If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter."

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

Negotiating Power

Buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy.

Questions to ask yourself

• How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you.
• How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.
  • Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates

Freedom to choose.

Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.

Quality of life.

Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

 

Finding the right home for you

Help You Get Pre-Qualified
This step will show you how much you can afford.  Shop around for a lender. Establish what monthly payments you will be comfortable with. Today, we have the luxury of choosing from a variety of programs for nearly every situation.

Home Shopping
It helps to know if you are in a Seller's, Buyer's or Balanced market. In an active market, timing is key.

I will use every available method to locate a property that matches your search parameters.  This will include properties listed with my office at Gallagher and Lindsey, Inc., those offered through other real estate companies, as well as unlisted properties.  I will disclose known facts about the property that may help you with your decision-making process. 

When we find the home that meets your criteria, I will help you strategize on writing an offer, and I will be an active advocate for your interests. 

Determine Your Wants and Needs
This is the single most important step. By asking you a series of questions I will establish what you are looking for. My goal is to maximize your time by looking at properties that have the characteristics of the home you want, and are in your stated price range. Throughout the buying process I will maintain your confidentiality and represent your best interests.

As your agent, I'll let you know when suitable properties become available, and advise you on the current situation to help you make an informed decision.