Heading into 2008, the market just isn’t turning around as so many predicted. The industry, it seems, has been caught up in a game of “projecting,” to use a psycho-speak term. Meanwhile, this pesky subprime headache lingers on as we start to draw a clearer picture of how recklessly this shaky housing-market foundation was laid. It’s a hangover that will last well beyond New Year’s Day. In contrast to the billions in risky ARM loans that were advanced to questionable borrowers toward the end of the boom years, many credit-worthy buyers are now getting a different kind of arm — a straight-arm — when they seek out mortgages amidst a backdrop of spiraling foreclosures and plummeting prices.

* Full story: Available on Fox Business

The debate over whether now is the right time to purchase a home or not continues to rage and many people are wondering how they can protect themselves during this difficult time. One of the biggest concerns in the current real estate debacle is whether lenders and real estate agents stood by while buyers took on mortgages they could not afford just a few years ago. Judging by the amount of foreclosures that continue to amass, it would certainly seem as though this might be the case.

As a result, many sellers are putting their homes on the markets without consulting an agent and even many home buyers are moving forward with the thought of purchasing their next home without assistance from an agent.

Even so, the home buying process can be quite complicated. The matter generally involves legalities that necessitate assistance from legal experts. In this case, it really can be helpful to consider working with a buyer’s agent if you are considering purchasing a home.

Unlike traditional agents that typically represent the seller, a buyer’s agent works to represent the buyer. This is a major step away from the way things are traditionally handled. With a traditional set-up, the agent represents the seller and as a result receives a portion of the sales price as a commission when the home sells. Obviously, it is therefore in their best interest to not only sell the home but to also get as much money as possible for the home. The more money the home sells for, the more money the agent will make through their commission.

If you are a seller, this type of arrangement works quite well. If you are a buyer; however, you may find that you are left out in the cold. A buyer’s agent can help to ensure that you receive protection through a professional representing your interests in the transaction.

Beyond the money, it is also important to consider that a buyer’s agent can help you to view home with a healthy dose of reality. When working with a seller’s agent you may not see the flaws that a home potentially possesses as the agent’s goal is to paint it in the best light possible in order to sell it. A buyer’s agent will help you to see the home in a more realistic fashion.

Before hiring a buyer’s agent; however, it is important to keep in mind that while a buyer’s agent can provide you with a lot of protection, there are certain tasks which are outside the scope of their responsibility. For example, while a buyer’s agent can help you in negotiating a fair price, they cannot guarantee you that they can get you a great bargain.

Furthermore, it is important to understand that in many cases a buyer’s agent is still paid with a commission from the sale price. As a result, this could mean that the agent still has a strong incentive for getting you to purchase a home. You can avoid this type of situation by negotiating the agent’s fee yourself. Instead of the agent receiving a sales commission, considering offering them a flat fee that you will pay them on your own.

It is also important to keep in mind that a buyer’s agent is not responsible for helping you to understand the responsibility you are taking on when you purchase a home. It is your job to understand your mortgage as well as the implications of that mortgage. It is also your responsibility to make sure that you purchase a home that you can afford and not one that will cause you to join the ranks of those who are experiencing foreclosure. It is entirely up to you to make sure that you are comfortable with your mortgage. Remember that just because you can buy a certain price home does not necessarily meant that you should just because the bank is willing to lend you the money. Ideally, avoid purchasing a home that is at the top of your price range. You may be able to live with it right now but that doesn’t mean you will be able to do so in a year or so if circumstances change. Ultimately, it is you and not the agent or the lender who will need to pay the bills each month.

Finally, understand that a buyer’s agent cannot promise you a great interest rate or even that you will be able to refinance later on in order to obtain a better rate. That decision is entirely up to your lender.

The alarms about the housing market have caused many people to hesitate in buying a home. In other cases; however, many others are snapping up what they consider to be excellent deals. It is not at all uncommon for many buyers to purchase homes at prices that are at least 10% below the asking price. As a result, many of the buyers closing on homes right now were not even considering the purchase of a home until they realized that if they did not take advantage of the current market they might not ever find something similar for the same price again.

Growing families are leading the pack among consumers who are buying homes despite the declining number of sales across the country. Thee combination of low prices and a wide selection have led many families to upgrade and purchase the larger homes they need to accommodate their expanding families.

When considering the purchase of a home in the current market, the key is to make sure that you search out those homes that are truly bargains. This is critical because despite the fact that the mortgage market appears to be in an ongoing decline across the nation, there are some still areas which have not felt the worse of the price declines yet.

