Barry Kushner

There are numerous reasons to buy a house now - assuming you really want to. And by "now," I mean within the next 6 months.

Even though the economy is a mess, unemployment rates are higher than they've been in a generation, and home sales are sluggish, there's never been a better time to be a buyer.

In fact, many experts are starting to call this the perfect storm for buyers - especially first-time buyers. Why is this so? Here are a few reasons why:

1. This Is the Strongest Buyers Market in Many Years

There are more homes on the market now than at any time in history. In Philadelphia and the Bucks County and Montgomery County suburban communities, there's about 8 months worth of housing inventory at the moment. That means it will take 8 months just to sell all the homes currently on the market - not counting all the new listings that may come onto the market.

This glut of available homes - in virtually every price range and every neighborhood - has been caused in part by the high number of foreclosures and short sales (where the proceeds of the sale won't cover what's owed on the mortgage) that have flooded the market.

For buyers, this means more sellers (including banks) desperately need to sell, which often translates into lower prices and more sellers who are willing to pay a big chunk of your closing costs. (That's called getting a "seller's assist.") So why not take advantage of this situation that's oversaturated with unsold houses?

2. Mortgage Interest Rates Are Quite Low - and May Be Going Lower

This is an unusual time, because it's extremely rare that such a strong buyers market is coupled with mortgage interest rates in the mid 5% range for owner occupied homes. For smart buyers, this is an unprecedented opportunity to combine strong bargaining power with very reasonable fixed rates. (Note: The national average for a 30-year fixed rate mortgage is 5.65% as of December 8, according to BankRate.com. And for a 15-year fixed, it's 5.38%.) And there's an excellent chance the rate will drop into the mid 4% range by early '09, if the federal government acts on a plan suggested last week.

3. Home Prices May Be Starting to Rise Again in Our Market

It appears that the real estate market is at or near the bottom of its three-year downward spiral. Since no so-called expert has a crystal ball, no one can predict how long it will take for home inventory to shrink and prices to start rising again. And it's nearly impossible to time the market. So, if you want to buy now, why wait until prices are already rising? If you're planning to buy within the next year, this is probably as good a time as any to get a good deal.

Note: Even though the number of new homes sold and the number of new homes built have continued to decline each quarter in the Greater Philadelphia area, while the average number of days on market has continued to rise, the average selling price already is rising in most counties, including Bucks, Montgomery and Philadelphia. That's certainly a positive sign for sellers who've been waiting anxiously for prices to go up again, but it's also helpful for buyers, because it tells us that the great bargains may not be there too much longer.

4. Real Estate Is a Key to Personal Life Satisfaction - Now More Than Ever

Studies show that people who own their own home are financially more stable, healthier, more involved with their communities, and more satisfied with the quality of their lives than are renters. With the national median home price rising by about $85,000 during the 2000 to 2005 housing boom, many experts agree that home ownership, though more difficult for the average American to attain, is still very much worth the effort.

Plus, because home ownership is moving out of reach for so many people, you really don't want to miss the boat on owning rather than renting. Home ownership is great for people who are "on the escalator" of rising prices, but it's alarming to economists and sociologists concerned that many middle income people may not ever enjoy the health, social and economic benefits of home ownership if this trend toward rapid bursts of rising home prices continues. It's a powerful argument for anyone considering a home purchase to stop procrastinating.

5. Real Estate Historically Is a Great Investment - Even in Tough Times

Buying real estate is your opportunity to build up equity. In fact, take a look at how the median home price in the US has risen since 1970:

1970 $ 23,000

1975 $ 35,300

1980 $ 62,200

1985 $ 75,500

1990 $ 95,500

1995 $113,800

2000 $139,600

2005 $225,300

As you can see, the price of real estate has jumped over time - sometimes dramatically. A buyer who purchased a home for $140,000 in 2000 could easily be sitting on $90,000 or more in home equity today, and all with very little cash out of pocket. Sometimes the increase in home values is slow (as it is right now) and sometimes it's rapid (as it was from 2000 to '05). But housing values, like the stock market always rise over time.

