Quick Tips - 5 New Rules For Home Buyers

Surviving and thriving in the real estate market these days means following a whole new set of rules. The following five items are important for new home buyers to know.

1. Timing the market doesn't work. There's a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love. (Comment: There is no such thing as timing the real estate market. It is impossible to know when the bottom has been set.)

2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody's Economy.com predicts rates will hit 7 percent in mid 2009. (Comment: The interest rate effects your payment more than the price of the house. Shoot for the lowest rate, not the lowest purchase price.)

3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end. (Comment: This is a blessing. If you are looking in this price range, take advantage of this while you can.)

4. Good schools count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com. (Comment: Location is the most important thing when buying a home. Buy a home with great schools nearby.)

5. Honesty is the best policy. A Realtor should provide as much information as possible even if the buyer doesn't want to hear it. It will help them make a better decision.