The Group report indicates a marked increase in consumer spending since 2010 and a “modest re-acceleration” is predicted for the rest of 2013 due to a stronger labor market and improving financial and housing market conditions. Growth of 2.2% in housing and market conditions for 2013 is further anticipated, which is good news for your home.

According to Fannie Mae Chief Economist Doug Duncan, a sustainable pace is continuing in the housing market, and should “act as a tailwind for the economy throughout the year and into 2014.” The Economic & Strategic Research Group cited continued increased home demand as a possible significant contributor to growth in 2014.

Duncan went on to state, “Our May forecast predicts that the second half of 2013 will be a little stronger than the first half, despite the slowdown during the past couple of months.”

As the housing market shifts, does it change how you feel about your home status currently?

Do these statistics spur you towards selling your home?

As a buyer, does this information cause you to feel that now is the best time to buy your home?

If so, there are lots of options to consider as you buy and sell. If you have questions, please feel free to contact me. If you want to see the May housing forecast, please click here.

You may have several choices, from an early listing and rent back option to a quick sale or placement of a contingency.  A trusted real estate agent can explain the differences between each and determine which is the best alternative for your home sale.

No matter what you decide to do, many decisions will need to be made. Plan for higher than usual expenses as you navigate through dual transactions, since you could be supporting both households for a brief amount of time. Knowing housing market trends and comparable neighborhood sales  will help you to feel more comfortable with the process of selling your home and also give you a ballpark estimate on possible proceeds.

Deciding To Buy Your Next Home

Once you have an estimate on the sale of your house, you can start looking for your new one. You’ll need to determine where you want to live and the size home you are seeking, as well as put together a wish list for your new home. If you are relocating to an area far away, seek a real estate agent and/or mortgage lender referral from friends or family or ask me for suggestions, as well.  Different areas require varied strategies in home buying, so a local expert is always your best bet for finding the right home when you are making a big move.

When you find the perfect home, make an offer.

Don’t wait, don’t bargain.

Offer your best possible price and a high deposit with all your personal details, including a fantastic story about why you want why you NEED that house to be your home!

You see, the offer you write may be your ONLY chance to win the home, your home, and you want to give it your best shot.

In a housing market, like ours, where inventory is low and homes are only staying on the market for a short amount of time, multiple offers are being submitted on each home. Most are near or at asking price and some are beyond it.

Home sellers need to evaluate several offers and if yours is one of many (your agent should be able to tell you if other parties have indicated interest), it needs to stand out. That’s where your story comes in (along with your best price offer and earnest deposit).

3 Steps to Writing the Best Offer For Your Home

1. Offer up as much cash as you can in the form of an earnest deposit with the best possible price you can pay.
2. If you need lending, get pre-approved and formalize it by including a letter from your lender as part of your offer.
3. Write a from the heart appeal that explains your feelings about the house and why you need their home to be your home. If you have a good personal story, share it as well. Some home sellers are motivated by more than price and if they can “see” you in the home, it could make a difference.

Everywhere you look, there are buyers dealing with multiple offers. When you learn that the home you want is receiving multiple offers, it’s instinctual to have one of a few knee-jerk reactions:

• fail to take the situation seriously and go in low
•  blindly throw money at the sellers
•  panic/flail your arms/cry

However, none of these reactions will get you the ultimate result you’re looking for: the house you want at a price you can afford. Making a victorious offer is more art than science. Here are a few strategies for surviving a multiple offer situation – without getting into financial trouble.

To be successful and win the home, you need to amass an arsenal of information and use that as the basis for your negotiation.

Transaction Tip:

Ask your mortgage broker to provide a set of loan scenarios at the outset of your house hunt These scenarios should include the principal, interest, taxes, insurance and total monthly obligation for 3 or even 4 different price points. This will help you decide on your price range(s) when it’s time to negotiate.

1. Work From a Foundation of Sound Information

 The Market’s Needs 

You are in no position to negotiate, aggressively or otherwise, until you are well acquainted with the real estate market immediately surrounding your home. Some key questions you’ll need to ask your agent include:

• what have similar homes recently sold for?

