Exclusive Real Estate News

Freddie Mac and Fannie Mae Profits – What a Difference a Few Years Make!

daniel@realtypin.com Daniel Torelli — Tue, 21 May 2013 06:40:07 GMT

The government-controlled mortgage giant Freddie Mac and its sibling organization Fannie Mae are making huge profits – just a few short years after having to borrow money from the federal government to stay afloat.

During the financial crisis, both companies suffered huge losses due to risky mortgages, which led a government bailout for the two organizations that has cost taxpayers $170 billion to date. But now that the housing industry is making a comeback, so are Freddie Mac's profit margins. During the first quarter of 2013, the company earned $4.6 billion. Compare that to the $577 million in net income from the first quarter of 2012, and you can see how much of a financial turnaround they've experienced in just one calendar year!

This most recent quarter is the sixth consecutive quarter that the organization has turned a profit, but thanks to a federal policy adopted last summer, all of that money must go to the government to pay back the bailout. In fact, just last week, leaders at Freddie Mac reported that they paid a dividend of $7 billion to the U.S. Treasury from their first-quarter earnings and requested no additional federal aid.

So far, Freddie Mac and Fannie Mae have paid back a combined $62.2 billion of the $170 billion in bailout funds. The fact that neither one has requested any additional federal aid is also significant, considering that Freddie Mac received $13 billion in bailouts in 2010, another $7.6 billion in 2011, and an additional $19 million during the first quarter of 2012.

What’s behind the change?

Both Freddie Mac and Fannie Mae are benefiting from a housing market that has seen a recent surge of prospective buyers. Record-low mortgage rates and steady job market gains have brought more buyers into the market, but inventory remains low in most metros. As a result, home prices have risen. However, the increased demand has also caused the number of home sales and the number of new home constructions to increase. All of these are signs of a recovering housing market, and for Freddie Mac, that means fewer delinquent loans on their books.

Freddie Mac isn't a lender, but instead buys mortgages from lenders, packages them in bonds, guarantees them against default, and then sells them to investors. By doing so, they make loans more accessible, and along with Fannie Mae, the two companies own or guarantee about half of the mortgages in the United States. In fact, right now, it's estimated that Freddie and Fannie control (either by owning or guaranteeing) nearly 31 million home loans worth $5 trillion!

Back in 2011, the Obama Administration proposed a plan that would slowly dissolve Freddie Mac and Fannie Mae in an effort to reduce the government's role in the mortgage industry, but Congress has yet to determine if they're willing to support that initiative or not. In the meantime, it seems that both will remain big-time players in the mortgage industry, and with all signs pointing towards a housing recovery, they should continue to make a profit.

Of course, until the $170 billion in bailout money is paid off, neither Freddie Mac or Fannie Mae will get to keep a single penny of their profits, but at least they're one step closer to digging out of the financial ruin they experienced a few years ago!

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The Top 4 Kids Room Renovations

daniel@realtypin.com Daniel Torelli — Tue, 21 May 2013 06:26:20 GMT

Kids’ rooms tend to get renovated more frequently than any other room in your home. Although your children’s room renovations typically aren’t as involved as, say, a kitchen or a bathroom, they do happen a lot because kids grow up so fast and have ever-changing wants, needs, and interests.

For example, the princess canopy your daughter loved when she was five, may seem childish to her when she’s eight. Or, your son’s race car bed, but be just the right size for him at seven, but he may outgrow it by the time he’s nine.

So, how do you keep your kids happy?

Check out the ideas in our top four kids room renovations:

1. Paints and murals

When you consider how quickly kids’ tastes change, paint is the top kid’s room renovation. Luckily, kids’ bedrooms are usually the most fun to decorate because you can be creative and fill the space with crazy paint colors or big murals. Painting the room is a fun project that will give the room a whole different feel. And while you used to have to carefully trace and paint murals for your kid’s room, now there are easy to apply and remove stick-on murals that will save you a ton of hassle and time.

2. Built-in storage

A great kid’s room has stuff that looks great, but also provides space to store all of their toys, clothes, and other “stuff”! Built-in storage offers the perfect solution. And, best of all, it gives your kids an easy way to keep their rooms clean. Another great part about built in storage is no matter how old your child gets, they will still have use for built-in storage. After all, needing storage space is something you never grow out of!

3. Custom beds

Looking for a way to provide your kids with added fun during the day, and a comfortable and peaceful place at night? Invest in a custom bed! Custom beds are an especially-great addition if you have two or more of your children sharing a room, because they allow each child to show off some individuality. However, they are also a good addition if there is only one child calling the room home. Custom beds give your kids a cozy space that can be their bed, their cave, their fort, or anything else their imagination can come up with!

Plus, there’s some fun in there for you, too. If you’re handy with some wood and a set of tools, custom beds give you the opportunity to try out your own inspired work! With a custom bed, you aren’t limited to the typical bunk bed or day bed. Instead, you can design the bed in any way that fits in the space.

4. Reading nooks

Some kids naturally love to read, while others take a little bit of convincing. But by providing a cool space for your kids to read, they will want to go there to escape and pick up their favorite book! Reading nooks can be a built in bench under a window for natural lighting during the day, or you can do a bigger project by building a loft where your child can climb up and escape with their book. Either way, it’s a renovation that can lead to major literary adventures for your kids!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Rising Home Prices Should Lead to Higher Mortgage Rates

daniel@realtypin.com Daniel Torelli — Mon, 20 May 2013 18:13:25 GMT

As the hot summer months approach, more and more people will begin to check the weather forecast to see what the temperature is going to be. However, prospective homebuyers might want to also see if the mercury is rising in the housing industry, too!

Mortgage rates are like the “temperature” of the housing market. When home sales are down and home prices are low, mortgage rates also tend to drop or remain low. But when things heat up in the housing market, so do mortgage rates!

According to the latest S&P/Case-Shiller Index, existing home sales are up 10% compared to this time last year, new home sales are 19% higher than they were a year ago, and inventory of homes for sale remains very low. Despite the low inventory, there are signs that the housing market is recovering, and now, experts at the Mortgage Bankers Association estimate that interest rate could climb back above 4% by the end of the year.

Even if you’re not a buyer, this is big news!

After all, the relationship between mortgage rates and the economy is a big one. The better people feel about the economy, the more they are going to out and spend. The more people spend, the less of an incentive they need to make a big purchase, so there isn’t as much of a reason to keep interest rates low when the housing market is doing well. In recent months, the economy has shown signs of improvement (thanks to things like increased job security, better pay, and reduced debt), and home prices have risen as desire to own a home once again became a top priority among American consumers.

None of this was the case a year ago, so the federal government had to do something to stimulate the economy. That’s when the Federal Reserve began buying mortgage-backed securities in an effort to keep interest rates low. Interest rates affect mortgages, so the thought process was that by making home loans more affordable, more Americans might be willing to purchase a home. The plan seems to have worked, as an influx of prospective buyers hit the market, hunting for a home they could purchase and call their own.

The economic climate still wasn't great for homeowners, though, as many were underwater on their mortgages, meaning they owed more on their home that it is currently worth. The end result was an ever-growing number of prospective buyers all competing for a limited supply of homes for sale. That lack of inventory has sent home prices through the roof, and with interest rates still near all-time record lows, now is the time to buy!

That's especially true considering that interest rates may soon be on the rise!

According to the latest S&P/Case-Shiller Index, home values are up an average of 7% nationally from a year ago, with some cities that were hit hard by the recession reporting value increases near 20%.

With home prices and sales up, it's clear that there are plenty of prospective buyers out there, so the federal government may no longer need to purchase mortgage-backed securities to keep interest rates low.

Also, lenders are back in control as well. They are no longer hurting for business, but instead, are declining more loan applications than they are approving, so they do not need an incentive to get customers in the door, either. That's why experts anticipate interest rates to rise in the coming months, so any buyer who wants to purchase a home should do so while the market is hot – and before it becomes scorching and the “temperature” rises even more!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What is the Home Renovation Process Really Like?

daniel@realtypin.com Daniel Torelli — Mon, 20 May 2013 17:18:16 GMT

Home improvement shows on TV provide entertainment, but according to actual contractors, these programs don't always give an accurate portrayal on the home renovation process. In fact, builders say the TV projects are finished in a fraction of the actual time, for a fraction of the actual cost!

So, what can you REALLY expect if you're planning on renovating your home?

First off, contractors say don't trust the prices you see on the television shows. Often times, the products are discounted, or the labor is free because the contractors on the show want the exposure of being on television. In real life, you're going to pay full price for the materials and the labor is certainly not going to be free! As a result, you’ve got to come up with a budget before you go shopping for materials, and be sure to buy supplies that fit within the price range you've established.

Secondly, quality contractors aren't just sitting around waiting for your phone call. They are usually currently working on someone else's home when you call, and are typically booked for two to three months, depending on the job. In other words, if you make a decision this weekend that you want to install some new cabinets in your kitchen next week, don't expect the carpenter to be at your front door ready to work on Monday morning. Since you won’t get instant results, you can feel free to take your time finding a quality, well-recommended, licensed contractor.

Speaking of instant results, TV shows are full of them! Because they’re only either a half-hour or full hour in length, much of the work done during the home renovation is edited out – meaning viewers have unrealistic expectations about how quickly a project will be complete.

So, not only will you struggle to find a contractor who can start tomorrow, it's also unlikely that they'll be able to finish your project in a couple of days!

In fact, on the home improvement shows you see on TV, producers use two tricks to make it seem like the project was completed in only a matter of days – they either mislead the viewer, or don't show them how everything was done so quickly.

In the first scenario, they hide any unfinished portions of the renovation from the cameras view during the “big reveal”. Then, they finish the rest of the construction after the television production is complete. In the second scenario, they bring in a very large team of subcontractors (who you never see on the show) to speed up the process. Seeing how your home probably isn't being featured on a television home improvement show, and since you probably don't have the budget to bring in a few extra dozen workers to take care of everything behind the scenes, it's very unlikely your project will be done in a matter of days!

So, how long WILL it take?

It depends on the project. For example, cabinet builders say it can sometimes take them eight weeks to make custom kitchen cabinets, so don't set yourself up for frustration by setting unrealistic time frames and completion dates.

How can you make the process as efficient as possible?

We suggest that you get a price quote and an estimated completion date from several builders before settling on one. If the one you like best says it's going to take eight weeks – and their time frame is pretty consistent with the others you've received – you can likely trust that the contractor knows what they are doing and will complete the project in a timely manner.

One more thing – don’t forget to be prepared for unexpected costs!

In any home renovation, something unexpected always happens, so it's better to have the money set aside and not need it, then to have to scrounge around for cash or delay the project because you couldn't afford the extra costs. Professional builders and general contractors suggest over-budgeting anywhere from 10% to 40% to ensure that you have enough money to cover any additional costs that may arise during the renovation. That’s the “real” side of things!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What is an Invitation-Only Open House?

daniel@realtypin.com Daniel Torelli — Sun, 19 May 2013 21:23:18 GMT

If you are selling your home and you’re part of a Homeowners’ Association, you may have quite a few hurdles to jump through. And if your home is worth a lot, there could be even more to worry about. In fact, homes that are priced in the million dollar range can have very specific rules that you and your realtor need to pay close attention to – especially when it comes to your open house.

After all, your million dollar neighbors might not want to have an influx of people coming through their neighborhood! As a result, many realtors have gotten creative with their promotions. One of the newest trends in realty are invitation-only open houses.

How do they work?

Typically, there is more than one home for sale in a community. Realtors are teaming together to offer an “open house evening” where several people are invited to tour ALL of the homes for sale in the neighborhood. Usually, most of the homes involved are all a part of the same Homeowners’ Association, which provides an added convenience. The entire event can be designed to meet the rules of the Homeowner Association, so the Associations tend to love them! As a result, realtors are jumping on board this trend to offer something a little different.

What can you expect if your realtor suggests one?

Your realtor will work with a few others. They’ll start by finding a group of people that are in the market for homes similar to those offered in your Homeowners’ Association. After researching the home buyers, they’ll pick the people that are best suited for the homes and the neighborhood. After all, since there are limited amount of spaces and limited amounts of opportunities, realtors want to make sure they have the best candidates possible!

After choosing the people they want to invite, the group of realtors will then ensure that the homebuyers are well-qualified for homes in this price range, and are working with credible lenders. (Because realtors spend a lot of time and energy on these open houses, they don’t want to waste the experience on a person or family that won’t be approved for financing!) After ensuring that each potential buyer is well-qualified, and in fact interested in buying (after all, some people just enjoy going to open houses!), they send out invitations for an open house event.

These events take a lot of time and energy to produce. Realtors need to team up with the other sellers in the association, get approval from the Homeowners’ Association, and then find qualified candidates. And that’s all before the event starts! Since there are limited opportunities for these open houses, they go all out to ensure an incredible experience. In fact, many realtors host an event similar to a cocktail hour offering hors d’oeuvres and wine while people tour the different homes.

If you’re lucky enough to be invited to one of these open houses, prepare to enjoy a night of enjoyment as opposed to a stressful day of going across town to a bunch of different homes. The ambiance and the ease in which people are able to tour different homes have made these open houses incredibly popular with buyers!

Since people love them on both sides, realtors are seeing much more success by hosting invitation only open houses. They increase the chances that a potential buyer will find their next dream home and that a seller will get top-dollar!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is a Hybrid Mortgage Right for You?

daniel@realtypin.com Daniel Torelli — Sat, 18 May 2013 07:00:13 GMT

Hybrid mortgages are an interesting alternative, especially when interest rates are high. But even though mortgage rates are hovering near record lows right now, you still need to understand the concept before you sign on the dotted line with your lender.

In a hybrid mortgage, a lender offers a reduced fixed rate for a certain period of time (typically anywhere from three to 10 years). Then, once that period is up, the rate adjusts – usually to a much higher rate. Although a hybrid mortgage is certainly much cheaper in the short run, the rates could shoot up exponentially in the long run. In fact, they may get so high that the mortgage no longer fits into your budget!

However, there are many instances where a hybrid mortgage might be right for you – even now, while rates are low.

For example, if you plan on moving within a few years, then a hybrid mortgage could be even more affordable than a 30-year fixed rate mortgage. You’ve absolutely got to move before your introductory rate expires, though, or your mortgage probably won’t be worth the risk of the price jump.

Another instance where a hybrid mortgage might be right for you is if you foresee a better financial future in the next few years – for example, through an inheritance or a guaranteed pay increase at work. If you know that your finances will be increasing, you will be better prepared to handle an interest rate that increases suddenly. That way, you can take advantage of much lower rates in the beginning!

There are certainly risks with hybrid mortgages, though.

Interest rates aren’t going to stay low forever, and when you’re spending at least $100,000 on a home, every percentage point that your rate jumps could mean spending thousands of extra dollars. For example, an extra three percent may not seem like a huge increase, but it could be enough to make your loan unaffordable. With a hybrid loan, the chances that your rate WON’T make a big jump are incredibly slim, so if you can’t afford a higher interest rate (or if you’re unsure about your financial future), a hybrid mortgage is not a wise choice.

But just how much will your rate jump?

The typical adjustment cap is nearly six percent. That means your rate wouldn’t go any higher than six percent more than you’re currently paying (so, if you’re paying 3% now, your rate couldn’t go higher than 9%) – but it’s easy to see how it could create a huge spike for your monthly payments. Even if you think you can afford that jump now, you always have to consider other factors such as accidents, unemployment, or unforeseen emergencies.

Although many people are opting for hybrid mortgages right now, it’s important to crunch the numbers on a variety of different mortgage opportunities. Although a fixed rate mortgage doesn’t seem as “fun” or as “interesting” as a hybrid mortgage does, most families will save a lot of money over the long run with one.

Bottom line – while interest rates are so low, stick with a fixed rate mortgage. If you can’t afford the home right now with a low fixed rate, you’re better off finding a home that is really in your price range, or spending some extra time saving up for a bigger down payment!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 3 Ways to Avoid Mortgage Scams

daniel@realtypin.com Daniel Torelli — Fri, 17 May 2013 21:55:50 GMT

Thanks to the housing market crash, many people had to walk away from their home and their mortgage, damaging their credit report. Others simply saw their credit scores plummet when the economy plummeted. Since banks have gotten much stricter with their credit and income requirements, there are lots of people out there who want to buy a new home -- but banks are considering them to be “high-risk” and won’t loan them the money.

That’s why so many mortgage scams have popped up. Scammers are preying on people’s desire to be homeowners!

Companies are taking advantage of people who aren’t qualified for traditional mortgages and offering them their “mortgages”. Mail boxes are being blanketed with these mortgage opportunities, so you have to be careful. Specifically, follow these 3 tips:

1. Avoid upfront costs

In most cases, it is illegal for a lender to ask you for any money before you have signed on the dotted line. So, if a lender is asking you for upfront costs, then chances are pretty good it’s some sort of scam. These days, scammers will look for people who wouldn’t typically be approved for a traditional loan and take advantage of them by asking for a ton of upfront costs.

