What does Home Mean to you? Let us know!

I want to know what home means to you! to participate simply send me a photo, short video, or a couple of sentences that explain what home means to you. I will be showcasing these clips in my blog
“What home means” and creating a montage of the meaning of home. Check out my photos for examples of what home means to me!
Send your clips to knoble@campbellhomes.com and let me know what Home Means to YOU!

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Time is of the essence

Consumers should be shouting off the rooftops about the fantastic deals they are being offered in both housing and mortgage rates. Mortgage rates have dropped to the lowest level since the 1970s. Housing prices are the lowest they have been in years, affordability is available and offered. So why are so many consumer waiting? I believe many consumers are waiting to see what will happen. They want the best deal possible so they are on the fence waiting for rates to drop even lower and home deals to get even better. But sadly they may be missing out on something that will not last much longer.

According to a recent poll done by local real estate industry professionals asking when they think the market will start to recover (meaning the sellers will once again get the upper hand) 25% said mid 2009, 25% said late 2009, and 37% said late 2010. If these predictions hold true we could see a shift in the next year towards stabilization of home prices and mortgage rates. This means that sellers will no longer give away the firestorm deals and incentives they have in the past 2 years and it is likely that with this stabilization the Fed will bring the interest rates back to a normal level we have seen in recent years rather then the under 6% range we see now.

So like any other investment there is risk and in a market like this the risk is much lower for buyers then it is for sellers. The deals are out there but many consumers might have noticed that less and less builders are giving away their homes and re-sale sellers are taking their homes off the market until the prices stabilize. The time is now; buy now or you might loose money later.

Buyers are seeing that there are a lot of great resale deals or perhaps hearing about all the quick sale/ foreclosures that are out there. Yes quick sales are up meaning that the amount of distressed properties are up. Many people are struggling to make their house payments because of all the crazy loans they were put into are now adjusting. This is both bad and good. The bad news is we never want to see this many people struggling with their payment, this is bad for both them, the banks, and the community. However President Obama has pledged that between $50billion and $100billion will be used to help boost efforts in combating the increasing mortgage foreclosures. The good thing is that an increase in Foreclosed sales and closes in the area means the inventory will soon be going down. The idea is the more inventories we wash out the more stable the market will be.

There is a pent up demand for homes out there and anytime now consumers will realize that now is not only the time to buy but the BEST time to buy. So as the title of this blog suggest, time is of the essence. Buy now or soon or else you could miss out or find yourself purchasing your home with a higher interest rate and a higher price.

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ANSWERS TO COMMON HOME BUYING QUESTIONS

Q: Shouldn’t I wait until home prices go even lower to buy?

A: No. Just as no one can accurately predict the peaks and valleys of the stock market (name one person who sold their tech portfolio in April of 2000), the same holds true for housing. If you wait for what you think is the absolute best deal, you could end up waiting for years. All the market fundamentals show that now is a good time to buy – prices are down, interest rates near historically low levels, and there are lots of homes to choose from.

If you buy now, you will not only be in the driver’s seat during the buying process, you will also reap the gains of price appreciation. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

Q: Doesn’t it make sense to wait out the market until can I get the same price on my home that my neighbor got when he sold a year ago?

A: No. It’s always better to trade up in a buyer’s market. While the value of your house has fallen, the prices of higher-end homes have also dropped. Here’s an example:

Your neighbor sold for $300,000. Let’s say values in your area have dropped 10 percent, so you could get only $270,000 for your home today. You have your eye on a move-up home that previously sold for $500,000, but now is selling for $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000.

But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are the move-up home would also increase in price 10 percent to $500,000. That’s a $200,000 price difference. So by selling today, you would actually save $20,000.

Q: Interest rates keep going down. Shouldn’t I wait until they go even lower before I buy a home?

A: Interest rates for 30-year, fixed-rate mortgages are currently around 6 percent and are extremely favorable for buyers. In fact, they are hovering near 30-year lows. But waiting to time the market is a dangerous game. Even those who follow the market for a living can’t figure out when interest rates will bottom out. If they could, they would all be multi-millionaires.

And home prices don’t necessarily move in unison with interest rates. So, if you decided to wait to purchase a home and the price dropped $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up by a half-a-point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making over the life of the loan.

Q: I have $10,000 to invest. Should I put that money in the stock market or buy a home?

A: Purchasing a home is by far the best long-term investment. For example, say you use that $10,000 to purchase a $250,000 home, and the house appreciates a modest 3 percent during the first year. That means after one year, the house would be worth $257,500 – a gain of $7,500. By contrast, putting the same $10,000 in the stock market and posting a similar 5 percent gain would only net a $500 return on investment.

And don’t forget the tax incentives. In most instances, all of the mortgage interest and property taxes you pay in a given year can be fully deducted from your gross income to reduce your taxable income. These deductions can result in thousands of dollars of tax savings, especially in the early years of the mortgage when interest makes up most of the payment.

Q: I’m a first-time buyer and still can’t afford the type of home that I want. Is it best to wait, keep renting, and hope that prices will get even lower?

A: If you continue to wait, you may never be able to afford to get into the housing market. Even as home prices are currently moderating or falling, depending on where you live, rents continue to climb. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year, fixed-rate mortgage.

Once you become a home owner, you are able to take advantage of the tax deductions that homeownership offers, and you begin to build equity in your property.

With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter-home. After a few years, you can use those equity gains to sell your starter home and move into a bigger house. The sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family.

