Buying Secret #10: Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.

Buying Secret #9: Get Pre-Approved for Your Home Loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan. Continue reading →

Following today’s housing recovery is like watching a bunch of sixth grade girls decide which boys are cool and which aren’t. Boy to boy, housing market to housing market, the winners and losers are constantly changing. Had one predicted just a year ago that five of the 10 healthiest housing markets would be in California, one might have been summarily dismissed.

But Zillow has found that the nation’s healthiest housing market is San Jose, followed by San Francisco, Los Angeles and San Diego, and just making it at No. 10, Sacramento.

“Rapid home value appreciation in the West, particularly California, is currently having a very positive effect on a number of other factors, including negative equity, foreclosure activity and the overall financial health of local homeowners. But that same rapid appreciation may cause affordability issues in the future in these markets, leading to potentially unhealthy conditions,” Zillow Chief Economist Stan Humphries said.

Rounding out Zillow’s top 10 were Denver, Boston, Pittsburgh, Portland, Ore., and New York City, ranking five through nine.

Phoenix and Las Vegas could make the top of another list—the unhealthiest. Both saw rapid price appreciation due to high investor demand. For the past three years, single and institutional investors swooped into these highly distressed markets and began inhaling properties. The intention was to put most of them up for rent. Prices had fallen by well over half in both areas peak to trough, so the bargains were plentiful. Until they weren’t.

In Phoenix, the median single-family home price shot up 71 percent between October 2011 and October 2013, up 27 percent in just the last year, according to Mike Orr, director of the Center for Real Estate Theory at Arizona State University. Investors pushed prices up so far, so fast, that they priced themselves out of the market. Continue reading →

Our son and daughter-in-law just purchased their first home. It’s in a location that allows an easy commute into Boston, where our son works, and is just a few towns away from where his wife works. The house is in a older suburb adjacent to Boston, and is itself older and in need of some TLC. So rather than move in right away, the new homeowners will stay in their apartment until the lease is up. They’ll spend just about every free moment of the few months getting their house ready to live in.

Of course, we didn’t let them do all of this alone. Uncle Ralph and I traveled to Boston to spend a week helping them clean, paint and otherwise get the house ready. One of the things that we really helped with is how to prioritize tasks. Since it’s getting close to winter, we stressed the importance of getting only the most basic outside things done. Fixing up the yard, cleaning the siding, touching up the paint etc. can all wait for the spring. What really needed to be done is the inside, not only so they can move in but so they can live there comfortably through the approaching winter.

With that in mind, here’s a list of tasks that needed doing. It’d be great to hear from you what your list of tasks would be.

1. Change the locks on the exterior doors. As soon as the closing is over and you’ve gotten the keys to your house, either buy and install new lock sets or have a locksmith come to the house to switch them out. Let’s face it, the previous owners, Realtors, maintenance folks and who knows who else are all likely to have keys to your place. For some peace of mind and as a necessary step in making this house yours, get new locks installed immediately.

Highlight your home’s architecture with the expert advice of interior design specialists and top home decorators

Continue reading →

The housing market may not quite return to normal next year, but it’s getting there.

Dusting off their crystal balls, real estate experts can at least spy the path toward for the sector in 2014. According to real estate listing and research site Trulia, sales and prices of of non-distressed homes are almost back to normal, while foreclosures are ebbing and fewer homeowners are behind on their mortgage payments.

Yet while this march toward a more stable housing market is a welcome one, it’s creating new problems along the way. Expect less highs and lows next year, but not smooth sailing. Here are five trends to look for in the new year:

Mortgage rates will top 5 percent. This is a matter of when, not if, as well as how high interest rates on mortgage loans. As 2013 draws to a close, mortgage rates have increased 1 percent over last year, rising on the back of a strengthening economy. Stronger economic growth will eventually lift the Federal Reserve’s hand out of the mortgage market in 2014, causing it to taper its bond-buying stimulus program. When the Fed merely mentioned tapering the program last June, rates jumped nearly half a percentage point overnight. Continue reading →

Following today’s housing recovery is like watching a bunch of sixth grade girls decide which boys are cool and which aren’t. Boy to boy, housing market to housing market, the winners and losers are constantly changing. Had one predicted just a year ago that five of the 10 healthiest housing markets would be inCalifornia, one might have been summarily dismissed.

But Zillow has found that the nation’s healthiest housing market is San Jose, followed by San Francisco, Los Angeles and San Diego, and just making it at No. 10, Sacramento.

