future potential neighborhood by taking the time to search online. If you are armed with this extensive knowledge, you can make better deals and know what you are getting into with your future home. Look for virtual house tours and extensive pictures. Check out the neighborhood, the annual taxes, and much more at the touch of your fingers.

Walk the Streets of your future neighborhood. No matter how much information you find online, you cant really know a neighborhood until you spend some time there. Look for open houses in the neighborhood that are not the property you are interested in to see other homes in the area, meet the neighbors. Drive through your future neighborhood at all hours of the day to see what kind of neighbors you would have. Are there a lot of kids, working parents, or older couples? You can find this out through your frequent drives.

Negotiate with the home sellers of your future home. You do not know what the sellers situation might be and it never hurts to try to negotiate a lower price. Although it might insult them and you could lose the house forever, some home buyers have found that asking for more in their offers has been very successful for them. If the seller is under a lot of pressure to sell or has had few offers, they might be more willing to listen to your demands.

Up front, foreclosed properties might seem like a steal. They are much less expensive and can be a great deal when it comes time to sell. However, if the homeowner has been unable to make their mortgage payments, it is highly likely that they have been able to keep up with the general maintenance of the home itself. You will have to purchase a foreclosed property as is many times and you could be stuck with a property that has larger issues than you are willing to deal with.

When you purchase your next house, get into a mortgage you can afford. Especially for first time buyers, getting a good mortgage and knowing which lenders are right for you can be tricky. There are unethical lenders out there offering deals that are literally too good to be true. Finding a good mortgage and lender can ensure the stability of your financial portfolio and home status. If you are caught with an unsavory lender and something bad happens in the future, the status of your home and ability to secure another mortgage will come into question. You could lose everything due to bad choices made now with your mortgage company.

Get a home inspection. You need an unbiased view of the property you are about to buy. In order to ensure that you know of all your propertys potential problems up front, it pays to get a great home inspector. You want to be able to trust the person and know that what he or she says is legitimate. If your home inspection finds problems that far exceed what you are willing to deal with, you have the opportunity to back out before it is too late. The home inspection is the smartest way to buy a home no matter what the economic situation is.

Finally, buy your home with a long term plan in mind. A home purchase is a huge investment and the savvy buyers look to find a house that will fit them now and years down the road. You can invest in your home and make any necessary upgrades to help you grow with the property, but staying with your home will help to increase your investment and make you more financially secure in the future.

If you have bad credit, consider purchasing a house through a lease purchase or rent to own. Now is a great time to purchase a house at a fixed purchase price, and rent the house until you can afford to get your own mortgage. This gives you time to raise your credit score which will lower your monthly payments by getting a better interest rate.


Why Home Sellers Accept Low Price Offers

June 23, 2008

Some realtors will tell you it is a buyers market. Other times, realtors will rejoice that it is a sellers market. No matter what the season for real estate holds, one thing remains true, every buyer wants a lower price and every seller wants the highest price possible. It is possible to learn how to offer a low price on a home for the highest benefit for the buyer.

Currently, wise home sellers are not instantly rejecting offers that are coming in well below their asking price. With the number of homes on the market in their neighborhood combined with personal motivating factors to sell the home, many more offers are being entertained than in the past.

However, whenever you offer a lowball offer that is interpreted as insulting to a homeowner, you always risk offending the seller and utterly losing the transaction. How can you negotiate a low price without hurting the sellers feelings and still get a great deal? Information is key.

In order to make an aggressive offer, a smart home buyer will do his or her research. If you do your homework, you can make a savvy, lower offer that will make sense to both the buyer and the seller. In a market where the seller has the upper hand, a sellers personal motivating factors for selling, such as relocation for a job, divorce, foreclosure, combined with smart comparable data about the neighborhood can create the ideal situation for a buyer to make an offer on a home much lower than the asking price.

What are some of the risks for offering a sale price much too low without doing your research? After all, the worst they can say is no. However, if the buyer is serious about owning the property, a sale offer that is too aggressive can cause the seller to reject your offer and not deal with you. In addition, the seller might assume that the buyer is not serious about making a deal. However, with outside, unbiased data at your fingertips, the smart home buyer can make a strong argument for the price and see a higher rate of success.

