‘MoneyTrack’ co-host has advice for today’s homebuyers, sellers

KRUEGER Whether you’re in the market to buy a home or need to sell the one you have, chances are you’re confused by conflicting reports and statistics coming at you from national, statewide, regional and local sources.

Pam Krueger, creator and co-host of PBS’ “MoneyTrack” finance series, reminds us that because real estate is “super local,” we shouldn’t let the national numbers wreak havoc on our emotions. Listen to what the local experts have to say, she advises, and work with a real estate agent who not only understands your community but can drill the numbers down to street level.

What other tips does Ms. Krueger share about today’s market?

Don’t even think about buying if your financials are not in order, she says, urging, “Don’t reach for it if you know it’s not reachable.”

Buyers who have a credit score over 700 are in the driver’s seat, but no matter what their situation, she encourages buyers to establish a relationship with a good local or regional bank.

Southwest Florida has a bank on nearly every street corner, but as Ms. Krueger warns, some have been taken over, others are on the watch list, and still more are in trouble. Amidst all the chaos, there are banks that have steered clear of all the credit mess. “Find one with a really strong balance sheet and hitch your wagon to it,” she says.

There are many banks that want to give loans they just can’t get the word out fast enough. Once you find one, make sure you get pre-qualified. “We are different borrowers than we were five years ago,” she says. “We’ve learned because we’ve been burned.”

Yes, today’s buyers are more cautious, but Ms. Krueger doesn’t want their fears to hold them back from taking advantage of the deals that are out there. Low interest rates, an extended $8,000 tax credit and rock bottom prices make it the perfect storm for first-time homebuyers who qualify.

“There’s a window right here, right now,” she says. “Tax credits will go away and inventory will be sopped up.”

Just be aware that even if you’re looking at foreclosures, buyers must stay in a home for at least five years to make the purchase price worthwhile. The days of “day trading” houses have gone out of style, as have the days of 15-30 percent appreciation. Now 3-6 percent appreciation will be more likely.

What about if you have to sell your home? If it’s priced below $500,000, you’ll want to be particular in choosing an agent who deals with that price point, she says. If it falls between $500,000 and $1.2 million, which is the portion of the Southwest Florida market that just isn’t moving, you’ll be frustrated and you have to be prepared to swallow your pride, she adds.

Both buyers and sellers have to be “super sharp with their tools and they have to pick the right people,” Ms. Krueger says. But for buyers especially, she stresses, now couldn’t be a more wonderful time to be home shopping. 