• how much above or below asking price do homes sell?

• how long do homes stay on the market, on average compared with the home you’re buying or selling?

Your agent can help you understand these numbers and how they should relate to your own offer or response.

The Seller’s Needs

In addition, many times your agent can collect valuable information about what’s important to the other party, like do they care more about moving quickly, getting top dollar, or certainty that you can close the deal? The other agent isn’t obligated to divulge any information, but often will in the interest of facilitating a deal that addresses their client’s priorities.

Your Needs

Finally, it’s critical to know what your own priorities are. Ultimately, the bar for whether your negotiation for your home is successful is based on what the home and the terms of the contract are worth to you. Know your own bottom and top line for price and what your own priorities are before the negotiation begins.

2. Start Your House Hunt Lower Than your Top Dollar.

Ask any buyer who has ever fallen in love with a home and then had to compete for it: the temptation to blow your budget to win a bidding war for your “dream home” is extremely tough to resist. One way to set yourself up for success is to house hunt in lower price ranges from the get go. This gives you the freedom to aggressively bid if you find a home you love – and even counteroffer – without overextending yourself.

This might seem like obvious advice, but it’s advice many a buyer resists.

Avoid Negotiation disappointment – Get expert Help - Some think they should get as much house as they can possibly shell out the dollars to afford. And most buyers over-estimate their negotiation skills, pinning their hopes on the idea that they’ll be able to bargain the home’s owner way down.

Your agent can help reality-check you on this and help set up a smart starting price range for your house hunt by showing you the data on list price-to-sale price ratios in your area. If homes generally sell for 15 or 25% over the asking price, you can use that information to back into a price range that will allow you to be a successful buyer/bidder without breaking your bank.

3. Save By Offering More Than Asking

Offering more money *seems* like a super obvious wayto beat out other offers, but you would be amazed at how many bargain-seeking, recession-trained, and novice buyers simply don’t do it. Many think they’re scoring a deal by making low offers, even in the face of competition. However, if you lose out on five homes before the market educates out of your lowball offer strategy, you might end up facing

• even more competition for fewer homes

• higher prices

• the enormous cost of hunting for other properties

In addition, in a serious seller’s market, the end result will often be you spending more to finally score a property.

The Key to Success: Get Market Smart - If you find the mere thought of offering more than the list price exasperating, keep things in perspective. Know that today’s smart sellers are being very strategic and assertive, listing low to create an auction atmosphere and churn up multiple offers.

Don’t be duped into thinking you can get away with a low offer because the asking price seems like such a bargain. (And by the same token, don’t throw money at a place that is overpriced compared with the rest of the market.) The victorious buyers are those who are offering amounts backed up by the home’s fair market value, as determined by the very, very most recent sales – not sales from six months or a year ago.

4. It’s Not All About the Money: Closing-Ability is Key.

Sellers care – a lot – about how likely the offer they accept is to close escrow. When multiple offers get so numerous and so frenzied that buyers seem to be throwing money at a home, smart sellers pay attention to their home’s real value.

The fact that their home might not appraise at a crazily high price will motivate smart to sellers to focus not only on offers that are lucrative, but also those that seem realistic and close-able, which sometimes means an offer below the highest bid.

How to show you can really close

There are many ways to show off your ability to close during the offer process including:

• approval letters,

• proof of cash to close

• the professionalism with which the offer is prepared

and presented

• evidence of your credit score

• choice of mortgage broker/professional

• and more

All these things contribute to or detract from a seller’s estimation of how close-able your offer is. If you’re competing against other offers, you should be maxing out both your price and your offer’s close-ability, as evidenced by these characteristics. Ask your agent about documentation you can provide to prove your ability to close and do it on time.

5. Minimize time pressures.

Because shelter is a basic human need, the prospect of having to move out, relocating to a new job, or moving to a new town without having housing in place can cause even the most nimble among us to feel ungrounded.

