first-time - Blog - REO Pro Network

Finding the Elusive Starter Home

Posted by Michael Collins, CDPE, SFR on February 4, 2015 at 5:38am

Finding that Elusive Starter Home

The past few years have brought several changes in the real estate industry. The housing bust of 2006-08 led many people to either sell or walk away from their home. As the market is continuing to rebound, many investors have scooped up homes at affordable prices and are offering them as rental properties. In addition, other investors have bought homes at discounted prices with the sole intention of selling them at near-full value for a profit. So the question remains; how does a first time homebuyer find an affordable starter home?

Consider a Different Location

Too many times a young person or couple will buy a home in hopes of expanding their family. That leads to choosing a home that is convenient to good schools, nearby shopping and plenty of entertainment activities. However, for people that may be a few years away from starting a family, the location should be different. Buying a home within the city limits, for example, where the owners can be extremely close to work, could be a better fit.

Consider an Older Property

Younger people often get caught up in the dream of buying a new home and settling in with the smell of fresh paint and recently rolled carpet. However, new homes usually have a much higher price than older homes.

While it is true that an older home may either need a bit of repair before purchase or more maintenance compared to a newer home, the savings in purchase price can often offset the repairs and maintenance expense. In addition, young ambitious people may be able to tackle some, or all, of the maintenance and repairs on their own which can save them more money in the long run.

Tone Down Expectations

A starter home is simply a way for most people to get experience with the entire home buying process. This means that potential buyers should look at the home as a learning experience. Most individuals can get by with far fewer amenities than what they are accustomed to. Or, instead of giving up nice amenities, it is possible to buy a much smaller home and save up for a bigger home in the future.

Have Financing in Order

Since there seems to be a bit of competition for starter homes it is wise to have the financing in place before looking for a home. Putting an offer on a home with a firm pre-approval letter from a local mortgage lender will make the whole process smoother and give you a better chance of getting your offer accepted.

It may take some time, but with a little patience and realistic expectations a qualified borrower can find that starter home that will set them on the path to achieving their financial dreams.

↓↓Start your home search today!↓↓

[Janesville Area]

http://www.JanesvilleRealtor.com

[Madison Area]

http://www.MadisonWIForSale.com

You've Got 15 More Days To Use The First-Time Home Buyer Tax Credit

Posted by Ray Milliman on October 1, 2009 at 10:49am

The government's First-Time Home Buyer Tax Credit program expires November 30, 2009 -- a scant 60 days from today (10/1/2009).Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.This is especially true for purchases involving short sales and foreclosures.Congress passed the First-Time Homebuyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:* Buyer may not have owned a "main home" in the past 36 months* The home may not be purchased from a parent, spouse, or child* Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filersThe credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don't forget -- the First-Time Home Buyer Tax Credit is a true tax credit. It's not a deduction.This means that a tax filer who claims the full $8,000 and whose "normal" tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.If you can't close by November 30, 2009, though, you can't claim the credit.The clock is ticking. If you're planning to use the First-Time Home Buyer Tax Credit, the time to act is now.

REO Agent DREAMS & NIGHTMARES!!!

Posted by Rick Fine on May 1, 2009 at 3:30pm

If there's one thing that most of us can agree upon is that as reo agents, we see the best and worst that our great nation has to offer. On any given day, we will be assigned a property whose occupants are in the middle of some of the most heart-wrenching circumstances one can imagine. On that same day, we can also see the worst that society has to offer with obvious loan fraud, property theft and worse. Later that afternoon, we might run into a large and very unhappy dog left behind IN the house....Sometimes the stories we are a part of are hysterical too-A charming ranch-style home in a quiet suburban neighborhood where the living and master bedroom have brand new LEOPARD-SKIN print carpeting or a property formerly occupied by a large male who forgot his Cher wig and evening gown collection.....I love this job because no matter what, everyday is different from the last.I love this job because I get to see ordinary people buy their first homes when only a couple of years ago, they were resigned to being excluded from the great American dream of owning a home.Without question, I have never worked harder but at least for now I have a job where I can earn a good living that doesn't require me to say something like "Welcome to Wal-Mart" or "Would like fries with that?"I've learned more about determining the present value of a property and could move just about anywhere and earn a living as a Realtor because my job has required me to know the fundamentals of marketing and selling a home in just about every neighborhood that there is.That is the best kind of job security.My favorite story so far is helping a family buy their first home in California after coming here from Mexico in 1994, and being able to live close enough to their oldest daughters college so they could also afford for her to attend.The husband is a cement worker and the wife is a housekeeper, neither of which are positions noted for their high incomes. Despite this, in todays market they were able to buy a 4bd/2ba home for 150K in an area that would have cost over 400K in 2006. Was my commission very much? No, it wasn't even close to what I make on some of the nicer homes I am assigned. It was however, my most rewarding sale.What about all of you? Or is everyone else so cynical that it's only about the money?

first-time (3)

Finding the Elusive Starter Home

You've Got 15 More Days To Use The First-Time Home Buyer Tax Credit

REO Agent DREAMS & NIGHTMARES!!!

Note: this page contains paid content.