With the first-time homebuyer tax credit extended to April 31, many Central Texans are jumping at the chance to take advantage of this opportunity before time runs out. If you're ready to buy an Austin home, now may be a great time to do so. But how do you know if you're ready?

The most important factor to consider when it comes to buying a home is the state of your personal finances. Do you have sufficient savings to cover downpayment and closing costs?

Downpayment requirements can range from zero to 20 percent, depending on which type of downpayment assistance and mortgage loan you receive (FHA loans are often popular with many first-time home buyers). In addition, it is possible to negotiate an offer for a home that requires the owner to pay some or all of your closing costs. But don't count on having all of these costs covered, and be aware that less money down usually means higher mortgage payments.

Having a good credit report increases your chances for getting the best loans. Make sure your credit report is up-to-date and correct by getting a report from Equifax, Experian and TransUnion. Also be aware that having made a big purchase (i.e., new vehicle) in the recent past could hurt your chances for getting the best loan.

Don't forget to consider your career goals and job security. Homeownership comes with monthly mortgage payments, so it's important to have steady and consistent income.

Once your financial house is in order, it's time to talk with mortgage lenders to determine what you can afford and begin taking the appropriate steps with your REALTOR®. For more information, visit the Consumer Tools section of AustinHomeSearch.com. Happy house hunting!

What began as a year with double-digit decreases in year-over-year home sales concluded with 2009 year-end totals falling only six percent short of the year prior. This comeback was made possible by the surge in home sales seen in the fourth quarter of 2009—a 38 percent increase in October and a 58 percent increase in November—possibly attributed to the original deadline for the first-time homebuyer tax credit.

Local economic conditions, housing trends and extended homeowner incentives lead most experts believe that the Austin housing market reached its bottom in 2009 and is now on the path of stabilization and recovery, though significant gains are not expected until the later part of 2010.

For a review of the Austin real estate market’s performance in the fourth quarter of 2009 and indicators as to what activity we might expect in the coming months, don’t miss the latest edition of AustinHomeSearch Live. For further information on market conditions, contact your Central Texas REALTOR®.

When the time comes to say goodbye to your current home and you’re looking for a buyer, make sure to avoid these common selling mistakes:

Mistake #1: Pricing your home incorrectly - This is possibly the biggest mistake a home seller can make. Price the home too high, and your house could be the on the market for years; price the home too low, and you could lose thousands of dollars in profit. Working with a REALTOR® who is knowledgeable on comparable sales, market trends and homebuyer demand will help you stay on target when it comes to setting an appropriate asking price.

Mistake #2: Showing your home in poor condition - Not only can potential buyers be turned off by viewing a messy home, they can be discouraged by seeing the need for too many home repairs. Make sure faucets aren't leaking and all lights and appliances are working. Keep in mind that going above and beyond to add some fresh paint and update appliances can actually boost the value of your Austin real estate.

Mistake #3: Not responding to all offers - Recognize that selling your Austin home will likely take a bit of negotiation. Receiving an offer that isn't exactly what you had in mind doesn't mean a different price can't be agreed upon. That said, be sure to distinguish serious potential buyers from those who are unqualified or simply "Looky-Loos." Your REALTOR® can help weed out unrealistic buyers and negotiate offers.

Mistake #4: Not understanding the real estate contract - Because real estate contracts are legally binding documents, it's crucial to understand what you're agreeing to when you sign the papers. Are you agreeing to cover closing costs? To make additional repairs before moving out? Having your REALTOR® explain the legalese can help you avoid costly misunderstandings.

Mistake #5: Not having proper help - The value of REALTORS® extends far beyond their access to the Multiple Listings Service (MLS)-it lies in their robust statistics packages, marketing techniques, ethical service, and knowledge of legal and financial matters. Don't go it alone. Being able to rely on help from a real estate professional can save you time, trouble and money.

If you've recently purchased or are about to purchase a new home, congratulations! Becoming a property owner is the first step to building wealth through Austin real estate. As you prepare for the process of moving your belongings into your new home, don’t forget several other important "to-do's" that come with a change of address.

The U.S. Postal Service recommends submitting a Change of Address (COA) request at least two weeks before you move. Request forms can be filled out at the post office or filled out online and then printed and delivered to the post office.

Though you'll begin receiving your usual mail at your new address after your COA has been processed, it's still important to notify the following entities and persons of your address change to help prevent any miscommunication, interruption of service or missed payments:

• Banks
• Schools
• Employers
• Internet providers
• Family and friends
• Insurance companies
• Telephone companies
• Credit card companies
• Loan collection agencies
• Gas, electric and water utility providers
• Medical offices (doctors, dentists, veterinarians, etc.)

In addition, don't forget to update your vehicle registration and driver's license, as well as your voter registration information. If you’re moving within the same county, you can update your voter registration online; however, if you're moving to another county, you must completely re-register to vote by mailing or hand-delivering an application to the Voter Registrar of your new county.

Remember: Even though your "to-do" list might appear overwhelming, it doesn't have to be completed overnight. Tackle a few items on your list each day in order of importance and this phase of the moving process will be over before you know it.