Dear Friends,

 

When people ask me how the real estate market is I’m often tempted to say “the same”. Since I started selling real estate in 1983 the most basic factor in real estate has been; buyers want to buy, sellers want to sell, and my job is to help them do it. And it’s still the same today.

 

Sure, there have been many changes in the 25+ years I’ve been selling real estate. And it seems like things are changing all the time. I’ve seen

  • Interest rates go from 17.5% (my first offer) to under 5%.
  • Prices go up, and down.
  • Big changes in financing.
  • Foreclosures, HUD homes, corporate relos, fix and flips, scrapes and just anything with a door and a roof have all be the dominant forces in the market at one time or another.
  • Technology, from fax machines, car phones and the Internet changing the way we do business.

 

But the bottom line is, buyers want to buy homes and sellers want to sell, and I’m here to make that happen.

 

There are too many things going on in the market to write about in one letter, so I’m going to focus on one point now and follow up in later letters. If you ever have a question on anything though, please call, I’d love to talk to you.

 

So, Buyers want to buy. People still need a place to live and renting is not for everyone. Renting has flexibility (and even that flexibility is tempered by the lease, and payments can be flexible too, going up in many cases), but the advantages of owning are too great to ignore.

 

Some of the most frequent things I hear is that “There is no money available for mortgages” “You need perfect credit” or “I need too much for the down payment” Let me clear up these common misconceptions.

  • There is plenty of money available for financing. In fact there is so much supply and so little demand that interest rates are at historic lows.
  • You don’t need perfect credit. FHA focuses on the ability of a person to repay the loan more than a credit score. Of course a history of not repaying loans will hold you back, but perfect credit is not an absolute requirement. Now, you do need a job and the ability to repay the loan, but that’s a good thing.
  • You don’t need a big down payment.  FHA financing requires only 3.5% down plus closing costs, and sellers can contribute 3% towards those closing costs (Which covers most if not all of them)

 

Now for the advantages of buying

I always tell people to look at their home as a place to live. Buy it because it’s where you want to be, where you want to raise your family, or retire etc., but there are other good, financial, reasons to buy a home.

 

Tax breaks: Right now there is up to an $8,000 tax credit for 1st time buyers. An even potentially bigger tax break is from the capital gains exemption. When the price of your home goes up, and it will, you do not have to pay capital gains tax on the first $250,000 of gain $500,000 for couples. This can be a Huge savings! There is also the mortgage interest deduction on your taxes.

 

Principle reduction: After 5 years of renting you’ll have 5 years of cancelled checks. After 5 years of house payments, you’ll have more equity in your home. In 15, 20 or 30 years, even if the value of the home never goes up, you’ll own the home!

 

Appreciation: As I said, in the past 25 years I’ve seen prices go up and down. But the general trend long-term has always been up. Real appreciation comes from buying in a good location, at a good price. And it takes time. A good agent is really valuable here. Right now prices are at a low point and the phrase “buy low sell high” seems to fit.

 

It’s YOUR home: This covers a lot and it means different things to different people. Maybe it’s pride of ownership, maybe a base for the family, maybe a good investment. What do you want? What does a home mean to you?

 

So, you have to live somewhere. If you’re renting now and want to have more than cancelled checks 5 years from now, call me. I offer a free consultation. If you own a home and you’re worried that you won’t get what your home is worth, call me. I can do a Market Analysis and give you facts, not fears. Also, if you’re waiting for your home to go up in value, remember that the home you want will be going up in price too, (along with interest rates.) And, there are some strategies we can talk about regarding this.

 

A final note and request. If you do know of anyone who is thinking of buying or selling, or should be thinking of it, let me know. I’d be happy to give them all the information they need to make a good, informed decision.

Also, I know I may have your email address, but could you send it to me again, just in case it’s changed? Just a quick hello to bill@billwasinski.com. It will also give me a chance to send out updates on timely issues.

 

As always, feel free to call, email, or text me if you have any questions or if you know of some one I can help. (I’m also on Facebook and twitter, but I’m just starting to learn how to use these in my business)

 

 

All the Best,

 

Bill Wasinski

 

Bill Wasinski

The Home Partnership at

Keller Williams Realty DTC

303-829-4778

bill@billwasinski.com

www.billwasinski.com