What is the average age of home buyers? A little over 50% are of the age of 30-45. Echo boomers-children of the baby boomers-are the generation born between 1979-1995. Approximately 80 million strong, they are entering the housing market and fueling growth just like the boomers before them, according to Harvard University’s joint Center for Housing Studies. The report states household growth should range between 12.5 to 14.8 million over the next ten years, creating a powerful driver of future demand and growth.–2011 KW Market Navigator–Graph from NAR

Affordability measures ability to buy”that is, the amount of a family™s income
consumed by the mortgage. In 1989 it took 24% of the family income to pay a
mortgage. Today it takes 14%”a historic low!—-2011 KW Market Navigator

 Now is the time to lock in mortgage rates, which touched bottom on November 11, 2010, at 4.17%, and averaged 4.69% for the year, an all-time low since Freddie Mac started its mortgage survey in 1971. At the end of December, rates stood at 4.71%. With rates this low, most feel they only have one direction to go”up.–2011 KW Market Navigator

Taken from 2011 KW Market Navigator

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What should you, the consumer be looking for when choosing a Real Estate Professional to work with?

              Ž1. Is she/he trust wothy? This is huge, if the associate is only looking out for number one, you as the client will always come second. So how do you combat this? Research, research, research. See how hard they are working for thier other clients, did they provide you with a reference sheet of clients who just went through the process with them?

              2.  Commission, a real estate professional should never be concerned with commission. We have seen this far too many times. If you, the client are interested in a home that is offering out minimal commission the buyer associate should show the home no matter what. If there is avoidance involved on the associates part, it is imperative to stop working with them. We have never looked at commission.

              Ž3. Beware of old school salesman tactics. We had the opportunity to list 2 homes with one of our clients recently, after one of them expired with another brokerage. Our client was getting hit really hard with phone calls, and expired letters which is normal. One associate actually went to our client’s home unannoun…ced and tried to bully his/her way into obtaining the listing. We were bad mouthed, and the the phrase of: “I Have a buyer” came out. If you hear this, run as fast as you can. This is a commonly used tactic to coerce the client into working with them.

How do you as the consumer choose the best listing associate for the job?
Let’s first agree on a very important part of this process. You are trusting this person with one of your biggest investments. Think about this for a minute or two. You should only require the best work in this area. So what should you look for……?

 Ž1. What is the realtor’s educational background? Did he/she graduate from College? Picture yourself as an employer, because that is what you are. Would you hire someone to handle your biggest investement if he/she did not obtain formal education? You probably wouldn’t even give them an interview. Remember, all that is required to obtain a real estate license is a high school diploma. We are looking for an overall picture that makes up a professional.

Ž2. Years of Experience: We have proven this wrong time and time again. Just because one has been in the business for a long time does not mean he/she will do a better job than the new upcoming real estate professional. The key is continued education, and training. Old out dated habits do not equal a good job. MOM & POP BROKERAGES.  We hate to say this because  we are a fan of the small Entrepreneur, but stay away from the small local brokerages. They simply do not offer the web tools, training, or national reach that a well known franchise has in today’s market. Again, this is one of your biggest investments, so you want to make sure that every avenue is available when marketing your home.

 Ž3. WEBSITE: Do a thorough check of their Website. Check for the ability to search for homes through the MLS without having to give out your information, relevant information like school/community info, and fresh content. Then check to see that he/she is doing a good job with the current listings they have.

More to come on this subject.

The subprime mortgage crisis brought underwriting standards back into the mortgage origination
process. And while the final quarter of 2009™s financial meltdown led to a sense that financing had
dried up, mortgage funds are now available. œIf you have a job and can afford the payment, chances are you™ll qualify for a mortgage, says David Reed, a mortgage banker and author of Mortgage Confidential: What You Need to Know That Your Lender Won™t Tell You.

Also noteworthy is the recent drop in jumbo mortgage loan rates and an uptick in the high-end of the housing market. The sector which was not bolstered by the $8,000 first-time home buyer tax credit is faring quite well, providing further evidence that the recent sales setback is simply a function of the market readjusting to the expiration of the tax credit.

than it™s been in the past half century. Interest rates for the same time last year averaged 5.19