By Tara-Nicholle Nelson

Today’s home sellers have a hard row to hoe, as my Mom would say. Home values have dropped, the market is flooded with competition and even if a buyer does come along, a record high number of deals fall through. On top of that, they face the age-old conundrum of having two seemingly conflicting aims: they want to get their homes sold, fast, but also want – and need – to squeeze every single possible dollar out of it.

While it’s tempting to price your place on the high side and ‘test the market’ or ‘negotiate down,’ overpricing your home can actually deter buyers, cause your home to lag on the market and eventually even expose you to the risk of being perceived as desperate and receiving lowball offers.
Here are 5 ‘cures’ to the temptation to overprice your home, all of which can help you max out the chance that your home will sell.

1. Check the Comps! “Comps” is real estate lingo for comparable sales – the nearby, similar homes that have recently sold. You might think that your taste level, aesthetic style and home maintenance practices are vastly superior to those of your neighbors – and you might be right. But this will be the single largest purchase your home’s eventual buyer will ever make, and trust me – they will be doing the research. The small contingent of urgent and qualified buyers who are active on today’s market do not want to overpay for a home, and most will view your home as overpriced and not worth the hassle (or the haggle) if it is out of whack with the recent sales prices of similar homes.

Similarly, appraisers will use these numbers when figuring out your home’s value. Even if you do get an offer at a higher-than-justified price, if the buyer’s appraiser finds that your home is overvalued compared to other nearby recent sales, it can cause major delays in your buyer’s mortgage process – or derail it altogether.
Work with your agent to find and evaluate the recent sales in the area, and to ensure that your home’s list price makes sense vis-a-vis the comps.

2. Get inside the minds of the local home buyers. The vast majority of buyers – over 90 percent – start their house hunting online. And what most of them do is type in a price range, a range of bedrooms and bathrooms and a geographic area, then spend dozens of obsessive hours perusing hundreds of listings.
Given the flooded market and buyers’ busy lives, many will screen your home off their interest list in a New York minute if it seems overpriced from its online listing. If that one-inch picture and the number of beds, baths and square feet either (a) doesn’t make it into their search results because the price is so much higher than what most local buyers want to spend on a home with those criteria, or (b) seems underwhelming, for the price, compared to the other online listings of similar homes, prospective buyers will never even make it into your home, and all your stunning staging and crave-able curb appeal will never have the opportunity to work their magic.

Local agents have an inside track on what local buyers care about and what they will and will not spend. Talk to your agent about it, but don’t forget to actually listen to and consider what your agent has to say! If you don’t trust what an agent is telling you about where you should list your home, talk to several agents – if the consensus is a recommended list price range lower than what you had in mind, that’s a sign you should reconsider.

Also, search for similar homes to yours on Trulia, to see how it would stack up against similar listings online at the price range you have in mind. That’s where local prospective buyers will see it (and screen it in or out) first.

3. Visit competing Open Houses. Buyers do not shop for homes in a vacuum. They’re out there looking at dozens of homes – or more – to make sure they’re (a) getting the best deal possible, and (b) not missing ‘the one.’ So, while viewing a thumbnail image of your competition and seeing the list prices of other homes online is informative, it is even more useful to walk through the actual properties with which your home is competing, in living color.

Before you put your home on the market, take a few hours and visit nearby Open Houses. This exercise is the most vivid way to get a reality check about what you’re up against and what your home’s strengths and weaknesses are compared with the other homes buyers will see, which will go a long way in getting you to the right asking price. Even if you are unpleasantly surprised at how nice the neighboring homes are at low prices, taking this information in before you list your home is much less painful than waiting months for the market to give you this education (in the form of no or uber-low offers).

4. Get an inspection – in advance. Home buyers have long used the home inspection as a negotiating tool to get the seller to come down on the sale price mid-stream. Get ahead of the game by getting your own inspection(s) – talk with your agent about which ones are appropriate – and getting the skinny on your home’s condition before you list it. Keep in mind that you will likely need to provide any written professional inspections you obtain before listing your home to the buyer under your state’s real estate disclosure laws.

You might be able to repair some things at relatively low cost and include the recent improvements in your marketing. Alternatively, you can set and negotiate pricing based on any condition issues or needed repairs you want to pass down to the buyer. This empowers you to get to a final price that aligns with market conditions and the condition of your home without taking massive mid-escrow hits on pricing. It also empowers you to offer a discount for needed fixes up front, when the price break has the most power to help attract bargain-seeking buyers.

