DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE – REAL ESTATE FEED BY DEAN GRAZIOSI

That may seem to be an understatement but in today’s economic hard times, and until the economy gets back on track, it has never been truer. It is a buyer’s market like no other ever before, but it is still possible to sell a home.

Know Your Market

In the past, you may have been able to accurately gauge your home’s value as it increased or decreased.  However, today’s real estate industry has shown a marked decline that makes it very difficult to have a firm grip of a home’s value, based on preconceived earlier notions.

Not All Locations Are Equal

Location, location, location has always been the real estate chant and it is still true. Even more so, it is now true in the respect that declines in real estate value are not equal. In fact, what once was prized property for one reason is now in faster decline for the same reasons—rural areas that were once the getaway from the rat race and prized in the past are now in sharper decline than more urban plots because of the gas guzzling commutes as well as inconvenience to stores.

Not All Doom and Gloom

Even though it is true that real estate is a suffering market and some areas are especially difficult selling areas, there is a ray of light. If you owe less than what the current value of your home is in its ‘depressed’ state, selling is much easier because you can afford to accept less for a sales price than if you were maxed or upside down in your mortgage. As in the past, real estate is still one of the most valuable possessions for one simple reason—everybody needs someplace to live. The American dream is still alive as well, and people still yearn for their own home.

Get Accurate Appraisals

Don’t guess at the value of your home. It isn’t reasonable to go only by the selling price of homes in your area if they were sold more than six months prior to yours either. Seek reliable advice from an experienced home appraiser to know what the true value of your home is now and price it accordingly.

A well priced home will still sell. It may take a few months longer than it would have in any past era of history, but if the price is right, the buyers will come.

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First-time homebuyers have a severe disadvantage in the loan market. With the recent credit crisis and the resultant problems it has caused with financial institutions, even more potential borrowers have been denied loans. Lenders have developed more stringent lending policies in an effort to decrease their potential risk. However, limited credit and small down payments don’t have to prevent you from purchasing a home.

A first homeowner’s loan is one that specifically targets people who have never owned homes before. Namely, someone who has not just sold a home will likely not have the 20% down payment required for many loans. First-time homeowner’s loans often require little or no down payment, though many require that the property not be used for investment purposes. They may also require that the buyer pay into an Escrow account to cover insurance and other expenses. Additionally, institutions that offer these loans often also offer grant-finding services that will further ease the financial burden of purchasing a house. These grants are used to help pay for closing costs, down payments and improvements that the lender may require.

Loans intended for first-time homeowners take into account that the people applying for loans may have little or no established credit. Young buyers who have not had credit cards and may or may not have had vehicle loans run into many borrowing difficulties related to the lack of credit. First-time homebuyers should look for a good, fixed-rate mortgage if possible; variable-rate mortgages can cause severe financial difficulties in the long-term as interest rates fluctuate.

The dream of owning a home is not reserved for upper-class individuals who can afford all of the related expenses out-of-pocket, and first-time homeowner’s loans are an excellent route if you have limited available finances. Many states have government programs for “community development” that specialize in finding loans for higher-risk borrowers.

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