Real Estate Blog

Representation by a Lawyer in a New Jersey Real Estate Closing

By Gerald D. Siegel, Esq.

The first phase of a real estate closing begins with the preparation of a contract after there has been an agreement in principal about the key terms of a purchase or sale. The law requires that any agreement for the purchase and sale of real estate be in writing to be “legal.”

In New Jersey, real estate agents are allowed to prepare such contracts. The contract must contain a paragraph concerning each party’s right to have the contract reviewed by an attorney within three business days of the delivery of the signed contract to each party. The “attorney review clause” gives the attorney for either party the right to disapprove the contract, for any reason should their client want to get out of it. Oftentimes, due to time considerations, an attorney will disapprove the contract to obtain more time to negotiate more favorable terms for their client.

A good contract should encompass the following:

1. A contract sales price.
2. The amount and time frame for the agreed upon deposits to be paid.
3. Identification of who will hold the deposit until closing.
4. The amount of the mortgage loan the buyer must obtain to buy the property.
5. A date by which the mortgage loan must be obtained.
6. The right of the buyer or seller to cancel the contract if the buyer can’t legitimately obtain the mortgage loan.
7. A clear closing date.
8. That the seller must convey good title to the home so that no one in the future can challenge the buyer’s right to ownership.
9. What appliances are included in the sale.

A clause providing buyers with the right to have an inspection of the property for termites, radon, and physical defects in the property, when these reports must be obtained and delivered to the parties and how objectionable finding will be handled.

The reason is simple: all home purchases in New Jersey are “as is.” This means that
You have to go into the purchase with your eyes open. Once ownership is transferred, the
Seller is relieved of any responsibility if the home has problems or the appliances break
down, unless the seller has committed a fraud.

Once the inspections occur and reports provided, further negotiations may take place
if physical defects are found. Sometimes seller will agree to make repairs or allow a credit
against the sales price to resolve inspection issues. Sellers will usually not be responsible
to make cosmetic repairs.

A clause stating that the Seller is responsible for obtaining and paying for repairs, if any, to obtain a municipal Certificate of Occupancy.

Most towns have a law that requires that the building department perform an inspection of
property before it is transferred/sold.

Therefore, the classic real estate closing can be looked at in phases: contract preparation and attorney review, inspections and negotiations as a result of the inspection and the activity which takes place once the buyer received the written mortgage loan commitment, and the closing itself.

Once the mortgage loan commitment is obtained by the buyer, the seller is so advised. This makes the seller feel secure. A flurry of activity takes place. It is at this time that buyer’s attorney orders title, assessment and judgment searches. This is a history of the Property and its owners which reveal problems, if any, with the title to the house and any legal judgments against the seller.

This work is performed by a title company which will make a written report, continually updated until the closing. The report is provided to all the lawyers and to buyer’s lender so that everyone is aware of the history of the property. Any title issues or judgment issues will be resolved at this time with a view towards the closing.

The closing is normally held at the office of the buyer’s attorney. A day or two before the closing the title insurance company, which usually prepares the HUD -1 will contact you and inform you how much money to bring to closing in certified funds. (Personal checks cannot be accepted).

The buyer comes to the closing before the seller to sign the mortgage loan documents and other papers required by the lender. Buyers should be prepared to sign papers until their hands are very tired. At the very least you will sign a “note”, a promise to pay back your lender, a “mortgage”, in which the house is given to the bank as collateral for the loan, an affidavit of title that recites your marital history and any open judgments against you, and a “RESPA” or “HUD-1’ which is the closing statement breaking down and itemizing each closing cost and where all the money in the transaction is going and who is getting it.

After the mortgage loan is closed the seller comes and provides a ‘deed” the document giving you ownership, a certificate of occupancy, keys garage door openers and other routine documents.

While each party usually has an attorney, closings are usually non-adversarial. Lawyers who excel in real estate transactions are good problem solvers who help make the process run smoothly. The purchase and sale of a home should be positive life cycle events and good attorneys guide the parties towards that goal.