If you find yourself in a position where you can’t get approved for a traditional loan, take some time to repair your credit, and hold out for a loan from a quality lender. Whatever you do, don’t write a check until you’ve got a legitimate loan contract!

2. Watch for key phrases

Another way that scammers are tricking people is by sending out letters that are designed to look like they’re from the government or from some other official organization. These marketing ploys often use phrases like “guaranteed approval” or “guaranteed low fixed interest rates”.

Just remember – if the lender approves everyone, there has to be a pretty big catch! Anytime you are interested in a mortgage, take some time to thoroughly research the company. Check out their rating on the Better Business Bureau Website or check out other credible sources to find out if they are credible lenders are just trying to scam you.

3. Follow the “if it’s too good to be true” rule

If you’ve filed for bankruptcy or have very poor credit and someone is offering to give you a loan with guaranteed approval and low interest rates, it’s most definitely a scam. Remember, credible lenders aren’t willing to take on high-risk mortgages, and they’re certainly not going to make guarantees if they haven’t even met you yet!

If you receive a marketing piece in the mail, or if you hear an advertisement saying something that sounds way too good to be true, then the chances are almost certain it’s a scam. If you know you aren’t the best candidate for a loan – and someone is offering it to you anyways – find out why.

Bottom line – getting financed for a home is tough these days, and not everyone is in a position to receive a mortgage, no matter how much they may want one. If you find yourself in this situation, it’s much better to wait it out and take steps to improve your credit history and financial situation, instead of finding a lender who is going to rip you off in the long run!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Home Buying Tips for a Low Local Inventory

daniel@realtypin.com Daniel Torelli — Fri, 17 May 2013 21:25:39 GMT

Across the nation, inventory for homes is at record lows. Realtors have been in working overtime, trying to encourage homeowners to list their homes for sale. After all, hungry buyers are getting frustrated out there!

Despite their best efforts, though – and despite the fact that the spring is typically the busiest selling time of the year – it is still tough for buyers to find their next home in many markets. In fact, lots of places are home to bidding wars because of the low inventory. Lots of homebuyers are making offers above the asking price and still not getting the home. The term “sellers’ market” has never rung more true than it is right now!

So, if you want to make your home buying experience an easier one, use these five tips:

1. Get your finances in order

There is literally no time to waste when the local inventory is low! So, before you even begin your house hunt, make sure that your finances are completely in order. Start by identifying your budget and being very sure about it. With homes going for far more than the asking price, you’ll need to keep your budget in mind when you start bidding. After all, you don’t want to get carried away! (You may even want to look at homes with lower asking prices, just in case you need to go over the asking price.)

Either way, though, make sure that your financing is secure. With such low inventory, many realtors won’t even take you through a home unless you have secured financing with a credible lender!

2. Find the right neighborhood

Research the type of neighborhood you want, so you won’t have to waste time going all over town. By going to open houses in the same neighborhood, you can decide if that’s the right neighborhood for you. After all, the last thing you want is to be rushed into making an offer on a home in a neighborhood that you aren’t familiar with!

3. Know exactly what you want

By knowing which specific amenities are must-haves, you don’t have to waste time seeing homes that don’t fit within your scope. Be very specific with your needs (and wants!) to ensure that every house you visit is a home that you could potentially buy.

4. Be specific with your realtor

Your realtor is the best way to find homes as soon as they hit the market. However, the best way to help your realtor work quickly is to let your realtor know exactly what your budget is and the exact requirements you are looking for. Be firm with your realtor about your budget and the things you can’t live without. That way, they’ll only take you to the homes that are a good fit, and should you need to make a quick decision, you’ll know that the home has everything that you need (and, hopefully, most of the things you want!)

5. Act quickly

By knowing exactly what you want and in the neighborhood that you want it, you have a leg up on the other home buyers. Since you have already done your background work on the neighborhood and secured financing, you can make an offer faster – which increases your odds of getting the home of your dreams.

It’s not all just preparation, though. Try to get to an open house as soon as it goes on the market so that you have the best chance of making the first offer. Hopefully, the owner will accept it before another offer comes along!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Ways to Get a Great Price for Your Home

daniel@realtypin.com Daniel Torelli — Thu, 16 May 2013 19:21:45 GMT

It’s definitely a sellers’ market, and with bidding wars, builders’ lotteries, and buyers galore, lots of homeowners are getting great prices for their homes. In fact, many sellers are getting well-above their original asking price in a short period of time.

So, the lesson is clear – now is the time to sell, and chances are good that you can get a great price for your home. But just to make sure, follow our top 5 tips:

1. Understand your market

Just because it’s a sellers’ market doesn’t mean that the housing market is fully-recovered. Although people are getting higher prices than they were a few years ago, we aren’t back to pre-crash price. So, by understanding your current market, you can price your house just right – at a price that makes sense for the current situation, that also encourages an influx of buyers.

To figure out the right asking price, analyze the current market and check out other homes in your neighborhood. Many people make the mistake of using the LIST price of other homes as comps when you really should be using the SELLING price to get an accurate understanding of what your price should be.

2. Choose your agent carefully

Don’t fall into the trap of choosing an agent who promises more than they can deliver. If your agent says something that sounds too good to be true, trust your instincts and move on to the next one. And, don’t automatically go with the agent who offers you the highest listing price – especially if that price is dramatically higher than what other agents have told you.

One great way to get a top-notch realtor is to talk to other people in the industry, like mortgage brokers, real estate lawyers, or other experts. They’ll be able to give you an honest opinion and a referral for a reliable agent.

3. Take their advice

Once you have worked hard to choose your realtor, listen to them! Since you have done your research and found a qualified person, it’s important to trust the experts. A good agent will help you stage your home without overdoing it and without wasting a lot of money. They will also help you decide on a reasonable selling price to maximize your potential. Definitely ask questions about anything you don’t understand or want further explanation on, but trust your agent’s opinion when it matters.

4. Negotiate effectively

Don’t be dramatic or get easily-offended if you receive a low offer, and never ever end a negotiation because an offer is too low. Everyone wants to get the best possible price on these large investments, so of course, buyers are going to start low and work their way up. Although it’s easy to get your feelings hurt when someone makes a ridiculously low offer on your home, don’t make it personally. Negotiation is just business, and a low offer could just be part of a strategy. No matter what, make a counter offer; you never know what could happen!

5. Be reasonable

If you can’t agree on a price, don’t just throw away the opportunity. Many times, there are opportunities to work with the buyer to come to some kind of compromise. There are plenty of non-monetary arrangements that could benefit both you and the buyer. Inject some reason, and you may just wind up very happy!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Ups and Downs of Florida's Foreclosures

daniel@realtypin.com Daniel Torelli — Thu, 16 May 2013 18:50:11 GMT

If you take a quick glance at the foreclosure numbers coming out of the state of Florida, you might walk away feeling confused more than anything else! Numbers are up in some statistical categories, but have fallen in others, so what does it all mean?

Let's break it all down and give you some clarity!

On a state level, Florida had the highest foreclosure rate in the country for six consecutive months up until April. That’s when Nevada was crowned tops in the land. However, the Sunshine State still has its fair share of foreclosures. Last month, more than 24,500 Florida homes were in some stage of the foreclosure process. That number is down slightly from a year ago, and is significantly less than it was back in 2009 when foreclosures hit their peak.

On a more local level, two metro areas in the Sunshine State (South Florida and Ocala) currently rank among the top 3 cities in the nation for the number of foreclosures. In the South Florida metro (which is made up by Palm Beach, Broward, and Miami-Dade counties), 1 in every 269 homes was in some stage of foreclosure. In Ocala, that number is 1 in every 225. Only Akron, Ohio, has a worse foreclosure rate, where 1 in every 211 homes is currently in the foreclosure process.

Even though South Florida is still among the national leaders in foreclosure, new cases declined 35% from a year ago, according to recent reports. The story is the same on the state level, where the total number of foreclosures is up, but the number of new cases is dropping off.

So, what gives?

Economists say two things are likely happening.

First, banks are finally selling off all of the backlogged foreclosures they've been holding onto for the past few years. Things had ground to a halt starting in 2010, when some lenders stopped filing new cases because of growing concern about possible paperwork errors. Those issues have since been resolved, so many banks are now pushing through the backlog of homes they've acquired in the last three years. As these properties hit the market, it increases the total number of foreclosures in the state – but since many of these homes were seized in years past, they aren't considered “new cases”.

Secondly, Florida's lengthy foreclosure process may finally be sped up by new legislation. On average, it takes 893 days to complete a foreclosure in Florida. Only New York and New Jersey (1,089 and 1,002 days, respectively) take longer. Florida state lawmakers know the backlog is slowing down Florida's housing recovery, so they recently passed a bill that would speed up the process. The bill will force homeowners to respond faster to foreclosure filings, and it will also give homeowners’ associations more power in the process.

The bill also affects lenders, forcing them to prove they have to right to foreclose on a home before filing a case. It also reduces the amount of time a bank can recover mortgage deficiency. Currently, it's 5 years, but the new bill would reduce that time frame to one year. The legislation also requires that judges immediately review all filings in their chambers without a hearing before talking to both parties.

Under the new law, if the lender believes the borrower has no case, the judge can enter a final judgment without hearing from the homeowner. But if the homeowner believes they have a case, a judge will be required to hear what they have to say before making a final judgment.

Supporters of the bill include many realtors who say it will help resuscitate Florida's struggling housing market, but opponents of the legislation – including foreclosure lawyers – say all the bill does is restrict homeowners due process rights.

One thing is certain – if Governor Rick Scott signs the bill, it would speed up the foreclosure process, which would help clear the backlog of distressed properties that are still on the books. The sooner that happens, the faster Florida – and cities like Miami and Ocala – will fall from the nation's leaders in foreclosures.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Questions You Probably Have About the Housing Market

daniel@realtypin.com Daniel Torelli — Wed, 15 May 2013 19:41:56 GMT

Whether you're looking to sell or hoping to buy, the housing market can be a tricky industry to navigate because it’s always changing. If you've never bought or sold a home before – or if it's been several years since you went through the process – chances are you have some questions about the current state of the housing market.

You're not alone, but luckily, the answers to the most common questions are all positive at this point in time!

We've compiled a list of the top 5 questions that you probably have about the housing market. The answers will help you move forward in the housing process:

1. How is the housing market REALLY doing?

This is the most obvious and most common question that we hear! The truth is, the housing market hasn't fully recovered from crash a few years ago, but it's definitely headed in the right direction. Prices are up all over the country, inventory is low in most areas, and a recent influx of anxious buyers has created a seller's market full of bidding wars. It's also a great time for buyers, though, because prices are still low enough where you can get a great deal.

2. Are banks lending?

The answer to this question depends on who is asking it! Banks are eager to lend money to qualified borrowers, but are typically unwilling to lend to anyone without a clean credit report and a significant down payment. If you have an above-average FICO credit score, a suitable debt-to-income ratio, and can provide a 20% down payment, lenders will likely give you a mortgage. If not, your only hope may be a loan backed by the Federal Housing Administration, but these loans have gotten harder to come by these days.

One final note – be sure to research several lenders so that you can get the best deal. Lenders are looking for qualified borrowers and don't want to lose out to the competition.

3. Are there still a lot of foreclosures?

Each market is different, but on a nationwide basis, the number of foreclosures has significantly decreased. In most cities, a majority of the foreclosures that once flooded the market have already been purchased by investors and have either been resold for a profit or are currently being rented out.

Also, banks are more willing to work with homeowners who are behind on their payments instead of going through the foreclosure process, so fewer distressed properties are entering the marketplace.

In many cities, banks still have some homes that they've foreclosed on but have yet to put on the market because they are waiting for prices to rise even more, but even when that happens, it shouldn't affect home prices too much because there is such a shortage of homes for sale these days.

4. What about short sales?

Although the number of distressed properties has significantly decreased in recent years, there are still homeowners out there who have defaulted on their loans. Banks prefer to go the short sale route instead of through the foreclosure process because there's less paperwork involved. Plus, it's a quicker process. (A short sale transaction typically takes four to eight months as opposed to the one to three years that a foreclosure can take.)

If you're looking for a good deal on a home – especially in a market where there isn't a lot of inventory to choose from – keep your eye out for short sale listings.

5. Will home prices keep rising?

It's impossible to predict the future, but it does look like the current trend will continue for the rest of this year and, hopefully, into the early portion of 2014.

One reason for the optimism is that home prices fell so low during the housing crisis that they had a long uphill road to climb back up. That process is underway now, and although home prices will likely never be as high as they were in 2006, they will keep climbing – especially if there continues to be more eager buyers than there are homes currently for sale.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Do New FHA Rules Mean for You?

daniel@realtypin.com Daniel Torelli — Wed, 15 May 2013 16:41:12 GMT

For the past few years, many Americans have been turning to government-backed mortgages to purchase a home, but some new changes may reduce the number of borrowers who qualify for these types of loans.

How did we get here?

When the housing market collapsed in 2008, many private lenders were afraid to issue mortgages, so home loans backed by the Federal Housing Administration (FHA) gained in popularity. Even now, as the market is showing signs of recovery, lenders will only approve loan applications for borrowers with stellar credit and a 20% down payment. Prospective homebuyers who don't meet those criteria often turn to FHA-backed loans, which essentially protect lenders if the borrower defaults on the loan.

In simple terms, FHA loans are mortgages that come with an insurance policy. Borrowers pay the premium, and if they default, the insurance policy is used to pay back the lenders so that they don't lose out if a borrower can't make their mortgage payments.

The system was designed to make homeownership accessible to more Americans, and because of the insurance policy, lenders know it’s less risky to issue these loans to borrowers who they would otherwise deny. Also, FHA-backed loans usually only require a 3.5% down payment, instead of 20% that private lenders require, so these types of mortgages have become a very attractive option to many buyers.

Traditionally, FHA-backed loans make up about 10-15% of the market, but in 2012, 25% of all mortgages issued were FHA loans. In all, the FHA issued 1.2 million single-family loans last year, and 4 out of out every 10 first-time homebuyers purchased their home with a FHA-backed mortgage.

But that created a problem.

The FHA was already facing financial problems stemming from the losses they incurred during the housing crisis, and the additional lending last year cut further into their reserves. In fact, there have been rumors coming out of Washington that the FHA may need a government bailout of up to $943 million in taxpayer funds to strengthen their mortgage insurance fund.

So, in an effort to correct the problem and limit future losses, the FHA recently made some changes to their loan policies.

The first of these changes went into effect April 1st, and involves an increase in the mortgage insurance premiums (MIP). Now, all FHA loans equal to or below $625,500, where the loan is 95% or more of the home's appraised value, the borrower must pay a MIP of 1.35% of the loan amount. Loans above $625,500, where the buyer is borrowing 95% or more of the home's value, are subject to MIP payments of 1.55% of the loan amount.

Not only has the FHA raised these percentages, but they have also extended how long the borrower must pay these premiums.

In the past, once the loan was paid down to 78% of the original value of the home, or after five years’ time (whichever came first), the borrower no longer had to pay MIP. But starting on June 3rd, the FHA will require anyone taking out an FHA-backed loan who is borrowing 90% or more of the home's value to pay MIP for the full term of the mortgage.

In other words, if you take out a 30-year mortgage with the FHA after June 3rd, you'll be making MIP payments as long as you own the home!

Also, the FHA has proposed increasing the required down payment on new loans with principal balances over $625,500. Currently, borrowers buying homes in this price range are only required to provide 3.5% down payment, but FHA officials would like to see that raised to 5%.

What does all of this mean for you?

Economists say these changes will drastically reduce the number of first-time and lower income homebuyers who rely upon the FHA-insured loans to purchase their homes. If these loans aren't as easily accessible in the future, homeownership might become a less obtainable goal for many Americans.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Atlanta Housing Market Makes Major Jump

daniel@realtypin.com Daniel Torelli — Tue, 14 May 2013 11:35:58 GMT

The weather isn't the only thing that's heating up in Atlanta these days. The local housing market is red-hot once again!

According to the latest S&P/Case-Shiller Home Prices report, home values in Atlanta were 16.5% higher in February than they were in February 2012. That's the city's highest year-over-year growth since 1992!

It's also great news for both sellers and buyers, as it shows that home prices continue to rise but are still affordable enough to give buyers a great deal.

Like other cities around the country, Atlanta currently has a low inventory of homes available, which is the driving force behind these home value increases. Some homeowners have already listed their properties for sale, but others are holding tight to see if prices will go even higher. The banks are among those waiting around, too. Many of them are sitting on foreclosed properties, waiting for the perfect opportunity to unleash them onto eager buyers.

