If there was ever a market for the first-time home buyer… 2012 is it!! Home prices have hit rock bottom, and interest rates are hovering in the high 3’s. The combination of lower prices, cheap mortgage rates, and tax deductions has produced some of the most favorable conditions for home buyers in years. Home affordability is the best it’s been since 1971. This is a great opportunity for a new generation to invest in the American Dream and search for a home of your own. Homeownership is still considered the best long-term investment.

With the Spring market upon us, the selection of inventory is beginning to grow. There are plenty of great deals available to the first-time home buyer, but many are afraid to take the plunge from renting to owning. The National Association of REALTORS survey shows that 75% of first-time homebuyers said that finding the right property was the hardest part of the buying experience. A good real estate agent can guide you through the entire process and make the experience much easier. A local agent knows the inventory well and can help answer questions on the neighborhood, schools, resale value and more. Some agents even offer First-Time Buyer Consultations to help prepare potential buyers for the different steps they’ll face during the purchase process.

First-time home buyers have many advantages in this type of market. Many are still living with parents or are in short-term rentals so their closing dates can be more flexible which appeals to most Sellers. Since they don’t need to sell a home before purchasing, they have a distinct advantage over competing offers. Most sellers prefer not take an offer with a home sale contingency.

Trying to decide if you would prefer a condo or single family home? The first and sometimes only thing people consider is their budget; but you also have to consider your lifestyle preferences.

If you are a frequent traveler, don’t enjoy yard work, and want maintenance free living, a townhouse or garden style condo might be just right for you.

Do you have a lot of vehicles, sport utility toys? Opposed to lots of rules and regulations regarding your property? Like the outdoors, gardening, playing in the yard? Then a single family home is probably perfect for you.

In addition to considering life style choices, determining what you can afford will also impact your decision making process. A single family home typically costs more and is more expensive to maintain on a long term basis.

However, condominiums have monthly fees and sometimes special assessments to ensure there is enough money in reserves to handle a new roof, leaky plumbing, and any major repairs that might arise (similar to single family home ownership). The maintenance fees typically cover snow plowing, garbage pick up, water, sewer, and occasionally heat and hot water.

So you have heard that the real estate market is making its recovery in New Hampshire, but you’re nervous to take the big leap to home ownership? The question you should be looking at now is what are you paying to rent vs. what would it cost you to own? You may be surprised.

Now is the perfect time to buy a home with prices stabilized, and more affordable than they have been in years. Interest rates are at a record low, but are expected to rise in the future and since the market’s inventory is now moving, you could be missing out on the home of your dreams. What if you also knew that you might be paying the same or more for rent as you would for that mortgage and actual ownership?

Depending on where you live, renters on average are paying between $1,100 to $1,700 for their apartment or condominium. Size also plays a role in this equation, so if you have more than one bedroom, or more than one bathroom, your costs are on the higher end of this scale or above it.

But with interest rates at an all time low, you could be owning your home for the same cost per month, have larger living space, have the freedom to paint it whatever color you choose and have a yard to call your own.

According to recently published statistics by the National Association of Realtors, more home sellers are seeking the expertise and professional services of a real estate agent to sell their home, rather than trying to sell it on their own.

Over the last decade, the share of home sellers who used a real estate agent or broker to sell their home increased from 77% to 87%, while people who tried to sell their own home (For Sale By Owner or FSBO) decreased by 9%.

Why are more and more sellers using real estate agents to help them sell their homes? Well, first and foremost, selling a home is not always simple or quick, especially when you are trying to do it without the marketing tools and contract knowledge that an experienced Realtor has. Realtors can list a home on the Multiple Listing Service (MLS), which puts it on the market to all the other Realtors in the region who are representing most buyers. Nobody selling on their own can reach the same number of potential buyers as the MLS provides. A Realtor also uses their skill to sell the house in a reasonable timeframe, to market the home to potential buyers, and to price the home competitively.

It is true that some people are able to sell their own homes without the services of a real estate agent, but they are the exception, not the rule. Here are five reasons why FSBO sales are challenging and sellers are turning to Realtors to get the job done.

