Home sales rose, prices fell in February By MARTIN CRUTSINGER, AP Economics Writer
32 minutes ago
WASHINGTON - After falling for six straight months, sales of existing homes posted an unexpected increase in February which may have reflected more aggressive price cutting by sellers in some parts of the country, a real estate trade group reported.
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The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise. They had been expecting a small decline.
The trade group reported that the median existing sales price in February fell to $195,900. That was the largest year-over-year drop on records that go back to 1999.
Lawrence Yun, chief economist for the Realtors, said that prices in some formerly hot markets in California and Florida were seeing significant price declines now as sellers try to attract buyers.
Analysts cautioned against reading too much into the one-month rise in sales. Many economists are predicting that the steep slump in housing will not bottom-out until later this year after prices fall further and allow huge levels of unsold inventories to be reduced.
"We're not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is nother sign that the market is stabilizing," Yun said.
By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent.
Sales of existing homes fell by 12.7 percent in 2007, the biggest decline in 25 years. Over the past two years, housing has been in a steep downturn made worse by a severe credit crunch as financial institutions tightened their lending standards in reaction to their multibillion-dollar losses on mortgages that have gone into default.
The steep slump in housing has raised concerns about a possible recession. Democrats are pushing the Bush administration to do more to stem a tidal wave of mortgage foreclosures to keep more unsold homes from being dumped on an already glutted market.
Sen. Hillary Clinton, campaigning for the Democratic presidential nomination, on Monday called on President Bush to appoint an emergency working group on foreclosures to recommend new ways to confront the housing crisis.
"Over the past week, we've seen unprecedented action to maintain confidence in our credit markets and head off a crisis for Wall Street banks," Clinton said. "It's now time for equally aggressive action to help families avoid foreclosure and keep communities across this country from spiraling into recession."
Monday, March 24, 2008
Wednesday, March 19, 2008
Mortgage lenders to pump $200 billion into markets By Patrick Rucker
5 minutes ago
WASHINGTON (Reuters) - Two U.S. home financing heavyweights won government approval on Wednesday to pump $200 billion more into troubled U.S. mortgage markets, the latest step to stabilize credit markets and avert a deep recession.
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Despite intensive efforts to battle rising home foreclosures and calm shaky markets by the Treasury Department and the Fed, which has pledged $400 billion to free up credit, Democratic lawmakers continue to press for bolder action.
"All hands are on deck to try and prevent this U.S. situation from becoming a dire crisis," said David Watt, a currency strategist with RBC Capital Markets in Toronto. "They're doing everything they can, making policy on the fly."
Still, markets were not calmed by the latest move by the regulator that oversees Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to immediately loosen their capital requirements and give them a bigger role in buying up mortgages.
The blue chip Dow Jones industrial average (.DJI) lost almost three-quarters of the 420-point gain notched a day earlier, closing down 293 points, in part on worry brokerage Merrill Lynch & Co may need to write down more bad assets.
More relief, however, is in the works. A separate regulator appeared near a decision to allow the Federal Home Loan Bank System to double some mortgage holdings to around $300 billion -- which would be another big shot of market liquidity.
Sources familiar with the proposal said a vote on the measure was likely this week.
PUSHING FOR MORE
There were no signs, however, that Democratic lawmakers were about to let up in a push to have the government step in to play a larger role.
Rep. Barney Frank, chairman of the powerful U.S. House of Representatives' Financial Services Committee, said the Bush administration was warming to his plan to use the Federal Housing Administration to insure up to $300 billion of shaky home loans for lenders willing to erase some of the debt.
The Treasury, however, said it had "no interest" in the proposal, although it was willing to listen to any new ideas.
Fannie Mae and Freddie Mac's regulator, the Office of Federal Housing Enterprise Oversight, said its decision to relax capital rules toughened in the wake of accounting scandals in 2003 and 2004 would allow the two companies to buy or guarantee $2 trillion worth of mortgages this year.
The decision reduces to 20 percent from 30 percent the additional amount of capital they must keep on hand against potential losses, giving them $200 billion in buying power. OFHEO said it may lower the capital requirements further.
Efforts to ease financial market stress helped bring down mortgage rates early this year, but they have risen in recent weeks as investors dumped souring loans to meet margin requirements, undercutting the Fed's attempts to spur the economy by lowering overnight interest rates.
Shares of Fannie Mae and Freddie Mac, which rose sharply on Tuesday in anticipation of the announcement, blasted higher for a second day on Wednesday. Fannie Mae stock rose $2.49 to $30.71 and Freddie Mac shot up $3.88 to $29.90.
