Carissa Hopkins-Hoel

There is exactly 101 days left until the first-time homebuyer and the move-up buyer tax credit comes to an end. Putting that in perspective means you must buy now! If it takes around 30 days to find the right home and then another 30 to 60 days to close depending on financing, terms and conditions; it could mean that you are right down to crunch time. When you think that April is a long way off yet, you might want to rethink your position of sitting on the fence and make a move towards your new home.

Wednesday, January 13, 2010

Moving Up in a Down Market

Now may be the time for the prudent home buyer to make the big move. I have four good reasons why 2010 is the time to make the move up to more square footage, a new lifestyle dwelling, an easy access floor plan, or a greener home. My top four reasons:

First, consider the net loss from the sale of a current home compared to the net gain from the purchase of a new home. Sellers in today's market might experience a 10% loss compared to selling a year or two ago, but they would benefit from the market decline when they purchased their new homes. Typically, a seller's new home will be twice the value of his or her previous home. It may look like this: Seller A's home was valued at $150,000 one year ago and sells at $135,000. Seller A experienced a 10% loss or $15,000 in her mind's eye. Seller A returns to the real estate market as Buyer A and purchases a home at $270,000. This home was valued at $300,000 in the previous year. The net gain to this buyer, now turned seller, is $10,000. This is my top reason to move up in a down market. Prices of higher priced homes have generally declined more than prices of lower priced homes.

Second, the buyer tax credit adds another $6,500 incentive to make the move up in a down market. Sellers who have lived in their current residences for at least five years are generally eligible for the new move up tax credit. If a home owner considers the price his current home would bring and the adjusted savings he will receive on his new property, plus the federal tax credit, the move up scenario sweetens.

Third, the current interest rates. With home mortgage interest rates well below the forty year average, most loan applicants are receiving a thirty year, fixed rate below six percent. Add up the net gain in purchasing up in a down market, the move up buyer tax credit, and the current low rates, and the consumer interested in purchasing a new home has a prudent decision to make.

Fourth, we may be experiencing the final months of the buyer's market. With inventory on the downturn and the number of sales on the rise, the number of homes available per buyer may soon be in a balanced position where neither buyer nor seller has an advantage. After careful consideration of the long-term financial gains for moving up in a down market, it is also important to consider the lifestyle enhancement reasons that influence the move up.

We have experienced a lengthy thirty-six to forty months of housing recession and it has produced an enormous amount of pent-up buying demand in individuals and families who want or need to move. The reasons for the pent-up desire to move vary from wanting more space to a desire for a greener or more energy efficient dwelling to wanting to be closer to employment or family. Whatever the reason, now is clearly the best time.

Author Steve Hansen, Tami & Steve Team, Real Estate Coach and Speaker (Coldwell Banker Burnet)

Inventory is low and things are looking up! The real estate market has really taking a swing on the pendulum the past year. As 2009 came to a close interesting trends came into light. 2009 shined over 2008 for homes sold. 1,087 homes sold in the year 2008 and 1,106 homes sold in 2009. A nice 2% increase for the local St. Cloud market. In addition average days on market decreased by 2%! Although average sales price for a healthy home (non-foreclosure) was down 2% we saw that sale price was 96% of the list price.

We need homes on the market right now! With currently only 692 homes available (lowest in a decade) there is only a seven month supply. In other words if no new homes came on the market we would run out within seven months!

Take advantage of the move-up tax credit! If you've been in your home for 5 consecutive out of the last 8 years and sell your home and purchase another home you can receive a $6,500 tax credit. This offer from Uncle Sam only lasts until April 30th. You must have a valid purchase agreement by April 30th and close by June 30th to qualify. What other reason do you need to get your home on the market right now!

Ok, now that the holidays are over and everyone is back in the swing of things or better known as normalacy! Valentines is right around the corner! I know a fabulous gift idea! Jewelry!!!! Many people may have heard of Lia Sophia. It's a great jewelry line that offers a wide variety of color, silver, gold, and stone fashion jewelry. It is high quality and very stylish. I myself wear the jewelry. For those of you who think that might be right up your alley for a great Valentine gift or any other special event I'd like to recommend Amber Morrighan. She is an advisor with Lia Sophia and delivers great customer service. I only recommend people who give as good as service as my team gives!

Amber can come into your home for a personalized party to invite your friends and family and have a fun night of tyring on jewelry or you can order directly from her. She carries a large inventory of the jewelry for those of you who'd like to see some pieces before ordering. Check out her website at www.liasophia/ambermorrighan.com

Ok, now that the holidays are over and everyone is back in the swing of things or better known as normalacy! Valentines is right around the corner! I know a fabulous gift idea! Jewelry!!!! Many people may have heard of Lia Sophia. It's a great jewelry line that offers a wide variety of color, silver, gold, and stone fashion jewelry. It is high quality and very stylish. I myself wear the jewelry. For those of you who think that might be right up your alley for a great Valentine gift or any other special event I'd like to recommend Amber Morrighan. She is an advisor with Lia Sophia and delivers great customer service. I only recommend people who give as good as service as my team gives!

Amber can come into your home for a personalized party to invite your friends and family and have a fun night of tyring on jewelry or you can order directly from her. She carries a large inventory of the jewelry for those of you who'd like to see some pieces before ordering. Check out her website at www.liasophia/ambermorrighan.com