In addition, it is important to look for homes that have features which will help it to maintain its value. Remember that just because the price is low on a home that does not mean that it is necessarily a bargain.

Buying a home right now can certainly provide many advantages; however, before you actually start shopping around it is a good idea to make sure that you have taken care of a few matters first to make sure that you can reap the maximum benefits. For example, if you are considering the purchase of a home and it is not your first home purchase, it is generally a good idea to wait to put a contract on a home until your existing home is in contract. Otherwise, you may get stuck with two mortgages and find yourself in a difficult situation.

In addition, make sure that you check on your credit and know where you stand before you apply for a mortgage loan. Mortgage money is still available; however, lenders have tightened the reigns considerably and are now reviewing loan applications far more closely than in the past. If you have delinquencies on your credit report, it is generally a good idea to take some time to improve your credit score as much as possible before you actually apply for a mortgage loan.

It is also important to make sure that you have saved a sufficient amount of money for your down payment. As a result of increased delinquencies and defaults, banks are now frequently requiring larger down payments as well as larger bank reserves. If you are a first-time home buyer consider checking into buyer’s programs that are specifically designed to assist with down payments and closing costs.

You should also check into the type of financing which you may qualify for before you actually begin shopping around for a home. In fact, it is a good idea to go ahead and get pre-qualified for your mortgage so you will know exactly how much house you can afford before you set your heart on a home only to discover that it is out of your price range. Along those same lines, if you obtained a pre-qualification a few months ago it is a good idea to make sure that not only does the program for which you pre-qualified still exist but that you still qualify for it.

Avoid making any major purchases while you are in the midst of the home buying process. Lenders are definitely more restrictive today than even six months ago. As a result, any changes in your credit score could affect your ability to qualify for a home loan. Even if you have already been approved for a loan and are in the middle of closing the contract, you could find the rug pulled out from under you if your credit changes during that time.

Now can be an excellent time to purchase a home if you plan to stay in the home for the next several years. By taking the time to make sure that you address your credit, pre-qualify for a loan and shop around judiciously, you could very well find a bargain on the housing market that would otherwise be unavailable.

Few, if any, people at that time were thinking that the party would soon come to an end. In December 2006, I wrote a column in which I said that the booming housing market had finally slowed down as I had previously predicted, and I said that there would probably be little, if any, home price appreciation in 2007 because the number of homes on the market would increase and turn a seller’s market into a buyer’s market.

* Full story: Available on HeraldNet

How many times have you heard that buying a home is the best investment you can make?

Now listen to this: “Pop”!

That’s financial author and radio host Dave Ramsey popping the bubble of millions of Americans, on The Early Show Tuesday.

It turns out home ownership isn’t always a good financial move. Homes are staying on the market longer and selling for less. Homes, says Ramsey, clearly are no longer the money-machines people believed them to be in recent years.

* Full story: Available on CBSNews.com

If you are spending a lot of time in a real estate agent’s car when going house hunting, you might want to consider a new way to view houses and neighborhoods in a more environmental friendly way: bicycle. A Boulder-based real estate agent assisting home buyers to experience property viewing on cruiser bikes. Pedal to Properties has come up with such a novel concept!

Buy a home in Monaco and you’ll enjoy iconic beaches, glamorous casinos, a renowned arts and music scene, pulsating nightlife and boutique-packed boulevards. You’ll also pay for it.

That’s because the Mediterranean principality tops our list of the world’s most overpriced real estate markets. The rankings were compiled by calculating an effective annualized rate of return on a property based on annual cash flows derived from renting and adjusted for capital gains tax, transaction fees, operating costs and maintenance, appreciation and inflation. We then flipped the return rate to resemble the more familiar price-to-earnings (P/E) measure.

* Fully story: Available on Forbes

While the purchase of a home is always exciting, many first time home buyers get so caught up in the excitement of it that they fail to consider all of the important factors which should be taken into consideration in order to make the purchase of their first home a success.

These factors and details include reviewing the cost of renting versus buying a home, ensuring the home is located in a good school district, applicable legal fees and appraising the value of the neighborhood in which they are considering making their purchase.

While the idea of owning a home is still very much alive as part of the American Dream, if you fail to take all of these important areas into consideration before actually signing on the line, that dream could quickly become a nightmare.

