Real Estate Outlook 2010:

Tips for Buying or Selling Real Estate in 2010

Low interest rates, home buyer tax credits and affordable prices create an attractive environment for anyone thinking about buying their first home, moving up or down sizing this year.

Home sellers who tune in to current conditions and what buyers want can also achieve their goals in 2010.

Here is a summary of 10 tips for buying or selling real estate in 2010 that were recently published by www.bankrate.com:

#1 Take Advantage of the Home Buyer Tax Credit Program (Expired April 30, 2010)
First-time home buyers who sign a contract by April 30, 2010, and close by June 30, 2010, qualify for an $8,000 tax credit. The program's maximum income limits have been increased from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.
For those who have owned their home for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit is available.
Also, homeowners who owe more on their current mortgage than the property is worth are eligible for a loan-modification program with their current mortgage company or loan servicer through the Making Home Affordable Program.
(Contact Granite Mortgage for information.)

#2 Find Down Payment Assistance Programs
There are several down payment assistance programs for first-time home buyers at the federal and local levels. Other down-payment assistance programs that piggyback on federal programs are often available at the city, county and state level.
(Contact Granite Mortgage for more information.)

#3 Improve Your Current Home
Low financing costs, reduced construction materials costs and lower contractor costs make now a great time to fix up your current home, either for a potential sale or to simply enjoy. Repairs that typically yield the highest returns are kitchen and bathroom makeovers.

#4 Hire Experienced Real Estate Professionals
Whether you are buying or selling a home, now is not the time to try to go it alone. Choose a Realtor, appraiser and home inspector who have proven experience your market.

#5 Price Your Home to Sell
An experienced Realtor will have the knowledge to analyze current trends and sales statistics in your neighborhood. He or she will use this information to determine a listing price that will bring a qualified buyer in the shortest time possible. The listings that generate interest today are those whose owners have adjusted their expectations based on the realities of current market conditions.

#6 Don’t Wait for a Total Market Recovery
Delaying your home purchase or sale can actually cost you more. Example: Take a move-in-ready house that appraises for $250,000. Because there's competing inventory, your Realtor advises you to take 10 percent off the price. Now you'll be selling for $225,000. But consider that you only paid $175,000 for the home in 2000.
Making a $50,000 profit is not a loss. What's more, if you move up in the same or a similar market, you will likely realize that same 10 percent discount on your next home purchase. Also keep in mind that when interest rates go up, they will do so quickly and dramatically.

#7 Real Estate is for the Long Haul
If you are a buyer, don't settle for a home just because you're getting a bargain. You want a home that suits your long term needs. Think about functionality, location and access to services, highways, schools, relatives and mass transit. Do your homework and examine all options.

#8 Get Green in More Ways than One
Homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can get a 30 percent tax credit for up to $1,500 off their costs on each product. This opportunity is available for purchases made through Dec. 31, 2010. A 30 percent tax credit with no spending limit on each system is available through 2016 for products such as solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems.

#9 Rent to Own
Lease-to-own transactions allow buyers to rent a home for a designated period while paying a higher-than-market fee to buy down an eventual down-payment. This allows renters to try out a home while they repair their credit, and helps sellers generate an above-market revenue stream on a property they might have sold at a lower than desired price. Specific contracts spelling out all requirements and options are a must!

#10 De-Personalize Your Home
This is often a difficult for home sellers, but they need to enable potential buyers to envision the property as their own home. Remove personal items such as pictures and knickknacks before you put a house on the market. Your Realtor will have very specific recommendations on how to make a great first impression in a competitive market.