6. It May Be Cheaper to Buy Than to Rent at This Point in Time

Because home prices have fallen so dramatically over the past three years, coupled with historically lower interest rates that, as I mentioned, may be going even lower, it makes very little sense for most renters not to seriously consider buying. If you'd like to compare the costs of renting vs. buying, please let me know and I'll be glad to email you a set of ballpark numbers based on your particular situation. I just need to know how much you're currently spending per month for rent, and the home price range you're most interested in. My software will do the rest, so you can see for yourself whether buying beats renting.

7. Take Advantage of the $7,500 Tax Credit for First-Time Buyers

The Housing and Economy Recovery Act of 2008 authorized a $7,500 tax credit for qualified first-time buyers. But you must use it by June 30, 2009 - or risk losing it.

Even though it's really more of a low interest loan than a no-obligation credit, because it must be repaid over time, this income tax credit is still an excellent program designed to make it easier for first-time buyers to become home owners.

If you'd like to read a comprehensive FAQ that explains all the details of the program, please visit www.TaxCredit4U.com. If you'd like to listen to a tape recorded message from Gateway Funding about the tax credit and how it relates to applying for a mortgage, please phone this toll-free number: 800-404-4787 xt 7502.

8. You Have Your Own Best-on-the-Web Home Search Site

Until recently, buyers had to wait for real estate agents to email listings to them via Trend, the Multiple Listing Service (MLS) for the region. Now, though, you can return to my home search site, www.Search4PA.com, whenever you wish to search for homes.

In fact, if you know anyone who's looking for a home now or in the future, please share the link with them. I'd appreciate it. They probably would too, since there's no other site quite like it in the Greater Philadelphia real estate market.

I think www.Search4PA.com (aka www.FindPAhouses.com) is a very special site because it has every listing that's in the Trend MLS database for all of Southeastern PA. Plus, it's very consumer friendly, the photos are larger than they appear in Trend, and every listing appears on Google Earth maps. (The photos lose a little sharpness, but it's a tradeoff of making them bigger.)

Using this site means buyers no longer have to wait for emails from TREND to view listings. It lets them become very proactive with their home search.

Most buyers tell me they love using it. And even though they have to register to search for homes, no one other than me sees their registration info.

Like many aging baby boomers, I've had more than one career. I started out as a print journalist during the 1970s, working for newspapers and magazines. In the '80s, I moved into public relations, advertising and marketing, ultimately becoming a partner in a suburban ad agency. It wasn't until the '90s that I started selling print products, and ultimately Internet marketing programs, to Realtors - long before becoming a Realtor myself.

It was while working for one of Philadelphia's best business-to-business ad agencies in the early '80s that I internalized the mantra that drives my business style today. That style can be summarized in three words: friendly, helpful, authoritative.

I learned it from Joe Meehan, an extraordinary creative director and copywriter, and a real character straight out of the hit TV show Madmen. Joe was a twice divorced alcoholic who had a couple of heart attacks and eventually left advertising to become an Episcopalian minister. His concept of working with advertising clients was to be friendly enough to feel comfortable working together, helpful enough to produce whatever the client needed, and authoritative enough to tell the client when they were right and when they were dead wrong.

As a buyer's agent in today's insane real estate market, I practice the friendly, helpful, authoritative mantra routinely. Upon first meeting a prospective buyer (or seller), whether over the phone or in person, I try very hard to create a friendly atmosphere. I explain how I'd like to work with them, I ascertain their home buying (or selling) needs, and I ask a lot of questions. I try not to be too intrusive about their personal lives during the initial conversation but, let's face it, entering into a possible real estate transaction is about as personal as you can get short of being invited into a buyer's bedroom.

At this point - well in advance of the helpful and authoritative aspects of my real estate practice, I see if my newfound friends are behaving in a reciprocal manner. Are they being as open and honest with me as I am with them? Are they acting in an equally friendly way with me, or are they exhibiting any hostility toward real estate agents in general and toward me in particular? Do they appear to be forthcoming about their true wants and needs and desires? Or are they holding back, for fear of revealing too much too soon about the home they're seeking (or selling)?

