7 Signs It's Time To Buy A House

1. Interest rates are good.

When interest rates are low, it's a good time to buy because that means you'll be paying less in the long run. Interest rates are looking good right now but they're going to be rising soon. Historically low rates right now are projected to creep up to 5 or 6% within the next year.

2. Still living with mom and dad

 

There’s nothing wrong with moving back into the family home after college or when times get tough. A recent study shows 85% of college graduates move back home once they’re finished with school. You’re not alone but make sure you’re being smart about finances and take advantage of the saving power you possess! You’re probably not paying rent, there’s food in the refrigerator so you won’t starve and you’re not paying any bills like electric, trash or water. Buckle down and make a financial plan for yourself, you may be able to afford a place of your own sooner than you thought. As a first time home buyer there a programs out there to help you and something called an FHA loan you should be taking advantage of.

 

When interest rates are low, it's a good time to buy because that means you'll be paying less in the long run. Interest rates are looking good right now but they're going to be rising soon. Historically low rates right now are projected to creep up to 5 or 6% within the next year.

 

3. You have an income.

 

If you have a steady income then even if you’re not ready to buy a house now, you could be soon. All it takes is a bit of planning and determination and you could be ready to buy a house in no time. Don’t forget, a great way to break into real estate and start building equity is with a town home or condo. Take a look, you might be surprised what you can afford! Here are some quick tips on what to focus on financially to prepare for buying:

• Save toward a deposit. The bigger the deposit, the smaller your monthly mortgage will be.
• Check your credit and improve it if you can. You can get one free credit check a year from each credit reporting company. If you have less than perfect credit don’t worry, there are ways to improve your credit score.
• Make a budget and stick to it. If you don’t have one already, make a budget for yourself. Set aside money for food, rent, gas, car payments if you have them, phone bill, and then put the rest in saving. Even if you don’t have a steady income, you should be able to put some money away if you’re paying close attention to where it all goes. It’s so easy to pick up a Starbucks coffee here or there and spend money without thinking about the repercussions to your bank account, but take control of your expenses and save your money for something important to your future – like a home.

4. You need more space.

 

If you’re renting an apartment you probably have no yard or outdoor space of your own and lack any semblance of storage space for all that life you've accumulated. And if you’re living with roommates you don’t have control of the TV, you have to share limited kitchen and pantry space, and you can only claim a small part of your living quarters as your own. If any of this is sounding familiar, you know it’s time to ditch your cramped living quarters and upgrade to a real home that can fit the life you've worked so hard to build.
 
5. Pets! 

 

Whether you have a furry friend or have been waiting to grow the family until you have more space, a house is the best environment for most pets. While the goldfish was fun for a few days, it doesn't provide the same companionship and love as a dog or cat. Most apartments don’t allow pets or charge extra fees for them but when you have your own house, you call the shots. If you’re craving a furry addition to the family, it’s time to make room for one.

 

6. You’re settled in.

 

If your job, family, friends and life are all in one place and you will be too for a while, then you're ready to invest in something more permanent than an apartment. If you can see yourself staying where you are for the next 5 years at least, you’re ready to make the commitment to home ownership. Why not start putting your monthly living payments toward your future with a mortgage rather than throwing it away on rent?

 

7. You’re ready to build a home.

 

When you rent, you are living in someone else’s space, just visiting for a period of time with restrictions and an expiration date. But when you own a house you can paint the walls whatever color you want, decorate from top to bottom and finally get comfortable. With your own home you can truly settle down and into your life.

Selling a Home with Tenants in Place

Many homeowners have rented out their place in recent years to tenants. When it comes time to sell the home, it is critical to understand how having tenants in the home can impact your home sale.

The market for owner occupants is bigger than the investor market

One of the most important things when selling a home is to make sure that it appeals to the broadest audience of potential buyers. There are way, way more buyers out there who want to owner-occupy a home or condo. They cannot occupy the home themselves if they have to inherit tenants with a long-term lease. Owner-occupant buyers will ignore homes with long-term leases in place.

