"Buy the lowest priced house in the highest priced neighborhood you can afford."

It's smart to buy at the low end of a desirable neighborhood because your less-expensive home will appreciate on the coattails of your neighbors' sought-after homes. Buying low also gives you some room to fix-up or add-on without exceeding average prices in the area. If you find a home that's selling under market, be sure to find out why. First, get a professional inspection to make sure nothing major is wrong. Next, check the location. If it's next to a high school, for example, think twice about the traffic and noise next door. If you're lucky, the home may be sound and well-located but perhaps in less-than-optimal condition--something you can put right with "sweat equity." The home could also be priced lower than average because it is smaller than average or the sellers are under pressure to move quickly.

Equity Matters--How Much Of Your Home Do You Own Now?

Homeowners facing possible foreclosure are especially vulnerable to the various schemes employed by today's con artists. Don't fall prey to their promises. The best first step is to call your lender at once if you think you may miss your mortgage payment.Are you thinking about refinancing your home or selling it and buying another one? Whether you are able to do either may depend on how much equity you have in your home. Lenders today are requiring more equity for refinancing and larger down payments for new mortgages, compared with the days of the housing boom.

Given recent declines in home prices in general, some homeowners are no longer sure how much their homes are worth and, therefore, aren't sure how much of their homes they really own. Often would-be refinancers and buyers don't learn the answer until after the lender has had the property appraised. If the appraisal comes up short, the homeowners may not be able to refinance or buy their next home -- and be disappointed after paying hundreds of dollars in up-front fees. You do have several alternatives, however:

Check your tax assessment and see how much it has changed since you last knew what your home was worth. Although tax assessments are often not equivalent to market value, the difference between your old assessment and your current one can give you a rough idea of how your home's value has increased or decreased.

Study recent list and sold prices of comparable homes in your area. Some of this information may be gleaned from your local newspaper or online from companies such as Zillow.com and Trulia.com. Be aware, however, the estimated prices on these public data one-formula-fits-all services often don't reflect real-world market values today.

"Buy for today with an eye on selling tomorrow."

The home you buy will affect you personally and financially for quite a while. Make sure it's a home you'll still want to own several years down the road. Will you be starting or expanding your family? Buy a home with extra space now. Is your income likely to increase over the next several years? Stretching your budget early may make sense if you'll be happy in the home longer. Are there any plans for major changes in the area? New roads, housing or shopping developments, and expanded commercial activity could affect your home's value--positively or negatively. In short, it pays to look ahead before you leap into your next home.

Selling a home and buying a new one so that you won’t get stuck with two mortgages

It’s best, where possible, to put your home on the market early enough so that you won’t be caught in a two-mortgage situation. That way, should you sell your old home before you locate a new one, you can:

Ask your buyer to settle on a mutually-convenient closing date that allows you more house-hunting time.

If an earlier closing date is unavoidable, you might be able to sell, then rent your home back from your buyer until you find a new home.

If your buyer must move in before you find a new home, you can rent a home in the area where you’re house-hunting.

If, on the other hand, you must buy a new home before you’ve sold the old one, one of these interim methods may tide you over:

If the seller of the home you want to buy agrees, you might be able to make your purchase contingent on selling your old home within a specified time. Under these not-ideal circumstances, the seller may agree only if the home can be kept on the market while waiting for you to sell yours. If the seller receives another offer during this waiting period, you may be given the opportunity to meet the new offer or bow out.

If you have a purchase contract on your old home, but the closing date is some time off, you might take out a bridge (or swing) loan, using the equity in your old (and also, sometimes, in your new) home as collateral.

If you have accepted a transfer offered by your employer, you may receive programmed relocation assistance, which will probably cover a portion of the costs of selling your old home and buying a new one (including a bridge loan of some sort). Your company may engage a third-party relocation management company to sell your old home.If, however, your company has no relocation program, it may still assist you with the financial aspects of your move.

SELL YOUR HOUSE NOW

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