Problem is, in the context of buying a home, moving deadlines can cost you thousands and thousands of

dollars. It can even cause you to make needless compromises in terms of the actual property itself:

compromises you might later (deeply) regret. If you are approaching a deadline for moving out or relocating, you’d do better to find a rental housing situation that will work for a while or will work as a Plan B than to try to hurry or force your home’s purchase or sale to meet the deadline.

 Get Expert Help - Whether you’re embarking upon your first home purchase or moving up and adding another property to your portfolio, multiple offer scenarios can be daunting. Seek out the help of a proven local market expert early on. It pays to work with a professional, local expert. Your agent can help you save valuable time and money during the house hunt, offer process, and in the many years that follow.

This outstanding article was offered by Trulia.

You may well have a question like one of the following…

•  “Which buyer do I choose?”
• “Who do I want to work with?” “
• Is a cash offer always better?”

Common wisdom of listing agents is that cash is king. Why? After all, at the end of the escrow, both cash as well as a mortgage end up being paid to the seller.

Typically, cash is seen as more desirable because you don’t’ have the contingency of the loan, and often do not have an appraisal contingency. Those two things are huge. Right now, homes are rising quickly in San Diego. The lack of an appraisal means that the seller can accept whatever price the market will bear…without worrying about whether the home will appraise.

Is a cash offer always better than a buyer with a mortgage? Not necessarily. Ironically enough, one of my buyers lost out on a bank owned home we bid on recently. Several weeks later, the cash buyer backed out because they run short of cash!!! It made me smile.

What I do find is that cash buyers often expect a discount price. In this market, it just is not worth it. I would rather take a buyer with a conventional mortgage who is willing to pay full price (and then some) – particularly if the buyer agrees to waive the appraisal contingency.

As a seller, your top priority (in addition to getting your price) should be a buyer who is highly likely to close the deal. That is someone who is motivated and absolutely loves your home. While we can’t necessarily measure motivation and give each of the potential buyers a personality test (would be nice)…there are some buyer conditions that improve your likelihood of closing.

1) Your ideal buyer has a significant amount of cash reserves. Over and above the down payment, these funds can be used in a wide number of potential mishaps, low appraisal, low owner occupancy in a complex, and more needed home repairs than anticipated.

2) As a seller, you also want your buyer to have a high credit score. Ask for a copy of their credit reports with their offer. It’s simple – the higher the buyer’s credit score, the more likely the deal will close.

3) As a seller, there is value in working with a seasoned, experienced buyer’s agent. Those Realtors who have 10 or more years in the business have weathered all types of markets and are experienced at handling the unknown of real estate transactions. In addition, more experienced agents generally qualify their buyers a bit more carefully to make sure they can complete a deal.

4) Last but not least, I would ask the buyer’s agent how many offers they have out in the field at the same time. Buyers are writing multiple offers, plain and simple. The going’s tough and I’ve certainly done it with my buyers. If the buyer has a number of outstanding offers, then there is a greater likelihood they will cancel your deal and move toward another one. You can’t be assured that the buyer’s agent will tell you the truth, but it is worth asking.

There are no guarantees in life or in real estate. Don’t be fooled by the presentation of a particular buyer’s agent. Make sure each buyer you consider selling your home to has the basics that you need for a smooth escrow. Doing so will hopefully save you from having a deal fall through.

When you need to either store or get rid of a lot of “stuff” to make your house look its best while on the market, holding a garage sale may be the ideal solution. Not only will your current house stage easier, but you will lighten the load of what needs to be moved to the new home – and make money in the process. Holding the perfect garage sale requires some planning and preparation. In fact, planning the sale may be the key to its success.

Planning the Garage Sale

I once knew a real estate agent who was so excited over her first listing that she planned to hold an open house the weekend after the home went on the market. She did no advanced planning – just chose the date. Nobody showed up at the open house – not even one person. It turns out that she was holding her open house on Super Bowl Sunday and the local team happened to be one of the teams playing.

When you settle on a date for the sale, dig out the local TV listings to ensure that there isn’t a major sporting event that will be televised on that day. Also make sure there isn’t a local event, such as a popular festival or parade. Although there are a lot of die-hard garage sale fans, even they will skip a sale if there’s something else competing for their attention.