The global nature of the credit crisis was underlined as the Bank of England stepped in to dampen rumors that HBOS (HBOS.L), Britain's biggest home lender, might be in trouble. "No meetings have taken place, or been scheduled, to discuss problems with any institution," a BoE spokesman said, taking the rare step to comment on a rumor.
DRASTIC TIMES, DRASTIC MEASURES
In a joint statement with OFHEO, Fannie Mae and Freddie Mac promised to raise "significant capital" in return for easing in their reserve requirements, but the two companies gave no indication how and when they would do so.
The Treasury Department has been pushing financial firms to face losses and quickly raise new capital. That is vital for a return to normal lending and business activity and to avert a full-blown financial meltdown.
Treasury Secretary Henry Paulson, a pragmatic veteran of Wall Street, has so far hewed to the Bush administration's line that it will not countenance a taxpayer "bailout" for people who took excessive risks.
But that argument suffered over the weekend when Treasury helped broker a proposed deal for a takeover of troubled investment bank Bear Stearns.
President George W. Bush said on Tuesday the White House was monitoring financial markets and, if further actions were needed to ease mortgage woes, it would be done "in a way that does not damage the long-term health of our economy."
(Additional reporting by Svea Herbst in Boston, David Lawder and Mark Felsenthal in Washington, Al Yoon in New York and Steve Slater in London; Writing by Glenn Somerville and Patrick Rucker, Editing by Chizu Nomiyama)
5 minutes ago
WASHINGTON (Reuters) - Two U.S. home financing heavyweights won government approval on Wednesday to pump $200 billion more into troubled U.S. mortgage markets, the latest step to stabilize credit markets and avert a deep recession.
ADVERTISEMENT
Despite intensive efforts to battle rising home foreclosures and calm shaky markets by the Treasury Department and the Fed, which has pledged $400 billion to free up credit, Democratic lawmakers continue to press for bolder action.
"All hands are on deck to try and prevent this U.S. situation from becoming a dire crisis," said David Watt, a currency strategist with RBC Capital Markets in Toronto. "They're doing everything they can, making policy on the fly."
Still, markets were not calmed by the latest move by the regulator that oversees Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to immediately loosen their capital requirements and give them a bigger role in buying up mortgages.
The blue chip Dow Jones industrial average (.DJI) lost almost three-quarters of the 420-point gain notched a day earlier, closing down 293 points, in part on worry brokerage Merrill Lynch & Co may need to write down more bad assets.
More relief, however, is in the works. A separate regulator appeared near a decision to allow the Federal Home Loan Bank System to double some mortgage holdings to around $300 billion -- which would be another big shot of market liquidity.
Sources familiar with the proposal said a vote on the measure was likely this week.
PUSHING FOR MORE
There were no signs, however, that Democratic lawmakers were about to let up in a push to have the government step in to play a larger role.
Rep. Barney Frank, chairman of the powerful U.S. House of Representatives' Financial Services Committee, said the Bush administration was warming to his plan to use the Federal Housing Administration to insure up to $300 billion of shaky home loans for lenders willing to erase some of the debt.
The Treasury, however, said it had "no interest" in the proposal, although it was willing to listen to any new ideas.
Fannie Mae and Freddie Mac's regulator, the Office of Federal Housing Enterprise Oversight, said its decision to relax capital rules toughened in the wake of accounting scandals in 2003 and 2004 would allow the two companies to buy or guarantee $2 trillion worth of mortgages this year.
The decision reduces to 20 percent from 30 percent the additional amount of capital they must keep on hand against potential losses, giving them $200 billion in buying power. OFHEO said it may lower the capital requirements further.
Efforts to ease financial market stress helped bring down mortgage rates early this year, but they have risen in recent weeks as investors dumped souring loans to meet margin requirements, undercutting the Fed's attempts to spur the economy by lowering overnight interest rates.
Shares of Fannie Mae and Freddie Mac, which rose sharply on Tuesday in anticipation of the announcement, blasted higher for a second day on Wednesday. Fannie Mae stock rose $2.49 to $30.71 and Freddie Mac shot up $3.88 to $29.90.
The global nature of the credit crisis was underlined as the Bank of England stepped in to dampen rumors that HBOS (HBOS.L), Britain's biggest home lender, might be in trouble. "No meetings have taken place, or been scheduled, to discuss problems with any institution," a BoE spokesman said, taking the rare step to comment on a rumor.
