So, the other day Buddy was running around the D.C. area to check out the home buying activity there.  While he was in the area, he decided to check in with the U.S. Department of Housing and see if they had any good information he could share.

Unfortunately, they weren’t expecting Buddy, so when he came barreling down the hallways of the HUD building, people were understanably upset (it didn’t help that he had his tug-of-war toy in his mouth and proceeded to send tables, chairs and even people flying in his excitement).

Luckily, before they could kick Buddy out, he found a great article about buying a home on the HUD website.  The article broke the process down into 9 basic steps.  You can read more in detail at the link above, but Buddy can give you the bare bones of it.

1. Figure out what you can afford - In years past people were buying outside their means, which is why there are so many defaulting on loans right now.
2. Know your legal rights when it comes to buying - A real estate agent can help you navigate the legal waters.
3. Shop around for a loan - Make sure you are getting the best deal you can.
4. Learn about home buying programs - And see if you’re eligible for any help!
5. Shop around for a home - Remember, don’t go out of your price league.
6. Make an offer - If you use a buyer agent, you’ll have someone who knows all the ins and outs of negotiation working in your interest.
7. Get a home inspection - This is to make sure you’re not buying a lemon whose roof will collapse the second you actually sign the papers!
8. Shop for homeowners insurance - Again, make sure you’re getting the best deal.
9. Sign the papers - In other words, go to settlement and become the owner of a new home!

And there you have it - the 9 basic steps to buying a home.  Of course, it’s not as easy as it sounds, what with the contracts, legal advice and financial backing you need.  Do yourself a favor, and use a real estate professional in the process, because in the long run it will save you time and money.

Now, Buddy has to go write an apology letter to the folks at HUD.

We’re all getting pretty tired of the doom and gloom reporting on the economy and the real estate marketing specifically.  The funny thing is, with all the digging Buddy has been doing, he’s found a few facts that state quite the contrary.

Of course, you would assume that if the economy is going into a recession (which, for all intents and purposes, it seems to be) that the housing market would be going right down the tubes along with it.  The thing is…no matter how bad the economy gets, people will still need homes!  And a lot of indicators are pointing toward the fact that the market has already passed it’s lowest points.

For one thing, the Home Sales Index has reached it’s highest level in more than a year - which means more people are buying and selling homes!  Also, there’s been a 7.4% sales jump in the latest month.

Many cities/townships are offering deals to buyers willing to purchase more delapidated housing, or housing that is in a less than desireable area.

For example, in the Lancaster area of Pennsylvania, city townhomes are selling for between $50,000 to $75,000 AND the city agrees to give buyers $50-60,000 to fix the home up.  Part of the stipulation is to fix up the face of the house - paint he brick, put new siding up, etc.  So basically, you buy a home for a ridiculously low amount AND you get money from the local government to fix it up!  If the neighborhood isn’t where you want to live, it’s still a great opportunity for house flipping or renting.

So whether you want to believe the hype or not, Buddy’s been all over the country and he knows better than most that if you do enough research, you’re still going to find great deals on your dream home.  In fact, more so now than you would have 3 or 4 years ago when the price of homes skyrocketed!

Buddy has noticed lately that some people don’t want to use a real estate professional during the home buying process.  Apparently, many people are under the misconception that to hire an agent would cost them money.

And because of that, they’re tackling home buying on their own, instead of with an experienced professional who can explain the process step by step and make sure they’re not being taken advantage of by the seller of the home, or the seller’s real estate agent.

Attention potential home buyers: it doesn’t cost you ANYTHING to hire a buyer agent and sign a Buyer’s Agency Agreement.

Yes, signing contracts can be unnerving - but unless you sign a Buyer’s Agency Agreement with a real estate agent, by law they must hold the seller’s interests above your own.  Meaning they’re not going to be able to negotiate a lower price, or give you some inside information about the home that may affect the seller, etc.

However, as soon as you sign an agreement with an agent, they must hold your interests above all others, and are free to do anything they can to get you the best deal on the home you want to buy.

Not only that, but your buyer agent is actually compensated by the seller agent’s commission.  That means you’ve basically hired yourself a legal advocate for no extra cost!

So next time you think you want to go your own way and buy a home wih no professional help, think again!  Hiring a Buyer Agent can easily save you money, time and stress in the long run!

That Buddy…he’s always finding great stuff while he’s nosing around!  Bankrate.com has a handy tool on their site that allows you to shop and compare mortgage rates in your area (or any area you want)!  A great little tool if you’re looking to buy a home, or are just curious to see how the mortgage industry is doing.

