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Window of Buying Opportunity May Be Closing - 2009-10-04 |
I heard this week from a young couple wanting help. Thinking about buying their first home, they wonder if they should just wait until next spring. They had actually come close to buying a new house in the fall of 2007, just before the collapse of Lehman Brothers, and now are glad they waited.
They had listed out the pros and cons of buying a house now, and couldn't come to a decision.
On the "wait and see" side, the following points were made:
* Home prices in metro Atlanta may keep declining. According to the Federal Housing Finance Agency, metro Atlanta home values have dropped between 10 and 15 percent over the past two years, but have increased slightly in the past couple of monthly reporting periods.
* Interest rates may stay low for some time, and inflation is not a major factor now.
* Possibility of more foreclosures in the coming months, and this may flood the market with bargain houses.
and finally
* It is harder to get qualified for a new loan today than it was several years ago, and applicants need solid credit scores, stable jobs and a larger down payment than in the past.
On the plus side, they had listed out the following reasons to take action now:
* Thirty year fixed rate loan at less than six percent, and that may change.
* They had saved up enough to make a twenty percent down payment, eliminating the need for private mortgage insurance.
* There is a large supply of homes available to choose from, and sellers who hope to sell are more flexible than in years past.
* The Federal Tax Credit of $8,000 for qualifying first-time homebuyers is set to expire at midnight on November 30, and as of this writing, no extension has been approved.
As I looked over their list, I agreed that they had done their homework.
All their points are legitimate, and all are reasonable. But I added that there is one factor they overlooked, and that is the issue of time.
One of the key points in any homebuying decision is answering the question: How long do you intend to own this house? The answer affects several aspects in the decision making process.
For starters, the tax credit rules require that you own and occupy the house for at least three years, or you must repay the entire amount as additional income tax, so there's your minimum.
Beyond that, the longer you own your home the greater the likelihood that replacing it will cost you more, both in terms of price and interest rate.
Finally, the prospect of values declining for another three years defies historical norms. In fact, prices appear to have stabilized.
My advice was this: If you can find the home you want and get it closed by November 30th, you will likely be very glad you did.
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, July 30th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 06th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 13th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 20th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 27th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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John Adams Presents
“The MetroVestAtlanta.com REO Bus Tour”
Get on the bus for a tour of South DeKalb County’s “Real Estate Owned”
homes. Each house you visit will be available that day for purchase at
a giveaway price, regardless of current condition. Financing is
available!
Throughout the day, we will hear from mortgage providers, people in the
construction business and property managers all discussing today’s
situation with Bank Owned REO properties.
Who Should Attend: Investors, Realtors, Lenders, Prospective Buyers, and
anyone who might want to buy a super-bargain house and either do the
rehab themselves or have all the work performed by the pros.
You will see abandoned dumps and finished products, and everything
in between. And Snap will be there to answer all your questions and
explain the rehab and rental strategies.
Saturday, August 21st, 9:30 AM to 4:00 PM
Your $49 fee includes the bus tour and lunch. You must make reservations. No walk-ups.
There is limited seating and the seats are filling fast. ACT NOW before you miss the bus.
We will be meeting at Suburban Plaza, 2643 N. Decatur Road and Church Street, Lower Level, Decatur 30033 (beneath Hancock Fabrics, in the arcade.)
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