DRASTIC TIMES, DRASTIC MEASURES
In a joint statement with OFHEO, Fannie Mae and Freddie Mac promised to raise "significant capital" in return for easing in their reserve requirements, but the two companies gave no indication how and when they would do so.
The Treasury Department has been pushing financial firms to face losses and quickly raise new capital. That is vital for a return to normal lending and business activity and to avert a full-blown financial meltdown.
Treasury Secretary Henry Paulson, a pragmatic veteran of Wall Street, has so far hewed to the Bush administration's line that it will not countenance a taxpayer "bailout" for people who took excessive risks.
But that argument suffered over the weekend when Treasury helped broker a proposed deal for a takeover of troubled investment bank Bear Stearns.
President George W. Bush said on Tuesday the White House was monitoring financial markets and, if further actions were needed to ease mortgage woes, it would be done "in a way that does not damage the long-term health of our economy."
(Additional reporting by Svea Herbst in Boston, David Lawder and Mark Felsenthal in Washington, Al Yoon in New York and Steve Slater in London; Writing by Glenn Somerville and Patrick Rucker, Editing by Chizu Nomiyama)
Playing the Housing Slump; Is It Time to Make Your Move?
Move?
by Jonathan Clements
Saturday, March 15, 2008
provided by
Financial lore says you should buy when there's blood in the street -- which suggests real estate is a bargain, because there's blood all over the neighborhood.
Time to invest? I wouldn't be surprised to see home prices drop sharply this spring, as long-suffering sellers in hard-hit areas throw in the towel and slash their asking price.
That could spell opportunity for this year's buyers. But what if you already own a home -- and have no desire to become a landlord? Here are three ways to play today's battered housing market.
More from The Wall Street Journal Online:
• Minding the Gap: Home-Price Downside
• Low-Cost Fixes to Make to Make Your Home More Green
• Blacklisting Hits Home Sellers
Trading up. If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2%, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real-estate exposure when the market is well below its peak.
That said, I wouldn't think of this move as an investment. Your new home will probably mean not only a bigger mortgage, but also higher ongoing costs, including homeowner's insurance, property taxes and maintenance expenses. These ongoing costs will offset a large chunk of any future home-price appreciation.
In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate. Still, like any thrifty shopper, you want to buy when there's a sale -- and that is what today's market offers.
"It's like going from a Honda to a Mercedes," says Charles Farrell, a financial adviser with Denver's Northstar Investment Advisors. "It's a lifestyle choice. As long as it doesn't cut into your ability to accumulate capital for retirement, this is probably a pretty good time to upgrade."
Doubling down. Instead of trading up, you might be eyeing a vacation home. If you don't plan to rent the place out, the same logic applies: Once you subtract the annual costs from the price appreciation, you likely won't make very much money -- which means the property won't be much of an investment.
On the other hand, maybe you're two or three years from retirement and are toying with buying a second home that could become your sole residence once you quit the work force. Does it make sense to purchase now, given the decline in home prices?
Buying today is no doubt appealing, because it'll give you a chance to vacation in your future home. But whether it turns out to be a wise financial move depends on what happens to property prices -- and that's tough to predict.
Still, I wouldn't bank on a rapid bounce back in home prices. At the current sales pace, it would take a whopping 10.3 months to clear January's backlog of unsold homes. By contrast, in January 2005, the supply of unsold homes was at a mere 3.6 months, according to the National Association of Realtors.
The bottom line: If you think you'll get a lot of use from a second home, go ahead and buy. But if you view the purchase as a bet on rising home prices, I would hold off for now.
Helping hand. While buying more real estate for your own use probably won't be a great investment, you could help your adult children make good money -- by transforming them from renters to homeowners.
To that end, you might give your kids an advance on their eventual inheritance, so they have enough money to make a down payment. Yes, that means they will start to incur the housing costs I mentioned above, including property taxes and maintenance expenses. But your children will also replace their monthly rent check with a monthly mortgage check, and that will allow them to start building home equity.
"If you have kids who are first-time buyers in markets that are relatively depressed, this could be a good time," Mr. Farrell reckons. "These days, they might need to make a 10% down payment. You could make a gift to them of the down payment or make a loan to them."
Copyrighted, Dow Jones & Company, Inc. All rights reserved.
by Jonathan Clements
Saturday, March 15, 2008
provided by
Financial lore says you should buy when there's blood in the street -- which suggests real estate is a bargain, because there's blood all over the neighborhood.
Time to invest? I wouldn't be surprised to see home prices drop sharply this spring, as long-suffering sellers in hard-hit areas throw in the towel and slash their asking price.
