Folks, there is a reason it is called a buyer's market. The market is  in your favor! A buyer’s market means that prices and terms are to  your benefit. A buyer’s market is the time for buyers to buy.

Due to the large inventory of homes, prices have become more competitive and, therefore, more affordable for buyers. Location is still a key factor when purchasing a home; some areas are over valued and will remain so because of the ageless rule: Supply and Demand. Prices may be fairly priced in one area, under valued in another neighborhood and still slightly over valued in yet another.

Currently, according to National City Corporation, the home prices in Calvert County are fairly priced. In fact, most of housing in the nation is now either fairly priced or slightly under value. In 2008, home prices declined by only 3% in Calvert County with most homes selling close to asking price (within 5%). This demonstrates that homes are now selling for what the market will bear and what buyers can afford.

I previously stated that “terms” are in your favor and that is true. Although there is a credit crunch in the mortgage industry, home loans are still being offered at affordable rates.
 
Conventional loan guidelines have tightened up making it harder for those with less than A1 credit (FICO score of 700+) to obtain loans. Many lenders are requiring higher down payments than a few years ago. Mortgage lenders have gone back to old-fashioned guidelines: good credit history and savings ability. For the strong borrower, these factors are not a hindrance.

For those with less than a 700 FICO score and with less than 20% down, there is still a lender that is willing to extend credit to those seeking home-ownership. That lender is FHA (Federal Housing Authority).

FHA offers loans requiring only 3% down with very competitive interest rates. FHA credit guidelines have not changed and are more flexible than most conventional mortgage loans allowing higher debt ratios and less than perfect credit. Even those with a bankruptcy in their background may find they can qualify for an FHA loan. In addition, FHA has temporarily raised its loan limits for Calvert County to $729,740. Unless Congress votes to make the loan limit permanent, it will revert back to its previous limit of $362,790 on  
December 31, 2008. That is a lot of buying power to lose.

Markets all over the nation are seeing an increase in sales and mortgage loan applications have increased steadily for the month of July. These are indicators that the housing market is making a shift.

I doubt that the “Glory Days of 2005 and 2006” are on the horizon, but the market will shift causing buyers to be in a less advantageous position. If homeownership is something that you have been considering, contact an FHA approved lender to determine your purchasing capability.

Myrtle Beach is a buyer’s market right now… and it’s a tough environment for sellers. The real estate market is out of balance, i.e. the number of properties for sale far outweigh the number of actual buyers. Many properties languish on the market for months.

Today’s Q & A in this series – Answers to the Ten Most Common Questions Home Sellers Ask – speaks directly to this issue.

Question #4 – “How long will it take for my Myrtle Beach home to sell?”

Local real estate boards keep track of the average length of time properties stay on the market in the area. In Myrtle Beach, for property actually sold over the last 30 days, the average number of Days On Market (DOM) was 182 for sold homes and 286 for sold condos. Many of the unsold properties have been on the market far longer.

Why is it taking so long to sell property in Myrtle Beach? The primary reason is overpricing - sellers are having a hard time coming to terms with sales prices in a declining market. They price their property above the current market and discover too late that buyers aren’t interested. There are too many other choices. And when sellers do lower their prices, they lower them too little, too late.

Prospective sellers should pay close attention to the time frames established in their listing agreement before they sign with an agent. In a declining market, time is money, i.e. the longer the DOM, the lower the sales price. A key question for sellers to consider is: “What will happen if my home doesn’t sell within the prescribed time?”

Next Week: “Can I save money by selling my home myself?”

All ten answers to these common questions are available on request. Just call my 24/7 hotline, toll-free, at 1-888-494-8654, Ext 225 and follow the recorded directions. I’ll get them in the mail to you within 48 hours.

A continuing weekly look at For Sale, Pending and Sold statistics by ZIP code (for the ZIPs in which I primarily work which includes 85020, 85022, 85024, 85028, 85032, and 85050). Check back on Sundays for a drill-down look into the numbers in your ZIP code. Have a North Phoenix area ZIP that doesn't show up here? Email or call me and I'll add it for you.

This week shows continued slow & steady improvement over last week. The PENDING numbers in every ZIP code covered are up, which is a great sign. The numbers of SOLD homes are up in all but 1 ZIP code, also a great sign.

