Discover New Ways to Save Money & Protect Home

Home owners faced with buying and selling a home have more options than in the past. It used to be the same old thing all the time. The buyer would find a home they like and purchase it, then get a mortgage, and move into the home. When it came time to sell the home they would find a real estate agent, who'd sell their home and make 5-7 % commission. While, these same scenarios still exists there are new ways to buy and sell a home, which are real cost savers!

Do-it-yourself-real-estate can save you money.

Now you can sell a home yourself with do-it-yourself-real-estate agencies such as: ForSaleByOwner.com or Owners.com. Some companies like Foxtons and Ziprealty offer discounted commission structures to save the home owner money.

When it comes to getting a loan there are new choices as well. It's not just a trip to the bank anymore. You don't have to be stuck with a loan that's not right for you. There is no need to settle for a 30-year fixed rate if that's not what you want.

You can work with an independent mortgage broker and find a loan based on your individual parameters or you can turn to online mortgage firms like: LendingTree.com and Eloan.com. There are so many different lending arrangements to consider including: interest-only mortgages, adjustable rate loans, mortgages with no or low-down-payments, and hybrid mortgages.

Know the kind of loan you want ahead of time

Determine if you want a loan with minimal cash down and a low monthly expense, or a loan designed so you can quickly turn equity into cash.

In today's market with interest rates rising variable-rate home loans aren't a good deal.

Watch out for offers that sound too good to be true.

With the increased options in home buying and selling the market is now very competitive, this is to your advantage. However, be leery of outrageous claims and repairs that aren't warranted. Protect your investment and don't let your dream home turn into a money pit.

How to make this new real estate market work to your advantage?

In most parts of the country the prices of real estate are sky rocketing. Despite talk about the real estate boom leveling off, it hasn't. According to the Office of Federal Housing Enterprise, prices increased nationwide by more than 11 percent. This is direct contrast to the Consumer Price Index, which grew by 3.6 percent. States with slower real estate markets like: Texas, Indiana, Ohio still experienced an increase of 4 percent.

Is it a time to buy?

The real-estate market can be unpredictable like the stock market. If you have the means to buy a house than do so. However, the cost of the home should not be greater than 28 to 31 percent of your income including: taxes, interest, principal, and insurance.

You can reduce the chance of paying more than necessary if you live in the same house for five to seven years. Experts say there is a greater chance of recovering from any market downturn the longer you stay in a home.

What if the market is slow in your area?

Consider selling the home and down-sizing. Chances are you'll get a good rate on a loan now that more mortgage brokers handle loans than banks. These folks know you'll be shopping around and will price the loan at the most competitive rate to increase their commission base.

Decide if you want a real estate agent or a buyer's agent

According to a recent survey from the National Association of Realtors, 90 percent of home buyers use a real-estate agent to help them find a home. Agents only make the commission from the seller when a home is sold, even though they show prospective buyers the homes. A new trend that's emerged in the past 10 years is a "buyer's agent". These agents act on the buyers behalf and handle the terms of the sale, contract issues, and price negotiations.