1. A FSBO can not get their home listed in the MLS because it is open only to members in the Real Estate industry who are licensed real estate brokers and agents. FSBOs do not appear in many home search engines and Web sites. A FSBO can put a “for sale” sign in their front yard and place a few ads in newspapers, but their ability to market the home is very limited.

With so much information available online, home listings a click away on the computer, and being an intelligent human being, why should you hire a real estate agent?

People sometimes think they should save a bit of money and represent themselves. To be honest, some people do okay, but more people don’t. As with anything of value, you get what you pay for, and the sale and purchase of your biggest investment should not be something you gamble with. Look at it this way: If you have a Realtor, you won’t end up with the same results as you would’ve without one. Wouldn’t it be better to have the results you get with their knowledge and experience on your side?

Here are 5 reasons why you might want to consider hiring a professional real estate agent.

1. This looks familiar: Education is a great thing to be armed with when trying to market and sell your home as well as making that big home buyer purchase. Experience is next on the list of helpful tools. The Realtor you hire can bring both attributes to any contract negotiation or issue that arises in the process of buying or selling your home. They have seen many contracts, handled many negotiations as well as multiple situations and unexpected delays that can happen during the buying and selling process.
2. They are your go-between: As a seller you need someone to weed out the crop of uncertain and unqualified potential buyers as well as market your home to its highest potential. As a buyer your agent can guide you to properties that truly match your needs and wants so you don’t waste precious time wandering to see homes you would never want to purchase. Top agents can negotiate well because of their skills but also because they are not emotionally involved in the transaction. Realtors are not messengers, delivering offers back and forth. They are trained professionals hired to present their client’s offer in the best light and keep client information confidential from competing parties.

The upturn in the real estate market in New Hampshire has Realtors seeing multiple offers coming in on homes that are priced well. But what do you do if that home of your dreams is one of those ideal homes with multiple offers coming in? How can you increase your chances of winning against competing home buyers?

The winner is often simply the most qualified home buyer with the highest offer and no contingencies in their contract. In other words, they have no previous home to sell before they buy and are not asking for special accommodations.

• The highest offer – How do you know you are offering competitive amount without over paying for the home? Research with your agent what the home’s true worth is. Learn about the neighborhood and other property values. Remember that the winning buyer in a multiple offer presentation is often the one who makes the highest offer, pure and simple. When market values are rising, there may be a bit of guesswork involved in pricing. You may need to pay more than yesterday’s comparable sales in order to be the successful bidder. If the market is slowly rising in the area, take that into account and offer slightly more than a home that sold several months prior. Your Realtor can serve as an educated advisor in this process.
• No strings attached, no contingencies- In a “clean offer” there are few if any conditions that must be satisfied in order for the sale to go through. The typical situation in a home purchase contract includes some contingencies like the buyer obtaining proof of financing, the buyer being allowed to do inspections and possibly the sale of their current home. To beat out the competition limit as many of these requirements as possible when presenting your offer. For example get prequalified for the amount you will have to finance and have a letter of proof of that qualification with your offer. Your loan agent can write the letter stating that the loan application was submitted and the credit is acceptable. This way the home sellers know the home sale will be more likely to go through without financing issues.

For most home buyers, mortgage rates and housing costs are a key determinant of whether it is a good time to buy. Currently, mortgage rates are so low that many would-be buyers can not only qualify for a mortgage, but perhaps a larger home than might think. If you have been thinking about searching for a home there are some very good reasons to investigate your options with the help of a Realtor.

At this time of year some sellers are facing job relocation and a required move come January. Some are looking to wrap up the sale before the holidays. Now is an excellent time to find not only your dream home but sellers who will take every offer seriously and may be motivated to sell quickly.

Interest rates remain at a record low: Essentially, interest rates effect the size of your monthly payments. Low interest means you can afford a bit more house than you could when interest rates were higher. It also means you pay less over the life of the loan in order to own the home and therefore it makes it a great time to invest your monthly payments to a mortgage versus your rent payment. According to Freddie Mac, the 30-year mortgage rate recently rose to 4.12 percent which is still less than half the average interest rate since 1971.