Speaking of prospective buyers, there is no shortage of them here. The number of buyers continues to grow in metropolitan areas across the nation, and Atlanta is no exception to that trend. In fact, housing gains are providing a big incentive for Atlanta buyers. After all, they’ve seen prices go up, so they want to buy now while properties are still affordable.

Combine that with the fact that mortgage interest rates remain near record-lows, it’s a great time to buy a home in Atlanta!

But what if you’re a seller?

The lack of inventory has led to bidding wars, and here in Atlanta, many homes are only on the market for a matter of days, instead of months. In fact, local realtors report that many of their clients are receiving offers the same day they list their homes for sale. So, as long as your home is competitively priced, expect to receive multiple offers!

Experts say because of the competition, anyone wanting to buy a home in Atlanta should act quickly and bid high. They say even if you end up paying more than the seller's initial asking price, you’re not “out” anything. Since recent trends show that home values in Atlanta continue to increase, waiting around for another home will likely cost you more money.

Atlanta’s increased property values should encourage more homeowners to list their properties for sale in the coming months, which will make it easier for buyers to find a home that they can afford.

And since sellers are also buyers, the timing couldn’t be better! Economists say now is a great time for homeowners to list their properties, especially if they are looking to move up to a higher-level home. By selling your home now, you can enter the market as a buyer and get a larger, more expensive home before the prices go up further – and take advantage of the low interest rates. So, no matter which side of the coin you’re on, the housing market in Atlanta seems to be headed in the right direction, which is good news for a city that was among the hardest hit by the recession.

It's nice to see those trends reversing as Atlanta's housing market climbs out of the gloomy recession days and into a state of recovery!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Want to Buy a Home? You've Got to Win a Bidding War!

daniel@realtypin.com Daniel Torelli — Tue, 14 May 2013 10:36:15 GMT

The days of making an offer on a home and walking away if the seller didn't like your price are over! Across the country, the real estate industry has shifted to a seller's market, with most homes receiving competing offers from multiple buyers

Why?

Earlier this year, the National Association of Realtors (NAR) announced that the number of homes for sale across the U.S. was at its lowest level since 1999. With an ever-increasing number of interested buyers, the battle to purchase a home is only getting tougher for prospective buyers. Lawrence Yun, the chief economist at the NAR, recently said in a statement that buyer traffic is 40% higher than it was a year ago.

“We’ve transitioned into a seller’s market in much of the country. We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth,” said Yun.

In other words, no matter where you live, if you want to buy a home right now, be prepared to win a bidding war!

A recent report showed that 9 out of 10 homes in some cities in California are receiving multiple offers, and at least two-thirds of all properties in Boston, New York City, Seattle, and Washington D.C. have attracted bidding wars. In Connecticut, it's much of the same, according to recent reports. Here, sellers of almost all mid-range properties ($300k to $600k) are receiving multiple offers.

So why did this seem to happen overnight?

Strategic pricing is one reason why bidding wars have become commonplace. One realtor in San Francisco recently told the San Francisco Chronicle that he purposely tells his clients to list their homes slightly below current market value in hopes of attracting multiple prospective buyers. While that may be viewed as a sleazy move on the realtor's part – and a risky one by the homeowner – in this current housing climate, it actually works! That realtor says his clients’ homes are selling at an average of 15% above listing price, but many other realtors have recently reported similar tactics and results.

It's simple supply and demand, and realtors know that homes are once again becoming a precious commodity among the American consumer!

Not only are sellers receiving multiple offers for their homes, but they are also selling them faster because of the bidding wars. For example, in Denver, most homes are selling in less than 30 days. One expert says that's because there's such a shortage of inventory that buyers are becoming frustrated and quickly jump on any home that is within their price range.

Some buyers around the country are offering cash instead of traditional mortgages, while others are adding other incentives into the deal in hopes of attracting the seller's eye. From a seller's standpoint, this is great because they are receiving multiple bids often where buyers keep trying to one-up the competition.

But for buyers, it's becoming more and more frustrating by the day. Unless significantly more homeowners chose to list their properties in the months to come, the trend isn't changing, so if you're looking to buy a home, be prepared for a duel with other prospective buyers who want it, too!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Has Shadow Inventory Left Las Vegas for Good?

daniel@realtypin.com Daniel Torelli — Mon, 13 May 2013 19:25:02 GMT

Las Vegas was among the cities that were hit hardest by the housing market's collapse, but if there's any upside to that, it's that the steep falloff left plenty of room for growth and recovery in the future.

And that's exactly what's been happening in this desert paradise over the last year!

Home prices here have risen 30% in the last 12 months, and analysts expect that upward trend to continue in the months to come, despite the so-called “shadow inventory” that many were afraid would hit the market and send things reeling.

To see just far this city's housing market has come in the last year – but also how much further it has to go before it's fully recovered – take a look at the median sales price for a single-family home. It's now up to $161,000, which is a significant increase over a year ago, but it is still only about half of what the median price was in 2006.

Homeowners in the area are hoping that home prices keep rising. Some are looking to sell their home, and want to make a maximum profit on it, while others simply want to stay in their current home but don't want to be underwater on their mortgage anymore. Those underwater mortgages have been a big problem here, as many homeowners lost their homes due to foreclosure. This not only affected those homeowners who no longer had a home they could call their own, but it also brought down property values of other homes nearby.

The real estate market here was quickly flooded with distressed properties. In fact, according a study by the Lied Institute for Real Estate Studies at UNLV, more than half of the homes that sold in 2009 were foreclosures! The buyers were mainly individual investors, investment firms, and locals with cash who were looking to make a profit. They bought as many of these properties as they could in hopes of someday reselling them for a profit.

As we’ve gone along, the investors wound up buying virtually all the foreclosures. Plus, fewer homes are being foreclosed on these days, especially since banks started becoming more willing to work with borrowers who were behind on their payments. Now, according to the same report from the Lied Institute, Las Vegas’ foreclosure rate is down to 14.1%.

The end result? Now we’ve got a market that went from having too much inventory to too little!

A lack of available homes has driven prices much higher, which is good news for sellers and everyone involved in the real estate industry. But now, many Las Vegas homeowners are worried that the shadow inventory could once again flood the market and reverse any progress that's been made in terms of value increases.

“Shadow inventory” is a real estate term for unlisted bank-owned homes, meaning properties that they've already seized but haven't put up for sale yet. The banks will obviously try to sell these homes eventually, but the President of the Greater Las Vegas Association of Realtors, David Tina, thinks it's in the banks best interest to release those home slowly instead of flooding the market.

Tina recently told a local Las Vegas television news station, “They are going to release those strategically to keep prices as high as they can.”

According to Tina, even if the banks did decide to release the entire shadow inventory at once, it wouldn't hurt home prices because of the current lack of supply of home for sale. He says, if anything, all it would do is give local realtors more homes to sell, which would keep prices from dropping.

So, it seems that shadow inventory might be a thing of the past in Las Vegas. Banks aren't as quick to pull the trigger on foreclosures anymore. For the homes where they don’t have any option but to foreclose, they're being very strategic about when to list them for sale so that the local housing market can continue to recover.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

South Florida Seeing Both Sides of Housing Spectrum

daniel@realtypin.com Daniel Torelli — Mon, 13 May 2013 19:06:33 GMT

Two housing reports released last week show that South Florida has residents on both sides of the housing market's struggle and subsequent recovery.

The Center for Housing Policy takes an annual look at the challenges for America's working households to find affordable housing, and Miami sits atop their list of cities where housing is a serious financial burden for homeowners and renters. The study looks at all families nationwide where the adults in the household work at least 20 hours a week and do not make more than 120% of the median income in their area. In the study, these people are considered “working households”. From there, researchers determine how many of these households spend more than half of their income on housing costs (either a mortgage or monthly rent).

The study is based on the 2011 Census data, which is the most recent available. According to the report, there are 44.5 million working households in the country, and 23.7% of them are dealing with a “severe housing cost burden”. That means more than 50% of their income goes towards their housing costs, which doesn't leave much money to go towards other bills and expenses.

In South Florida – especially in Miami – the percentage is much higher, though. According to the new report, 41% of all working households in Miami spend more than half of their income on housing costs.

The study found that the average monthly household income for working renters in 2011 was $2,546, and that the average housing cost for renters was $847. That means that most renters were only spending one-third of their income on housing. Similarly, the median household income for working homeowners was $3,496, and the average mortgage payment was $1,024. Again, that's roughly 30% of their income going towards their mortgage payment.

But in Miami, where 41% of the working population spends more than half of their income on housing, finding a way to pay for housing costs is harder than it is in other parts of the country. Experts say the reason Miami has some of the least affordable housing in the country is because incomes in the area keep declining but housing costs continue to rise.

While that's certainly an alarming trend, there is still some good news in South Florida.

According to another report that was released last week, the Miami market ranks 6th nationwide in the firm's Top 25 Markets for Flipping Homes study. While the latest trend has been for investors to purchase distressed properties and hold onto them as rentals while the market continues to recover, flipping is still a popular option among people looking to make a quick profit.

This report looked at markets across the country to determine which cities have the highest rate of return based on the flipper's gross profit. What they found was that only Orlando, Las Vegas, Phoenix, Tampa, and Memphis had a higher gross profit percentage than Miami. According to the report, there were 4,299 single-family homes that were flipped in Miami in 2012. That's up 36% from the previous year, so clearly, flipping is becoming trendy again.

The average purchase price for the nearly 4,300 homes that were flipped last year in Miami was $138,064, and the average flipped price was $189,291. That's an average gross profit of $51,227, or a 37% increase over what they paid for the home. So, if a flipper can afford to purchase a home in Miami, and can find one to fix up within their price range, it's worth considering!

Clearly, Miami is still climbing over the speed bumps on the road to housing recovery, but it seems that at least in the meantime, the rich will keep getting richer by flipping homes, while the working class is struggling to find affordable housing.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Lotteries the New Way to Buy a Home?

daniel@realtypin.com Daniel Torelli — Sun, 12 May 2013 19:02:13 GMT

Nothing says “sellers’ market” quite like a group of people crossing their fingers and hoping that they come up lucky in their bid to buy a particular home – literally! The newest home buying trend these days is a lottery system. Home buying lotteries have become the norm in some parts of the country, where there just isn’t enough homes available to supply the demand.

How on earth did this trend begin?

When builders started noticing that buyers were camping out at the openings of condo developments, they realized a lottery system would be an appropriate way to determine who actually gets to buy one of the units inside. The trend has now spread to single-family homes.

Why do buyers agree to being part of a lottery?

In some cases, there isn’t any other way to buy a great home! As the housing market starts to recover, we’re seeing an increase in bidding wars around the country, which are increasing property values in their wake. So, instead of having buyers bid for a home, some sellers are opting for a lottery to determine a “winner”.

How does it work?

The way many lotteries have worked so far is that builders will hold a lottery for their available houses. In some places, they offer a certain amount of homes each month. Those who have proof of financing and have the cash for a down payment in place can enter into the lottery. The builders typically draw two names, in case the first person or family backs out.

This lottery takes place until all the homes are gone in that development. In many cases, the prices have risen more than 30% by the time the lottery is all said and done, which is great for the seller. There’s an upside for buyers, too, though. Many of them are relieved that they don’t have to get into a bidding war or camp outside a lot waiting to make an offer. They simply wait to see if their name is called!

The builders claim that they set their homes at a fair price, without trying to start a bidding war. That’s actually good for them, because even though bidding wars can raise their profits, they can also be a major headache. With the lottery, builders can set the price they want, and those who are willing to pay that price can enter into the lottery.

And it’s been working!

For builders who have been trying to make the best of a tough economy and an even tougher housing market, it’s a huge relief to be in a position where they have a wide pool of buyers. In fact, in many parts of the country, they can’t build the homes fast enough to appease all of the buyers! After all, most of the buyers in the lottery lose – and try their odds at another home.

In some cases, builders will give out extra lottery tickets for each week that a specific homebuyer has been trying to win. This has helped up the odds for some people who have been participating in these lotteries week after week without getting their name called.

Although lotteries can be frustrating for someone who is looking for a new home in an area where there just isn’t much supply, the trend is encouraging for sellers who have been waiting a long time to see the housing market head in the right direction!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Find the Perfect Mortgage?

daniel@realtypin.com Daniel Torelli — Sat, 11 May 2013 18:38:02 GMT

Finding the perfect mortgage is almost as important – and almost as difficult – as finding the perfect home! After all, a mortgage makes up a huge amount of money, and even with a low interest rate, you’re still paying the lender a lot of money just for them to provide you with the loan. You’re going to be attached to the lender for 15-30 years, so this choice is a big one.

So, how do you make the perfect choice?

- Have the right mindset

Before you start shopping for a mortgage, you need to get in the right frame of mind. Many times, people feel vulnerable when they are shopping for or applying for a mortgage, because they feel as if the lender is doing them a big favor. That’s due in part to the process itself. The lender looks through your history with a fine-toothed comb, and then decides if you are eligible to receive their money.

However, this often puts people in the wrong mindset. When talking to a lender, remember that this lender is going to get a lot of money in exchange for giving you a loan – so it’s not a favor! By getting in the right frame of mind, you can ensure that you get the rates and the customer service that you deserve.

- Set your goals

Before picking a mortgage, it’s important to decide what your long term goals are. For example, how quickly do you reasonably expect to pay off the home? Will you eventually want to refinance or borrow against your home?

After figuring out your goals, you need to ask yourself the questions that will help you find the right mortgage to achieve them. It’s important to find out how large of a down payment you will need and how much you can actually afford. Just because the bank tells you the minimum for a down payment doesn’t mean that’s the maximum you should pay, and just because you can afford more at the time, doesn’t mean you should pay more.

Using a mortgage calculator to find the total price of the home (including the interest!) is a great way to be realistic about your goals and find the right mortgage for you.

- Never choose a mortgage out of desperation

Finding the right mortgage may mean temporarily putting off buying a home. If you are strapped for cash or your credit is less than perfect, you may be better off renting so that you have time to save up more money for the down payment or to repair your credit.

Remember, a big part of the reason that the housing market crashed was because lenders were giving loans to people who couldn’t afford them – which eventually led to an unprecedented amount of foreclosures. There are still lenders out there who will give you a loan if your credit isn’t stellar or you don’t have a ton of money for the down payment, so be careful!

These types of lenders usually offer loans with a very high interest rate, and they usually don’t offer very good customer service. You are going to be tied to this lender for a very long time, so it’s very important to make sure that the lender is reputable, and that you aren’t going to pay so much more in interest over the years that you would have been better off to wait until you could qualify for a loan with a lower interest rate from a more reputable lender.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Renovations for Seniors

daniel@realtypin.com Daniel Torelli — Fri, 10 May 2013 21:50:56 GMT

The needs of senior homeowners tend to be much different than their younger counterparts. As people age, they are more inclined to want view their home as a place to live for the long haul. In fact, seniors will go the extra mile to make sure that they never have to worry about moving again!

How?

In many cases, the right renovations can add to the functionality of the home. So, here are our top 4 renovations for senior homeowners:

1. Add to the accessibility

Seniors can have a tough time getting around, but a few changes can make things easier. You may want to install a new bathroom that’s closer to the master bedroom or create a master suite that includes everything you need. Or, you may want to add a ramp to your entryway, or install handle bars throughout your home so that you don’t trip and fall.

Remember, many seniors want to maintain their independence as long as possible, and stay in their homes. To make that possible, it’s often necessary to make the home easier to get around.

2. Better bathrooms

This renovation tends to be a tricky one. Many seniors want to improve the functionality of their bathroom for their changing needs, but they still want their bathrooms to be aesthetically pleasing. The bathroom needs to have certain features, but without the look of a clinic or a hospital!

Some of the top renovations include removing the curb of a shower so that you don’t have to step up, installing handle bars in the shower or bath tub so that you don’t fall down, and improving the lighting. Remember, your bathroom needs to be good enough for a late night visit, but without the cold and technical feel.

3. Install an elevator

Although not economically feasible for everyone, elevators are becoming a popular renovation for seniors. Many times seniors have a two story home, but have difficulty getting up the stairs. An elevator provides the freedom to maintain a two story home, without the dangers that come with climbing up and down steps.

Elevators have really gained in popularity over the past few years thanks to multi-generational living – or, instances where several generations of family live together in an effort to save money. Above-garage apartments or carriage houses have become increasingly popular, and an elevator provides a safe way to get to them. Elevators are also important for people who have wheelchairs, where climbing the stairs just isn’t an option.

