Now is a great time to be a first time home buyer!   There are "perks" for entering the market at this time. Not only are there historic low interest rates for borrowing money, but with the recent housing market correction, most properties are now discounted 30-50% from just a few years ago!  Plus, the government is offering an $8000 tax credit, to first time homebuyers who live in their home for 2+ years, and up to $6500 to repeat home buyers!  Now is definitely the time to buy!  But what?    *Tax Credits are continually up for renewal, check with your Realtor for more information.

When you purchase a home, there are three main choices to choose from.

Retail- A retail property is typically any property listed on the MLS at full market value.
The joy of purchasing a new home often wraps the buyer up in it, thus, most first time home buyers will pay retail or above retail for their home.  It becomes an emotional decision; many  just get excited and fall in love with a home at the top of their price range, and then "have to" buy it.  Most home buyers buy at retail.
 

Discounted- A discounted property is one that is offered at a discount to market value.  A unique situation is usually involved, such as a foreclosure or short sale.  There are some first time buyers who want more of an investment; a home where they can have, or can even create, some instant equity.  These first time home buyers look for homes in the discounted market.  This market represents 10% of properties, and these sellers are highly motivated, distressed, or in a unique situation.  Such properties include short sales, bank owned properties, and foreclosures.  This is how the average home buyer can get a good property, at a great price.

Work Needed- A property that needs work could be something as simple as updating fixtures, or adding new paint and carpet, or something more complex, like an unfinished basement, or necessary electrical or plumbing work. There are some first time buyers who want big returns on their investments, so they buy homes that are in need of work or upgrading.  These types of homes are typically the cheapest on the market, since most buyers do not want to invest the time, money, or effort needed for fixing up the property. Buying a fixer upper does demand more work, but more often than not, the financial reward makes it all worthwhile.

 

We can help you find any and all kinds of properties,  whether you are looking to pay retail, buy at a discount, or fix up a property, we would love to assist you in the process.

The real estate process is really a team sport; you will have the opportunity to work with our network of lenders, appraisers, inspectors, real estate agents, insurance agents, and closers.  We simplify your real estate transaction by walking you through it, step by step, and teaching you the things you need to know along the way.  We want you to have a successful and memorable experience, so that you will not only use our services in the future, but also refer us to your friends and family.

Buying your first home should be a rewarding and memorable experience, and 2010 is a great year to buy your first home.  We look forward to working together. Use our contact us form to get started today
 

Investment Real Estate 101 -  Make your Home an Investment -  First Time Home Buyers