Boca Raton, FL Real Estate Agent: December 2009

While the tumultuous real estate market has many people hunkered down hoping it will all blow over, proactive homeowners are looking beyond the uncertainty.

They're weighing a decision about whether to refinance their mortgage or trade up to a house they couldn't afford three years ago.

Making a move more alluring, interest rates continue to hover at 4 percent to 5 percent and tax credits of up to $8,000 for first-time homebuyers and up to $6,500 for buyers who have been in their homes for at least five of the last eight years consecutively are available.

But before you take the leap, here are some questions to ask yourself:

•1.        How long do I plan to stay in the new home? The rule of thumb is at least five years to make a new mortgage worthwhile.

•2.        Do I really need to move or just want to grab a deal?

•3.        Can I cover the costs to close and relocate? With every winner, there's usually a loser, and you could be both if you find a great deal on a bigger house but can't sell your current home.

•4.        If I stay in my current home, does it make sense to refinance and maybe add that extra bedroom or build a deck to improve the property?

Take a deep breath and analyze what you really need, not what the market seems to be telling you to do.

"The decision depends on the individual. Are you looking to move because their family has grown or has your job changed locations, or do you want a shorter commute? But don't move just for the sake of moving; now is a great time to buy, if it makes economic sense and improves your lifestyle.

There are several good reasons to buy a house now.

"Rates are historically low; it's essentially a buyer's market. And for people moving up, obviously they won't get as much for their own home as they would have a few years ago. But if they're reasonable and set a good price and they find another house at a good price, the two together could be a real benefit especially if you are buying and getting a mortgage rate that  is better than what you are paying now.

If you are considering buying a condominium in Florida you should be aware of some recent legislation that is designed to assist buyers in identifying potential problem properties.  Florida Statute 720 now requires a State Mandated Reserves Study needs to be performed by the Condo Association and prospective condo buyers should receive full disclosure regarding the outcome of this study.  You agent should secure the study for you and it will identify if any major repairs are expected, how much the repairs will cost, when the repairs are budgeted and the proposed completion date and if the condo association has enough money in reserves to cover the cost of the repairs of if the they will need to pass a special assessment onto the existing condo owners.  I would recommend not considering any condominium property that has not completed the study.

 Also be knowledgeable of the Chinese Drywall situation that may occur with any construction that has occurred since 2000.    Any knowledge of Chinese drywall needs to be disclosed and you should hire a certified inspector the test for the presence of Chinese drywall if it was not been disclosed.
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The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?
A: It's hard to tell, but don't count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com's panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone's guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you're refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a "strike" interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now-low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there's growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Mark Zandi, chief economist at Moody's Economy.com, recently predicted that housing prices nationally will hit bottom in 2010's third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.

Start looking now to position yourself to buy in mid-2010.  To find out more information on the benefits of using an Exclusive Buyer Broker and how it can save you money please visit the  About Buyer Agency section at www.OptimaProperties.com

Today's definitive online resource, Wikipedia, lists the definition of an Exclusive Buyer Agent (EBA) as one who works solely for the buyer, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transaction. Representing only buyers of real estate, EBA firms never take listings and, therefore, never represent the seller in a real estate transaction. The number of EBAs nationwide is less than ½ of 1 percent of all real estate firms, making their service even more rare at a time the real estate market really needs representatives to help buyers who are pressured to beat the clock, complete their purchase before the now-extended first-time buyer's tax credit runs out.

Exclusive Buyer Agent (EBAs) work solely for buyers, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transactions. This unique relationship of committed trust and care assures buyers the best possible home buying experience.

The Oklahoma Supreme Court ruled in 1999 that "Sellers' agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. Sellers' agents owe their allegiance to the seller. Dual agency invites a conflict of interest. A buyer who relies on the seller's agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer."

Exclusive buyer agent firms chose this business model to eliminate the conflict of interest that exists when one firm attempts to represent both buyer and seller in the same transaction. It is the opinion of EBAs that it is not possible to faithfully represent clients with opposing interests simultaneously.
The EBA movement started in the late 1980s and by the early 1990s, as with the rise of buyer agency in general in U.S. states, firms came into being and a national trade association, the National Association of Exclusive Buyer Agents (NAEBA), was formed.

According to NAEBA, EBA firms offer service to buyers in all 50 states. Exclusive Buyer Agents are 100% loyal to Home Buyers 100% of the Time! Exclusive Buyers Agents are located in every state in the United States including: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The service structure for EBA real estate practitioners is to show buyers all possible listings from other cooperating brokers as well as all other sources, such as for sale by owners. Then, they assist the buyer with evaluation and negotiation and advocate in the buyer's best interests without restriction.
The National Association of Exclusive Buyer Agents (NAEBA) is pioneering a nationwide effort to give today's home-buying consumers the level of service they deserve and are increasingly demanding. NAEBA professional members firmly believe that home buyers have the same full and equal representation rights as sellers in any real estate transaction.

Before buying a home or real estate, NAEBA recommends buyers interview several real estate agents, asking each of them the following questions. Exclusive Buyers Agent can answer yes to these questions while other Real Estate agents and Realtors often can't.

· Do you spend 100% of your time representing Buyers?

· Will you guarantee that you will not represent any seller at any time while you are working for me?

· Do you, or the company you hang your license with, ever list properties for sale?

· Will you point out all negatives of each property you show me as well as the positive aspects, fully informing me so that I can make the best decision?

· Will you provide me data on comparable sales and help me formulate an offering price and negotiating strategy?

· Do you have a resources-lenders, home inspectors, insurance agents and other professionals that you can recommend to me?

· Will you tell me everything you can find out about the seller and their reasons for selling?

· Will you show me all the homes on the market that meet my expressed needs and desires including properties For Sale By Owner, foreclosures, etc?

· Will you guarantee that information I share with you will be kept confidential?

· Will you guarantee me your undivided loyalty?

· Will you guarantee me you will not try to change your relationship with me to "dual agency", "designated agent", transactional agent", or any other form of agency other than Exclusive Buyer Agent?

· Can you guarantee me all of your loyalty, 100% of your loyalty, all of the time, 100% of the time?

Optima Properties has been conducting business as Exclusive Buyer's Agents for over 20 years.  We do not take listings!  Please visit www.OptimaProperties.com for more information on how we serve buyers looking for property in South Florida and Western North Carolina/