The Yard Sale Queen suggests that if you have a major corporation in your area, find out when the employees get paid and hold your sale the weekend after payday.

Here are a few other things to consider during the planning stage:

• Have everything ready the night before the sale so that you’re not running around in the morning.

• Sketch out a plan for the sales floor, allowing room to move between aisles and ensuring that you can see all items from your perch.

• Make a list of each item you’re selling and the price you’ll be asking. During the sale, cross out each item sold and make note of the price received.

• Price items clearly.

• Ensure that you’ll have sufficient help the day of the sale and that everyone is in agreement over pricing and bargaining policies.

• Have an extension cord on hand so that customers can test electrical items.

• Save grocery bags in the weeks leading up to the sale so that you can bag the items your customers purchase.

• The Yard Sale Queen suggests that you go through all the pockets of clothing you plan to sell, check compartments in handbags, and fan books to make sure there’s nothing of value, or even old credit card receipts that may contain private information.

The Day Before the Sale

Now that you’re prepared for the sale, it’s time to make sure folks know about it. There are several ways to get the word out about your garage or yard sale. One of the best is by placing an ad on Craigslist. Here are a few other things to do the day before the garage or yard sale:

• Make signs to be placed around the neighborhood and to direct customers from a main thoroughfare. They should be large enough to be seen from the road and directions should be clear. Arrow-shaped signs are ideal.

• Go to the bank and get some cash, such as rolls of quarters, 20 to 30 $1 bills, and five to 10 $5 bills.

• Consider how you will hold the cash during the sale. A cashbox isn’t a good idea as it’s too easy for someone to walk away with it. Wearing a “fanny sack” around your waist or keeping a wallet in your pocket are much safer ways to hold your cash.

Sale Day

• Move sale items out onto the driveway if that’s where you’ve decided to set up the sales floor. Remember to put the most desirable items out front to entice customers to stop their cars. The Yard Sale Queen suggests placing some “manly” items out front, such as lawnmowers or power tools, to make it easier for wives to get their husbands to stop and shop.

• Set up the neighborhood and directional signs.

• Ensure that all items are clearly marked with the price.

• Greet people as they arrive to make them feel comfortable. Ask if they’re looking for anything in particular.

• Keep an eye on customers, but don’t hover over them.

Considerations

If you lived in a gated community, getting people into the sale is a bit more challenging. Contact your homeowners association first to determine what rules they have about yard sales and if there are any restrictions. Many HOAs hold annual community-wide sales where the gates swing open and the public is allowed to stream through.

Check local regulations to make sure your street signs aren’t in violation of any city or municipal codes.

Be aware of some of the more common scams:

• When making change, don’t immediately pocket the bill the customer gives you. Either hold it in your hand or place under a paperweight while you make change. This way, the customer can’t claim to have given you a larger bill.

• Large groups of customers arriving at once or rowdy children can be distracting. Have someone help you keep an eye on folks when you feel they may be deliberately trying to distract you.

• The Yard Sale Queen suggests that you always look inside any large items that you sell before allowing the customer to leave with them to ensure something else isn’t hidden within.

Your outdoor landscaping can also serve as a sound or visual barrier. Many options are available from furniture placement to the planting of tall shrubs along a home’s border.

According to Better Homes and Gardens, the Top Trends for Your Home in 2013 Include:

• Fragrance Producing Gardens
• Variation in Color of Flowers & Greenery
• Bulb Gardens
• Vegetable & Fruit Combination Gardens
• Grocery Gardens
• Old Fashioned Looks
• Paver Designs Incorporated in Gardens
• Garden Seating
• Herb Gardens
• Butterfly Gardens
• Hanging Plant Gardens
• Texture Gardens

Whether you are in a new home and just beginning your gardening plans or are in the home you’ve had for years, many of these gardening ideas may appeal to you.  As you consider your home and the landscape style that will surround it, consulting with a professional landscaper may give you additional perspective and save you from a expensive mistake.  Please call me for recommendations, should you need a referral.

The 30 year fixed decreased to an average 3.41% with a 0.7 point (last year’s same date comparison was at 3.90%). The 15 year fixed rate mortgage dropped, as well, down to 2.64% with a 0.7 point (last year the 15 year FRM was at 3.13%).

