| | | |  | | | L I V E O N L I N E | | | | | | | | | | Special Series: April 22-26
Real Estate and Home Buying Live Discussions
April 22
Mon., noon ET:  Columnist and expert Barry Stone offered advice about home inspections. Read the transcript, as well as his most recent column from The Washington Post.
April 23
Tues., 1 p.m. ET:  Columnist and expert Katherine Salant offered advice about new home construction.
Read the transcript.
April 24
Wed., 1 p.m. ET:  Columnist and expert Ken Harney answered readers' questions about selecting a mortgage lender. Read the transcipt, and read his weekly column from The Washington Post.
April 25
Thurs., noon ET:  Columnist and real estate expert Bob Bruss answered questions about buying and selling real estate. Read the transcript.
April 26
Fri., noon ET:  Columnist and expert Benny Kass answered legal questions related to real estate. Read the transcript. Also, read his weekly column.
| | | | | | __Related Articles __
• The Path to Ownership (The Washington Post, March 23, 2002)
• Realty Groups Honor Top Agents of 2001 (The Washington Post, April 6, 2002)
• Figuring a Home's Price, for What It's Worth (The Washington Post, March 20, 2002)
• 2002 Predictions (The Washington Post, December 29, 2001)
• Navigating the New-House Market (The Washington Post, January 19, 2002)
• Keeping an Eye on The Builder (The Washington Post, March 16, 2002)
• The Big Deals About Housing (The Washington Post, March 28, 2002)
• Don't Forget to Ask Who Owns Building Plans (The Washington Post, April 13, 2002)
• With a Modest Budget, a Custom-Built House Doesn't Have to Break the Bank (The Washington Post, December 22, 2001)
• Superior Exteriors (The Washington Post, December 1, 2001)
• When Is a Mortgage Rate Lock Not a Lock? (The Washington Post, January 5, 2002)
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Home Buying for Fun and
Profit
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It's the biggest financial decision, and the most rewarding purchase, you'll ever make. Buying a home is both stressful and satisfying. And more than ever before, buying a home in the Greater Washington area can be profitable. Due to a tax code that looks very favorably upon home ownership and a very healthy local property appreciation rate, homeownership is as close to a sure thing as you'll ever find in this unpredictable town. Not only can you take tax write-offs for mortgage interest and home improvement costs, but when you sell your home, the bulk of any capital gains you make are tax free under current law. Meanwhile, just living in a home you own can brighten your outlook, give you a sense of belonging to the local community, and provide your family the stability it needs to flourish. "Homeownership continues to be a strong personal and social priority, occupying a preferred place in our nation's system of values," says National Association of Realtors President Dennis R. Cronk, a Realtor from Roanoke, Va. Owning your own home can help you feel more rooted in your neighborhood and more in charge of your own destiny. You can make changes to your own home in ways that would not be possible with most rental properties. You can build an addition to create more space, or you can redesign the kitchen and master bedroom into the ones you've always dreamed of. And later, those changes can help you sell the home for more than you paid for it. What a deal! Buyers...Now Is the Time to Strike "Clean, well located homes that are priced in accordance with the market are still selling very quickly," points out Michael Matese, a top agent for Weichert Realtors. "In some areas we're seeing multiple contracts and buyers outbidding one another to land a home. Of course it all depends on location and condition." Because there is currently a very low inventory of homes for sale in the marketplace, buyers should be willing to work a little harder, and mover a little faster to land their dream home. "It takes a little more effort and a little more tenacity to land a home this spring," says Denise Kempton, a top producer in Long & Foster's Centreville office. "Buyers need to work closely with a Realtor who can go the extra mile for them. For example, in our office we check the listings of homes for sale every half-hour or so. That way we can be among the first to know that a property has gone up for sale and can advise our buyers." Buyers do have a few advantages, however, Thomas M. Stevens, president of of Coldwell Banker Stevens, Realtors, points out that " interest rates are as low as they've ever been in my 40-year career." For many home buyers, especially first-timers, the low interest rates are the key. "Simply put, a low interest rate allows more people into the marketplace," says Stevens. "When rates are this low, it increases the affordability factor and keeps those payments down which makes a big difference to almost any buyer." Kempton adds that she has seen a slight increase in inventory since Easter, which would also benefit buyers. "Maybe some sellers we're waiting for the flowers to come up and their property to look its best before putting it on the market," she says. Ready Made Mortgages "There is no reason why, in today's environment, almost anybody should be unable to get a loan," says Ron Shur, CEO of the National Financial News Service, a mortgage industry tracking firm. Shur advises anyone seeking to buy a home this fall to get the mortgage loan process started as soon as possible, however. After the Federal Reserve Board's last round of interest rate cuts, lenders' voice-mail systems were swamped with thousands of calls from prospective home buyers and refinance candidates. "The huge volume of requests means that lenders may be moving a little more slowly than usual and you don't want lack of approved financing to hold up your real estate deal," Shur says. He also advises loan shoppers to compare more than just interest rates. "Different loan programs have different amounts of fine print," he says. "Be careful to compare things like points, processing fees, hidden fees, terms and conditions. The loan with the absolute lowest rate isn't always the best deal." Most Realtors and lenders agree that getting your financing approved before you start shopping for a home will help you act quickly when the right property comes into your sights. "You have to be prepared to move quickly as soon as you see something you may want to buy," says Realtor Ron Redfoot of Long & Foster's Sterling office. "That means having all your financing approved before you begin house hunting, having a good list of what you 'need' and what you 'want' in your first home (they are not the same thing), and doing your homework as to which neighborhoods you would prefer to buy in. When you're well prepared, you can act with confidence when the right home comes along." While experts can give you their estimation of where the local real estate market stands at any given point, the truth is that the market for homes is forever in flux, going from buyer-friendly to seller-friendly and back again as the years go by.  One thing is certain, however: The tax advantages you get from buying a home begin the moment you make you first payment towards the property, and the emotional lift you get from ownership starts as soon as you unlock the door with your own set of keys for the very first time. "Timing" the real estate market is best left to investment gurus. Owning a home is an investment in your own future, and there is no wrong time to take that kind of step. Of course you don't want to overpay for a property. That's why you'll work with a Realtor who understands local property values and can guide you to the best value for your dollar. Over the long haul, real estate has proven to be a solid investment, so long as you don't get carried away with your emotions, or get caught up in a bidding war, and overpay at the start. Remember, over two-thirds of all Americans own their own homes. And today there are more resources available than ever before to help you find the right property and finance it wisely.
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