Gerald D. Siegel, Esq. is an established attorney who has been practicing in this area for 30 years. He has performed numerous closings concerning local properties with clients who utilize the various lenders in the area. Mr. Siegel’s contact information is set forth below, should you have any questions.

Gerald D. Siegel, Esq.
Law Offices Siegel & Siegel, P.C.
666 Plainsboro Road Bldg 100 Suite F
Plainsboro, N.J. 08536
Tel. 609-799-6066
Fax. 609-799-6274
E-Mail: gsiegel@nj-negligencelawyer.com
Web Site: www.nj-negligencelawyer.com
www.centraljerseypersonalinjurylawyer.com

Representation by a Lawyer in a New Jersey Real Estate Closing

Jersey’s housing market is doing better than most other states
Wednesday, May 14, 2008
BY SAM ALI
Star-Ledger Staff

The median price for a single-family home fell 7.7 percent, to $196,300, in the first quarter, compared with the same period last year — the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.

But the Northeast region bucked the national trend, with existing home prices rising 3.2 percent during the quarter, to a median of $280,000. The Northeast was the only region in the country to show a rise in home prices during the first three months of the year, according to quarterly housing data released yesterday by the NAR.

In New Jersey, the housing market continued to fare better than the nation as a whole.
Home prices in the Garden State rose in a number of areas, including the Atlantic City region, where the median sales price increased 4.8 percent in the first quarter, to $277,400, and the Trenton-Ewing market, where the median price rose 1.6 percent, to $288,200. The median is the price where half the homes sold for more and half for less.

And in stark contrast to the rest of the country, New Jersey was one of only three states where the volume of existing home sales actually rose in the first quarter compared with a year earlier.
Nationally, existing-home sales — which generally account for 85 percent of all home sales — dropped 22 percent from the first quarter of 2007, the NAR reported.

However, in New Jersey, the sales volume rose 4 percent. The other two states that posted increases in home sales for the quarter were Alaska and Illinois.

Kenneth Fears, an economist with the NAR, attributed the jump in existing home sales in New Jersey to a dramatic drop in 30-year fixed mortgage rates over the past six months. Fears said interest rates on conforming, 30-year, fixed-rate loans slipped to as low as 5.8 percent, from 6.8 percent, making home buying more affordable.

The low rates, coupled with sluggish sales the previous two quarters and New Jersey’s proximity to Manhattan, apparently led to a spike in demand during the most recent quarter.

“Part of what we’re seeing now is pent-up demand is getting released again,” Fears said. “Sales in New Jersey were very slow for awhile and it was hard to get financing and rates were higher. It has since loosened up.”

Also helping spur sales in New Jersey is a resurgence in the number of lenders getting approved to make FHA loans — mortgages backed by the Federal Housing Administration that cater to people with blemished credit and low-to-moderate income households, said Lawrence Yun, chief economist of the NAR. Demand for FHA loans, which historically accounted for about 20 percent of mortgage originations, dried up during the housing boom as homebuyers were lured by the ease of securing subprime loans, Yun said.

FHA applications rose 95 percent in the fourth quarter of 2007, Yun said.

“To originate FHA loans, lenders first need to get certified from the HUD (Department of Housing and Urban Development), and more and more lenders are trying and getting approved,” he said.
Yun said he expects an even bigger rise in FHA loan usage this year.

The housing market in other parts of the country clearly did not fare so well during the first quarter, according to the NAR report.

The NAR’s quarterly survey of home prices showed prices in the South, dropped 7.5 percent, to a median of $164,200; in the Midwest, they fell 7.9 percent, to $142,700; and in the West, they plunged 12.3 percent, to $296,300.

All told, median prices in 100 of 149 metro areas fell in the first quarter of 2008.
In New Jersey, existing home prices in the Newark-Union area, which includes Essex, Hunterdon, Morris, Sussex and Union counties, fell 3.4 percent, to $409,300. In the New York-northern New Jersey area, the median price fell 3.9 percent, to $445,4000. And in the Edison area, which includes Middlesex, Monmouth, Ocean and Somerset counties, the median home price fell 0.6 percent, to $361,200.