That could spell opportunity for this year's buyers. But what if you already own a home -- and have no desire to become a landlord? Here are three ways to play today's battered housing market.
More from The Wall Street Journal Online:
• Minding the Gap: Home-Price Downside
• Low-Cost Fixes to Make to Make Your Home More Green
• Blacklisting Hits Home Sellers
Trading up. If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2%, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real-estate exposure when the market is well below its peak.
That said, I wouldn't think of this move as an investment. Your new home will probably mean not only a bigger mortgage, but also higher ongoing costs, including homeowner's insurance, property taxes and maintenance expenses. These ongoing costs will offset a large chunk of any future home-price appreciation.
In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate. Still, like any thrifty shopper, you want to buy when there's a sale -- and that is what today's market offers.
"It's like going from a Honda to a Mercedes," says Charles Farrell, a financial adviser with Denver's Northstar Investment Advisors. "It's a lifestyle choice. As long as it doesn't cut into your ability to accumulate capital for retirement, this is probably a pretty good time to upgrade."
Doubling down. Instead of trading up, you might be eyeing a vacation home. If you don't plan to rent the place out, the same logic applies: Once you subtract the annual costs from the price appreciation, you likely won't make very much money -- which means the property won't be much of an investment.
On the other hand, maybe you're two or three years from retirement and are toying with buying a second home that could become your sole residence once you quit the work force. Does it make sense to purchase now, given the decline in home prices?
Buying today is no doubt appealing, because it'll give you a chance to vacation in your future home. But whether it turns out to be a wise financial move depends on what happens to property prices -- and that's tough to predict.
Still, I wouldn't bank on a rapid bounce back in home prices. At the current sales pace, it would take a whopping 10.3 months to clear January's backlog of unsold homes. By contrast, in January 2005, the supply of unsold homes was at a mere 3.6 months, according to the National Association of Realtors.
The bottom line: If you think you'll get a lot of use from a second home, go ahead and buy. But if you view the purchase as a bet on rising home prices, I would hold off for now.
Helping hand. While buying more real estate for your own use probably won't be a great investment, you could help your adult children make good money -- by transforming them from renters to homeowners.
To that end, you might give your kids an advance on their eventual inheritance, so they have enough money to make a down payment. Yes, that means they will start to incur the housing costs I mentioned above, including property taxes and maintenance expenses. But your children will also replace their monthly rent check with a monthly mortgage check, and that will allow them to start building home equity.
"If you have kids who are first-time buyers in markets that are relatively depressed, this could be a good time," Mr. Farrell reckons. "These days, they might need to make a 10% down payment. You could make a gift to them of the down payment or make a loan to them."
Copyrighted, Dow Jones & Company, Inc. All rights reserved.
Monday, March 17, 2008
How to Buy a Home
Owning a home is a very important step in most people's lives. It's a goal that can easily be reached if you work hard and take the right steps. After years of work and saving, finally purchasing your first home is a reward in and of itself, however its a reward that keeps giving and might put you and your family on the path to financial security.
[edit] StepsGet your credit in order. Find out your credit score rating at http://www.experian.com/. Know what your finance report says about you before applying for a loan. If it is as not as cherry as you would hope work on cleaning it up, and improving your score since this is what a mortgage loan is largely based on.
Find the right loan and lender. You will need to research whether using a broker (who can really help if you have bad or so/so credit), or going directly to a bank or possible friend or family for a loan is the best route for you.
Determine your budget. Often in this day and age, lenders will give you much more money than you realistically can pay on a monthly income. Take the time to realistically sit down and make a budget of what you think mortgage, taxes, and the rest of the expenses will cost then raise this by 30%, and this should be your true budget. Before you start thinking, "I can have this house if I eat peanut butter and jelly sandwiches for a year", be realistic!
Identify property to buy. With your list of needs and wants have your agent prepare a list of available properties in the areas you would like to search in. Make sure you indicate which neighborhoods interest you the most and which interest you the least. If you need help finding schools, shopping, demographics, entertainment and the like in a particular neighborhood, ask your realtor to prepare a demographic report for the area - it will help you determine where the closest supermarket is, the movie theater, schools, businesses and even personal demographics of the residents. (Do you want to be surrounded by Volvo Station Wagons or Harley Davidsons)
Schedule time to tour these properties you've already identified. Don't take a quick look and move on to the next one. Your agent should point out special features or items that might need attention. Take a moment to imagine yourself living in this home. Ask yourself, what would it be like, am I comfortable here, can I see myself living here for a long time? Try to ignore fixtures or cosmetic things that can be easily changed. Buyers walk away from a property because it was poorly decorated. Picture the home with your furniture, family photos, momentos, etc. These are the things that make your house, a home, not the previous owner's Elvis themed bathroom.
