Top Reasons to Sell Your Home in the Winter!

Aside from less competition, low borrowing costs give buyers incentive
By Dian Hymer
Inman News™

Share ThisWe're getting close to the end of the year, which begs the question of whether it's worthwhile trying to sell your home now. Is it a waste of time? Will it sit on the market and become shopworn? Should I take my house off the market for the holidays? Will the home-sale market be better for sellers in 2012?

The first question you need to ask yourself is: Are you emotionally prepared to sell? Selling is a challenge for most sellers, although some markets are better than others. Unless you bought more than eight to 10 years ago and preserved your equity, you may not be able to sell for enough to pay off the mortgages secured against the property and the other costs of selling.

For sellers who have no additional assets, a short sale or foreclosure may be the only option. If so, first look into government programs that might help you out financially. Also, talk to your attorney and tax adviser.

Sellers who have the resources to make up the difference between the sale price and the amount they owe need to ask themselves if they are willing to pay the additional cash in order to sell and move on.

There are two reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. The second is that many buyers shy away from short sales because of the lengthy and uncertain process involved.

The next thing to consider is the condition of your home. Is it ready for the market? The most salable homes are those that are in move-in condition.

Before racing to the hardware store, ask your REALTOR® about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a good time to sell.

HOUSE HUNTING TIP: The supply/demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it's the local picture that tells the tale in terms of the possibility of selling your home at any given time.

Most sellers don't put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale tends to dwindle during the winter months. Interest rates are low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting.

Some sellers feel that if they've waited this long to sell, they should put the process on hold until spring and get the house ready in the meantime. Certainly, it's not a good idea to put your house on the market until it looks great. But if you and your house are ready to sell, move ahead.

The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedure to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday gift.

There is a lot of pent-up demand, on both the buyer and seller sides. Sellers have been waiting for a better time to sell. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.

THE CLOSING: Recent projections call for another five or so years of bouncing along close to the bottom of this market cycle. Many experts believe that the big price declines are behind us.

9 Ways to Keep a Lid on Your Energy Bill!

By Paul Bianchina
Inman News™

No one likes wasting money, especially in these tough economic times. So it certainly makes sense -- dollars and cents -- to make a small investment of time and supplies to close up those heat-wasting air leaks around your home. It'll pay back big dividends in reduced energy bills and a warmer, more comfortable house this winter. So let's look at some of the areas where those drafts may be lurking, and see how to take care of them.

1. Doors and windows: This should be an obvious one. If you can see gaps between your siding and your windows or exterior doors, close them up with a bead of clear or paintable acrylic latex caulk. Larger gaps can be filled with foam backer rod before applying the caulking.

2. Exterior penetrations: Some of these areas are going to be obvious, while some may take a little bit of searching. Some examples of exterior penetrations where air can leak into the house include exterior faucets, dryer vents, exterior electrical outlets, exterior light fixtures, holes that have been drilled for phone and TV cables, conduit penetrations, exit points for plumbing drains, and penetrations for air conditioning lines. Closing these penetrations may require a variety of different techniques, including caulk, expanding spray foam, or, in the case of electrical boxes and fixtures, specific gaskets that are designed to fit the boxes.

3. Exhaust-vent covers: Dryer vents, range hood vents, bath fan vents, and other interior ventilation equipment typically terminate outside the house in a plastic or metal cover that has one or more louvers on it. The louvers are designed to be in the closed position whenever the fan is not in use, so that outside air doesn't leak in. Check all of these louvers to be sure they're closing completely, with no air leaks. If they aren't, you can adjust the spring tension to hold them closed more tightly; add foam weatherstripping tape for a more air-tight seal; or replace the entire vent cap with a new one.

4. Gaps around interior vents and recessed lights: Inside your home, heated air can be leaking out around that same ventilation equipment, where vent pipes pass through the walls or ceiling, or where vent covers meet wall and ceiling surfaces. Recessed light fixtures can also be real air-leakers. Around the vent pipes and recessed light cans, seal any gaps with caulking. For the vent covers and recessed light covers, remove the covers, then adjust the springs and/or add foam weatherstripping tape to create a tight seal between the cover and the ceiling.

5. Heat-duct penetrations: Gaps around heating-duct cans where they pass through the floor or wall allow cold air to enter from the crawl space, while gaps around ceiling-duct cans allow heated air to escape into the attic. To close those drafts, first remove the register, then use a combination of caulking and/or metallic duct sealant tape to close any gaps between the sheet metal cans and the floor, wall or ceiling surface.

6. Fireplaces and woodstoves: Lots of gaps can occur around these appliances. With a conventional fireplace, keep the damper closed except when burning a fire to prevent heated air from escaping up the chimney. Consider investing in a set of air-tight doors, which close off the air leaks and also make your fires more efficient. Look for gaps around woodstove and gas fireplace flue pipes, and air leaks around masonry chimneys. Use a metal collar if necessary around flue pipe penetrations, and seal gaps with heat-resistant sealant specially formulated for this application.

7. Attic and crawl space hatches: These can be real air losers if they're not weatherstripped, so take care of that with some foam tape. Make sure the hatches are insulated as well.

8. Interior doors to unheated spaces: If you have any interior doors that lead to unheated spaces, including basements, garages or attics, be sure the doors are weatherstripped to prevent air leakage. If possible, replace older, hollow-core doors with solid-core or, better yet, insulated metal doors.

9. Sill plates and penetrations: This one's not as easy to deal with, but it's well worth the effort to try to do whatever you can with it. Air can leak both into and out of the house through gaps where the sill plate meets the foundation or the siding, and around plumbing and wiring penetrations drilled through wall plates in various areas. If you have a gap between your siding and the bottom of your exterior wall, especially in older homes where the use of sill sealers was not a common practice, consider closing up this big air gap with a bead of caulking or expanding foam. In the basement, crawl space and attic, if you can access any of the pipes and wires that pass through the wall plates, seal the penetrations with expanding foam.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers

Tying the Knot? Good Ways Couples Can Save For a Down Payment on Their 1st Home!

by Phoebe Chongchua

Saving money for a down payment on a home has always been a challenge and a lesson in financial discipline but today it’s, perhaps, more difficult than ever.

That’s partly because the down payment is more substantial than in the past few years when zero down could get you into your dream home.

The Washington Post recently reported on a unique, sign-of-the-times approach to saving for a down payment.

These days engaged couples are scrapping the traditional wedding list and opting for a non-traditional wedding registry that creates an opportunity for wedding guests to help collect cash for a down payment.

The National Association of Realtors reported for 2010 that 27 percent of first-time homebuyers used gift money from relatives and friends to make their down payment. Nearly 60 percent of homebuyers were married couples.

Deposit a Gift, a New York City company, has set up about 6,500 gift registries with 30 percent of them, split evenly, for down-payment funds and home-improvement funds, since it launched in 2009.

It seems no more “white elephant” gifts; people are asking for and getting what they really need–cash for their home.

The down-payment gift registry helps take the awkwardness out of guests simply giving money. Today, couples are uploading photos on blog sites and showing their dream home much like the old days when couples would ask for dinner china or fine stemware.

The down-payment fund touches many people in a very personal way. Some people have already lost their home to foreclosure; still others know the enormous struggle to make ends meet. Getting some financial help to purchase a home is largely a universal need.