However, we're still nowhere near normal for most ZIPs. Most forecasters & Realtors agree that a 6 months supply of inventory is about "normal". It's interesting to note that 85024 is very close to that ideal. Sellers in 85024 - don't despair! You're near the bottom. Buyers wanting to get into 85024 - hurry up, it might not be a buyer's market there for much longer.

The downtrend in the Myrtle Beach real estate market has continued in 2008 according to MLS data.  Condos sales are down 34%, while prices are down 20%. Home sales are down 27%, while prices are down 7% year over year, January through June.

The condo market has been hit the hardest because of the dramatic run-up during the 2004 – 2005 boom. Single family homes prices didn’t gain as much and haven’t gone down as much over the same period of time.

What will it take to turn the market around?

Lower prices, the mortgage market, and buyer confidence are the keys to a turnaround. At some point lower prices will attract new buyers. But they will have to be able to get loans. With the mortgage market so tight right now, “cash is king,” unless you have very good credit. The politics of the presidential election is also creating uncertainty.

How long will it take to turn the market around?

No one knows for sure… a lot depends on the economy and the outcome of the elections. Analysts predict anywhere from 2009 to 2010. It still gets down to supply and demand. When supply and demand begin to balance out, the real estate market will improve. Right now, buyers have the advantage and sellers are still lowering prices to make a sale.

Good news for buyers.

It’s an ill wind that doesn’t blow some good. The bad news for sellers is good news for buyers. Buyers with cash and/or great credit are finding some very good deals. The longer the downtrend continues, the more willing sellers are to make concessions. But buyers have to decide on the kind of property they want and do their research in advance, so that they’ll know a good deal when they see it.

For more information on buying and selling in a buyer’s market, go to my website’s Free Reports page.

Resource: Jessica Foster, The Sun News, Myrtle Beach

July 18,19,20 and July 25,26,27, 2008

20th Annual Central Oregon Builders Association Tour of HomesTM

The Central Oregon Builders Association (COBA) is pleased to present the 20th Annual 2008 Tour of HomesTM sponsored by Columbia River Bank. The field of 73 homes is set for the 2008 Tour, and we anxiously await the tour dates of July 18, 19, 20 and July 25, 26, 27. Hours for the tour this year will be the same as past years Fridays Noon – 6, Saturdays & Sundays 10-6. Remembering that it will be the height of summer, we advise attendees to dress appropriately and to bring plenty of water in their cars.

The 20th Annual 2008 Tour of HomesTM tour guide will be available in each Tour home as well as being delivered in The Bulletin right before the Tour begins. If you are interested in advertising in the tour guide please contact The Bulletin at 382-1811.

The 20th Annual 2008 COBA Tour of HomesTM is annually presented in July with the generous support of our sponsors. The 20th Annual 2008 Tour of HomesTM is sponsored by Columbia River Bank, and supported by Earth Advantage, The Garner Group, W.L. May Company, Robberson Ford, Deschutes Heating & Cooling, Central Oregon Cable Advertising, The Bulletin, and KOHD News.

The 20th Annual 2008 Tour of HomesTM field is set at 74 homes. Our second largest Tour! Prices on the Tour range from $207,950 to $3,200,000!

I will be holding The Reserve At Broken Top open every day of the tour (Friday 12-6, Saturday 10-6 & Sunday 10-6)

Please come see me!

Question # 3 – “How much can I expect to get for my home in Myrtle Beach?”

Know Your Competition – For the most part, pricing will depend on how much similar homes are selling for. It’s important to know your competition, even though each home is different. The best price is one that takes all of the property’s advantages and disadvantages into account as well as market trends and the goals of the seller.

Market trends have a big impact on sales prices. When the market is trending up, patient sellers may set a price slightly higher than that of a similar property. In a buyer’s market, when prices are trending down, the homes that sell are priced slightly below similar homes in order to generate buyer interest. In general, you can expect to get less for your property in Myrtle Beach today than you could have six months or a year ago.

Next Week – “How long will it take for my home to sell?”

All ten answers to these common questions are available on request. Just call my 24/7 hotline, toll-free, at 1-888-494-8654, Ext 225 and follow the recorded directions. I’ll get them in the mail to you within 48 hours.

