5 NEW RULES FOR HOMEBUYERS

Surviving and thriving in the real estate market these days means following a whole new set of rules. Explaining the following five items to your customers to help win friends and sales:

1. Gaming the market doesn’t work. There’s a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love.

2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody’s Economy.com predicts rates will hit 7 percent in mid 2009.

3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end.

4. Good schools count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com.

5. Honesty is the best policy. Be upfront about your commission and consider letting the buyer keep any incentives offered by the sellers.

Source: Money Magazine, Amanda Gengler (05/27/08)
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