Should I Accept This Offer?

Being a seller in today's market can present its share of challenges. How do you know when to accept an offer and when to hold out for something better?

Is the current offer a low ball offer or are you simply hesitating over attachment to the home? This is the first and most crucial question to ask yourself.

You see the memories and the upgrades you've made to the home. You know down the cent how much you've invested in the property. In today's market, however, home values have fluctuated and dipped. It's time to detach emotionally from your home and view it in a financial light. Is this a low ball offer or is a reasonable offer for your current market?

How long has your home been on the market? If your home is new to the market, especially if you've had multiple requests for showings, then accepting the first offer can be a gamble. You might not receive another offer, but on the other hand if this offer is too low you might be dealing with a vulture.

Are the terms agreeable? Some offers are right on target with asking prices, but are demanding when it comes to closing cost concessions and even move-out dates. If you don't have a new home lined up and the buyer is wanting you out in 2 weeks you'll find yourself in quite the scramble! Consider all the factors included in the sale.

Will you lose money on the sale? Many homeowners have found that their homes have depreciated in value over the last six years. Can you afford to sell at the offered price? Think about if this will cause you to be too far in debt on your mortgage to buy your next home.

How fast are you needing to sell? -- Are you moving to another state or city? Many of today's sellers are needing to move and that means buying a home. Even if you're not moving, you may have already found, or purchased, your next home and don't need two mortgages hanging over your head. In this instance it would be best to run the numbers, negotiate competitively, and accept a fair (even if lower than expected) offer.

Are you are risk of going into foreclosure? If you are selling because you can no longer handle your payments and don't want to ruin your credit for the next seven years then it would be wise to accept even low offers. Buyers are few and far between in today's market.

This is where the expertise of your agent comes in. They can tell what market activity is like for your area. How long are homes staying on the market before selling? Do they think you'll receive another interested party? If they think the offer is too low and that you'll get more money by waiting a short period for another buyer, then you should wait it out.

Buyers today are just like anyone looking for a deal. They know that home prices are on the decline and that inventory far outweighs demand. They come in shooting from the hip, wounding asking prices with their offers. Don't be afraid to shoot back with competitive counter offers. If someone is truly interested and not just low-balling they'll play the game.

As the seller it is up to you to decide on what deals to accept. If your home is on the market or you are consider listing it, then it would serve you well to figure up your bottom line now. What selling price can you afford? Be aware of what you will and won't sell your home for. Then when offers come in you'll know just how you can respond.


Written by Carla Hill
February 29, 2012

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Real Estate Outlook: Bernanke on Housing

The recovery of the housing market and economy has been slow and arduous. Legislators and leading economists alike know that housing is the key to helping jobs and Americans get back on their feet.

Federal Reserve Chairman Ben Bernanke recently spoke at the 2012 National Association of Homebuilders International Builders' Show and made some strong statements about the housing market and what has and has not happened in recent years.

"The economic recovery began more than two years ago, but it doesn't feel like much of a recovery for many Americans--certainly for those of you who depend on the housing sector for your living, as well as for the millions of others who have seen their home values plummet or lost their homes through foreclosure," he said.

Historically during recoveries we've seen that "resurgent" housing is what fuels employment and rising incomes.

Today's recovery efforts however are coming up again a number of actors that constrain demand. Bernanke added, "Household formation has been down, particularly among young adults.

High unemployment and uncertain job prospects may have reduced the willingness of some households to commit to homeownership. Availability of mortgage credit is an important constraint."

The housing market is on the move, however, albeit slowly. In the latest existing-home sales survey by the National Association of Realtors (NAR), sales showed promising movement for the month of January. This is the third gain in the past four months. Existing-home sales rose 4.3 percent for the month.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. "The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents."

The Western region of the U.S. experienced the largest jump in sales, rising 8.8 percent for the month. This brought it's annual pace within 3.1 percent of the spike seen in January of last year.