Adjustable rate mortgages fluctuated as well, with the 5-year Treasury-indexed hybrid adjustable averaging at 2.60% (0.5 point), down from an average 2.62% from the previous week. The 1-year Treasury-indexed ARM increased a tenth of a percentage to 2.63% (0.4 point).

Frank Nothaft, vice president and chief economist of Freddie Mac, explained the changes and low interest rates, saying, “Mortgage rates nudged lower this week as consumer spending showed signs of weakness. Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains.”

Low interest rates make it the prime time to lock in a mortgage rate and find your home. If you have been thinking about buying or selling your home, give me a call so we can assess your needs and qualifications, to get you in your home as soon as possible.

As home prices continue to recover and interest rates remain at near-record lows, some houses are receiving multiple offers and to win the bid, buyers need to stand out from the crowd. According to the National Association of Realtors, houses sold in 71 days in January, down from 99 days a year ago.

Since markets are moving fast, experts recommend sellers have their loan pre-approved and down payment ready before starting their search. “The market is changing,” says Cara Ameer, broker associate and Realtor at Coldwell Banker Vanguard Realty based in Ponte Vedra Beach, Fla. “Inventory is low and demand is high—a buyer needs to know exactly what their parameters are.”

Multiple bids are becoming the norm, so be ready to compete and do your homework to seal the deal. The longer the negotiations, the more chance you could lose out to someone else who made a better offer, says Ameer. Be reasonable without being difficult because until an offer is signed, sealed and delivered, other buyers can bid on the property.

While you have to compete in the current market, maintain your budget. “You don’t want to end up paying more for the house than it’s worth,” says Daren Blomquist, vice president at RealtyTrac.

Experts warn against cutting corners like skipping the inspection or engaging in a bidding war. You don’t want to unduly stretch yourself just to get into a property,” says Blomquist.

To help you become a homeowner in this competitive market, experts recommend the following tips for being the most attractive:

Plan Ahead

“You have to plan four months before you’re going to buy,” says Michael Corbett, Trulia’s real estate expert. Check your credit for accuracy and avoiding making any big purchases or taking on any big debt during this time.

“[Debt] brings down your credit score and increases your debt-to-income [ratio] which are two critical things banks look at when qualifying and preapproving you for a loan,” says Corbett.

If your debt-to-income ratio is too high, experts recommend paying down as much debt as you can to lower this ratio.

Set Your Home Price

“Don’t look at a $300,000 home if all you can afford is $250,000,” says Ameer. Less supply on the market increases the likelihood for multiple offers, and you won’t be able to compete. “If properties are selling at 95% of asking price, don’t think you’ll get a deal at 85% of asking price,” she says.

If you do spot a great deal on a house, don’t wait days to make an offer, warns Corbett. Since time isn’t on your side, learn how to spot a great deal by researching an area’s home prices.

“Do a little due diligence and go to open houses—do your homework,” says Corbett. Being educated will help you negotiate and could prevent you from paying more for a house than it’s actually worth because you’re emotionally involved.

Know that Cash is King

The more cash you have, the more appealing you are as a buyer. Putting 20% or more down makes you look more financially stable and gives sellers comfort that you’ll qualify for a mortgage, says Corbett.

Cash can cover a multitude of problems when you make an offer, whether it’s difficulty with the mortgage process or a lower-than-expected appraisal. “A buyer can contribute more cash to cover the different between the appraisal and offer price,” says Blomquist.

If your appraisal is low, don’t expect the appraiser to come up in value, says Ameer. “Appraisers are under scrutiny with the banks and they have to justify everything they do.” They’re required to follow Uniform Standards of Professional Appraisal Practice (USPAP) guidelines, as well as lender guidelines.

Appraisers use surrounding properties for comps, says Ameer, and if there are only foreclosures, that’s a bad hand to be dealt. You can always review the appraisal for discrepancies and suggest different comps but don’t expect the value to change.

