Why This Spring You Must Become a Homeowner


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Five top reasons to buy a home this Spring and how to take advantage of the economic conditions.

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Why This Spring You Must Become a Homeowner

  1. 1. Why This Spring You MUST Become a Homeowner<br />By Ruth Malkin-Lerner<br />
  2. 2. General Atmosphere <br />Lousy Economy<br />Lousy Housing Market<br />Most expert agree housing market will not recover in the near future<br />Government incentives to buy a home are gone<br />
  3. 3. The American Dream Lives On!<br />New Survey of 1,000 Americans revels that:<br />Nearly 90% of homeowners would buy their home again<br />58% of those who believe the housing crisis will continue would buy their home again<br />Almost 90% of those whose home lost value would buy their home again<br />70% would recommend a friend buy a home<br />Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream, “ RealtyTimes.com<br />
  4. 4. Spring 2011 Is Great Time to Buy <br />Many conditions make this a ripe time to get into the housing market and choose your home.<br />Here are the Top 5 Reasons…<br />
  5. 5. Reason #1 Housing Prices<br />
  6. 6. Recent Housing Prices Statistics <br />Housing Prices back to 2002 levels.<br />Average home price is $156,100<br />Source: National Association of Realtors, and Realty Times<br />
  7. 7. Real Houses Prices, 1983 - 2011<br />Source: Calculated RISK Finance & Economics Blog<br />
  8. 8. Housing Drop Prices Advantage <br />Lower prices means more home for you<br />Much of the downturn, if not all, has been figured into the price<br />Impossible to time the exact bottom of the market: we may be starting a recovery, we may still have some price drops<br />Calculate waiting longer to buy versus the price of renting<br />
  9. 9. Reason #2 Slow Market<br />
  10. 10. Slow Market Statistics<br />Existing Home Sales FELL 2.8% between February 2010 and February 2011<br />Existing Home Sales Fell nearly 10% between January 2011 and February 2011<br />New housing starts languishing for a while now<br />Source: National Association of Realtors, RealtyTimes.com<br />
  11. 11. Slow Market Advantage <br />This is a buyers’ market!<br />The market loves buyers and fights over them<br />A strong buyer has a lot of negotiation power<br />You’ll have many options so you can find your dream home<br />It’s nice to feel wanted <br />
  12. 12. Reason #3 Extra Low Mortgage Rates<br />
  13. 13. Mortgage Rates at a New Low <br />If anything under 6% is considered fabulous, how about 4.5% mortgage rates?<br />According to the chief economist of the NAR, Lawrence Yun, "Housing affordability conditions have been at record levels and the economy has been improving.” <br />Housing and general economic recovery will push rates back up<br />
  14. 14. Low Interest Rate Advantage<br />Low rates and low prices are a rare combination and a perfect opportunity<br />Locking in a low rate means saving money on your monthly expense AND on your total price of the house (Price plus accumulated interest)<br />You may be able to afford more than you think<br />Go through the pre-approval process first thing<br />
  15. 15. Reason # 4 Excellent Long Term Investment<br />
  16. 16. The Long-Run Viewpoint<br />70 % of Americans would recommend a friend buy a home<br />In a survey, 24% say home ownership is a better investment than saving money (20%) or investing in the stock market (6%)<br />Most live in their homes long enough to make it a long term investment<br />Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream, “ RealtyTimes.com<br />
  17. 17. Advantages in the Long-Run Investment <br />Look to buy a home if you plan to stay put for 4+ years, (more or less depending on your local market’s resilience)<br />Calculate renting for that time versus buying a home. Chances are you’ll get much more of you home when you sell it, than the rent you’re guaranteed to never see again<br />Low rates and prices may enable you to buy a home and hold it in the long-run as a rental investment, if you choose.<br />
  18. 18. Reason #5 It’s Not About the Money…<br />
  19. 19. A Home is More than a Money Matter<br />As already mentioned, nearly 90% of those surveyed would make the same decision to buy despite the economic and housing crisis<br />WHY?<br />
  20. 20. Home Sweet Home<br />Home owners care much more about their homes than renters<br />Home owners usually love and cherish their homes<br />Home ownership signifies security and warmth to people<br />Because buying a home is a long and elaborate process, chances of buyers remorse are very low<br />Chances are you’ll join the 90% who would buy their homes regardless of the economic woes<br />
  21. 21. Words of Caution<br />
  22. 22. Tight Credit Market <br />A tight credit market means you’ll have to really work with your mortgage lender to meet all criteria<br />The advantage is that if you are a great candidate for a loan, you will be a highly sought-after buyer<br />Get pre-approved well before you choose you home<br />
  23. 23. Failing Appraisals <br />The appraisals are often failing to meet the price negotiated by the buyer and seller<br />This means many sales are being cancelled<br />Alternatively, it can also mean a renegotiation of price to the buyer’s advantage<br />It also means that as a buyer, you are not in great danger of overpaying for a home, regardless of your negotiation skills<br />
  24. 24. It’s a Jungle Out There! <br />Even in a buyers’ market, ensure you have proper representation: Real Estate Agent, Mortgage Broker, Buyer Attorney.<br />Do not attempt to put your home purchase transaction on your own, you can waste a lot of time and money<br />
  25. 25. Concluding Remark<br />Thomas J. Wilson , Allstate chairman, president and chief executive officer says, <br />“Homeownership is viewed positively by the vast majority of Americans as both a place to raise a family and a sound investment.“<br />Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream,” RealtyTimes.com<br />
  26. 26. For more information….<br />Insider real estate secrets revealed at www.RuthMalkinLerner.com<br />Expert Real Estate Advice that Saves You $$$$$<br />