5. When in doubt, go low. An overpriced home, in most cases, will cause a lot more problems in your real estate journey than an underpriced one. Think about it: an overpriced home just sits on the market with little or no buyer interest until the seller cuts the price. And many interested buyers just sit, waiting for that price cut, seeing it as a cue to make an even lower offer.

Now, consider the opposite end of the pricing spectrum: you start with a lower price than you want, but one that is supported by the comps in your market – or even goes a tad bit lower than recent homes have sold for. Lots of buyers are attracted to your house, in part because it looks like a great value for the price. You end up with multiple offers, which gives you the upper hand in negotiating a higher price.

The moral: if you aren’t sure about what price to place on your home, go a little bit lower than the recent comps sold for. Insiders know from experience that you’ll sell your home faster this way – and at a better price than if you overprice it out of the gate.

These steps can help you get out of your own way, get a bird’s eye view on the market and see your home as buyers will see it. And that’s a reality check that can make the difference between selling your home and not.

by Carla Hill

According to the latest report from the National Association of Realtors Pending Homes Sales Index, pending home sales are at the highest level in 19 months.

What has precipitated this rise? Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. "Housing affordability conditions are at a record high and there is a pent-up demand from buyers who’ve been on the sidelines, but contract failures have been running unusually high. Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage," he said.

There was a 7.3 percent jump in contract signings in November, up 5.9 percent from the year prior. The last time to market had this many signings was in April 2010 when the deadline for the first time home buyer tax credit was

"November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead," Yun added.

Regionally, the largest rise was seen in the West, which has previously struggled. It rose 14.9 percent for the Month, giving it a boost of 2.9 percent of November 2010.

The Northeast was close to double-digit gains with a solid 8.1 percent rise. It is still 0.3 percent below last year’s figures. The Midwest is doing well. It is 9.5 percent above November 2010 for pending sales and rose 3.3 percent for the month.

Finally, the South rose 4.3 percent, rising 8.7 percent above last year’s numbers.

Other factors that could have contributed to this rise are recent declines in the unemployment rate. The rate has lingered about 9.0 percent for months, but fell below this mark in recent weeks. Holiday hirings were up, but so were hirings in other sectors.

Consumer confidence peaked 10 points in November to the highest rate seen since the end of the recession and retailers boasted the best holiday sales figures in years. This could signal a return of buyers to the housing market.

Published: January 4, 2012

by Phoebe Chongchua

For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.

Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further.

These historically low mortgage rates aren’t necessarily rapidly selling homes. Across the country contract signings have been down. According to USAToday.com, “July’s index fell 5.8% in the Northeast, 3.7% in the Midwest and 2.4% in the West. It rose 2.6% in the South.”

The index of sales agreements, tracked by the National Association of Realtors, showed a 1.2% drop down to 88.6 (100 is considered healthy).

Still the opportunities for homeownership keep getting better. Some markets are more affordable than ever; prices have been cut in half in some metro areas.

Of course, getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% downpayment coupled with a high credit score are required by some lenders.

Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower’s outstanding debts. The company’s website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you’ve never seen them before.”

Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.

According to the company, “The supplemental information the CoreScore credit report provides will expand your view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”

Among the information that the CoreScore report will deliver to lenders are the following:

1. Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies

2. Property legal filings, such as notices of default

3. Property tax amounts and payment status

4. Estimated market values on all U.S. properties owned

5. Rental applications and evictions

6. Inquiries and charge-offs from pay-day and online lenders

7. Consumer-specific bankruptcies, liens, judgments and child support obligations

With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers’ debts and credit behavior, it’s vital for borrowers to understand the most important qualifying factors that influence lenders.

The chief concern is the ability to repay the loan followed closely by the willingness to repay.

Borrowers can place themselves in better standing with lenders by doing two key things: paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio. Secondly, lenders examine borrowers’ track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.

By: John Morell, This Old House magazine

Use Less, Spend Less

So you’ve swapped your incandescent lightbulbs for CFLs, turned down the thermostat, and only wash clothes on cold. Then why are your utility bills still so high? Air leaks are likely culprits, but so are "phantom" power suckers, such as flat-screen TVs, which draw energy even when they’re off.
To help pinpoint exactly where you are burning through resources—and cash—we polled energy consultants across the country. The simplest route, they agree, is to have a professional auditor detect leaks with sophisticated tools, such as blower doors and infrared cameras. Your local utility may offer this service for free, but if it doesn’t, the cost is typically $400. Or you can do some easy tests yourself and put your money toward addressing the problems. "There are many steps homeowners can take before calling a pro," says Jeffrey Gordon, spokesperson for the New York State Energy Research Development Authority. "With a little knowledge and determination, you might be surprised by your next power bill." Read on to learn how to spot and stop some of the biggest energy wasters.