A quick search on the Internet can put you in touch with a number of wedding gift registries. You should research them carefully. Many include other helpful options such as connecting you with a directory or wedding vendors and even a rebate for using their select vendors.

Once the money starts rolling in, however, you have to understand how you can use it. The rules for using gift money depend on the type of loan you are getting. So be sure to ask a qualified expert for assistance.

Generally, a down payment will require that at least 5 percent of the money comes from your own savings, not gift money from the registry. There might be some exceptions, so check with the mortgage company.

Some mortgage companies, like SunTrust Mortgage, even have a bridal registry that works just like a down payment registry. In 1996, the Federal Housing Administration encouraged lenders to establish bridal registry accounts to accept money for savings toward a down payment from the couple’s relatives and friends. However, this never really caught on with lenders.

SunTrust Mortgage offers other programs for first-time buyers to help them save for a down payment. The Home Purchase Registry Account allows contributions from relatives and friends who do not have a financial interest in the transaction. Various other rules apply; be sure to go over the details with your agent and lender.

Published: October 28, 2011

The Joys of Home Ownership!

Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons.

Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer.

What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones.

It makes sense. Many people enter the realm of homeownership as young couples looking to build a nest. They plan on starting their own family and need room to expand and grow. These family homes will see many firsts and will be the container of countless memories. Additionally, homeownership gives families more room to entertain and this means extended family will also share in building memories.

It's not just young families, though, that seek homeownership. Families with teenagers seek larger homes to room their growing brood. Retiring adults may wish to start a new phase and new memories, seeking out warmer climates or smaller, more manageable homes.

These little moments are what life is all about. Memories from Christmas mornings and summer vacations will fill minds for years to come.

On the other hand you literally can put down roots by planting trees and shrubs! Renters are rarely afforded the luxury of gardening. In fact, digging up the landlord's yard is frowned upon. As a homeowner you are able to create your own green oasis, including trees that will mature alongside your children and gardens that will feed your hungry pack.

There is a certain pride that comes with homeownership. This little piece of property and land is yours. There's no one that can evict you or take it away. This security allows people to form deep attachments to both the land and home.

This pride of ownership spurs many owners to make improvements and additions, both to keep the home in working order and to make it more comfortable and usable, which in turns improves neighborhood values and overall curb appeal.

Why do people buy? They may be initially motivated by changes in circumstance, such as a new job or a new family, but they buy based on emotional responses. People want a house that can become their home, where they'll fill it with good times and memories. Be sure to remember this sentimental side of homeownership the next time you read about stocks, bonds, and housing woes.

Published: October 11, 2011 by Carla Hill

Freddie Mac Offering $1500 for Condo Association Fees.

Monday, August 15th, 2011, 8:27 am

Freddie Mac is offering eligible buyers up to $1,500 for condominium association dues.

The government-sponsored enterprise said the incentive is for condos available through its HomeSteps unit, on the market for at least 120 days and sold to owner-occupants.

Buyers can apply for Freddie's Condo Cash offer between Monday and Nov. 15, and must close before Dec. 30.

The GSE offers a two-year limited home warranty covering electrical, plumbing, air conditioning, heating and other major systems. Freddie Mac also extends discounts of up to 30% on appliances for a new buyer.

In May, Freddie began offering up to 3.5% buyer's closing cost assistance, as a way to help drive sales higher through the summer selling season.

Writen by: Jason Philyaw.

Top 5 Things You Should Know to Sell Your Home Fast.

By Sharon Snyder Print Article

RISMEDIA, August 8, 2011—While many markets around the country continue to experience challenges as the market makes its slow turnaround, Ann Arbor real estate is selling fast, and it’s because we follow some simple rules.

1. Curb appeal is key to selling your home
If it looks rundown from the outside, then it probably is on the inside too. Curb appeal is all about first impressions. Buyers want to feel like they could live in a home from the moment they pull up in front of it. Basic improvements such as exterior painting, cutting the grass and planting some flowers improve the look of a home from the outside tremendously.

2. Deodorize
Every home has a unique odor, especially if pets are present. Be sure to professionally clean the carpet and the furniture and replace carpets if necessary. Keep pets clean and the home free from dander. Consider taking pets and pet cages if present in the home with you when you leave for showings.

3. Really want to sell your home? Repair and repaint
A little putty and paint can make all the difference. Repair damaged dry wall, gouges in wood surfaces and paint the walls. Bright colors such as those in children’s rooms should be repainted with a neutral color. We like to repaint our Ann Arbor homes with a neutral shade that will be attractive to a wide variety of buyers.

4. Put away your personal collections
Here, the old saying that one man’s treasure is another man’s junk rings true. De-clutter your home by packing up knick-knacks, heirlooms, personal collections, and even family photos. After all, they are special only to you and your goal is to make the home presentable to the widest number of people possible. Expensive collections should be packed away as well to keep them safe.

5. No guns, drugs or valuables
If you own a gun, be sure it’s unloaded and lock it away. Don’t leave it accessible to anyone viewing your home, especially anyone with children. The same is true for prescription drugs, fine jewelry, valuable art work, money and anything else you want to keep safe.

What the Debt Downgrade Means for Your Mortgage!

New York (CNNMoney) -- At least one fear was not realized amid Monday's meltdown: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor's downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market.

In fact, the initial response to Fannie and Freddie getting cut to AA+ from AAA was precisely the opposite. Mortgage rates were poised to continue declining.

HSH Associates, which surveys lenders, quoted the average 30-year fixed rate mortgage at 4.44% Monday. "We expect to see rates go into the 4.30's by noon tomorrow," said Keith Gumbinger, of HSH Associates.

Mortgage rates are set off of the interest rates on U.S. Treasury notes and bonds. Even though Standard & Poor's pulled its AAA rating of the United States Friday night, investors still rushed into U.S. Treasury securities Monday as a safe haven, believing more in the "full faith and credit of the United States" than in the opinion of Standard & Poor's credit analysts. As investors snapped up Treasury notes and bonds they pushed down interest rates on those securities, which move inversely to prices.

How Fannie Mae's downgrade impacts you
Late Monday afternoon, the 10-year Treasury note traded at a yield of 2.34%, down from 2.56% on Friday and 3% just two weeks ago, a huge move. That 10-year yield is the benchmark used to set 30-year fixed mortgages.

"The flight to quality effect is dominating," said Walt Schmidt, senior vice president of FTN Financial Capital Markets. "The net effect is lower mortgage rates."

Stock market plunge: Not just a rich guy's problem
Fannie Mae and Freddie Mac, now 80%-owned by the U.S. government after receiving more than $150-billion in federal bailout funds, purchase bundles of mortgages from banks, providing lenders with fresh cash to make new loans. Fannie and Freddie then package those mortgages into securities that are sold to investors, most of which went sour during the financial crisis.

Indeed, on Monday investors demanded slightly higher interest rates for such mortgage-backed securities, increasing the difference- or spread- between mortgage securities and Treasuries. But that increased spread, which normally would result in higher mortgage rates, was more than made up for by the drop in Treasury security yields.

Your money in a AA-rated world
"That flight to safety is completely overshadowing any increase in rates that the downgrade might have brought," said Gumbinger of HSH Associates.