What I find is that buyers fall into several different categories of openness and honesty. Those who are relatively closed to my encouraging suggestions that they share their hopes and dreams and aspirations with me aren't likely to ultimately buy with me. These folks see me not as a friendly, helpful professional who can help them buy (or sell) a home, but as a necessary evil to be used and abused. Thankfully, I haven't worked with very many of these buyers and sellers. A few of them went out looking at homes with me once or twice before switching to another agent. Most of the time, the feeling was mutual. My gut always tells me when I just don't like dealing with a particular person.

Those buyers who truly open up to me, who explain in some detail the kind of home they're seeking - and especially why that particular type of home, with those specific features, works for them - well, those are the buyers with whom I form a real bond. For those buyers I tend to work very hard, exhaust all my efforts, leave no stone unturned in search of the home that's perfect for them. No matter how long the process takes.

For not only do I want to be friendly with them, I want to be quite helpful and authoritative as well. I'm in this business not to become their best friend, but to be the best possible friend they can have within the business of buying and selling real estate. For them, I'm eager to employ all the skills I've learned while enduring all those Continuing Education courses that Realtors must suffer through. For those buyers who really and truly open their blessed buyer hearts to me, I want nothing more than to be as helpful and as auhtoritative as I possibly can be throughout the home buying process.

Most of my buyers these days come to me because they've found my technologically wondrous IDX-based home search site, www.Search4PA.com. There's nothing on it about me whatsoever. The site has no photo of me, no bio with designations and awards, not even my email address or direct phone number. Yet, it generates numerous buyer (and some seller) leads. That's simply because when people decide to search for listings on the Web, they just want to find a site that will show them all the homes within the geographic area where they're searching. They really don't want to form a personal connection with an agent - not yet, anyway.

But after they've searched for homes on my site for awhile, and after they've received the automated email alerts of new listings that match their search criteria, and after they've used my site and those listings alerts to help narrow their search - well, that's when they call or email me for help. At that point, when they need more information about a listing or a neighborhood, or they're ready to schedule a few showings, they need a Realtor like me.

That's the point in real estate where the technology meets the personal. For instance, I went looking at homes last weekend with a new buyer client who's been using my search site for the past six months. When I asked why he chose me as his buyer's agent, he explained that he's been using three different agent search sites, but he liked mine best.

"But all three sites have the same information," I explained, "because they're all based on the same MLS data feeds. The data is just tweaked a little differently by each site's vendor." (He's an IT guy, so I was comfortable speaking jargon with him.)

"Actually," he said, "I liked the drill down map views on another search site, and I liked a couple of features on a third site. But yours had the most comprehensive information, so that's why I decided to work with you."

Fair enough, I thought. He found the technology that my site offered to be the most...helpful. So he was already sold on my helpfulness before I even asked him to sign a Buyer Broker Agreement with me. And, as it turned out, he was completely open with me about the type of home he was seeking. He and his wife were willing to listen to my suggestions about the decisions they still need to make about choosing the right neighborhood, style of home, motgage program, and so forth.

Now, I don't know about you, but that's my favorite kind of buyer.

You need to buy a home, or perhaps sell one and buy another. So where do you start your search?

Once upon a time - that is, before about 1996 - you simply called or stopped into a real estate office and asked to see the agency's big MLS books filled with home listings in your price range.

Now, of course, you surf the World Wide Web because everyone knows that's where all the listings are, right?

Well, maybe not all of them, but certainly the vast majority of homes can be found on the Web. Since 2002, Multiple Listing Services all over America have put their members' listings online via a program known as Broker Reciprocity (also known as Internet Data Exchange or IDX).

This simply means that the real estate brokers who control the listings agree to share them with each other, on the theory that by allowing other brokers to display each other's listings on their respective Web sites, the listings all receive more exposure. And the more exposure any home gets, the greater the chance it will be found by a ready, willing and able buyer.

In the Delaware Valley, Trend is the MLS created a couple of decades ago as a cooperative among participating brokers to share listings. Now, it also licenses companies known as IDX vendors to develop and host Broker Reciprocity sites for members. Each of these vendors then develops its own unique version of the Trend database, and sells that version to real estate agents and brokers for use on their personal or agency Web sites.