When purchasing your first home it certainly pays off to take the time to do your homework. When touring a neighborhood in which you may consider purchasing a home it is imperative to make sure the home will hold its current value. You can do this by paying attention to what is going on in the neighborhood and looking for signs which might indicate there could be a price correction looming in the future.

For example, make sure you take a look with the radius of a few blocks and take a count of the number of for sale signs that are present. This will quickly give you an idea whether or not there is a glut in terms of available housing. Ask your agent how much time other homes in the neighborhood have spent on the market as well as for information regarding current asking prices versus original listing prices.

Whether you have children now or think you may have a family in the future it is also a good idea to make sure you check out the local school district. Research the test scores of the local schools. Even if you do not plan to have children in the future this is an important step to ensure your home is in a good school district for resell purposes in the future. The buyers you sell to several years down the road may have a family and be concerned about such things.

Considering increased levels of environmental concern, it is also a good idea to have an environmental appraisal of the neighborhood as well. Laws vary in each state according to the types of potential health hazards which must be disclosed as well as the distance away they must be from the home in order to be considered serious. If problems are found consider either selecting another property or at least use the information in your favor for price negotiations. While there are rarely any serious problems present, having such an appraisal can provide much peace of mind. Information that may be revealed in the appraisal includes the presence of a leaking gas tank nearby, possible water pollutants and even the location of a former drug lab in the vicinity. Plan to pay between $100 and $150 for such an appraisal.

If you are purchasing a historic home or a home in an historic area, always make sure you check in with the local historical preservation board to find out how much flexibility you will be granted for remodeling and additions. This can be a sticky issue in many areas. It is not at all uncommon for boards to require homeowners to obtain as sign-off before they make any changes at all to their properties. This could mean that you must obtain permission even to change the color of the paint on your home.

Finally, of course, you must make sure that you can actually afford to buy the property. Far too many times first time home buyers fall in love with a property, make an offer on it and discover later they cannot obtain financing for the amount of the purchase. Not only must you make sure you can get pre-approved for a home mortgage loan but you must also make sure you can come up with the home down payment and home closing costs. Plan to pay between 2% and 5% of the purchase price for closing costs. Make a plan for how you will pay for these costs before you even begin shopping for your first home.

By taking all of these factors into consideration, first time home buyers can be sure that when the time comes for them to purchase their first home, it really is a dream home and not a nightmare or a money pit.

When looking around for the property that will eventually become your home there truly is nothing more important than location, location, location. Unfortunately, many home buyers make the mistake of believing they can judge a neighborhood by its appearance when it comes to crime. They find out the hard way that while a home may look perfectly clean and safe, there is still an amount of crime they failed to anticipate.

One of the most frequently problems are elements of underlying crimes that you may not be aware of simply because the neighborhood “looks” safe. Even though the lawns are neatly trimmed and the homes all appear to be in immaculate condition that does not mean the neighborhood is free from all crime.

When you are considering buying a home, particularly in a neighborhood you do not know much about, it is imperative to take the time to learn more about that area rather than simply basing your final decision on the way it looks.

Your real estate agent may be able to help you with uncovering some details about the neighborhood such as any planned future developments as well as school information but you may find yourself on your own when it comes to uncovering other information.

The first step should be to check with the local police department. Stop in and explain that you are planning to move to the local area and would like to find out how much crime exists locally and most importantly, what kinds of crimes take place in the area.

The type of crime perpetuated in the local area is a key question. This will indicate what kind of criminal activity may be ongoing as well as what kind of characters may actually be venturing into the neighborhood to pose a threat to your safety.

Far too often, homeowners make the mistake of visiting the neighborhood during a particular time of the day and see that everything is fine. They fail to come back in the evening, on weekends or other times to see if there are any changes in the area. It is imperative that you take the time to observe the neighborhood as well as the people who live and work there to give you a complete understanding of whether that neighborhood is right for you and your family.

Remember that staying safe is not always related to the lack of crime. You also want to consider other factors such as traffic issues. If you have kids, consider how far away the local school is and how your kids will get there. What kind of local transportation exists?

Take a look around at the local geography near the school. Do crosswalks exist? Are crossing guards present? Is there a local bus service? How many streets will your children need to cross in order to get to school?

Even if you do not have children, taking the time to investigate the school system and relevant traffic issues can be a good idea. A thriving school district is a strong indication that the local area will support rising property values. On the flip side; however, if you are located too close to the school and must deal with traffic jams on a daily basis, this could negatively impact the value of your home.