But even in those parts of the state where prices fell, the declines were modest compared with most of the rest of the country.

The NAR blamed much of the record decline in home prices on liquidity problems that are making it difficult for homebuyers to secure financing for expensive homes in high-priced markets.
Indeed, lenders are charging between 1 and 1.5 percentage points more for so-called jumbo loans, compared with conforming loans under $417,000, said Keith Gumbinger, a vice president at HSH Associates, a financial publisher based in Pompton Plains. And the higher rates are discouraging sales in higher price ranges, he said.

As of last week, the average rate on a 30-year fixed jumbo mortgage was 7.18 percent, compared with 6.03 percent for a conforming loan, Gumbinger said.

Also hurting home prices and sales is the big spike in foreclosure rates over the past 12 months, Fears said.
A separate report yesterday showed the number of home foreclosures rose sharply last month compared to April 2007, jumping 65 percent nationally. Data released by the California-based research firm RealtyTrac showed more than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.

“In areas where you have a lot of foreclosed properties, lenders are fire-selling those homes at deeply discounted prices, so that is skewing median prices down as well,” said Walter Molony, a spokesman for the NAR.

More here:
Bucking the trend

by SmartMoney.com Staff
June 9, 2006

Read more here:
Which Home Improvements Pay Off?

More here:
CMA

1. First impressions count Roll out the red carpet for potential homebuyers by sprucing up your entryways, especially the one on a lockbox. Welcome mats, planters filled with seasonal flowers, and clutter-free foyers and hallways set the stage.
2. Sell the space, not your stuff. Remember that the goal of a successful showing is to make a prospect feel at home – like it’s theirs, not yours. Put away your extensive personal collections. Less is more: open up your space so prospects can actually see what they’re buying.
3. Paint and elbow grease work wonders. Fresh paint and a thorough cleaning will give you the greatest “bang for your buck.” Remember that neutral walls are your best bet when staging a home for sale. Lowe’s has all the right shades to make your home more inviting. Check out lowes.com for fun tools like the Paint Visualizer http://www.valsparatlowes.com/ coordinate-colors.html.
4. Go with the flow. Arrange furniture for easy traffic flow. Consider placing a major piece of furniture at an
   angle, such as a couch or desk. Angles add interest and can create a more open feel.
5. See the light. Move lamps to dark corners and arrange window treatments so that natural light
   floods your rooms. Brighter is better, and your rooms will look larger. Visit Lowe’s extensive lighting section for the latest in fashionable, functional lighting.
6. Go green. Live plants can add decorative flair, without spending a bundle. Plants and cut flowers have a way of warming up a room.
7. Don’t forget the outdoors, especially this time of year. If you have a porch, deck or patio, clean the furniture and replace worn cushions. Breath new life
   into your deck with a fresh finish; Lowe’s has a variety of deck staining and sealing products that are easy to apply.
8. Make the kitchen sparkle. De-clutter the countertops by removing toasters, food processors and other
   non-decorative items. If you have a breakfast table or counter, put out a couple of table settings complete with place mats, napkins and dinnerware.
9. Warm up an empty home. If your home is vacant, consider renting furniture for key rooms, but don’t
   go overboard. Ask your real estate professional for
   advice, based on your home’s unique features and selling points.