Even if you believe the sale price is appropriate, there are other ways to lower the amount you put towards a home. Look for sellers who are strongly motivated to sell. For instance, job relocation or sellers who have already purchased and closed on another home. These home sellers will be more likely to entertain the idea of paying for closing costs or changing the close date for a lower price. Of course, if the home has been on the market for an extended period of time, the assumption is that the seller will be highly motivated to sell at a more flexible price. By negotiating these factors, you can see thousands drop from the bottom line of home buying.

Overall real estate conditions will be a large factor in the price you can get from your home purchase. However, it’s important to remember there are a number of other factors in addition to the market to help the home buyer to lower the price of their future home.

Many areas of the nation like Orlando Florda, Las Vegas Nevada, Boise Idaho, Austin Texas, Central New Jersey and others, are experiencing homes that stay on the market for long periods of time. If you are a home seller in this area and would like to sell your house fast, contact you local home buyer at ExpertHomeOffers.com. They buy houses fast so you can move on with your life. 


What Type Of Mortgage You Should Get To Avoid Foreclosure

June 2, 2008

Unlike the last generation, there are a number of influences that can go into your mortgage payment. These different factors have contributed to some homeowners losing their property entirely. When some of these influences catch the homeowner unaware, they can translate into foreclosure and bankruptcy.

The biggest warning that financial investors give to homeowners now days is to avoid biting off more house than your financial future can swallow. After all, there is more in your future than just a mortgage payment. It’s time to plan wisely.

In the past generation, there was typically only one income supporting the bills and mortgage payment. When one spouse lost a job, the other one could quickly get a new job to help support the family. This generation, however, has built their mortgage payments on the idea of a two income family. Therefore, when one spouse loses their job, the family as a whole can quickly spiral into financial chaos and disaster. Planning for a more conservative mortgage payment at the closing can help to shield the family should a job loss happen.

How can you determine if you have too much house? Most financial advisors suggest that you make your mortgage payment no more than 28 percent of your total income. By following these rules, you are more likely to keep your home and be on time with your home payments.

In addition to keeping your home mortgage payments within 28 percent of your income, you will need to analyze the rest of your financial obligations in future years. For example, will you need to save for kids college funds? How much will you need for these financial requirements? What about your retirement? Are you building two retirement plans?

In addition, there are a number of hidden costs in home ownership. Things like home maintenance, repairs and Home Owners Association fees can add up, in addition to your usual costs like insurance and taxes. There are additional expenses that might come into play, affecting your home mortgage payment. For example, if you have an expensive hobby like traveling, you will want to free up more of your income for these expenses.

Your income or the income of your familys breadwinner can be a strong influence in how much of a house you should buy now. If you do not have a consistent income or see your income hitting a plateau or lowering in the future, this can be a significant influence for your mortgage payment.

Unlike the previous generation, the average workforce individual changes employers over the years. Through this fluctuation, income amounts can change, affecting your mortgage payments. Making your mortgage payments more conservative can help you save more money during the wealthier times and help you stay afloat during the leaner months.

If you do not have to worry about retirement or are completely debt free, rejoice. Few people fall into this category, but for those that do, the mortgage payment is a direct outcome. With less money paying the interest on credit card debts and car loans, the more money will be applied towards the home, building equity.

If you did buy a house with a large mortgage payment and are now finding that you can not afford the mortgage, maybe even needing to stop foreclosure, then contact you local home buyer. Local home buyers are professional real estate investors who buy houses from people just like you. You can get a free, no obligation offer for any house with in 24 hours. If you are thinking how can I sell my house fast, then you have nothing to loose.


Where the Real Estate Market is Currently Growing

May 15, 2008

Read an article on the real estate market lately and you will find little more than tales of gloom and doom. Recession impact, the falling dollar, real estate bubbles bursting the hot markets – the combination of all these factors are the culmination of real estate gurus warning of an inflated real estate market for years now. These fears and vocal warnings have impaired the real estate market, stifling housing sales and highlighting foreclosure problems for banks in communities nationwide.

However, despite the bad tales of the real estate market that abound in the news, there are plenty of areas that are growing, improving and seeing positive changes in their housing sector. Although much of the nation will be either stagnant or continuing to show a decline, these regions are growing, boosted by local economic factors that are shielding the community from a housing bubble catastrophe and giving local investors in these areas something to smile about.

Take McAllen, Texas for example. With a 12 month forecast of 4 percent increase, this area of the country is sitting on strong real estate possibilities. The five year price change for McAllen has been a steady 23.3 percent, giving this region a slow but steady outlook on their housing market. This Texas region might see the strongest positive return for their housing market, but there are other states that will have multiple cities with positive growth predicted in the next 12 months.

