Is it Better to Rent or Buy?
U ncertainty surrounds much of the current Real Estate market and the economy as a whole. While it is a good time to buy, being hasty at such a fragile time could prove disastrous. Potential buyers have to ask themselves very serious questions about their employment, rising interest rates, and falling home values before moving forward with a purchase. If it doesn’t feel like the right time, maybe renting is the best option. Or maybe with a little research and a lot of number crunching, a buyer can take advantage of unprecedented deals in Real Estate. Karen Highland anwers the question, “Is it better to rent or buy in this Real Estate Market?”: “’Is it better to rent or to buy in this real estate market?’ he question is asked...
Strategic Defaults in Today’s Market
I f your house is worth less than you owe, you are said to be underwater. This is the situation that tends to lead to a short sale of foreclosure, unless the homeowner can afford to continue making payments on the home and wait out the negative equity. By now, the term “underwater” has become commonplace. A related term that is being talked about a lot lately is “strategic default,” or the act of walking away from a home that is underwater but the homeowner can still afford to pay their mortgage. What are the consequences of choosing this route and what about the moral issue of leaving that debt for the banks to deal with? Bob Stahl explains why some homeowners are choosing a strategic default: “On July 27, I wrote about the nuts and...
Navigating a Changing Real Estate Market
R EALTORS® continue to write about the changing market and how practices need to change to keep up with it. What worked during the years of the Real Estate market boom aren’t working now due to falling home values and changing attitudes. Closing on a home, for instance, always had its share of difficulties, but now they start sooner and only get more complicated. Beginning with loan difficulties and finishing with long closing periods with countless delays, navigating a Real Estate transaction takes endless patience and a lot of know how. John Giggy posts an article by Dian Hymer that will help Realtors navigate a changing Real Estate Market: “Tailor your offer price to the specific house you want to buy. How much you offer should depend on how much...
The Impact of Foreclosures on Renters
M uch has been said about the dire situation many homeowners face as they risk foreclosure. Although a housing rebound may be close, families continue to lose their homes. Another group being affected by the foreclosure crisis are home renters whose landlords were unable to keep their investment properties. Sometimes there is ample warning for a renter who needs to relocate, and sometimes the foreclosure comes as a surprise when the landlord neglects to share the situation with the tenant. Matt Malouf shares the impact foreclosure have on the renters: “If you are a renter living in a property that is facing or is in the middle of foreclosure proceedings, you may not know what to do or where to turn. For you, it may seem like you are at the end of your rope....
Time is Running Out For The $8,000 First-Time Home Buyer Tax Credit
F irst-time buyers who want to take advantage of the $8,000 first-time homebuyer tax credit need to start thinking about closing as soon as possible. Even though December 1 is still months away, when you add in possible delays to an already lengthy process, those few months start to look like barely enough time to settle a Real Estate transaction. With inspections, negotiations, and new Truth in Lending laws, delays are looking more inevitable than ever. Jim Stalwart explains why home buyers need to take advantage of the credit now: “While the economy continues to show signs of improvement and many housing markets are beginning to heat up, scores of would-be buyers are still waiting on the sidelines for further positive housing trends. But for first-time...
Home Buyers Could Use a Cash For Clunkers-Style Program
T he Federal Reserve has rolled out a number of tax-based incentives to spur growth in a variety of sectors. Tax credits for home improvements and appliances that are more green have made the transition to a less energy-dependent lifestyle a little easier. Then, there is the $8,000 first-time home buyer tax credit, which has done its part to help home sales. But the most successful tax credit incentive is the Cash for Clunkers program, which has run out of funding after only four days. Jonathan Osman asks, “Why hasn’t the home buyer tax credit proved as successful as Cash for Clunkers?”: “Cash for Clunkers is proving wildly popular. In just four days, the program, which had funding that was expected to last through November, is now...