Here is the original post:
9 Home Staging Tips for Faster Sale

by Stacey L. Bradford
June 9, 2006

IF YOU’RE THINKING OF selling your home, chances are all the headlines warning of the real estate bubble bursting have you feeling a little anxious.
Already, the buying frenzy has slowed substantially in places like New York City, Miami, Washington, D.C., Las Vegas and San Diego — areas that reported very slow price growth in the fourth quarter of 2005, according to the National Association of Realtors (NAR). At the national level, the real-estate market has slowed down significantly compared with the frantic 2004 and 2005.
The NAR expects that as mortgage rates rise this year, home sales will drop: about 400,000 fewer people will buy homes this year compared to 2005, according to NAR spokesman Walter Molony. Already, the real-estate market is returning to what the trade group calls a balanced market between buyers and sellers. “What’s happening now is with buyers being on more equal footing with sellers, they don’t feel like they need to make snap decisions,” says Molony. “They don’t have to bid over the asking price, they can take the time to do the due diligence.”
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what’s selling, what’s not and why. Finally, don’t expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. “The first question a buyer asks is how long the house has been on the market,” says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. “If it’s been on a while, they ask what is wrong with the house.”
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. “Overpricing leads to low bids,” Liebman says. “Proper pricing leads to high bids.”
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don’t forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. “If your grass isn’t green, make it green,” Liebman says. “If you have weeds, get rid of them. If the shrubs are overgrown, cut them.” Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. “If there are any doubts about the mechanical functions, a buyer will walk,” Remodeling Magazine’s Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don’t forget to paint over ugly water stains. If you don’t, a potential buyer could see it as a warning sign of a larger issue.
If you’re inclined to leave your home as is, prepare to drop your asking price. “I hate to say it, but price cures everything,” says Era Key Realty’s Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There’s some basic advice that’s worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group’s Liebman even suggests fresh flowers. “Baking cookies could be a bit silly and obvious,” she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.

Originally posted here:
Selling Your Home in a Cooling Market

by Stephanie AuWerter
June 9, 2006

WITH SUMMER FINALLY kicking into gear across the country, you can almost hear the gentle hum of air conditioners ratcheting up. And with it, climbs home energy bills.
These days, the average household spends $1,400 annually on energy (based on electricity and gas usage), according the Environment Protection Agency. But much of that, say energy conservationists, is money wasted.
The good news: Cutting back doesn’t mean you need to be a tree-hugging naturalist, suffering stoically as you read by candlelight. These days, you can do right by the environment and your pocketbook — without any major lifestyle sacrifices. In fact, by taking some relatively painless steps, you can cut your bills by one-third or more.
Here are eight easy ways to save this summer (including a few tips that will work year-round).
1. Upgrade Your Thermostat
Are you the type who likes to chill after a sticky workday by coming home to a house that’s as cool as a meat locker? You can live this dream and cut your energy costs by investing in a programmable thermostat. These handy little devices allow you to cool your home at different temperatures at specific times, explains Mark Hopkins, acting co-president of the Alliance to Save Energy (ASE).
So you could, for example, turn down the AC during the day, when your family is away from home — and crank it up again 30 minutes before the first family member returns. Or, you could turn it down during the wee hours of the morning, when no one’s likely to notice a shift in temperature.
Installing a programmable thermostat shouldn’t set you back more than $100 to $150 — and the energy savings can be substantial. According to the U.S. Department of Energy, you could cut your heating and cooling bills by 10% annually just by turning your thermostat back 10% to 15% for 8 hours a day.
2. Go Green
OK — this will require a bit of effort on your part, but the returns are twofold: Planting just three shady trees around your house not only can whack $100 to $250 off your annual heating and cooling costs, according to the DOE, but will most likely make your yard more attractive, to boot. (Leafy trees can shield the house from direct sunlight, keeping temperatures down, while still permitting sunlight to hit your house during the winter months.)
Not interested in nurturing your green thumb? Simply pulling the shades (or drawing your curtains) can cut energy costs as well, says Mel Hall-Crawford, an energy efficiency expert at the Consumer Federation of America.
3. Keep It Clean
Keeping your air-conditioning unit clean and in peak performance is another big money saver. To kick the summer off, your AC unit should have a professional tune up (expect to pay somewhere between $90 and $120), says Wendy Reed, an Energy Star spokesperson at the EPA. (Energy Star is a joint program run by the EPA and the DOE that, among other things, deems certain products energy-efficient.) And air-conditioning filters (regardless of whether you have central air or an individual unit) should generally be checked every month or so to see if they need cleaning or replacement. This is something you should be able to do on your own.
Another item to add to your spring cleaning list: Dusting off your refrigerator condenser coils, says Hall-Crawford. This will make the unit run more efficiently.