Rochester, New York is already a popular place for families, but with real estate prices seeing a strong 2.7 percent increase in the next year, Rochester is looking even more financially fantastic. With a 20.1 percent rate of increase over the last five years and an admirable 5 percent change in the foreclosure rate, Rochesters real estate market is looking ideal to many investors and families alike. New York in general seems to be avoiding the real estate crunch as cities like Buffalo and Syracuse are also predicted to see steady 2.4 percent and 2.6 percent increases respectfully in the area.

New Orleans has been predicted to make a strong step forward this year with a 2.2 percent increase in the real estate market. With a 49 percent rate of foreclosure change, it seems this personable city has found its feet after hardship and will start its inevitable climb to being an enviable place to own a home again. Nearby Baton Rouge has also enjoyed a 1.9 percent housing increase predicted. Combined with their lower 14 percent rate of foreclosure change, Baton Rouge and New Orleans combine to make Louisiana a preferred housing market.

With 75 of the top 100 U.S. cities expected to see falling real estate prices in the next year, these housing areas are anomalies. With record foreclosure numbers and plummeting prices, the fastest growing real estate markets are nothing to sneeze at. Many real estate experts are predicting the full impact of the real estate bubble burst will not be finished until 2010. Areas like California and Nevada are clinging to their homes, but if you happen to live in McAllen, Texas and other hot markets, rejoice. Your homes are steady throughout the real estate crisis.

© ExpertHomeOffers.com 2008


Sell Your House Fast Needed Tips

February 10, 2008

When a person finally makes the decision to sell their home for whatever reason, one of the things that is most heard is “I want to sell my house fast.”  This is understandable.  Leaving behind a home you have lived in for a time is not easy, even if the decision to sell has been made for positive reasons.  It takes more than just a wish to help sell your house quickly; it takes commitment to a few simple rules.  To help you realize your goal, here are a few things you can do to make sure your have the best chance of your home selling. By following these, you will help convince a local home buyer to make an offer.

Tell yourself, “I will sell my house fast by de-cluttering”.  This may seem unnecessary; after all, you will be packing after you sell the house.  However, a house can be clean and still appear unappealing to a home buyer if there is a lot of clutter.  The house will appear smaller.  Taking the time to empty off bookshelves, pack knickknacks and clean off counters and tabletops will make these areas appear more open and thus allow each area to appear bigger.  This also enables a buyer to picture his or her own belongings in that space.

Tell yourself “I will sell my house by emotionally letting it go”.  Take the time before you show your house to take down all pictures.  Leaving the walls blank will allow a potential home buyer to picture his or her own art on the walls, making it appear more appealing.  Go through and pack away any family photos and items with sentimental value.  This will allow you to sell your house, not your home.  It is easier to sell a building than a place that is full of memories.

Tell yourself “I will sell my house quicker if I make minor repairs”.  Go through your house and look around objectively.  Repair any cracks and holes.  Repainting all the walls a neutral color will also help allow home buyers to see each room as they would like it to appear.  You may love your purple bedroom, but people looking for a new home may prefer blue or green.  Make sure all light bulbs are working, all leaks are fixed and all doors are in good repair.  When the minor things are taken care of, the house will look more appealing to potential home owners and they will make an offer.

Curb appeal is also another item that should be on your list to complete before selling your house. Go outside and look at how your house appears when you approach it.  You want potential home buyers to feel it is worth entering.  If paint is peeling or the house looks neglected, they will not even come inside and you have now lost a potential sale.

By implementing a few tasks you will have a much better chance of your home selling quickly rather than sitting on the marketing. This will allow you to feel in more control of the situation. When homes sit on the market and do not receive offers in the first few weeks you will have to drop your asking price, and no one likes to do that.

If you do not have the time or do not want to put in the effort of getting your home ready to sell you could always sell your house to a local real estate investor. Many people are not aware that real estate investors exist in every major city in the nation. They buy houses from people in all kinds of situations. Divorce, foreclosure, bankruptcy, relocation, inheritance, 100 percent financed homes, ugly homes and pretty homes.

If you need to sell your house quickly and do not have the time or money to deal with selling your house to picky buyers then contact your local home buyer. They will give you a free offer on your home and you have no obligation to accept it.