The second largest rise was seen in the South, which rose 3.5 percent. The Northeast and Midwest experienced gains as well, rising 3.4 and 1.0 percent respectively.

"The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers," Yun said. "Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time."

Additionally, nationwide production of new single-family homes and apartments also rose 1.5 percent in January. According to the U.S. Commerce Department this was the second-best pace seen since October 2008.

"Today's solid housing starts report indicates that builders are putting more of their crews back to work, and adds to the growing field of evidence that the overall housing market is gradually but consistently moving in the right direction," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB)

To continue to see strides in the housing market, though, Bernanke stands by his advice that we need to continue to develop and implement policies to aid the housing sector. "No single solution will be sufficient. But sustained efforts to address the many interlocking factors holding back the housing market will pay dividends in the long run."


Written by Carla Hill
February 27, 2012

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Choosing Your Neighborhood

Choosing a home is about more than just selecting a house. Every neighborhood offers its own unique set of people, activities, and amenities. Which neighborhood is the right fit?

Take a moment to review the following factors that can influence your decision on where to live.

The first consideration of many home buyers is the education of their children. From private, charter, and magnet to public school, there are a wide range of options. Public schools dictate enrollment according to school district boundaries. Keep this in mind when looking at new homes. You may be surprised to find where lines are drawn. Are you trying to move into a highly rated district or are you wanting to avoid uprooting your children? You may wish to visit area schools to get a feel for which place is best for your family.

Next, analyze the data on the local economy. Is there a high rate of long-term employment? It's always good news when new industries are moving into town rather than out of town. Home values should rise alongside demand. Dig a little deeper and find out what industries are holding steady, how long homes are sitting on the market, as well as your local unemployment rate.

Homeownership is at least partially about making an investment. Over time you hope to build equity in your home, allowing you to have not only a large asset, but also the ability to "move up". Be aware of foreclosed homes in neighborhoods, as they tend to pull values down. And understand that some neighborhoods offer higher rates of appreciation than others.

Are home values on the rise? In today's difficult market, many areas are experiencing depreciation. This is not the normal trend, but rather is the consequence of our recent recession. In general, homes increase in value by about 5 percent per year. Ask your local real estate agent for the stats on past appreciation rates.

An additional factor affecting home values is the condition of the prospective neighborhood. Be sure to drive up and down adjacent streets. Are homes and yards in good repair? You want neighborhoods that reflect care and attention.

Additionally, research the local crime rates. Some neighborhoods experience higher levels of crime, both violent and petty. Safety of your person and property are valid considerations when buying a home.

And finally, on a lighter note, entertainment options are another valid consideration for home buyers. From restaurants and parks to neighborhoods with high ratings of walkability, the choices abound. What works best for you? Are there certain stores, clubs, gyms, or churches that you frequent? Choosing a neighborhood means considering all the options. What do you need and want out of your next home?

Choose wisely and you'll end up with a home that fits you now and for years to come.


Written by Carla Hill
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Average 30-Year Fixed-rate Mortgage Unchanged From All-time Record Low for 3rd Consecutive Week

In Freddie Mac's results of its Primary Mortgage Market Survey®, the average fixed mortgage rates remained unchanged amid mixed consumer sentiment data. The average 30-year fixed-rate mortgage has been at its all-time record-breaking low of 3.87 percent since the first week of February, below 4.00 percent for the past 11 weeks, and below 5.00 percent for the past 52 weeks dating back to the February 17, 2011 release of the PMMS.

30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.8 point for the week ending February 16, 2012, matching last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 5.00 percent.

15-year FRM this week averaged 3.16 percent with an average 0.8 point, matching last week when it also averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.27 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.8 point, down from last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 3.87 percent.