4. Buy a Better Bulb
Compact fluorescent light bulbs (called CFLs) require 75% less energy than traditional (officially called incandescent) light bulbs, and last up to 10 times longer, according to the ASE. Be sure to look for CFLs with the Energy Star label, since these bulbs won’t have any buzzing or humming problems, promises Energy Star’s Reed. These bulbs now come in smaller sizes (called subcompacts) that can fit into any lamp, and they have a wider color spectrum. According to the ASE, replacing just four well-used 100-watt incandescent bulbs with equivalent 23-watt CFLs will save you $108 over three years. (For a table of equivalent wattages, click here.)
Also, do you still have one of those halogen lamps leftover from your college days? (You know — those tall lamps that didn’t cost much more than a couple of pizzas to buy?) Do yourself a favor: Dump it. Not only are these dangerous fire starters, but their bulbs, which can generate temperatures of 700 to 1,100 degrees Fahrenheit, are energy hogs as well, says Reed. That makes them considerably less inexpensive than they seemed back in the day.
5. Join the Fan Club
As many as 73% of homes have ceiling fans, according to the International Housewares Association. Are you using yours? A ceiling fan can balance out a room’s temperature, allowing you to turn down the AC and still feel cool, says Reed.
6. Unplug
Even when all of your home electronics are turned off, many continue to suck down energy. The main culprits: televisions, VCRs, DVD players, stereos, phones and microwave ovens. (Generally, anything that has a clock, a remote control or an on/off light falls into this category.) In fact, idle TVs and VCRs cost U.S. consumers $1 billion annually, or $30 per household, according to ACE. One solution: Plug the items that can truly be turned completely off into a power strip, and then use that as your on/off switch.
7. Fight Leaks
Your pricey, cooled air might be leaking right out of your house. Leaky windows and ducts (which carry the air to the rooms in your home) are two ways that cool air can be lost, making your air conditioner work harder. “We have found that as many as 70% of ducts are installed with leaks,” says Reed. Having your ducts properly sealed and insulated could save you as much as 10% in energy costs, according to the EPA. So if you think your duct system is faulty, try to have it checked out by an HVAC (heating, ventilation and air-conditioning) technician. (One way to find one is to visit the North American Technician Excellence web site, says Reed.)
8. Be a Savvy Shopper
By far the biggest way to save is to invest in energy-efficient appliances. When shopping around, look for the Energy Star label. There are more than 35 product categories that qualify.
Of course, replacing your appliances (particularly the biggies, like a refrigerator or dishwasher) will require an upfront investment. But if you’ve got an old clunker, you could recoup your costs quickly. For example, if your central-air-conditioning unit is more than 10 years old, replacing it with an Energy Star-rated model could cut your operating costs by 40%.

See original here:
Eight Ways to Cut Summer Energy Bills

by Marcie Geffner

The age-old observation that “you never get a second chance to make a first impression” certainly applies when it comes to attracting buyers to a home for-sale. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying.

How can you ensure that your home will make the best impression possible? Here are six tips for savvy home sellers:

1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.

2. Clear out the clutter. Real estate agents say buyers won’t purchase a home they can’t see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won’t be able to see your home. Get rid of anything you don’t need or use. Fill up your garage or rent some off-site storage space if that’s what it takes to clear out your home.

3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.

4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice - and likely magnify - minor maintenance problems you’ve ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you’ve taken good care of your home.

5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.

6. Get a buyer’s-eye view. Walk up to your home and pretend you’ve never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!

View post:
Sellers Tips: Setting The Stage Sells Your Home

Written by: Lankarge/Nahorney for HomeInsight

Home prices nationwide have grown an average of 53% in the past five years - what does that mean to you? Simply put, brisk home sales help keep the economy humming - they have become one of the most important drivers in our consumer-based economy.

