My New Blog

The U.S. goverment recently extended and expanded the home buyer tax credit. The $8,000 first time home buyer credit that was scheduled to expire Decemebr 1, 2009 will continue in effect until April 30, 2010.

In addition, beginning December 1, 2009, many current homeowners will qualify for a $6,500 tax credit if they;'ve lived in their current home for at least 5 years and are seeking to buy another home.

With home prices and intrest rates at historic lows, there really has never been a better time to buy.

If you have a family member or friend who could benifit from learning more about this tax credit program, please have them call us for a FREE consultation so we can discuss how they can take advantage of this historical program. Because this program is a tax credit- it does not have to be repaid. You actually recieve a check that can be used for anything you need, including buying a home.

The winners in this housing market

Investors, capitalist, call them what you like but in bad times their opportunist at best.

The age old sayings always buy on bad news and sell on the good news just make sure the bad news isn’t all that bad.

In our quaint little county of St. Clair our falling housing prices aren’t a reflection of over building, speculation and a demand, driven hyper housing bubble, our housing troubles are JOB related period… However, our values have fallen like it’s both.

The other old saying is it doesn’t matter how cheap a home is or how low the interest are, if a home buyer is worried about their job they are not buying anything.

Back to the investor, capitalist, they act on the value not the emotion they buy up the bottoms of the market sit, rent, them and wait out the emotional sky is falling consumers when they regain confidence, “they always do” The investor/capitalist sells on the good news, re-price the homes to suit there investment needs, in other words cash out to the new confident consumer, and wait again for the cycle of fear to begin again in something else.

Buyers buy the dip! Get capitalist/investor minded there are great buying opportunities out there with great rates and loan programs that even cover job loss. Sitting on the fence will only cost you more in interest and price and yes the fable “I should haves” because you acted on fear, the emotion that drives you either to or away from something, call Real Estate Masters today 810-987-8600. Buying may never be this affordable again!

Many brokers talk short sale, short sale doesn't mean your out.  Many lenders may short the payoff to sell the home, but may still come after you for the deficiency; via judgement, ganishment and other collection methods. Some may even issue you a 1099-C to show the shorted amount as income paid to you.

For 31 years we've moved the St. Clair County housing market with sound advice and care all the while keeping your concerns confidential. You see, we're not the foreclosure, troubled property Real estate Company attacking bargin hunters and bottom feeders. Take the high road.... call Real Estate Masters today at (810) 987-8600 or 1-800-987-1188 so your tomorrow will be better.

It's especially important to know that when you are looking at or considering buying a foreclosed home with an agent or agency who is also selling it, keep in mind they are bound to negotiate and transact in the best interest of that foreclosed home, also you as the buyer "as is" period, not even receiving a single disclosure about the worthiness and past or current condition of the property.

    But you do have a choice! To be exclusively represented thus having an advocate on your side. Call upon Real estate Masters. Our associates will exclusively represent you. Here are just a few issues we'll look out for you on. We'll point out and discuss problems now and after the sale consider like property taxations, home inspections, appraisals, and declining market issues. The unlikeliness of fixing up and profiting, a market analysis of value for you and help set proper expectations of how future values look!

    Remember, it was like government financing and loose lending that got the home foreclosed in the first place, so don't trust them or their brokers this time either. We'll show you everything you need to be a good, well educated buyer in this market. Call (810) 987-8600 today! We'll be your advocate and partner on the home front. Remember, the four most important things in real estate..... Location, Location, Location, and Condition!

MYTH one: Since I bought it for less than the taxable value my property taxes will be adjust down.

TRUTH: Not likely period! You should plan to pay the taxable value. There is no law that makes the taxes go down because of purchase price.

MYTH two: It must be a good deal, its priced $40,000 dollars less that what the past buyers owner on it.

TRUTH: The multiple refinancing and 120% loan to value lending only pushed the mortgage up to levels never seen before, so frankly what ever it sells for today is really its true market value. Its past value has no bearing on its future value, homes too are just like stocks, they only go up when more people want to buy them then there are sellers who want to sell them business 150 "supply and demand"

MYTH three: I can make money buying a HUD or foreclosed home.

TRUTH: Most times the HUD or foreclosed homes that are money makers never make it to the open market for consumers, insiders have already bought them.

MYTH four: I can fix up a HUD or foreclosed home and make some quick equity.

TRUTH: Most buyers really under estimate the cost, time, effort involved with the process and really do know better and in some cases even do worse than had they just bought a better kept and conditioned home from the start that needs little or no work at all.

MYTH five: Selling my home via a short sale relieves us of any further obligation.

TRUTH: Actually the lender can seek a deficiency judgment, for the balance.

Real Estate Masters....your Real Estate Advocate! Call 987-8600 on any home in the market.

THERE IS NO BETTER TIME TO BUY A HOME THAN RIGHT NOW. YES, WE HEAR ABOUT THE HOUSING MARKET EVERYDAY AND SURE IT'S HARD IF YOU'RE A SELLER.... OR IS IT? AFTER ALL, IF YOU'RE A SELLER YOUR ALSO LIKELY TO THAN BECOME A BUYER TOO! THE OPPORTUNITIES ARE CERTAINLY THERE FOR BUYERS. HERE ARE A FEW FACTS.