Drafty Windows

The problem: Outside air comes in and warmed air escapes through leaky frames, accounting for 10 to 25 percent of your heating costs.
How to spot it: On a blustery day, close all windows and exterior doors and the chimney-flue damper. Light a stick of incense, move it around the perimeter of each window, and watch for air that interrupts the delicate rise of smoke.
How to stop it: First check the window from the outside, paying close attention to where its casing meets your home’s siding. "This is an area that often doesn’t get the kind of attention it needs," says Ted Kidd, an energy consultant in Rochester, New York. Scrape out any cracked or dried caulk, and apply a fresh bead of paintable acrylic latex, such as DAP’s Alex Plus. On the inside, add new weatherstripping. For a few hours’ work, you can make an old wood double-hung airtight using a kit like the Easy-Stop Weather-Stripping System ($74 per window; advancedrepair.com). The kit contains a silicone flap for the bottom rail of the lower sash and a pile strip for its top meeting rail. Also included are new paintable cellular PVC parting beads (narrow bands that separate the upper and lower sashes) with built-in insulation.
The payoff: Shave up to $20 off your annual energy bill for each window you weatherize.

Mystifying Utility Bill

The problem: Most bills don’t break down energy consumption by category, such as heating, cooking, and lighting, making it almost impossible to target where you are overspending.
How to spot it: Sign up for one of the dozens of new pilot programs offered by regional utility companies to help homeowners pinpoint and control their usage with a digital energy-management system.
How to stop it: Hook major appliances and electronics up to smart plugs, or relays, which transfer information to a Wi-Fi–enabled control panel that sits at a central location in your home, such as the kitchen counter. This device—it can also switch appliances on or off and adjust a programmable thermostat from home or remotely via a computer or smartphone—gives you a real-time look at how much energy you’re using in kilowatt hours and dollars. "You can determine immediately what’s costing you the most money and decide if it’s worth keeping that item plugged in," says Paige Layne of Duke Energy, which is currently supplying customers with Cisco’s Home Energy Controller (shown at left) free of charge in select markets in the South and Midwest. If your utility isn’t offering such trials, you can buy a monitoring kit at an electronics store, such as Best Buy, for as little as $100.
The payoff: Save 10 to 25 percent on your electric bill by tracking down unwanted energy hogs and using the consumption data to change your habits.

Damaged Fireplace Damper

The problem: Ten to 20 percent of warmed air from your home can be drawn into the chimney flue, passing around a rusted, stuck, or loose-fitting damper.
How to spot it: With the damper closed, hold a lit candle inside the firebox and watch the flame. If it gets beaten around or blown out, air is flowing up the chimney.
How to stop it: Hire a chimney sweep. In addition to giving the chimney a good cleaning, lubricating and checking the damper is usually part of the $90 to $200 service call. In the off-season, when the fireplace isn’t in use, you can seal the flue completely with a balloonlike plug, such as the Fireplace Draftstopper ($55; batticdoor.com), that you inflate and insert up the chimney just in front of the damper. When cold weather starts again, simply deflate the plug for easy removal.
The payoff: Reduce your annual heating bill by up to $500

"Phantom" Appliances and Electronics

The problem: Devices with a so-called standby mode that sap power even when they aren’t in use can account for 10 percent of your electricity costs.
How to spot it: If it has an indicator light, a charger or AC power adapter on the cord, or a digital clock, it’s a phantom. When in doubt, plug the device into a Kill A Watt detector (shown below, $22; amazon.com), which measures exactly how much power is being drawn from the outlet when the device is supposedly "off."
How to stop it: Put phone chargers, the flat-screen TV, and computer and stereo equipment on power strips. "That way you can easily flip a switch and cut power directly from the outlet before going to bed," says energy consultant John Meeks of AppleBlossom Energy in Concord, North Carolina. Plug devices that are best left on 24/7 directly into dedicated surge protectors, he says; your DVR, for instance, needs power to record programs when you aren’t around to watch them. And if you get phone service through the Internet, you’ll want to keep your router juiced, too.
The payoff: Save $55 a year just by cutting standby power to your DVD-VCR player, stereo tuner and CD player, and video-game console.
Tip: To cut your dishwasher’s energy usage in half, pull out the racks after the final rinse cycle and let your dishes air-dry.