The good news is, mortgage rates are still below 6%, and banks aren’t quite as stingy with their loans as the media would have you believe, especially since the Home Sales Index is rising! There’s been a 7.4% jump in home sales since last month and applications for conventional mortgages jumped by 3% last week.  New FHA applications were up nearly 10% as well, according to a national survey by the Mortgage Bankers’ Association.

Thirty year fixed rate loans fell to 5.9% while 15-year fixed rate loans fell to 5.7%.  Now that the market has leveled out, home values will start to increase again, so if you’re going to buy, the time is now!

Over the next couple weeks Buddy will be on the lookout for the hottest spots in the U.S. to buy a home.

Buddy is still out and about doing everything he can to sniff out great deals and perfect homes for buyers in need.  He’s been a little bit disheartened by all the homes going into foreclosure, because, well, Buddy is a loveable dog and hates to see people unhappy!

However, he knows that it’s not so much the real estate market that is cause of the foreclosures, but the fact that during the housing bubble a couple years ago, many buyers purchased homes outside of their means and borrowed way too much money to get in the homes on bad advice from loan officers and mortgage companies.  Now they can’t make interest or principal payments and selling isn’t always an option because

1. They may not be able to sell high enough to cover their outstanding debt
2. The tightening of lending standards means not everyone can get a loan so fewer buyers are searching

The fact of the matter is, it is still a GREAT time to buy in most areas, as long as you are buying WITHIN YOUR MEANS.  And thanks to the national median home value dropping by about 7%, you may be able to get a bigger home then you could normally afford.  And while the fact that foreclosures are so prevalent is unfortunate, it also allows others interested in buying a home to get good deals so they DON’T find themselves in the same situation 5 years from now.

While the NATIONAL value may be dropping slightly, many individual regions are still seeing definite appreciation in home values. For example, while the Midwest saw a drop in the winter months, summer and fall has seen spike in home appreciation in the area.  So…if you loved WIzard of OZ (Buddy is a fan of ToTo) then Buddy would suggest checking out Kansas and the surrounding states.

Well, Buddy has been a busy, busy boy lately, trying to keep up with the changes in the market.  One thing he does know - while people are complaining about the bursting of the real estate bubble, he’s still finding great deals for buyers!

Most home values are still increasing, just not as quickly as they did in years past.  With mortgage rates still pretty fair, this is a GREAT time for buyers to cash in on homes they may not have been able to afford in the past.

And now, with the government bailout legislation under consideration, homeowners in a bit of a bind may soon see a light at the end of the tunnel.

But for now, if you’re listening to all the hype about the real estate market, rest assured, Buddy knows better!  He gets the inside scoop from all his real estate pals and the bottom line is that if you can find a good agent to steer you right, now is a great time to get the house of your dreams at a low price.

One place to keep an eye on: Fort Collins, Colorado.  With a median home price of $207,739 and a population of 129,400 Fort Collins is an affordable place to live with big city fun and a small town atmosphere.  In fact, CNN Money Magazine named Fort Collins the 2nd best place to live in the United States.  We get the feeling we may have to drag Buddy out of that area!

Buddy just uncovered a nice, growing area down south…Hattiesburg, MS!   The area continues to grow, no small thanks to the medical industry, universities and Camp Shelby.

Buddy also wants to remind you to think twice before using a national lender for your mortgage.    Hattiesburg real estate agent DeLois Smith had these recent words of advice in an article in the Hattiesburg American:    “If you deal with a local lender with a good reputation, they will be there to help with your financial needs in the long term.”

Good job, Buddy!

Buddy took a break from his brief vacation at the La Brea Tar Pits to read the LA Times and saw some great news to share with all of you searching for a home…

Home prices fell 3.2% nationwide in the second quarter of 2007.

Now just tell Buddy where you want him to fetch a new home for you.

Whew!  It took a lot of digging, but Buddy wants you to know that St. Louis, MO is a nice area to consider for a move.  The average price of homes there has dropped about $8,000 since January.   Across the state there’s Liberty, MO (a suburb of Kansas City), which made CNN/Money’s Top 100 list of the best places to live in the US.

Buddy found a nice area to look at in Tonawanda, NY.   Tonawanda ranked high on Money magazine’s list of the top 25 US towns where homes are most affordable.   You can find a nice 3 bedroom, 2 bath ranch house for around $119,000…and that’s one of the more expensive homes.   Good job, Buddy!