Milestones
By Miles H. Barber

Real estate is not a bad word.

We are going through the adjustment period nearly always followed by a boom and that makes the critics negative when home values turn down.

Yep. You're right! We haven't seen anything like this in our lifetime. Or if you have, you're older than dirt.

Most of us remember our parents talking about the depression and folks out of work and homes being taken back by the bank. But then that was just talk.

Now we are living it.

The housing problems have been exacerbated by the meddling of government regulators who are hell bent on keeping buyers from borrowing the money to buy a house.

Recent legislation requires that borrowers have excellent credit, don't own more than four properties and have a verifiable steady income.

So, if you can fit into this government created qualifying box, this is a great time to buy a home.

There are several reasons for this:

First, it is a buyers market. While foreclosures and short sales are often bargains, these properties are not always a home you might want to live in. One of the issues you must be prepared to deal with is the length of time it will take to secure ownership. Short sales are running from six to nine months before you are assured the property will becomes yours.

Remember, the conventional real estate market is handled by qualified agents, and they can direct you to the property of your choice. If you are prequalified, you can become a homeowner in a matter of weeks.

Second, low interest rates combined with low home prices make a purchase more realistic for the frugal buyer. It was just a few years ago we witnessed mortgage rates at 6.5 to 7.25 percent and considered that reasonable.

Today rates are 30 to 40% less and holding. While rates fluctuate daily, don't panic if you don't get the absolute lowest rate so you can brag to your friends. While you are battling over rates, that perfect home may slip into the hands of another buyer and you find yourself starting the process all over again.

Third, you may ask any banker, mortgage broker or real estate agent and they will tell you that it costs more to build a home today than it does to buy an existing home. If you are a hard core buyer who wants a new home that has never been lived in, you may need to be patient for a couple of years. Of course by that time interest rates will most likely have moved up as will have the price of new and existing homes.

If you are selling your home by choice because you are buying a larger home, moving, being relocated or retiring, set your price at a reasonable amount that can be verified by comparable sales in your neighborhood. If you are expecting to receive 2006 prices in today's market, you are setting yourself up to be passed over.

The real estate bear market will not last forever, nor will rock bottom interest rates.

Finally, if you are a home owner and haven't refinanced in the past 3 to 4 years, you may want to act fast. It is hard to believe that a lot of property owners are saving $500 a month or more through these lower rates. The paper work process may be a painful and worth the price paid.

Miles H. Barber can be reached at Scweekly2011@yahoo.com