Also remember that owner-occupant mortgages are given at much more favorable terms than investor loans. Generally, if you cannot occupy the home within 60 days, a buyer would have to either pay for the home with an investor mortgage or cash. No one looking to owner-occupy a home is going to ever choose those financing options.

You must follow landlord-tenant laws

When you sign a lease as a landlord, you are bound to a written contract with your tenants. You are also required to follow all applicable landlord-tenant laws in your area. The act of selling a home has no effect on leases that you have in place, so the new buyer inherits your lease terms.

One strategy a seller may employ is to try and remove the tenants prior to sale. If their lease expires, tenant removal is easy. If they have 6 months remaining on a 12-month lease, you will have to negotiate with them for an early cancellation.

If a lease is month-to-month, local laws may have special procedures that allow for termination of the lease to sell the home, but you need to follow the law exactly. The courts generally do not look kindly on landlords who don’t know local tenant laws, and you definitely don’t want to be on the receiving end of a tenant lawsuit.

Showing homes to prospective buyers when tenants live there is a hassle

Sometimes you might try to market the home while tenants live there. This can often be a sub-optimal way to get a home sold.

Remember that landlord-tenant laws require advance notice for the landlord to enter a rental. If the tenants want, they can insist on receiving the proper written notice before allowing a buyer inside. This could mean a 24-48 hour delay for buyers to see the home.

Tenants are also not incented to keep the home in “showroom condition.” Dirty dishes, dirty clothes and an unkempt appearance is going to lower the sale price you get for the home. Since tenants are not required to keep the home tidy, you may consider offering to pay for a cleaning service while the home is listed for sale.

Landlords looking to sell their home should have an upfront conversation with their tenants about the sale process. Make them aware of the process for buyers to see the home. If tenants are not cooperative with the selling process or are extremely untidy, it may pay to wait until their lease expires before selling the home.

Apartment investors generally like occupied buildings

If you are selling a larger apartment building with multiple units, the potential buyers are all investors. In this case, they may actually prefer that the building is occupied and generating rent when they purchase the building.

If apartment investors are inheriting a group of tenants, they are going to want to understand the lease terms they are buying. You need to have current, well-written leases and should also be able to demonstrate that you did the appropriate due diligence on the tenants who currently live in the building.







by Kevin Lisota

For Sale By Owner: It Can Be A Halloween Nightmare Story

At some point, every person with access to Zillow has considered ditching their agent when buying or selling a house. After your first purchase you may have thought, “I could have done that myself.” Side-stepping a Realtor may appear to be a good idea, but the experience may lead to your worst nightmare (think the Nightmare on Elm Street II when the homeowners learned about a death in the house only after having moved into the house. Did they have a Realtor?). There could be trouble lurking behind any and all of the doors to the home that you intend to purchase or sell. Unless you are an experienced real estate agent or an attorney well-versed in residential real estate, you may want to stick to your day job. Why not proceed pro se, you say?

1. Experienced Realtors Are Great at Marketing Homes for Sale – Yes, putting a sign up is easy and you can make a flyer on your computer. Your neighbors and the folks who drive your street will know the home is for sale. Practicing Realtors have tools to gain unlimited exposure for your property including personal websites, syndication systems that spread the listing through all areas of the internet and most have a vast network of fellow Realtors who are also helping customers and clients buy and sell.
2. Realtors Can Make Or Save You $$$ – Knowledgeable Realtors easily identify issues with a property and know the appropriate inspectors and/or repairmen that you need in order to determine the value of your home or potential home based on what needs to be done. From a buyer’s perspective, you will want to negotiate the lowest price based on the number of repairs needed as determined by the inspection. From a seller’s perspective, you will want to find someone who can help you mitigate any significant loss due to the repairs that you may have to make prior to sell. In many states the deed merges into the contract after the purchase of a house. Let me translate that for you. If you purchase a lemon and you did not know that it was a lemon, unless there was proof the transaction was clearly fraudulent, then you will need to learn how to make lemonade.
3. Realtors Get Paid To Buy and Sell Homes Every Day - They are trained, licensed and their years of experience have built a network of resources to get most anything home related taken care of. They handle all of the tedious back and forth communications that you may not have the time to do. If you do not employ a Realtor, you will be stuck making endless phone calls to hard-to-reach individuals, during daytime hours that you may not have to expend. Realtors have background knowledge, inside tips, and access to lockboxes. Things you may have to search long and hard for or jump through hoops to get.
4. Realtors Add Safety To The Home Sales Process – Safety is a very important aspect of buying and selling property. Realtors work hard to screen prospective clients and customers. They make sure prospective buyers are qualified to buy the property and not just “looking around.” In addition, Realtors use electronic lockboxes to secure your property and prospective Buyers must be accompanied by an agent with an MLS issued access key.
5. Realtors Know Where The Deals Are - In 2013 P.R. (post-recession), there have been foreclosures on every corner. Short sales are also common. The average Joe Plumber cannot navigate those waters. You need a trained professional to sift through the good deal from the bad and the mounds of paperwork that accompanies these types of real estate purchases. Even trained professionals can get blind-sided with the legalese contained in real estate contracts but an experienced real estate professional has the resources and knowledge to help you land a deal.
6. Realtors Are Bound By A Code of Ethics - If the agent does not uphold his or her fiduciary duty to perform his or her job to the best ability, you may be entitled to recourse. You, however, will not have recourse against yourself, only the deepest regret.

