Home ownership in the Twin Cities is above the national average and also up from 2012. For the second quarter in 2013, the home ownership rate in the Twin Cities was 73.1%  up from 72.3% in 2012 but down from its peak of 76.5% in 2005. The national home ownership average for the second quarter in 2013 was 65%, in 2012 it was 65.5% and in 2004 it was at 69%. The home ownership rate is expected to fluctuate around a point much lower than the 2005 peak which reflects a healthier balance between owning and renting.

*These numbers are from the National Association of Realtors second quarter local market report.

The best month to buy a home is January. Why? There are less buyers out looking because of the weather. Sellers are more likely to sell because buyers are scarce and they often receive all their holiday bills in January, and they obviously need to sell or they wouldn’t normally list their home in January.

The best time to sell a home is in the spring. Why? The weather improves, the buyers come out of the woodwork! 60% of all moves occur in the summer which means the buyers wrote their purchase agreement in the spring.

The best day to list your home is a Thursday. Why? Because it gives buyers time to see it come online and then schedule showings over the weekend.

The first Tuesday of the month is the best day to make an offer on a home. Why? The seller has just paid the mortgage on the home and if he really wants to move he is not happy about paying for a home he no longer wants, and if no one has made an offer from the weekend showings by Tuesday, a bit of panic will set in.

Pricing your home – don’t end it in a zero. Why? Studies show that people perceive an exact price, such as $179,327, as lower than rounded ones, such as $170,000, even when the rounded prices are actually lower. Real-life sales show that one zero at the end of an asking price lowers the final sale price by .72% and two zeros lower it by .73%. That may not sound like much, but it can add up to thousands of dollars.

The trend these days is to get “a deal” and buy the cheapest house when you buy, but is that the right mind set? How about stretching your finances to buy an expensive home? What do you need to think about before you decide how much to spend?

What are some reasons to buy a more expensive home?

• You haven’t really figured out what you can afford and you simply go with the top number your banker gives you
• You lived in a cramped place now, and you want to move into a house where you can grow and stay in forever so you buy a home much bigger than what you need
• You are trying to compete with the homes of your family members and friends that are pretty well off financially
• You feel pressured to buy an expensive home

Why might I be a good idea to stretch your finances and not buy the cheapest home?

• The cheap home needs lots of expensive repairs like a roof and/or siding
• The cheap home is not energy efficient
• It is in such poor condition, making repairs is not worth the money or effort
• It may not be in a desirable location
• You won’t be able to get your money back when you sell it

In the end a mix is probably the best bet. No matter what house you buy, it will be a big expense, so make sure that the house you choose is something you can afford over the years, not just the day you buy it – meaning, take into consideration repairs, maintenance and utilities over time. Sometimes, the cheapest house will end up being the most expensive in the long run!

There are a lot of reasons to buy a home of your own.  Many people are still on the fence about buying after the housing market crash.  For most people, buying is a good option.  Here are a few reasons why:

• Interest rates on mortgages are at record lows – if you want to borrow a lot of money for a home, there is no better time to do it!
• A mortgage is kind of like a savings plan.  You pay in every month and when you go to sell years down the road you get your money back out. Granted with the housing crisis this did not pan out but now with the low prices, you won’t be going upside down.
• Home prices are really low, the inventory is dwindling causing some prices to start to rise but the home prices are still quite low.
• You can get some good tax credits and you know what you will be paying to live there for the amount of time your mortgage is locked in – no rent hikes!
• If you like a great credit score, pay your bills on time and your mortgage – mortgages that are paid on time help increase your score.

There are many more reasons to buy a home but these are a few you may not think of right off the bat!