As we near the end of Summer there are a number of things to think about if you are in the market for a home or condo.
- The $8000 federal tax credit expires November 30, 2009. A big incentive not to put off a purchase until next year.
- There is State Bond Money on the way. No rates or details yet but the rates should be good. There are always income limits and the help on Bond issues is generally around 4%. Borrow 200k and that’s an $8000 credit plus the tax rebate. Stay tuned!
- FHA is still the best way to go for a low down payment of 3.5%. You have to have a great lender when doing spot approavals. Checking things out in advance is the best way to go. FHA spot approvals.
- Interest Rates are still in the 5.5% range which is very low by historical standards. Rates change daily and generally cannot be locked in till you have a purchase agreement.
- Sellers are more eager to sell if they have overpriced the property in the beginning of Summer. There is less people looking this time of year which makes it a seasonal buyers market. Its a Seasonal Discount and happens every year. Seasonal Discouts do Live!
- I am often asked how much people come of the price of what they are asking? The answer can vary and the average is 3-4% of the last asking price. As a buyer you want to approach this from what the property is worth and go from there. How to Value Your Condo!
- Do condo fees ever go down? They rarely go down as cost to do things tend to rise over time. The biggest cost in condo fees are the insurance premiums. These may hold steady or drop every now and then but something else is going up in cost or the condo reserves will build up in the mean time. Condo reserves are like a savings account.
- Always start out by know what you can afford. This is most easily down with a face to face meeting with a local lender who knows the market and has the back office and experience to get the loan down in a timely and painless fashion. Avoid out of town lenders.