6 GREAT REASONS TO BUY A HOME RIGHT NOW

To take advantage of near-record low mortgage interest rates and home prices undervalued by as much as three percent nationwide, now is a great time to buy a home.

You've already missed the bottom of the market, but that doesn't mean there aren't great buys to be had out there. Your community may not have appreciated as quickly as some of the big metro areas have recently. Your boom may yet come.

To begin with, the economy is growing. From information gathered on or before August 22, 2014, the Federal Reserve's "Beige Book" report found economic activity is up in all eight national districts, including consumer spending, freight loads for deliveries of goods, and more.

But there are even better reasons to buy a home right now. Here are just a few:

More jobs are available

The Labor Department announced that the jobless rate is now below six percent. Consider how far the job market has come since January 2010 when unemployment was 9.7 percent.

Houses hedge against inflation

The Consumer Price for All Urban Consumers is up 1.7% from August 2013 to August 2014, excluding volatile food and gas prices. The food index has risen 2.7 percent over the span, while the energy index has increased 0.4 percent. This is the first month that the index hasn't risen since 2010.

Why is that good for homeowners? Even in a tepid inflationary environment, when prices rise, a major asset such as a home, purchased at a fixed cost, becomes more valuable. Typically, in an inflationary environment, housing prices rise.

Housing price gains are slowing

The median existing-home price in August was $219,800, which is 4.8 percent higher than home prices in August 2013. This marks the 30th consecutive month of year-over-year price gains. In 2013, home prices rose in the double digits.

Mortgage interest rates are still low

According to Freddie Mac's archives, the lowest that mortgage interest rates have been in modern history (since 1971) was in November and December 2012 at 3.35 percent with 0.7 points for a benchmark 30-year, fixed-rate loan, and that was back in 2012 before the housing recovery began in earnest. The most recent Freddie Mac survey found national averages at 4.16 percent with .05 percent points in September 2014.

                                

Pent-up demand ready to release

Household formation has been muted since the Great Recession, preventing as many as 2.5 million people from forming households who otherwise would have. Economists with Harvard's Center for Joint Housing Studies predict that annual U.S. housing starts should average 1.4 to 1.5 million over the coming decade. Considering that the largest generation ever –81 million Echo Boomers -- are well into renting and homebuying age, the numbers should be closer to the 2.3% annual growth of the 1970's, when 78 million Baby Boomers reached adulthood.

Buy VS rent ratios favor homeownership

Trulia, a real estate marketplace and research group announced that nationally, rents rose 6.5% year-over-year in September 2014. Apartment rents were up 6.9%, while single-family home rents gained 5.2%. At the same time, housing prices have leveled off.

The takeaway

A housing market never remains even. There are always surges and dips. Buyers could wait for better market conditions, but the present alignment of low mortgage interest rates, slowing home prices, rising rents and pent-up demand add up to great reasons to buy a home right now.

Are You Really Ready To Sell Your Home?

When you put your home on the market, you may think you're really ready to sell, but if you're throwing roadblocks in front of buyers, you're really not ready at all.

When you're not really ready to sell, you tend to be unrealistic and say things to your friends, family and your real estate agent like this:

"I can sell it myself."

"My home is worth more than that."

"The buyer can fix things themselves."

"Let's price it higher, and see what happens."

Let's address these one at a time. About 15% of homes sold by their owners are successful. Sure you can sell it yourself, but your home is competing with listed properties that are effectively marketed and represented by real estate professionals.   Those that list with a real estate professional also get a 14% higher sales price on average then selling it by themselves.

You may believe your home should be money in the bank. It should be worth more than you paid for it, it should never go down in value, and it should provide you with enough equity so you can trade up to another home, put your kids through college, retire, or meet some other financial goal.

There are times when you can really make out selling your home, and times when you won't meet your goals. If you stay in your home long enough to build equity (at least 4 years or more), don't take out equity loans or lines of credit, and you keep your home in good repair, you're likely to make some money when you sell.

Realistically, your home is only worth what a qualified buyer will pay for it today, not what it was worth yesterday or what it will be worth tomorrow.

Last, most buyers don't want to fix anything, so if your home needs work, you're cutting down on the number of buyers who will make offers on your home. That leaves you with only the buyers who want a bargain or a fixer-upper, which means you won't get top dollar for your home.

If you're serious about selling your home, you'll hire a professional to advise you and help you. A real estate professional will show you the current numbers and comparables and explain current market conditions and how they will impact your pricing and marketing strategies.

You're ready to sell if you're prepared to listen to your real estate professional and follow his or her advice. You're ready to sell if you're willing to do the hard work to make your home appeal strongly to buyers.

You're ready to sell if your price your home to current market conditions, not what you believe you deserve.

Why Using A Realtor Is Important Whether You Are Buying Or Selling

Approximately 85 percent of home sellers use a real estate

professional to sell their homes. But did you know that buyers who are represented are also more likely to have a successful transaction?

Getting a purchase closed in today's market is complex. Buyers face many more hurdles including stricter financing and a confusing marketplace of listed homes, for-sale-by-owner homes, foreclosures and short sales.

Your area may be in a buyer's market with lots of inventory available and falling prices, or you may be in a seller's market with homes selling out from under you before you can write an offer. Either way, you'll be better off navigating the market with an experienced guide.

To take advantage of today's near-record low interest rates, attractive inventory levels, and price rollbacks from decade highs, you need a sales professional to help you close the deal.

A good real estate professional understands the current market. He or she has house-by-house neighborhood experience and help you obtain the right house at the best price and terms. Professionals share their knowledge of homes coming on to the market, through the multiple listings service and through networking.

You can search for homes online, but do you know about the homes coming onto the market? Your real estate professional will tell others about you to make sure you learn about upcoming homes for sale before they hit the online sites. Many homes are bought and sold this way, without a sign ever going into the yard.

Real estate professionals work primarily on commission. If the deal of the century is about to come on the market, who do you think your agent will tell? The buyer who thinks he'll get a better deal by working every agent, or the buyer who is loyal?

Here are some tips on how to work with your own agent:

If you want great service, show appreciation and commitment. 

• Get prequalified with a lender by sharing your financial records so you know exactly how much home you can buy.

• Work with only one agent. If it's customary in your area, sign a buyer's representation agreement.

• Stay in contact. If you want to look at open houses or builder homes, invite your agent to come along. If she's not available, show your loyalty by telling the salespeople you meet that you are already represented.

• Don't hide pertinent information from your agent, or she will be in the dark about key issues that could impact your transaction negatively.

• Once you find the house you want, the work really begins. You'll need help navigating negotiations, loan approval, seller's disclosures, inspections, repairs, and much more. Your agent will share your risk, and will make sure you go into any home purchase with your eyes wide open.

Take advantage of the greatest homebuying resource available - a real estate professional.