Think of the scariest movie you ever saw -- I am thinking along the lines of Stephen King’s “It.” Remember the clown, Pennywise, that turns into everyone’s worst nightmare? Scary, right? Not hiring a realtor could be akin to that clown with those razor sharp teeth.






Written by Atlanta Real Estate Brokers

5 Things to Know About Home Security Systems

Home security systems, combined with automated monitoring, can help protect your home from thieves.

 

New technology means that you have many more options for boosting your home security. You can use a variety of home protection services, a mobile phone app, or even a low-tech solution such as an automated dimmer switch.

 

1. New players mean fresh options
With cable and Internet providers now offering security systems, the industry is changing. Many of these firms sell simple install-it-yourself services that eliminate the usual upfront fee of $1,000 or so.

Prices also vary based on whether the provider levies an equipment charge, the level of monitoring, and more, so total all costs before you buy, says Kevin Brasler of rating site Consumers' Checkbook.
In the first year, expect to pay between $250 and $1,500.

2. Your phone can help keep you safe 
A basic security system (alarm, control panel, and series of motion sensors) costs about $20 to $30 a month, but many companies now offer a mobile app for a few dollars more.

Michelle Schenker of security tip website ASecureLife.com, recommends springing for the app, which allows you to use your smartphone or tablet to arm your system, see alerts, and turn off false alarms, even when you're far from home.

3. Someone must call the cops 
With mobile tracking tools taking off, some firms do not offer monitoring services, which alert the police when an alarm is triggered. Yes, going with a non-monitoring option will save you $10 to $15 a month.

Still, Robert Siciliano of BestHomeSecurityCompanys.com, which rates security systems, advises against it: "You want that call made to protect you."

4. Customer service is the key
Many companies use similar technology, so it's service -- say, how quickly they fix faulty systems and respond to calls -- that makes firms stand out, Brasler says.

Before you choose a provider, check its reviews on sites like Angie's List (subscriptions are $3 a month) and Yelp. Keep in mind that national firms, such as ADT, "are only as good as the dealer in your area," says Schenker. And since break-ins don't always happen during business hours, look for 24/7 support.

5. The pros aren't your only choice
If you're among the 80% of homeowners without a security service, there are steps you can take to help fend off break-ins.

Trim any shrubbery that could shelter someone trying to get in through a window. Security company stickers, often sold on eBay, could dissuade a potential intruder, says Siciliano.

Thieves typically look for vacant homes, so when you're out, set an automated dimmer switch ($40 to $75) to turn on lights at odd times.

Tips for Moving with Pets

Hot Home Trends

Whether you’re looking to buy a new home or you’re thinking about making some home improvements that will pay you back when you decide to sell your current home, it’s always good to be aware of the trends in home layouts and design that are rising in popularity. Here are just a few of the latest and greatest developments in home layouts:

 

     

·         Open it up. Homeowners are increasingly leaning toward converting their square footage from small, compartmentalized rooms and hallways to more open, useful rooms that flow and avoid wasted space.