“Rapid home value appreciation in the West, particularly California, is currently having a very positive effect on a number of other factors, including negative equity, foreclosure activity and the overall financial health of local homeowners. But that same rapid appreciation may cause affordability issues in the future in these markets, leading to potentially unhealthy conditions,” Zillow Chief Economist Stan Humphries said. Continue reading →

Buying a house? Thinking of selling your property? A lot of data came out in the last week that might help shape how you think about the important deal ahead. Here are some of the most important takeaways:

Sales have dipped a bit

Existing home sales in October were down slightly from September. But that doesn’t mean housing is crashing. Single-family sales were off 3.2 percent from September, according to the National Association of Realtors. But October sales were up 5.1 percent from a year ago, to a seasonally-adjusted rate of 5.12 million units. The market for existing homes peaked at a 5.39 million-unit-rate.

The Realtors’ conclusions are supported by data from Zillow (NASDAQ: Z FREE Stock Trend Analysis), the online listing service. It also saw some slippage in sales across the country.

In addition, the Realtors’ index of pending home sales was off 0.6 percent in October from September. Are the month-to-month declines a big deal? Probably not. Not unless interest rates shoot markedly higher. Continue reading →

So you’ve pulled your sweaters out of mothballs and found your mittens at the bottom of the coat closet. But what about your house — is it prepared for the cold months ahead?

You’ll be a lot less comfortable in the coming months if you haven’t girded Home Sweet Home for Old Man Winter.

With the help of several experts, we’ve boiled down your autumn to-do list to 10 easy tips:

1. Clean those gutters  
Once the leaves fall, remove them and other debris from your home’s gutters — by hand, by scraper or spatula, and finally by a good hose rinse — so that winter’s rain and melting snow can drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house, the Insurance Information Institute says.
As you’re hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house’s foundation, where it could cause flooding or other water damage.

“The rule of thumb is that water should be at least 10 feet away from the house,” says Michael Broili, the director of the Well Home Program for the Phinney Neighborhood Association, a nationally recognized neighborhood group in Seattle. Continue reading →

Interest rates on home loans may still be hovering near record lows, but experts say rates aren’t expected to stay this low for much longer. As the economy and housing market continue to improve, home buyers should expect to see interest rates tick up, which can have a big impact on their buying power.

“Interest rates will start to rise into January and throughout the year,” says Michael Corbett, Trulia’s real estate expert. “Most people don’t realize how much this affects them.” Even a tiny change in rates can affect their buying power, he says.

Rewind three decades, and homeowners’ were facing interest rates hovering around 11%, but the  2008 housing bubble burst changed the structure of the housing market and sent interest rates and home prices plunging. Continue reading →

Dogs might be man’s best friend, but that doesn’t mean it will be easy to stage and show a home with a four-legged gatekeeper on the job. From an overly exuberant personality to downright gruff demeanor, dogs can make it tough to show a home. Following are some ways to minimize distress to Fido and ensure that visitors are safe and that the house remains as appealing as possible.
Clean It Up: Because we love our dogs, we don’t always see what is in front of our very eyes. Take a good look around. Pick up the dog toys, fill any holes in the backyard, and be sure to dust and vacuum any pet hair before allowing anyone in the home.
Notify: Make sure the listing agent includes a note that informs everyone about a dog on the premises and whether there are any special instructions for dealing with visitors. Not only will this prevent a sudden surprise visit that could startle the dog, but it also provides important information to buyers who may suffer from asthma or allergies.
Schedule: Whenever possible, ask agents to schedule visits around a time when you can take the dog out for a walk or drive. This allows prospective buyers and the agent to direct attention toward the home and amenities rather than deal with the pet.
Contingency Plans: Take special precautions to make sure pets have proper identification. Mistakes happen, and a beloved pet can escape or get loose without anyone realizing it. Leave special instructions on where the pet belongs at all times and what to do in the event of an emergency.

It is no secret that one of the key things people look at when they are buying a house is the bathroom. That is why it is so important to make your bathroom look as big, beautiful and up-to-date as possible. Unfortunately, many bathrooms these days are quite small, but there are ways of making them appear sleeker and larger.

Fixtures and cabinetry

One thing that can help is to install fixtures that are as high-tech and as contemporary as possible. Their streamlined appearance can give a bathroom a more spacious appearance.

Another way to make a bathroom appear larger is to remove all bulky cabinetry. For instance, if you have a sink that is encased in a big clunky cabinet, you can remove it and get a freestanding sink.

Buying fixtures that are smaller than usual can also make the bathroom look bigger.

Toilets, bathtubs and showers

You can buy toilets nowadays that are very narrow and sit close against the wall.

You can also buy “tankless” toilets that situate the tank on a pipe high above the actual seat.

Old-fashioned bathtubs can also take up a lot of room in a small bathroom.

One solution might be to rip out a large bathtub and replace it with “a newer, smaller one — or, have a bathroom with just a shower stall.

Redoing the floor in stone and having an open shower with a glass stall can also make a smaller bathroom look more luxurious and spacious.

Colors

Yet another way to keep the bathroom looking spacious is to avoid painting it in dark colors — keep the walls and shelving as pale in color as possible.