Buying a home can be a tough experience, especially if it’s your first time. Get tips from experienced home owners so you don’t have to make the same mistakes.
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Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal: Why It’s Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy. Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home. Here is some information to consider.

Interest Rates – Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards – The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:
-The qualification process for loans will become more difficult
-The cost of a loan will increase

Bottom Line
There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

From the KCM Crew (Keeping Current Matters)

The economy is improving overall and, as a result, some bright spots are showing up in the real-estate market. However, the foreclosure spike, which began around the same time the recession did, isn’t a distant memory just yet. In many areas, foreclosures are still happening; in some areas, those numbers have increased. Surprisingly, foreclosures have even encroached into some key cities that were formerly thought to be unshakable real-estate markets – like San Francisco, where foreclosures actually rose in 2010 (including in luxury neighborhoods like Pacific Heights, where a condo that sold in 2007 for $2.3 million recently sold for $1.44 million as a foreclosure).

Read more…

There are specific items that property owners must be aware of if they have an unoccupied home; in addition to homeowners insurance, there are four things people must know about.

Many people looking for unoccupied homeowners insurance for an empty residence will find that the process can be difficult. Many companies will not cover such a dwelling or charge high premiums because of the increased risk associated with vacant properties. The chance of burglary and vandalism are higher. The potential of unnoticed damage which can compound problems and costs also increases. There may also be an issue with squatters. See more

If your house is on the market, you know how nerve-wracking it can be waiting for those buyers. You want your house to be in the best possible shape for every showing because you are competing with lots of others homes for those buyers. You don’t want your price to just be competitive – you want it to be compelling. You want the buyer to walk into your home and know that they have to have it. Pricing your house correctly is a great first step but it isn’t the only step you need to take. Your house must show incredibly well. Each buyer is looking at many homes. If you want yours to be the chosen one, it must be “Show Ready” at all times. This video will give you some great ideas and tips to help you make your house the “must have” one for the buyers.

Watch the video…

Mortgage rates are at near-historic lows, but sinking home values are often lowering appraisals as well. If you are considering refinancing your home, what do you need to know about the appraisal process to help ensure you get the best possible appraisal on your home? Seasoned loan officer and mortgage industry insider Len Finelli shares ten important tips on understanding the appraisal process. If you are a homeowner seeking to refinance, heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money.

Read more….

Individual style, mixed with budget-conscious decorating will drive 2011 paint color trends, according to Debbie Zimmer, paint and color expert at the Paint Quality Institute.

“There’s no escaping the state of the economy, even for homeowners who want to beautify their homes,” says Zimmer. “Rather than diving into large-scale renovation projects, in the coming year, consumers will search for inexpensive ways to freshen and update their homes. Many will conclude that painting is the perfect solution.”

By incorporating a few new paint colors, either as accent walls or throughout a room, homeowners will be able to enhance their living spaces economically with paint, she says.

Zimmer shares three likely color directions for 2011:

Read more

A recent article by Carla Hill in Realty Times gives numerous reasons why buying a home – right now – is a good investment.

“Homeownership has been part of the American Dream for centuries, and it’s no wonder why. It rocks.

First, owning a home is an investment. No, it’s not a sure-fire way to get rich-quick. It is a long-term investment. Over the course of many years, even through times of economic upheaval, you can build wealth over time.”
Read full article…

Daily Real Estate News | May 28, 2010

Mortgage Rates Might Not Be Low for Long

The near-record low mortgage rates seen during the past few weeks may not be around much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.

The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.

“If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

NEW YORK (CNNMoney.com) — Sales of existing homes rose in July for the fourth consecutive month, lending support to economists who argue a recovery is near.

Sales of previously owned single-family homes were up 7.2% compared with June and 5% from July 2008, The National Association of Realtors (NAR) reported Friday. The monthly gain was the largest on record for existing-home sales, which NAR has tracked since 1999.

“The housing market has decisively turned for the better,” said Lawrence Yun, NAR’s chief economist. “A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales.”

July home sales hit an annualized rate of 5.24 million proprieties, marking the first breach of the 5 million annualized rate mark since last September, when they hit 5.1 million. Since then, they have stayed in a very narrow range, bouncing between between January’s low of 4.49 million and October’s high of 4.94 million.

The July performance far exceeded expectations: A consensus of real estate experts had forecast sales of 5 million.