Issue Date: December 13, 2006

Ask Santa for Real Estate this Holiday

By Jody Zink
Licensed Realtor in Ohio & Michigan

The media keeps talking about electronic toys and Play Station 3, showing images of die-hards camping out in freezing temps to get them. But, with all due respect... real estate is real what they'd really like. Watch E! Hollywood Story, and they don't talk about Nicole Kidman's and Oprah's gaming systems, it's their real estate. In the Charlie Brown Christmas special, Lucy says she wants real estate. In her Santa Baby song, Eartha Kitt asks Santa Cutie to fill her stocking with a duplex. It's on my list, too.

With such a busy schedule and tight deadlines, Santa Claus is one of the most elusive people in the world. It's not too early to give him your list. Real estate should be close to the top. Here are a few reasons why:

Interest Rates. They've remained stable and have even trended downward just a bit. Mortgage rates around 6 and 7 percent sound like a bargain when you look at history. Seasoned agents talk about the tough economic times back in the early 80's, when rates were a whopping 16 percent. That's when business was so slow that they'd pick up the phone checking for dial tone. The cost of borrowing money is still very affordable. Take advantage of it.

Large Inventory and Variety. It's still a buyers market. In the past 18 months, we've reached record levels of homes listed. If sellers want to sell, they must compete. Price is one sure way to do that. The saturated market has normalized a bit with the weather change. Sellers who don't have to sell often take homes off the market for the holidays. But those sellers with signs still out front are likely serious contenders, often willing to bargain this time of year.

Foreclosures. As the holidays get closer, the number of foreclosures across the country remain at record-breaking levels. That includes Ohio and Michigan. Ask your Realtor to help you find homes that are in foreclosure. If you're considering taking advantage of these opportunities, keep an eye on the market now so you can recognize a great buy when you see one.

Down Payment Assistance. Because of the lack of affordable housing, local governments, including the city of Toledo are offering down payment assistance to people who need some help to purchase a home. Your Realtor can help you with this. Programs include those for Owner-Occupied Rehabilitation and the Lead- Based Paint Hazard Control program.

Seller Concessions. Sellers are sometimes willing to give a little to make a sale and it has become more common in the past year. With the lender's approval, the seller can contribute funds to the buyer to help cover closing costs, acquisition fees and prepaid items. The buyer benefits by bringing less cash (or sometimes no cash) to the closing table. The seller secures a buyer and encourages a quicker sale. If your Realtor suggests a proposition that includes a “seller concession,” consider it. Your agent is being creative and will guide you through the process.

Prices have fallen and stabilized. Contracts for home sales in August are up 4.3 percent, according to the Pending Home Sale Index and the National Association of Realtors. The outlook is for home prices to increase next year.

The current market offers a big carrot. By the time the Easter Bunny jumps on it, Santa might have already gotten a bargain. Strike while the iron's hot.

Jody Zink is a licensed REALTOR in Ohio and Michigan with the Loss Realty Group. Her column appears every other week in the Toledo Free Press. She can be reached at jody@jodyzinkrealtor.com or 419-725-1881.