Auto loan rates may also slide lower since they too are tied to Treasury yields. The yield on 3-year Treasury notes dipped Monday to .45%, which is likely to pressure down 48-month auto loan rates. The national average auto loan rate was 5.6% Monday, according to bankrate.com.

Analysts warn the drop in interest rates may not last. If investment flows were to move back into stocks and out of bonds, interest rates on Treasury securities, and consequently mortgages, would rise.

"Over the long-term, if the U.S. has to pay more in interest rates, consumer rates will likely go up," said Greg McBride, senior financial analyst for Bankrate.com.

For now, lower mortgage rates may offer only limited benefits to American consumers. Banks' lending standards have been tough recently, and consumers need the wherewithal to qualify for loans. That appears increasingly difficult as the economy continues to sputter.


First Published: August 9, 2011: 5:53 AM ET

5 Questions to Ask Your Mortgage Lender

Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house!

Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional:
1.Are you a bank, a broker, or both? Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise.



Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan - low down payment and moderate qualification guidelines - without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely.



Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages - Plans A, B, C and D, if you will - which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out.

2.Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative).



The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible.

3.How long will it take to close my loan? How much time will I need for loan and appraisal contingencies? The time frames for closing your mortgage - which often drive the time frames for closing your home purchase - often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage.



When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process.

4.Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval.

5.How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset - and largest financial obligation.

Mortgage Rates Hold Steady!

By DREW FITZGERALD And JOHN KELL

Mortgage rates changed little in the past week, snapping a streak of weekly declines that had taken fixed rates to the lowest points of 2011, according to the latest survey from Freddie Mac.

While the 30-year fixed-rate mortgage rate ticked up to 4.50% in the week ended Thursday from 4.49% last week, still well below last year's 4.75% average, rates on 15-year fixed-rate mortgages ticked down to 3.67% from 3.68% the previous week and 4.20% a year earlier.

Mortgage rates generally track Treasury yields, which move inversely to Treasury prices. Rates have slumped for months as yields on Treasurys slid amid economic uncertainty.

Freddie Chief Economist Frank Nothaft said mortgage rates held relatively steady after market participants shrugged off recent reports that inflation was picking up because the increases have been in line with expectations.

Home mortgage debt has been declining, especially through second mortgages, according to the Federal Reserve. Household mortgage balances fell by more than $930 billion from the March 2008 peak through this past March, with second mortgages accounting for $820 billion of that.

Meantime, the Mortgage Bankers Association on Wednesday said the volume of mortgage applications jumped a seasonally adjusted 13% last week from the previous week. Refinancing activity jumped nearly 17%, according to the weekly survey, which covers more than half of all U.S. retail residential mortgage applications. Purchasing activity rose 4.5% in the week ended last Friday.

In the latest week, five-year Treasury-indexed hybrid adjustable-rate mortgages fell to 3.27% from 3.28% last week and 3.89% a year earlier. One-year Treasury-indexed ARM rates rose to 2.97% from 2.95% the prior week but still down from 3.82% a year earlier.

To obtain the rates, fixed-rate borrowers required an average payment of 0.7 point. The five-year hybrid adjustable rate mortgages required a 0.6-point payment, while one-year adjustable-rate mortgages required a 0.5-point payment. A point is 1% of the mortgage amount, charged as prepaid interest.

3 Tips for the First-Time Home Seller

RISMedia, June 14, 2011—Today’s buyer-take-all bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t measured in the profit made on the sale, but by the enjoyment the owners had from living in the home.
Here are three things experienced sellers would tell you, if they could.

Price it realistically from the start

“Your largest number of showings will occur in the first two to three weeks,” says Mark Ramsey, a broker in Charlotte, N.C. One reason: “The (multiple listing service) systems and the Internet tend to drive the majority of showings,” he says. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.

Take advantage of that sweet spot by pricing the house competitively right out of the gate, he says.

When first-time sellers James and Emily Foltz put their Oklahoma City home on the market last summer, their agent gave them a comprehensive list of the initial asking prices of nearby homes like theirs, along with the final selling prices. “Some varied by $30,000,” says James Foltz.

It gave them an X-ray of their market.

How you style the price is important. The Foltzes first marketed their home for $155,000. But lowering it to $150,000 meant the listing appeared within the computer search parameters that buyers commonly used in that price range, Foltz says.

The result: A few weeks after the price change, they had a winning offer.

Be prepared to lose some money

Want to sit with a house that won’t move? Be the first-time seller who insists you can get the appraised value, the tax assessor’s estimate or whatever you paid a few years ago.

“It seems like there’s no relationship between your assessed value, taxable value and the actual market value of our house,” says Pat Vredevoogd Combs, past president of the National Association of REALTORS®. “There doesn’t seem to be any correlation.”

The truth is that your house is worth what buyers are willing to pay. No more. “This is a true market that Adam Smith would have loved—totally based on supply and demand,” Combs says. That means many buyers should be prepared to lose some money or hang onto the home until the price rises.

“We did end up taking a loss,” says Foltz, who wrote a check for $3,000 at the closing table. The good news is that the couple sold their home in less than two months.

Beware the agent who promises big profits, Combs says. That person may just be after your business. “Don’t go with anyone who doesn’t use comps,” she says. And study sales prices, not asking prices, for real estate.

Promotion, promotion, promotion

One question to ask yourself and pose as you interview agents: How will you reach the home’s target market?

“You have to consider who your most likely buyers are for what you’re selling and cater to that group of people,” Ramsey says.

Targeting 20-somethings who live on their smartphones? You need to effectively access the networks your buyers are tapping to find their next home. One big trend: QR (or “quick response”) bar codes that allow smartphone users to access property information electronically, he says.

The typical starter home can also appeal to downsizing empty nesters, says Ramsey. To serve their needs, you might also want to have a phone number that instantly reaches someone who can provide details and answer questions, he says.

And don’t neglect the modern version of curb appeal: using lots of photos on real estate listings’ websites. However you market your house, you need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

5 More Things You Didn't Know Could Get Your Home Sold

Last year, we talked you through some surprising selling points - housing hot-buttons that can get your home sold, stat, like having a Trader Joe’s market nearby. There’s so much information on the web these days about how to stage a home and create compelling curb appeal, that you might think you know all you need to on the subject.

Just when you thought you’d mastered the matter, we thought we’d brief you on 5 more things that can get your home sold, some or all of which might never have occurred to you.

1. Your neighbors. Most homeowners contemplating selling their homes understand the importance of well-kept neighboring homes. Many a buyer has pulled up to an amazing house, viewed it, and left shaking their head with woe because they just can’t cotton to buying the place on account of the shoulder-high weeds, car in the yard or crumbling ruins of the house next door.

On the flip side, your neighbors themselves - not just the homes, but the people - can actually help sell your home. Many homeowners know people who want to live in their neck of the woods; this is one reason many seasoned real estate professionals hold their listings open to neighbors and send out postcards to neighbors announcing the listing - the neighbors might know people who are interested in your home!
Also, neighbors who are out and about chatting with each other, laughing and playing with their kids, mowing their lawns or painting their fences, or even who just offer a smile and helpful area knowledge to the buyer-to-be they pass on the street can make a very favorable impression on prospective buyers.