1-year Treasury-indexed ARM averaged 2.84 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 3.39 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Fixed mortgage rates were unchanged this week amid mixed confidence measures. Small business confidence ticked up slightly in January, representing a fourth consecutive month gain, according to the National Federation of Independent Business index. However, the Reuters/University of Michigan index of consumer sentiment fell in February by more than the market consensus forecast breaking a five month trend. In the meantime, home builder confidence rose in February to the highest reading since May 2007, based on the NAHB/Wells Fargo Housing Market Index."


February 17, 2012, Published by Realty Times

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Call Alvin's Team Today! 877-651-7810
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Be a Staging Star

If you're an HGTV junkie then chances are you've tuned in for some of the network's popular home improvement shows, nearly all of which have stressed the importance of staging your home for sale.

Are you tired of waiting for a TV crew to come help you with your own home? You don't have to find yourself on one of these hit shows to be a staging star. Simply follow a few of our expert tips!

1. Remove the Clutter. Instead of a potential buyer's eyes moving easily from one side of a room to another, leaving their mind at peace to imagine their own life in your space, clutter disrupts the flow and catches the buyer's gaze. They will focus on your mess or dust instead of your lovely fireplace or hardwood floors.

2. Organize. Once you have removed the clutter and knick-knacks (staging is more about minimal accents) it's time to organize what has been left behind. Built-in storage systems are an excellent way to get offices and closets in order. Need a way to take extra clothes or seasonal items to the garage? Invest in a few inexpensive plastic tubs. For future convenience, be sure to label all boxes.

3. Clean. You want your home to appear move-in ready at showings. That doesn't just mean that your title and contacts are in order. It means that your home needs to look and smell clean. Mop, vacuum, and wash down every surface. Leave no dust bunny unturned! This could be the time to hire a professional cleaning service.

4. Refresh Paint. Walls turn dingy over time even in the cleanest of homes. Consider putting on new color to freshen and update your rooms.

5. Room Appropriate. When your home is listed on the MLS as a 3 bedroom home it is important that this is what buyers see. They don't want to see 2 bedrooms and craft room, exercise room, or home office. During the staging process keep rooms what they were designed to be.

6. Create Ambiance. Ambiance is about the way a home makes you feel. In some homes you'll want a cool, modern atmosphere created by simple decor and perfect lighting. In most homes, though, buyers seek a warm and homey atmosphere. Accomplish this through the use of vanilla candles, lit fireplaces, area rugs, baked cookies, and staged living areas (set dining tables, games in the living room, and outdoor patios).

7. Staging Outdoors. Don't forget one of your most important spaces -- your outdoor “rooms.” More and more buyers are extending their living spaces into the great outdoors. Stage patios with simple furniture, outdoor dining sets, comfortable pillows, and chiminea or plant life.

8. Leave No Closet Unturned. Buyers will open your closet doors, so don't think you can stuff your clutter away! Stage these areas by color coding clothes and storing away small items in totes or boxes. If the budget allows consider investing in built-in storage units.

9. First Impressions. It is of paramount importance that you stage the front of your home. You never know what prospective buyer might drive by and see your For Sale sign. Front doors should have fresh coats of paint. Yards should be tidy and trimmed. And a new welcome mat and flowers or wreath are a great finishing touch.

10. New Eyes. One of the most important tips for staging is seeing your home through fresh eyes. We become accustomed to the way it looks and are apathetic to what changes need made. See your home through the eyes of a new buyer.

    Staging is one of the best ways to let your buyers see the true potential of your home. By creating an ambiance that is clean and stylish you can inspire buyers wanting to live that lifestyle to buy your home!
    
    
    Written by Carla Hill
    February 16, 2012, Published by Realty Times
    

    Thinking about Buying or Selling?
    Call Alvin's Team Today! 877-651-7810
    Or visit our website: www.LivingLakeTahoe.com

    
    

Make Your Home Appealing to Buyers

As you start to gather up your belongings and pack them away for your move, many sellers question which items they should leave out for buyer appeal.

