We have started 2010 on an upswing in terms of the housing market compared to the beginning of 2009. However, as unemployment rates remain high, the economic drive will remain stagnate.  It is reported by 2011 that almost half of all mortgages in the U.S. will be in foreclosure or on the market as a short sale. Experts believe that lenders were holding back on foreclosures in effort to keep home values up, but the time has come for this façade to end.

2010 will likely see real estate sales increasing as a result of mortgage rates dropping in 2009. Some cities in America have even been lucky enough to see a slight rise in home values as well. If these positive factors have you considering selling your house or perhaps looking to buy, we offer some tips to help you get the most for your money in the 2010 housing market. 

Sellers:

Do Not Wait For The Recovery
If you are considering selling, but think that maybe you’ll wait for the economy to recover, you are making a big mistake. While the market is gaining ground it will take several years for properties to return to normal values..

If Home Improvements Are Needed, Now Is The Time
Now is the best time to fix up your home, not just if you are preparing to sell, but even if you are staying put. Financing costs are lower, prices of construction materials have dropped, and if a rehab is in the plans, contractors are offering lower prices too.

Price It Right
Now this doesn’t mean that the home you have so carefully upgraded, remodeled and prepared for sale needs to be priced to match the pricing of a foreclosure, but you may have to adjust your expectations once you compare other houses on the market in your area.

Buyers:

Use Wisdom when Hiring Real Estate Agents and Home Inspectors
Working with an experienced agent is going to be key in your success in buying in today’s market.  It is especially beneficial to deal with agents that are experienced specifically in foreclosures, short sales and REO properties.  The same is true of home inspectors.  Pick a seasoned inspector who can give you an unbiased report on a potential home. 

Buy Now While the Money Is Free
The stimulus package was put in place to help stimulate the economy. In this package first time buyers can get up to $8,000 and current owners that have been in their home at least 5 years can get up to $6,500 to trade up. First time buyers have till June 30, 2010 to close on their home.

Get Down Payment Assistance
For first time homebuyers there are down payment assistance programs on local levels and the federal level. Some down-payment assistance programs can coincide with federal programs through city, county and state levels. Ask your lender and realtor for guidance.

Plan Long Term
As a buyer what seems to be a bargain, or may be ‘good enough’ may not suit you in the long run. Consider the neighborhood, the location, what services are in the area that you will need and want.

Regardless if you are a buyer, a seller or just want to do home improvements for yourself, there is one more benefit that should not be overlooked and that is energy efficiency. Another part of the stimulus package is tax credit up to $1,500 on insulation, roofs, doors, heating and air conditioning and windows that meet certain requirement and criteria. They must be purchased and installed December 31, 2010.   Recovery is on the horizon and the 2010 housing market is still set up for buying.  Selling may not be as easy, but pricing realistically will help make this the year that you sell.