It’s a good idea, if and when you decide to list your home for sale, to touch base with neighbors you know and let them know; it’s in their best interests to get good new neighbors, so they might be able to go the extra mile in showing the neighborhood’s biggest asset - themselves - off to its best advantage.

2. The right sights, smells and sounds. It’s no news flash that the view of a used car lot; stinky foods or animal smells; and the siren song of a fire station next door could be deal-killers. What might surprise is some of the right sights, smells and sounds that can help seal the sale of your home. My experience has been - agents, chime in here! - that the more natural beautiful sights, smells and sounds are, the more favorably they’ll be received by the largest population of prospective buyers.

For example, playing a soundtrack of classical musical is fine, but will cause some skeptical buyers to wonder what noises you might be trying to cover up - especially if you’re in a condo or other potentially thin-walled property where neighbor noise might be an issue. On the other hand, birdsong can be attractive to some buyers. Artificial air fresheners? Not so much. The scent of the jasmine or lavender that grows in your yard? Even allergy victims can appreciate that.

You might be desensitized to the amazing views of trees, mountains or even water outside your window, but pulling back the curtains so prospective buyers can see for themselves is an absolute must.

Home buying is a multi-sensory experience - visual staging of the property itself is no longer a plus, it’s a must. But homes which create pleasant impressions that fire on all of a buyer’s sensory cylinders definitely have the edge on their competition.

3. Your dog. The New York Times ran a piece a few months ago about sweet, well-behaved dogs (and cats!) who reportedly helped sell their owners’ Manhattan apartments. In a departure from the conventional wisdom that dogs should be removed and every trace of their presence erased from the home during showings, the article featured several buyers and brokers attesting to their belief that the presence of a particular cat or dog “help[ed] sell a property by making the place seem warmer or more appealing.” And I’m sure you’ve all heard me tell the story of the San Diego buyer who fell in love with a tract home listed at a price higher than all the nearly identical comparables he’d seen and wanted to make a full-price offer immediately - so long as the deal included the dog!

Definitely consult with your agent before you decide to implement leaving your dog at home for showings as part of your plan. I’m a dog lover, and would be concerned that someone might inadvertently let one of “my girls” out, if I left them there while my house was being shown; as well, would-be buyers or their agents may have allergies your pet could set off.
Lately, it seems like I’ve seen many brokers attempting to capture the best of both worlds by making sure that the family pet or even the broker’s own pet is captured in a charming tableau in 1 or 2 of the listing pictures, even if they’re not present at the home during showings.

4. Your happiness. Video and even written love letters that extoll all the virtues for which you love your neighbors, your neighborhood and your property are contagious to buyers. I’ve seen sellers help buyers see their homes through their own loving eyes by posting videos on YouTube and including the link on the listing flyer or even by putting a binder containing a letter plus menus and flyers from their favorite neighborhood restaurants, dry cleaners and other local merchants out on the counter during showings.

Wide-open curtains that let light stream in, light and bright paint and decor colors and other home features that science has proven make residents more happy and functional also create this thought process in a buyer’s mind: “Hmm, these people seem happy here. I could be, too.”

Similarly, indicators that you invested a lot of love in your home, by keeping it in immaculate order and pristine condition, by tending a well-cared for kitchen garden, lovingly furnishing and making comfortable (if not overly customizing) your kids’ rooms, all create the feel that a home was happily lived in - it’s like staging your home with a life well-lived, not just paint and tile.

5. The freeway or subway you thought was too close. There is such a thing as a freeway or elevated train tracks being too close to your home; if your place rattles or roars, for example, every time the train passes, chances any buyer will view that as a selling point are pretty slim. However, homebuyer attitudes toward being located near freeways and subways or bus lines are a-changing. Every upward click of gas prices renders buyers a tiny bit more interested in a location that is more commutable.

Where yesteryear’s buyers were all about the posh exclusivity of far-out suburbia, today’s buyers are more interested in financial and ecological efficiency and convenience. I’ve never heard so many homebuyers looking to own homes that will allow them to ditch their cars entirely as I have in recent years!

What might once have been seen as too close to the freeway has gotten a new spin, lately, as a highly convenient, commuter-friendly location.

High Gas Prices Are Pushing Homebuyers to Go Green!

RISMedia, June 9, 2011—In cities like Los Angeles, where the car is king, the thought of commuters leaving their automobiles behind and opting for public transportation once seemed unimaginable. But CBS Evening News recently reported that Los Angeles commuter rail ridership had increased 8 percent from last year’s figures.

The rules of the road are shifting. High gas prices, climate change, and environmental awareness are altering the real estate landscape. The result is that more people are looking to work closer to home, not only because commuting is becoming more expensive, but also because of growing concern over car-centered life and its impact on greenhouse gases.

The lure of suburban developments, often located many miles from city centers, once offered both a relief from the bustle of urban life, and also the opportunity to get more home for the dollar. But with rising gas prices and hours braving rush hour traffic, the costs are outweighing the benefits.

Add growing awareness of a nation hooked on foreign fossil fuels, and the result is a paradigm shift in homebuyer consciousness.

“When words like sustainability, carbon footprint, and arctic snowcaps are entering our everyday conversations, it’s clear that climate change is affecting homebuyers’ decisions,” says Myra Nourmand, Los Angeles Real Estate Broker and author of the book From Homemaker to Breadwinner.

More than before, consumers are factoring the price they’re paying at the pump as well as their commuting time into their overall buying decision. In addition, the current economic slump means that people are working longer hours for the same pay. Thus long commutes add strain to an already stressed out workforce. Nourmand believes that these are key reasons why buyer demand remains high in areas like Santa Monica, Beverly Hills, Brentwood, Bel Air, and Hancock Park.

Historically, the three-part formula for high curb appeal has been prime location, attractive architecture, and sought-after square footage. The burst of the housing bubble caused a home’s price to take precedence above all else—at least that’s what it seemed like based on media reports. Where Nourmand works, however, location, architecture, and square footage remain at the top of buyers’ priorities.

“None of my clients are short-selling their homes, so you won’t find any fire sales among my listings,” says Nourmand.

In addition, foreclosures and subprime fallout are non-existent within her housing inventory. Meanwhile, comparably prestigious outlying areas, which were often viewed as alternatives to high-end L.A. neighborhoods, have experienced hard times.

“If high fuel prices are the norm—and that’s what the news indicates—then demand for property in desirable neighborhoods near urban centers should remain strong,” says Nourmand.

To learn more about real estate sales trends visit http://www.homemaker2breadwinner.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

5 Ways to Add Luxury to Your Home!

Real estate eye candy is everywhere. And if you love window shopping for homes online, there's a seemingly endless influx of massive mansions listed in the tens of millions of dollars. While their trillion square feet might not tempt you, and their manicured grounds seem like an eco-nightmare requiring a lifetime of landscaping, the luxury amenities and highly customized features do make the living seem easy, right?

Whether you're buying, prepping to sell or simply trying to live the good life in your current home, here are 5 inexpensive ways to add some luxury to your regular home:

1. Spa bathroom upgrades. I’m not saying you have to have a toilet like Whoopi Goldberg’s or anything. Her flusher has been featured on the View, Oprah and all over the web - one site even made up a song about it (the ditty is a bit blue, though, so I won’t link here. The curious can find it online.) But her toilet - yes, the toilet - runs around $7,000!! (No typo, folks.)