Often the wrong items are left on display; things like family photos, personal keepsakes, and treasured belongings. All of these items should be safely packed away which very often creates open space (a plus for buyers) on shelves, refrigerator doors, and desktops.

Buyers often make a decision within just seconds of seeing your home about whether or not they want to buy it. So picture your home through the eyes of your potential buyers. What do you see in about 10 seconds?

When you walk up do you see children’s toys scattered across the front lawn. Do you see overgrown shrubs and weeds? Do you see chipped paint on the front door, a screen that’s torn? Do you spot oil spills on the driveway?

Even answering yes to just one or two of those questions can be damaging and that’s before your potential buyer has entered your home. Sometimes, those seconds are all the buyers need to decide to simply do a "drive by" and not even stop to go inside.

Of course, the goal is to get the buyers inside. To get them to spend time, feel like your home could be their home. But even though that goal is so widespread and common among sellers, somehow the decisions some sellers make are almost completely polar to the goals.

Let’s look at five tips that can make your home appealing to buyers.

Check all the screens and molding around your windows and doors. This isn’t at the top of a seller’s list but it ought to be. Even slightly torn screens send a careless message to buyers. It gives an unconscious uneasiness that there’s been, at the very least, lack of care for this home.

Something simple like fixing a screen is often overlooked by a seller because it is so simple, yet, just seconds of seeing the ripped screen can cause a negative impact for buyers.

Add artwork to long hall ways. You don’t have to buy artwork that costs thousands of dollars but, if your home has long hall ways, it’s nice to break up the monotony with some tasteful artwork. Use contrasting shades and hues to coordinate with the flooring. When you’re shopping for the artwork or borrowing it from a friend or your real estate agent or homestager, bring swatches of the carpet or flooring and wall paint to match the artwork colors.

Make the kitchen a focal point. Whether they cook or not, the kitchen is of primary interest to many buyers. Winning over buyers with an appealing kitchen can often convince them that they must have the home. Make sure your appliances are clean, sparkling, and working. Return on investment in the kitchen is usually high and worth every penny, and more, you put into it.

Put the "ah" in the bedroom. The bedroom needs to look like a bedroom. Sounds funny, but many people use their bedroom for other things such as an office or storage. Boxes or newspapers are scattered or stacked in a corner. There’s no "ah" or sense of relaxation with that kind of room. So even if that’s how you’ve been living, understand that’s not how you should show a home.

If there isn’t much space, clear the clutter out. Remove excess furniture. It doesn’t matter if you use it. You can walk to another room to get what you need if it means you sell the home faster because it now looks more inviting and spacious.

Making your home more appealing is about seeing your home through the eyes of your potential buyers. When it comes time to go over the offers, you’ll be glad you did.


Written by Phoebe Chongchua
February 17, 2012, Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Average 30-Year Fixed-Rate Mortgage Holds at All-Time Record Low

In Freddie Mac's results of its Primary Mortgage Market Survey®, most average mortgage rates inching higher on January's positive employment data. The 30-year fixed remained unchanged and at its all-time record low. One year ago at this time, the 30-year fixed averaged 5.05 percent.

30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.8 point for the week ending February 9, 2012, matching last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 5.05 percent.

15-year FRM this week averaged 3.16 percent with an average 0.7 point, up from last week when it averaged 3.14 percent. A year ago at this time, the 15-year FRM averaged 4.29 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.7 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 3.92 percent.

1-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.6 point, up from last week when it averaged 2.76 percent. At this time last year, the 1-year ARM averaged 3.35 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac: "A strong January employment report added upward pressure to most mortgage rates this week. The economy gained 243,000 jobs last month, the largest monthly gain since April 2011, and the unemployment rate fell to 8.3 percent, which was the lowest since February 2009. Although historical revisions also added 266,000 even more workers, they caused the labor participation rate to fall to 63.7 percent, representing the smallest share since May 1983, which offset some of the rise in mortgage rates."


February 10, 2012, Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
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