Are People Still Buying Homes In this Market

I had to respond to this question because it drives me INSANE when people in general tell me that NO ONE is buying homes. Let me just say, that I love the real estate business because even though we all had to make adjustments to this crazy market, everyone has to live somewhere.


There will always be home owners that have to sell for whatever reason and buyers that need a place to live for whatever reason. It's a never ending cycle, so if you're one of those people that say this then you have to realize what a ridiculous and general statement it is.


**Now that I got out my frustration and have taken a deep breath, I will continue.


When the market was thriving and prices were high, homes were selling like hotcakes. People were getting 100% financing and they didn’t even qualify. Little did we know that this would be the cause of a crumbling market. For the last two plus years there has been an overwhelming amount of foreclosures and short sales on the market than ever before. The result is, with so much inventory on the market and the increase in the unemployment rate home prices dropped.


Since 2007 prices fell dramatically in other states. For instance, in my city, which is Brooklyn, New York a two family brick home in Canarsie that used to sell for $700,000+ is now selling between $500K to $550K or a 1 family three bedroom duplex home in the East Flatbush area code that used to sell for $450K—$500K can sell today between $375K to $420K.

Even though banks are not as lenient buyers that would have never been able to buy a few years ago when prices were high are doing whatever it takes to take advantage of a lifetime opportunity. First time home buyers are taking a leap of faith and buying real estate. They are working hard to fix their credit reports, join first time home buyer programs, seeking out co-signers, and saving their cash. While I'm typing in my pj's interest rates are at an all time low (quoting 4.75%) and prices are still affordable.

So you better believe buyers are out to play this real game and most of them are winning.

If you have to sell your home this is a great time to get your home on the market. It may take a little longer due to the mortgage process but if you hire an excellent real estate agent or broker then you can sell your home in this market. If you're looking for a top producing agent Brooklyn, New York give me a buzz, email or text.











Now that you know buyers are out there buying, you can get all the behind the scene secrets to selling your home in 21 days. You have to check out this ebook whether you plan to use an agent or not. Click here to take a look!


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Do I Qualify To Buy A Co-op or A Condo

Since I sell so many co-ops and condos I am always faced with the statement, "I'm not sure if I should buy a co--op or a condo." The fact is, these two types of properties are very different when you go down the list of qualifications to purchase.


Most people don't have a choice between the two because of the requirements for each. Below I will share with you some of the information I share with my buyers.


BASIC QUALIFICATIONS FOR PURCHASING A CO-OP
- PRICE
The price of a co-op is usually much less than a condo


Below is an example of someone wanting to buy a two bedroom unit, but doesn't know if they meet the requirements to buy a co-op or a condo:


-For Co-ops: and your mortgage will automatically be lower than if you purchased a condo in the same area. So if your're mortgage broker pre-approves you for a two bedroom co-op ranging from $200,000 to $225,000 then you cannot go out and get a two bedroom condo that would most likely be $299,000 to $350,000, unless you plan to put down a HUGE down payment so your loan amount is less.


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*DOWN PAYMENT


-For Co-ops: Most co-op buildings require between 10-20% down depending where you live.


-For condos: Lenders usually require a 20% down payment, but some condo complexes are FHA approved and you may only have to put down 3.5% (simply ask your lender if the conod complex you're interested in is on the F.H.A approval list).
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- Credit Score - Lenders are usually pretty strict when it comes to co-ops, so you need to have good credit.


- Income - If the buyer needs a two bedroom, to purchase a co-op the buyer will need to earn at least $80,0000. All the income must be verified with stubs and tax information.


As a buyer looking into purchasing a co-op or a condo you should look at the two scenarios above very carefully. Looking at the requirements for each, it's pretty easy to know up front which one a you qualify for.

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How Do You Buy A Home

Whether you're buying for the first time or not you need to know the beginning process to buy a home. By educating yourself you will ease your fears and frustration. But the main reason to know some of the major steps is so you can prepare yourself and get your documents in order.


You can take advantage of the low interest rates and some of the deals that are still lingering on the market, but time is of the essence. So take out a piece of paper to take down these steps or print out this blog article to use as a guide.


**COPY THE LINK FOR THIS ARTICLE AND SHARE IT ON YOUR FACEBOOK, TWITTER AND EMAIL IT TO YOUR FRIENDS AND FAMILY. VERY MUCH APPRECIATED!


Once you have found the home that fits your price range and needs then you need to be prepared for the following steps:


Step 1. Make An OfferOnce you have found a home you want then it's time to make an offer. An offer IS NOT A CONTRACT, it's just an offer saying that you are interested in the house, at a particular price with certain terms and conditions. The offer will keep you in line for the property just in case someone else comes along after you.


Step 2. Counter OfferA counter offer is when the seller would like you to either come up in price and or wants to change other terms and conditions. Some terms and conditions could be the seller's concession, move date, repairs, etc.


