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Karen BazzettaKaren Bazzetta

Karen Bazzetta

(314) 330-7816
kbazzetta@stlexpert.com
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What does all of the financial, rate cut and loan news really mean?

Purchasing Power!  Excellent inventory choices, short term rate cuts, historically low mortgage rates and proposed revisions in mortgage programs set the stage for first-time homebuyers and move-up homebuyers.

Considering the many factors that influence the real estate market you may want to consider your current purchasing power.  The real estate market has either stabilized or remains stable in most parts of the country.  Long term fixed rates are in the 6% range and housing appreciation is stable so it’s a good time to analyze your position.  First time buyers especially have an excellent opportunity in today’s market.  Low interest rates provide leverage, and current inventory levels push sellers to provide buyer incentives such as paying closing costs, providing warranties and reducing prices.

Many would be first time buyers are unaware of the home they can buy with a mortgage payment rivaling what they currently pay in rent.  If you want to know where you stand a mortgage calculator can show you your purchasing power in just a few minutes.  It’s always a good idea to understand your financial position.

As for the move-up buyer it’s really just the next step in the process.  The move-up buyer sells to a first-time buyer which frees up their funds to purchase their next home.  Once their home is sold even if they don’t get the optimum price, they will use their resources (purchasing power) to purchase a home based on current market conditions as well.  It’s an even money trade except the benefit is that the new home future appreciation gains will surpass the previous home due to the fact the it has a higher value.  So while the percentage appreciation is similar, the monetary amount is greater.  This is similar to the difference between having a $150,000 savings account and a $400,000 savings account.  You will earn more money on the larger account at the same percentage rate.

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Posted in: Market Watch

See what our clients are saying!

Still LOVE my home – thank you!!

Lynn B. Ballwin, Missouri

Thanks Jim. I was prepared for a miserable experience. You took the worry and tension out of selling.

John Walsh Seattle, Washington

We had the best experience during the purchase of our first home with Jim. We love it. One of my best friends is a Realtor and I have already told her that when I move, Jim Hurley is the one I work with.

James Fagan Ballwin, Missouri

It was our first home and we spend several months looking. Jim never lost patience. He spent hours educating us and helping us through the process. He’s always smiling and positive…. Linda and Steve Green St. Peters, Missouri

Linda and Steve Green St. Peters, Missouri

I wasn’t really considering buying a new home but one I had looked at before we bought the last one, which I loved, came on the market. I called Jim and we moved 45 days later with no problems. He really cares about the people involved in the process.

Tina and Tom Shinner Kirkwood, Missouri

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(314) 330-7816
kbazzetta@stlexpert.com

2 City Place Drive, Suite 200 St. Louis, MO 63141

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Still LOVE my home – thank you!!

Lynn B. Ballwin, Missouri

default image

Thanks Jim. I was prepared for a miserable experience. You took the worry and tension out of selling.

John Walsh Seattle, Washington

default image

We had the best experience during the purchase of our first home with Jim. We love it. One of my best friends is a Realtor and I have already told her that when I move, Jim Hurley is the one I work with.

James Fagan Ballwin, Missouri

default image

It was our first home and we spend several months looking. Jim never lost patience. He spent hours educating us and helping us through the process. He’s always smiling and positive…. Linda and Steve Green St. Peters, Missouri

Linda and Steve Green St. Peters, Missouri

default image

I wasn’t really considering buying a new home but one I had looked at before we bought the last one, which I loved, came on the market. I called Jim and we moved 45 days later with no problems. He really cares about the people involved in the process.

Tina and Tom Shinner Kirkwood, Missouri

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