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TAKE ADVANTAGE OF THE FINANCIAL BENEFITS OF NEW CONSTRUCTION DURING NEW HOMES MONTH

As the National Association of Home Builders (NAHB) draws attention to the vast benefits of new home construction during April’s New Homes Month celebration, one thing is clear: while the unsustainably hot housing market of the past few years has slowed down to “real time,” it remains a great time to buy a new home. And with the breakthrough technology available to home builders, new homes offer safety, amenities, energy efficiency and lifestyle like never before.

“Buying a new home remains an excellent investment,” said Brian Catalde, NAHB president and a builder from Playa del Rey, Calif. “Compared with investing in stocks and bonds, buying a new home still has the greatest financial impact due to its leveraging power. And in the current slower-paced market, there’s more room for negotiation. Coupled with today’s historically low mortgage rates and the great advances made in new home construction, buying a new home today just makes good sense.”

Following the boom levels of the previous two years, 2006 was a year of decline for many housing markets across the country. According to NAHB’s Regional Housing Starts Forecast, 2007 is expected to be a year of transition, with growth emerging in many areas.

“Because the boom and correction cycle has largely been driven by national rather than local factors, most regions have experienced some degree of over-heating and correction,” said NAHB Chief Economist David Seiders. “We expect 2007 to be a time of transition in most regions, with housing starts bottoming out during the year before transitioning to gradual recovery paths.”

Buying a new home makes even more sense when you take into account uncertainty about the market, which has many potential buyers waiting to see if housing prices fall. But if consumers try to wait and time the bottom of the market, they are likely to lose out, and could end up literally waiting for years before opportunity knocks again.

What is certain is the value of investing in new housing. First, there’s the leveraging power of owning a home. And unlike any profits from other financial assets, capital gains from owning a house are virtually certain to be tax-free (up to $500,000 for jointly-filing couples, up to $250,000 for single filers). Then there is the functional value of owning a home, whether in a flat or surging market. You can’t live in a bank account or a stock portfolio. But your house will both shelter you and your family, and help build you a nest egg that grows and grows over time.

In addition to the financial benefits of owning a home, new home construction bring a level of safety, efficiency and lifestyle unseen in years past. Technological advances mean that new homes are safer, because new homes take advantage of breakthroughs in building science such as new fire-resistant construction materials, tempered glass and hard-wired and interconnected smoke alarms. Builders nationwide have been embracing new green building techniques and materials, such as high-tech insulation and energy efficient appliances, and incorporating them in new construction. This results in new homes being more resource-efficient while saving homeowners money. And with the abundance and variety of features that new homes offer, home owners can create the home of their dreams—down to the knobs on their kitchen cabinets.

For more information on New Homes Month and taking advantage of the financial benefits of new home construction, visit www.NAHB.org/forconsumers.

BUYERS HAVE OPPORTUNITY IN TODAY’S HOUSING MARKET

Omaha – Attributes of the current housing market such as low mortgage rates, a large selection of available product and generous builder incentives bode exceptionally well for potential buyers who find themselves favorably positioned when it comes to making a deal on a new home.

“Today’s home buyers have opportunities they haven’t seen in years,” said Rocky Goodwin, president of the Metro Omaha Builders Association. “Gone are the days when dozens of bidders stood in line for a chance to purchase a home at whatever terms the seller dictated. Housing consumers should take advantage now of the low rates, competitive prices and great buying opportunities in today’s market.”

Goodwin noted a variety of reasons that buyers are holding all the cards, including:

• Prices have leveled off, and even declined in some areas, making homes more affordable for first-time and repeat buyers.
• Houses are staying on the market longer, creating a wider variety of choice for home shoppers.
• Mortgage interest rates remain in a very favorable range, near historic lows.
• Many builders are offering discounted financing packages and value-added incentives such as a major upgrade to close the deal.
• There is a wide range of financing options available for consumers in all price ranges.
• The economy is solid, job creation is strong, and demographic trends portend strong housing demand in years to come – all of which bode well for long-term house price appreciation.

“To some extent, it’s true to say that it is always a good time to buy a home, given the equity-building opportunities and tax savings that homeownership affords and the fact that it’s a more solid investment than almost anything else you can think of,” said Goodwin.

“But today’s market is special, in that it’s a much more relaxed atmosphere for buyers than it was when sales were booming. That means you can find the home you want and carefully consider all its attributes before deciding to go ahead with your purchase. This compares to the frenzied atmosphere that prevailed in many housing markets not too long ago, when buyers had to make a snap decision or risk losing their chance of having a winning bid.”

Goodwin cautioned those who may be sitting on the fence waiting for the market to head lower. “Those who try to time the market just right in hopes of buying at the very lowest point are likely to lose out,” he said. “First, it’s nearly impossible to predict exactly when the slowing market will start to speed back up again, and in the meantime you’re liable to lose the home of your dreams to another buyer. And second, if mortgage rates head higher while you’re waiting, or some other aspect of your financing changes, you could easily wind up spending more than if you bought now.”

If you want to have the most opportunities in your home purchase, “Now is the best possible time to go for it,” Goodwin concluded. “Seldom has there been a more advantageous environment for home shoppers.”

LOW RATES, COMPETITIVE PRICES AWAIT TODAY’S HOME BUYERS

Omaha – Today’s housing market is a different animal completely from the one we saw just a few years back. But with change often comes opportunity, and there’s no exception in this case either. Market economics are creating an excellent environment in which to buy a home.

