NEW RULES OF THE GAME TO BUY A HOME ………

(1)  You’re buying your 1st home.  OLD RULE:  mortgage rates are so low you need only a small payment.  NEW RULE:  put down as much as you can like 20%.  The biggest barrier today is 1st time home buyers NOT saving enough for a down payment.  (2)  You’re buying a bigger home.  OLD RULE:  don’t sell a home for less than you bought it for – period.  NEW RULE:  do your math.  Your $100,000 home is now worth $75,000.  You want to buy a $200,000 house that is now $150,000.  That means taking a $25,000 hit on the sale of our present house, but a $50,000 gain on the 2nd home.  With interest rates LOW, you will come out better in years to come.  (3)  You’re selling a home.  OLD RULE:  once the market bottoms, hold out as long as you can to net the most price appreciation.  NEW RULE:  put your home on the market in the spring.  If you really want to sell, spring is the season.  Sale prices begin to drop as the season wears on and in the fall and winter you may get less money, even if prices go up.  Article written by Kate Rockwood and in the Sunday, April 14, 2013 PARADE in the Tyler Paper.  Many more details in the 5 page article.