An Old Tank-Style Water Heater

The problem: Heaters that are more than 10 years old tend to be lined with fiberglass insulation, which is less effective at preventing heat loss than the foam used today.
How to spot it: Check the heater’s date of manufacture printed on a sticker or metal plate on the side of the tank. Next, touch the tank. If you feel warmth, it’s lacking insulation.
How to stop it: Wrap the tank in a precut blanket with an insulating value of at least R-8. Some utilities offer rebates on the $10 to $20 jackets and will even install one for free. To further boost efficiency, fit foam sleeves or insulating tape around pipes. "If your hot-water lines are exposed, that’s a lot of energy lost as water travels through them," says Logan Brown of Efficiency Vermont, a nonprofit energy advisory agency. Covering cold lines keeps condensation from beading up on the pipes, helping to prevent mold and mildew in your basement, says Brown.
The payoff: An insulating blanket alone can reduce annual water heating costs by up to 9 percent.

Under-the-Door Air Infiltration

The problem: While most homeowners weatherstrip around the jamb, they often overlook the area beneath an exterior door.
How to spot it: Close the door on a piece of paper placed on the threshold and give it a tug. If it pulls out easily, air is passing through.
How to stop it: Install a sweep seal. This metal strip with a piece of vinyl attached uses spring action to close the space between the threshold and door. There are also foam, vinyl, and felt seals that fit under the door or on the threshold to prevent air transfer. Whichever type you choose, it’s an easy DIY installation that’ll cost just $10 to $20.
The payoff: Coupled with weatherstripping, a sweep seal can prevent 11 percent of the outside air that typically seeps in around exterior doors from getting into interior spaces.

Leaky Ductwork

The problem: After years of service, the adhesive on tape that seals joints between duct sections can dry out, allowing heated or cooled air to escape. Damage can also occur when homeowners or tradespeople access or work in areas where ducts are installed, such as crawl spaces, attics, and basements.
How to spot it: With the furnace or AC on, shine a high-powered flashlight on ducts, especially at junctions where they connect with registers. "If you see where dust on the exterior of the ducts has been blown away, that’s usually the sign of a leak," says Meeks.
How to stop it: Patch small holes or misalignments with a water-based mastic sealant and mesh tape. Use HVAC foil tape to seal joints between sections.
The payoff: Cut your heating bill by 3 to 10 percent by reducing air leakage by up to 15 percent.

Overworked Fridge

The problem: Your fridge never gets a day off. Over time, wear and tear on the door’s rubber gasket, as well as built-up dirt and dust on coils, erode its efficiency and make it more expensive to operate.
How to spot it: Close the refrigerator door on a piece of paper. If you don’t feel resistance when you pull it out, the gasket seal is broken and chilled air is escaping. Mold or moisture on the gasket are other telltale signs, says Brown.
How to stop it: Order a new gasket from the fridge manufacturer for $60 to $90, depending on the make and model. Remove the damaged gasket and install the replacement yourself, following the manufacturer’s instructions. While you’re at it, use a long-handled duster to clean the exposed coils located underneath or on the back of the appliance. For a fridge more than 20 years old, no amount of maintenance will bring it up to today’s efficiency standards. It’s better to retire it and invest in a new, Energy Star–qualified model. KitchenAid’s new Architect Series II French door fridge even goes a step further—it has an efficiency rating that’s 20 percent higher than the U.S. Department of Energy standard.
The payoff: Replacing the gasket and cleaning the coils can improve your fridge’s cooling abilities by 25 percent. Swapping a 1980s fridge for a new, Energy Star one can shave more than $100 per year off your electric bill and nearly $200 annually if you have a 1970s model.

Exterior Wall Openings

The problem: Holes for sewer and water lines, exhaust vents, and cable and phone lines are typically rough cut and uninsulated, so warmed or cooled air from inside your house escapes and outside air seeps in.
How to spot it: Use a handheld infrared thermal leak detector, such as Black & Decker’s TLD100 ($49.99; blackandecker.com). Pass the device over the solid wall near the hole, then the hole itself. If you see a significant difference in temperature, you’ve got an air leak.
How to stop it: Fill minor gaps of less than ¼ inch with silicone caulk. For larger voids up to 1 inch wide, use expanding polyurethane foam insulation. The long applicator straw on cans of spray-foam sealants, such as Great Stuff, are particularly handy for accessing hard-to-reach areas inside sink vanities and behind heavy washers and dryers. "If you’re dealing with a gap near a combustible device, like a fireplace, make sure you’re using products approved for high temperatures," says Brown.
The payoff: Prevent 17 percent of treated air from escaping your home by sealing gaps around exterior penetrations.

