Five Smart Reasons to Buy a Home Now
RISMEDIA, July 30, 2010–The economy is stabilizing. Home prices are holding. It’s not just as good a time as ever to buy a house. It’s one of the best times ever.
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction. So, don’t worry about “missing” out on the tax credits – real estate is a LONG TERM investment. Now is a great time to buy while interest rates are low!
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners in the Twin Cities who have been holding back kept their houses in good shape while they waited. As those owner occupant houses enter the market, they are in marked contrast to tattered foreclosures. Sellers are doing what is needed to make their homes stand out and sell! This means a move in ready home for you!
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for. Don’t get me wrong, foreclosures can be a GREAT deal but they are not always left in the best shape when the owner moves out. There will still be plenty of foreclosure homes for sale in the Twin Cities (and rumor of some of the more high priced homes hitting the market) but more homeowners (not in foreclosure) are choosing to sell now as well in hopes of making up any losses on the sale of their current home when they buy their next house.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines…again. Now that appraisers have more flexibility to set values that reflect the current market, today’s deals will more likely make it over the finish line. BUT please be aware that you still need to work with a reputable lender who has a history of getting the deal done and within a reasonable time frame.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by “workforce housing” programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates. Again, don’t worry if you missed the federal tax credit…many counties and cities have programs available to assist with down payments. Contact me if you need more information – I can put you in touch with GREAT lenders who has access to everything out there in Minnesota!
Give me a call!
Jen McKinnon
Real Estate Agent / Investor
612.384.1073
jen[at]MnRealEstateTeam.com
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