4. Widening doors and hallways

If you’re one of the many seniors who uses a wheelchair or a scooter, you’ll need to make it easier to get around. Many houses aren’t wide enough to accommodate these accessories, so increasing the width of your doors and hallways is an absolute necessary. Remember, it usually makes more sense to make expansions than to look for a different home.

Even if you don’t use a wheelchair or a scooter, this can be a good upgrade. After all, some older people need help walking – and a wider area is perfect for two!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Renovations That Don’t Pay Off

daniel@realtypin.com Daniel Torelli — Fri, 10 May 2013 19:56:51 GMT

People choose to renovate their homes for a variety of reasons… Some people want to do renovations so that they can enjoy their home while they are living in it, while others make upgrades to increase the value of their home because they’re about to put it up for sale. Unfortunately, lots of people wrongly assume that they will get back all of the money that they put into their home, but that’s not always the case!

Why not?

As a general rule, buyers don’t appreciate things they can’t see. So, if you’re doing something that changes the structure of the home – but isn’t as noticeable as, say, a brand new paint color – it can be hard to get your money back. Plus, structural renovations tend to cost the most, which makes getting your money back even tougher.

So, which home renovations should you stay away from? Here’s our top 5 list of the renovations that don’t pay off:

1. Gourmet kitchens

Most buyers want an updated kitchen, but going all-out with gourmet appliances and accessories is very expensive. If your kitchen only needs new appliances, then that’s definitely something you can get your money back on, but if your renovation includes a new island, rewiring, new floors, and other expensive upgrades, don’t expect to get as much of your investment back as you’d like. According to the Wall Street Journal, a gourmet kitchen typically only gets about 60% of its costs back when you go to sell.

2. Master suites

They can be luxurious, but master suites only earn back about 50% of their investment at resale. That’s because they are a definite “want” on many people’s list when searching for their next home, but they’re typically not a “need” – so people aren’t quite as willing to spend extra on them.

Plus, master suites are usually specific to the personal taste of the current owner, which means yours may not translate well to the next owner’s taste. Chances are good that your master suite isn’t going to be exactly what the next person is looking for in a master suite, and therefore won’t see a reason to pay extra for that extravagance.

3. Spa-like bathrooms

A spa-like bath may be a “must have” for your next renovation, but don’t expect to get a lot of your money back. That’s because these rooms are cool – but very expensive. Turning your bathroom into a spa means doing lots of electrical work, major plumbing work, and installing expensive fixtures.

4. An in-ground pool

Unless you live in a warm-weather state like Florida – where a pool isn’t a luxury, but instead, a virtual necessity – chances are good that you won’t see much return on your investment. That’s because many homebuyers see pools as a time- and money-consuming endeavor. So, they aren’t usually willing to pay more for one.

5. A high -level security system

This one is tricky, because a security system does add value to your home, and it may be able to give you a pretty good return on that investment. Be careful, however, about wiring your house like Fort Knox! That renovation won’t get you much of a return.

People want to feel safe, but they don’t want something so expensive and so complicated that it disrupts their lives. If it’s that necessary to have such a complex security system, you may want to consider foregoing the expensive security system and invest in moving to a safer neighborhood!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Why Are Some Homes Stuck on the Market?

daniel@realtypin.com Daniel Torelli — Thu, 09 May 2013 20:59:04 GMT

In the current era of bidding wars and builders’ lotteries, it’s hard to imagine that there is a single home that would sit on the market for any length of time. After all, in some places, the housing inventory is so low that people are willing to do just about anything to get a home!

Although most houses are getting multiple offers as soon as they hit the market, there are some homes that continue to sit month after month, without fetching any interest.

Why?

The problem boils down to a few key factors:

- Asking price

Pricing your home is one of the most difficult parts of selling your home. It’s important not to set your asking price using emotion. What your home’s value is according to you, and what your home’s value is according to the market can be vastly different.

People who set their home’s price too high can scare away potential buyers. In fact, if buyers see your home sitting at a certain price point, they may be discouraged from even visiting the home in person. In this market, a price that’s too high will scare buyers away and could cause your home to sit on the market indefinitely. So, make sure you price your home competitively. Doing so can spark a bidding war and get you a higher price by the time all is said and done.

- Showing restrictions

One of the biggest frustrations for realtors is having restrictions on when they can show your house to buyers. Having too many showing restrictions can keep your house on the market for much longer than you intended. If you are serious about selling your house, it’s important to have your home ready to show at a moment’s notice and to be as flexible as possible throughout the process.

Even though it can be a pain to keep it spot less and to leave without much notice, the payoff is well worth it. The more frequently you show your home, the faster you are likely going to sell it!

- Messes and/or smells

This may seem like common sense, but you’d be surprised to find how many people don’t even bother to clean up before a showing. Whether they don’t have the time or don’t want to be bothered, people underestimate the importance of a clean home for every single showing.

Smells can also deter buyers and keep your home on the market longer. Pets are one of the biggest culprits of smells, and oftentimes, the homeowners are so accustomed to it, they don’t even notice that their home smells less-than-fresh.

Even pleasant scents can be a turn-off! If you’ve got a million candles, incense sticks, or air fresheners, the finished product can be so strong that buyers want to avoid your home at all costs!

- High-maintenance sellers

Being a high-maintenance seller can keep your house on the market, while your neighbors fetch multiple offers in the first week.

How exactly can you be high-maintenance?

If you don’t even consider lower offers from well-qualified buyers, it can keep your home on the market longer. (Remember, you can always counter with a higher price!)

Or, if you insist on sticking around for showings, you’ll make buyers feel uncomfortable. Inflexibility during the showing stage makes buyers think that you’re going to be just as hard to work with during the negotiation, so they will likely go elsewhere in hopes that they’ll find someone who is more cooperative.

If you want to sell your house, right now is a great time. Interest rates are low for well qualified buyers, and it’s most certainly a seller’s market. If you’re serious about selling your home, make a conscious effort to be as cooperative with everyone involved throughout the whole process to get your house sold quickly and at the right price!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Things Home Buyers Will Pay More For

daniel@realtypin.com Daniel Torelli — Thu, 09 May 2013 19:43:36 GMT

When you’re making upgrades to your home – especially with the intent of getting a good return on your investment – it’s important to know what buyers want and what they’re willing to pay more for. While all buyers aren’t the same, they tend to look for certain attributes in their new home – so much so that they’re willing to pay extra to get them.

Read on to find the top 5 things home buyers will pay more for:

1. Stainless steel appliances

It’s almost become a cliché that buyers want stainless steel appliances! That’s why it tops our list. It is a little ironic, however, that buyers are willing to pay more for stainless steel appliances – because from an investment standpoint, stainless steel tends not to last as long as other materials. However, people prefer the more modern look of stainless steel and are willing to pay extra to have it.

2. Hardwood floors

This is another huge bonus in most buyers’ minds. Most buyers want hardwood floors, and some won’t even look at a home that doesn’t have them! After all, carpet gets worn out (not to mention dirty!) and needs to be replaced often. Hardwood floors are easier to maintain, AND they add an aesthetic value to the home that carpet doesn’t.

However, older buyers don’t seem all that impressed with hardwood floors. One study found that older generations may be more inclined toward carpet to conserve energy (because it traps in heat better than its harder counterpart).

3. Granite countertops

Nothing says “luxury” quite like granite countertops. Many home buyers see granite countertops as a “must have”. That’s because having granite countertops in a kitchen or bathroom imparts thoughts of both style AND quality, so many buyers are willing to pay more to get them.

4. Central air conditioning

USA Today reports that 69% of home buyers are willing to pay extra to have central air. The report also showed that they would pay around $2,500 to have central air in their next home. That’s because central air installation costs quite a bit more than that, so many of them are trying to get around the expense of having to install it themselves!

This may not be a “must have” in every part of the country, but in most, central air conditioning is an absolute necessity. In places such as Southern California, where there are mild temperatures all year round, it’s not quite as important or common then, say, in Arizona, where a home without it probably won’t even be considered!

5. A fireplace

Nothing is better than getting cozy by the fireplace with someone you love – which is why buyers are willing to pay extra for a home that has at least one fireplace! Fireplaces are also a huge selling point because they make up a focal point of the room, AND they can be used as a heat source in the winter.

Fireplaces are actually growing in popularity these days because more people are turning off their TVs in favor of laptops and tablets, and a fireplace offers the perfect atmosphere to read a book or catch up on shows on a tablet.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Boston Housing Inventory Was Low Before Bombings

daniel@realtypin.com Daniel Torelli — Wed, 08 May 2013 20:07:43 GMT

Anytime disaster strikes – either those caused by nature or man-made destruction, like the horrific Boston Marathon bombings – the effects on the surrounding community are very damaging. History has shown us that the economy takes a severe hit in the months that follow a disaster, and the trickle-down effect can be felt by many industries, including the housing market.

When it comes to economic fallout from the Boston Marathon bombings, analysts speculate that fewer tourists will visit Boston this summer and that the city's usually booming convention scene will also report fewer attendees this year. Because fewer people will be coming into the city, it's safe to assume that local businesses will lose money. Anytime that happens, consumer spending drops off. And when consumers stop spending money, they stop making large purchases, like homes or cars.

Analysts say people are also less likely to list their homes for sale after a disaster, which is especially bad news considering that Boston’s housing inventory was already low prior to the attacks.

So, does this mean Boston’s housing market has taken a hit it can’t recover from?

If there's one advantage that Boston has, it's that a large portion of its residents have job stability and high-income jobs. That means that they can afford to buy homes even during a recession or following a disaster. Current statistics show that plenty of people in Boston are looking to a buy a home. That’s why Boston's housing market shouldn’t take as large of a hit as you might expect.

If anything, now that the investigation is moving forward, people within the city and surrounding areas are trying to return to their normal lives. That means it's time to resume the bidding wars!

Like other cities, Boston has seen an increase in homebuyers. The inventory, on the other hand, is dropping. According to the Massachusetts Association of Realtors (MAR), the state’s inventory level dropped off 29.8% in March when compared to March 2012. That's the largest year-over-year decrease since the association started tracking the data. The number translates to just 5.1 months’ of supply at the current sales rate.

Because inventory is so low, the number of home sales have dropped off. However, the homes that are selling are going for more money. The MAR reports that 3,011 detached single-family homes were sold around the state in March, which is 3.3% lower than it was in March 2012. The median sales price for March was $290,000, which is up 7.8% from a year ago.

Another report that conducted by the Warren Group, a Boston-based firm that tracks local real estate data, uses different methods to track housing data, but showed very similar results. According to their study, single-family home sales in Massachusetts dropped 3.6% in March of 2013 when compared to the same month last year, and the median sales price was up more than 8% in March (to $285,000).

What all of these numbers prove is that Boston was already a competitive housing market before the bombings, and it could become even more of a battle in the months to come.

Clearly, there are not enough properties for sale to accommodate everyone who is looking to buy, and experts think inventory may dip even lower in the months to come. Realtors had hoped that more homeowners would be tempted by the rising home prices to list their homes for sale, but if those same homeowners are worried about the economic impact of the bombings, they may play it safe and stay put in their current homes. If that happens, the usually-busy Spring home buying season will be dominated by bidding wars.

In other words, if more Bostonians don't list their homes for sale, buyers need to be ready to deal with frustrating circumstances. So, from a housing market standpoint, the bombings couldn't have come at a worse time.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Chicago Seeing Best Housing Numbers Since Crash

daniel@realtypin.com Daniel Torelli — Wed, 08 May 2013 19:42:40 GMT

Newly-released statistics show that the Windy City may be on its way towards housing recovery, thanks to sales figures that we haven't seen since before the recession.

According to a report just released by the Illinois Association of Realtors, home sales in Chicago for the month of March were at their highest levels since June 2008. In all, 1,900 single-family homes and condominiums sold within the city limits, and in the nine-county area surrounding the city, a total of 7,914 homes sold in March. That’s an 18.1% increase from the same month one year ago.

As inventory remains low (like it is in most other parts of the country), homes here are selling much faster and for higher prices than they have been in recent years. The median sales price for a home within Chicago's city limits in March was $187,500, which is up 9% from the previous year. It was the sixth consecutive month that the median sales price rose in a year-over-year comparison.

One reason for rising prices is a lack of quality inventory. According to the report, 76% of all homes that sold in March were distressed properties, meaning they were either foreclosures or short sales. Unfortunately, distressed properties often sell way below market value, which brings down the overall median sales price. For example, if a homeowner sells their home for $300,000, but on the same day, a bank unloads a distressed property for $90,000, the median sales price for those two homes is $195,000. Now, apply this example to the entire city's housing market, and you can see how distressed properties dampen median price increases!

But as these distressed properties start to disappear from the market, home prices begin to rise – which is what's starting to happen right now in Chicago.

Economists point out that these distressed properties are selling at a faster pace than newer foreclosures are being added to the inventory. In other words, most of Chicago’s newly-listed properties belong homeowners looking to sell their home, instead of banks that had to foreclose on a defaulted borrower.

Not only are the homes that are currently listed of higher value, but as the economy recovers, more prospective buyers are returning to the market. That increased demand will drive prices even higher, as bidding wars and competing offers will become the norm. Right now, Chicago is experiencing the early stages of this, with homes selling much quicker than in years past.

How much faster?

Out of the sales that closed in March, each property was on the market for an average of 70 days before selling. Compare that to a 93 day average in March 2012. However, there were only 7,813 properties for sale within the city limits in March. That's down from 14,358 during the same month of the previous year.

So, what does all of this mean?

Simple economics provide the answer. There are fewer homes for sale in Chicago now than there were a year ago. However, there are more buyers interested in purchasing a home in Chicago now than there were a year ago. That increased demand and smaller supply means it's a seller's market. That means homeowners can list their properties at much higher prices because they know buyers will be willing to pay it!

Further proof of this seller’s market lies in how quickly homes are selling in Chicago. Clearly, people want to buy homes now, and are aiming to do so while interest rates remain low. The only speed bump that the market might encounter in upcoming months is one that other cities around the country are dealing with now – where foreign investors come in and make cash-only purchases and outbid “traditional” buyers.

But here in Chicago, we'll cross that bridge when we get to it! For now, everyone here should just be excited that Chicago's real estate industry is headed in the right direction.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Ins and Outs of VA Loans

daniel@realtypin.com Daniel Torelli — Tue, 07 May 2013 20:11:47 GMT

If you are Active or Retired Military and considering purchasing a home, one type of financing you should look into is the Veterans Affairs loans (or “VA loans”), which can be issued by qualified lenders. This type of loan is intended for American veterans, or their surviving spouses, to help them purchase a home or provide a second mortgage.

This type of loan has much better benefits than traditional loans. Many times, the loan amounts are much higher than that person would normally qualify for with a Fannie Mae or conforming loan. With a VA Loan, the monthly payment can be close to half of the person’s monthly income, instead of the typical quarter of the monthly income. Furthermore, these types of loans usually not require any down payment or a limited down payment to qualify.

How do you know if you’re eligible?

These loans are intended for American veterans who meet a minimum time of completed service. The VA doesn’t specifically require a minimum credit score to pre-qualify for a VA loan. However, most lenders do require a minimum credit score, regardless of the veteran’s status.

What about purchase loans and cash-out refinancing?

You’ll usually see these terms mentioned alongside VA loans, so let’s go over each one…

A purchase loan is a loan offered to veteran that doesn’t require mortgage insurance or a down payment. With the cash-out refinancing option, a veteran can take equity out of their home for certain things – like paying for their children’s college tuition, home renovations, or paying off debts. To qualify for these types of loans, the veteran must have an appropriate credit score, as well as proof of sufficient income.

What about an interest rate reduction refinance loan?

You’ll also see this type of loan talked about in conjunction with VA loans. The interest rate reduction refinance loan is open to Veterans with a current VA loan. It allows them to refinance and receive a lower rate (if they’re eligible). This type of loan can only be applied against a current VA Loan on the original property that the loan was provided to finance.

So, what’s a Native American direct loan?

If you’re a Native American veteran, you’ll hear buzz about this option, too. This type of loan is for Native American veterans to purchase or build on Federal Trust Land. This type of loan can also be used to get a better rate on a current VA Loan. To qualify, you must be a Native American Veteran serving a minimum amount of time in the military. Furthermore, your tribe must be a participant in the program.

What are adapted housing grants?

This type of loan is provided to Veterans who need to make changes to their current home or to purchase a home with specific needs related to a disability. These types of loans can be used for things like wheelchair ramps or other improvements to aid in the living of a veteran who has suffered a disability. To be eligible for this type of loan, you must have had sustained a permanent or a certain total disability that is directly correlated to your military service.

If you are active or retired military and are thinking about purchasing your first home or refinancing your current home, your first stop should be to a VA loan calculator to find out if you qualify for these loans. In the end, you could wind up with a much more affordable mortgage!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Safest Ways to Renovate Your Home

daniel@realtypin.com Daniel Torelli — Tue, 07 May 2013 19:52:11 GMT

Lots of homeowners believe that if they hire a contractor to perform their renovations, they don’t have to worry about safety. But that’s definitely not the case!