Prepare Financially. Any buyer must take care of the preliminaries before even looking at his or her first open house. More homes are on the market today, at better prices than in years, but the easy credit of yesteryear is gone, probably for good. Today's home buyer needs to be pre-qualifed by a reputable lender. This is a process that takes just a few minutes over the phone, answering a few questions and doing a credit check. Relax. It's much easier than a trip to the destist. The lender does all the work. Find out what programs might fit your situation. Plenty of good loans are still out there. Figure out what your price range really is before you go shopping.

Make the Decision. You may be financially prepared, but is this the right time to buy for you? Make sure you are not too stretched financially because the foreclosure you saw last weekend is such a "great deal". If it's too rich for you, you may find yourself in foreclosure a few years hence. Plus, foreclosures in highly desirable areas usually attract plenty of attention and multiple offers, so many sell for well over list price. Are you ready for that?

Buy at the Right Time. When is the right time? Really, that's up to you. The best time to buy is when you want to. Kids out of school? Job transfer? New baby? Downsizing? Inheritance? Any of these events might kick you into gear, but if you're waiting for the market to go down more, you may be waiting in vain. Timing the market, as discussed in an earlier post, is a fool's game.Buy when you are ready.

Do Your Homework. National news reports make it seem homes are available for pennies...Maybe so, nationally, somewhere, but here in California, despite the downturn and despite the slide in value, homes are still plenty pricey. So, find out what homes are selling for in the neighborhood where you want to live. Check with a reliable real estate broker for prices or look at homes for sale on Realtor.com where you can search all Realtor-listed property all over the country and in your own neighborhood.

Ready, Set, Go.Now, financially prepared, credit report and pre-qual in hand, you can venture forth into this wonderful Buyers' Market. Having done your homework, you are set and need only secure the assistance of an able and reliable Realtor, such as yours truly, to help you get through the thickets of listings out there to your bargain dream home.

Question #2 - “How do I find out what market conditions are like in Myrtle Beach?”

Do Your Homework - After sellers know why they want to sell, the next step is to get a clear picture of the current Myrtle Beach real estate market to determine whether factors favor them achieving their goals. Potential sellers can compile this information themselves by researching sales to find out what comparable properties are selling for, or they can talk to a Realtor® they trust who can provide them with this information as well as current insights on the market.

The general market trend is easy enough to discover on your own, e.g. right now it’s a buyer’s market in Myrtle Beach – there is a lot more property for sale than there are interested buyers. It’s a tough market for sellers, and that makes accurate research on sales of comparable properties all the more important. Most property owners, particularly those who live out of town, rely on an experienced Realtor® to do the research for them – it saves them time, reduces frustration, and eliminates costly mistakes.

Next Week – “How much can I expect to get for my home?”

If you just can’t wait for this series to unfold, all Ten Answers are available on request. Just call my 24/7 hotline, toll-free, at 1-888-494-8654, Ext 225 and follow the recorded directions. I’ll get them in the mail to you within 48 hours.

  
Wednesday's highly anticipated Fed meeting produced little reaction in mortgage markets, and mortgage rates barely changed during the week. As expected, the Fed ended its cycle of interest rate cuts and held the Fed Funds rate unchanged at 2.0%. In addition, there were no major surprises in the Fed statement, which was entirely consistent with Fed Chief Bernanke's recent comments. According to the statement, the Fed expects inflation to moderate later this year and next, but uncertainty over the inflation outlook remains high. Meanwhile, the risk of slower economic growth has diminished. The Fed listed the credit crunch and higher energy prices as obstacles for the economy.

In reaction to the announcement, investors concluded that the Fed will wait longer to begin raising interest rates. The Fed's challenge is still to promote economic growth while fighting inflation. For mortgage markets, the negative implications for inflation from higher energy prices were offset by the positive effect on inflation of a slower economy, keeping mortgage rates steady. The stock market did not take the news as well, since higher energy prices and a slower economy are both negative for equities, and the Dow fell to the lowest level of the year.

The current economic data on inflation remained relatively mild, but the threat of higher future inflation climbed. The May Core PCE price index, the Fed's preferred inflation indicator, rose less than expected. On the other hand, Dow Chemical announced additional across the board price hikes of up to 25%, shortly after a similar 20% increase less than one month ago.