In the beginning of the IDX phenomenon, agents and brokers simply created a link on their sites to the IDX pages. Sometimes the links were framed and other times they appeared to be integrated seamlessly into the sites that hosted them. But IDX pages, which often have names like "Search All Local Listings" or "Search the MLS," were always part of an individual agent's or agency's site - and didn't exist on the Web as a stand-alone entity.

That is, until very recently.

If you've surfed for homes lately, you've no doubt encountered a growing handful of sites encouraging you to "search here for homes." These sites promise, in their brief but highly effective link descriptions, that by clicking "here," you'll get to see all the listings in the MLS, plus lots of photos and prices of the homes. Some even mention that you'll find home values - and this is especially appealing to sellers who want to know what their home might be worth to a buyer without having to call and ask a Realtor for a CMA (Comparative Market Analysis).

For example, my stand-alone IDX site - www.Search4PA.com - entices visitors who happen to find it on a Google or Yahoo search, with the line, "Search 1000's of Beautiful Homes. Large Photos, Virtual Tours & Maps!"

Most stand-alone IDX sites have several things in common. For starters, they usually list every "active" listing within the MLS for the counties covered by their agents. The moment a home goes under contact, or the listing has expired or been withdrawn from the market, it no longer appears on the IDX site. So, it can be here today and gone tomorrow.

For another thing, the listing broker's contact information most likely will be conspicuously absent. That's because Realtors who pay for their own IDX site want you to contact them - not the listing agency that's graciously sharing the data. Using my agency's example, we simply insert the words "courtesy of..." alongside the broker's name for every listing that our IDX site displays. We certainly don't use the broker's phone number on our site, because we want you to contact us, not the listing broker - which is the whole point of Broker Reciprocity.

Lastly, many IDX sites will ask you to register with your name, email address and perhaps a phone number in order to view the listings. Known as forced registration, this technique ensures that you will become a lead for the agent fortunate enough to receive your information.

Some IDX sites - www.HomeGain.com, www.HouseValues.com, www.RealtyTracker.com - sell your registration data to an agent, or even to multiple agents, who then vie for your business. Typically, agents pay $35 or more per buyer name to receive leads from these third party IDX sites. It's helpful to know that by registering on these sites, you've become a sales lead for agents. This is especially annoying if you really don't want to be besieged by agents who will ask by phone and/or email to help you find a home.

Naturally, all the big national and regional real estate companies - Re/Max, Coldwell Banker, Keller Williams, Weichert, Prudential Fox & Roach, and so forth - have their own IDX solutions built into all their office and agents' sites. Some, like Re/Max, have developed their IDX systems in-house, while others use existing technology from a recognized vendor. Keller Williams, for example, uses www.MLSfinder.com from WolfNet Technologies, while Prudential Fox & Roach's IDX is powered by www.NetEconomist.com.

Still other sites you may come across on the search engines may seem like IDX sites, when in reality they're nothing more than listings aggregators. One such example is www.Homes.com, which takes the listings of all the agents who use its services (and the services of its sister companies like www.HarmonHomes.com and www.AdvancedAccess.com) and compiles those listings onto its pages. Yes, you'll see many homes on aggregator sites, but you won't see every home within the MLS.

So, if you want to see all the listings in the neighborhoods that appeal to you and the price range you can afford, you need to find and use a true IDX site. And you also need to understand that, once you've found it, you can build your world around it.

As an agent who specializes in working with buyers, I'm continually amazed at people who visit numerous IDX sites all offering identical data - even though the data are displayed differently from site to site. These buyers seem to hope that if they conduct enough searches on multiple sites, they'll ultimately find their dream home. I've had buyer clients who would email me regularly that they found such-and-such listing on so-and-so's site and would I see if it's still on the market. Assuming that each IDX vendor updates its data daily, the status of a home appearing on one version should be the same as its status on another.

As you surf the Web looking for homes, you should look for three things in a stand-alone IDX site that tend to differentiate them:

1) Does the site make it easy to view the listings you're most interested in once you've registered? Even the best IDX sites take time to load all the listings for a particular search. But once loaded, is the site consumer friendly and are the data intelligently organized?