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Home builders going 'green'

This is an article I found online at http://www.kvue.com/news/state/stories/032608kvuebuildgreen-cb.bb053c.html#

Please enjoy!

Home builders going 'green'
10:39 AM CDT on Wednesday, March 26, 2008
By JEFF BRADY / WFAA-TV
DALLAS — According to a recent survey by the National Association of Homebuilders, buyers said they would pay an additional $8,900 for a certified "green" home.
But are "green" homes really selling better? We found it depends on the builder, the buyer and the neighborhood.
Better insulation is one factor that makes a "green" house "green." In one house we found, recycled newspaper does the job.
Elizabeth Newman has been building homes in Dallas for 18 years. Just last year, she went all "green."
"Before I started building 'green,' I had people asking about building green," Newman said.
So what does it take to get a "Green Built" label in North Texas? Upgrades in waste reduction (or saving trees), water efficiency, indoor air quality, energy efficiency, using recycled materials, and educating the homeowner are all factors.
The downside? Prices on "green" homes are $10,000 to $28,000 more than similar models.
One we found is priced at about $750,000. Newman sold it the same day we were visiting . But some Dallas Realtors aren't yet seeing homebuyers clamor for energy efficient models.
"I just don't have a customer base that is demanding that they want a 'green' home. Nor will they pay any more for it," said Realtor Tom Rhodes. "They'd much rather have high tech homes with all the wireless, and studies, and that kind of thing."
Still, other agents say certain neighborhoods and buyers expect it. The more custom-built the home, the more likely the buyer is to expect a shade of "green."
"They will reap the benefits from the electric bill, the tankless water heater, xeroscape, that kind of stuff," Realtor Margaret O'Brien said. "So I really think that even though the price point might be a little more, you could definitely sell it — and I think there's a market for it."
The Green Built certification is so new that there are no numbers available to indicate how many are being built. The more familiar Energy Sar rating is the next best thing, and about 40 percent of all new homes in Texas last year earned that rating.
E-mail jbrady@wfaa.com

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The dream of owning a home…

When I was a little girl I was known as a BIG time dreamer. I could make up all kinds of fantasies of princes and princesses in my mind. As I got older my dreams didn’t fade they just became goals. At the age of 13 I set several goals for myself and I was far to strong minded to not get what I wanted out of life….don’t kiss a boy until I was 16 (Check, on my birthday), get good grades in High School (Check), go to college (check), Travel (looking at 10 countries and counting now, Check) and even finding a career I truly loved (finally, check!)…but it was not until I entered the home building industry as a New Home Consultant for a National Builder did I realize the value of owning a home, and let me tell you I HAD to have my own home!

At first people told me it would be impossible because I was only 25 at the time, single, and just started off my career from college. But being the big dreamer that I was I not only convinced everyone I could do it and got them all on board but in May 2006 I signed the papers that would make me the owner of my very own 4 bedroom 3.5 bathroom home!

The reason I tell you this story is that anyone who has the dream of owning a home can own a home all they need is some support and a path to get them to their goal. You might not be able to buy your home the very day you decide you want one, but if you put your mind to it and work hard to build your credit, save a little money, and talk to the right people to help you do these things, you to can own your own home.

Home ownership is part of the American dream. It’s a status symbol of “making it”. But keep in mind that your first home is not always your “dream home”. My first home is not my dream home but it met my needs and because I invested smart and researched the right builder option for me I was able to find a home that not only met my needs but when I go to sell this home I will be able to transfer the equity I made to the next home which will be a little bit better then the one I have now.

Statistics show that in a lifetime the average person will own 4-6 homes and not until their 4th home will it be considered their “dream home”. I might have a few houses to go before I reach dream status but at least I have the goal in mind to reach my “dream home”.

Have you been dreaming of home ownership and don’t know where to start? There are several steps to take before looking into purchasing a home…

First of all check your credit. Borrowers who have a credit score over 700 are usually offered more financing options and a better rate but do not let a lower than 700 credit score detour you. I have seen people with credit scores in the 500s purchase homes. The idea is you need to prove that you have credit, you pay your bills on time, and how long you have had your credit. A mortgage advisor or Realtor can also help to discuss your credit options with you when it comes to buying a home. In fact most mortgage companies will pull your credit for a small fee and also can do a free prequalification.

The next thing you should do is find a Realtor. Realtors are experts in the business of helping people find homes. Just make sure your agent has your best interest in mind. If you happen to be looking for homes in Colorado Springs I have a whole lot of contacts I can give you. Meet with a couple of agents and DO NOT SIGN ANYTHING until you have decided that is the agent for you then you will sign an agreement stating that this person is your representative. Also you should know that as a buyer you do not have to pay for your Realtor but the seller will. So its basically free help for to you find what you are looking for. When I purchased my home I used BJ BURNS who was amazing in meeting my needs. Now you don't NEED a realtor to buy a home but its always helpful to have an expert on your side.

The third thing would be for you to BE REALISTIC. Again your first home is not your dream home; it’s just the home that meets your needs. It takes time to get to the “dream home" status, but that does not mean you don’t have to like where you will be living just know you can’t have it all on the first run…

There are several steps to home ownership but the important thing is you have the goal and the dream in mind. If you happen to be looking for a home in Colorado Springs, CO or if you have some general questions about home ownership please feel free to contact me and I would be more than happy to help you make your dream a reality!

And as always Campbell Homes has been making the dream of homeownership since 1965 so I always encourage you check us out at http://www.campbellhomes.com/

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