An Attic Hatch that’s not Airtight

The problem: Little more than a thin sheet of plywood (so that it can easily be pushed up and out of the way), an uninsulated hatch can suck as much treated air out of living quarters as a fireplace chimney.
How to spot it: With all windows and doors closed, turn on the air conditioner or furnace and do the incense-stick test around the hatch; watch for smoke seeping between the access panel and the wood trim frame it rests on.
How to stop it: Secure rigid foam insulation to the back side of the hatch with duct tape, and affix foam tape around the edges of the panel to create a gasketlike seal. For pull-down stairs, add an insulated fabric housing, such as the Attic Tent (starting at $200; attictent.com). Secured to the attic-side framing with staples, the tent has a zippered hatch for easy attic access.
The payoff: An airtight hatch leading to a well-insulated attic can save you 30 percent on your heating bill.

Uninsulated Switches and Outlets

The problem: A thin metal or plastic plate isn’t enough to prevent air from getting through what’s basically a big hole in the wall.
How to spot it: Remove the plate and cover the opening with a ply of tissue affixed to the wall at the top with painter’s tape, like a curtain. If the tissue billows, you’ve got a leak.
How to stop it: Insulate the opening with a precut foam gasket, about 10 cents each at home centers. Just fit the gasket over the opening and replace the cover. For extra protection for outlets when they aren’t in use, insert plastic child-safety plugs.
The payoff: Two percent off heating and cooling costs.

Outmoded Furnace

The problem: While gas-fired furnaces can last 20 years or more, ones made before 1992 are only 55 to 78 percent efficient, compared with up to 97 percent for today’s.
How to spot it: If your furnace has a pilot light, it’s likely more than 20 years old and only about 60 percent efficient. If this telltale sign isn’t present, ask an HVAC pro to inspect the furnace and assign it an annual fuel utilization efficiency (AFUE) rating based on its age. An AFUE of 80, for instance, means that 80 percent of the fuel burned is converted into heat for your home.
How to stop it: Replace an old furnace with a properly sized modern unit with a high AFUE. Manufacturers now display the rating right on the furnace so that consumers can easily compare the efficiency of various models. Expect to pay $2,500 to $4,000, including installation. On the high end are ultraefficient furnaces with a rating of 97, such as Trane’s XV95. Its variable-speed fan motor adjusts to provide a consistent flow of warm air, making your home more cozy and saving you extra cash over the long haul.
The payoff: Cut your heating-fuel bill by more than 30 percent by replacing a 60-percent-efficient furnace with one that’s 97 percent efficient.

Posted by jim_gillespie

I just read an article that made me laugh. I have been in real estate for 36 years the CEO of Coldwell Banker since 2004 and I have seen my share of foolish articles and headlines. But this one tops the list: Why Getting Rid Of Realtors Will Save The Housing Market

I hope no one believes anything in the article.

Sellers realize a real estate agent is extremely important today. In fact, according to real estate industry analyst Real Trends, the average commission paid to a professional sales associate has actually gone up because selling a home is more difficult today than it was five years ago. There will be approximately 30% fewer homes sold this year than in the peak year of 2006.

And you want to use an agent. Since 2004, the amount of homes that were For Sale By Owner (FSBO) has dropped from 14% to 9% of all homes sold. And the median price for all FSBOs last year was $140,000 compared to $168,000 for those who started as a FSBO and then hired an agent to get their home sold. That’s a 17.5% increase. Clearly doing it yourself leaves money on the table largely because pricing the home correctly is critical.

Buyers and sellers today are anxious, confused and nervous about engaging in the home buying and selling process. We know that both anecdotally and factually through a survey we did. Where once there was a lot of excitement in the process, today consumers are rightly cautious. Let’s face it, economic conditions impact all of us.

But through all of this, buyers are buying and sellers are selling. And they are doing so largely because of lifestyle reasons. Getting married, having kids, getting a job transfer or promotion, downsizing to a smaller home. These are just some of the reasons people continue to buy or sell today.

And clearly real estate agents play a major role in those transactions. They obviously help set the sales price, market the home, and guide you through every step of the process. And in most cases, they are paid a commission at the conclusion of the sale. And that commission is based upon the sales price, not “added on” as the article indicates.

I could go on and on about this article, but it’s just so off-base that I think 389 words on it is enough! So what do you think?

By Tara-Nicholle Nelson

Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!

So, you hire a home inspector, but it seems like they’re speaking an entirely different language – riddled with terms like “serviceable condition” and “conducive to deterioration” – about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer – and homeowner.

1. How bad is it – really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much – the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.

I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!

In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).

2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is – “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 – tops.” And that’s useful information to know – it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.

And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it order to get your repair bids and estimates in hand before your contingency or objection period expires.

