Lee Ginsburg

An Open Letter to Potential Home Buyers and Fence Sitters
January 19, 2010 · · 2 Comments

Dear Home Buyer and Fence Sitter,

The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.

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You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don’t do it now you will never know.

You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don’t like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase.     Read more

Lee Ginsburg

It’s Working and Working Well!!!
December 27, 2009 · · 1 Comment

You might ask, what is working and working well.  I am speaking about the $8000 Home Buying Credit.  A recent home buyer brought up the $8000 credit and told me that was the motivating factor for him and his wife purchasing a home.  The termination date creates urgency and action.  Low prices are motivating but not the cause of action. Many think they can time the market.  Good Luck to them.   People in the business think the lowest interest rates in 40 years should be creating urgency.  It certainly makes people think but low rates is all many of these young first time buyers know.  I purchased a home in 1982 at 14% interest and that was considered good.  Today’s 5% and below interest rates are like the “After Christmas Sale”.  But still does not create the urgency since many believe it will last forever.

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The $8000 federal tax credit was extended and now sounds like it will really terminate April 30, 2010.   Now that creates urgency!  OK; the credit created a home sale and that helps stabilize pricing.  Let’s not forget all the mouths a home sale feeds: the realtor, mortgage broker, title people, escrow company, termite inspector, home inspector, city tax coffers, and more.  Now let me show you all the mouths my client fed by spending his credit on: landscaping, painting, double pane windows, window coverings, furniture and more.  Others may remodel a kitchen or bath, carpet, appliances, roof, etc.  My client purchased the home from a flipper who must have put $50,000 into the home.  Add that up, and the $8000 quickly turns into over $100,000 of added income to local people. That feeds lots of mouths.  Being employed in Real Estate and related fields, as Americans and Smart business people we should be ecstatic.  I know I am. I am a believer.       Read more

Adam Chinn

5 Advantages for Move-Up Buyers In This Market
November 13, 2009 · · 3 Comments

moving upFive reasons current home owners should consider upgrading to a new home.

1. Interest rates are at historic lows: Lower interest rates means you can now buy more home then you could have a year or two ago.

2. Prices have come down: Even if your current home may be worth less than the last peak in the market, the next home you are looking for will probably be as well.  The percentage decrease will actually help you get more house when buying up to a larger home.

3. There are still a good amount of homes on the market right now, both new construction and existing, giving you lots of choices and negotiating power.

4. You can move in to your new home faster, as many builders either have completed homes in inventory or they can start working right away due to the production slowdown.

5. You may have outgrown your home, but its probably someone else’s ideal starter home. With the $8,000 tax credit just recently being extended and the new $6,500 tax credit for move up buyers, now is the time to market your home to first-time home buyers.

For more information about the tax credit please visit http://www.federalhousingtaxcredit.com/

This Real Estate Blog is by Adam Chinn