Since 1929, stocks have returned an average of 10 percent per year, making them one of the best long-term investments consumers can make. But the average homeowner has gotten that same 10% over the past five years on their primary residence, making them nationwide feel wealthy, and this in turn has fueled consumer spending. (Historically, homes have appreciated by about 2 percent per year.)

To see a market snapshot of current home values, click here. Interested in home values in your region and the future direction of home prices? See articles about the Northeast, South, Midwest, and West.

Job Growth

Not only do home sales help keep the economy humming but they are also responsible for job growth, and help to make increasing wages possible.

Consumer purchases continue to comprise a growing part of the economy, and home sales are a major driver in consumer purchasing. Home sales provide a pile of cash to the seller, enabling the purchase of another home, or of other goods and services, which also helps the economy.

New homeowners move into a home with energy and enthusiasm, spending money on everything from appliances, to furniture, window treatments, and rugs. New homeowners tend to want to make the home their own, and spend a great deal during the first two years in a new residence making improvements, from cosmetic changes such as a new coat of paint to major renovations such as room additions.

Piggy Banks

Home values also matter because homeowners are more likely than ever to use their homes as banks, extracting their growing home equity to make additional purchases such as a new car, major home improvements, or to pay down credit card debt. So when home values are either flat or declining, those who have recently purchased a new home may be shut out of this source of money, which can have a dampening effect on the economy.

And with the average homeowner moving every seven years, buying a home at the top of a market, and then looking to sell when the market begins to move down, can leave homeowners upside down on their mortgage, with more to pay on that mortgage than their home is currently worth.

There is also the psychological aspect to home values. Homeowners whose home values are increasing often are more positive about the future direction of the economy and are more likely to keep consumer spending on the rise, supporting the economy. Even though a decline in home values actually represents a “paper loss” unless the home is sold, homeowners whose homes are worth less that the purchase price are more likely to have a more negative view of the direction of the economy, and may spend less, depressing consumer spending and creating a drag on the economy.

Rising home values are important to the economy, but home values that increase at too rapid a rate can depress the economy, pricing out some consumers out of the market. Exceptions to this rule appear to be shorefront homes, desirable retirement communities, and states with vibrant, growing economies.

Massachusetts Leading the Way

Leading the nationwide growth since 1980 has been Massachusetts, according to OFHEO. While home prices rose “only” 70.70 percent in the five years ending June 30, 2005, Massachusetts homes have appreciated a whopping 607.07 percent since 1980. This dramatic increase has been driven by sales in Boston and its suburbs, as well as Barnstable County, which includes desirable retirement and second home communities of Cape Cod and the islands of Martha’s Vineyard and Nantucket.

Next in appreciation since 1980 is New York at 492.33 percent, followed by Rhode Island at 469.61 percent, a state whose desirable coastline has attracted many seeking a second, or retirement home.

Many economists have predicted that the housing “bubble” will pop in markets that have gotten overheated (see the states mentioned in the sidebar). But even though your state or region may not directly feel the effects of that bubble popping through lower home values, if enough of those bubbles pop, the economy as a whole will cool down, and you may feel the effects in the form of a slower job market, lower raises, or perhaps higher loan rates.

Keeping an eye on home values can help you make educated purchasing decisions. Check home values in your area by clicking here. To keep an eye on home values in your region, see up-to-date articles about the Northeast, South, Midwest, and West.

Read the original here:
How do Home Sales Affect You?

Written by: Lankarge/Nahorney for HomeInsight

It sounds like a great listing - in your price range - in a good neighborhood - with features you’re looking for. First impressions mean a lot - but you find the bushes are overgrown, the front hallway is covered with tacky foil wallpaper, the kitchen cabinets are painted dark brown, the living room rug smells musty, and the hardwood floors have black water marks on them.

Should you head back out the door? Maybe. But to fully determine whether you should cross this house off of your list you’ll need to gather more information and perhaps look past the blemishes to get a full picture of this house’s potential. How do you do that? Follow these 10 steps.

