Small Homes in Vogue - Are You Considering Downsizing?

Consumers have been showing concern over slipping home values and increasing unemployment. They have become more cautious in their purchases. In today's housing market, many are choosing "affordability." Consumer caution often results in the purchase of a smaller, less expensive home.

There are a number of bonuses possible in choosing a smaller home. Other things being equal, not only are payments generally lower, but housekeeping is easier; heating and air bills are smaller; taxes are lower; and repairs and updates are less expensive. (For example, painting a large room requires for effort and expense than painting a small one; replacing a small deck is less expensive than replacing a large one.) A consumer can pay off a lower mortgage quicker if they have smaller payments with a fixed, low interest rate. Lower payments can mean extra money for travel, home improvements, college expenses or other reach other goals and dreams such as earlier retirement.

The small home is attractive to more buyers today who want to minimize cost, maximize functionality, and have less upkeep to free up their time for other things they enjoy whether enjoying time with their family or reading a good book.

If you live in a larger home but want to downsize, or if you are getting ready to buy a home; consider whether a small home might be the right option for you. Interest rates are currently low. In a buyer's market, negotiation possibilities are increased. A smaller home may afford a simpler lifestyle.

Books and articles have been written on how to make the most of less square footage. Businesswoman Genevieve Ferraro lives in a 1,800 square foot home with her husband and two children and launched her business around decorating and practical tips for owners of small homes. She believes functionality doesn't have to be sacrified in a smaller home and provides the following tips:

1. Let the room's primary function guide your decorating.
2. Keep all the elements of the room in proportion. Furnishings should be small if the room is small so the space will appear enlarged.
3. If you have upholstered pieces, allow the legs to show to create a feeling of space and light, allowing one's eyes to view items all across the room.
4. Minimize tabletop accessories and limit the number of coffee and end tables.

Many small homes are within walking distance of shopping and local attractions. Even if one plans to drive to work, this can lower expenses by reducing mileage on your car and reducing fuel costs.

Are you considering the purchase of a smaller home? Do you want to manage your budget with less consumption and lower expenses?

For your home buying and selling needs in the Greater Chattanooga area, I offer quality customer service. If you have a home to sell, I provide frequent advertising, a virtual tour, offer call capture and audio tours, and purchase access to multiple websites to capture home buyer's interest. For buyers, I provide assertive searches based on your criteria and provide call backs in a timely manner.

Begin the new year in the home of your choice that meets your needs. Call me, Pat Branham at 423-304-5597; and permit me to assist you in meeting your home buying and home selling needs. Or e-mail me at pbranham@upwardrealty.com.

30-Year Mortgage Rates Hit Record Low

According to Realtor.org (source USA Today), the average interest rate for a 30-year mortgage is at the lowest level since Freddie Mac began collecting its weekly survey in 1971. Rates have now declined to 4.71 percent the week of 12/4/09 from 4.78 percent the week prior. Fifteen year loan rates also fell from 4.29 percent to 4.27 percent, but homeowners should remember they face higher credit standards from lenders now.

During Thanksgiving week, the Mortgage Bankers Association's index of application demands rose 2.1 percent on a seasonally adjusted basis, which indicates consumers are considering taking advantage of mortgage rates at an historic low.

If you are considering buying a home, the buyer's market continues with many homes competitively priced. Around one-third of homes now selling are priced below what the owner paid. Interest rates are comparatively low for qualifying buyers. Take advantage of the extended tax credit and either buy your first home or move up to a nicer home at a competitive rate.

Call me if I can assist you with buying or selling a home. I am licensed in GA and TN and will assertively represent your interests in the desirable Greater Chattanooga real estate market