Unfortunately, a lot of contractors aren’t even registered, and many others take little concern for the safety of your home or your family. So, before you begin any renovation project, be sure to take advantage of these 5 tips so that your renovation is a safe one:

1. Call references

Don’t EVER have a contractor begin work on your home before checking out their references. Not only does this ensure that their past customers are happy with this work, it also ensures that there haven’t been safety issues in the past that could be indicative of safety issues in the future. If possible, go to a completed site so that you can see the contractor’s work in person.

2. Check the BBB

The Better Business Bureau exists to provide ratings of local businesses so that there is no guesswork when you have to hire people like contractors. Most contractors will broadcast their BBB rating loud and clear on their website and other marketing materials assuming it’s good. However, just because they don’t market the rating doesn’t necessarily mean they have a poor one. To get the real story, check with the BBB’s website before you hire anyone.

3. Compare costs

Get at least three different bids for your renovation project before you hire a contractor. Although it may be tempting to automatically go with the cheapest one, keep in mind that there could be safety concerns if a bid is significantly cheaper than the other two. If one bid is much different than the other two, find out why.

4. Verify insurance coverage

Before a contractor begins work at your home, make sure that he is fully insured against anything that may happen to one of his workers on your job site. The last thing you want is for someone to get injured while working on your home – with you liable for that injury!

5. Check licensing

The ROC (or, “Registry of Contractors”) exists to ensure that contractors are properly licensed and credible to perform renovations at your home. Similar to the BBB rating, contractors want to show off their licensing so that everyone knows they’re credible. Some states even require businesses to list their ROC license number on every piece of marketing materials that they distribute.

Before starting any project, double check their ROC listing to make sure that it’s legitimate and that the company is reputable.

Although sometimes accidents are unavoidable, these steps are a proactive way to protect against the worst. If you want your renovations to be a dream come true, only hire contractors who take safety very seriously. Their main focus should be to keep anyone involved in the renovations safe, and to ensure they build you a safe addition or renovation that could never possibly put you and your family in any risk.

Yes, it may be tempting to skip this process or to ignore one or two of the tips, it’s just not worth the safety risks at the end of the day!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 6 Ways to Research a Neighborhood

daniel@realtypin.com Daniel Torelli — Mon, 06 May 2013 21:27:18 GMT

Wouldn’t it be great if the person you were buying your new home from let you know about all the major problems with the neighborhood around it – even before you even made an offer?!

In a perfect world, you would learn all about the dirty secrets of your future neighborhood before you decided to invest in a home there. But unfortunately, most states’ disclosure laws don’t cover the ins and outs of the neighborhood. That means you’ve got to do a little homework before you buy. After all, you’re buying the neighborhood, too!

So, how do you find out what the inside scoop is?

Here are our top 6 tips:

1. Check the sex offender registry

One of the first things you should do before making an offer on a home is to check the sex offender registry. That way, you’ll know if there are any sex offenders living in the neighborhood. NSOPW.gov is a great resource for finding out how many sex offenders – and what level they are – living in any neighborhood.

2. Case the neighborhood

This may sound like something out of a movie, but it’s important to do!

Most people make the mistake of only looking at a neighborhood during the day, and they forget to drive through at night. Most neighborhoods look quiet and peaceful in the light of day, especially if you go during the week, when everyone is off at work or school. But if you swing by at night, you may discover that it’s a whole different story!

So, check out your potential neighborhood at a few different times of day and night so that there are no surprises after you move in. Better to find out what really goes on now, before it’s too late.

3. Check for indicators

There are usually indicators that the neighborhood is unsavory just by taking a closer look. Major indicators are unkempt lawns, homes with frequent visitors, and people lingering on the street corners. It’s not just dangerous neighbors you should worry about, though. Look for other annoyances as well – such as train tracks near your house, or commercial buildings that may flash fluorescent lights right into your home while you’re trying to get your beauty sleep.

4. Look at the other homes

Even if your potential home looks great, you need to take a close look at the surrounding homes. Their condition will tell you a lot about the neighborhood! Keep an eye out for empty lots, foreclosures, or an abundance of “For Sale” signs. If everyone is trying to get out, then it’s probably not the place you want to get into!

5. Find out about the school systems

Even if you don’t have children, finding out about the school system is a good way to find out about the neighborhood. Talk to other parents or look up the local schools online to see how they rate compared to other districts. A good school system typically is a good indicator of a good neighborhood.

6. Check your commute

One mistake lots of people make – especially in big cities – is not checking their soon-to-be commute during peak traffic times. Unfortunately, just because you are moving closer in proximity doesn’t mean that you are improving your commute time. Drive around the neighborhood during these peak times to make sure that traffic isn’t a whole lot heavier than you anticipate.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Even Appraisers Are Confident in Nation’s Housing Market

daniel@realtypin.com Daniel Torelli — Mon, 06 May 2013 20:16:58 GMT

Sometimes, the most frustrating part of the entire home buying and selling process is the appraisal!

If the appraiser estimates that the house is less worth than the listing price, the lender may tell the borrower that they've decided to reduce the amount of money they're willing to lend out towards the home purchase. If the appraisal comes back higher than expected, the seller may get upset because they realize they could have sold the home for a lot more money. For these reasons, appraisers often get a bad reputation among buyers and sellers, but the truth of the matter is that they are an important part of the home buying process.

We already know that buyers, sellers, realtors, economists, and other experts will tell you that they believe the housing market is recovering, but what about appraisers? What do they think?

Well, according to a recent study conducted by the United States Appraisals organization, more than half of those polled are “mildly encouraged” by the current housing market. When asked about their current level of confidence in the housing market, 54.7% of the appraisers who were surveyed answered “mildly” or “moderately strong”, and only 2.49% answered “neutral”.

Their answers were slightly more encouraging when the appraisers were asked the same question about home values. About half of those who responded (42.6%) said they've seen a mild increase in values in their area, 15.6% were seeing a moderate value increase, and 24% were neutral.

What do these numbers mean? Who better to ask than the director of the organization who conducted the survey!

When asked about the survey's findings, United States Appraisals President Aaron Fowler told National Mortgage Professional Magazine, “Appraisers tend to be realistic, focused on their local markets and unmoved by news stories and national numbers. We believe they provide a good gauge of the status of the housing market. After the last few years, a mildly strong level of confidence shows some definite improvement in appraiser attitudes.”

One reason for the improved attitudes might be an increase in workload. Now that home sales are up, appraisers are receiving more calls from customers for their services. According to the survey, 26.1% of respondents saw mild increases, 17.8% have experienced moderate increases, and 18.5% reported significant volume increases. Experts say the number of home sales will continue to rise in the months to come, so appraisers should continue to be in high demand.

Busier work schedules and bank accounts should increase appraisers’ confidence in the entire market as the year progresses. But Fowler says the improved attitudes really show on a zip code by zip code basis. The survey also included a section where the respondents could write out how they feel about the current housing climate in their local area, and the responses varied from “Significantly more activity at middle and upper end of the value range and the supply of existing housing is down significantly as well” to “I feel this could be a false increase in values and could be repeating history for our market area.”

So what does it all mean?

Certainly, individual appraisers are only concerned with their local markets, as they should be, but when you look at their responses as a whole it's easier to get the big picture. For the most part, appraisers around the country agree that the housing market is showing signs of recovery, but they are cautiously optimistic about the future. They don’t want to be premature with their excitement, but they’re definitely getting more excited!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How to Start a Bidding War for Your Home

daniel@realtypin.com Daniel Torelli — Sun, 05 May 2013 19:31:48 GMT

As we start to see the housing market recover, people are watching bidding wars becoming a common occurrence. Since the supply of homes for sale is so much smaller than the demand for homes, this trend is increasing by the day. Right now, many people have to get into a bidding war just to find a property! In some cities, such as Boston, there are so few homes for sale that people are becoming incredibly frustrated just starting out the home buying process!

Even if you don’t live in the cities where the supply is so low that a bidding war is inevitable, you can still create a bidding war for your home if you plan things out just right.

Here’s how:

- Price your home to sell

Although pricing your home lower than what you really want for it can be scary, it’s the best way to start a bidding war for your home. You want to make sure your house is priced competitive for the market. If you start too low, then people will think that something is wrong with your home, but if you go too high, the chances of starting a bidding war are slim. Pick a price that is competitive, but slightly lower than the rest of the market to gain a lot of interest for your home.

- Further your online presence

Having an online presence is essential to starting a bidding war for your home. After all, the more people that know about your home, the higher your chances of having people that will want to buy it! Almost all of the homes for sale today have some sort of web presence, but you need to go one step further by creating a website just for your house. It’s possible to get a free site and most are now so user friendly that you don’t even have to be particularly tech-savvy to create it.

When people are searching for their next home, they will spend hours scouring the ‘net. By providing a website and linking it to a realty page, you give a potential buyer more to look at than a standard listing, which could lead to a lot more interest in your home.

- Stage your house

If you want to start a bidding war, don’t skimp on the staging. By staging a home, you provide a better visual of the capabilities of your home. People see the home nicely decorated and can imagine themselves living there.

Luckily, it doesn’t have to cost a fortune to stage your home. Rent furniture instead of buying it, and you can save a lot of money. If you do have extra budget to stage your home, enlist the help of an expert, who knows exactly what to do to make your house really shine.

- Stack your showings

Another great way to start a bidding war is to stack your showings. In other words, when you have showings, make sure they are set up to be back-to-back. That way, potential buyers will likely run into each other. If people see that other interest in the house, they may be more inclined to make an offer on the spot, which could hopefully create a bidding war for you!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

New York's Housing Market Making Strides

daniel@realtypin.com Daniel Torelli — Sat, 04 May 2013 18:47:45 GMT

It's common knowledge that New York City's real estate industry has been surging in recent months, but the Big Apple isn't the only part of the Empire State where the housing market is showing signs of recovery. Across the entire state, realtors are reporting that completed and ongoing transactions (meaning closings and pending sales) are on the rise, while the number of homes currently listed for sale continues to dive.

In fact, according to a report released last week by the New York State Association of Realtors (NYSAR), inventory is currently at its lowest point since January 2006. The number of homes for sale dropped off 20% during the first quarter of the year, according to the report.

Apparently, though, that doesn’t matter!

New York’s closed sales were 2% higher during the first three months of 2013 when compared to the same time frame last year. Pending sales also spiked between January and March, increasing 11.5% to a total of 24,843 statewide.

Making things even better, economists expect even better numbers for the second quarter of the year, since the spring is usually the busiest season for the housing industry, and realtors seem to agree. They say they anticipate home sales figures to keep growing, as that happens, the median sales price will also increase. After all, it's already started to happen.

“It’s simple economics at work in the statewide housing market. As buyer demand increased and the housing supply decreased in the 2013 first quarter, the result was a nearly 4% growth in the statewide median sales price compared to the 2012 first quarter,” said Duncan MacKenzie, the NYSAR CEO in a statement that accompanied the report.

The median sales price for the first quarter of 2013 was $218,000, which is a 3.8% increase from this same time frame a year ago. In March alone, the median sales price rose to $220,000, which was 5.8% higher than it was during the same month last year.

Perhaps the most encouraging news for the NYSAR, though, is that the housing recovery isn't occurring in one specific area, but instead, counties across the state are reporting similar numbers. From Rochester to Albany, Binghamton to Buffalo, the Hudson Valley to Manhattan, realtors are reporting that the number of home sales and home prices are up, even though inventory is down.

As consumer demand for homes continues to increase, look for even more good news for sellers, which of course, means a tough road ahead for buyers. Still, though, the number of buyers is expected to keep going up.

Why?

The economy continues to show signs of improvement, and as it does, more people will start to feel confident about their current financial state. When that happens, the number of prospective buyers looking to buy a home will increase. That trend is well underway, and buying a home in the state of New York should only get more competitive as more people start to test the waters.

If there is any relief in sight for buyers, it's that experts expect more homeowners who currently cannot afford to list their home to put them on the market as price rise. The extra inventory will help prices level off eventually, but for now, the home buying process in New York is similar to everywhere else – where the odds are good that you’re going to have to get into a bidding war in order to a buy a home!

While that may be frustrating for buyers, it's definitely a sign that the housing market is starting to return to normal!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Ways to Create a Relaxing Bedroom

daniel@realtypin.com Daniel Torelli — Fri, 03 May 2013 20:31:22 GMT

Your bedroom should be your oasis – a place where you can get away, relax, and de-stress. Unfortunately some people have so much in their bedrooms that’s it’s impossible to relax and unwind in there!

If your bedroom doesn’t currently fulfill your R&R needs, there are ways to make your bedroom more relaxing – without taking on a major renovation project. Just follow these top 4 tips to create a relaxing bedroom:

1. Pick the right colors

If you want your bedroom to be a relaxing place for you and/or your significant, other avoid loud or really bright colors. Red, for example, has been known to increase hunger and aggression, which is the complete opposite of what you need in a relaxing bedroom!

So, which colors WILL work?

Blues and Greens are great colors that support relaxation. Most designers and psychologists agree that greens and blues calm the nerves. Even Hollywood has gotten in on this color scheme. The famous “Green Room” was specifically made that way to calm actors and actresses down before they have to perform. So, stick to these colors to create a relaxing bedroom!

2. Stock up on relaxing essentials

Make sure you have the right “extras” to create a relaxing environment for your bedroom. A big plush robe should always be on hand, as well as some cozy pajamas. Soft blankets also add to the relaxation factor. And, don’t forget to get some eye masks to get block out the light so that you get a better night’s sleep.

One thing that you may want to remove from your bedroom is the television. Although you may enjoy relaxing and watching some TV before you go to sleep, it’s better to watch it in another room so that you can keep your bedroom for reading and sleeping. In fact, if you share your bedroom with a significant other and watch TV all the time, you could be hindering their relaxation!

3. Don’t skimp on your bed

People underestimate the capabilities of a good night’s sleep. To get that necessary eight hours that experts encourage, it all starts with the right mattress. If your mattress is getting worn down, it’s time to get a new one. A mattress is one area where you shouldn’t cut costs! Opt for a high-quality mattress, and your back will thank you.

Also, be sure to invest in good pillows to make sure you don’t wake up with sore neck. You should also spend a little more and invest in high thread count sheets. For an added touch of luxury, go for Egyptian Cotton sheets to make your bed even more plush and relaxing.

4. Set the mood

Remove anything from around your bed that doesn’t completely relax you. By setting the room, you make your bedroom a place of relaxation, instead of a place that can cause more stress. Remove your house phone from your bedroom, so you can go there to relax and not worry about after-hour calls. Take away any other distractions, and keep a good book by your bed to ensure you can always be relaxed and in the perfect mood in your sanctuary!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Things You Need to Do Before Your Home Gets Inspected

daniel@realtypin.com Daniel Torelli — Fri, 03 May 2013 13:28:05 GMT

Many people make the mistake of thinking they are all set once they accept an offer on their home. But if you assume that you are free and clear – and that the inspection is just a formality – think again! There are many things that can go wrong during a home inspection that can create issues for the closing of your home.

So, how do you avoid inspection problems?

The best thing you can do is to make things easy on the home inspector. If you want to make things as easy as possible, you’ve got to do these 5 things:

1. Get out of the house

This may seem like common sense, but many home inspectors describe instances where they arrive at a house, and the homeowners are still in their PJ’s – leading to an awkward situation for everyone. Most inspectors arrive at least 30 minutes before the scheduled time to set up. This means that you should leave at least an hour beforehand (and take the kids and pets with you!) to ensure you stay completely out of the inspector’s way.

2. Don’t try to conceal defects

If there is a defect in your home, the home inspector is going to find it. Besides the fact that trying to cover it up is completely dishonest, it also makes the inspector suspicious of your home in general. Don’t waste everyone’s time by trying to hide something. Or, better yet, make sure your house is completely up to code before the offer is finalized!

3. Make all rooms easily accessible

The inspector doesn’t want to have to move a large chest or a book shelf to get to any of the rooms in your house. Make sure all doors are easily accessible for the home inspector so that he can get through your home quickly and efficiently. And don’t forget about the attic and any crawl spaces! Make sure these areas are not only easily accessible, but safe to be in as well.

4. Replace all of your light bulbs

Although having working light bulbs is not a necessity, it can prevent the inspector from mistakenly assuming that the fixture doesn’t work, instead of having a burnt out light bulb. Check to make sure your light bulbs (and fixtures, for that matter) are working before the day of the inspection to avoid any issues.

