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News on the HouseApril, 2013 - Monthly Newsletter

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As housing market warms, keep these buying tips in mind

Ready to buy your first home, or move up to a larger home for your expanding family?

Home sales seem to be finally warming up after a five-year chill, as demand gradually builds among first-time homebuyers and existing homeowners seeking more room. Historically low mortgage rates, rising rents and relatively positive economic indicators are enhancing consumer confidence and driving the trend, according to the National Association of Realtors (NAR).

As demand grows, home prices for a median existing home are expected to rise as much as 5 percent nationwide in 2013, according to the NAR. This should encourage existing homeowners who’ve been patiently sitting on the sidelines to consider putting their homes on the market.

Even though the outlook is looking brighter, Daniel Watkins, an attorney who specializes in real estate law at the Watkins Firm, APC in San Diego, says the hurdles to buying a home in today’s market are significantly higher than they were a few years ago.

“The big hurdle is financing. Expectations among lenders and sellers are a lot higher today,” Watkins says. “If you’re serious about buying a home, you need to have a sizeable down payment, a good credit score, low debt and a solid track record of employment to qualify for a loan.”

Lenders are paying close attention to buyers’ ability to repay a loan, according to FindLaw.com, the nation’s leading legal information website. The generally accepted principle is that no more than 30 percent of a household’s take-home income should go toward the principal, interest, taxes and insurance.

Here are some tips from FindLaw.com about buying a home within the next six to nine months:

Start planning now. Even if you’re a year or more away from buying a home, start preparing now. Build up your cash for a down payment plus other expenses that come with owning a home. Check your credit report for accuracy. Pay all your bills

on time and zero out all credit card debt. And don’t take on new debt, like a large car payment.

Get a pre-approval letter. Home sellers want to know that you can get a loan to buy their home. It’s OK to window shop, but don’t make any offers unless you are certain you can obtain financing. After shopping around for a financial institution, get pre-approved for a home mortgage. Showing a seller a pre-approval letter will increase your chances of your offer being accepted. And don’t be surprised if the seller or his real estate agent contacts your loan officer to verify that you’ve been pre-approved.

Build a strong buying position. As the home market warms up, bidding wars will become more common. However, the highest bid doesn’t always win in today’s housing market. Instead, home

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sellers want to know the deal will go through with smooth sailing. So, today, the highest value is being placed on non-contingent offers (not contingent on the sale of your home), pre-approved financing, higher-than-normal earnest money deposit and personalized bids (share with the seller why the home would be a perfect match for you and your family).

Get a lawyer. In some states, the law requires that a real estate attorney be part of the process of making an offer and reviewing loan documents as part of the closing, according to FindLaw.com. Where a real estate attorney isn’t required, buyers and sellers should consider seeking legal assistance for relatively more complicated real estate transactions, such as purchasing a property directly from the homeowner, the purchase of a rental property, a short sale or the purchase of a foreclosed property.

Learn about the neighborhood. When you buy a home, you’re also buying into a community. Start your home search by first targeting a neighborhood where you want to live. Avoid neighborhoods where homes are not being kept up, or yards are full of old cars and junk. Check out the schools, too. Great schools attract families, and keep up home values. Avoid busy streets, homes under flight patterns or near railroad tracks. And contact the local police department for crime statistics and the location of nearby sex offenders.

Keep your emotions in check. If you’ve found a home you like, don’t fall in love with it yet. Make sure your offer is contingent upon a satisfactory home inspection conducted by an inspector that you hire (not the seller).

Save some extra money. Whether you’re buying your first home or your third, moving and getting a household established can cost more than you anticipated. Make sure you save enough extra money to redecorate your new home to fit your lifestyle, and to pay for unexpected repairs.

To get more information about buying a home, visit www.findlaw.com.

Article provided by Brandpoint - formerly ARAcontent. Reprinted with permission.

Seller’s market success tips for buyers and sellers

Key indicators point to conditions for a seller’s real estate market this spring. With fewer homes on the market, low interest rates, rising home prices and lower unemployment rates, there will be increased competition for buyers and faster sales for homeowners looking to move. With some planning and understanding of the market, it’s possible for both groups to make the most of this evolving marketplace.

“Dramatic increases in both sales and prices are bringing homebuyers and sellers back to the market, indicating the worst of the housing crisis is behind us,” says Margaret Kelly, CEO of RE/MAX, LLC. “The market ended 2012 on a positive note and there’s every reason to believe 2013 will be even stronger.”

Whether you’re planning to sell your house or are in the market to buy one, here are some tips for succeeding in the emerging seller’s market:

If you’re selling“Some rules of smart selling never change, no matter what the market is like,” Kelly says. “Even with improved home prices and fewer homes on the market, sellers must still work to make their houses appealing to buyers who want to be able to envision themselves in the home.”