1. Start with emotion, but end with facts. Buying a home is an emotional process. You often find yourself trying to determine if this is where you want to spend the next 10, 20, or 30 years of your life (and perhaps raise a family). It’s OK if your initial impression is an emotional one. But because the purchase can be the largest you’ll ever make, you need to make sure you gather all of the facts you need to make an educated decision. View homes for sale and find out what homes are selling for by clicking here.

2. Look for good bones. Don’t get hooked on the decorating. The town or towns you are targeting for your home search likely have a handful of builders who have built a majority of the homes. Get to know the reputation of these builders. Then, before going to look at a home, find out who the builder was. You’ll want to be careful when looking at homes built by those with less than stellar reputations.

Then you need to learn to look past the furniture, wall colors, window treatments, and other decorating, and just look at the home layout and flow. New cherry cabinets and granite counters matter little if they are in the galley kitchen and you have a family of five. At the same time a family room with black walls featuring a mural of the moon on one side also matters little if it is big enough for your needs. Aesthetics are relatively inexpensive to fix - major construction is another matter.

3. When looking at room layout, avoid corner doors. Rooms with doorways in the middle of walls flow better than rooms that open in a corner. Remember that when looking for your dream home.

4. Make sure the most expensive stuff works. The two most expensive rooms in a home to renovate are kitchens and bathrooms. If you’re stretching to be able to afford a home and still eat, make sure these two rooms don’t need renovating anytime soon.

5. Take an inventory of features, what you like and what needs fixing. Good news: With more houses on the market than in the past several years, you’ll likely be able to look at more houses before making a decision to put in a bid. Bad news: That means it can get quite confusing to remember the details of each home you look at. Develop a list and for each home you visit, take note of features, things you like, and things that might need fixing (see Keep Them Straight sidebar, above). Click here to find out about features of properties for sale.

6. Is there room for expansion? You might not be concerned with adding onto the home you’re looking today, but what about tomorrow? Don’t necessarily exclude those additions that don’t have room and a logical place to expand, but do understand that you will be limited in your options down the road.

7. Does the basement leak? If you’ve been lucky enough to live in a house with a dry basement (or perhaps without a basement) it’s hard to imagine the havoc a wet basement can bring to your life. If you’ve ever lived in a house with a leaky basement or hate the thought of a foot of water surrounding your furnace, you’ll likely be sure to check that either the basement doesn’t leak or it has a system that automatically removes water.

8. What’s the condition of the home’s exterior? Does it need painting, or is it sided? Does it have painted brick that’s peeling? Is the aluminum siding chalking? Improving the exterior can be costly. Check the exterior walls carefully before putting in a bid.

9. Landscaping: Does it look like a park or a landfill? Landscaping not only includes the grass, bushes and any gardens, but also the hardscaping - the sidewalk, deck and/or patio. People are spending more time than ever outdoors and you’re likely no different. Landscaping improvements can be costly, but is one area in which homeowners often tackle projects themselves. If you have the time, energy, and expertise you can save money by doing some landscaping improvements. But costs can add up here - be sure to factor that into your decision and/or bid.

10. Check the zoning, nobody likes surprises. Too often homeowners are horrified to learn that their tranquil neighborhood is being invaded by multifamily housing, a big commercial business, or a 24-hour convenience store. Before you put a bid on a house go the town hall, city hall, or county register of records and find out the zoning of all contiguous properties.

Read the original:
10 Steps to House Hunting with a Well-trained Eye

7 Keys to Selling Your House when Sales Are Slow
Written by: Lankarge/Nahorney for HomeInsight

What once was a booming residential real estate market across the country has slowed to a trickle.

Rising mortgage rates are lowering the affordability of homes and increasing numbers of sellers looking to cash in on the rapid price appreciation over the past few years has led to a dramatic reduction in buyers and a rapid increase in the number of homes for sale. These factors have led to too few buyers looking at too many houses, putting buyers back into the driver’s seat.

It’s a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

1. Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs.

But, when things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying. If your home is priced too high, you many never get buyers to even consider looking at your home. To see data on comparable homes, click here.

