Two weeks ago, I was fortunate enough lecture LIVE with Suze Orman at the Road to Person Wealth Conference at Kean University in New Jersey. It was fantastic group of attendees. All wonderful people with lots of questions about what to do in today’s volatile Real Estate Market.Both Suze Orman and I gave 1 hour lectures. Afterwards we each signed copies of our books. Suze is amazing, and refused to leave until she had a chance to either sign a book or connect personally with each and every person waiting in line.

 The big question at the conference was: What is happening in the market and where is it headed the next few years? I connected with Suze on this as well, and we are in pretty close agreement. So -  Here’s my ball park projection. 

We are looking at 3 more years of nationally overall flat markets. But it’s all about location…So – some markets especially the Sand states (FL, NV, AZ) MI, and WI are going to see more softening as the rest of the foreclosures hit the market and inventories are still high. However, some markets – metropolitan and higher end markets are starting to price stabilize. Stabilize does NOT mean big appreciation – it means less decline, no more decline, and some pockets of small appreciation.

After the 3 years, we should start to see some slow normal value appreciation. Thus, it may be a full ten years before we are back to a National healthily market.

Will home prices hit their price peaks from the frenzy back in 2006 – 2007?  Not for a very long time, as there are now hopefully many more safeguards in place to prevent that kind of artificial run up.

For more information, tips and real estate advise or to order one of my books, please go to my website www.MichaelCorbett.com

Two weeks ago, I was fortunate enough lecture LIVE with Suze Orman at the Road to Person Wealth Conference at Kean University in New Jersey. It was fantastic group of attendees. All wonderful people with lots of questions about what to do in today’s volatile Real Estate Market.

Both Suze Orman and I gave 1 hour lectures. Afterwards we each signed copies of our books. Suze is amazing, and refused to leave until she had a chance to either sign a book or connect personally with each and every person waiting in line.

 The big question at the conference was: What is happening in the market and where is it headed the next few years? I connected with Suze on this as well, and we are in pretty close agreement. So -  Here’s my ball park projection. 

We are looking at 3 more years of nationally overall flat markets. But it’s all about location…

So – some markets especially the Sand states (FL, NV, AZ) MI, and WI are going to see more softening as the rest of the foreclosures hit the market and inventories are still high. However, some markets – metropolitan and higher end markets are starting to price stabilize. Stabilize does NOT mean big appreciation – it means less decline, no more decline, and some pockets of small appreciation.

After the 3 years, we should start to see some slow normal value appreciation. Thus, it may be a full ten years before we are back to a National healthily market.

Will home prices hit their price peaks from the frenzy back in 2006 – 2007? Not for a very long time, as there are now hopefully many more safeguards in place to prevent that kind of artificial run up.

For more information, tips and real estate advise or to order one of my books, please go to my website www.MichaelCorbett.com

Well, the fact that this reader, or any reader, thinks 20 percent down is “unrealistic” is exactly the reason this book is a must-read – and such an important book for these times.

Now don’t shoot the messenger here but, buying homes with less than 20 percent down is what put so many homeowners into horrible financial positions – houses they ultimately could not afford leading to short sales and foreclosures. It is “unrealistic” for anyone in today’s market to think they should buy a house if they have not yet been able to save up enough for a sizable down payment.

As I explain in the book, you do have options. There are ways to bolster your down payment savings. You can shop for less expensive houses that will match your budget and the money you have saved. Or you can simply wait and continue saving.

Among the many reasons to buy a home you can afford with 20% down is that is simply will cost you less, MUCH less in the long run.

• A $417,00 home @ 5.75% interest rate  with 3.5% down  (402,405 loan amount)

The amount of interest paid over the 30 years of the loan? — $447,421

(Plus you will have to pay PMI until you can remove midway through the loan.

Thus the real figure total of interest and PMI would be closer to $542,856

Vs:

• The same house with the same interest rate and 20% down  (333,600 loan amount)

The total amount of interest paid over the 30 years of the loan?  -$369,655

• Bottom line – You’ll save $173,201 in interest!!!

Buying a home is not an automatic entitlement anymore.  And buying a home with no money down, or little money down is foolish and unsafe these days. If anyone is looking at homes that are out of reach of a 20% down payment, then they need to be more realistic and look at lower priced homes. Homeowners need to protect themselves by not over extending themselves. And remember, just because a bank says you can buy a house for little or no money down–doesn’t mean you should!  Protect yourself, because no one else will. Doing anything other than that? Now that’s unrealistic!

Before You Buy Tip – Shop High to Buy Low!