Compliments of Corey Phelps, Front Street Mortgage, (231) 360-7283 email: corey@frontstreetmtg.com

Prices took a beating, plummeting 35% during the same period, which is bad news for people in the housing market looking to sell, but it’s exactly why prospects are looking brighter for people in the market to purchase real estate. Home sales exceeded 400,000 (on an annualized, adjusted rate) last month for the first time since early 2007; the reason being is that more and more people are finding themselves in foreclosure H---, which means the banks are desperate to get rid of real estate they thought they had already sold. May was actually the second straight month of increased sales volume in California, but that followed a disastrous string of 30 consecutive months when sales saw a steady decline. So, what should you do, if you are looking to purchase a home?

What we’re seeing right now is a case of Californians in a state of bargain hunting nirvana. With so much excess real estate lying deserted in the housing market, smart shoppers are looking around for the best deal, and with the help of honest real estate agents, mortgage lenders and real estate appraisers, they’re finding them in spades. That being said, not everyone is convinced that the time is right. Jonas Lee, a principle of New York-based Redbrick Partners, which buys distressed properties all over the country, says he's watching California closely, but isn't ready to jump into the fray just yet. It’s kind of like the stock market, you want to buy low and sell high; the trick is in knowing the best time to get in, which is why you must do your research.

Many experts in the housing market have been monitoring sellers of bulk REO (bank repossessed) properties and their prices have gotten more realistic, but they’re concerned whether this is the end. Again, this is a case where having a professional team of real estate agents, appraisers and lenders on your side will help you out, because they can guide you through the intricacies of the housing market.

So, while we may be a ways off from a buyer’s market housing bubble, we are definitely headed in the right direction. Be smart, choose your real estate team wisely and you might just be the next person to grab your piece of the American Dream!

If you are considering a home purchase, please visit us at Mahler & Associates Appraisal Services for help with your real estate appraisal

FSBO's- It's nothing new but It is a buyers market right now. It takes more than the average person to list and sell your house while balancing your career and your personal life at the same time.

Contractor's/Home Remodeling - Programs like the 203(k) rehab and the 203(k) streamline are making it possible to get extra money for repairs or even structural work (turn a one family into a two family and earn extra income)

Renters - Like I said it is a buyers market. It will continue to be a buyers market until about 2013 according to Rene Pharisien's article "Why the housing market will not rebound until 2013". There are also several other very well educated people saying the same thing, and I'm going to have to agree with them.

In fact, according to a new study from the Joint Center for Housing Studies of Harvard University, "The State of the Nation's Housing 2008," finds the country poised to see an increase in housing demand over the next decade. The housing market will make a come back, it always does. Real estate appraisals will once again garner you a healthy value report, and mortgage lenders will start to feel comfortable giving loans to those with good credit. How may you ask? Read on and you will see.

One of the reasons the outlook in the housing market may perk up is the fact that America’s population is continuously growing, and with that growth comes more and more people who need a home. Since real estate appraisals rely heavily on the purchase and sales of real estate, this improves the market value of everybody’s home. Another factor is the increased life expectancy of our society. The longer people live, the more they purchase. Let’s face we are no longer content to stay in jobs for 20 years or more, and with longer life comes the desire for more variety, and that includes our homes.

Than we have the hotly contested immigration issue. One of the positive aspects of immigration is the fact that we have more people contributing to consumerism, and that includes the housing market. Many appraisers in the industry point to the fact that a lot of their appraisals are homes that immigrants own, which is why one study states that, "the good news is that we still have a growing population," said Nicolas Retsinas, director of the Joint Center for Housing Studies and one of the study's authors. "As long as you have more households, more people are going to need places to live." This same study finds that from 2010 to 2020, the number of households in the United States will grow by an average of more than 1.4 million per year. That’s great news, especially considering the condition real estate and the housing market are in today.

Now, if you add to that the fact that right now the housing market has an influx of homes being sold, you understand why buyers are in a better position today than they were just a year ago. As I’ve stated in previous blogs, the housing market goes in cycles. Granted this last seller’s market cycle was doozy, but what goes up always comes down and that includes the price of real estate. Homes real estate appraisers were valuing at $500,000 and more here in Los Angeles, are now being appraised for around $300,000. While you could be pessimistic and look at that as a horrible thing for the housing market, you could also be optimistic and look at that as a great opportunity for those looking to buy.

