1.  Spiraling Price Drops Are Ending on a National Level.

Prices in the entry-level market have pretty much bottomed out (in most US cities), which should prevent extreme price drop wars on housing this year. Those 50% price declines from 2009 should become a thing of the past

2.  Home Prices Are Stabilizing in Indiana.

According to national studies, the housing appreciation rates in the Indianapolis area should increase by 0.35% this year. That’s not a mammoth number, but considering that the average increase for all 50 US states is -3.36%, we’re above the average.

3. Take Advantage of the Government’s Tax Credit Program.

The $8,000 first-time home buyer tax credit program introduced in 2009 was extended and expanded. First-time homebuyers who sign a binding contract to buy a home by April 30, 2010, and close on it by June 30, 2010, will qualify. The program’s maximum income limits have increased from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

For those who have owned their homes for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit has been added. Also, homeowners who are behind in their real estate loans are eligible for a loan-modification program with their current mortgage company through the Making Home Affordable Program.

If you’re seriously considering buying a home this year, take advantage of these tax credits, because they expire on June 30, 2010, and most likely won’t be renewed again.

4.  New Homebuyers Can Find Down Payment Assistance.

There are several down payment assistance programs for first-time homebuyers at the federal and local levels. You can find them by searching the internet for “down payment assistance programs.”

5.  Forecast is Higher Mortgage Rates Later in the Year.

A 30-year fixed-rate conventional mortgage is between 4.75% to 5.00% for qualified buyers right now.  However, many mortgage specialists are predicting this will increase later this year. If you have a loan today, you may want to lock in the rate.

6.  No Need to Wait Out a Long Recovery.

It’s very tempting to compare housing prices today to what they were before the bubble burst. If you’ve been in the same home for several years, you may still enjoy a nice profit on the sale of your home in 2010. For example, let’s say your house was appraised for $300,000 a few years ago, and now (after doing comparables) your agent recommends listing it for $225,000. At first this may look like a loss to you, but considering what you purchased your home for 10 years ago (let’s say in our example $175,000), you’re actually going to enjoy a $50,000 profit.

7. Sellers, Price for Today’s Market.

Most homes in the area can go under contract in 60 days or less if they are listed right. This doesn’t mean you have to “give away” your home. Listings that generate traffic are those whose owners have adjusted their expectations based on comparably priced homes. Be sure to work with your agent in pricing to present conditions, not to a “fantasy” market that doesn’t exist today.

8. Rent-to-Own is an Option.

Rent-to-own allows buyers to “try out” a home for a designated period while paying a higher-than-market rent to buy down an eventual down-payment. This helps renters invest in a home while they repair credit, and it also helps sellers generate some revenue on an empty house. Make sure your Realtor drafts a specific contract that spells out all the options.

9. Selling? Great Time for Home Improvements.

Now may be the best time to fix up your home for a potential sale. Low financing, reduced construction materials and lower contractor costs make home improvement more affordable. Repairs that yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets.

10. When You Close, Ensure the Contract is Complete.

During this real estate market it’s very important to avoid any contract problems. Make sure you get a good agent who can help you avoid problems, and ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale. In Indianapolis, verbal conversations are not enforceable. If you intend to keep the attached window curtains or the water softener, now is the time to include these in the contract. Changes can be made later, but often with a monetary concession.

Your Opinion Counts!

Take our poll and let us know when you think is the best time or season to purchase real estate property. You can also look at the results and see how everyone else is feeling right now.

I am in the process of building a new website that will be completed in December 2009. It will be more interactive and offer great tips on buying and selling real estate in the Indianapolis metropolitan area. I’m also adding some unique tools to help my customers. You’ll see them soon, but they include a marketing tool box, advice/tips on staging your home and great insight on relocating to the Indianapolis area.

As part of this interactive website, I’ll also open the door to comments and forums on any subject that pertains to real estate. It’s a great way to share ideas and insights on the housing marketing. You can start today, if you’d like. Just leave a comment and I’ll post it to the group as soon as possible for feedback.

Some things will remain the same from my old website. I’ll still have mortgage information, a showcase of my featured homes and a search to assist you in finding that perfect house right here in Indiana.

So enjoy the Thanksgiving holiday (if you live in the US) and come back again in December to see my new website. Or, don’t wait that long. Leave a comment or email me today.