2. Quickly cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody wants to “give” their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to more quickly make the sale. Learn what properties sold within 30 days or less and for how much by clicking here.

3. Find the right agent — it’s critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They’ll help with everything from pricing to advising you on the other 6 other points in this article. Find leading agents who outsell other agents in your home town. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several - hire the one who you believe will do the best job for you.

4. Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn’t stand out from the rest then it’s time to get to work.

5. Consider home staging. The quickest way to add value to a home for sale is a fresh coat of paint. After, you may want to consider home staging—either do it yourself or hire an outside firm. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it home more appealing to prospective buyers.

6. Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don’t have the time or skill, find a handyman to go through your home and make repairs. Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

7. Offer flexible terms. Flexibility is the key now. You’d like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home but the buyers make a bid near asking price - but with the appliances. Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high - you don’t want to lose the only buyer who has looked at your home in a month.

View original post here:
7 Keys to Selling Your House when Sales Are Slow

7 Keys to Selling Your House when Sales Are Slow
Written by: Lankarge/Nahorney for HomeInsight

What once was a booming residential real estate market across the country has slowed to a trickle.

Rising mortgage rates are lowering the affordability of homes and increasing numbers of sellers looking to cash in on the rapid price appreciation over the past few years has led to a dramatic reduction in buyers and a rapid increase in the number of homes for sale. These factors have led to too few buyers looking at too many houses, putting buyers back into the driver’s seat.

It’s a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

1. Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs.

But, when things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying. If your home is priced too high, you many never get buyers to even consider looking at your home. To see data on comparable homes, click here.

2. Quickly cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody wants to “give” their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to more quickly make the sale. Learn what properties sold within 30 days or less and for how much by clicking here.

3. Find the right agent — it’s critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They’ll help with everything from pricing to advising you on the other 6 other points in this article. Find leading agents who outsell other agents in your home town. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several - hire the one who you believe will do the best job for you.

4. Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn’t stand out from the rest then it’s time to get to work.

5. Consider home staging. The quickest way to add value to a home for sale is a fresh coat of paint. After, you may want to consider home staging—either do it yourself or hire an outside firm. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it home more appealing to prospective buyers.

6. Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don’t have the time or skill, find a handyman to go through your home and make repairs. Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

7. Offer flexible terms. Flexibility is the key now. You’d like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home but the buyers make a bid near asking price - but with the appliances. Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high - you don’t want to lose the only buyer who has looked at your home in a month.

More:
7 Keys to Selling Your House when Sales Are Slow

7 Keys to Selling Your House when Sales Are Slow
Written by: Lankarge/Nahorney for HomeInsight

What once was a booming residential real estate market across the country has slowed to a trickle.

Rising mortgage rates are lowering the affordability of homes and increasing numbers of sellers looking to cash in on the rapid price appreciation over the past few years has led to a dramatic reduction in buyers and a rapid increase in the number of homes for sale. These factors have led to too few buyers looking at too many houses, putting buyers back into the driver’s seat.

It’s a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

1. Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs.

But, when things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying. If your home is priced too high, you many never get buyers to even consider looking at your home. To see data on comparable homes, click here.

2. Quickly cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody wants to “give” their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to more quickly make the sale. Learn what properties sold within 30 days or less and for how much by clicking here.

3. Find the right agent — it’s critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They’ll help with everything from pricing to advising you on the other 6 other points in this article. Find leading agents who outsell other agents in your home town. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several - hire the one who you believe will do the best job for you.

4. Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn’t stand out from the rest then it’s time to get to work.

5. Consider home staging. The quickest way to add value to a home for sale is a fresh coat of paint. After, you may want to consider home staging—either do it yourself or hire an outside firm. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it home more appealing to prospective buyers.

6. Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don’t have the time or skill, find a handyman to go through your home and make repairs. Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

7. Offer flexible terms. Flexibility is the key now. You’d like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home but the buyers make a bid near asking price - but with the appliances. Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high - you don’t want to lose the only buyer who has looked at your home in a month.

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7 Keys to Selling Your House when Sales Are Slow

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