Erie Real Estate

Take the Stress Out of Homebuying - Part 2

6. Remember your home doesn’t exist in a vacuum.

Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. A home’s most important role is to serve as a comfortable, safe place to live.

The home above is located at 3509 Julie Dr.  A virtual tour is available.

If you have any questions about home buying or selling, please contact me.

Take the Stress Out of Homebuying - Part 1

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

The home in the above photo is located at 3605 Anne Marie Dr.   Click here for a virtual tour.

Part 2 contains 5 more tips to take the stress out of homebuying.

Home Buyer Workshop

We're having a Home Buyer Workshop every Saturday morning in January.  10:00 - noon.

FREE - no obligation.

Information about the Home Buyer Tax Credit extension, 4.5% new construction intrerest rate from PHFA , buyer agency information, the home buying process and more will be available.

Colleen Konkel from Wells Fargo Home Loans will be onsite to answer financing questions and to do mortgage  pre-approvals.

Last Saturday was the 1st day that we did this and the response have been good.  The location is at the Pro Realty, Inc. office located at 4720 Pine Ave.  Will you be stopping by?

Remember the Home Buyer Tax Credit  expires April 30, 2010.

Come on in and let Pro Realty take the stress out of homebuying. 

1.4 Million Have Taken Advantage of First-Time Home Buyer Tax Credit.

More claims are expected.

With the First-Time Home Buyer Tax Credit deadline quickly approaching, the IRS recently reminded potential home buyers they must complete their first-time home purchases before Dec. 1, 2009 to qualify for the special first-time home buyer credit.

The credit of 10% of the purchase price, up to $8,000 is generally available to home buyers with qualifying income levels who have never owned a home or have not owned one in the past three years.

If you have not made a purchse yet and are considering doing so, here are some details about the first-time home buyer credit.

Have you received your credit yet?

I'm not making this up

As the inventory of homes on the market in Erie and surrounding areas continues to fall, more situations are arising where buyers find a home they like but before they can buy it someone else does.  Also, the person that does buy it probably was in competition with another buyer(s).  I know this is hard to believe because you continue to hear about the 'glut' of houses on the market.  Not so in Erie.

Here is how the 1st quarter of 2009 compares with the prior 2 years:

Number of New Listings

Jan - 07    371        Jan - 08    280        Jan - 09    223

Feb - 07    323        Feb - 08    295        Feb - 09    233

Mar - 07    419        Mar - 08    383        Mar - 09    332

The above is for residential properties.

There are less homes coming available on the market.  29.2% less than 2 years ago.

For buyers who are ready to buy, when you see a home you want don't wait for the price to go down or wait for anything.  Make an offer even if it is not full price.  If you don't someone else will.

While market acitivity and multiple offer situations are increasing there are some bargains out there too.  Some large price cuts are happening in certain areas and price ranges.

Most buyers all ask the same question and that is if they buy a home now, how much will it be worth in a few years.  I don't have that answer - nobody does.  Dont' let them tell you otherwise.  I do know that rent goes up every year and this year prices have been down, interest rates are at an all time low there is an $8,000 Tax Credit available to First Time Buyers. 

Owning vs. Renting

People often ask me some about some of the benefits of owning a home versus renting.  Here are a few thoughts.

Ginnie Mae's site has a great renting vs. buying calculator that is very easy to use.  This could help you decide if owing is the best financial option for you.

You may also want to take into account that when you own there are Tax Breaks, Appreciation, Equity, Savings, Predictability, Freedom, and Stability.  

Will be available - soon...

  Edinboro area - 10 acres.

City of Erie - west side.

  City of Erie - east side.

These properties are not available at the moment, however will be on the market soon.  If you would like additional information, please contact me.

Who will originate mortgages?

Who will lend to future home buyer?  The options are shrinking .  Read on.

Your Credit Determines Your Buying Power

5 Factors That Decide Your Credit Score

Scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

Your Payment History. Whether you paid credit card obligations on time

How Much You Owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.

The Length of Your Credit History. In general the longer the better.

How Much New Credit You Have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

The Types of Credit You Use. Generally, it's desirable to have more than one type of credit.  For example - installment loans, credit cards, and a mortgage.

For more on evaluating and understanding your credit score, go to www.myfico.com . 

Why You Need A REALTOR

Benefits of Using A REALTOR

A real estate transaction is complicated.  In most cases, buying a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, and multi-page government mandated settlement statements.  A knowledgeable guide through this can help you avoid delays or costly mistakes.

Buying a home is time consuming.  Once you find the right home for you it can take another 45 days or so for the transaction to close after the offer is accepted.

Real estate has its own language.  If you don't know a CMA from a PUD, you can understand why it's important to work with someone who speaks that language.

REALTORS have done it before.  Most people buy and sell only a few homes in a lifetime.  Even if you've done it before, laws and regulations have change.  Having someone on your side is critical.

REALTORS provide objectivity.  Since a home often symbolizes family, rest, and security, not just four walls and roof, home buying can be an emotional undertaking.  For most people a home is the biggest purchase they'll ever make.  having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.