Don't Wait For The Market To Come Back

Top Five Reasons Why Not To Wait For The Market To Come Back:

1) Demand for existing homes are at it's peak
2) Less competition from new home sales
3) You can buy more home for your money
4) Tax incentives of $6,500/existing homeowners & $8,000/new buyers
5) Mortgage interest rates are low at around 5%

Since early 2006 home prices in Northwest Indiana have fallen an average of 30% from the market peak. What does this mean for home owners who have decided to "wait for the market to come back"? A long wait, a very long wait.

First remember at the peak of the market, home building was very active and new homes were going up everywhere. Buyers took note and the majority of buyers only wanted to view "newer homes" Existing home sales lagged behind new home sales 2-1 or even 3-1 in some areas.

The new home market is at a virtual standstill, with a limited new homes being built. That's good news as there is way less competition for the sale of your home.

Buyers see the value in purchasing an existing home. Buyers are pleased that they can buy a bigger home (more square footage) at a lower price than new construction. Buyers are also finding out that they are able to afford a home in areas that previously were not in there price range.

Additionally, tax incentives allow existing home owners to buy a new home and receive $6,500. You don't have to sell your existing home, you can rent it out - you just have to live in the new home.

Finally, remember that market prices have not even begun to rise. Even if prices rise at 6% per year - (at that's not happening) it could take 5 to 7 years for your home sale price to increase to the peak market price. Can you afford to wait that long? When and if the market swings back and the value of home prices begin to rise, so does the desire of buyers wanting new homes.

In conclusion, with the $6,500 tax credit for existing home owners or $8,000 tax credit for first time home buyers, PLUS the active existing home market creates the best time to purchase a new home. Finally, mortgage interest rates continue to be very low at around 5%.

Which Should I Do First - List My Home or Find A New Home?

Homeowners often are afraid of listing their home for sale without finding their next home first. Shopping for a home, when you are not in a position to buy can be a painful experience.Let's say you visit 10 homes, and finally find a great new home! But wait, you are not in a position to buy. The seller of the great new home (as with most sellers) will not accept an offer from you based upon the contingent sale of your home. Thus, the dream home is sold to someone else and you miss the opportunity.The best homeowners list their home first and then look for a new home. You can always list your home "subject to finding home of choice". This means if you don't find a great new home, you don't have to sell. Remember, every neighborhood has an "average market time" meaning the average days on market to sale. In Northwest Indiana, the average is about 120 days or 4 months. So even if you list your home today, it could take a few months to find a buyer.The best advise is to list first and shop for the new great home second.

Lights On - Selling your home faster

Today is a rare sunny day in Northwest Indiana as we tend to have more gray skies than blue. What home sellers may not realize is how a drab, gray day can darken the image and interior of their home. Furthermore, sometimes real estate agents and buyers have difficulty locating hidden light switches and can view the room at it's best.

To help sell your home faster, make sure to leave a light on in every room of your home. Even if it's in the daytime, lights add warmth and give potential buyers a much better view.

So if your looking to encourage buyers and waiting for a great offer, my suggestion is to leave the lights on!

Take Advantage - Home Buyer Tax Credit 2009 - 2010

Are you ready to take advantage of this "final offer" to make home buyer easier? Don't be fooled, there will NOT be an extension of this program. Buyers must be under contract to purchase by April 30, 2010 and closed purchase by June 30, 2010 to receive the tax credit. Now existing home owners are eligible to receive up to $6,500 on a purchase of a residence. You do NOT have to sell the existing home. First time home buyers are eligible for up to $8,000.Call me today at 219 462 2090 ext 205 for additional information.