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Home sales are booming. A new home is a good investment and value that will
hold up and appreciate throughout the years. No other investment gives
you the financial leverage you gain when you buy a new home. A small
down payment, typically five to ten percent, entitles you to the
appreciation on 100 percent of the cost of your home. If you’re a
renter, the time to start building equity in a new home is now. The
longer you rent, the longer you’ll have nothing to show for it. And if
you’re already a home owner, now is a good time to move up the ladder
to the dream house you’ve been waiting for. In today’s housing market, there are more styles, shapes and
sizes of homes to choose from than ever before.
You can afford to invest in a new home now.
The home you couldn’t afford to buy several years ago,
when mortgage interest rates were sky-high, may be affordable now at
today’s lower interest rates. You can save $100 a month and more in
mortgage payments. And lower interest rates have reduced income
requirements considerably. When is the best time to invest
in a new home? The experts say the best time is when mortgage interest
rates are relatively low and prices have moderated and a time like
now.
Playing the waiting game.
Anyone can play but the waiting game is recommended
for gamblers only. Here’s how you play the game: Instead of buying a
home now, you decide to wait until the mortgage rate
drops for a lower monthly payment. Meanwhile, you risk a
substantial rate increase in the cost of the home. You do not come out
a winner if, by the time the mortgage rate drops, the
mortgage amount has risen. Then your monthly mortgage
payments would be much higher. You’ll be paying more per month than you
would have if you had gone ahead with the original purchase. Before you decide to play the waiting game, keep
two things in mind. Home prices are still rising. And interest rates
are not likely to fall dramatically from their current levels. Nobody
knows for sure.
Don’t forget your tax deductions.
If you’re renting a home, the monthly rent may be
higher than you think. that’s because home buyers are allowed to
deduct mortgage interest and property tax from their federal income
tax. Next time you sit down at the kitchen table to plan the family
budget, work out your tax advantage from home ownership. Clearly,
the advantages of home ownership touch every aspect of a family’s
life. But in terms of pure investment, nothing figures stronger in a
family’s economy than their home. A family’s money simply cannot be
more wisely spent.
Selling your present home: do it yourself or use a realtor?
If you are like many home shoppers today, you
presently own a home, and are quickly growing out of it. Your family
is larger than it was, and your earnings are greater. You can afford
to move up, and the equity you’ve built in your present home enables
you to meet the demands of today’s larger down payments.
The decision to forego using a realtor and sell your
present home yourself may have advantages - particularly in terms of
saving the Realtor’s commission. But will you save in the long run?
Realtors services are invaluable for a variety of
reasons. Even the simplest real estate transaction is complicated.
Realtors are trained professionals with the know-how, resources and
time to properly market your home and to efficiently handle the legal
and financial details of a sale. Working as they do on commission,
their interest is in achieving the best and quickest sale of your
home. Realtors are facilitators who take on much of the hassle of
buying and selling real estate so that all the parties involved
achieve satisfaction with a minimum of bother.
Just how are those crucial contacts made that match
purchasers to homes? Only nine percent of all homes sold are
accomplished through direct sales from classified ads in the
newspaper, the avenue through which most For Sale By Owner business is
conducted. About 16 percent of home sales are made as a result of
buyers seeing For sale signs in front of houses that appeal to them in
terms of location and aesthetics. Some For Sale By Owner purchases are
made that way, but many more through realtors.
About 18 percent of home sales are made because of
buyer response to an ad, though the advertised house is not the one
eventually sold to the purchaser. Another six percent of buyers make
the same realtor contact, with the same results, from attending open
houses.
A whopping 54 percent of home sales are made as a
direct result of purchaser recognition of the name of a real estate
firm, or through direct dealings with a professional realtor the
purchaser has come to know and trust.
Whether you’re buying or selling a home, here’s what a realtor
can do for you:
- Provide a list of pre-screened prospects - people seriously
interested in buying a home or a list of available properties in
various neighborhoods and price ranges.
- Determine the fair market price of a home at the time of sale -
helping to assure top dollar for your property.
- Show the buyer only homes that fit the bill pressure-free.
- Supply information about zoning codes, neighborhoods, schools,
churches, transportation and shopping centers.
- Answer questions objectively. Realtors don’t have personal ties
or fond memories concerning the property and will point out both
advantages and defects of a home.
- Advertise the property to gain maximum results and provide
referrals from others.
- Pre-screen all prospects, set up appointments and personally
show the property.
- Sell the property and obtain a firm offer without pressuring the
buyer.
- Assist the buyer in obtaining a mortgage, the amount of down
payment required, points, escrow, property taxes, closing costs and
utility bills, as well as figuring the approximate monthly payments.
- Guide you through the paperwork at closing time to assure that
title evidence and all other documents are properly and legally
executed.
- Operate under a strict code of ethics enforced by the National
Association of Realtors, assuring you the most competent,
professional and ethical performance available.
The element of time has become critical to the process
of buying and selling homes as the “move-up market” has become the
dominant, driving force behind today’s residential real estate
business. In order to make it possible for people to buy new homes,
many must sell their present homes before or at the same time they
purchase and close. By using the services of a realtor, you are
exposing your home to the maximum number of potential purchasers,
gaining the marketing and procedural expertise often necessary to
expedite your sale and reassigning many of the myriad duties and tasks
necessary to the closure of a sale that otherwise would take up your
valuable time.
The advantage in time saved by you, and effort
expended by the realtor, could easily make the difference in whether
or not you close on the home you want to move up to. |