2) Is the information on each home comprehensive, and are the photos large enough and clear enough to give you a feel for a particular home? Each IDX vendor decides how much data to display for each listing. When you click the "More Information" button for any home, are you really getting complete data? Or are you teased further and forced to contact the sponsoring agent?

3) Does the site automatically email you new listings that match your search criteria? Many IDX sites permit you to fill out a form with your search criteria and contact information, so you can receive listings via email. But some sites, like mine, do this automatically based on your initial search. And it even lets you change your search criteria as your needs change whenever you log back onto it.

The Los Angeles-based startup company that programmed my agency's IDX site as well as my personal IDX version - www.Search4PA.com, took these factors into account. When you visit the site, you're struck immediately by its comprehensiveness and its timeliness. The site gives you an up-to-the-moment count of how many homes are for sale within the six counties of Southeastern PA, and even provides a random example of the listings you'll see.

Then, as soon as you conduct your initial search, it tells you how many homes it found that match your search criteria - plus another random example of a listing that matches that search. And at that point, you're finally asked to register. So, if you want to see in-depth information of all the homes that match your search, plus as many photos as the listing agent has entered into Trend, you either sign up or go elsewhere.

Certainly, not even close to every visitor to my site, or to any IDX site, registers. Typically, only about 10 percent of all Internet surfers who find my agency's IDX site even bother to click on it. And only 10 to 15 percent of those visitors who click on it ultimately fill out the form. Of those visitors who do register, I'm able to work with only a very small percentage of those buyers, usually no more than 1 to 2 percent of them.

Why such a small percentage? It's simply because, when it comes to real estate, the Web is an enormous numbers game. For every 10,000 surfers who see a "search for homes" site pop up on their screen for their specific search, only one or two of those people actually will buy a home from the agent or broker who owns that site. And most of those people will take a year or more from the time they start their search until they close on the home of their choice.

Since August ‘07, when my agency's IDX site went online, we've received well over 3,500 registrations. If just 1 percent of them buy a home from an agent in our office, that's 35 buyers we'll have helped to find a home. I've already worked with a handful of these buyers, as well as a few who've had to sell their homes before buying, so I'm satisfied that my IDX site is a very powerful tool that lets me find new clients in a very difficult real estate market.

Plus, I tell buyers - who've found me through my other marketing efforts - to visit my IDX site if they want to become very proactive about their home search. Most buyers thank me for providing this service. It also frees up my time somewhat, since I don't have to manually email listings to buyers via Trend, as most agents do.

However, I still email listings to some buyers via Trend, because my IDX site doesn't yet have the ability to search for homes using criteria like specific neighborhoods or subdivisions, school districts or zip codes; ages of homes (including new construction); style of homes; lot sizes; and whether a home has popular features like central air, basement, garage and a fireplace.

It also takes a bit of trial & error for agents to figure out how best to follow up with their leads. Traditionally, when an agent gets a lead, regardless of the source, he or she phones the prospect - or at least emails them - to initiate a dialogue. But with a good IDX site, that's not necessary.

Usually, I let people conduct their searches and receive the automated listings emails for two or three weeks before I bother to call or email them, offering to help. That's because IDX sites are addictive, and surfers who come upon a good one will stick with it until they're ready to contact me. Once you're hooked on using a given site, you're more likely to use the services of the agent or broker whose name and contact information is attached to those emailed listings alerts.

Occasionally, though, buyers - who already are using the services of another agent - will use my IDX site to find and forward homes they like to their current agent. I know when this happens, because I can see exactly what they're doing on the site and when they're doing it.

My site's back office lets me see - in real time - whenever a user clicks on a listing email, conducts a new search, clicks on a particular home, or forwards a home to a friend, family member or another agent. So, yes, Big Brother really may be watching you online. Although I certainly don't have the time to check up on all of my buyer leads and what they're doing on my site every minute of the day, I randomly spot check to make sure no one is abusing the privilege. And I've even had to change people's usernames and passwords to prevent them from using the site if I feel they're not being honest about wanting to use my services.

Realtors like me who use IDX search sites know that we can count on the business these sites generate just as surely as buyers can count on finding them - and thereby finding all the listings within the MLS - with greater regularity.