The real estate roller coster leaves many questions

Let’s face it, times are tough and on any given day the mood is a different one than the day before.  The market’s up, then down, we’re in a recession, we’re recovering, it is hard to know what is really happening out there with so many mixed signals.  Real estate is difficult to figure out, and remains relative to where you are.

Is real estate improving?  Sales are up, inventory is down but foreclosures are expected to keep coming, especially with unemployment figures on the rise.  To find out if real estate in your area is improving talk to a real estate agent and look at the statistics that they provide.  The December real estate sales figures were down as a nation but some areas of the country saw an increase in sales.

Have we hit bottom?  Parts of the country have hit bottom other parts still have a way to fall.  Home prices are apparently steady in parts of the country and climbing in others.  The areas where home prices will continue to fall are those hit hard by job losses, an increase in foreclosures and too much inventory.

In a nutshell, real estate is relative.  It is improving in many areas and as soon as our recovery includes job growth real estate is going to improve in many more areas.

Click here for an article about real estate on Yahoo Finance.

There are many inexpensive ways to make your home more appealing

There are a million ways to improve the look of your home, some are more expensive than others.  If you are thinking of selling your home or already have your home on the market here are some tried and true, inexpensive ways to improve your home and make it more appealing to a potential buyer.

• Paint.  Painting a home is something that anyone can do themselves, or hire a painter to do.  Fresh paint on the interior and exterior of a home makes it instantly appear clean and fresh.
• Clean & De-clutter.  Remove clutter, family photos and other personal items and clean and organize your home.  Clean your carpets.
• Repair & replace.  Have a broken window?  Fix it.  Does your screen door squeak, oil the hinges.  Look at your home with a fresh set of eyes and fix what looks broken or is broken.  Duct tape may be fine for you, but probably not a prospective buyer.

These are just a few things that you can do yourself.  It is a competitive real estate market out there and to sell your home quickly and for the most money it has to look its best.

For more inexpensive home enhancement ideas click here to visit an article at Trulia.com.

The FHA is doing its part to insure that it will be able to keep financing new homes

The past few years have not been easy in the housing sector and the FHA is working hard to assure its stability in the market.  Created to insure that people could purchase affordable homes and catering mostly to the first time home buyer, the FHA is an integral part of the real estate business and keeping the association healthy is important to communities around the country.

The changes that the FHA is making to insure its survival are as follows:

• The mortgage insurance premium will rise.  It will now be 2.25% of the loan amount as opposed to 1.75%.
• New Borrowers will have to have a FICO score of 580 or more to qualify for a 3.5% down payment, those with a score of less that 580 will have to put a 10% down payment toward their new home.
• Seller concessions are being reduced to 3% from 6%, to limit any inflation that can occur on the price of a house.
• FHA lenders are going to be carefully scrutinized to make sure that they are adhering to FHA rules and regulations.

The FHA has helped to put many people into new homes since its inception in 1934.  Its changes reflect its desire to continue to help many more for years to come.

For more information on the FHA changes click here.

Be prepared for what a home inspection might reveal when selling your home

Home inspections can often make or break a deal.  If possible sellers should have one done ahead of time so repairs can be made and a home can be in its best possible condition.  However, often a seller does not do a home inspection first and is caught off guard by a long list of repairs presented in the due diligence portion of the contract process.

The most common home ailments that show up in the home inspection process are:

• Faulty electrical wiring
• Roof damage
• Plumbing issues
• Poor drainage
• General lack of upkeep

These are issues that can add up to a potential home buyer walking away if a seller is unable to step up and make the repairs or commit the money to make the repairs.  Examine these aspects of your home yourself, if you know everything is in good condition and the work that has been done to your home has been completed by professionals then you can rest easy, otherwise be prepared to make repairs in order to sell your home.

To view an article on home inspections by Realtor Magazine, click here.

The tax credit is not just for those buying a bigger home, it also works for those wanting to downsize

When the First Time Home Buyer Tax credit was extended and expanded most people thought the expansion was only for home owners who wanted to move up, those who wished to buy a bigger, more expensive home.  In fact, the expansion simply includes those who have owned a primary residence and lived in it for at least five years consecutive years out of the last eight years.  If current home owners want to downsize they can use the tax credit toward their new home, regardless of whether it costs less than the home that they are selling, regardless of whether it is a smaller home than the one that they are selling.

It is an anomaly that everyone assumes the tax credit is only for purchasing bigger and better.  Many people, especially those whose children have grown and left the nest, want to downsize.  After-all, who doesn’t want to make life simpler these days? 