5. Empty the washer and dryer

An inspector has to test these appliances to ensure they work properly. However, the last thing the inspector wants to do is handle your clean – or even worse, your dirty – laundry to inspect these appliances. Take the time to empty both the washer and dryer and clean out the laundry room as well so the inspector has room to do his or her duty. (The inspector has to test all of your appliances, not just the washer and dryer, so spend some time emptying out your dishwasher, as well.)

Although these tips don’t guarantee a perfect inspection, you are making someone else’s life easier, and ensure the inspection process goes quickly and smoothly. That way, you’ll be one step closer to closing the sale!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Can Buying a Home Improve Your Romantic Relationship?

daniel@realtypin.com Daniel Torelli — Fri, 03 May 2013 13:10:53 GMT

You’ve probably heard about a slew of benefits that come with buying a home – but did you know that buying a home can also improve your romantic relationship?

A recent survey indicates that 80% of married couples believe that purchasing a home together was a positive milestone in their relationship. In fact, more than 90% of the married couples surveyed said they wish they hadn’t waited so long to do it!

What’s the link between homeownership and a better relationship?

Purchasing a home is not only a great investment into the future, it also symbolizes a lot of things for couples. Owning your own home is the American dream, and having someone you love to share that accomplishment with makes it all the more better. Owning your home also symbolizes a form of stability, and those feelings become even more intense when it’s done with a significant other.

Of course, actually getting there can be tough! Purchasing a new home – especially if it’s your first – can be a scary and stressful time. Couples get comfortable renting and don’t really want to add the financial strain or stress that purchasing a home can have, so many of them put it off. But once they actually get through it, most couples realize they shouldn’t have put it off.

However, don’t make the mistake of thinking that purchasing a home together is the way to save a failing relationship!

This proves to be especially true if you are not married. There has been an increase of couples purchasing homes together before they tie the knot. The lines get blurry in these situations should the couple terminate their relationship. Buying a home is an important and exciting milestone, but it’s very unlikely that this purchase can save a relationship that is already in turmoil. And, it will cause even more problems when the relationship inevitably ends.

Even if your relationship is stable, purchasing a home isn’t necessarily always beneficial for relationships. Although it can help ignite a romantic relationship, it can also hurt your relationship if you aren’t careful. Buying a home can add a great amount of stress to the relationship if the home adds financial stress to the homeowners. You can avoid these situations by setting a realistic budget and sticking to it. If you go overboard – and end up with a home you can’t afford – you’re asking for trouble!

The actual purchase can also be difficult, because people have different wants and needs for their home – and those wants or needs may clash with your significant other’s. So, before setting out on your home search, come up with a wish list that both of you can live with. By figuring out your necessities and your expectations for the home ahead of time, your house hunt can go as smoothly as possible with limited surprises.

Once you officially become a homeowner, there’s another hurdle you have to cross before you get to homeowner-bliss – the renovations. These can also put both financial strain and stress on relationships. Although fixing up a house together may seem like a fun project (and for many people actually is), it can also build up a lot of stress in your relationship. If you want to make things easier on yourself, be realistic about renovations, and don’t jump right into buying a fixer-upper. What may begin as a few fun projects could turn into a lot of headaches and stress that could damage a relationship.

But if you can get over these hurdles, the satisfaction that comes with homeownership can be a big bond for your relationship!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Are Mortgage Rate Predictions Worth?

daniel@realtypin.com Daniel Torelli — Fri, 03 May 2013 11:51:09 GMT

Mortgage interest rates remain near all-time lows, but have slightly increased in recent months. That's in line with what many experts within the lending industry have been predicting since the beginning of the year. Specifically, they predicted that rates would rise slowly throughout the year, eventually rising above 4%.

Some predictions have been more optimistic than others.

For example, just last month, analysts from the Mortgage Bankers Association predicted that the average interest rate for a 30-year, conventional, fixed-rate mortgage would rise to 4.1% by the end of this year, and would be as high as 4.5% for most of 2014.

At first, it seemed these predictions would be accurate. On New Year’s Day, the average rate was 3.34%, according to a weekly market survey conducted by Freddie Mac. The benchmark rate rose to 3.53% by the end of January, hovered for awhile, then jumped again to 3.56% in late February, before rising to 3.63% in mid-March.

All of this would indicate that the experts predictions were correct, but then something unexpected happened.

Starting on March 28^th, the benchmark mortgage interest rate dropped for four consecutive weeks, falling from 3.57% to 3.41%. None of the experts predicted a drop-off, so how much should you value their opinions?

Only time will tell, but one thing is for certain – everyone in the mortgage industry is eagerly awaiting the latest survey findings from Freddie Mac.

Borrowers should pay close attention to these survey results, too. If you're in the market to buy a home or refinance the loan on your current home, the interest rate should definitely be something that you keep an eye on! After all, interest rates are one of the big things that determine your monthly payment amount, so even a little fluctuation – either up or down – can change how much you owe the bank. And, once you're locked into a rate, it's set in stone for the life of the loan unless you refinance down the road.

While a slight fluctuation isn't going to save you (or cost you) thousands of dollars each month, it can certainly have that affect over the duration of the loan! For example, getting a loan at 3.5% will save you a lot of money compared to a mortgage with a 3.7% interest rate.

So, what can you expect next?

The upcoming Freddie Mac survey findings will reveal if the recent drop-offs were just a temporary fluctuation on the road to higher rates, if they'll hover at the current level, or if rates will sink lower in the weeks to come.

Just remember – average mortgage rates can be very helpful to prospective buyers trying to obtain a home loan, but you should always keep in mind that your specific situation is unique. A lender will determine the rate they're willing to offer you based on your individual qualifications – like your credit score, the amount of debt you have, the size of your down payment, and income level – to determine the rate they'll assign your loan. In other words, benchmark rates are exactly what their name indicates – an average!

Averages are helpful because they allow you to see what other borrowers are receiving. That way, you’ll have some information that you can use to try and negotiate with your lender. So, it's going to be interesting to see how mortgage rates change in the coming weeks – and to see if the experts were correct or incorrect with their predictions!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Homeowners are Motivated to Tackle Renovations

daniel@realtypin.com Daniel Torelli — Wed, 01 May 2013 08:33:57 GMT

Whether it is from the improving economy, the improvement in the housing market, or a chance to finally spend some money after the doom and gloom of the recession, more people are starting to tackle home renovation projects. In fact, a recent survey found that nearly one-third of American homeowners are ready and willing to start tackling home renovation projects – and that the Spring is the prime time to begin.

Home improvement stores have stocked up and are eagerly waiting for the influx of homeowners tackling projects this spring.

According to Jackie Warrick at CouponCabin.com, “Many homeowners have held off on home improvements over the past few years, but are cautiously making changes as the economy strengthens. No matter the size of the job, home renovations can be costly. It’s important for homeowners to carefully approach projects and choose to do renovations that are most likely to raise the value of their home overall.”

What Warrick and other experts are warning against is the temptation to go overboard. Because homeowners have waited so long to make these improvements, they may get a sense of “cabin fever” and rush out to do a ton of different projects. So, keep everything in perspective, and make sure you’re being smart about the money you’re putting into your home!

However, some homeowners have seen an improvement in the overall economy, so they’ve decided to tackle huge renovations – like an updated kitchen or a new master suite with a brand new bathroom and extras for the bedroom.

Not all homeowners are dumping loads of cash into their homes, though. Many homeowners are starting small, being cautious about how they put money into their home. In fact, the majority of home renovations this Spring are estimated to be less than $1,000!

What are some of the most popular inexpensive projects?

New carpet and new paint are popular with homeowners this Spring. Both will make your home feel newer and fresher, without taking up a lot of time or money.

Many renovations can add significant value to your home, while others may just be indulgent. So, before you start out on any home renovation project, decide on a realistic budget and consider the intentions of the renovation. If you are making renovations with the specific intention to sell, find out exactly how much value you will be adding to your house and if the renovations are really worth it.

Although most renovations do have a great return on investment, there is a limit out of how much you can get on the return. If you are too indulgent with your renovations, people won’t be willing to pay for all of the upgrades, and you may make your house too expensive for the neighborhood!

That’s not to say that you shouldn’t make your home exactly how you want it, though. If you have the money to make renovations, and they will make you love your home that much more, go ahead and create the home of your dreams. Just remember – it’s always important to keep in mind that you probably won’t stay in the same home forever, so you can’t always expect a return on investment for every renovation that you do. This is especially true if the renovation is something personal to you and your family and not a renovation every future buyer will appreciate.

But no matter which projects you decide to tackle, it looks like you’ll have plenty of company at your local home improvement store!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

It’s a Strong Spring for Southern California Home Sales

daniel@realtypin.com Daniel Torelli — Wed, 01 May 2013 07:36:16 GMT

We’re finally getting a steady influx of positive news in the housing market. This spring season – typically the best time of year for the housing market – has brought gains in both the number of sales and selling prices throughout Southern California. It’s a welcome relief after many years of poor sales and deep price cuts, and now, Southern California’s housing market finally seems to be heading in the right direction!

The median home price for the Southern California region was up 8% in March and actually increased 23% when compared to this time last year. In fact, the current selling prices are the highest Southern California has seen since the housing market crashed back in 2008!

What’s most likely causing this increase in prices is a lack of inventory in the area. Despite recent gains, many Southern California homeowners are still hesitant to put their homes on the market because of how far home values dropped during the recession. People want to hold off on selling their homes, because even though sale prices are significantly higher than in the past few years, they still much lower than they were at their peak (when many of those homeowners bought their homes!). Right now, many people want to see if the prices will go up further before they put their homes on the market.

However, that has led to a small supply of homes for sale. When you combine it with the high buyer demand that Southern California is currently experiencing, the prices go up! (Even the homeowners who are “brave” enough to list their homes aren’t enough to meet the strong demand.)

But we’re not finished with the good news yet!

Foreclosures only accounted for 13.9% of Southern California’s home sales last month, which is less than half the rate we saw this time a year ago. In fact, during the height of the recession, foreclosures accounted for nearly 60% of this area’s home sales! But now that those foreclosures have been cleared out, the local housing market can focus squarely on recovery.

Want more evidence that the Spring season is starting to turn things around? Just take a look at all of the investors that have invaded Southern California! Investors are seeing these positive signs, and they are taking advantage of the opportunities to make a profit.

The Spring season is usually always the best time of year for the housing market (not just in Southern California, but everywhere!), but the gains are even stronger this year than they’ve been over the past few years. Low interest rates, obvious investment opportunities, higher prices, and a strengthening overall economy have all led to a strong Spring season in Southern California.

But the recovery isn’t just being seen in “average” homes. Million-dollar homes are flying off the market, too!

The only thing holding Southern California’s market back right now is the lack of inventory. However, that should start to increase as people realize that homes are selling for much more than they were over the past few years – meaning we should continue to see growth for the foreseeable future.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 3 Things You Need to Know About Today's Mortgage Rates

daniel@realtypin.com Daniel Torelli — Tue, 30 Apr 2013 14:16:46 GMT

New statistics released by one of the nation's most well-known lenders show that mortgage rates are continuing to sink closer to all-time record lows, which is good news for anyone looking to purchase a home or refinance their existing mortgage.

The government-backed finance company Freddie Mac reported last week that on average, lenders are offering 30-year, fixed-rate loans to qualified borrowers at a 3.41% interest rate. That average is down from 3.43% two weeks ago, and it is the lowest rate their survey has recorded in the last three months. For comparison’s sake, the rate bottomed out last November, when it hit 3.31%.

The story is the same for 15-year, fixed-rate mortgages. The average interest rate on these loans fell to 2.64% last week, which is down slightly from the 2.65% average the week before.

So what does this mean for the housing market – and more specifically, anyone trying to obtain a new or refinanced mortgage?

There are 3 things you need to know about today's mortgage rates if you're considering buying a home or refinancing your existing home loan:

1. There's money available

You may hear some people say that banks aren't lending money these days. However, that's only partially true! They are no longer lending money to borrowers who cannot afford to pay them back, but if you can prove you have the means to make a mortgage payment every month, you can find home financing from a lender.

The survey conducted by Freddie Mac is compiled from information they received directly from lenders, so you can count on it to be trustworthy. Each week, Freddie Mac asks lenders what rates they are offering qualified borrowers who meet credit score guidelines, can provide at least a 20% down payment on the home, and have a proven financial track record showing they can afford to make monthly mortgage payments.

This is important to remember because it means that the Freddie Mac survey only includes loan offers to qualified borrowers. So, if you don't meet a lender's guidelines, they'll deny your loan application – but if you meet the above criteria, you can use the Freddie Mac survey averages as a bargaining chip when meeting with the bank. Although rates vary from lender to lender, they are generally the same across the country, so knowing the national average will help you in the negotiation process.

2. A lack of consumer spending is keeping rates low

When the economy is thriving, banks want some of the financial benefits, too, so they tend to raise rates once signs of an economic recovery exist. Recent consumer spending statistics show that although the nation’s economy is starting to recover, people aren't in any rush to spend their hard-earned money yet.

In fact, retail sales dropped in March for the second time in the last three months, and a University of Michigan Consumer Sentiment Index that measures consumer confidence in the economy fell to its lowest level since last July. As long as consumer spending remains low, so will inflation, and the Federal Reserve has pledged to keep purchasing mortgage-backed securities as long as inflation stays below a certain percentage.

3. Gas prices should help consumer spending, but not raise interest rates

One expense that every consumer must pay for – but has no control over – is the price of gasoline. Gas prices recently dropped, so with consumers having to pay less at the pump, economists at Freddie Mac assume they'll spend more in retail stores. If that happens, consumer spending would increase, but not to the level that it will affect interest rates.

Bottom line – Freddie Mac's financial experts say that now is the time to refinance or apply for a home loan because rates are low, and they should remain that way for the next several months.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Should You Pay Down Your Mortgage or Refinance?

daniel@realtypin.com Daniel Torelli — Tue, 30 Apr 2013 13:53:44 GMT

Everyone in America lived through the housing crisis. Even if you didn't lose your home due to foreclosure, chances are you know someone who did!

Those millions of foreclosures have changed the way we think about homeownership, and now that the economy is beginning to recover, many homeowners are trying to pay off their mortgages as quickly as possible. After all, it’s the easiest way to ensure you won't lose your home if another recession hits.

But is that really the right thing to do?

You could also refinance and take advantage of a lower interest rate. Maybe THAT’S the best way to keep your mortgage manageable!

So, which option should you choose?

First let's discuss the option of just paying more each month. If you can simply afford to pay a little more, the savings can be huge! So, head to a mortgage calculator to find out exactly how much you can save by adding more money to your monthly mortgage payment. Just enter whatever amount you to want to add to your payment (let's say, $100) and the mortgage calculator will show you how your new payment amount reduces your interest and shortens the length of the loan.

If you can't afford to make a substantial increase to your monthly payment, go the easy route and just round up from your current amount. For example, if you have a payment of $754 a month, and you pay $760 instead, you can shorten the length of the loan with just $6 a month! In fact, that $6 on a $200,000, 30-year loan can save you four payments at the end!

If you decide to go this route, there are a couple of things you need to make sure are happening with your money. First, you need to ensure that the extra money is being applied to the principle balance, and not just being set aside towards next month's payment. Remember, the only way to reduce the length of the loan is to pay down the principle. That will cut down on the interest you have to pay. If the money is just going towards next month's payment, it's not helping you out in the long term.

Also, read your contract to make sure that your lender doesn't charge pre-payment penalties. If they do, don’t pay anything extra. Instead, try to refinance.

After all, mortgage rates continue to hover near all-time record lows, and economists say they should stay under 4% for the rest of the year. So, if you're going to refinance, the time to do it is now.

Refinances are generally available for 10, 15, or 20 years. 15-year refinances are the most common, and although the payments are higher than a 20-year loan, they may actually be lower than what you're currently paying since interest rates are so low!

Let's say your current loan is a 30-year, fixed-rate mortgage for $200,000 at 5% interest. Your monthly payments are $1,074. If you refinanced for 15-years at 4%, your new payment would be $1,479. Yes, that’s an extra $400 each month, but over the life of the loan, you'd save $120,224 in interest payments!

So which option is right for you?

That's for you to ultimately decide, but we’ve noticed that more homeowners are opting to pay more towards each month instead of refinancing. That way, they don’t have to deal with the red tape that comes with refinancing (or the closing costs!), and they can control exactly how much more they pay each month.

Luckily, though, you can't go wrong either way. The most important thing to remember is that you should pursue one of these two options if you can afford to do so. You'll save so much money!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Listing Language Buyers Are Most Likely to Love

daniel@realtypin.com Daniel Torelli — Mon, 29 Apr 2013 08:54:01 GMT

A decade ago, just about every home listing you saw had certain keywords in it to attract the right attention. These words were typically “cute” descriptions with lots of adjectives – but that didn’t really have any tangible meaning.