And same goes for any further inspections they recommend – if neither you nor your agent knows a specialist, ask the general home inspector for a few referrals.

3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or further inspection – or seems like it might be on its last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”

This question positions your home inspector to help you:

· understand what does and doesn’t need to be repaired,

· prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),

· get used to the constant maintenance that is part and parcel of homeownership, and

· understand the importance of having a home warranty plan.

4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.

Your best bet is to, at the end of the inspection and while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)

5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher – and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.

MCLEAN, Va., — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows the 30-year fixed-rate inching upward for the third consecutive week to 4.87 percent but well below its average of 5.21 percent a year ago, the highest it had been since August 13, 2009.

30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending April 7, 2011, up from last week when it averaged 4.86 percent. Last year at this time, the 30-year FRM averaged 5.21 percent.

15-year FRM this week averaged 4.10 percent with an average 0.7 point, up from last week when it averaged 4.09 percent. A year ago at this time, the 15-year FRM averaged 4.52 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, up from last week when it averaged 3.70 percent. A year ago, the 5-year ARM averaged 4.25 percent.

1-year Treasury-indexed ARM averaged 3.22 percent this week with an average 0.7 point, down from last week when it averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.14 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Mortgage rates were little changed after an encouraging employment report from the Bureau of Labor Statistics. The economy added 216,000 jobs in March and the unemployment rate fell for the fifth consecutive month to 8.8 percent marking the lowest rate in two years. Additionally, the private sector has gained 560,000 workers in the first quarter of this year, which represents the largest quarterly increase since the first quarter of 2006."

Published: April 8, 2011

By JIM BUCHTA, Star Tribune
Last update: March 24, 2011 – 5:01 PM

While home sales across the country continue to fall, the housing market in Minnesota is showing some signs of momentum. Or at least stability.

In Minnesota, there were 7,284 home sales during January and February, a 5.7 percent increase over the same period last year, according to the Minnesota Association of Realtors.

Nationwide, the results were less promising. During the first two months of the year, home sales have remained relatively flat compared to 2010. However, on a seasonally adjusted basis, February sales took a turn for the worse, falling 9.6 percent, the National Association of Realtors reported Monday.

"Home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers," said Lawrence Yun, chief economist for the national Realtors group. "This tug and pull is causing a gradual but uneven recovery."

The latest data shows just how volatile the housing market is, both locally and nationally, as the economy struggles to regain its footing and the mortgage industry faces an overhaul. Economists had expected sales to fall only about 4 percent, causing some to wonder if the worse-than-expected sales last month mean that a U.S. recovery is still far away.

Clearly, the biggest obstacle standing in the way of anything that looks like a recovery is the foreclosure crisis, which dominates the market in every corner of the nation and continues to put downward pressure on home prices.

Across the country, prices fell to the lowest level in nearly nine years. Even in Minnesota, where sales have picked up in recent months, sale prices continue to fall. During February the median sale price of all closed sales fell 8 percent to $129,900, luring bargain shoppers into the market.

"Home buyers in Minnesota have recognized that there are outstanding values in the marketplace," said Chris Galler, chief operating officer of the Minnesota Association of Realtors.

While statewide sales figures showed gains, that’s not true everywhere in the state. The Realtors association divides the state into 13 regions that correspond to the economic development regions established by the Minnesota Department of Employment and Economic Development.

During January and February four of those regions showed steep declines in sales and only five showed an increase in the median sale price. The regions that did well have strong regional economies tied to a growth industry.

Farmers, for example, are doing particularly well right now because of strong demand for corn and wheat. So in the northwest region, which includes the fertile Red River Valley, sales rose 27 percent.

The south central region, which includes Mankato, saw similar gains. Not true for areas that rely on manufacturing, which was clobbered by the recession. In the Arrowhead region, which includes Duluth, sales were down 10.9 percent. Agents in that part of the state have been anxiously awaiting the reopening of two iron mines.
"That area hasn’t had a lot of changes or new people moving in," Galler said. "It’s hard for prices to increase; demand is still the key."

The same factors apply in the Headwaters region, where sales fell 35 percent and prices were down 34 percent. Data for the report is provided by agents who are members of the Regional Multiple Listing Service.

In some communities, especially small, rural towns, agents don’t subscribe to the service. Galler said that the report still captures the bulk of transactions in the state.
In just the seven-county metro area, where the vast majority of transactions are included in the report, the number of closed sales during January and February rose 3.9 percent.

Though January and February are typically the slowest months of the year, analysts pay close attention to sales activity during these months because they are on the cusp of the spring buying season, which typically starts in late February and early March.