Be reasonable with your time on your tour - You should plan to see no more than 3 or four homes in a day. Give yourself time to absorb your observations a decide whether this property might be right for you.
Be ready to write an offer. Your agent will prepare all the paperwork and go over the terms with you. And for goodness sake, if you have a question, ASK!!! Don't sign an offer and then ask, "what does that mean?". Now, lets step back just a tad - If you're looking to buy in an area that has a hot real estate market - don't think too long about writing an offer - You're agent will be able to advise you if there are likely other bids for the property. If you find a home that you want, make an offer and put an offer on the one next door too.
Be prepared to submit an "earnest money" deposit. This indicates that your are serious about buying a property, and a are ready, willing, & able to go through with the transaction. The deposit generally is held by your agent and isn't placed into escrow until the offer is accepted. (so you wont be writing checks all over town)
After your offer is presented to the seller, your agent will review with you the response. There are three possibilities; 1.) Acceptance 2.) Counter Offer 3.) Rejection. Once, the offer is accepted, its time to open escrow. The Escrow company will receive, hold and distribute all monies involved in the transaction. After escrow account is opened and funded, now begins your contingency period.
The contingency period is the time allowed by your purchase agreement to obtain financing, perform inspections, and approve of various reports and disclosures. This is also the time to ask for credit to repair that leaky roof the inspector found.
Home owner's insurance: Your agent should coordinate with your insurance representative to make sure that you are fully covered when escrow closes.
Closing time... When all the conditions of the purchase agreement are met, you will sign your loan documents and closing papers - deposit the balance of your down payment, and closing costs and your lender will deposit the balance of the purchase price. Finally the deed will be recorded with the County Recorder's office and you will be handed the keys to your new home. CONGRATULATIONS! You just became a homeowner.
Owning a home is a very important step in most people's lives. It's a goal that can easily be reached if you work hard and take the right steps. After years of work and saving, finally purchasing your first home is a reward in and of itself, however its a reward that keeps giving and might put you and your family on the path to financial security.
[edit] StepsGet your credit in order. Find out your credit score rating at http://www.experian.com/. Know what your finance report says about you before applying for a loan. If it is as not as cherry as you would hope work on cleaning it up, and improving your score since this is what a mortgage loan is largely based on.
Find the right loan and lender. You will need to research whether using a broker (who can really help if you have bad or so/so credit), or going directly to a bank or possible friend or family for a loan is the best route for you.
Determine your budget. Often in this day and age, lenders will give you much more money than you realistically can pay on a monthly income. Take the time to realistically sit down and make a budget of what you think mortgage, taxes, and the rest of the expenses will cost then raise this by 30%, and this should be your true budget. Before you start thinking, "I can have this house if I eat peanut butter and jelly sandwiches for a year", be realistic!
Identify property to buy. With your list of needs and wants have your agent prepare a list of available properties in the areas you would like to search in. Make sure you indicate which neighborhoods interest you the most and which interest you the least. If you need help finding schools, shopping, demographics, entertainment and the like in a particular neighborhood, ask your realtor to prepare a demographic report for the area - it will help you determine where the closest supermarket is, the movie theater, schools, businesses and even personal demographics of the residents. (Do you want to be surrounded by Volvo Station Wagons or Harley Davidsons)
Schedule time to tour these properties you've already identified. Don't take a quick look and move on to the next one. Your agent should point out special features or items that might need attention. Take a moment to imagine yourself living in this home. Ask yourself, what would it be like, am I comfortable here, can I see myself living here for a long time? Try to ignore fixtures or cosmetic things that can be easily changed. Buyers walk away from a property because it was poorly decorated. Picture the home with your furniture, family photos, momentos, etc. These are the things that make your house, a home, not the previous owner's Elvis themed bathroom.
Be reasonable with your time on your tour - You should plan to see no more than 3 or four homes in a day. Give yourself time to absorb your observations a decide whether this property might be right for you.
Be ready to write an offer. Your agent will prepare all the paperwork and go over the terms with you. And for goodness sake, if you have a question, ASK!!! Don't sign an offer and then ask, "what does that mean?". Now, lets step back just a tad - If you're looking to buy in an area that has a hot real estate market - don't think too long about writing an offer - You're agent will be able to advise you if there are likely other bids for the property. If you find a home that you want, make an offer and put an offer on the one next door too.