Curb appeal is vital. Keep landscaping neat, well-groomed and appealing with bright flowers, cut grass and well-trimmed shrubs. Sidewalks and paths should be clean and free of debris, and entryways well-lit. To really spruce up your entryway, consider a fresh coat of paint on the front door.

Inside, repaint. Painting is a cost-effective way to freshen decor and gives you the opportunity to create a neutral environment that buyers will be able to picture themselves in. Declutter throughout the house, including closets, and remove personal photographs.

Choose a real estate agent who knows your area. A well-priced home sells quickly and helps ensure you get the most for your house. A knowledgeable agent can help you set the right price - one that attracts buyers and maximizes your return. Agents also handle the legwork involved in selling a home, from effectively marketing your house to negotiating with the buyer’s agent and facilitating the closing.

Finally, be patient. “We’re again seeing cases of bidding wars in some markets,” Kelly says. “With fewer homes on the market in many areas of the country, it’s possible you could receive multiple offers. It may pay to take a “wait-and-see” attitude toward the



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first offer. Patience may garner you multiple offers and a better chance of getting your asking price.”

If you’re buyingGreater competition in a seller’s market requires buyers to be able to move quickly and decisively. Before you begin home shopping, make a list of must-haves and want-to-haves. This list will help your agent narrow down the homes you’ll be looking at.

Also, get pre-approved for a mortgage. “There’s no worse feeling than watching your dream home slip through your fingers because your financing fell through, or because another bidder had a guarantee of financing and you did not,” Kelly says.

While no one wants to pay more than they absolutely must, remember that in a seller’s market homeowners may receive multiple offers. If your initial bid is too low, you may find yourself quickly out of the running.

Also, be flexible on closing dates - often, sellers like sooner rather than later. And avoid placing too many contingencies on an offer. Working with a buyer’s agent can help you tailor an offer that will appeal to the seller as cost-effectively as possible. An agent will also be able to help you secure information on schools, entertainment, amenities and safety in communities you’re considering.

For more advice on buying and selling homes, finding an agent, and listings of homes in your area, visit www.remax.com.


Spring fling must-haves

Spring provides the perfect opportunity to host a party and show off all of the hard work you’ve put into your lawn and garden. Before your first guest arrives, make sure you have made all the preparations for your blooms to blossom, your garden to grow and your outdoor space to be pest free.

There’s nothing like uninvited guests or a dull landscape to ruin a gathering of friends or family. Keep in mind these housekeeping tips for spring entertaining:

* Create a beautiful floral centerpiece of freshly-picked flowers from your landscape. Include a range of colors, textures and smells. A landscape maintenance plan that provides flowering plants with a proper blend of nutrients will ward off destructive pests and guarantee a centerpiece guests will enjoy. In fact, one of the best defenses from pests is a strong, actively growing and well-maintained plant.

* Protect your showcase garden.Given last year’s record-breaking heat, and the corresponding uptick in insect activity, your garden may be faced with another pestinvasion this season. Protect your growing garden from feeding and foraging pests by applying an insecticide, such as GardenTech Sevin products, which breaks down in the environment. Depending on the produce, this insecticide can be applied throughout the growing season, right up until the day before harvest.

* Remove unsightly weeds. Warmer weather also will undoubtedly introduce the presence of ugly growth on decks and walkways, and in landscapes. A specialized herbicide is just the solution to eliminate troublesome moss and other weeds - letting your home’s exterior shine when it matters most.

* Prevent pesky party-crashers. To prevent pest infestations while guests enjoy themselves, apply insect bait around the perimeter of planting beds and entertainment areas. The bait serves as a



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protective barrier, so insects don’t come inside those areas to cause mischief. Foraging insects take the granules back to their nests and share - eliminating colonies at their source.

* Green-up landscapes. Take your pale green or yellowing plants - a common symptom of iron deficiency - from plain to vibrant with a mineral supplement, such as Ironite. The “greening” supplement ensures plants receive the essential secondary and micro-nutrients they need to develop strong roots and lush, green growth. Feeding is made easy with liquid and granule formulations that have been customized for various plant types and application needs.

* Leave a lasting-impression. Impress and indulge guests by incorporating garden-fresh ingredients (herbs, veggies and fruits) in your meal. You can even take it a step further by creating gift basket party favors stocked full of your own homegrown goodies - an idea that is sure to keep guests coming back.

Cue up the invites, apply these tips and throw in a few of your own. You’re now ready for a little outdoor entertaining.

For more information and additional helpful hints, check out www.central.com.


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