To further assist you in gaining information about the local area, consider the following tactics.

Go out to dinner at a local restaurant and make an attempt to strike up a conversation with other patrons. This can prove to be an invaluable source of information.

Spend an hour or so shopping. Speak to the local business owners. They can provide a lot of insight to the neighborhood and the people who live there.

Ask your agent about the local owner-occupancy rate as well as rental values. Remember that a low owner-occupancy rate could indicate problems as tenants frequently do not have the same pride of ownership that a owner would. As a result, properties may not always be kept up.

Visit local facilities including movie theaters, shopping marts, malls, etc. These locations are generally hangouts for the local kids and will give you an idea about the neighborhood kids.

Finally, be sure to simply drive around the neighborhood. Does it look as though there are a lot of remodeling projects going on? If so, this could mean the neighbors are planning to be around for awhile, which indicates they are making an investment in their homes as well as the neighborhood.

While we all know that buying a home involves a significant investment both up front and over the long term, in many cases home buyers may overlook a number of hidden costs of home ownership that can make the reality of owning a home more expensive than they realized.

So, what are the hidden costs of buying a home? Some of the most frequently overlooked fees include:

Property and assessment tax - Quite frequently home buyers are required to establish an escrow account with their mortgage lender. Home buyers must pay a portion of their taxes upfront and deposit them into the account.

Insurance - Generally, homeowners are required to pay their homeowners as well as their fire insurance upfront as well. It is not uncommon for mortgage companies to require that the first year of coverage be paid for at the time of closing.

Appraisal Fees - An appraisal is required by most mortgage lenders to ensure that the property you are buying will cover your loan amount. The buyer is typically responsible for paying for the appraisal; which can range between $150 and $450.

Survey Fees - In some cases, the lender may request a property survey, especially if there are questions about the property lines. Fees for surveys range between $600 to $2,500.

Septic System Certification - It is imperative to find out whether your property connects to a public sewer system or not. If it turns out that it does not, you may need to obtain a septic clearance to satisfy your lender.

Water Quality Certification - This will ensure the safety of the water quality on the property as well as ensure you have enough water flow so you won’t run out.

Origination and Loan Charges - These can vary but it is not uncommon for lenders to add in fees for processing your loan as well as documenting preparation, closing, underwriting, funding and miscellaneous fees.

Association and Maintenance fees - Some housing developments charge maintenance fees which must be paid annually. This means you will need to pay them upfront at the time of purchase.

Utility Service Fees - Always make sure you have reviewed charges for utilities such as water, cable, electricity, gas, satellite TV, garbage, phone, sewer, etc. The costs for these fees can rise quickly.

Legal costs - These costs go to cover the fees charged by your lawyer for reviewing the terms of the offer, conducting a title search, signing over the mortgage, registering the new title, determining adjustment costs and obtaining any documentation that may be relevant.

Interest adjustment - This fee may be necessary in order to cover a gap that exists between the closing date at the time of purchase and the first payment date for the mortgage.

Home inspection Cost - It is always a good idea to have an inspection completed prior to closing on the property in order to evaluate both the mechanical and the structural condition of the property. Your lender may even require this.

Moving Cost - This should be an obvious cost of buying a home; however, many buyers simply overlook this cost. The actual cost will depend on the distance you are moving as well as the amount of good and furniture to be moved.

Appliances - Are all the appliances included in your new property? If not, you may be facing the cost of purchasing new ones when you move in.

Mortgage Life Insurance - This is a special type of insurance coverage that will cover the costs of discharging your mortgage in the event of your death or even severe illness.

Landscaping - If you are purchasing a new construction home, there may be costs associated with landscaping, particularly during the first year to two years you live in the home.

Annual Maintenance - Often overlooked, these fees can add up quickly if you are not prepared for them. To maintain the value of your home, you should be prepared for future painting as well as the replacement of items such as furnaces, roof shingles, appliances, etc.

While the list of hidden costs of home ownership may be surprising, the good news is that there are steps you can take to prepare.

First, make sure you are prepared for closing costs associated with your loan. Generally, you can plan to pay between 3% and 5% of your total loan cost for closing costs. Be prepared for maintenance and repair costs by making it an annual routine. Budget for these costs on an annual basis. Plan to put back at least 1% of your home’s purchase price for annual repairs and maintenance.

Finally, take the time to be sure your home is covered by appropriate levels of homeowners insurance in the event of fire or theft.