Forbes ~ Portland Oregon is one of the U.S. cities where renters should buy now!

By Francesca Levy of Forbes ~
The gap between what you'd spend on rent and paying a mortgage is shrinking in these metro areas.

The U.S. government has pushed hard to make homeowners out of the one-third of Americans who still rent their homes. It introduced and later extended a tax credit for first-time homebuyers, and has kept federal interest rates at their lowest levels since the 1940s.

Market conditions are such that now is a particularly good time for some renters to take the hint.
In Portland, Ore., San Francisco, Minneapolis and Washington, D.C., the premium to buy - the spread between what you'd spend on renting and what you'd pay each month for a mortgage - is far narrower now than its 15-year average. And economists predict a significant home-price hike in five years. So upgrading will cost much less than usual, and homebuyers are likely to get a good return on their investment.

Note that buying isn't necessarily cheaper than renting in these metro areas. In fact, it often remains a more expensive proposition. But for those determined to own, that investment is a better one now than it normally is.

Will I have to pay for closing costs and prepaid items out of pocket?

Not necessarily. This can be handled one of two ways; Either the closing costs and pre-paids can be paid out of pocket or they can be included in the sale price and be specified as closing costs to be paid by the seller. It is not possible to finance these items separately from the home purchase. However, the seller is allowed to contribute toward your closing costs. When the seller pays the buyers closing costs and prepaids this is referred to as seller paid concessions. Some loan programs limit the amount the seller is allowed to pay. Your mortgage advisor will be able to give you the specifics that apply to your situation.

Will I have to choose all of the Key people involved in the transaction?

It is critical to have top key professionals. Finding a good real estate agent is an important staring point. Your real estate broker can be a valuable resource when it comes to selecting your mortgage advisor and your title and escrow officer. The working relationship your real estate broker has with them will help ensure you are well served. If they do not do a top job for you, their relationship and future business are at risk.

Your real estate agent can also recommend professionals they have worked with who consistently provide a high-level of service for all aspects of the transaction. From inspectors and repair men to cleaning and landscape services.

Having top key professionals handling all aspects of a home sale or purchase can be the difference between a successful move and a disastrous one.

WHAT IS YOUR HOME REALLY WORTH RIGHT NOW? Is Zillow right?

What Is Your Home Really Worth?

The most commonly asked question from clients is "What is my home worth right now?". There are three basic ways to estimate the value of a home. They are: 1) value estimation web site; 2) comparative market analysis and 3) professional appraisal.

There are a number of web sites which offer value estimates of your home based on data you input in their web form. The value these sites offer is an estimate of your home's worth based on their system which may use a proprietary formula. If you read carefully, you are also advised to do the following: 1) obtain a comparative market analysis (CMA) from a licensed Real Estate agent and 2) have a professional appraise your home.

Since these on-line valuations use a proprietary formula which is not shared with the public, the only way to verify the true value of a home is to have professionals with "boots on the ground" visit the property and generate a value based on first hand knowledge.

The hard reality is a home is worth what the market will bear at the time it is sold. The most reliable estimate comes from the sale prices of the SOLD homes in your neighborhood for the past three months which are similar in size, condition, etc. This Comparative Market Analysis is an average of those values. Because home prices may not have reached the bottom yet, the value may be a percentage point or two below that average. If you've done quite a bit of updating and remodeling, it might be a few percentage points higher.

5 Questions to Consider Before Purchasing a Home!

RISMEDIA, December 15, 2009-(MCT)-Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.

Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn't overly dramatic, the dip is likely to get people wondering whether it's time to sign on the dotted line.

The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?

A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?

A: It's hard to tell, but don't count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com's panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone's guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?

A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?

A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you're refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a "strike" interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?

A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now-low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there's growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason?  Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Selling Is So Last Century...

Networking is networking, no matter how the connection is made.  Social media has created a new method to connect with people, however the quality of communication is what counts.  Face-to-face or a Tweet, the message must engage the person we are focusing on.

We build relationships by learning about our clients. Building a relationship is the first goal of our social media connection.

Many of our clients are Boomers and Gen Xers. The idealistic Boomers are known as the "me" generation. They want you to listen to what they are saying-stop talking long enough to hear! They expect us to understand their focus on "what's in it for me?" They appreciate that we are rooted in the community, have civic interests and are involved in community activities. They don't want a hard sell. They expect us to be the expert.  They value in-depth knowledge of the area, the financial climate, the real estate market, and how it all relates to their expectations. We are the expert.

Gen Xers are skeptical and don't trust the establishment. They want to surround themselves with family and friends. We create a connection and care for them. They want quality not brand name. Our data and expertise, not sizzle, demonstrate our professional qualifications and earn their loyalty.

Our job is not to sell. It is to understand our clients and know their desires, lifestyles and financial circumstances that affect their real estate decisions. We turn information into focused knowledge tailored for them. The move from salesperson to counselor reflects the shift from "finding" real property to "evaluating" the property. The desire to buy comes from knowing the benefits of the purchase. In addition to location, location, location, we advise our clients on financing options, investment strategies, taxation issues and much more. We are experts in the subject of real estate. In representing our clients we understand valuation, negotiation, and contract creation. And finally our skill  in working with other agents and affiliated businesses closes the circle.

Will I save money purchasing a home from a For Sale By Owner?

There may be times when a FSBO is sold at a discount, but to assume that is always the case would not make sense. The seller has chosen not to hire real estate representation specifically in order to save themselves money, not the buyer

To forego professional representation at no cost benefit does not make sense. Investors who buy and sell homes for a living secure the services of an experienced broker. They know that purchasing a home with out an expert’s guidance is a gamble. They rely on their realtor to verify details such as: Sales history, length of time on market, price reductions, permit histories, DEQ history, city sewer connections, correct disclosures and accuracy of all necessary documentation. Knowing the areas in which you are not an expert is as important in life as knowing those in which you are. Unless you are an experienced real estate professional, it is risky to assume that you can rely solely on your own knowledge and experience to guide you through such a costly and complicated transaction.