 

·         Go gourmet. The foodie revolution is bringing families out of the dining room and into the kitchen. Functional yet luxurious kitchens that marry style and utility are becoming focal points for gathering and entertaining. Islands with seating are popular, and stone tile, induction cooktops, and sophisticated metal appliances are surging in demand. Homeowners who update their kitchen are finding ways to make those updates while staying within the kitchen’s original footprint in order to retain coziness. Meanwhile, walk-in pantries are also hot. Since more people are eating in, families need increased food storage where traditional staples share shelf space with gourmet products.

 

·         What’s old is new again. Remodeling with reclaimed or recycled materials has reached an all-time high. Installing new flooring? Think about finding wood from a nontraditional source. Home building centers are increasingly stocking reclaimed materials and there are websites that specialize in recycled building materials.

 

·         Go green. Environmental awareness is on the rise and with it, the advent of eco-friendly appliances and fixtures. Energy efficiency is becoming more mainstream as homeowners shore up their insulation, install new windows, and purchase new, high efficiency appliances. Low-flow faucets save on water waste, and home gardens are allowing cooks to save some money on groceries and go organic.

 

·         The future is now. Even a couple of decades ago, who would have imagined how much we would rely on smartphones and tablets in our everyday lives? Homes are incorporating this technology via apps that can control garage doors, security systems, and even climate control remotely. For tech-savvy families, “command centers” for the home are on the rise as homeowners seek a central docking area for charging multiple devices.

 

·         Customize the master suite. While master suites have enjoyed popularity for a while now, times are changing as master bathrooms phase out bulky bathtubs and opt for sleek and accessible showers instead. Some master baths now incorporate the elements of a home spa, such as a sauna compartments. And master suites are on the move. As the nation’s population ages, accessibility is a new emphasis. Don’t be surprised to see more and more master suites on the main floor.

 

·         Keep it in the family. Guest suites and in-law space are in high demand as more families turn to multigenerational living to save adult kids money or take care of aging family members.

 

·         Secondary living space. While formal parlors or sitting rooms are a notion of the past, “family rooms” are becoming media centers. And the new media room is often a teen lounge or hangout with projection systems, video games, and on-demand films and programming.

 

·         Take it outside. Outdoor living is all the rage right now as busy families opt for “staycations.” Outdoor kitchens, fire pits, swimming pools, and living areas are the new summer hangout space, where people can congregate outdoors just footsteps from home.

 

With cozy living replacing high-upkeep, homeowners are increasingly seeking quality over quantity. Square footage may be shrinking, but usable space has never been more desirable. With that in mind, new homebuyers and existing homeowners can work within a more manageable space … while still enjoying all the most desired comforts of home.

 

 

 

 

 

Written by Kristin Brown, Realtor, Coldwell Banker Residential Brokerage

Homebuyers: To get the house, get there first!

Housing inventory is stiflingly tight in many locations, making it a challenge to find, much less land, your dream home.

The number of available houses in the hottest markets has dropped dramatically over the past year, says the National Association of Realtors: In the Boston area, for one, inventory levels are down 29% vs. 2012. And Denver, Seattle, and San Francisco aren't far behind.

"Some homes are flying off the market in a matter of days," says Paul Bishop, VP of research for NAR.

Shopping in a popular spot? You'll have to go beyond the usual sellers' market tactics, such as getting prequalified for a mortgage. These strategies will help you find homes first, stopping a bidding war before it starts.

Go unlisted

One way to head off the competition is to look for so-called pocket listings, homes that are for sale but don't show up on the multiple listing service, where brokers post available properties.

Owners may choose not to list because they want to keep details about their houses private, or simply because they don't want to deal with staging the home and taking photos, says Zillow contributor and agent Brendon DeSimone, who works in New York and California.

To find these homes, you'll need a well-connected broker. "You want someone who has an inside track," says DeSimone. Agents who have experience with pocket listings should be able to tell you about examples of off-the-radar houses they've handled in the past, as well as any they are currently aware of (keep in mind that pocket listings are most common in areas with tight inventory).