Agents say that this year harsh weather kept many buyers inside. That’s evident judging by data released earlier this month by the Minneapolis Area Association of Realtors, which said that in the 13-county metro area, pending sales — an indication of future closed sales — had fallen more than expected compared with last year at this time. And according to a weekly report released Monday by the Minneapolis association, pending sales in the 13 county metro area were down 21 percent.

Brad Fisher, a sales manager for Edina Realty and the president of the Minneapolis Area Association of Realtors, said local buyers and sellers need to brace themselves for declines in sales at least through early spring. Sales through the first half of 2010 was buoyed by the federal home-buyer tax credit, which expired last April.

"We pulled that spring business from the second quarter into the first quarter," Fisher said.

By Mary Beth Breckenridge

RISMEDIA, March 5, 2011—(MCT)—What’s cooking in kitchens? Simpler styling, hidden appliances and a bit of color to make life interesting, to name just a few things. If you’re getting ready to update your kitchen, you may want to pay attention to the following trends that are popular in kitchen showrooms right now.

Clean lines
Fancy is fading. Kitchens are moving away from ornate looks such as Tuscan and French country in favor of more transitional design, a trend Betty Nairn of Cabinet-S-Top in Granger Township, Ohio, calls “simplistic luxury.”

The move toward clean lines and less ornamentation is due at least in part to homeowners thinking ahead, said Debra Shababy of Studio 76 Kitchens and Baths in Twinsburg, Ohio. Many are looking toward selling their homes as the economy improves, and they want their kitchens to appeal to a broad range of buyers.

Contemporary design is gaining interest, too—even in the Midwest, a region long tied to the traditional. Barbara Dillick of Kitchen Design Group in Bath Township, Ohio, figures people have become more comfortable with the spare, sleek look because they’ve been exposed to it through magazines, TV shows and upscale hotels.

Built-in dining
Eat-in kitchens are still in demand, but where we do that eating has changed. The bar-style counter is still popular, but it’s giving way in many new kitchens to an extension of the counter that looks more like a table.

Sometimes the extension is counter height; sometime it’s higher or lower. What sets it apart from bar seating is that it’s designed so the diners sit around the edge and face one another, rather than sitting in a line.

The idea of trading a table for a counter extension makes some homeowners nervous initially, Kitchen Design Group’s Deanna Carleton said. But the setup has advantages: It saves space, the extension can do double duty as an extra buffet surface and the deep base that holds the countertop provides a good amount of storage.

Safety, sustainability
More than ever, consumers are paying attention to the materials that go into their kitchens, Shababy said.

She said many respond positively when she suggests cabinet finishes with low levels of volatile organic compounds, vapors that contribute to indoor air pollution. They also like cabinets that are joined with dowels instead of glues containing formaldehyde.

Safety features are popular, such as lockouts that prevent stove burners from being turned on accidentally and mechanisms that keep drawers and cabinet doors from slamming on little fingers, Shababy said.

And people are leaning toward energy-saving features such as LED lights, as well as natural products such as wood floors and stone countertops. Granite is still the top choice for countertops, especially since common types have become affordable for most people, the designers agreed. But quartz—stone chips mixed with binders and colorants—is coming on strong, they said.

Lighting
Kitchen lighting isn’t just a matter of function anymore. It’s also an expression of personality, Carleton said.

Hand-blown glass shades on pendant lights, contemporary drum shades and elegant chandeliers are all ways homeowners can infuse their style into a kitchen without making a big commitment. After all, it’s easier and cheaper to change lighting fixtures than it is cabinets or countertops.

Layers of light continue to be common in kitchen design—for example, a ceiling fixture combined with under-counter task lighting and ambient lights behind a glass-front door. But gimmicky lighting schemes such as lighted toe kicks aren’t so popular, Dillick said.

LEDs are finding their way into the kitchen, mainly in under-counter lighting but also in recessed ceiling lights. They’re available in both cool and warm lights to fit different decors and preferences.

Nairn has also seen a big preference for natural lighting via windows, skylights or reflective light tubes.

Refrigerator options
The depth of the typical refrigerator poses a design challenge, particularly in smaller kitchens. Manufacturers have responded with shallower appliances and drawer models, which are often used in combination in the same room.

Counter-depth refrigerators are easier to fit into a kitchen because they don’t jut out into the room. But even though they’re often taller, they typically have less storage space, Nairn said. Some designers are dealing with space shortage by incorporating drawer refrigerators or freezers into the cabinets to hold additional food. Shababy said this kind of arrangement makes sense only when the drawer holds foods that are used mostly in a particular part of the kitchen—for example, a drawer for vegetables next to the sink where they’re cleaned and prepared.