I’m not saying that the housing market will turn around tomorrow, but it will turn around. At this point, it may just be that the outlook on real estate will just get better by the day. So, if you or somebody you know is thinking about jumping back into the housing market, please visit www.iappraiseforyou.com and complete your appraisal request form today.

It's a buyer's market for those looking at homes that needs a little TLC and that have already been on the market for over 100 days. The inventory of homes in the Raleigh, Cary, Apex, Holly Springs real estate area is up and many new homes are being added daily which should help give buyer's plenty of options. Do remember though that the immaculate ones are moving quickly.

I am optimistic that we will see a fantastic 2008 year of real estate transactions for the Raleigh area, and if I can be of assistance in helping you with your real estate needs, I would love the opportunity.

Everyone has heard all the bad news about the Real Estate Market but hardly anyone has published the good news (like the Case Shiller article “No Housing Bubble Exists in 43 States” published in “Origination News”, April 2008.).  Do you ever wonder why they report the housing bubble over and over again on all the news stations, but you don’t hear about the Gold Bubble?  Gold is off almost 13%... Where are all the news stories saying not to buy Gold?

In Pierce County, home prices are down about 3.5% year over year (April 2007 to April 2008.) but the prices were up almost every year prior going back to the eighties.  I am actively buying houses in really nice areas at great prices from very willing sellers.  We have purchased 3 houses this year and have more offers in process.

I was just told by my Mortgage Broker, Troy Martin at New Freedom Financial, that Stated Income loans are coming back for investors. Give him a call at 253-531-5442 and he’ll tell you why.  This seems like the perfect time to be buying for your future.  It is true that you must put money down but it does not have to be your money--find a partner. I never liked the Zero down loans for rental properties anyway since there was no way for them to cash flow, and, everyone knows Cash Flow is the life blood of any small business.

Can anyone tell me why I am crazy not to be doing this?

For a copy of the article I mention above, fill out the “contact us” box on the left sidebar and I will send it to you. 

Paul Hemming, Tacoma / Puyallup real estate investor

With this correction house price increase will stabilize and rise closer to the rate of inflation.

Multiple bidding on a house will become rarer, the market will transition itself from a Seller's Market into a Buyer's Market

In a Buyer's Market the supply of homes exceeds the demand for homes. Characteristics of a buyers market are longer durations a home will remain on the market unsold and a larger inventory of homes for sales compared to buyer's looking to purchase.

in a Seller's Market, the number of buyers wanting homes exceeds the supply of homes. This type of market is characterized by homes that sell quickly rising prices and less inventory of homes available for sale.   

Let's face it in Toronto it was a nice run what 7-10 years of rising prices. Well this will continue although with more moderate increase in price the double digit increase are gone for now.....

Source.... Rob Paterson 

Do you have a question you would like answered contact me Robert-Paterson@coldwellBanker.ca 

So here's a reality check for buyers, so you know what to expect and can make the most of today's market conditions. [For a full discussion of buying in a buyer's market, go to my website's Free Reports page and order "How to Maximize Your Investment in a Buyer's Market."]

Here are three things to keep in mind in order to make the most of today's market conditions.

1. Market Trends - Don't try to time the market. Most analyst agree that we are at, or near, the bottom of a normal market cycle. Right now inventories still remain high allowing buyers to pick and choose properties that suit their needs. However, if buyers wait until a clear upward market trend emerges, they will have fewer choices and pay higher prices. Now is the time to buy your investment / vacation property of choice in Myrtle Beach.

2. Market Prices - Don't expect to "steal" property. Yes, we have seen more foreclosures and short sales in Myrtle Beach over the past year. But these are owned by banks, for the most part, and they are squeezing every last dollar out of them. Most are cash transactions and are very difficult to buy. The truth is that most sellers are not desperate to sell immediately. Expect to pay at or slightly below current market prices. For a sample of current best buys, go to my website's "Best Buys" page.

3. Market Research - Know a good deal when you see it. You must do your research in order to take advantage of this market. The Grand Strand is 60 miles long with property to suit every lifestyle and pocketbook. Most people need help sorting through the various neighborhoods and lifestyle choices - especially if they are relatively new to Myrtle Beach. That's why I've given buyers a head start on my website's Favorite Locations page. Use the Quick Search feature to check listings in some great neighborhoods. Of course, you can search the entire Grand Strand on my website's Search All Listings page. If you don't do your research, you won't know a good deal when you see it.