A caution: Buyers considering an unlisted property should be on the lookout for defects and check that the price is in line with the area, says San Francisco broker Samuel Cadelinia. Owners sometimes use this low-profile method to avoid calling attention to a problem or to see if they can sell for more money.

Get the real-time scoop 

Many would-be buyers depend on automatic search, a regular roundup of listings sent out by the local MLS. But by the time these emails go out to shoppers, included homes may have been online for hours or even days.
Ask your agent about real-time MLS alerts, emails that are sent the moment a new listing goes live. While not yet in all markets, the alerts are available in the San Francisco Bay area, Las Vegas, Columbus, parts of Connecticut, and more.

Agents often have a home for 24 hours or so before entering it into the MLS, so your broker may be able to give you a heads-up on a house he just received. To increase your chances of getting that call, tell him that you'd like to be notified immediately, and be sure he knows exactly what type of house you're after.

See through bad listings

Don't be scared off by a hideous paint job, bad lighting, or unflattering photos. "Sometimes sellers don't listen to agents about getting the house ready for sale," says DeSimone.
In a tight market, he says, it's worth checking out marginal listings to avoid missing a badly packaged gem -- just factor in the price of any project required to bring the home up to snuff.

Set your search criteria a bit higher than your target price; you'll likely catch some overpriced homes that may eventually go for less. How will you know? The number of days on the market is one telltale sign, says Cadelinia.

For example, if most homes in the area are gone within a month but this one's been on the market for two, the owner may be willing to consider a lower offer. If the listing is new, get a sense of how realistic the cost is by comparing it with the recent sale price of similarly sized houses in the same area.

Spot would-be sellers

Finding a home that's not for sale but might be soon is tricky but not impossible.
One strategy: Ask your agent to search expired listings, says Mark Cenci, a Chillicothe, Ohio, realtor. Owners who tried to sell a couple of years ago may not be up on rising home values (June median home prices were 16% higher than two years prior, says the NAR) and might be swayed by what you're willing to pay.

Rental properties are another prospective target, since landlords may also be out of touch with current prices. Sure, it's a reach, but in this market, says Cenci, "you need to explore every option."





 

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First Published: October 14, 2013: 3:47 PM ET

National Foreclosure Settlement Rules Tweaked Amid Complaints

The $25 billion national mortgage foreclosure settlement is getting tweaked, to address numerous complaints that mortgage servicers are falling short in their dealings with struggling borrowers.

When it was announced in February 2012, the settlement sought to compensate borrowers for wrongs they experienced in the foreclosure process. Equally important was the development of new mortgage servicing standards that applied to the nation’s five largest servicers, Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally/GMAC.

But homeowners, housing counselors and state attorneys general have complained that the banks are not complying with many of the 304 standards they agreed to as part of the pact with the Justice Department, state attorneys general and the five companies.

Those standards “were supposed to eliminate headaches for borrowers, but homeowners continue to report problems,” said Illinois Attorney General Lisa Madigan, whose office is a member of the settlement’s monitoring committee.

The changes announced Tuesday night by the committee, many of which were agreed to only by Bank of America and Wells Fargo, seek to correct those issues.

Under the new procedures announced Tuesday night, all five banks will give homeowners 60 days, instead of 30, to submit additional documents that might help them secure a loan modification before the home goes into foreclosure or moves toward a foreclosure-related sale. The banks also have promised to do a better job of overseeing employees who work with borrowers.

Two servicers, Bank of America and Wells Fargo, also agreed to adopt other policies, such as being more specific about what missing information they need from homeowners. Currently, if a borrower sends in a document but forgets to sign it, the servicer may send a letter saying the document is missing, rather than just telling the homeowner that they forgot to sign it.

Those two companies also agreed to escalate loan modification applications when a customer is being asked repeatedly for more documents. And they will use an online portal to submit documents and create a direct contact for the housing counseling agencies working with struggling homeowners.

The committee continues to discuss additional service improvements with the three other banks, according to Natalie Bauer, a Madigan spokeswoman.

