Now is a great time to buy a home, say the financial gurus at the Wall Street Journal.

The Journal calls it a buyers market and offers these suggestions for first-timers getting their feet wet. While their advice is solid, it's not revolutionary, but some potential customers might find it reassuring.

Remember this is a place to live not a stock market investment, they say. Lenders want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn't count on stretching further because lenders won't approve their loans.

• Cash is king.  Having enough money in the bank to pay closing costs that are typically an additional 2 percent to 3 percent of the price of the home is necessary.

• Location, Location, Location.  As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.

• Compare.   Besides just looking at the comps(houses that sold), buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.

• Think long haul.  It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.

So this is how the attached market graphs work.  Let's say that your pre-approved purchase price is in the $250,000 to $350,000 range and you would like to start looking for a single family home.  There are currently 81 home selections in that range in Elk Grove Village  OR

You are looking for a townhouse, coach home, or condo in the $200,000 to $250,000 price range and your current selections are 32 shown in the lower graph for Multi-family homes.

Area Market Survey CriteriaLyn Sims at RE/MAX Suburban (847)230-7324                                                       5/21/2008

Active Listings

List Price Range # Listings Avg. Days on Mkt $200,000 - $249,999 7 197 $250,000 - $299,999 40 174 $300,000 - $349,999 41 185 $350,000 - $399,999 33 160 $400,000 - $449,999 10 110 $450,000 - $499,999 6 196 $500,000 - $549,999 3 141 $550,000 - $599,999 3 570 $600,000 - $699,999 3 206 $700,000 - $799,999 3 255 $800,000 - $899,999 1 30

Active Listings Summary

# Units Avg. MT Median List Price Avg. List Price Max. List Price Min. List Price Total Volume 150 180 $339,700 $360,778 $889,000 $204,900

Area Market Survey CriteriaLyn Sims at RE/MAX Suburban (847)230-7324                                               5/21/2008

Active Listings for Elk Grove Village, IL      Multi-Family Selections

List Price Range # Listings Avg. Days on Mkt Less than $149,999 31 244 $150,000 - $199,999 56 198 $200,000 - $249,999 32 96 $250,000 - $299,999 35 145 $300,000 - $349,999 5 175

Active Listings Summary

# Units Avg. MT Median List Price Avg. List Price Max. List Price Min. List Price Total Volume 159 174 $192,500 $202,439 $344,900 $100,000

Like the article said, this is a great time to start looking for a new home, purchase a larger home, or retire to something more manageable!  Interest rates are expected to be lowered soon which makes it even more affordable.

My homesearch website makes it easy to get started finding your new home!  My site offers purchasing advice, selling advice, mortgage calculators, mortgage advice and dictionary, home inspection advice, school district info, METRA info, community & town info too!  No need to jump from site to site - all the homes listed in the MLS for sale are in this site! 

Lyn Sims at RE/MAX Suburban (847)230-7324          www.LynSims.net

Northwest Suburban Chicago IL homes for sale in Elk Grove Village, Schaumburg, Hoffman Estates, Bartlett, Roselle, Medinah, Itasca, Carol Stream, Bloomingdale, Palatine, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles.

Lyn's Email:  LynSims@remax.net