Today, as prices are lower and sellers are sometimes getting anxious, always shop 10 percent higher than you really want to spend. Start at the top of your price range. If you feel you can afford a home that is $400,000 then look at homes priced at $440,000. The reasoning is that in a cold or buyer’s market you will probably end up paying slightly under the asking price. There may be room to negotiate down to bring it into your price range. So shop approximately 10 percent higher than what you are planning to pay, and you will still manage to stay within your budget.

For more homebuying tips: pick up my newest best seller Before You Buy! the Homebuyer’s Handbook for Today’s Market!

Before You Buy Tip – Start Small  - Win Big!— Once you begin shopping you’ll probably realize that the house you want may not match the reality of what you can afford. Especially if you plan to buy smart – by putting 20% down.  You’ll need to match your dream home to your budget—the starter home. You have to remember that “starter homes” or “entry-level homes” exist for a reason. Embrace the concept that the first house or condo you purchase is not going to be the place you’ll live in for the rest of your life. But that’s okay. The good news is that if you buy smart now, you’re able to begin the process of gaining equity and appreciation. Coupled with salary increases and smart savings plans, the opportunity to move up exists. And not only are smaller houses more affordable but in today’s new market, downsizing is in vogue smaller homes are going to be a hot commodity in the coming years. So start Small and win Big!

For more tips on how to buy safe sane and shirt in Today’s Market – pick up Before You Buy: The Home Buyer’s Handbook for Today’s Market!

It’s amazing to be in LA and working at Extra on Monday then fly cross country be on set Tuesday am at The View in NYC – as Whoopi and Joy are back stage – and Kirstie Alley and Liv Tyler are in the dressing rooms across from me. I go on set to shoot my segment and, then, within a half hour I am whisked back to the airport to be back in LA by 6:00 pm and home for dinner! It is a whirlwind 24 hours.

The best part is that I was able to get some fantastic and important home buying information out to people. Here is what they wrote on The View website:

On this week’s The View, Real Estate expert Michael Corbett , author of Best selling Before You Buy was here to answer YOUR questions about the real estate market. Below are some tips, answers and advice he shared:

Will Home Prices Go Up?

Michael noted that, while nationally the real estate market is still soft, real estate is ultimately a local business – so you should be concerned with the home prices in your own city/community.

Certain states, like Florida and California, Nevada, home prices will remain soft  for a while. But according to last week’s Coldwell Banker Home Listing Report in many cities – like New York, LA and Dallas – home prices have stabilized, and in some communities (Jackson, MS and Charlotte, NC for instance) real estate prices are going up.

How Much Money Should You Have Upfront for a Home Purchase?

Michael advises at least 20%. For example, with a $350,000 home, he advises that one should put aside $80,000. This would cover the 20% down payment ($70,000), closing costs ($1,800), points on your loan ($2,900) and other misc. expenditures that pop up.

What is the Difference between a Foreclosure and a Short Sale?

Foreclosure = when a homeowner has to stop making payments on the mortgage, so the bank takes the house back.

Short Sale = when a homeowner trying to sell the house asks the bank to “eat” money because they must sell the house for less than it’s worth. For example, a home you owe $350,000 on but is now worth $300,000 forces the bank to eat $50,000.

How to Buy another Home after Foreclosure

Michael gives some simple yet important tips to help get yourself financially back in shape to purchase another home:

* Never max out a credit card
* Never be late or miss a payment
* Keep a consistent employment record
* Save up for a significant down payment

 For more real estate tips get my latest best-selling book: Before You Buy; The Homebuyer’s Handbook for Today’s Market or go to my website; www.MichaelCorbett.com

Buying in a transitional neighborhood for your first house allows you to get into the market relatively cheaply and build some equity. Your house gains value as the neighborhood improves. It may not be your dream location, or the seaside beach community you want to retire to, but as I’ve said, over time you will build even more equity and then move on at some point.

But how to find that prefect diamond in the rough?  Here’s two ways:

1.  Wake Up and Smell the Coffee.  Has a Starbucks just opened on the corner or maybe a Whole Foods Market? These are all good signs that a neighborhood is on the upswing. You can bet that big chains like Starbucks spend a lot of money and time analyzing neighborhood potential before they open up a new store. So go ahead, tap into their market research and be their neighbor.

2. One Click for a Trulia.com Crime Check . It may look like an improving area.  But you want to make sure your up-and-coming  block, street and area is safe  and not the center of  a serious crime waves.   Go to http://www.trulia.com/crime/#  Just plug in your city, zoom into to your potential block and get a pretty comprehensive look at what has been happening lately crime wise..  If it looks quiet and surrounded by or adjacent to other low crime areas… you make have found yourself a deal!

For more tips and insights about how to buy Safe, Sane and Smart in Today’s Market.  Order my newest best seller…Before You Buy..The Homebuyer’s Handbook for Today’s Market!