Be prepared to submit an "earnest money" deposit. This indicates that your are serious about buying a property, and a are ready, willing, & able to go through with the transaction. The deposit generally is held by your agent and isn't placed into escrow until the offer is accepted. (so you wont be writing checks all over town)
After your offer is presented to the seller, your agent will review with you the response. There are three possibilities; 1.) Acceptance 2.) Counter Offer 3.) Rejection. Once, the offer is accepted, its time to open escrow. The Escrow company will receive, hold and distribute all monies involved in the transaction. After escrow account is opened and funded, now begins your contingency period.
The contingency period is the time allowed by your purchase agreement to obtain financing, perform inspections, and approve of various reports and disclosures. This is also the time to ask for credit to repair that leaky roof the inspector found.
Home owner's insurance: Your agent should coordinate with your insurance representative to make sure that you are fully covered when escrow closes.
Closing time... When all the conditions of the purchase agreement are met, you will sign your loan documents and closing papers - deposit the balance of your down payment, and closing costs and your lender will deposit the balance of the purchase price. Finally the deed will be recorded with the County Recorder's office and you will be handed the keys to your new home. CONGRATULATIONS! You just became a homeowner.
Monday, March 10, 2008
How to Make Home Buying Easy
Follow this step-by-step general guidance to purchase a home.
[edit] StepsGet Pre-Approved. This will determine what type of loan you will obtain. Type of loan is needed for sales contract. Your lender will give you a “good faith estimate" indicating how much money is needed for purchase. Once pre-approved, it makes your offer stronger when seller is reviewing – especially if there are multiple offers being presented.
Decide what you must have in your new home (i.e. 4 bedrooms, fireplace, brick). Can you wait on what you want? (i.e. put a fence up later, add a swimming pool). Determine if you want a fixer-upper, like new home, or one that has never been occupied (are you willing to change paint, carpet or other things on your time schedule and at your own expense?).
Search for your new home. Choose one agent to work for you. (Working with many agents can lead to duplicate homes being given to you, confusion on what you have seen with whom & both buyer/agent want trust & loyalty.) Some agents have great rapport with For-Sale-By-Owners (FSBOs) and can handle all of the details for you, just as a home found through the Multiple Listing Service. Once you have received a list of homes, drive by them before you make an appointment. (Does the curb appeal meet your expectations? Is the location acceptable? How is the distance to work, school, church, etc.?)
Make an offer. Be prepared. (Have a copy of pre-approval letter to submit with your offer. Have an offer price in mind. Have an alternative offer or home in mind – in case this particular home cannot be negotiated or another buyer outbids you.) Keep the offer clean. (Are you making a really low offer, asking for an overabundance of seller concessions and an unreasonable possession date? Decide what is most important for an initial offer and then adjust while waiting to hear an answer, just in case the seller decides to reject your offer or counter it.) Earnest money. (Earnest money is collected at the time an offer is submitted and deposited with the selected title company once all parties have agreed upon and signed the contract. The earnest money is credited back to you at the time of closing.)
Get ready to close with these steps:
Wood Destroying Insect (WDI) report. (Most lenders require this report to obtain loan approval & you choose the company).
Home Inspection. (It is not mandatory; however, a good idea to have a home inspection by the inspector of your choice. (You will be told what is working, in need of repair and items that are now grandfathered).
Survey. (Most lenders will allow an existing survey for loan approval if it is less than 10 years old and there have been no changes to the property lines. Be sure to ask your lender.)
Transfer utilities. (About 7-10 days prior to closing, call and transfer water, gas, electric, cable, etc.)
You’ve got mail! Or do you? Be sure to change your address!
Be prepared for the day of closing. Bring your driver's license, social security card, and cashier's check made payable to the title company.
[edit] WarningsNever hesitate to ask questions. This is a general home buying guide and your agent should be able to answer questions and handle the details for you.
Follow this step-by-step general guidance to purchase a home.
[edit] StepsGet Pre-Approved. This will determine what type of loan you will obtain. Type of loan is needed for sales contract. Your lender will give you a “good faith estimate" indicating how much money is needed for purchase. Once pre-approved, it makes your offer stronger when seller is reviewing – especially if there are multiple offers being presented.
Decide what you must have in your new home (i.e. 4 bedrooms, fireplace, brick). Can you wait on what you want? (i.e. put a fence up later, add a swimming pool). Determine if you want a fixer-upper, like new home, or one that has never been occupied (are you willing to change paint, carpet or other things on your time schedule and at your own expense?).
