With the recent snow in the Northeast it’s hard to imagine that spring is really just around the corner- less than three weeks away.  Now I’m not thinking of the birds and plants and so forth but those people that have heard all the bad things in the economy and maybe they’ll just come out and buy a new home.  With the recent $ 8,000 tax credit - a real credit not one you have to pay back, and great prices the opportunity is fantastic.  We have Home Shows the next three weekends and with some good weather and maybe even some fair economic news we’ll see some buyers.  People who have some type of stable employment and reasonable credit and downpayment will find this is a time they can find housing at a more affordable price than possible in years past.  We’re not talking just a few dollars but thousands of dollars in savings that are out there right now.  Happy Homebuying!1

In looking at the economy and housing we see all the negative things shown and say - woe is me.  Actually, there are more postive things happening that the press wants us to know.  Even in a recent article in my local newspaper it talked about the job losses, etc. and then at the end of the article did say during that timeframe (of the job losses) the local economy saw an increase in local job growth.  We don’t really know where those gains were because the media doesn’t want us to know.  Good news rarely sells any media whether it’s papers, internet advertising, or other media. 

Analyzing the housing industry there is such a slowdown in the large housing states of California, Florida and Texas that they make any slight gains in other areas look like overall losses.  Is it bad- yes it is bad - but is it as bad as the media reports- probably not.  We do face tough times in today’s market but there are bright spots.  We must work to clean up the credit crisis and get money back into the economy.  Yesterday in a meeting with a financial advisor it was stated that around 40 percent of monies available are sitting on the sidelines waiting to see what will happen and where to put it.  We need to get consumer confidence back so that 40 percent can go to work and earn some money and buy American products.  Housing is a commodity that will survive as people will need homes but we will probably not see the excesses that we have seem in the past.  Looking forward to your thoughts as we proceed thru the next weeks and months.

Many people in today’s market are looking at whether I should buy a new home or just remodel my existing home.  In looking at both sides of the issue in today’s market you have to consider many factors.  Obviously, you are not moving in the remodel situation and you already know your neighbors and community.  Sometimes that may be good and sometimes that may not be so good.  Anyway, it is not an unknown.  You’re also familiar with your home if you’ve been there a while and know what improvements, maintenance, etc you have done.  You then have to look at the cost involved in the home improvement and the benefit to you.  Are you looking at remodeling the kitchen or are you looking to add more square footage.  Then you need to ask am I going to have a home that is more than the value of the neighboring homes.  If it is more than 20% more than the average value of homes in your neighborhood you will probably not recoup the value of the improvement. 

In looking at the new home you ask some of the same questions concerning location but can be more secure from a maintenance standpoint knowing you have a new product.  Usually the values in a new home neighborhood are similiar and probably are not of concern that you would be overbuilding for the neighborhood. Financing is another option in your new home as you can, depending upon your downpayment, include other items such as debt consolidation, college loans, auto loans and the like.  The biggest thing in the purchase of a new home is that you get to pick what you want at the time of life you are in at that point.  If you are a young family you may need more bedrooms and yet later in life you may be looking for a one story floor plan.  Your life needs change which require your housing needs to change. 

Best of wishes in your adventure of buying or remodeling your home!!

As many people look at the housing industry they look at the economy and say now is not a good time to buy a home.  Sometimes we forget the main reason to buy a home- that being a place to live.  Sure, we can say that maybe my home is not increasing as much as it would have three years ago, or we can say maybe the price will be lower.  What we really need to remember we are not buying homes to make money we’re buying homes to live in!! Does it suit my current family situation and does it suit my needs today.  We have in the past had this side benefit that we have also made money on our homes but did we really buy a home to make money or to have a place to live.  Your investment in your home was not really to make money, but to have a place to raise your family, cherish some memories, and develop a tradition as your own - not your parents or garndparents but yours.  It’s something to think about as you ponder your decision to buy or to not buy a home.

As we look at the real estate market today we see a rather slow and depressed economy.  That being said it is important to analyze whether this may be a good time for “You” to buy a home.  Remember, you as an individual are not going to set a trend in the market nor will you need to follow the trend in the market.  In other words, in a down market which we are in now, it may be a very good time for you to buy if you have good job stability and good credit.  You can save money and get a great deal on a home.  Conversely, if the market is strong, but you as an individual do not have job stability or any funds it would not be a good time to buy a home even though others may see it as a great time.