I'd be happy to help you with your Myrtle Beach property search.  Just give me a call, toll-free, at 1-888-494-8654. We can set up a time to talk about how you can make the most of today's real estate market.

However, they didn’t want to “give their current home away”.  Their home was worth more than the home in the neighborhood that sold last summer.  Their home was on a better, more private lot, had beautiful new carpet, the basement had been finished off beautifully as a family room with a gorgeous fireplace and solid wood built-in cabinets, unlike the other home.  The asking price for their home should be at higher price, they felt, because it was worth more than the other home.

As a Realtor, my job is to explain market conditions.  I shared the real estate statistics specific to their area with them. I explained to them the other home sold a year ago in a vastly different market.  The current owner of the home could not sell it today at the price they paid for it just one year ago.  If that home were to sell in today’s market, it would be priced below what the seller paid a year ago.  I did agree their home was worth more than the other home, but at today’s market price.

You can’t have it both ways. You can’t get the price now you could have gotten for your home a year ago.  You can, however, get a fabulous deal on the home you purchase.

Real estate markets go in cycles.  Last year, as we all know, it was a seller’s market.  This year it’s a buyer’s market.  If you’re making a move in the same area, you can get a great value on the home you purchase.  The new purchase will be a much better deal than it would have been a year ago. 

No one wants to “give away” a home.  But when you sell a home in a ‘buyer’s market, it’s the seller’s  turn to be more competitive with pricing.  Remember the silver lining for sellers is that good buy on a home purchase.

I could end this article there but since I love to hear myself type, I'll elaborate a little more.

Remember  - when you try to sell your house, you have only one goal --- To sell your house.

Anything that you can do to differentiate yours from the others is a good thing.

Think about it - pretend you are looking for houses.

Your Realtor takes you to 2 similar houses in approximately the same neighborhood.  When you walk in to each house, the kitchen counter has a little rack with marketing materials.  There are glossy brochures with pictures, a "listing" sheet showing all the specs of the house, a sheet from a lender showing the monthly payments on the house if you were to pay the list price and put 10% down and a few other informative pieces.

In one of the houses, you see a report from a certified building inspector that is dated within the last month. The other house does not have this.

You take a copy and decide to read it later on.

When you get home that evening you and your significant other are reviewing all the houses you looked at that day.  You comment on how that one house had the inspection report.  You scan through it.  It says that the house is in good condition. Heating system checks out, cooling system is OK, etc.  There was one problem noted. The dishwasher did not start easily, unless the inspector lifted the door up and pushed hard on one corner to lock it in place.  Hmmmm,  that doesn't sound too good, does it?

Wait - stapled to the last page of the inspection sticker is a bill from an appliance repair shop for $125.00 to replace one of the hinges on the dishwasher door.  WOW!  This homeowner is making sure that the house is in good shape to sell.

OK  - which house is likely to get more serious consideration from you?

No guarantee that it will sell, of course, but surely you can see how this house has a "leg up" on the other one.

So should you spend the money to do this - absolutely! It will differentiate your house from the others.

Don't forget, of course, to fix the things that need fixing.

With home prices going down now in some markets, the question is beginning to surface more often, "Is now a good time to buy? If there's any risk that it may go down in value, why, really, should anyone buy a home instead of renting?"

Appreciation or Rising Values - For most Americans, buying a home is one of the smartest financial decisions they will ever make.  Look at the difference in net worth between home owners and renters, according to the Federal Reserve:

"The difference in net worth of homeowners vs. renters is more pronounced as income rises.  The average American who earns $60,000 per year and rents has a net worth of only $25,000.  The average net worth of that same earner who is a homeowner is nearly $300,000!"

There are two main reasons this happens.  First, there is the "forced savings" aspect of home ownership.  As payments are made on a home over time, the balance of the mortgage will obviously fall.  This is essentially "forcing" a monthly savings that is the portion of the payment that applies toward the principal amount of the mortgage.  Secondly, there is long-term property appreciation ... homes have always gone up in value over time, even though there are bound to be some down cycles.  Long-term home ownership almost guarantees a higher net worth.

Pride of Ownership - Most homeowners will admit they like owning a home because they don't have to ask before they do anything to the home.  They can paint it any color, they can add a new front door, change the shutters, and they have the right to do it because it's their home!  This is the reason most people take care of a home they own better than one they rent.  Plus, no landlord can go up on your rent or terminate a lease and force you to move. 