If you have been considering selling your home and moving into a smaller space, consider doing so before the tax credit expires.  Place your new home under contract by April 30th and close by June 30th and you could have a few extra dollars in your pocket.

For more information on the tax credit, click here.

Now might be the best time to lock in a low mortgage rate

Low interest rates have been gracing the real estate market with their presence for the past year but the word on the street is that they won’t be here much longer.  While mortgage rates aren’t going to skyrocket out of sight, it is doubtful that they will decrease and certain that they will steadily begin to rise.

For those wishing to lock in at below 5%, the time just might be now or never (or at least for a very long time).  This past week, the first week in January, the average 30 year fixed mortgage rate was 5.09%.  The general sentiment among economists is that rates are not going anywhere but up from here.

The strengthening of the economy equals less chance for discounted rates.  If you want to refinance or purchase real estate, now might be the best time to do so.

For more information on mortgage rates click here to look at a recent article from CNNMoney.com.

Take time to choose the right broker when selling your home

When preparing to sell your home it is important to find a real estate professional that will best suit your needs.  A warm handshake and a friendly smile is all well and good but if you want to sell your home pick a broker that is experienced and knowledgeable, someone that will do the best job for you.  When selecting your real estate agent here are a few things to keep in mind:

Data.  Get a prospective Realtor to bring in a copy of what they have listed and closed.  They can present you with an MLS report that displays their inventory.

References.  Get references from a potential Realtor and call them.  Find out what other people’s experience with a particular Realtor has been.

Price.  Get an evaluation of your property.  A solid real estate professional will be able to detail what has been selling and for what price.  He will be able to evaluate your home and your location, giving you a value for your home that will help sell it not deter people from looking at it.

Plan.  What does your Realtor plan to do for you in terms of marketing, sales, listing, etc.  Make sure he has a plan for your house and find out what he is willing to do to get it sold for you.

Real estate is often a person’s most valuable asset.  Do your legwork and choose the best broker for your home.  He or she should be a salesperson.  If they can sell themselves to you perhaps they are halfway to selling your home for you as well.

Exterior improvements give more of a return when remodeling

There is an annual report that examines the cost versus value for home remodeling.  The report is helpful for those who are considering making improvements to their homes, especially if their home is one that they consider selling in the near future.  Historically, bedrooms and bathrooms are where people consider spending their money but the return on the remodel investment is not necessarily there.

According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with.  Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home.  The return on these projects is typically 80% or more.

The annual report shows how important first impressions are.  If you are considering selling your home make sure that the exterior is as eye catching as it can be.

Click here to learn more about remodeling costs versus value at The National Association of Realtors’ website.

Real estate is ending 2009 on a more positive note

Real estate is showing strong signs of recovery.  Last month, real estate sales were up over 7% for sales of existing homes.  The increase in real estate sales was seen in every region of the United States, due mainly to the first time home buyer tax credit, which was originally set to expire at the end of November, 2009.  Low mortgage rates and low home prices have also been catalysts.

Foreclosures will continue to rise with unemployment, keeping real estate prices from rising in harder hit areas, and home values as a whole are expected to remain flat for some time.

Interest rates are not expected to continue dropping and will most likely head in the opposite direction, expected to hold steady around 5.2%.  According to the Wall Street Journal, Federal Reserve chairman Ben Bernanke himself recently locked in a refinance on his residence, a clear indication that rates just might be as good as they’re going to get.

For now, the data shows that real estate sales are on the rise and will continue to improve as long as the mortgage rates stay low and the tax credit remains in place.  What happens during the latter half of 2010 is up in the air, but for now the good news is far better than the news of a year ago.

In today's real estate market it is better not to sell unless you have to.

Today’s real estate market is a buyer’s market, which means sell only if you have to.  The bottom of the market is near, if it has not already occurred, which means if you don’t have to sell don’t.

The reason you shouldn’t sell your real estate right now is clear, you are not going to get top dollar.  However, if you have to sell you need to make your home as competitive as possible.  Your home not only needs to be priced right it needs to look its best.
It is not the best time to pour money into your home to fix it up but it is a good time to make it look its best.  Paint it, stage it, make it eye catching.  Most importantly, price your real estate better than  the neighbor’s house and you will be more likely to catch a buyer.

Real estate is expected to drop a bit more if not remain flat.  If you have to sell be as competitive as you can.  If you don’t have to sell don’t.  It will be a while before real estate values start to climb, but if you can hold out you might fare better in the long run.