In all seriousness, though, spas tend to have a clean, bright look and feel and luxurious stress-busting features that just flush the tension right out of you (pardon the pun) - many of which can be installed in your own home for a fraction of what the dreadlocked one paid for her porcelain potty. For example, pedestal sinks instantly - and inexpensively - open up a bathroom, especially when replacing a dark vanity and wall-to-counter mirrors. I recently put a new pedestal sink in my bathroom for less than $600 - top of the line, including faucets and installation!

Similarly, you can get more of the spa look and experience at home, with a relatively modest investment - especially compared with the lifestyle upgrade for your buck - by installing granite counters (the tiny slab most bathrooms take can run a few hundred dollars), a basic bathtub with jets or river-rock shower floors for under a thousand dollars!

2. Custom, decorative paint treaments. Sponge painting? Très 1990. Murals in your kids’ rooms, entry hall inspirational mantras that greet your guests - paint is one of the least expensive “edits” you can make to your home, and homeowners are upleveling their home’s aesthetics with custom paint in lots of luxe-ey ways.

From harlequin diamonds to chair rails, crown moldings and wainscoating, decorative paint treatments are a simple, cheap and chic method for upping the luxury in your home life.

3. Built-in anything. Part of what makes uber-luxury homes, well, uber-luxurious is the fact that it seems like living life in them would be so neat and clean and easy. One way to get that feel in your very own home is to build in some of the necessities, optimizing the way you use your space and takes great advantage of otherwise unusable areas, generally creating what the feng shui set would deem free-flowing chi.

Consider building in:
•Storage systems. From shelved nooks to closet organizers to garage grids for sports equipment, storage systems eliminate clutter and make sure there’s a place for everything, and that everything has a place. If you can afford a custom cabinet installation or custom closets, they certainly offer the fancy moldings and modules that create luxury appeal. But many home improvement stores now offer much less expensive versions of these systems that look and work great.
•Desks and bookshelves. Like storage, but activity-specific, built-in office equipment maintains order and can turn a dead corner of a room into a highly useful workstation. To replicate this functionality on the cheap, find a corner or nook and put in an armoire-style workstation that closes and folds up when you’re not working. And built-in bookshelves are a time-tested selling point when your home is being sold, by the by, so, if you have an empty area from old-school built-ins which were removed, installing inexpensive shelving might be a great way to go.
•Wine storage. Dead space under the stairs can easily be transformed into a wine cellar or storage space. My own personal wine cellar is where I store my kid’s chocolate milk, my electrolyte water and a bottle or two fish sauce, but it’s a great feature to have at home, no matter what you’ll use it for!
•Recycling/compost/trash centers. Try as we might to minimize it, we all generate trash. Built-in centers with clearly marked waste receptacles make this dirty part of life less messy and more manageable.

4. Dedicated spaces for anything. There’s no need to go all Candy Spelling and dedicate multiple rooms to gift wrapping. But space is a luxury in and of itself, so dedicated space for your film-watching (a theater room), gardening materials, crafting supplies or even the kids’ homework is an extra-special, super-duper luxury, especially if it’s equipped with the right equipment for the activity to which the room, half-room or even corner or nook is dedicated.

5. Automation. Remember the Jetsons? The vision for this century was a fully automated, robotic home that did all the work of life for you, so your time would be free to shop at Mooning Dales or work for Mr. Spacely building sprockets. Most of that hasn’t happened, and that’s probably for the good. But injecting small touches of automation into your home can give it a decidedly high-end feel - for very, very little cash.

(And they're also gadget-ally delicious!)

I personally just put a couple of these automated trash cans- $60 each! - into my own kitchen. They’re hands free, so eliminate the germiness and clunkiness of opening a lid with your hands or feet, and they were the hit of a recent dinner party! (Okay, it was the food, then the trash cans that guests admired. But still.) Many hands-free or automatic household items are available at very low prices, like automatic soap pumps, paper towel dispensers and robotic vacuum cleaners.

New Home Sales Rise 7.3% in April!

Nashville Business Journal - by Jeff Clabaugh

Nashville 54th for real estate searches
U.S. existing-home sales dipped in April
Most expect housing recovery in two years, report says
U.S. housing starts plunge 24% in April
Database: Statistics on U.S. new-home sales since 1963
Sales of new houses rose to the highest level of the year in April, and prices were up from a year ago, according to data released Tuesday in Washington by the U.S. Commerce Department.

The report shows new home sales rose 7.3 percent from the previous month to an annual pace of 323,000. The median price rose 4.6 percent from April 2010 to $217,900.
Regionally, the biggest gain in month-over-month sales was in the West, where purchases jumped 15.1 percent in April. New home sales were up 4.3 percent in the South.
The new home market also tightened last month, with inventory falling to a 6.5 month supply, down from a 7.2 month supply in March.

April was not nearly as strong for existing homes in April, when sales dropped 12.9 percent, according to the National Association of Realtors.
In Nashville, existing-home sales plunged 18.5 percent in April, according to the Greater Nashville Association of Realtors. The median price for a home in Nashville stood at $159,070, down from $164,950 a year ago.

3 Financial Reasons to Buy Now

By The KCM Crew

Here are three great financial reasons why you should not wait before taking the plunge into homeownership.

1. The 30-Year Mortgage May Disappear

There has been much debate regarding government's role in providing support for homeownership. There are several experts who believe if Fannie Mae and Freddie Mac's roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate's, Is it curtains for the 30-year mortgage?

2. QRM Requirements Could Be Much More Stringent

Here are proposed changes to the requirements for a 'qualified residential mortgage':
• Certain mortgage types would be eliminated
• You would need to put a minimum of 20% down
• You would need a minimum 690 FICO score
• The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)
There would be loans available to purchasers who don't qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).

3. Rents are Expected to Increase

The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal recently quoted a report by Reis, Inc in which it states, "Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace."

Bottom Line

You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.

Reprinted with permission. All Contents ©2011. Steve Harney. KCMBlog.com.

Most Interesting Piece of Real Estate: Bin Laden's $1million Mansion Compound

Bin Laden's hiding place: a $1 million compound

Unquestionably, the most interesting piece of real estate on the entire planet today is the "mansion" compound where Osama bin Laden was found.

As the New York Times reported, "It was hardly the spartan cave in the mountains that many had envisioned as bin Laden's hiding place. Rather, it was a mansion on the outskirts of the town's center, set on an imposing hilltop and ringed by 12-foot-high concrete walls topped with barbed wire.

"The property was valued at $1 million, but it had neither a telephone nor an Internet connection," the Times wrote. "American officials believed that the compound, built in 2005, was designed for the specific purpose of hiding bin Laden."

The Los Angeles Times has published a graphic showing property details, as well as satellite images from before and after the compound was built.

Taylor Swift Buys her Parents a $1.4million Dollar Home in Nashville!

Taylor Swift has gone and bought her family a million dollar-plus mini-mansion in Nashville's historic Whitland neighborhood.

Property records reveal it was sold, way back in September 2010, for $1,400,000.

The residence Miss Taylor is rumored to have purchased for her parents, according to listing information, was built in 1925, measures 4,929 square feet and has 4 bedrooms and 5 bathrooms–or 3 bedrooms and 3.5 bathrooms depending where online one looks–including a main level master suite with dual en suite facilities.

