Thank you Money (Magazine)

On the bright side, this month's issue of Money Magazine makes some very good points about the current state of the real estate market.

1. It is a terrific time to upgrade to a more expensive house. Say you have a home worth $200,000, and want to upgrade to a home priced at $500,000. Your cost of upgrading is $300,000. If the market drops 10%, your present home drops to $180,000, while you dream future home drops to $450,000, making your cost to upgrade $270,000, saving you a net of $30,000!

2. There are four pieces of advice Money offers readers: Free yourself to act fast, know how strong you are, pick allies carefully (get a great, committed broker and a good mortgage person), and wield your power. Call or e-mail me at cynthia.maloney@bairdwarner.com to discuss this advice in more detail.

3. Money provides a buyer's checklist of criteria that show you have what it takes to take advantage of the opportunities of a "buyer's" market. Be sure:

you have a downpayment of at least 10%;

your housing costs, including mortgage payments, insurance and taxes, will be no greater than 28% of your gross income;

you can afford your home without an interest-only mortgage;

you are planning to stay in your home for at least five years;

you have at least three months' worth of living expenses stashed away in cash. (Never be one paycheck away from a missed mortgage payment.)