Why This Spring You MUST Become a Homeowner By Ruth Malkin-Lerner

General Atmosphere Lousy Economy Lousy Housing Market Most expert agree housing market will not recover in the near future Government incentives to buy a home are gone

The American Dream Lives On! New Survey of 1,000 Americans revels that: Nearly 90% of homeowners would buy their home again 58% of those who believe the housing crisis will continue would buy their home again Almost 90% of those whose home lost value would buy their home again 70% would recommend a friend buy a home Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream, “ RealtyTimes.com

Spring 2011 Is Great Time to Buy Many conditions make this a ripe time to get into the housing market and choose your home. Here are the Top 5 Reasons…

Reason #1 Housing Prices

Recent Housing Prices Statistics Housing Prices back to 2002 levels. Average home price is $156,100 Source: National Association of Realtors, and Realty Times

Real Houses Prices, 1983 - 2011 Source: Calculated RISK Finance & Economics Blog

Housing Drop Prices Advantage Lower prices means more home for you Much of the downturn, if not all, has been figured into the price Impossible to time the exact bottom of the market: we may be starting a recovery, we may still have some price drops Calculate waiting longer to buy versus the price of renting

Reason #2 Slow Market

Slow Market Statistics Existing Home Sales FELL 2.8% between February 2010 and February 2011 Existing Home Sales Fell nearly 10% between January 2011 and February 2011 New housing starts languishing for a while now Source: National Association of Realtors, RealtyTimes.com

Slow Market Advantage This is a buyers’ market! The market loves buyers and fights over them A strong buyer has a lot of negotiation power You’ll have many options so you can find your dream home It’s nice to feel wanted

Reason #3 Extra Low Mortgage Rates

Mortgage Rates at a New Low If anything under 6% is considered fabulous, how about 4.5% mortgage rates? According to the chief economist of the NAR, Lawrence Yun, "Housing affordability conditions have been at record levels and the economy has been improving.” Housing and general economic recovery will push rates back up

Low Interest Rate Advantage Low rates and low prices are a rare combination and a perfect opportunity Locking in a low rate means saving money on your monthly expense AND on your total price of the house (Price plus accumulated interest) You may be able to afford more than you think Go through the pre-approval process first thing

Reason # 4 Excellent Long Term Investment

The Long-Run Viewpoint 70 % of Americans would recommend a friend buy a home In a survey, 24% say home ownership is a better investment than saving money (20%) or investing in the stock market (6%) Most live in their homes long enough to make it a long term investment Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream, “ RealtyTimes.com

Advantages in the Long-Run Investment Look to buy a home if you plan to stay put for 4+ years, (more or less depending on your local market’s resilience) 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 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.

Reason #5 It’s Not About the Money…

A Home is More than a Money Matter As already mentioned, nearly 90% of those surveyed would make the same decision to buy despite the economic and housing crisis WHY?

Home Sweet Home Home owners care much more about their homes than renters Home owners usually love and cherish their homes Home ownership signifies security and warmth to people Because buying a home is a long and elaborate process, chances of buyers remorse are very low Chances are you’ll join the 90% who would buy their homes regardless of the economic woes

Words of Caution

Tight Credit Market A tight credit market means you’ll have to really work with your mortgage lender to meet all criteria The advantage is that if you are a great candidate for a loan, you will be a highly sought-after buyer Get pre-approved well before you choose you home

Failing Appraisals The appraisals are often failing to meet the price negotiated by the buyer and seller This means many sales are being cancelled Alternatively, it can also mean a renegotiation of price to the buyer’s advantage It also means that as a buyer, you are not in great danger of overpaying for a home, regardless of your negotiation skills

It’s a Jungle Out There! Even in a buyers’ market, ensure you have proper representation: Real Estate Agent, Mortgage Broker, Buyer Attorney. Do not attempt to put your home purchase transaction on your own, you can waste a lot of time and money

Concluding Remark Thomas J. Wilson , Allstate chairman, president and chief executive officer says, “Homeownership is viewed positively by the vast majority of Americans as both a place to raise a family and a sound investment.“ Source: “Allstate-National Journal Heartland Monitor Poll: The American Dream,” RealtyTimes.com

For more information…. Insider real estate secrets revealed at www.RuthMalkinLerner.com Expert Real Estate Advice that Saves You $$$$$