If you have been weighing the possibility of buying your first home, now may be one of the best times in many years to buy. Don’t let negative news reports about what is happening around the country (in states much harder hit by the fallen housing market than New Hampshire ever was) deter you from one of life’s greatest moments… opening the door of a home that is completely yours.

There are many positive things about owning your own home, beyond just that satisfying feeling of a place that is “yours”.

• Equity: Yes, equity. It is coming back, slowly but surely and buying now when prices are low means that over the coming years, as your home’s value slowly increases; so will your equity. When you pay rent, your money is gone to improve your landlord’s financial health. Historically, homes appreciate by about 4 to 6 percent per year, and New Hampshire properties are holding fairly steady at this time. But, experts says real estate values are poised for that increase to return in the coming year or two. This means the home you might buy today will probably cost you more in a year or two. A smart financial move is to buy low when values are on their way up. That time has come. Remember homeownership is about building long-term financial stability. Though it is not a get rich quick investment like it was in the housing boom when values went through the roof, a home bought for $12,000 in 1962 is most likely worth 10 times that today.
• Stability: If you acquire a fixed-rate term on your mortgage you can safely rest-assured that your payment will be predictable. Fixed rate means your interest rate remains the same through the life of the loan and so will your payment. If your mortgage payment is $700 today, then it will still be $700 a month until you pay off the mortgage. This allows for people to budget and make solid financial plans. Homeownership generally has some very predictable costs, even the big ones; from cleaning the furnace once per year to replacing the roof shingles every 15 to 20 years.

Deciding it is the right time to move to a new home is a big decision. Sometimes it is driven by work requirements, transfers or getting a new job. Other times it is just something you instinctively have decided it is right for your family to do. It is time.

But with all the excitement that goes with finding and purchasing a new home, there is also that big detail nobody likes to plan for: Packing up and getting re-settled into your new home.

Here are some tips to make the process smoother:

• Decide if you move yourself or hire a moving company to do it – This usually comes down to a decision about costs versus time and effort. If you are moving across town it may make more sense to do it yourself by renting a truck and getting the assistance of a few strong friends. Several trips can be made between the old home and the new if the miles between are not extensive. Anything over what the rental company considers “normal mileage” for your planned move from point A to point B may cost you when you return the truck as well as add up in gas costs. You will also need to buy or find your own boxes, packing material, tape and a system to label your boxes.
• If you decide that moving is not a do-it-yourself project, call some moving companies in your area and ask for a sample quote over the phone. Know the approximate miles between your current location and your new home. Many will come out to your place for an estimate, some will ask about the number of bedrooms you currently have and size of your home to base their estimate on.

Why offers get rejected
Buying a home is an experience where emotions can get the best of you. This is after all one of your biggest investments; it is the place you will live with your family and it holds that special meaning we associate with the word “home”. So when you have found the perfect house and place an offer, it is perfectly natural to be thinking (a lot) about whether or not the seller will accept.

It is a common experience among home buyers, especially in areas where home inventory is limited and many buyers are competing for the same homes for some buyers to loose out and have their offer rejected. So what are the reasons behind rejected offers and how can you try to avoid this from happening to you?

The Lowball offer: Simply put, you wanted the best deal of your life and tried offering less money than the seller was willing to accept. Maybe you did not realize what the minimum to offer, respectfully, should be. Maybe your plan is to intentionally make lowball offers hoping someone is motivated enough to except. But if you know you are making lowball offers, you should be prepared for rejection. Some sellers may chuckle and counter-offer, but others may refuse to justify your offer with a response other than, “No”.

Multiple offers: The seller of the home may have just received offers from multiple buyers and your bid is now in competition for acceptance. Your agent will let you know if they learn that there are other offers on the table and they can help you find strategies to improve your offer and its chances of acceptance. In the end, it may come down to who is willing and able to pay more.