Now everyone who is looking to buy wants to get the best possible deal that is out there, but you really need to consider is it a good deal for me?  We have all purchased an item and then looked at another store, saw the same item and checked the price to see if it is more or less than what we paid.  In trying to guess when the market is at the bottom neither you nor I will know the day when the market picks back up.  By that time, we’ve missed the bottom of the market that we’ve been waiting on.  Therefore we’ll never really know when the market hits the bottom until we’ve missed it!! 

From a buyer or seller standpoint then, we need to look at our given situation and say is now a good time for me -not is it a good time for “the rest of the world.”  Look at your situation and see if this makes sense.  There are many good buys today in the real estate market.  Happy house hunting.

I thought it would be appropriate to discuss the question- Is really a good time to purchase a new home or for that matter any home at all?   Many things factor into whether this is a good time.  Of most importance would be the stability of your employment.  If you have good job stability this may be an excellent time.  If you do not know if you’ll be employed next week or month surely it is not a good time.  Now the question comes in about credit and down payment.  These things seem to be of great importance in the news but in the industry we do not see this as much of a problem in the marketplace.  If a person has moderately good credit and a few thousand dollars with stable employment the person will get a loan.  I am not talking about an internet high risk type loan but a regular interest fixed rate loan for 30 years. 

Now the question assuming you can get a loan and have an OK credit score is now a good time to buy?  To give you a personal application I recently purchased a not so fuel efficient vehicle.  It was not a hybrid, not a 40 mpg vehicle but one that will get less than 18 mpg on a good day.  Why did I buy that vehicle - because no one else wanted it and I could save enough money on the purchase that I could more than pay for the extra gas I will spend while I own the vehicle.  So my answer as to whether now is a good time to buy is can you get a good deal and be able to make the payments?  If you answer is yes then now is a great time to buy. 

A real estate investor told me he started investing in the 1960’s and was told it was not a good time to invest - he did anyway.  Each time he was told it was not a good time to invest but he did anyway.  He now has over 100 properties and is quite well off.  If you can get a good deal and afford it now’s a great time.  Happy buying.

As I mentioned in my last entry I thought it would be good to discuss the advantages and disadvantages of buying a new home versus buying an existing home.  An obvious advantage in the new home market is the ability to pick the colors, particular features and include only what you want in the new home.  A new home community may also allow you to meet neighbors more quickly as most of the other residents are new also.  Some new home communities have amenities such as community swimming pools and community centers that the existing market frequently does not provide. In looking at the new homes this may sound like an insult to your intelligence but it is new and all the items in it are new.  Keep this thought in mind as we discuss existing homes.

            In purchasing an existing home you pick the style of the home by say only looking at two story homes, you pick the colors by what is available in the market during the time you are looking and what is on the market at that time.  You can still make those decisions but are limited by what is available as a completed home.  Frequently in the existing market you have more established neighborhoods, with more mature landscaping, and areas that have a bit of a history.  In buying an existing home you do not need to wait for the home to be built- you merely work out the details as to when you can settle on the property.  As I mentioned above if you do buy a 10 or 15 year old home everything in it is about that old unless it’s already been replaced.  How much will you have to repair or replace is a question you need to answer as you look at the existing home market.

            There are advantages and disadvantages of both.  It’s a decision that you to analyze as to what’s best for you and your family.  Happy house hunting.

Since this is our first posting on the blog I thought it would be good to describe what we are doing and why.  Primarily I am going to be talking about the New Home Building industry and how the process works.  I’ll also talk about why you should build a new home and what challenges and benefits there are in new home construction. 

When we think about building of new homes we can think of two different types of purchases.  The first of those purchases would be the purchase of a new home that has already been built.  In essence, it is the purchase of a new home that the builder has completed and now is available for sale. You, the buyer can merely move in and set up your “home”.  The second type of purchase is having a new home built on your lot or a lot owned by the builder.  Both have their advantages and disadvantages.  In the first case where the home is already completed you will be able to move in immediately and may be able to negotiate a great price- after all this may be a completed home the builder is discounting to sell.  In the second case, where you have a home built for you on your site or the builder’s site we see some different advantages.  You, the homebuyer, now get to choose the type of home, the colors of your carpet, flooring, cabinets, countertops and many other items.  If you have specific requests for your new home this is an great time to see about having them implemented by your builder.  If you don’t like to make decisions have the builder help you or go back and buy a completed new home.  If you own your own lot this is the only way you’ll be able to proceed.

In my next posting I will be talking about the decision to buy a new home versus the decision to buy an existing home.  Both have specific advantages and disadvantages.  We’ll discuss that in my next posting.  Hope to talk with you then.  Happy home buying and building.