First Time Home Buyers: Here are a few more things to think about before you start to buy a home….
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
Thursday, October 29, 2009
Tuesday, October 27, 2009
Real Estate Agents Finding you a Best Buy!
In previous blog spots we have discussed the three different ways to identify “Best Buys”.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
Monday, October 26, 2009
Why Is This Still a Good Time to Buy Real Estate?
Even though it may be too late to take advantage of the First Time Home Buyer $8000 Tax Credit Program, if you aren't already in escrow, it's still a very good time to buy for other reasons.
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
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