Search for your new home. Choose one agent to work for you. (Working with many agents can lead to duplicate homes being given to you, confusion on what you have seen with whom & both buyer/agent want trust & loyalty.) Some agents have great rapport with For-Sale-By-Owners (FSBOs) and can handle all of the details for you, just as a home found through the Multiple Listing Service. Once you have received a list of homes, drive by them before you make an appointment. (Does the curb appeal meet your expectations? Is the location acceptable? How is the distance to work, school, church, etc.?)
Make an offer. Be prepared. (Have a copy of pre-approval letter to submit with your offer. Have an offer price in mind. Have an alternative offer or home in mind – in case this particular home cannot be negotiated or another buyer outbids you.) Keep the offer clean. (Are you making a really low offer, asking for an overabundance of seller concessions and an unreasonable possession date? Decide what is most important for an initial offer and then adjust while waiting to hear an answer, just in case the seller decides to reject your offer or counter it.) Earnest money. (Earnest money is collected at the time an offer is submitted and deposited with the selected title company once all parties have agreed upon and signed the contract. The earnest money is credited back to you at the time of closing.)
Get ready to close with these steps:
Wood Destroying Insect (WDI) report. (Most lenders require this report to obtain loan approval & you choose the company).
Home Inspection. (It is not mandatory; however, a good idea to have a home inspection by the inspector of your choice. (You will be told what is working, in need of repair and items that are now grandfathered).
Survey. (Most lenders will allow an existing survey for loan approval if it is less than 10 years old and there have been no changes to the property lines. Be sure to ask your lender.)
Transfer utilities. (About 7-10 days prior to closing, call and transfer water, gas, electric, cable, etc.)
You’ve got mail! Or do you? Be sure to change your address!
Be prepared for the day of closing. Bring your driver's license, social security card, and cashier's check made payable to the title company.
[edit] WarningsNever hesitate to ask questions. This is a general home buying guide and your agent should be able to answer questions and handle the details for you.
How to Stage Your Home for a Sale
Potential buyers make their decision to purchase your home in the first 30 seconds upon entering. First impression is the key to selling your home fast and for top dollar.
In addition, well staged homes sell for 30-50% faster than their counterparts.
[edit] StepsDe-Clutter, Clean, and/or Organize all rooms in the house - This should be your very 1st step.
Address any and all repairs that need attention. Inspect your house inside and out to search for cracks, etc. The small investment of time and money will mean a bigger return when it comes to the sale price.
Remember that improvement in landscapes will add curb appeal to attract a buyer. Use plenty of color in and around the front walkway and porch areas.
Update exterior lighting.
Paint the exterior and interior of the home. Interior paint should be in neutral tones.
Spruce up furniture that is outdated with slip covers.
Keep the bathroom as bare as possible, never leave your personals in view when showing your home. In fact, depersonalising your whole property is a powerful selling tip. Buyers will be more attracted to your house when they can imagine themselves living there. To make your house look lived-in without looking like anyone actually lives there, pack away into storage:
All family photos
Holiday souvenirs
Trophies & certificates
Collectible items
Children’s artwork
Home Gyms that haven't been used in months
Whether selling professionally or by yourself, make sure you have some fliers made up with details and photos of your house for prospective buyers to take away with them.
Know that an open house should appeal to all five of the senses:
Sight: Open the blinds and drapes to let in natural light. Keep clutter away and consider keeping your pet out of the home for that day. Play a colourful family movie on your TV and/or computer (e.g. Finding Nemo) with the sound off.
Smell: Put out flowers in the main rooms of the home, as well as scented candles. Bread in the oven is another good idea.
Taste: Make some cookies or something else for your guests. This will also help improve the aroma of your home. A hot pot of coffee helps with taste and smell also.
Hearing. Turn off the sound on all television sets and computers, and have some easy listening or jazz music playing in the background softly.
Touch. Have your guests sit on the softest couch, and make sure everything is clean and dust-free.
Space. When showing guests around your property, let them enter the room first. In smaller rooms e.g bathrooms, stay at the door. Too many bodies in too small a space causes a problem.
[edit] TipsListen and follow advice from your real estate agent!
You are putting your home on display, so present it well! If you don't think you have an eye for presentation, ask one of your friends or family to prepare your house for you. If you can't see a problem with clothes lying around and sticky floors, get someone else to present your house for you! Pay them if necessary - as presentation is so important in presenting your house.
Remember: you are decorating your home for someone else so keeping that in mind will help you to make purchases that will appeal to the masses.
