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10 reasons to buy a home

10 reasons to buy a home
This article provides a good perspective on home ownership. Dont look back saying " I wish I would have taken advantage of the market in 2011.".

Know someone getting married?

It is that time of year when we start to get invitations to showers before the summer weddings. I have a great program available for brides and grooms to help make their dream of homeownership reality! Why settle for gravy boats and just married tees? When you could have a new house instead.

Buffett Says Buying Home Was Third-Best Investment He Made

Article used from Bloomberg Businessweek Feb.28,2011

I found this article inspiring as buying a home provides so much more than just the roof over your head. Think of the value of the memories that are made in that home.

By Kathleen M. Howley

(Updates with closing share price in final paragraph.)

Feb. 28 (Bloomberg) -- Billionaire Warren Buffett said buying a home was the third-best investment he ever made, after the rings he bought for his first wife, Susan Thompson, and, after her death, his second wife, Astrid Menks.

“For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come,” Buffett wrote to shareholders of his Berkshire Hathaway Inc., in a letter released Feb. 26.

Buffett, the world’s third-richest man, still lives in the house he bought in Omaha, Nebraska, more than five decades ago. He said home ownership makes sense for most people, especially after a slide in prices and record-low interest rates.

The U.S. home ownership rate has fallen to the lowest level in a decade amid record foreclosures and a plunge in property values after a five-year boom. The S&P/Case-Shiller Index of prices in 20 cities is down 31 percent from its July 2006 peak.

“A housing recovery will probably begin within a year or so,” Buffett, 80, wrote in the letter. “In any event, it is certain to occur at some point.”

Berkshire, based in Omaha, owns manufactured housing maker Clayton Homes Inc. of Maryville, Tennessee. It also owns Minneapolis-based real estate company HomeServices of America Inc., the second-largest brokerage in the U.S. after Parsippany, New Jersey-based NRT LLC.

Clayton Model

Berkshire’s experience in financing the manufactured housing it builds and sells through Clayton Homes should serve as a model for Washington policy makers planning a reform of the nation’s housing system, Buffett said. The regulatory changes target Freddie Mac and Fannie Mae, the mortgage-finance companies under U.S. conservatorship.

“A house can be a nightmare if the buyer’s eyes are bigger than his wallet and if a lender -- often protected by a government guarantee -- facilitates his fantasy,” Buffett wrote. “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.”

Buffett’s annual letters to shareholders have won him the nickname “the Oracle of Omaha,” because he muses about topics such as how investing is like baseball and how Wall Street bankers are like Pied Pipers.

Buffett built Berkshire, once a failing textile mill, into a $215.6 billion company through investing in firms he says have superior management and the ability to create long-term value. Units of the company makes candy, produce power and sell flight time on private jets.

The shares were worth about $15 each when he took control of the company in 1965. The Class A stock rose 2.9 percent to $131,300 at 4:15 p.m. in composite trading on the New York Stock Exchange, the highest closing price since October 2008. It has gained 6.9 percent in the past 12 months.

--Editors: Kara Wetzel, Dan Kraut

New Listing!

For Sale: 3BR/2+1BA Single Family House in Belle Plaine, MN, $175,000

Great opportunity for a great move in ready home! PLUS it qualifies for the USDA Zero down financing option!

Still sitting on the fence?

Get in while the gettings good!

My thoughts on this article....
Get off the fence. Whether you are thinking of buying or selling, NOW is the time to make it happen. Things are not going to stay this way forever. Rates are great and Prices are currently at clearance prices.
Are you ready to buy or sell?http://www.kristinejones.com/

The Cost of Waiting for Prices to Fall

The Cost of Waiting for Prices to Fall

This article is so true! If you are sitting on the fence and thinking of buying a home in the Twin Cities, DONT wait too long. There truly is a cost to waiting.

This weeks feature listing

kristinejones.edinarealty.com/4007223

Each Monday I will be featuring a current listing. This week I am featuring this "Like New" home in Savage. It is a great 2 story at an incredible price. A walk out lower level is an added bonus!

Who do you know that may like this home?

Is it the right time to buy?

http://kcmblog.com/2011/01/31/7109/

There is more to buying a home then making a mortgage payment. What are your thoughts?

It is a great time to Buy instead of Rent in the Twin Cities

https://www.edinaplace.com/Media/Articles/rentvsbuy50Cities2011Q1.pdf


This is a great report to show the value in buying instead of renting in the Twin Cities.

Daily Developments: Monster.com: Mpls. Among Hottest Job Markets

Daily Developments: Monster.com: Mpls. Among Hottest Job Markets

3rd question...

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason whether you decide to purchase or not.

I truly belive as well that this is the most important question to answer. Owning a home is not all financial. We all have different form of "capital" and not only is financial capital involved in owning a home. But, think of the emotional and relationship capital that can be attained by having a place to call home. Your every OWN home.

2nd Question to ask...