It makes a difference when applying a credit, in personal relationships, and possibly even in employment considerations.  Pride of ownership is hard to measure in terms of money, but is a big part of why people will always want to own their home.

Tax Benefits - Arguably, tax benefits of home ownership are not as great as many owners understand them to be, but most do benefit from the mortgage interest deduction, even if in a small way. 

Home ownership has been a part of our heritage, and reprisents the largest part of the average American's net worth.  There is a good chance that owning and paying for a home is the only way some people will be able to retire.  And the earlier you can get in the game of ownership, the better off you will be sooner in life.

Owning a home is not only still the "American Dream," it is an important part of our national economy.  The financial benefits can easily be seen and experienced over the long run.  The other benefits, while not so easy to measure, may be the most important ones.  Buying your first home, even in a "down" market is still a wise choice, and will eventually be one of the best financial decisions of your life.

Source: Kirk Thompson, Wall Street Mortgage Bank, 818-648-9524.

Kerin Cantwell, Real Estate Services

Here is what I like to refer to as a Burrows Suggestion: You should know the value of your house before undertaking a project to improve it. Why? So that you won't over spend, investing more than it is worth. Often simple, cosmetic improvements can be adequate and in reality, can help to expedite a sale. Playing by some simple rules, will actually help you make money on the other side of the sale. By the way, if you live in the Northern Virginia area, Contact Me and I will run some comparables so that you know and understand the value of your home and by all means avoid over spending.

Here is a article I'm sure you will appreciate on this subject: 10 Quick and Cheap Ways to Upgrade Your Home - Looking to make a big splash in improving the looks of your home, but don't have much cash. Here are 10 suggestions you might try.

Find additional House and Home Reports on my personal website. In fact, this helpful literature can get you started on the right foot for selling, buying, fixing up your house, mortgage, refinance, winterizing your home, home security and many other very useful topics.

David L. Burrows, Realtor®
Northern Virginia Fine Homes
Reston, Virginia  20191                                                            
Phone: 703.391.9200   x9119
Burrows Properties 

Burrows' Thoughts worth considering: "One reason to have a Home Inspection by a Professional Inspector is not only to discover possible defects, but to help the new home owner to understand the need for proper maintenance on the items the Inspection brings to the purchasers attention."

Interested in Some Great Reading on selling your home? Take a look at these articles on my website: Selling Your Home: Where do you begin?

Seller Guidance: I would encourage you to employ a Realtor®® to help you sell your home. When your agent or another agent is showing your house, go away and let them do your work for you. I also urge you to utilize my FREE SELLERS TOOLKIT before selling your house.

Buyer Guidance: I would encourage you to really check out anything and everything you are told by a well meaning seller. Employ the services of a Buyer's Agent to help you discern what you read and listen to about the area you are thinking of calling home. I would also urge you to get my FREE BUYERS TOOLKIT before heading out on the journey to find your new house.

Try this link to help you find your next home: Fairfax Homes For Sale   When you land on the main page try one of our custom searches listed on the bottom of the page. No registration is necessary for the Fairfax MLS general search on my site. If you check the box to receive automated updates sent to your email, you will be required to give us your sname and a valid email address.

Northern Virginia Information - Here you will find answers to your questions about schools, auto registration, taxes, things to do this weekend, popular destinations. It only takes a moment to look and it is free with no registration required!

Click on the following link for your Complimentary eCalendar & Daily Planner. This is a Free Gift from David. There is absolutely NO sign-up, registration, tricks, or gimmicks. It really is free for you to enjoy! This is a great tool for keeping track of your schedule for all of your Real Estate needs. There is NO obligation.

This blog may contain links to other Web sites operated by third parties. These links are provided as a convenience to access the information contained therein. David Burrows and Northern Virginia Fine Homes have not reviewed all of the information on other sites and disclaim any responsibility for the content of any other sites or the products or services that may be offered on or through those sites. Inclusion of a link to another site does not indicate any endorsement or approval of the site or its content.

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My wife and I, (along with our two dogs) are deeply entranced with Simon, Paula, Randy, Ryan and a plethora of (mostly) bad --->mediocre singers all wanting to have a chance to record the next over-produced, synthesized, homogenized pop hit.