Real estate is in the news a lot this week. Several new reports have come out. Some indicating that prices may be going lower.  But yet, some are touting stabilizing markets and even a slight increase in buyer activity and sales.

How is this possible all at once?  Well, it’s a question I am asked all the time.  In fact I just did an interview with Pasadena Magazine this afternoon discussing exactly that.  As I explained, the most important consideration when looking at the big national Real Estate news stories is that they are in fact just that…National.  The key to unlocking real estate trends is to remember that real estate is Local. As Jim Gillespie, Coldwell Banker CEO likes to say: “If you are taking a vacation in Las Vegas, you will want to know what the temperature is going to be in Vegas…not the average temperature of the entire country”   

So in other words…Yes there can be reports that prices may still show some downward movement, and reports indicating that  prices are stabilizing and looking toward the upswing….both at the same time.  It’s all about which local market you are analyzing. 

So before you jump onto any bandwagon, or make decisions about buying or selling based on a news article flashed across the headlines… find out if it actually applies to YOUR town!  It could mean the difference to making a smart move at just the right time, or missing the proverbial house boat.

For more tips and insights about how to buy Safe, Sane and Smart in Today’s Market order my newest best seller…Before You Buy..The Homebuyer’s Handbook for Today’s Market!

Then, on Wednesday, I flew off to NYC to do my real estate segment on The View.  So much fun. I selected 8 properties priced  from $79,000 to 22 million and made the ladies guess “What’s It Worth”.  Hopefully you got to see it, and if you did, please go The View hyperlink above and write a comment saying you LOVED it! Thanks.

I was also able to showcase the wonderful Home Alone house.  Yes, the actual house that was used in the movie Home Alone just came on the market in Winnetka, right outside of Chicago– A great Coldwell Banker Previews Listing!

This week’s tip from Before You Buy! —How Much Does it Really Cost to Buy a Home?

#1: Know how much buying your new house really costs. Your home purchasing costs don’t stop with the down payment. You have to factor in the closing costs and all the expenses incurred in buying the house; appraisal fees, buyer’s broker fees, loan application fees, loan broker fees, structural inspection fees, and so on. Those are the “upfront” costs. Then there are the “ongoing” costs, which includes property taxes, homeowner’s insurance, hazard insurance, condo, homeowner’s association fees, and moving expenses. You don’t want your new home-owning experience to start by playing catch-up. Start saving up some extra cash now.

For more tips and guidelines, check out my book “Before You Buy!” on Amazon.com.

This month, the renowned real estate author and host of Extra’s popular program Mansions & Millionaires published a new book that speaks to some of the issues facing interested buyers in the Great Recession.

Michael Corbett garnered acclaim with his first two publishing efforts, Find It, Fix It, Flip It! (2006) and Ready, Set, Sold! (2007), released during the height of last decade’s housing market boom.

His new work, Before You Buy! The Homebuyer’s Handbook For Today’s Market, addresses the myriad ways in which the real estate game has changed. Today’s customers navigate a climate besieged with declining home values, foreclosures and a credit crunch that has drastically reduced the number of qualified buyers.

These new challenges often act as the bogeyman to potential investors, many of whom have come to believe that modern home ownership is associated with far too many risks and hassles. However, in his book, Corbett asserts that with the right information, now is exactly the right time to make a move:

“There’s no better time than now to buy a home. The home buying rules have changed and the key to success is having the information and advice needed to buy safe, sane and smart.”

“Homebuyers have seen home values make enormous swings both upward and downward over the past 10 years,” said Corbett. “Even with historic low interest rates, the thought of jumping into homeownership today can be terrifying for some people. As seen from the last decade of tumbling values and foreclosures, many homebuyers made critical missteps and decisions. Falling prey to hype and misinformation, they overpaid, overspent and bought homes they ultimately could not afford.”

But according to Corbett, history does not have to repeat itself. Coldwell Banker Real Estate Chief Executive Officer Jim Gillespie, who wrote the foreword for the book, echoes the author’s opinion:

“I am proud to have collaborated with Michael on this book, and I appreciate his passion for helping consumers manage through the complexities of the home buying and selling process to make the smartest decisions,” said Gillespie. “We believe expert real estate agents who utilize the proper tools are instrumental in a homebuyer’s success, but there is no denying that today’s consumer is empowered to enter the process more prepared.

“Mortgage rates are at historic lows, so now is a great time to buy to avoid the uncertainty of these rates increasing in the future,” Gillespie continued. “Michael does an exceptional job in breaking down the various phases buyers go through so that they can make excellent lifestyle and financial decisions.”