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010.  They ask 100+ housing industry experts to project housing prices through 2015. The most current survey shows that the experts are predicting prices to soften until 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2015.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: You want to buy low and sell high. We may be at the low point regarding the COST of a home. But, this decision should not only be a financial one.

Thanks again to my KCM friends for this great information. Question #3 coming next.

It is a great time to be a buyer in the Twin Cities.

1st of 3 reasons you should consider about buyer a home

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And most of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought five years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

There are three questions you should ask before purchasing in today’s market:

1. Why should I buy if house prices are still depreciating?

We believe that in most parts of the country prices will in fact soften in 2011. Price is the major concern for anyone selling a home. When you are buying, COST should be your primary concern however. Your monthly payment (cost) is definitely impacted by the price of the home you purchase. The other major component is the interest rate. Waiting for prices to bottom out while rates are increasing can wind up costing you more over the life of the mortgage (see chart here).

Over the last seven weeks, rates have increased over 1/2 a point going from 4.17 to 4.86. Looking at the attached chart shows this increase. Waiting for prices to bottom out seems to make perfect sense. Yet, at a time when rates are increasing, it might NOT make sense. Make sure you have a mortgage professional help you with this math before making a decision.

In an article last week CNN Money reported:

“You can kiss those record lows goodbye,” said Greg McBride, chief economist for Bankrate.com.

Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau.

“I don’t think we’re going back to a 50-year low anytime soon without an economic collapse,” he said. “Rates will probably never revisit those levels.”

Thanks to KMC for this great information.

I too believe that now is a great time to be a home buyer. Will we look back at these years and ask why we didnt buy when we had the opportunity?

What are you thoughts?

Buying a house as a home.

"This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value." From KMC Crew.

I too believe that the desire for homeownership should be the main reason to own a home. The American dream is to have a place to call home. We had gotten away from having a house to be a home and had used it as a financial tool.

What are your thoughts on the reason's to own a home?

Top 3 Tips to Avoid Foreclosure if You’re Struggling to Pay Mortgage

As you’re heading out of the holiday season, you may have found some extra time to research how you can avoid foreclosure. I applaud your taking the first and most important step in improving your situation—seeking help!

Here are the top three things you should focus on when exploring foreclosure alternatives:

1.      Create a Budget: When seeking an arrangement with your lender you must prove the monthly income shortfall that keeps you from making your mortgage payments. Create an itemized list detailing your monthly income and expenses. Pull together bank statements and check stubs for the last three months.

2.      Know your Options: It’s important to know you have several options to consider so you take advantage of the solution that is best for your specific situation. Find out more about your options on my website here: www.kristinecanhelp.com

3.      Contact an Experienced Agent: A licensed agent who has undergone specialized training is vital to successfully navigating foreclosure avoidance. I’m extensively trained to provide you with the information you’ll need to execute a strategy tailored to your situation.

Most major lenders have granted a two-week foreclosure holiday from December 20-31. The sooner you call me, the more options you’ll have to prevent foreclosure and get back on track for a prosperous 2011!

Making Sense of Mortgage Modification

There has been much in the news in the past few weeks about mortgage modifications for homeowners who are having trouble making their house payments. Many are having difficulty qualifying for modifications, and so far the Home Affordable Modification Program (HAMP) has had disappointing results.

I have helped people to avoid having to move out of their home by going through a loan modification.

As a CDPE, I feel it’s my duty to help anyone I can during these hard times. If you would like to know more about mortgage modifications and whether or not you might qualify, please feel free to contact me. Kristine Jones@ kristinejones@edinarealty.com

The Washington Post recently reported that "troubled homeowners who receive housing counseling are 60% more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves." I can help homeowners facilitate the process of loan modification and discuss other alternatives to foreclosure if a modification is not an option.

Honesty and Ethics

It is very unfortunate that so many Realtors lack these skills and therefore give all Realtors a bad rap. If I say it too much, forgive me, but I love what I do and have a trues passion for Real Estate. I get a high when I am able to help someone through a tough situation such as a short sale in the same way I am so excited to hand a first time buyer the keys to their very first home. Know that there are truly Realtors out there that have your back. Make sure you feel comfortable and your gut feels right with who you are working with.

Short Sales

What in the world is a short sale?
Do you keep hearing about short sales and foreclosure and wonder what in the world people are talking about. Does it sound like a foreigh language? Let me shed some light on what a short sale is.
The term "short sale" referrs to a real estate transaction in which the seller/owner is selling the property and owes more on it than it is worth. As an example, a couple purchased a home a few years ago for $200K and now one of them has lost their job and they can no longer afford the property and need to sell. After doing a market analysis on the property is appears the property is only worth $150K. This couple does not have $50K plus expenses to bring to the closing to clear the debt, so we ask the bank to allow the seller to sell the home "short" for the $150K amount. The seller is still the owner but needs the bank to agree before they can sell.
It is usually not a very "short" process, but it can help sellers maintain dignity in the light of the situation.
I am a CDPE (Certified Distressed Property Expert) who is trained to handle short sales.