A circular drive rolls by the front of the house that at first glance reads a bit plain if pleasantly distinguished, solid and trustworthy. The arched driveway continues around the house to an original concrete-reinforced two-care garage on the basement level. Still waters sometimes run deep and the pretty-ish but mostly banal exterior hints little of the exquisite architectural detailing on the interiors that include wonderfully patinated original hardwood floors, custom woodwork and several magnificently ornate hand-crafted plaster ceilings. In the formal dining room, plaster pilasters line the walls and a shallow barrel-vaulted ceiling is thick with hexagonal plaster rosettes that resemble the surface of the moon.

The original 1925 architecture and the exquisite plaster work installed after the home was built have successfully been married to and integrated with the upscale and up-to-date luxuries and conveniences installed in a recent expansion and renovation. The lavishly long kitchen has a large eating area with a bank of extra-tall windows that offer private and pastoral views of the rear terrace and backyard. A vaulted ceiling with exposed trusses unites the breakfast area with the commodious kitchen well-equipped with white Shaker-style cabinetry, high quality commercial-grade stainless steel appliances, marble counter tops and back splash and an over-sized copper exhaust hood.

A flat lawn plenty wide and long enough to toss a big stick for a large-sized pooch extends from the back of the house but the main outdoor entertaining area is actually located off the side of the house where a large walled garden has blue stone terracing, a water feature and a free-standing outdoor fireplace.

The Swift clan's new Nashville residence is no less luxurious but far smaller than the family's long-time homestead in historic Hendersonville, TN. Property records we accessed indicate that Mom and Pop Swift purchased the 8,396 square foot lake front mansion about 20 miles northeast of downtown Nashville in March of 2004 for $790,000.

Previous to moving to suburban Nashville, property records also show that Mom and Pop Swift owned plain looking but well-located water front residence in the beachy community of Stone Harbor on New Jersey's Cape May that they sold in February of 2005 for $2,425,000, five-times the $485,000 they paid for the place in June of 1997.

Some of the children may recall that in late 2009, at the dewy and tender age of 20, whip-thin and curly-tressed Miss Taylor forked out around two million clams for a glassy penthouse bachelorette pad of her very own at the Adelicia, a newly-constructed luxury apartment complex in downtown Nashville. Her 4,062 square foot crib features a double height living room, four bedrooms each with private pooper, a second level media room, an open plan kitchen and a narrow balcony with city lights view that wraps around two sides of the penthouse's lower level.

Article from :

http://realestalker.blogspot.com/2011/04/your-mama-hears.html

5 Steps on Deciding on How Much to Offer-Or Ask-For Your Home.

One of the hardest, most important decisions homebuyers face is how much to offer for their home. And the glut of information on the web about real estate only makes buyers even crazier than the decision itself does. Supply, demand, foreclosure rates, mortgage rates – buyers think they need to run spreadsheets and do fancy math to make a smart offer. And THAT can be super intimidating.

But the fact is, there is a pretty short list of steps you need to take to make a smart offer – one that gets you a great value, but is also likely to be successful at getting the property. (A low offer does not make for a great deal if you don’t get the house!) And most of the same steps apply to sellers trying to set the list price that will lure the most buyers (and net them the most cash)!

Step 1: What do the “comps” say? First things first. When it comes to pricing a home, or making an offer to buy one, the ‘first thing” is the home’s fair market value. Both buyers and sellers should work with an experienced, local agent to understand what the home’s value is. Most agents will do this by offering you a look back at similar properties that have recently sold in the neighborhood – i.e., the comparable sales, or comps.


HINT: You can also find comps for a home listed on Trulia by scrolling down to the section labeled Sold Homes near 1234 Merriweather Lane on the property's Trulia listing page.


Ideally, look for comparables that are very recent sales (3 months or less before you’re listing or buying), very similar properties (i.e., same number of bedrooms, bathrooms, square footage; and similar style, condition and amenities). If you do get into contract, these may be the same comparables which will be considered by the appraiser, so looking at them before making an offer can:

(a) provide factual support for a lower-than-asking offer or for the asking price, in a negotiation, and


(b) result in a sale price at which the property will actually appraise, later on - avoiding the common glitch of the deal falling through because the appraisal comes in way below the agreed-upon price.

Also, looking at comps is the first step for locating a home’s seller and prospective buyer in the reality-based universe of current home values. The fact that you bought or refinanced the place at a given value 5 or 6 years ago is entirely irrelevant to what it’s worth today, as is the buyer’s belief that the place was worth $100K less at the trough of the market, in 2009.

Step 2: What can you afford? This step is much more critical for buyers than for sellers. (Unfortunately, sellers, the facts that you need to net a particular amount to buy your next home or pay your existing mortgages or credit card bills off has no relationship whatsoever to the price at which you should list or will sell your home.)

Buyers – it’s a must to make sure that your offer price for any given home falls within the range of what is affordable for you. This includes offering a price within the range for which your mortgage was preapproved, but also includes making sure that the monthly payment and cash you’ll need to close the deal (down payment + closing costs) are affordable in light of the particular house. If, for example, the property will require repairs for which you’ll need to conserve cash, or has HOA dues you hadn’t planned on, you may need to rejigger your offer accordingly.

Step 3: What’s your competition? (And what’s theirs?) This is another step at which it’s critical to check in with your agent. You need to know what level of competition you’ll face – whether you are a buyer, or a seller. As a seller, you can find this out by looking at things like how many comparable homes are listed in your town or your neighborhood in your general price range (your agent will brief you on this). Sellers should also consider what type of transactions their home will be up against – the more distressed properties (foreclosed homes and short sales) with which your home must compete, the more aggressive you must be with your pricing to get your home sold.

The more competition you have, as a seller, the lower you should tweak your list price to attract buyers to come see your home. (And the more buyers come to see your home, the more likely you are to get an offer!)

Buyers should also be cognizant of the competition level they will face for homes. Believe it or not, even on today’s market there are properties and neighborhoods in which multiple offers are the name of the game. Work with your agent to understand the list price-to-sale price (LP:SP) ratio , which lets you know how much under or over the asking price properties are selling for in your target home’s neighborhood; the higher the LP:SP ratio, generally speaking, the less competition there is among buyers.

Your agent can also brief you on:

(1) (1) The number of offers – if any - that have been presented on “your” property (which the listing agent will usually, gladly tell). If there are other offers, you’ll want to make a higher offer to compete successfully against them; and

(2) (2) The number of days the home has been on the market, relative to how long an average home stays on the market before it sells – the longer it has, the more pressure is on the seller, price-wise, and the less competition the buyer is likely to have. (One exception is the sweet spot scenario, when a property that has been on the market for a long time has a price reduction and gets a bunch of offers as a result! )

Step 4: How much do they need to sell (or buy) it? Buyers: Has the listing in which you’re interested been reduced at all? By how much? Has the listing agent informed you that her clients are highly motivated, flexible or have an urgent need to sell?

Sellers – most buyers are not in a high state of urgency to buy these days, given the long-term, high affordability of homes and interest rates, except when they have an urgent personal reason for moving, e.g., buyers who are relocating for work. Of course, all of real estate is hyperlocal, so it’s important to understand how motivated buyers are in your local market, generally speaking, before you set your list price.