Bars
Bars are coming out of the great room and into the kitchen. Dillick said many of her company’s clients are requesting bar areas in the kitchen where they can store everything in one convenient spot. Often, they’re taking out kitchen desks to free the space.

Bar cabinets that look like pantries are popular as well. Often they’re outfitted with a wine or beverage refrigerator; storage space for glassware, knives and a cutting board; and sometimes a sink.

Color
Most homeowners still tend toward the safe and neutral in their kitchen’s more permanent items—cupboards, countertops and flooring. But that doesn’t mean kitchens can’t be colorful.

Walls are sporting bold hues such as persimmon or pomegranate, Dillick said. Accessories and appliances bring spots of color, such as a range with colored knobs and a cobalt oven interior that “people fall in love with,” she said. It’s also popular to work a colorful painted cabinet or two in among white or natural wood cabinets to add a bit of interest.

Dillick has also seen the comeback of window seats, which provide the opportunity to add color in the form of fabric. Upholstered seats, pillows and window valances all add a bit of color and softness, which are often lacking in a room filled mostly with hard surfaces.

Individualism
All of the kitchen designers were hesitant to talk in terms of trends, because they believe a kitchen’s design should suit the individual. Kitchens are places where we spend a lot of time, so it’s more important to have what you like, not what’s popular, they said. “Really, it’s up to you,” Shababy said. “It’s whatever makes you happy being in your kitchen.”

(c) 2011, Akron Beacon Journal (Akron, Ohio).

by Broderick Perkins

It’s a good time to buy a home or invest in a property.

With so many distressed properties on the market, housing affordability has jumped to levels not seen in 20 years.

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the fourth quarter 2010, reveals that 73.9 percent of all new and existing homes sold were affordable to families earning the national median income of $64,400.

That record-setting level beat the last record high of 72.5 percent set during the first quarter of 2009. It was also the eighth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

"Today’s report shows that housing affordability at the end of 2010 was at its highest level since we started computing the HOI," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB).

Unfortunately, tight money makes it tough to take advantage of low prices, likely to get even lower.

"However, while this is good news for consumers, both home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales," Nielsen added.

Where the bargains are

With 93.5 percent of all homes sold affordable to households earning the area’s median family income, the Indianapolis-Carmel, IN area was the nation’s most affordable large housing market.

Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, OH-PA; Syracuse, NY; Warren-Troy-Farmington Hills, MI; and Detroit-Livonia-Dearborn, MI.

Affordability was even higher in the smaller housing market of Elkhart-Goshen, IN, where 97.0 percent of homes sold during the fourth quarter of 2010 were affordable to families earning a median income of $58,600.

Other smaller housing markets with exceptionally affordable homes were Lansing-East Lansing and Bay City MI; Kokomo, IN and Mansfield, OH.

Where the bargains aren’t

The least affordable major markets were New York-White Plains-Wayne, NY-NJ. In New York, only 25.5 percent of all homes sold during the quarter were affordable to those earning the area’s median income of $65,600.

Other major metro areas near the bottom of the affordability index were in California — San Francisco-San Mateo-Redwood City; Los Angeles-Long Beach-Glendale; and Santa Ana-Anaheim-Irvine, as well as and Honolulu, HI.

But housing in California markets may be as affordable as it’s going to get if investor buying in January 2011 is any indication.

Real estate information service DataQuick reported the median sale price of single-family homes in San Mateo County in January saw the biggest yearly price decline since June 2009 while the adjacent Santa Clara County’s (Silicon Valley) home prices remained flat on an annual basis.

Cash buyers, typically investors, made up more than 25 percent of January’s buyers for all types of homes in Santa Clara County, a record in DataQuick statistics going back to 1988. In San Mateo County, 25.4 percent of buyers were making all-cash deals, compared to the record 25.3 percent set in February 2010.

Absentee owners, again, typically investors, made up just more than 17 percent of buyers in the two northern California counties, a record for Santa Clara County and a near record for San Mateo County.

Elsewhere in California NAHB’s HOI reported the Santa Cruz-Watsonville, CA area was among the least affordable smaller metro housing markets in the country during the fourth quarter.

In Santa Cruz, 45 percent of the homes were affordable to families earning the median income of $84,200.

Other small metro areas ranking near the housing affordability bottom included more California towns, San Luis Obispo-Paso Robles and Santa Barbara-Santa Maria-Goleta, as well as ; Laredo, TX and Ocean City, NJ.

Published: March 3, 2011