FIRST:

THE CREDIT CRISIS WILL LIKELY CONTINUE AND TIGHTEN AS TIME GOES ON. THUS, LIKELY MAKING IT HARDER FOR SOME PURCHASERS TO GET FINANCED.

SECOND:

LESS THAN 5% OF ALL MORTGAGES ARE EITHER AT OR IN DEFAULT, WHICH MEANS 95% ARE IN GOOD STANDINGS AND THAT'S AGAINST HISTORICALLY HIGH NATION WIDE HOME OWNERSHIP.

THIRD:

HOME MORTGAGE RATES ARE NOT LIKELY TO GET ANY BETTER.

SO HERE ARE SOME POINTS TO PONDER. THE HOME BUYER OF THE PAST WAS FACED WITH LOW RATES AGAINST, EVER INCREASING HOME VALUES THAT WERE SIMPLY INFLATED DO TO LOW RATES AND CREATIVE HOME FINANCING THAT LENDERS KEPT BREWING UP. AS MULTIPLE BUYERS MADE MULTIPLE OFFERS FOR THE SAME HOME, THE BIDDING UP ALSO PUSHED HOMES BEYOND REASON. THE "CULPRIT LOW RATES" BUYERS BOUGHT PAYMENTS NOT CALUES. SELLERS WITH MULTIPLE BUYERS DID WHAT ANYONE WOULD DO ACCEPTED THE BEST AND HIGHEST LAST OFFER, THAT'S PERFECTLY NORMAL. THE MARKET WAS THE MARKET. THE MARKET HAS NOW COME FULL CIRCLE AND THE BUYER NOW HAS THE NEGOTIATING ADVANTAGE. THAT IS IF THEY CAN LOGICALLY SORT THROUGH THE MORTGAGE OPTIONS. THE GOOD VALUES FROM THE BAD VALUES AND THE PRECEPTION OF WETHER IT IS REALLY AS GOOD OF A DEAL AS IT APPEARS. THAT'S WHERE A GOOD REALTOR ACTING AS A GREAT CONSULTANT CERTAINLY PAYS OFF. REMEMBER, JUST BECAUSE YOU MAY BE BUYING A HOME FOR LESS THAN THE CURRENT OWNER HAS PAID FOR IT DOES NOT MEAN IT'S A GOOD DEAL FOR YOU. THEY MAY HAVE OVER PAID AND OVER FINANCED. REMEMBER, YOU AT THE TIME OF SALE SET VALUE, DON'T THINK OR BE FOOLED INTO BELIEVING VALUES WILL COME BACK AND YOU'LL BE WISER. VALUE LIKE WEALTH TAKES TIME, NOT TIMING.

REMEMBER WHAT I SAID EARLIER, IF YOU ARE A SELLER NOW YOU’RE LIKELY TO BE THE BUYER NEXT AND YOU'LL GET YOUR TURN AT RENEGOTIATING YOUR NEW PURCHASE. THE SMART ACTION TO YAKE IN TODAYS HOUSING MARKET HAS NEVER CHANGED... THAT IS ALWAYS BUY UP IN A DOWN MARKET, THE LOGIC IS SIMPLY YOU BUY UP BECAUSE THE HIGHER PRICE HOME IN THE SAME MARKET FALLS BY A LARGER % IN DOLLARS THAT THE LESSER PRICE HOME YOUR WANTING TO SELL, EXAMPLE THE MARKET SOFTENS BY 5% ON A $200,000.00 DOLLAR= $10,000.00 ON THE $100,000 HOME AT THE SAME 5%= $5000.00 THUS YOU WIN BY $5000.00 NOT TO MENTION THE VERY ATTRACTIVE INTREST RATES "AS LOW AS 6% ON A 30 YEAR FIXED LOAN" YEAH, THATS RIGHT, SO YOU EVEN WIN IN THE RATE GAME TOO. THE ONE THING FOR SURE IS YOU CAN'T TIME THE MARKET SO YOU NEED TO ACT WHEN VALUES ARE THERE, SUPPLY IS AMPLE, AND RATES ARE FAVORABLE.

NOW, LET US LOOK AT WHY BUYING NOW MAKES YOU MONEY AND MAKES SENSE. FINANCE COST WILL RISE AS WELL AS HOME PRICES, AS THE ECONOMY RECOVERS. SO TRYING TO TIME REAL ESTATE MIGHT NOT PAY OFF. TODAY'S $100,000.00 DOLLAR HOME AND THIS SPRINGS $100,000.00 DOLLAR HOME SAME PRICE RIGHT? "WRONG", YOU SEE CHANGES ARE THIS SPRING, RATES AS WELL AS VALUES COULD BEGIN TO RECOVER, ALONG WITH THE ECONOMY FOR ILLISTRATION PURPOSES WE'LL FOCUS THIS ON THE COSTS OF MONEY, WITH NO INCREASE IN THE HOME PROCES. TODAYS INTREST RATE AT 6% OR SUPPOSE THIS SPRING RATES WENT UP BY 6.5% ON THE SURFACE NOT A BAD RATE STILL. BUT LOOK AT IT FROM THIS PERSPECTIVE, THE DIFFERENCE IN YOUR PAYMENT OVER THE LIFE OF THE LOAN WILL COST YOU $11,500.00 MORE BY WAITING. NOW THIS COST ONLY COMPOUNDS ITSELF HIGHER WITH THE COSTS IF YOU'RE BUYING OVER THIS $100,000.00 DOLLAR ILLUSTRATION.