That doesn’t work anymore!

It’s time to say goodbye to the cliché listing language that has been running rampant in home listings for years. It seems that buyers are finally tired of the euphemisms, and they just want the facts about the home. In the past, listings were set to evoke feelings from a buyer by using words such as “must-see” or “dream home”. However, in today’s market – where buyers want to get the most bang for their buck – buyers are tired of those flowery descriptions and even more tired of the euphemisms like “quaint” and “cozy” that don’t tell them anything specific.

So, what do you do if you’re selling your home? How do you create a listing that buyers are going to love?

Of course you want to highlight your home in the best way possible, but the best way to do that is to give the buyer the cold hard facts. That doesn’t mean you have to list your homes flaws, but buyers want to see listing language that truly explains the homes attributes – and what makes it unique from the other homes on the market.

For example, instead of saying your home is “modern”, explain exactly why it is. Talk about the hardwood floors and stainless steel appliances. That way, buyers will know exactly what your home has to offer, and if it meets their needs, they’ll schedule an in-person tour.

When you are considering listing language for your home, remember that your home’s geographical location makes a huge difference when it comes to the listing language and features that buyers want to see. Although buyers all over the country want to see listing language that’s descriptive, there are also certain buzzwords that work best in different parts of the country.

- If your home is on the West Coast…

Be sure to focus on your home’s views. People who live out west typically are within miles of something stunning – whether it’s the beach, the mountains, the desert, or wine country. Buyers here want to know that they can experience all of it right through their own windows!

- If your home is on the East Coast…

People here are searching for spacious homes with open floor plans. Having a great view also doesn’t hurt, but it’s not quite the necessity that it is on the west coast. In most cases, the layout is going to set you apart from other sellers.

- If your home is in the Midwest…

Focus on the layout inside and out! People here are searching for homes that offer a ranch-style design, with big family rooms and larger plots of land.

No matter where you’re trying to sell your home, just remember to use as many factual descriptions in your listing as you can. Stay away from all of the “overdone” terms if you want your listing to get special attention!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 3 Risks Today's Homebuyers Are Willing to Take

daniel@realtypin.com Daniel Torelli — Mon, 29 Apr 2013 08:00:38 GMT

Buying a home is a competitive undertaking these days, with more qualified buyers scouring the market than there are homes currently for sale. According to a recent survey that looked at 800 local markets, inventory levels are 16% lower than they were a year ago. In some cities, the number of listings are down double or even triple that percentage!

The lack of inventory has created bidding wars across the country, with some seller's agents reporting that their clients are receiving dozens – and in some cases hundreds – of competing bids. In an effort to get a leg up on the competition, some buyers have turned to risky tactics that can be beneficial in their bid to get the seller's attention, but that also come with some drawbacks.

Here are the top 3 risk that today's homebuyers are willing to take:

1. Contingency-free and contingency-light offers

The easiest way to get a seller's attention is for a buyer to strip away the contingencies, or protections, that are usually customary in an offer.

The most popular contingency being removed is the financing one. Most bids on a home say the offer is off the table if the buyer doesn't qualify for a loan or receive a satisfactory appraisal. But buyers who are certain that they will qualify – or aren't worried about paying the difference on a low-ball appraisal – are removing the financing and appraisal contingency to stand out among the competition. Sellers love this because it guarantees the buyer will stand behind their offer price, no matter what!

Other buyers are removing the inspection contingency. A standard home purchase is contingent on a licensed home inspector performing a full inspection of the home. But many buyers are saying they will buy the home as is. While this is beneficial to the seller (who won't have to pay for discovered damages), it's could be disaster for the buyer! Paying for a home and not knowing if you're going to have to invest thousands of dollars in repairs afterwards is risky business.

2. Escalation clauses

Escalation clauses essentially keep a buyer in the bidding even when the competing offers go higher than the initial asking price. They allow the potential buyer to match any competing bids, up until a certain amount.

For example, if the home was originally listed for $250,000, and Buyer #1 submitted an offer for $240,000 – but now Buyer #2 has come along and said they will buy the home for $255,000 – Buyer #1's escalation clause would give him the opportunity to match Buyer #2's offer. This helps the seller, because they know they will be able to sell the home to someone, for more money than they had hoped.

For a buyer with a lot of money, this isn't a problem. Where escalation clauses can backfire for a buyer is if they need a mortgage. Appraisals tend to come in lower than the purchase price, so a buyer may have difficulty finding a lender who will lend them more money than the home is estimated to be worth.

3. Bidding on low-ball listings

Some sellers, at the urging of their realtors, will list their home well below its actual value, knowing that a bidding war will ensue. The goal here is simple – they hope the competing bids will actually send the final purchase price well above the home's worth.

To illustrate how this works, let's say a home is worth $400,000 – but the seller lists it at $375,000, hoping that with competing bids, the winning offer will actually end up being $425,000. Some buyers have a keen eye for spotting a “bargain” and will bid on these homes, knowing that they were listed below market value. The danger here is that the buyer may end up purchasing the home at a price well above the home's actual value (using our example, the buyer would pay $25,000 more than the home is worth).

While all three of these tactics can work, they come with risks, so you need to beware before employing any of these strategies!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Can You Afford a Home in Houston?

daniel@realtypin.com Daniel Torelli — Sun, 28 Apr 2013 06:20:32 GMT

The housing market in Houston continues to thrive, as virtually every statistic used to determine the health of the real estate industry posted gains last month. But at the same time, salaries slid a bit during the first quarter of 2013, meaning even though the market is ripe for purchasing, not everyone in Houston can actually afford to purchase a home here!

According to the Houston Association of Realtors, the number of home sales increased for the 22nd consecutive month, the inventory continued to shrink, and home prices hit record highs in March.

Sales of all property types jumped 19.4% when compared to March 2012. Single-family home sales climbed 17% since March 2012.

Like many other metropolitan areas around the country, Houston currently has more people interested in purchasing a home than there are properties listed for sale. At the current sales pace, inventory of single-family homes is at 3.5 months, which is down 37.7% from a year ago and is the lowest it’s been since 1999. (For comparison, the national average is currently 4.7 months of supply.)

The lack of inventory has driven Houston’s home prices through the roof, as the median price for a single-family home reached $172,000 in March. That's 6.5% higher than the median price was in March 2012. The average price for a single-family home was also up last month, increasing 4.6% from a year ago. It now sits at $236,195.

The total dollar volume of all homes sold in Houston during the month of March was $1.58 billion, due in part to those price increases, but also because the number of sales is higher. The number of pending sales was up 6.5% when compared to the same month last year, meaning this housing market won’t be slowing down anytime soon!

Clearly, these statistics indicate that the Houston housing market is improving, but not everyone who wants in on the action can afford to do so.

On the same day that the Houston Association of Realtors released their monthly housing market figures, a report about salary growth and employee compensation came out showing that salaries were down in Houston after posting gains for four consecutive quarters. PayScale Inc., a Seattle-based company that tracks changes in compensation, reported last week that wages in Houston dipped 0.1% in the first quarter of 2013.

Why?

The report says a dropoff in pay within the energy-sector is mostly to blame, since the energy business is a dominant industry in Houston. Wages in the mining, oil, and gas industries in Houston also decreased during the first quarter of 2013 – falling 0.4% after posting several consecutive quarters of high growth.

So what does this mean, and how does it affect the local housing market?

For the overall health of the housing market, it could be a good thing, but anytime some of the major industries within a city have decreases in pay, it's reason for concern.

First, the salary dropoffs will temporarily help the market because people who have seen their paychecks shrink in recent months are less likely to go house hunting. That will reduce the number of prospective buyers in the market, and with less demand, home prices won't increase as quickly. That's good news for buyers, but not a welcome sign from homeowners looking to sell.

On the other hand, anytime companies cut back on their employees’ pay, those employees tend to cut back on their spending. That directly affects the local economy, which directly affects the local housing market.

So, it seems that the housing market in Houston is quickly becoming a case of the “Haves vs. the Have Nots”. Regardless, though, sellers who currently have their properties listed on the market will likely be pleased with the price that their home sells for in the months to come.

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Got Student Loan Debt? You're Less Likely to Buy a Home

daniel@realtypin.com Daniel Torelli — Sat, 27 Apr 2013 10:38:41 GMT

A new study by the Federal Reserve Bank of New York shows that members of America's younger workforce who have student loan debt are less likely to purchase a home than their co-workers who do not owe money for their education.

The results of the study, which were posted on a blog last week, also indicated that student-loan borrowers show higher risk and have lower credit scores than those without student loan debt.

The blog's authors, Meta Brown and Sydnee Caldwell, used a sample of data provided by Equifax, one of the three major credit reporting bureaus used in this country. What they found was that the share of 25-year-olds with student debt has increased from 25% in 2003 to 43% last year. So, not only do more Americans graduate from college with student loan debt these days, but they owe more!

How much more?

The average student loan balance among 25-year-olds grew 91% during the last 10 years, increasing from $10,649 in 2003 to $20,326 in 2012.

But perhaps the most stunning revelation from the study is that for the first time in at least 10 years, 30-year-olds with no history of student loans are more likely to have home-secured debt than those with a history of student loans. In other words, people without student loan debt are far more likely to get their mortgage loans approved and buy homes than those who owed or still owe money for their education.

While it shouldn't come as a shock to anyone that people with outstanding debt are less likely to take on new debt than those who are currently debt-free, it is an alarming trend to real estate analysts and economists. After all, college-educated consumers with steady incomes (and who are under the age of 30) usually make up a large percentage of first-time homebuyers, who play a crucial part in the housing market's recovery. If these individuals cannot afford to buy a home because they are still paying off their student loans – or are unable to get financing because they’ve failed to make their student loan payments – the housing market's ongoing recovery could be stalled.

In the past, higher education meant a better-paying job. People would go to college, even if they had to borrow the money to cover tuition, because they knew it would pay off in the long run. These borrowers knew that they faced student loan payments when they graduated, but were okay with that because once the student loans were paid off, they were more likely to be able to afford the finer things in life (like a home!), than someone without a college education.

These days, though, nothing is guaranteed. Someone who graduated high school and immediately went into the workforce and saved their money may be better prepared financially to purchase a home than a college-educated worker who has thousands of dollars of student loan debt. This is especially true if the college educated worker cannot find a job in their chosen career field and must work a low-paying job.

Economists say that may be the reason that so many student-loan borrowers have fallen behind in their payments.

According to the New York Fed's report, outstanding education debt is $966 billion, and almost one-third of borrowers were delinquent on their loans by the end of last year. This had led to more young people retreating from the housing and auto industries, and economists say the lack of young consumers purchasing homes or cars is dragging down the economy.

The only way the problem is going to be fixed is if the young borrowers with student loan debt find a way to pay it off, which will free up more of their income to put towards a home or car. Whether or not that happens depends on a lot of factors, but one thing is for certain – if you want to own your own home, pay off your student loans as soon as you can!

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The Top 3 Ways to Make Your Home Renovations Run Smoothly

daniel@realtypin.com Daniel Torelli — Fri, 26 Apr 2013 11:32:35 GMT

Home renovations are almost synonymous with Murphy’s Law. The old adage, “Everything that can go on will go wrong,” seems especially prevalent when you’re tackling home renovations. Whether you are doing the renovation yourself or you contract it out, problems seem to have a way of springing up. Sometimes you break down a wall to find a termite problem, or open up the ceiling to asbestos. Other times the contractor goes way over budget or takes months longer than he initially predicted.

Although some problems are unavoidable, there are ways to make your home renovations run smoothly, and following these 3 tips can help you do it:

1. Plan ahead

Although we love instant gratification, one of the worst mistakes you can make is rushing into a new home renovation project without properly planning. Take the time to really evaluate your space and what you’re trying to accomplish with it. Then, share your ideas with your own architect to ensure that it is suitable and realistic for your space.

If you are renovating a room that is a high traffic area, figure out how disruptive the renovation will be and plan around it. For example, if you take a yearly family vacation, you may want to try and time the heaviest renovations during the time you are away. Consider every scenario and discuss each one thoroughly with your contractor to minimize surprises and headaches.

Finally, keep in mind that issues can arise, so be sure to have a contingency plan for them as well. Make sure your contractor is well-connected with plumbers, landscapers, roofers, or any other type of specialist that may need to be hired in the event of a problem. By having a list of experts “on call”, you can make sure that emergencies don’t blow your timeline out of the water!

2. Be realistic about your budget

Chances are pretty good that something is going to come up that you didn’t budget for. It’s kind of an unwritten home renovation tradition! So, always add a little wiggle room when you give your budget to your contractor. That way, you’ll be covered if unforeseen costs arise in the middle of the project. If they don’t, you’ll have some extra money to tuck into your savings!

Once you have set your budget, work hard to avoid situations that might make you go overboard. For example, if you have a limited budget for your kitchen, avoid buying your appliances or decorative items at high-end stores. Even if you say you are just looking for fun, it’s always a disappointment seeing something you can’t afford, but really want.

Along the same lines, spend some extra time saving for your renovation. With the time and cost that renovations take, you want to make sure they’re done correctly the first time. Part of that means having the finances to make things look exactly how you want them, without constantly worrying about cash – or worse, having to cut corners during the renovation because you run out of money!

3. Encourage communication

Let the contractor know before they’re hired what kind of communication efforts you expect on their part. Most problems arise (in all walks of life!) from a lack of communication.

Once your contractor knows exactly how you want to be kept in the loop, hold him accountable if he falls short. Budget issues and other renovation problems can usually be avoided as long as you maintain open lines with your contractor and always know what is going on with the project.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Things Today’s Home Flippers Need to Know

daniel@realtypin.com Daniel Torelli — Fri, 26 Apr 2013 11:13:29 GMT

Flipping homes was a very lucrative business a few years ago, but then the trend became virtually extinct when the housing market crashed. Worse yet, many people had homes on their hands that they just couldn’t sell after pouring in the money to upgrade them with the intention of flipping them.

But now that the housing market is being revived, so is the practice of flipping homes. Before you dive in, though, there are 5 things you need to know. After all the practice is different today from years past!

1. Budget carefully

Before the housing bubble burst, it was easy to flip a house quickly and make a large profit. While the housing market continues to improve today, it’s unwise to pour money into a house and expect to sell it right away. It’s more important now to budget carefully and make every renovation count. If flipping homes is your only source of income, you may need to budget much more carefully, because it’s nearly impossible to flip a house quickly for a huge profit. Although there is quite a bit of money to be made flipping houses, it’s unrealistic to expect the same results and the same fast return that we saw before the bust.

2. Have cash ready

Before the crash, it wasn’t uncommon to be able to get a loan without having to even put any cash down at all. However, those days are over. If you plan on flipping homes – and will need financing to do it – you need to plan on putting a lot of cash down. Banks have dramatically tightened up their restrictions, and they’re asking for a lot more upfront.

Better yet, save up enough cash so that you can afford to buy homes outright, without a mortgage. Not only will this save you the hassle of going through a bank, but many times, you can get a better deal with a cash deal. After all, it makes you a lot more attractive to seller!

3. Find the right cities

There are a lot of opportunities for making money flipping homes, even though the housing market hasn’t yet fully recovered. However, that opportunity tends to be a lot higher in some cities.

Right now, the business seems to be especially lucrative in Richmond, Tucson and Charlotte, but beware, the selling prices of homes are public knowledge, so if there is opportunity in that city, chances are good other flippers will have already heard about it.

Above all else, look for cities where the market is improving quickly. For example, climbing prices and lots of buyer demand are good signs that you’ll have a “flipping audience” ready when you go to make a move.

4. Pick the right renovations

People are much more frugal these days than in years past and with good reason. Many homebuyers are interested more in necessities than luxuries. As a result, the return on investment for certain upgrades is not the same as it was before the economy crashed.

Today’s experts suggest spending about 25% of your expected sale price on upgrades and renovations. Spending more than that can be an unnecessary risk.

5. Don’t expect a quick flip

One of the biggest mistakes flippers can make is to assume they can flip their homes quickly. In the past, solid renovations weren’t as necessary to make a big profit, but in today’s market, a flipper needs to spend real time and energy to get the result he or she expects.

If you want to flip homes, do it the right way, by making real positive upgrades to the home and waiting for the market to make significant improvements. Although it may take a little more time, money, and energy than it did in years past, you should be able to see real financial results!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Will Bombings Affect Boston’s Housing Market?

daniel@realtypin.com Daniel Torelli — Thu, 25 Apr 2013 10:05:24 GMT

Although one suspect in the Boston Marathon Bombing is now dead and the other has been captured, the damage caused by those two individuals is far from over.

The lives of those who knew and loved the three people killed by the blast have been changed forever. Families and friends of the more than 170 people injured are concerned about their loved ones well-being, and it's impossible to measure the psychological toll that the bombing will have on the rest of the city of Boston, the state of Massachusetts, and the United States, in general.