Consider the following advantages for home shoppers today:

Prices have leveled off. In some areas, prices have even declined. Regions that were burning hot in the past have begun to cool and level off, giving the buyer a unique opportunity to find affordable housing that may have been out of reach before. Sellers in this environment—by necessity—are much more prepared to negotiate. While there are no guarantees you’ll get everything you want—bargains are all about give and take—you can be assured that your needs will be heard. Most likely, you can get the house of your dreams and still have a budget leftover for decorating.

Houses are staying on the market longer, meaning more choices for you. Previously, home shoppers had to make an offer immediately if they wanted to get their top choice. Today, there are a wide variety of homes for sale, with a better chance of getting the home that fits your needs, without the super-stiff competition from lots of other buyers as was seen in years past.

Mortgage rates are historically low. Interest rates are still affordable, remaining near 6.5 percent. Looking back, 1984 saw fixed rate mortgage interests as high as 14.75 percent. Even just six years ago, interest rates ranged from 8 to 8.5 percent. A half-percent rate difference on a $200,000 mortgage, from 6.5 percent to 7 percent, translates into an increase in monthly mortgage payments of $66.00. Over a thirty-year mortgage, that’s an extra $23,926! When rates are this attractive, it just doesn’t make sense to try and time the market.

Many builders are offering incentives. Discounted financing packages, value-added incentives, and even first-year mortgage payments are some of the incentives builders are offering, allowing families to get in on the host of benefits that homeownership offers. Home equity, the value of a home minus any mortgage debt, accounts for more than half of the total net wealth of the typical family, making homeownership the primary source of a household's net worth. This makes owning a home the fundamental first step toward accumulating personal wealth. And don’t forget the great tax benefits as well!

Homeownership is always attractive. Besides being a stepping stone to a future of financial security, homeownership provides a sense of community and personal satisfaction and inspires civic responsibility. Homeowners are more likely to vote and get involved in local issues. Studies show they are also more content with their lives, owing to the spillover benefits from an increased social circle, a stronger sense of belonging and increased activity in community groups.

Homeownership is the cornerstone of the American way of life and the fulfillment of the American Dream. Today’s market allows that dream to be possible for you as well.

Selling Your Current Home In Today’s Market… GET YOUR BEST PRICE FASTER BY SELLING SMART

With today’s changing housing market, the opportunities to buy a home are tremendous. Interest rates are low, prices are competitive, and many builders and sellers are offering fantastic incentives and financing options. But if you’re like two-thirds of people in the new home buying market today, you’ve got a home to sell first. On any given Sunday afternoon, hosts of lookers are visiting open houses across the country. How can you prepare for an open house? It’s a question on many sellers’ minds.

Follow these tips and you could have happy new homeowners signing on your dotted line before you know it!

“The home should be in the best condition you can make it,” says Omaha-area realtor __________, “The price however, will determine how fast it can sell.”

An important thing to keep in mind about setting a price is to remain realistic. Some sellers are concerned that the value of their houses have declined and want to wait until prices have gone back again. Think about it this way: It’s always better to trade up in a buyer’s market, like the one we are in now.

Say your home value has dropped 10 percent, from $300,000 to $270,000. While the value of your house has fallen, the price of higher-end homes has also dropped. A move-up home selling for $500,000 in the past has also dropped 10 percent in value, and now sells at $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000. But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are that same move-up home would also move up in price to at least $500,000. That’s a $200,000 price difference between the two homes. So by selling today, you would actually save $20,000.

While how much you ask for your home is obviously the key factor in many buyers’ minds, presentation is crucial. The potential buyer needs to be able to see their things in your house.

Keep personal items like photographs to a minimum. Locate any clutter around your home and either throw it out or organize it neatly. If you haven’t used an item in over a year it may be time to toss it.

Clean off kitchen countertops and pack up small knickknacks. Not only will the house appear more organized but you may get a head start on packing for your impending move. Pack essential items into a box that can be easily moved into a closet when not in use. You may want to remove most books from your bookshelves, leaving just a few with some nice decorative pieces.

Remember that potential buyers will like to look everywhere in the home. Organize closet spaces and kitchen cabinets. Before an open house, do a thorough cleaning.

Renting a storage unit may be helpful as well. Remove any furniture that blocks walkways or windows. Consider stowing away your now-empty freestanding bookcases. Removing extra table leaves will make rooms appear larger. When possible, leave just enough furniture to showcase a room’s purpose.

Make any minor repairs you can before potential buyers come through. Wash windows inside and out. Polish faucets and mirrors and hang fresh towels in the bathrooms and kitchen. Overly worn rugs should be stowed away or replaced and the entire house should be vacuumed. Consider waxing tile floors and air out any musty smelling areas. Scent can make or break a sale!

Omaha-area real estate professional also offer additional “insider” tips on making your home sell faster. These include turning on all of the lights to highlight the home’s amenities and setting the dining room table for a “decorative appeal.” Buy fresh flowers for vases throughout the home. Make sure the doorbell is working and children’s rooms are tidy and uncluttered. If potential buyers do not have children, you want them to see the room as a possible guest bedroom or office, while maintaining a possibility of children’s room for those with kids.

Keep “curb appeal” in mind as well. Walk outside and see what your house looks like. How does the landscaping look? How about the front porch? The old adage “You can’t read a book by its cover” while true, doesn’t usually stick in the mind of homebuyers. Make certain that your house number can be read from the street and remember to keep your sidewalks clear and your lawn mowed. Trim shrubs and trees and if possible, plant some flowers.

Selling your home doesn’t have to be a headache if you are prepared. And most of all remember to relax. Keep things in perspective. While it may take a little longer to sell your home than it would have during the recent boom years of real estate, with a little extra preparation, your home should sell at a fair price and in a reasonable time.