• Why Hire a Real Estate Agent or Realtor? – Ok, we’re biased, but getting help from someone with intimate knowledge of the market is the smartest thing you can do.
• Does Buying a Rental as an Investment Make Sense? – For those of you thinking big, this may be a good time to get a deal on a rental investment.
• To Sell an Apartment, No Detail Is Too Small – You might need to dial down some of the numbers from this article in the New York Times, but it’s spot on. Paying attention to how your home shows goes a long way to selling at a better price.

“Where do we go from here?” That question from Alicia Keys’ song is on the minds of many Americans, as they wonder where home loan rates are headed after the recent negative news for Bonds.

Last week, Congress was busy at work on negotiations to extend the Bush-era tax cuts. That news kept a lid on any improvement for Bonds and home loan rates, due to the prospect of an ever-increasing deficit.

And adding to the troubles for Bonds and home loan rates last week was news that inflation is growing in China… and growing fast. How does that impact us? Remember, it’s a global economy, so Bond prices all over the world worsen on news of inflation, which is bad for home loan rates.

So the big question is: Will home loan rates go back down?

Although rates are still near historic lows, they have been headed up… and indications are that those unbelievably low home loan rates may be behind us. In fact, there are only a few things that would bring back the lows that we saw in early November:

• If the tax cut package doesn’t get passed, it would be very bad news for the economy and Stock market – but it would help interest rates.
• If the Fed’s recent round of Quantitative Easing falls on its face and doesn’t meet its mission of creating inflation, boosting Stock prices, lowering unemployment and creating consumer demand – Bond prices could make some gains as the threat of deflation reemerges. But this is a long shot.
• If the financial problems in Europe worsen significantly – which would drive investors into the safe haven of the US Bond market – it could help Bond prices, but probably only modestly.

Realistically, the chances of these events happening are unlikely – and in the end, rates may see some brief and fleeting improvements, but many experts believe they will likely continue to creep up over time. And when you include the stimulative action of extending the present tax rates and adding further cuts, it’s tough to see Bonds or home loan rates improving much.

The good news is that home loan rates are still extremely attractive and are still near historic lows for now. If you or someone you know has been thinking about purchasing or refinancing a home, NOW is the time to call or email to get started.

• You can get a good deal
• Mortgages are cheap
• You’ll get a better home than renting
• There is a lot to choose from

1. Not knowing your credit score
2. Buying a car before buying a house
3. Skimping on home inspection
4. Not using a lawyer
5. Not writing contingencies into a contract
6. Not budgeting for insurance

The nice thing about working with us is that we will walk you through the entire buying process to avoid these mistakes, but this list is good advice for those just thinking about buying a home.

[A] professional home inspector will be able to point out issues that might go unnoticed by someone who doesn’t know the ins and outs of inspecting. Today’s buyers are quick to point out flaws uncovered by the home inspectors they bring with them, particularly if the flaws could compromise health or safety. Buyers can use problems as bargaining chips, causing previously agreed upon prices to be lowered or even the cancellation of a deal. Inspections help uncover imperfections that often can be fixed easily and inexpensively, so it’s worth it to get your home inspected before you list it.

In Chicago at least, standard practice is for the buyer to hire an inspector once they have already signed a contract to buy a home. At that point though, an inspection can turn up issues that sellers may not have known about, and could have fixed for much less money and fewer headaches. It may be worth it to hire an inspector and resolve any issues before you even list your home.

The New York Times posted this useful checklist of things first time home buyers should think about before taking the plunge on a home. One of the more interesting points is that the old adage about stretching your budget to buy a first home–presumably because the appreciation in value would pay off in the future–isn’t always a good idea now that we’ve all learned home values can in fact decline, and rather quickly. The piece also includes helpful tips for planning expenses and adjusting expectations about your future income.

There is a fair amount of confusion about the new $8,000 tax credit available to qualifying first-time home buyers. In the past, first-time buyers could get a $7,500 credit, but it had to be repaid to the government over time. The new credit does not have to be repaid, and can be claimed on either your 2008 or 2009 tax return. For instance, if you bought a home for the first time in 2008, but have already filed your taxes without taking the credit, you can claim it on your 2009 returns. Essentially, it is a one-time gift from the government toward the purchase of your first home.

The video above from the Illinois Association of Realtors explains the tax credit in more detail, as does Mary Ellen Podmolik in her weekly column in the Chicago Tribune.