Do not over-price your home! Have your real estate agent compare your home to others in your area of the same size for sale (get what is referred to in the industry as a Comparative Market Analysis) - They will determine the right price to list your home at. If you home has been on the market more than 3 months, doing this should help you sell your home along with staging your home. The whole point of staging, is getting your home show-able inside and out. If a potential buyer drives by your home and doesn't like the look of the outside (curb appeal) of your home, they will move onto another home. You have to grab their attention and get them in the door, so they will want to view your home.
De-clutter your home as well as deep cleaning will work wonders, and will show to potential buyers that the house is in stellar condition.
[edit] WarningsEvery room in the home, including the garage and decks, should be absolutely clean. Empty waste baskets and garbage pails daily. Try to keep pets out doors along with their litter boxes and food bowls during showings. Try to relax during this stressful process.
[edit] Things You'll NeedYou will need to make a few purchases. As mentioned earlier, sofa slip covers, flowers, and maybe new flooring. Make the purchase needed to update the home so that it will show well. You will certainly see a return on your investment.
Potential buyers make their decision to purchase your home in the first 30 seconds upon entering. First impression is the key to selling your home fast and for top dollar.
In addition, well staged homes sell for 30-50% faster than their counterparts.
[edit] StepsDe-Clutter, Clean, and/or Organize all rooms in the house - This should be your very 1st step.
Address any and all repairs that need attention. Inspect your house inside and out to search for cracks, etc. The small investment of time and money will mean a bigger return when it comes to the sale price.
Remember that improvement in landscapes will add curb appeal to attract a buyer. Use plenty of color in and around the front walkway and porch areas.
Update exterior lighting.
Paint the exterior and interior of the home. Interior paint should be in neutral tones.
Spruce up furniture that is outdated with slip covers.
Keep the bathroom as bare as possible, never leave your personals in view when showing your home. In fact, depersonalising your whole property is a powerful selling tip. Buyers will be more attracted to your house when they can imagine themselves living there. To make your house look lived-in without looking like anyone actually lives there, pack away into storage:
All family photos
Holiday souvenirs
Trophies & certificates
Collectible items
Children’s artwork
Home Gyms that haven't been used in months
Whether selling professionally or by yourself, make sure you have some fliers made up with details and photos of your house for prospective buyers to take away with them.
Know that an open house should appeal to all five of the senses:
Sight: Open the blinds and drapes to let in natural light. Keep clutter away and consider keeping your pet out of the home for that day. Play a colourful family movie on your TV and/or computer (e.g. Finding Nemo) with the sound off.
Smell: Put out flowers in the main rooms of the home, as well as scented candles. Bread in the oven is another good idea.
Taste: Make some cookies or something else for your guests. This will also help improve the aroma of your home. A hot pot of coffee helps with taste and smell also.
Hearing. Turn off the sound on all television sets and computers, and have some easy listening or jazz music playing in the background softly.
Touch. Have your guests sit on the softest couch, and make sure everything is clean and dust-free.
Space. When showing guests around your property, let them enter the room first. In smaller rooms e.g bathrooms, stay at the door. Too many bodies in too small a space causes a problem.
[edit] TipsListen and follow advice from your real estate agent!
You are putting your home on display, so present it well! If you don't think you have an eye for presentation, ask one of your friends or family to prepare your house for you. If you can't see a problem with clothes lying around and sticky floors, get someone else to present your house for you! Pay them if necessary - as presentation is so important in presenting your house.
Remember: you are decorating your home for someone else so keeping that in mind will help you to make purchases that will appeal to the masses.
Do not over-price your home! Have your real estate agent compare your home to others in your area of the same size for sale (get what is referred to in the industry as a Comparative Market Analysis) - They will determine the right price to list your home at. If you home has been on the market more than 3 months, doing this should help you sell your home along with staging your home. The whole point of staging, is getting your home show-able inside and out. If a potential buyer drives by your home and doesn't like the look of the outside (curb appeal) of your home, they will move onto another home. You have to grab their attention and get them in the door, so they will want to view your home.
De-clutter your home as well as deep cleaning will work wonders, and will show to potential buyers that the house is in stellar condition.
[edit] WarningsEvery room in the home, including the garage and decks, should be absolutely clean. Empty waste baskets and garbage pails daily. Try to keep pets out doors along with their litter boxes and food bowls during showings. Try to relax during this stressful process.
[edit] Things You'll NeedYou will need to make a few purchases. As mentioned earlier, sofa slip covers, flowers, and maybe new flooring. Make the purchase needed to update the home so that it will show well. You will certainly see a return on your investment.
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