Get Preapproved before Your Search

Getting prequalified for a mortgage gives a ballpark for what you can afford to buy and will streamline your search process.

If you’re financing your house with a mortgage, have a pre-approval letter with you and if you’re paying cash, have proof of funds that shows you’re good for it.

Getting preapproved will also help you to compete with an all cash buyer, says Walter Molony, spokesperson for the National Association of Realtors.

When you know what you can afford and are preapproved, you won’t be shopping outside of your price range, says Corbett. “It makes you a much stronger buyer when you can turn in that preapproval letter with your offer.”

Limit Your Contingencies

Experts suggest having as few contingencies as possible to be an alluring buyer. “Don’t overcomplicate your offer to the seller,” says Ameer. Certain contingencies based on your ability to get a mortgage, the appraisal and home inspection are standard, but piling on more could make the seller less inclined to work with your offer.

Experts advise making an offer based on a satisfactory home inspection. “It gives you the opportunity to walk away if you find in an inspection that there are too many problems with the house,” says Corbett.

Making your offer contingent on you selling your house first will make you a less appealing buyer. If you need to sell your house before buying a new one, then sell your home first and rent or move in with family or friends while you look for your new home, says Blomquist. “As a seller, you’ll sell that home quickly. Then as a buyer, you’re much more appealing than a buyer contingent on a sale.”

Add a Personal Touch

Corbett suggests sending a letter to explain why you want to buy that house. “You become a person who really loves and appreciates the home instead of just a number,” says Corbett. Sending a letter is just one extra little thing that will help level the playing field.

Be Flexible with Closing Dates

“Let the seller know that you would be flexible on the closing timeline,” says Corbett. Find out when the seller would ideally like to close on the house and see if you can match it.

Be the most attractive home buyer for any given property and  you will be a happy home buyer soon.
by Andrea Murad

So, how do you know how much you can spend? By visiting a lender and getting pre-approved for a mortgage. Sure, it’s not as exciting as actually looking at houses, but it’s the first step in a process that, if not followed, presents plenty of potential pitfalls that may make it impossible for you to purchase a home.

Before you put pen to paper, though, signing away a big chunk of your salary for the next 30 years, do yourself a favor and prepare.

Check Your Credit

Did you know that up to 79 percent of Americans’ credit reports contain errors? Twenty-five percent of credit reports contain errors that may result in the denial of credit, according to the U.S. Federal Reserve. That’s why it is so important that you check yours before setting foot into a lender’s office.

Everyone is entitled to a free copy of his or her credit report once a year. Get yours at AnnualCreditReport.com, the only source authorized by the Federal Trade Commission to provide the free credit reports.

Fix any issues on your report before applying for a mortgage.

Tell the Truth

Not too long ago lenders were busily providing what have come to be known as “liar loans.” These were mortgage loans to people who couldn’t afford them and were obtained by means of a “no document” process, meaning the applicant didn’t have to prove his or her income or verify assets.

Those days are over, and obtaining credit is nowhere near as easy as it once was. Although you may be tempted to stretch the truth on your application to ensure you get the loan, don’t give in to the temptation. The lender may dig up the truth, and you will be denied the loan.

Turn Down the Job Offer

One of the first things the lender will look at is your employment history. They want to see a minimum of two years with your employer or in your current field. While switching employers during the loan application process may not derail the loan, it will most likely delay the process while the new employment and salary are verified.

Don’t Make Major Purchases

House hunting is exciting and shopping for the new house is probably top-of-mind. Don’t do it.

The lender may run what is known as a “soft pull” of your credit just prior to closing escrow. If, for some reason, the closing is delayed beyond 30 days, you can almost count on the lender pulling your credit again.

If new debt is high enough to change your debt-to-income ratio, you may no longer qualify for the mortgage. So keep the credit cards safely tucked away in your wallet until after escrow closes.

The loan application process isn’t nearly as glamorous and exciting as touring homes and shopping to outfit the new home, but it’s the most important step in the process. Don’t make any major financial or life changes between applying for the loan and closing escrow, and you should have no problems. Avoid these common mortgage mistakes and you will increase your likelihood of a successful home purchase.