Tips for First-Time Homebuyers

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be. Here are six common mistakes to avoid.

1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.

2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.

5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.

Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Featured Home: Peaceful, quiet country living near town

Unique custom home with cedar siding milled from the property. Huge 1500 sq. ft. shop/garage with10x14 door, plumbed for bathroom. Separate heated 10x12 hobby/office building.

This light, cheerful home has a great room floorplan and living room with soaring windows. Kitchen has lovely oak cabinets (some glass front), pull out shelves, newer glass top stove, and microwave. Amenities include heat pump, A/C, new well pump, and new 81 gallon holding tank. Room for horses. Lots of trees.



MLS#: 28073015
Bedrooms: 3
Baths: 1.75
Square Feet:
Built in 1993
Price: $387,500
more info

For more information or a tour, contact:
Barb Westall
Phone: 360-701-0977
Email: barb@prudentialolympiarealtors.com

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506

Washington State Home Sales Down

Housing sales cropped across Washington State during the first quarter of 2008, according to a newly released report from the Washington Center for Real Estate Research at Washington State University.

Thurston County saw a decline in existing home sales of 22.8 percent over one year ago, and a 54.7 percent drop in building permits.

Statewide, existing home sales fell 29.7 percent, and building permits were down 46.7 percent.

Thurston County homes fared better in holding their value, with a median resale price of $257,700 (up 1.1 percent from 2007) compared to the statewide median of $293,600 (down 2.4 percent from 2007).

Now Is A Great Time To Buy A Home

If you’re ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 7% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:

· One average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.

· The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.

· Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Featured Home: Craftsman cutie nearing completion

Charming craftsman style home in sought after Tumwater school district. Beautiful details inside and out. Exterior features shake & stone accents and front porch.

Great room with gas fireplace, open kitchen with lots of cabinets. 1/2 bath on main floor, upper level bonus area, 3 bedrooms, 5 piece master bath.

Stylish decor with rich, warm colors, painted trim, tile and more.

MLS#: 27213991
Bedrooms: 3
Baths: 2.5
Square Feet: 2012
Built in 2008
Price: $316,950

For more information or a tour, contact:
Kim Rucker
Phone: 360-481-1863
Email: kim@orcalink.com
kimberlyrucker.realtor.com

or

Roberta Rudnick
Phone: 360-791-0688
Email: robertae@orcalink.com
www.olympiahomesearch.com

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506

Be Afraid...

Or not. But Lawrence Yun, the chief economist with the National Association of Realtors, wasn't sounding upbeat when he told the organization's national convention "We're in a time of fear."

What's so scary? This is the first year since the Great Depression to register a nationwide decline in median home prices, Yun says according to a Seattle Times story, and he expects the market to be flat throughout 2008.

Of course, the national average is just that -- an average. Local markets may be doing worse...or better. Here in Olympia, residential sales have slowed somewhat, but we're certainly not knocking on Depression's door. And a number of new projects promise to inject new life into downtown Olympia, including a new Washington State Employees Credit Union headquarters, a new City Hall, and the port development including the new Hands On Children’s Museum.

Inside the Escrow Process

One of the stages of the home buying process is escrow. This process begins when the offer is accepted and ends once the financing is approved and the buyer and seller have fulfilled their requirements. So how does it work?

A neutral third party agent of the principals — buyer, seller, lender and borrower — is designated the escrow holder. This agent assists with the transfer of ownership by ensuring that the terms of the transaction are completed including safeguarding all funds (including the buyer’s deposit) and documents.

The escrow holder keeps track of obligations of the seller or buyer. For example, if the seller is required to supply a termite inspection, the escrow holder will make sure it is fulfilled before any funds are transferred to the seller. Findings in the termite inspection report must be corrected on or before the close of escrow.

In addition, the escrow holder receives from the title company a complete ownership history of the property and any liens on record in the preliminary title report. Any discrepancies that affect the condition of the title, such as condo liens, judgments, etc., against the buyer and seller, must be addressed prior to close of escrow.

The escrow process can last any number of days depending on what is agreed upon between the buyer and the seller. To assure a timely closing, it is important that each party provide the escrow holder requested information as soon as possible. For example, a lender will not fund a new home without a homeowner’s insurance policy. Without the lender’s verification that there is insurance, the escrow process may be delayed. An unsecured source of funding, such as a personal check can also delay the process, because it takes longer for those types of funds to clear.

The escrow process is just one step towards fulfilling the dream of homeownership. Your real estate professional can provide more detail on the escrow process, as well as answer other questions you may have about home buying and selling.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Cheering Gloomy Buyers

Feeling iffy about spending money on a new home in today's market? Some Tacoma firms are looking to lift you out of your spending funk.

The News Tribune reports that the Master Builders Association of Pierce County and the Washington Realtors are rolling out ad campaigns touting the upside of buying in the Tacoma area. And buying now, not later.

Pierce County's median home price in August climbed 4.4 percent compared with the same month in 2006, though the county had 2,702 new-construction houses and condos listed for sale compared with 1,947 the same month in 2006, according to the Northwest Multiple Listing Service.

Read the story.

Featured Home: Charming, Private Mini-Farm

Absolutely charming mini farm on just over 8 acres with 2 double car garages. Home is loaded with old world charm with beautiful wood floors just refinished, new bathroom, great fireplace, office area, upper floor is large master, lots of nooks and built ins. Full basement is unfinished.

New roof and some new windows. Beautiful property with fruit trees, pasture area, very private- home sits way back from Johnson Point Road.

MLS#: 27151325
Bedrooms: 2
Baths: 1.5
Square Feet: 1428
Built in 1926
Price: $395,000



For more information or a tour, contact:
Roberta Rudnick
Phone: 360-791-0688
Email: robertae@orcalink.com
www.olympiahomesearch.com

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506

Featured Home: Stunning Panoramic Views

3100+ square-foot rambler with daylight basement, panoramic views of the Nisqually Delta, Mt Rainier, Puget Sound, and Narrows Bridge.

This 3 bedroom, 3 bath home boasts a floor design that's open, inviting, and ideal for entertaining. Gourmet kitchen with island, breakfast nook, pantry, and lots of cabinets.

Large living room with gas fireplace, family room, A/C, central vacuum, security and irrigation system, interior/exterior surround sound, extensive wrap-around deck, patio, professionally landscaped front & back yards, den/office.

Minutes to I-5 & downtown Olympia.

Open House Sunday July 29, 10am-4pm
Address: 9710 Amanda Dr NE, Olympia, WA
Directions: I-5 Exit 111, East on Martin Way. Turn L. L on Meridian, R on 4th Ave NE, R on Mett St NE, L on Amanda Drive NE.

MLS#: 27043075
Bedrooms: 3
Baths: 3
Square Feet: 3111
Built in 1994
Price: $524,900

Virtual Tour : Printable Flyer

For more information or a tour, contact:
El Sanchez
Phone: 360-791-2991
Email: olympicrealtor@comcast.net
www.olympiabesthomes.com

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506