In May, Madigan said she saw an “alarming” pattern of potential violations of loan modification servicing standards. Among them: In 60 percent of files reviewed by her office, servicers did not notify borrowers within the required five days that their applications for a loan modification were missing documents. And in 45 percent of the files reviewed, servicers asked homeowners for documents multiple times.

In his June report on the settlement’s progress, independent monitor Joseph A. Smith Jr., said four of the five banks were failing to comply with the servicing aspects of the settlement.

At the time, Shaun Donovan, secretary of the Department of Housing and Urban Development said the “deep and pervasive problems” in mortgage servicing were unacceptable.







Copyright © 2013 The Chicago Tribune. Distributed by MCT Information Services.

Strength of Housing Recovery Questioned

The recovery in the U.S. housing market could run out of steam if it depends on investors to carry it along, an economic report explains.

In a report titled “Opening the Credit Box,” Moody’s Analytics economist Mark Zandi and Urban Institute market analyst Jim Parrott say rising home prices and interest rates will force the recovery to rely on first-time buyers, as investment buyers will begin to back away.

But first time buyers are not yet in a position to keep the recovery strong, Zandi and Parrott claim.

The Housing Wire reported Monday that the housing market’s recovery has produced some positive data. Zandi and Parrott report home prices are up 15 percent from two years ago and housing starts have doubled since their low point in the 2008-09 recession.

However, the average credit score among first-time home buyers is near 750, about 50 points higher than it was 10 years ago, the report said.

“Lenders have reassessed how much risk they are willing to take on, in part because they were burned badly in the crisis and in part because they have come to recognize a range of costs associated with riskier lending not fully appreciated before,” the report says.

The costs that are now influencing lenders include the expenses associated with handling distressed loans, potential costs of litigation and risks to a firm’s reputation, the report says.

Succinctly put, lending is tight. “Lenders are only willing to make loans intended for purchase by Fannie [Mae – Federal National Mortgage Association] or Freddie [Mac – Federal Home Loan Mortgage Corp.] or insurance by the FHA [Federal Housing Administration] if there is little prospect of default, so that they do not expose themselves unwittingly to the risk that they will bear the cost,” the report says.

 





Copyright © UPI 2013

FHA, VA Loans ‘Safe’ During Government Shutdown

Contrary to widespread media reports, new Federal Housing Administration (FHA) single-family home loans will be processed if the expected government shutdown occurs at midnight.

Florida Realtors® confirmed details contained in a Housing and Urban Development (HUD) contingency plan posted online. According to George Gonzalez, a deputy press secretary at HUD, the Office of Single Family Housing will endorse new loans and maintain the minimum operations necessary to support FHA’s existing portfolio through the FHA Call Center and the National Servicing Center’s Call Center.

Already scheduled closings on multi-family projects with firm commitments will proceed. Some services, such as the processing of change orders or construction inspections, will be affected during the first 10 business days of the shutdown.

VA home loans will continue to be processed as well, according to the U.S. Department of Veterans Affairs. Florida Realtors could not confirm by press time if this includes new loans as well as loans already in the system. The Veteran Benefits Administration, which oversees loans and the National Call Centers, among other things, employs 21,237 people. Funding is available to support all employees for some period of time.

Flood insurance

In other news, Florida Realtors continues to follow efforts to delay implementation of the Biggert-Waters Act of 2012, which will trigger crippling flood insurance rate increases for thousands of Florida property owners.

Late last Friday, Florida Congressman Rich Nugent introduced legislation to delay increases in flood insurance premium rates until an affordability study required under the act is completed.

“The legislation will also require that if the study finds the new rates are not affordable, then the Florida Emergency Management Association must make recommendations about what changes Congress should make,” according to a statement Rep. Nugent issued on his website.  Congress would then be required to vote up-or-down on the recommendations. If either chamber rejects the changes, the new flood insurance rates would be delayed for at least six months.

Finally, the National Association of Realtor’s (NAR) Flood Insurance Presidential Advisory Group meets later this week in Washington, D.C. Florida Realtors’ interests are represented by members Dean Asher, 2013 Florida Realtors president; Moe Veissi, past president of Florida Realtors and NAR; and Orlando Realtor and NAR Director Bob Caldwell.






© 2013 Florida Realtors®