Action Plan: Make or Save Money in Real Estate

Once upon a time, our home equity was a key component to our personal wealth. During the recession, well, you already know what happened to home values. There's good news: at this point, values have stopped plunging and are somewhat stable. Home values will increase--eventually. According to Moody and Fiserv, it's predicted that home values will decrease about another 5% in early 2011 but will stabilize in late 2011 or early 2012 . The decrease is due to high umemployment and the foreclosure crisis. In addition, the homebuyer tax incentives that propped up real estate for a short time are no more. In the meantime, let's talk about an action plan to "set the stage" for your home's value: 1. First, location, location, location was the old adage. Experts predict it will be again by the end of 2011. 2. For buyers: prices are affordable. With the historical low interest rates (averaging 4.2%), you can get more bang for your buck. This is a good time to buy. 3. For sellers, those historic low rates expand your selling power. Since prices are affordable more buyers are able to purchase your home. If you can't wait to sell your home, this could be just the right mix to unload your house. 4. Speaking of historically low interest rates: refinance your home to a lower rate to save money. "Rates are unlikely to climb higher than 5%", says Amy Crews Cutts, deputy chief economist at Freddie Mac. "If you can shave at least one point off your rate and plan to stay in your home for at least four years, a refi makes sense. On a two-year-old $300,000 loan at 6.5%, refinancing will save you $465 a month and $120,000 in interest" reports CNN Money. 5. If you're upside down on your loan, you may be able to refi. Visit www.making-homeaffordable.gov I can help you determine your home's real estate value in Fresno. Looking to buy? Let me help you find your dream home. Contact me at 559-790-1905 for help. Sincerely, Shantay R. Davies