Trulia’s new, interactive Price Reductions Map offers a number of clues to critical indicators of buyer and seller motivations in your home’s town and zip code, in just a click on the map - including:
· how many homes in your target property’s area have had at least one price reduction,

· how likely a home in the area is to have multiple price reductions.


The higher these numbers are, the stronger of a buyer’s market it is, and the more bargaining power buyers likely have. And if you’re the seller, the higher these numbers are for your area, the lower you may need to price your home to be successful at getting it sold.

Step 5: How much do you want to buy, or sell, the place? Step #4 was about taking the motivations of the folks on the other side of the bargaining table into account when formulating your offer and your list price. This step is all about you – what’s your level of motivation? Now, buyers, you certainly shouldn’t offer a price way above what the place is worth (see Step #1) just because you really, really want it, unless you have the cash to throw around. But within the range of the home’s fair market value, it may make sense to move higher within that range if you are highly motivated to get that particular property.

Sellers: think of your list price as the most powerful marketing tool at your disposal. if you really want or need to sell, get aggressive about setting your price as low as makes sense for your your home's value and local market dynamics to attract qualified buyers and help your home stand out against all the competition.

Article from Trulia Newsletter

Preparing Your House for the Market

If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance.

Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate.

Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sunshine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money.

Article from Shane Atwell at Primary Mortgage.

Insider Secrets for the 5 Stages of Buying Your First Home

Buying a home is not a discrete event; it's a process - a sequence of events that happens over time, sometimes over as long as several months or even years! While general guides to buying a home are a dime a dozen, I'm excited to share with you some insider secrets you may not have heard elsewhere - one for each stage involved in buying a home. Here's to helping you make the best decisions at every phase of your homebuying process!

Stage One: Deciding Whether It's The Right Time to Buy.
Insider Secret: The market is the least important factor you should consider when deciding whether and when to buy a home.
Why: Everyone knows affordability is at an all-time high. Home prices are low, and so are interest rates. But trying to time the market is a fool's errand; many who get caught up in that game of trying to make sure they buy at the absolute bottom will end up losing out on very, very favorable conditions.

Beyond that, the most important considerations when deciding whether and when you should buy a home are personal, not market driven. On today's market, it only makes sense to buy a place if it's going to be sustainable and work for you for at least the next 4-5 years [if your town's real estate market has been fairly recession-proof] or 7-10 years [if the housing/foreclosure crisis has hit your area pretty hard].

Against this "smart holding period" backdrop, smart buyers decide to buy when it makes sense for:

•their life plans (i.e., they are comfortable making the commitment to live in the same town, and the commitment to )
•their family plans (i.e., whether they plan to get married, have children or empty their nest in the time they plan to own the home - and the implications of these plans on their space needs and location priorities)
•their career plans (including, but not limited to: whether they have job or income security, whether they feel they will be working in the same area for the foreseeable future, and whether they want to work less or start their own business in the months or years to come)
•their financial plans (including foreseeable changes in income and expenses, e.g., kids going to college or making partner at the firm).

Stage Two: Getting Pre-Approved.
Insider Secret: Working with a mortgage broker referred by your real estate broker or agent may save you money.
Why: Bolstered by the real-life stories of a couple of bad apples, TV pundits and some consumer advocates have spun the tale of a real estate industry cartel, whereby sinister agents hook unsuspecting buyers up with shady mortgage brokers, who place them in crappy loans and kick back some bucks to the agent. I'm here to tell you, in my experience, the opposite is true the vast majority of the time.

When you work with a mortgage broker who has a strong track record of helping your real estate agent's clients out, you end up in a best of all worlds situation, nine times out of ten. First off, your agent will take you much more seriously once a mortgage broker they know and trust has run your credit, checked your income and approved you for a loan, as well as communicated with your real estate pro about your qualifications and what you can afford. Secondly, your agent can help you communicate with your mortgage broker, sometimes helping get past appraisal glitches or facilitating other workarounds, as they come up. Third, you get the assurance of working with a mortgage pro who has been vetted and vouched for by someone you not only trust, but someone who can verify that the mortgage broker has the ability to get transactions closed in the timely manner required of today's real estate sales contract. Otherwise, you may end up working with a competent mortgage broker who has a great track record when it comes to refinancing, but can't keep up with the pace and common obstacles to getting a home financed in the context of a sale.

On top of that, sometimes the relationship can help you negotiate out of a couple of line item loan fees (if your particular mortgage rep has the power to get them down at all), if push comes to shove and cash is tight to close the deal. Assuming you are working with a real estate pro you really trust, working with a mortgage broker they trust can save you, rather than cost you, money.


Stage Three: House Hunting
Insider Secret: "Distressed" doesn't always equal "discounted" - in some cases, a "regular" sale can be a deeper deal.
Why: Short sales and foreclosures have grown to comprise roughly 30 percent of the homes sold on today's market, even higher in some areas. The average sale price of foreclosed homes was 32% lower than the average sale price of non-foreclosed homes, at last count. However, it's not always the case that foreclosed homes or short sales - homes which are being sold for less than what the seller owes on their mortgage(s) - offer the buyer a fabulous discount.

Mortgage servicers and asset managers who make decisions about distressed properties are on the hook to their investors to recoup as close as possible to the current fair market value of every home they sell. Some banks even have a general rule of rejecting offers more than 10 percent or so below the home's list price, preferring instead to reduce the price by that amount and put the home back on the open market to see if any new buyers are activated by the price reduction to make an offer better than the lowball offer that was initially put on the table. On short sales, the bank is trying to get as close as possible to recovering what the seller owes - and may or may not be concerned with what the fair market value of the home is. (Nine times out of ten, there will be a big gap between fair market value and the seller's outstanding mortgage balance. If there wasn't, the seller wouldn't need to do a short sale!)

With so many distressed properties and homes with depressed values on the market, in many areas, the individual, non-distressed home sellers who are putting their homes up for sale right now are those who are very motivated to sell. Further, they are more likely to be flexible with you on everything that is negotiable, from contingency and escrow periods, to price, to repairs and included items.

Also, individual sellers can be emotionally motivated to sell to move on with their lives, get into their bigger (or smaller) house, or move on to their next job; banks, on the other hand, aren't people (!), so lack that emotional sense of urgency to get the properties sold, no matter how urgently you may think they should be trying to get rid of the foreclosed properties they own. (If you've heard the old advice that banks don't want to be in the home-owning business, I can tell you this. That is true, in a very general sense, but now they are and will be - for a long time to come. They have no emotions, have no urgent need to sell or move, and are not willing to give houses away at pennies on the dollar to get out of it, no matter what those infomercial folks say.)

Long story short: you can sometimes negotiate a better deal with an individual seller on a "regular" sale than with a bank on a distressed home sale. So, don't limit your house hunt to foreclosures and short sales, if you're looking for a good deal on your home.

Stage Four: Negotiations
Insider Secret: Your family and friends can cause you to lose your dream home.
Why: With so much information on the web and the news every day about the recession and the buyer's market, everyone seems to be an armchair economist/real estate savant. But much of that news is national and based on medians, averages and trends. That is, it might not necessarily apply to every home on the market in every city, and more importantly, it might have nothing to do with "your" particular home.

