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 investmentSource: “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 $$$$$