Register Real Estate Advisors

Lately, many of my sellers want to know if it makes sense to move up right now. Answer these questions below to help you decide whether moving up makes sense for you.

1. Have you lived in your home for at least 5 years so you can qualify for the $6,500 move up tax credit?
2. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
3. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
4. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
5. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
6. How is the home market? If it’s good, you may get top dollar for your home.
7. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

WASHINGTON (Dallas Morning News, Center for Economic and Policy Research) – A recent study predicts homeowners in many Texas Metropolitan Statistical Areas (MSAs) will see an increase in their home equity between now and 2012.

The study, conducted by the Center for Economic and Policy Research and the National Low Income Housing Coalition, is based on purchases of homes priced at 75 percent of the median price and financed at between 6 and 8 percent interest.

By 2012, the purchaser of a mid-priced home in the Houston, Dallas–Fort Worth and San Antonio MSAs will have, on average, more than $80,000 in equity in the house, the researchers predict.

Owners of mid-priced homes in the Austin–Round Rock MSA will see an equity price tag of just over $61,000.

El Paso mid-priced homes’ equity is predicted to be $49,000.

McAllen-Edinburg-Mission is predicted to fare the best in Texas, with just over $90,000 in home equity of mid-priced homes.

The positive outlook for Texas home equity growth comes as no surprise to Dr. Mark Dotzour, chief economist with the Real Estate Center at Texas A&M University.

“It confirms that there never was a price bubble in any Texas city, and, consequently, the likelihood of equity increase is higher,” Dotzour said. “I find it interesting that their policy decision is to recommend that government allows prices to continue to fall.”

Although Foreclosures were up this September compared to the last, RealtyTrac predicts that the market will begin to stabilize as we move into 2009.  However, it is alarming that by the first quarter of the new year one quarter to one-third of all homes for sale will be bank-owned properties.  So we may continue to see prices being lowered even though the market is beginning to stabilize.  There is currently a bargain days sale going on nationwide for consumers with money to invest.  As a Realtor, I can help you find the investment property that meets your financial goals.  Over 60% of U.S. savings is currently invested in home equity.  Many home owners are able to supplement their income with rental property while taking advantage of valuable tax incentives.