Step 3. Acceptance
Once you and the seller have come to an agreement then you will have an acceptance. Now that your offer price has been accepted with all the terms and conditions you are on your way to getting the property you want.


Step 4. ContractThis is the part that makes most buyers shake in their boots. But the fact is, you did all this work to find a home so when you get the one you want you should be excited. If you have chosen a home that fits your needs and you can afford it then you have made a great investment choice. Once you have done step 1-3 then your transaction goes into contract. Once you and the seller sign then you are in a legal and binding contract.


*Before you sign your contract your lawyer and real estate agent will suggest you have inspections to find out the condition of the property and if anything has to be renegotiated or if you still want the property at all.


Step 5. Down Payment Now don't let your lawyer have to wrestle you to the ground to get that big down payment check out of your hands. When you go to sign your contract your lawyer kindly ask you to bring your down payment. Your down payment is necessary in order for the seller to know you are serious and to take the property off the market.


**A down payment is like a lay away that you do at a retail store. You put your money down and sign a contract and the house is taken off the shelf so no one else can buy it. When you get the balance of the money (a mortgage approval for a loan) to buy the house then it's all yours. You didn't think of it like that huh?


After you have met the 5 steps you will have other inspections, searches on the property and your mortgage process will begin. There are many people involved in one transaction and in order to meet deadlines you need an aggressive and experienced real estate agent to make sure everyone does their job and solve any problems that may arise.


**Now that you know the five basic beginning steps, now you need to know all the things you need to be aware of so you can make smart emotional and financial decisions. Check out this great ebook called, "Home Buying Defense Guide", it is filled with all the things you need to know and to look out for and will save you thousands of dollars in mistakes. Check it out right now!


**COPY THE LINK FOR THIS ARTICLE AND SHARE IT ON YOUR FACEBOOK, TWITTER AND EMAIL IT TO YOUR FRIENDS AND FAMILY. VERY MUCH APPRECIATED!


I read all comments so I would love some feedback. Be nice! Visit my real estate site at: www.RhondaHolt.com

How Do I Qualify To Buy A Home

This is a question that I'm happy to answer because many buyers have no clue what it means to be qualified to buy home. Lending institutions have become more strict and buyers have to prove their financial worth. So in this article I am going to lay it out in plain simple english.

**I am begging you to share this article in with everyone you know that may be thinking or are already out looking to buy a home. I need help spreading the word so people can get educated.

If you’re a buyer it’s crucial that you understand what you need before you go out shopping for a home. A mortgage broker may tell you to improve your credit, save more money for a down payment, closing costs, or you need more income. Nothing is more disappointing than doing all that work to find a home and then you have no chance of getting it.

I meet people that put more time into researching the shoes or power tools their going to buy. They take time to search online or even walk malls to compare prices, brands, features, etc. So why should a home be any different and it's a way bigger puchase. Makes sense huh?

So below are some things you should be aware of before you believe you can purchase a home:

- Income – This means that you have to show proof of income with paystubs and a job verification letter. Please understand that even if you have money hidden under your mattress or you work off the books, the lending institutions do not care and considers that money invisible. You have provide documented proof of a paycheck or if you’re self-employed you must supply bank records and tax records.

So what is considered income? Income is an amount of money you usually receive on monthly basis. A job of course, social security, pension, retirement, alimony, child support, etc. Consult with your mortgage broker about any other types of income.

How much income you need will depend on the price of the home.

-Steady Employment – In New York, the banks want you to have at least two years of continuous employment with no gaps (there may be exceptions). So if you’re thinking of changing your job and or field you may want to wait after you have made your purchase. Consult with a mortgage broker in your area.

-Tax Forms and W2’s - Lending institutions require that you have the last two years of your tax forms and w2’s.

- Credit – Your credit requirements will depend on the type of loan you are applying for such as F.H.A, SonyMae or a conventional loan. But the higher your credit the better your interest rate will be and you increase the chances of getting your loan.

-Down Payment – Yes, the dreaded down payment that haunts all home buyers. In this market the banks and the sellers expect you to leave a down payment when you sign your contract. Your down payment will depend on the type of property, purchase price and loan requirements.

-A Great Agent – This is not a requirement, just a suggestion. But in today’s market it is highly recommended that you use an experienced agent to help you along the way. Buying a house in this market involves more details because of lender requirements. Let an agent represent you during the process and help to resolve any problems that may arise.

*I found a great source that is excellent for helping you know what to be aware of during your home buying process called, the Home Buying Defense guide. This ebook that you can download right ow covers everything you need to know to protect yourself and your finances and to help you make smarter buying decisions. Click here to check it out now!

**I am begging you to share this article in with everyone you know on Facebook and Twitter that may be thinking or are already out looking to buy a home. I need help spreading the word so people can get educated about becoming qualified.

*Did this article help you find out if you're qualified to buy a home?