Real Estate Information

Many are waiting to buy until the market hits bottom.  But what they don't know is that by the time we are at the bottom we will be on our way back up.   The time to be making those deals is now, there is a window of opportunity to purchase.  Once we start up the other side you will quickly have many other buyers to compete with and your negtiating power will be gone.

Click on the link below to view a graph that demonstrates the time to buy in this market.

Click here to view graph.

It was just a short time ago that the number one way most buyers found their new home was through a Real Estate Broker.  The internet has now over come that number.  Recent stats show that 34% of Buyers find their home on the internet while 32% find it through a Real Estate Broker.  Obviously these stats are rather close. 

See list below for more details:

                  Real Estate Agent                     32%

                 Internet                                   34%

                 Yard Sign                                 15%

                 Friend/Relative                         7%

                 Home Builder                            7%

                 Newspaper Ad                            3%

                Direct from Seller                         2%

                 Home Book /Magazine                 1%

Internet use has gone from 18% in 1997 to 87% in 2008.  That is tremendous.  But in today’s market I think the truth is that the Internet and Broker are equally important.  You may do a lot of searching on line by your self but if you don’t have a Broker plugged into your wants and needs the really good deals will be missed.  See, Brokers do a lot of networking and when a good, no a great listing comes on the market it is gone before it hits the web.

So, in spite of the rising percentages for the internet, be sure to be in contact with your agent. 

To learn more details give us a call.

The cold weather just keeps coming.  As a note for those of you who were looking  forward to removing your vent and faucet winterization, don't do it yet.  According to the weather man we are still going to have another couple of days of cold wearther.

My flowers are up and primrose, pansies do fine in the cold weather.  So, at least you can get a little color in you flower beds. 

We will be holding an open house on March 15, 3334 Avondale Place in Philomath. Stop by and bring a friend.

Wow, more tax credits, you now can get an $8,000 tax credit if you are a first time home buyer.

What is the definition of a first time home buyer?  Never owned a home before or has not owned a home in the past 3 years. 

It's a great time to buy!

I’m often asked if this is a good time to buy a home.  Some clients are concerned that home prices may fall further than they have already.  They are assuming that the best course of action is to wait for the bottom in the market and then buy.  The problem with this approach is that you don’t know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers.  Call everyone you know who wants to buy their first home (or who hasn’t owned one in three years), this is too good to miss – it’s a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer.  If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit.  Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify.  It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit.  In other words, you take $7,500 off your tax bill.  But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years.  You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment.  You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year.  If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house?  You pay the balance back at the closing.  So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house.  What happens if you do not make enough money when you sell your house?  They forgive the rest of the debt. 

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you’d like to learn more about this program, please call me!