When I was a little girl, my best friend's grandfather would very carefully hand each of us a quarter, always doling it out with the sage admonition: "Don't spend it all in one place." We'd always smile, look at each other, then go ask our Moms for ten bucks apiece. In the same vein, people who are not currently in the market for a home have no idea what an individual home should "go for." If you tell your parents, church pals, or colleagues at work the blow-by-blow details of your offer, counteroffers, etc., you should expect to hear things like, "Oh, you're paying way too much!", "I think you should push them down another $10K," or "You know, you're in a better bargaining position than that." And sometimes, taking that sort of advice will end up blowing your deal. Work with your trusty real estate broker or agent to develop a smart strategy - with their experience in your local market - about what price and terms to offer. Then keep working with them to manage and maintain realistic expectations as you proceed through negotiating the contract to buy your home.

Stage Five: Escrow, Inspections and Underwriting
Insider Secret: It's critical that you attend your home inspections.
Why: When it comes to inspections, many first-time buyers expect that a home will either pass or fail. Except in a few jurisdictions where the government imposes certain condition requirements for a home to be sold, the home inspection is more about educating you, the buyer, as to the details and nuances of the home's condition than about seeing if the place hits a particular target for "good" or "bad" condition.

Home inspectors don't just look for things that need fixing, they also look to understand the home's systems and features, as well as to point out areas that will require your ongoing maintenance, highlight emergency shutoffs and other need-to-knows, and indicating where you should have specialists further inspect items of concern. Many home inspectors create vivid, detailed electronic reports - some, complete with color photos. But that's not enough!

If you're physically onsite at the home during the inspections, the inspector can physically show you the shutoffs for water, gas and electric - and how to use them. They can also point out, in person, any things that need repair, and give you some tips for maintaining the place in tip-top shape. Also, in many states, the general home inspector is legally prohibited (vs. the pest, roof or other "specialty" inspectors) from issuing a written quote or bid for repairs, to avoid a conflict of interest where they'd try to fabricate flaws in the home to get the repair job. However, the repair costs are one of the most important things a smart buyer wants to know!

If you show up, many inspectors will give you a rough range it would cost you to do various repairs, or otherwise indicate to you whether the needed repairs are "big deal" or "$10 home improvement store" fixes; some will even give you a few references to contractors they trust.

All around, you'll get much more of the detailed information you need to know whether and how to move forward with the transaction if you should up in person to the home inspections, rather than just waiting for a copy of the report to come to your email.

Article from: Tara @ Trulia

Gale Park: The New 12 South Neighborhood

Nashville Business Journal - by Eric Snyder, Staff Writer
Date: Monday, February 14, 2011, 11:23am CST

Construction will soon begin on the first round of homes in Gale Park, a 12 South neighborhood first proposed in 2007.

The community from Core Development will feature between 80 and 90 homes and townhouses incorporating several green designs, including cellulose insulation and radiant-barrier roofing.

The project was given its master permit Friday, allowing construction on the homes to begin. Core founder Aaron White said the first development phase will feature 18 homes, 15 of which have been presold. The first homes are slated for completion this summer.

Prices in Gale Park begin just under $230,000 for a 1,200-square-foot home.

The master permit was issued to Franklin-based Cute Cottage Company LLC, which will handle construction.

Home Buying Ideas for Young People: Plan Ahead

Here are five recommendations for young people who want to position themselves for homeownership.

By Marcie Geffner

Granted, few young people spend much time day-dreaming about buying their first home. They're naturally preoccupied with academics, athletics, parties, dating and future career possibilities. Nonetheless, there are a number of good reasons to start learning early in life about the costs of buying a home and the responsibilities of homeownership. For example, a college student's misuse or abuse of credit cards can preclude his or her buying a home later on.

Here are five recommendations for young people who want to position themselves for homeownership:

1. Establish good credit habits and a favorable credit history. Get a credit card and use it responsibly. Apply for an automobile loan and make your payments on time every month. If you're renting an apartment, put your own name on the lease and the utility bills and make sure the rent and the bills are paid every month. If you're already struggling with credit card debt or have large student loans, take a free workshop from the non-profit Consumer Credit Counseling Service. Call (800) 388-2227 for information.

2. Start saving for a down payment and closing costs. It's possible to purchase a first home in many parts of the country without much in the way of savings. But in high-cost housing areas, starting to save early can be enormously beneficial because you'll get the advantage of compounding interest and have a longer period of time to grow your investments. Open a savings account or a stock brokerage investment account and make regular deposits.

3. Read some books. Your local library and bookstore probably have at least a few shelves of books about financial management and buying a home. Take notes. Make a financial plan for yourself. You can learn a lot about real estate, budgeting and credit on REALTOR.com® too.

4. Research where you'd like to live. Many young people assume they'll continue living in their own home town when they get older, but people are more mobile than ever and chances are good you'll one day live in another city or even another state. Again, the library, bookstore and Web can be excellent resources for information about housing costs and homeownership opportunities around the country.

5. Tap your real estate agent relatives for advice. Parents, grandparents, aunts, uncles or older cousins in the real estate business can give you good information about the cost of housing in the area where you want to live and what it takes to buy a home. Questions to ask: Is housing affordable in this area? How much money would I need to save in order to buy a home? What advice would you give me about planning my financial future? Would you recommend some books that I might like to read about buying a home? Don't be shy. If you have a question, ask someone in a position to know the answer.

Good and Bad News Bears Down on Home Loan Rates

"Bad news goes about in clogs, good news in stockinged feet." Welsh Proverb. And there was certainly both good and bad news in last week's Jobs Report. Here's what we saw...and what this means for home loan rates.

The Labor Department reported that just 36,000 jobs were created in January, with only 50,000 jobs created in the Private sector, much lower than the numbers anticipated. However, there were upward revisions to both November and December, which added another 40,000 jobs than previously reported.

But that's not the only bit of good news in the report. The Unemployment Rate fell to 9%, down from 9.4% last month, rather than increasing as had been expected. In addition, the U6 or "real" rate of unemployment, which includes discouraged workers and those who have accepted part-time employment for economic reasons, fell to 16.1%, from the previous month of 16.7%...and reflects the lowest level since April 2009!

So what does all of this mean when it comes to home loan rates?

It's important to remember two things:

First, the Fed's goals for their current Quantitative Easing policy (dubbed QE2) where $600 Billion is being injected into the economy are to (1) boost Stock prices, (2) create inflation, and (3) lower the unemployment rate.

Second, while these goals are designed to stimulate our economy and keep our recovery moving forward, they are also unfriendly to Bonds and home loan rates.

In recent weeks, we've seen evidence of all three goals: Stocks been improving, the unemployment rate has declined, and we've seen an increase in global unrest of late, not just in Egypt, but in other parts of the world as well... and much of this centers around runaway inflation in commodities and food.

This means that the old trading saying, "Don't Fight the Fed" is still ringing true. If the Fed wants to accomplish its three QE2 goals at the expense of Bonds and home loan rates, they probably will.

If you have been thinking about purchasing or refinancing a home, this is a great time to get started! Home loan rates are still very attractive, so call or email me if you want to talk about your situation.

Newsletter from Shane Atwell at Primary Mortgage