Even the really good singers who win (or come in close) typically are given silly, formulaic songs to record - have you heard Bo Bice's THE REAL THING?

Anyway - I digress.

Recently I was having a conversation with a client about pricing his house which we were about to put on the market.  I was going through my rhetoric (which you've heard if you've ever read this blog before) about how you have to let the buyers decide what your house is worth - and it hit me that I had heard this dialogue before - from Simon Cowell - albeit in a different context.

If you've ever seen the show, you'll know that one of the best parts is watching Simon interact with the bad singers in the early auditions.  Yes - I do know that they exaggerate the whole William Hung thing a bit, picking the worst auditions to put on the show, strictly in the name of ratings - but I really do find it entertaining  - but more importantly it provides some real insight into how people's perceptions of themselves are different than reality. People tend to believe what they want - they come to a conclusion first and then try to justify it based purely on emotion.

Here's how the dialogue usually unfolds.

A really awful singer will belt out a tune - something very loud and dramatic - like a guy singing "GIRLS JUST WANNA HAVE FUN" in a bass voice while gyrating around the mini-stage in what appears, sometimes, to be a seizure of some sort.

Simon or Randy will try, sometimes in vain, to stop them mid-gyration, but they carry on as long as they can, even in the face of the judges sometimes laughing or holding their ears.

Then Simon will say "How do you think you did?"  Invariably the contestant will say they thought they did well.  Simon will assure them they didn't.

OK  - we're finally up to the relevant part.

The singer, will then try and explain that even though all three judges hated their performance, he or she, was actually very good. Their mother, father, sister, brother, uncle or VOICE TEACHER has told them for years how good they were. They may sound terrible here in the audition room, but if they "could have a chance to go to Hollywood" they will show the judges exactly how good they really are.

Think about that for a minute. They are trying to override how bad they sound - not by singing well, but by explaining that in spite of the judge's perception - they really are good.

The simple fact is, that they are, (for the most part) truly convinced that they are good. They are often in shock that the judges don't like the performance.

They don't seem to get that it doesn't matter a bit what THEY think. At this stage of the competition, it only matters what the judges think.  They (the contestant) are there, simply to present what they have to offer. Their success or lack thereof is 100% in the hands of the judges  - and as the weeks go by - in the hands of the voting public.

Same thing with the value of your house.  You might truly believe that your house is worth $100. The market, however, says that it's worth $90.  The "comps" support $90. The offers that you are getting are in the high $80s.

No one wants to buy your house for $100. Therefore, in spite of your own perception - your house is not worth $100.

In a free market something is worth exactly what someone is willing to pay for it - not a penny more.

So work closely with your Realtor and come up with a reasonable number to put on as a listing price. if you overprice it, you might not even get showings.  Or you will get showings but no offers that even come close to the price you've asked. If it happens once - it might be someone looking to lowball with the hopes of stealing the house. If it happens twice or more, then the price they are offering is very much like Simon's opinion - it's the only thing that matters.

This hurts everyone. There will always be foreclosures, repos and REOs going on the market, but those extra 45,000 repossessions flood the already swollen inventory with under-priced distress sales. It will be a while before we wring out the casualties and return to any kind of balance between buyers and sellers.

This is the most slanted buyer's market of my lifetime. The forecast according to some is not good either. I never bought into the doomsayers predictions of double-digit depreciation, but if we are going to get an extra 10,000-40,000 repos added to the inventory each month it looks bad.

Lower prices are offset by concerns about inflation and interest rates and anecdotal evidence suggests that there are fewer people attending open homes and inspections.

If anything at the moment softer prices and rapidly rising rents make Sydney property a good long-term buy. With data suggesting weaker retail spending, it is likely that we can expect another year or two before inflation becomes acceptably in check, whilst the pressure on interest rates remaining.

So it is likely that the lack of competition identified in the under-$1million price range in Sydney will also remain. During that time, rents will continue to rise.

Here's some tips for potential buyers:

• With houses, focus on land size.
• With apartments, look at the number of bedrooms (stear clear of studios and aim for two) and give preference to boutique blocks over large buildings, and avoid high strata costs - lifts, gyms and pools may look nice, but they are costly to maintain.

At present in NSW 25 per cent of household income is needed to cover the average rent, whilst in Victoria 22 per cent and Western Australia 23 per cent.

Simon Turner