There has been a lot of press lately, touting the benefits of renting and the negative aspects of purchasing a home. Where are the qualified/motivated buyers and sellers, on the “sidelines” waiting for their consumer confidence to magically reappear and property appraisals to return to 2005 values?
We may never see 2005 property values again but one thing is certain; Americans have to live somewhere. Is renting really the best answer for everyone? Let’s take a look at some of the current myths regarding home ownership.
“There are no mortgage loans available” Most mortgage lenders are ready, willing, and able to loan money to borrowers with a 620 or better credit score that have verifiable and acceptable income to debt ratio.
“There are currently no federal tax credits” The first-time home buyer tax credit has expired but with all-time low interest rates, savings easily eclipse tax credit amounts over the course of a thirty year mortgage. Standard federal tax deductions still apply to home purchases as well.
“Foreclosure and short sale homes are too difficult to purchase” It’s true that distressed properties have their own set of purchasing guidelines but, with proper education, expectations, and representation, the right purchase can mean instant and substantial home equity. (Remember it doesn’t cost anything to hire a buyer agent, as all commissions are paid by the seller).“I can’t sell my home right now because I’ll have to take a “loss”
Property Values have decreased and market inventory has increased over the last 4-5 years but, for those sellers who plan on purchasing another home, it makes financial sense to sell. (If your home appraised for $200,000 several years ago and you sell for $150,000 and you then purchase a home that appraised for $400,000 several years ago for $300,000, there is a net savings of $50,000).
“Real estate agents charge too much” Real estate is a commission based industry and has always been so. Yearly legislation, mortgage, and contract updates/changes require that agents continually seek education. Agents pay their brokers monthly and yearly fees related to insurance, office staff, education, and other services. In today’s real estate market, for every 25 customers an agent spends time on, about one becomes an actual client.
28 days ago
This is an excellent article by Gary Brockhoff, Atlanta Real Estate Professional> I AGREE WITH ALL HE SAYS! Need a home? Call Earl: 770-377-5793 or email: EARL@EARLPARK.NET