REMEMBER THE HOUSING MARKET IS A CONTINUOUS LOOP BUYING UP IN A DOWN MARKET, THE BUYER WINS. AS A SELLER YOU’RE LETTING LESS GO TO BUY UP TO GAIN ON A GREATER PERCENTAGE OF YOUR PURCHASER. "WIN/WIN"

NOW FOR THAT PESSIMIST THAT JUST NEED YOUR FIX OF BAD NEWS, HERE'S SOMETHING FOR YOU. IF YOUR BUYING DOWN, IN OTHER WORDS WANT TO SELL A HIGH PRICE HOME TO BUY A LESSER PRICE HOME, OR MOVING OUR OF THE AREA, WHERE YOU CAN'T GET YOUR CHANCE AT CAPITLEISM, THEN I SAY TO YOU WHAT A WISE MAN SAID TO ME MANY TIMES "EAIASTAEOGO" ..... EVERY ADVERSITY IS A SEED TO AN EQUAL OR GREATER OPPORTUNITY. GO FIND IT AND REMEMBER THE AVERAGE BROKERAGE FIRM WOULD NEVER EXPLAIN THIS TO YOU, THAT'S WHY YOU OWE IT TO YOURSELF TO CALL REAL ESTATE MASTERS OF AMERICA, INC. (810) 987-8600 NOW! THERE'S A GOOD REASON THIS IS OUR 30TH YEAR IN BUSINESS, AND SELL THE MOST HOMES IN THE COUNTRY YEAR AFTER YEAR.

"The case against waiting to buy..."

    Why buying now makes you money! Finance cost will rise as well as home prices, as the economy recovers. So trying to time Real Estate might not pay off today’s $100,000 dollar home and this springs $100,000 dollar home same price right? "WRONG" you see chances are this spring rates, as well as values could begin to recover, along with the economy for illustration purposes we'll focus this on the costs of money, with no increase in the home prices. Today’s interest rate at 5.75% or this spring suppose rates went up only to 6.25% on the surface not a bad rate still. But look at it from this perspective, the difference in your payment over the life of the loan will cost you $11,500 more and the difference of the rate over the life of the loan will cost you an additional $11,600 for a total of $23,000 more by waiting. Now this cost only compounds itself higher with the costs if you’re buying over this $100,000 dollarillustration, the average brokerage firm would never explain this to you that’s why you owe it to yourself to call Real Estate Masters. 810-987-8600 now. Theres good reason this is our 30th year in business, and sell the most homes in the county year after year.

99% of the time not by a long shot. Here’s a look at the facts. Fact is the mortgage balance amount owed does not mean property or market value.

Many mortgage lenders loaned out 110% to 120% of a property's market value to the buyer. In other words, if a property's market value is $100,000.00 they would loan out as much as $110,000.00 to $120,000.00 against it. Now you ask why would and lender loan out more on a property than its current market value? Not to get into poor assessed evaluations and appraisal practices, which is a whole separate house of problems, “no pun intended" back to the question why? First, to pull out and fund there upfront profits from loan originations to closing costs, to the spreads on loan rates, selling certain high profit loans to uniformed consumers. Second, the buyer qualified by past standards and well isn't property always supposed to go up in value? So they will loan out in advance 3 to 5 years of anticipated market appreciation and when the buyer resells 5 to 7 years later " on average" the value would have caught up to and would be greater than the loan "opps" that only works in growing economy and market with low unemployment, so if the home owner has an employment issue " no job" and no "margin" of equity in the home no "mission" to stay, they hand the home back to the bank, " There other wise fair weathered friend" So along comes the next buyer of the shorted or foreclosure home. They believe that buying it for less that what it is owed on the home was a great deal. When all they really did was buy a home at market value, not to mention home that likely needs thousands of dollars of maintenance and conditioning.

So what the lender looses is simply the excessive fees, profits and loan spreads and interest charges they have used to drive billions of dollars of profits to their bottom line over the past decades from the sweat and labor or their uninformed customers. Maybe when all the dust settles, they will put the consumer in the loans best suited for the consumer rather than the ones that are the most profitable to them (a more transparent lending process) After all, he who controls the gold makes the rules.

So from my perspective, most of the best opportunities and values come from purchasing homes owned and cared for not over loaned and uncared for. With a well trained Real Estate Broker helping you through the process of shopping by comparison and with the proper market value perspective, you'll find the best home for your money and the best money for your home.

Call 810-987-8600 today for a good perspective.