1. Buy now, not later.

The 2009 extended tax credit for buyers is going to end this Spring.  If you are definitely going to buy in 2010 you are rather foolish to NOT take the governments free $8000 or so.  (I admit that it is borrowed from China, will have to be paid back with interest by our children, and will help to further bankrupt America – but YOUR not taking it won’t help.)

2. Don’t Buy JUST Because of the Tax Credit.

Sorry – many people are buying now who should NOT be buying.   There is a TOTAL COST of owning in Perrysburg that many buyer’s gloss over with stars in their eyes as they swoon for a great listing.  Taxes.  Insurance.  Upkeep.  Please consider carefully ALL of these costs.

3.  Lock In Today’s Great Rates!

The $ multi-billion dollar mortgage buyback program that the Fed has been running will be winding down soon. When it does most experts are forecasting a .5 to 1.5% increase in nominal interest rates for all fixed rate loans.

4. Buy A Short Sale.  If You Can.

I believe that in 2011 we will look back and say that 2010 was the beginning of the short sale bloom.

Short sales are right now:  the best deals, the greatest value, the best kept property, and surprisingly hassle free if you have patience.   You can call me and I will “evaluate” you for short sale tolerance.

5. Save Your Cash.

Start saving $$$$.  You are going to need at least 10% down for an FHA loan if your credit is not spotless.   And, by the way, you ought to have at least that much down or you should not even be buying a house in this volatile market, IMHO.

6.  At Least Consider an REO Listing.

These poor lenders are trying so hard to move this inventory . . . and many of the bank owned listings I have in Perrysburg are GREAT buys.   You can usually get a great deal.  We can often find a good loan program that meets your needs.  There is no shame in buying one!  You can find ALL the active Perrysburg REO’s at my REO site - www.ToledoBankOwned.com

7.  Forget About Flipping For Fun and Profit.

Not unless you are a seasoned investor professional with experience, cash, and contacts.  You are also probably on a first name basis with me so that I can feed you the one or two deals that are “flippable”.   Otherwise do not try this – way too dangerous.  And you are competing with the banks, HUD, and the myriad of REO’s in the “shadow inventory”.

8. Get a High Deductible Insurance Policy.

I have learned a few things from my insurance selling brother www.ModeneInsurance.com.  And one is that you are not really going to use your home owners policy anyway – not for anything small.  (If you do – they are watching and will JACK YOUR RATES UP!)  You are going to use your property insurance for a really big claim.  So get a high deductible policy and save some serious money.  Those insurance guys – they make enough money anyway and will gladly sell you a cheaper, high deductible policy.  (If you talk to my brother Dave . . . ask him what lovely desk accessory I bought for him).

Now, if you read this blog, you know that Perrysburg real estate has taken it on the chin.

Many have put off buying  -

Many have given up on buying -

Many buyers are confused.

But when the Feds want to shovel $7 or $8k into your hands, just for doing something you were going to do . . . well, Mama did not raise a dummy.   You follow their rules when buying, and take the money.

Facts on the ground:

• Northwest Ohio real estate prices have dropped by 25-30% in many areas.
• Interest rates are under 5%.
• Financing is still available with as little as 3.5% down.
• First Time Home Buyer Tax Credit.

Here’s a summary of how the tax credit works:

• Tax credit is 10% of the purchase price of your home ($8,000 maximum).
• Must be your principal residence.
• Buyer, or spouse, must NOT have owned another principal residence within the previous three years.
• Property must be the buyers’ principal residence for 36 months after purchase to avoid repaying the tax credit.
• Tax credit begins to phase out if modified adjusted gross income exceeds $75,000. No tax credit is available if your modified adjusted gross income exceeds $95,000 ($170,000 if you file jointly).
• You must purchase between January 1, 2009 and November 30, 2009.
• Any amount of the tax credit not used to reduce your income tax owed may be added to your tax refund check.

ALL the juicy and monetary details are HERE.

Now, reading the rules, applying them to Pburg, we are talking about a lot of possible homes – perhaps in Perry Commons/Pheasant Run or Three Meadows, or even a Forrester/Wehrle resale.

You can always let me know if you need help -  the Jon Modene Team closed 17 houses last month and we fit in at least 3 more this month!