Last Monday, two brothers set off homemade bombs near the finish line of the 117th running of the Boston Marathon. The attack was the worst bombing on U.S. soil since the terrorist attacks on September 11th, 2001. The attack shut down the city for the rest of the week, as local, state, and federal law enforcement officers and agents searched for the two suspects.

Not only did the bombing take away the innocence of one of Boston's most storied pastimes, but it will also have some long term effects as well. It's understandable that many Bostonians will now be fearful to attend or take part in events where large crowds are gathered, but what about the local economy, and more specifically, the housing market? What effect will the bombings have?

While it is true that no industry is immune to the damage of an attack of this stature, Boston's housing market does have some factors on its side that may prevent it from plunging.

Like what?

Boston's economy is more vibrant than other similar-sized cities, thanks in large part to the young and well-educated workforce that lives here. After all, Boston is home to large financial service corporations, more than 30 hospitals, and 50 colleges and universities. These things are associated with higher-than-average pay scales and job security. Although the short term ramifications of the attacks are still ongoing, once the city returns to normal, these higher-income Boston residents will still be able to afford a home if they are interested in purchasing one.

Also, since the bombers were caught fairly quickly, it is likely that the fear of going outside and being attacked will quickly subside. So, while the housing market may not be affected too severely by the bombings, the general economy of Boston might suffer, and that could indirectly hurt the real estate industry.

Tourism accounts for $8 billion of Boston's $325 billion economy each year, with hotel rooms generating $1.4 billion in revenues. A lot of that is due to the large amount of conventions held in the city each year. However, the Greater Boston Convention and Visitors Bureau was already expecting fewer conventions in 2013 than in years past – and that was before the bombings occurred.

The Boston Marathon itself generates nearly $140 million a year, according to the Boston Athletic Association, which sponsors the race. But if participants, spectators, and other out-of-towners are afraid to attend the event next year, that's a lot of lost income for local hotels, shops, restaurants, and other businesses.

If the Boston area loses some of the race’s income, tourism, and conventions, businesses will have lower-than-expected sales and profit margins, which could lead to layoffs. Plus, a dropoff in revenue could influence consumer confidence – and anytime that decreases, history has shown that people are less likely to purchase a home for fear of a possible recession.

Bottom line – just how much the economy is affected by the bombings is unknown, but the tragedy will most definitely have some kind of effect on the housing market.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Las Vegas Housing Market Becoming Less of a Gamble

daniel@realtypin.com Daniel Torelli — Thu, 25 Apr 2013 06:39:50 GMT

If you like to gamble, chances are you've been to Las Vegas! After all, the Las Vegas Strip is where millions of tourists from around the world come to spend a little money, have some fun, and hopefully beat the odds by hitting the jackpot on the slots or on the roulette wheel. However, every smart gambler knows that the cards are stacked against them, meaning there's a bigger chance that they lose money rather than make some!

The city's local real estate market has also been a crap shoot in recent years. Las Vegas was hit really hard by the recession, and there weren't too many buyers willing to take a chance on real estate in the one city where people roll the dice every day.

But now, the tides are turning!

Just like a gambler who has been down on their luck – and then suddenly finds a hot streak – things are starting to look up for the housing market in Las Vegas. Home prices here are soaring thanks in most part to multiple bids on the same property. One realtor recently told a local Las Vegas television station that he sold a house a few weeks ago that had 109 offers on it!

Like many other cities around the country, Las Vegas now finds itself with a multitude of people wanting to buy a home, but with a shortage of inventory to meet those demands. This has created bidding wars over the properties that are for sale, with some homes selling for $20,000 to $50,000 ABOVE the listing price!

Yup, you're reading that right. The race to buy a home in Las Vegas has gotten so competitive that prospective buyers are offering homeowners significantly more than what they are asking for the home!

Some of these bidders are traditional buyers – meaning people who want to purchase a home as their primary residence – but many are also investors. Investment firms have been purchasing homes around the country, often making all-cash transactions, and are then renting out the homes to families and single tenants.

The lack of homes for sale has driven rent prices higher, but economists expect those figures to level out in the months and years to come. They anticipate investors will eventually leave the market, meaning that the traditional buyers who are losing out in bidding wars now might finally have the chance to own a home in the future.

In the meantime, economists say the families who are currently renting should save their money so that they can afford the 10-20% down payment when the time and opportunity to purchase a home presents itself.

Whether you decide to buy now or not, buying properties in a city known for its legalized gambling doesn't seem like much of a gamble anymore. If you can afford to buy a home in Las Vegas right now, analysts say you can expect a big return on your investment in the future.

Taking a risk now in hopes of making money down the road is nothing new in Las Vegas, though, and it seems like the housing market is following in the footsteps of the city's main source of income!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is Today's Housing Market Too Investor-Happy?

daniel@realtypin.com Daniel Torelli — Wed, 24 Apr 2013 07:53:19 GMT

If you keep up with the news here on Realtypin.com, you know that we've spent a lot of time talking about how investors have dominated the housing market over the past few months.

The impact we’re feeling today began when the recession did – when America’s housing market was littered with millions of distressed properties. This led to there being far more homes for sale than there were people looking to purchase properties. As a result, home prices dropped off dramatically, with banks taking whatever they could get for the vacant homes.

That’s when investors saw an opportunity to make money fast. They swept into communities where they felt that home values would eventually increase and purchased as many as they could, with the hopes of selling them for a profit once values started to go back up.

However, smart investment firms know that home prices aren't climbing back to their pre-recession levels anytime soon, so they're renting out their homes until things get better. In some cases, the federal government is actually encouraging them to do just that – but is it hurting the overall housing market?

Some economists say yes.

In February 2012, the Federal Housing Finance Agency (FHFA) announced that the government-controlled mortgage-finance firm Fannie Mae was looking to sell nearly 2,500 foreclosed properties in bulk to investors through cash-only transactions, under the stipulation that the investors agreed to rent the homes out.

That set a precedent and started a trend.

Since then, investors have been purchasing as many homes as possible in key real estate areas, including Phoenix, Las Vegas, Atlanta, Los Angeles, Chicago, and in cities throughout Florida. At first, this helped the housing market. Instead of having too many homes for sale, the mass purchases created a shortage of inventory.

In the meantime, as the economy started showing signs of recovery, more traditional buyers – meaning people want to buy a home to use as their primary or secondary residence – started popping up. The result? There were a lot of people looking to buy a home, but not enough homes for sale to accommodate everyone.

Now, the same thing that helped jump start the housing market's recovery could be preventing it from moving forward.

These days, many prospective buyers cannot find a home to buy because they are losing out to investors. After all, investors have the resources to make cash-only offers to homeowners. This means their transactions can be finalized much faster, because there's no red tape from a lender. Plus, if a bidding war ensues, investment firms have more money than almost every “traditional” buyer, so they never lose if they truly want to purchase a home.

So while traditional buyers are busy driving around, taking tours of homes they'd like to buy, and then trying to find a lender to finance a home loan, these investors are walking away with the keys to the front door.

To make matters worse, most of these investor purchases are not relisted anytime soon. Remember, the investment firms plan to hold onto the properties for as long as it takes for the economy to fully recover. That means they’ve become landlords to many Americans who would buy a home if inventory wasn't so limited!

Now we’ve got a multitude of prospective buyers who may never achieve a big part of the American dream – owning a home.

Also, some economists say investors are only making minor repairs to the homes before renting them out. They say this hurts the local economy because the investors aren't spending a lot of money at home improvement stores and other companies that depend on the housing industry. These same financial analysts say if traditional homebuyers had purchased these same homes, they would have spent a lot more money in the local economy to make the homes more their own style.

So, did investors help the housing market in the past, and are they hurting it now?

The answer may very well be “yes” to both questions!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Do Economists Think of Housing Recovery?

daniel@realtypin.com Daniel Torelli — Wed, 24 Apr 2013 07:31:30 GMT

Every day we hear news pundits, politicians, newspaper columnists, and talk show hosts give their opinion as to the current state of the housing market's recovery.

But what about the “true” experts – the economists? What do they think? Is the housing market taking too long to recover, or is it moving along at the expected pace?

After listening to their comments in recent interviews, economists tend to be “cautiously optimistic” – and they say American consumers should be, too!

Recent statistics show that home prices in February were 10.2% higher than the same month last year, posting the highest year-over-year gain since March 2006. Not only is the national average home price up, but several individual states also report significant gains. Nevada, Arizona, California, Hawaii, and Idaho have all seen their home prices increase by double digits over the last year. Still, though, each of those states’ prices are more than 25% lower than they were at the peak of the housing bubble, in April 2006.

Clearly, progress is being made, but the statistics prove that there's still a long journey ahead for the housing market before it's considered fully recovered. Economists says the increase in home prices is a step in the right direction.

"Housing price increases are extremely important to the economy as they enable more refinancing, encourage employment-related mobility, and even make consumers more likely to remodel," Robert Johnson, the Director of Economic Analysis at Morningstar (a Chicago-based investment research firm), told ABC News.

He went on to say that consumer confidence increases as home prices go up, and his firm estimates that homeowners will actually spend 5% or more of their housing wealth gains, which would help the economy out even more!

Michael Lubanksy, a Senior Financial Analyst at SageWorks, Inc., said that after looking at his company’s calculations, he believes that the housing market is making strides.

"If someone is in the market for purchasing a home, it would seem now would be a good time to buy, given the combination of historically low interest rates and historically low prices," he told ABC News.

But he also emphasized that not every consumer who wants to buy a home should actually do so. Lubansky said anyone who cannot currently afford to purchase a home, anyone who may be relocating to a new city within the next five years, or anyone with a low credit score, or anyone with the inability to make the required down payment on a home should not be in the market to buy one right now.

But since rent prices around the country are escalating quickly, many renters are tempted to test the waters of home ownership. Lubansky says many of these renters – especially those who only recently became gainfully employed – should hold out for awhile.

"It takes time after this for the newly employed to purchase homes. By this time, rental prices may have stabilized as developers scramble to increase supply, which would lessen the incentive from this angle,” Lubansky told ABC News.

So what does all of this mean?

Basically, these economists believe the housing market is improving, but it isn't fully recovered yet.

The time to buy is now if you can afford to do so, but if not, they suggest that you hold steady in your current living situation, save money for a down payment, repair any damage to your credit report, and wait it out until there are more homes for sale. A larger inventory will bring home prices down, and that's when more Americans will be able to obtain the American dream of homeownership.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Can You Buy a Home That Isn’t for Sale?

daniel@realtypin.com Daniel Torelli — Tue, 23 Apr 2013 08:54:32 GMT

It may seem like an odd question, but apparently, you can!

The shortage of homes on the market right now is driving both real estate agents and consumers to get creative in their efforts to find their dream home. One recent survey reports a dramatic drop in the number of homes for sale in 2013 (specifically, they say that there are 14% fewer homes for sale this year than in years past). One prime example of this shortage is in Orange County, California, where there are 9000 fewer homes on the market than there were three years ago!

With the spring season upon us, realtors have been using their creativity to try and coax potential sellers out into the market, but even with their efforts, there is still a major lack of inventory. Although it may prove to be a challenge, it is still possible to find homes that aren’t even on the market yet. If you’re patient enough, you can be first on the list should a home go up for sale!

How do you do it?

One way is to look for homes where the current owner has defaulted on their loan. There is a period of time before the bank forecloses on the home where you can make an offer to a homeowner who may be struggling with paying their mortgage. By approaching the homeowner before the bank forecloses, you can save the homeowner from foreclosure and buy a home that hasn’t been listed yet.

By doing some research, you may be able to find potential sellers that previously had their home on the market, but took it off either because of the lousy market, or for other reasons. When you find one, send a letter to the homeowner, and ask them to contact you should they decide to relist their home, or make them an offer worth consideration even if they had changed their mind about selling.

(One thing to be careful of when contacting homeowners is that it is illegal to place something in another person’s mailbox. Either mail the letter through post office, or leave the letter at the front door.)

You may also be surprised to discover that there are websites where people “list” their homes at their fantasy price. Although these are not official listings, you may find a home where their fantasy price isn’t that far off from your reality price! By searching for these homes, you at least can get an idea of people who could be persuaded to sell if you are willing to make their fantasy a reality.

Finally, to buy a house that isn’t for sale, take a shot in the dark and contact homeowners of houses you love. Although this is a long shot, people have actually been known to sell their homes in these situations. Mail the owner a letter about why you love their home, and why you are so interested in purchasing it. Ask the homeowner to contact you and let you know if they have any intentions whatsoever, or to contact you first should they ever decide to sell.

The trick to reaching out this way is to be flexible and to offer scenarios that may be mutually beneficial. For example, you may offer to rent out the home after purchase for a period of time while the homeowners search for another house. It may seem like a long shot, but it’s definitely worth a try if you really love the house!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Exactly Does the Housing Market Affect the Economy?

daniel@realtypin.com Daniel Torelli — Tue, 23 Apr 2013 08:24:46 GMT

We often hear that the housing market affects the economy, but rarely does anyone explain the direct correlation between the two.

Clearly, home sales bring money directly into the local economy, but the impact goes much deeper than that. Many career fields depend on the real estate industry's success, and even the government is somewhat dependent on the housing market. Luckily, the number of closings for single-family homes is up across the country, and home prices have also been on the rise in recent months. That means that more homes are selling – and selling for more money!

Home sales keep people who work directly in the real estate business employed, but also provide income and job security to other industries as well. It's obvious that a healthy housing market benefits Realtors, mortgage lenders, builders, and developers, but you may have overlooked several other employers that also survive off of home sales.

For example, cabinet manufactures, companies who build and sell appliances, furniture stores, carpet wholesalers, landscapers, lawn service technicians, and home improvement stores that sell supplies like windows, lighting, and flooring, are all very dependent on the housing market. Every time a homebuilder starts a new construction site, they order lots of supplies from these companies, and increased home sales encourage developers to dive into more new home sites, further boosting profits for these suppliers and manufacturers.

An increase in the inventory of homes available is also crucial to the local economy's health. After all, a wide variety of home choices – in different sizes, locations, and price ranges – can influence a corporation's decision to relocate to an area, which will bring more jobs into the community. Some of these corporations are in industries where employees make a lot of money, and higher-income families will be more willing to move into a new setting if they know there are a lot of homes to choose from in their new hometown.

Home sales also affect government services. The exact relationship varies from town to town, but every city relies on property tax dollars to pay for certain services like transportation, road maintenance, recreation, law enforcement, fire and police departments. So, as the number of homes sold increases in a certain area, so does the quality of services the local government can provide. Simply put, more money coming in the door at the tax collector's office means a larger budget for the local city or county commission the following year!

If you're community is one where manufacturing jobs are prevalent, then you already know how home sales can affect that industry as well. Many factories make supplies that are used in home construction or remodeling, so as the number of home sales rises, the demand for these products increase, too. The increase in demand for these products not only leads to job security for workers already employed by the manufacturer, but it can also create more new jobs at the factory.

So, as you can see, several different components of the local economy are directly affected by the housing market. It's not a coincidence that when one is doing well, the other usually is, too. And if the housing market is struggling, chances are the local economy is also facing a recession of sorts also.

That's why so many people (even the ones who aren’t directly connected to the real estate industry) pay such close attention to home sales, average prices, and the inventory of homes for sale!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Obama Housing Plans Create Controversy

daniel@realtypin.com Daniel Torelli — Mon, 22 Apr 2013 08:54:58 GMT

The Obama administration is worried that too many would-be home buyers are being left behind in the housing market's recovery, so they are urging banks to loosen their lending guidelines. Administration officials say by making loans more accessible to borrowers with weak credit, banks would give an added boost to the ongoing economic recovery.

The request has created controversy, though.

Skeptics say that the plan could open the door to the same risky lending that caused the housing market's collapse a few years ago. Remember, after the housing bubble burst, many lenders either went out of business or had to seize countless homes from homeowners due to foreclosure. Since then, they've been much stricter in their underwriting guidelines, only approving loan applications from borrowers with high credit scores and the ability to make a 20% down payment on the loan.

However, President Obama is worried that this has prohibited many young people looking to purchase their first home or individuals with credit scores weakened by the economic recession from becoming homeowners.

Just how many people are we talking about?

Prior to the recession, about 40% of home buyers were first-time purchasers, according to the National Association of Realtors. That figure has fallen to 30% now.

Also, statistics show that people with credit scores that used to be acceptable are now being turned away in droves. According to the Federal Reserve, new home purchases for people with credit scores above 780 (out of 800) has only fallen 30% from 2007 to 2012, but the number has dropped off 90% for borrowers with credit scores between 620 and 680. In other words, five years ago, you could get a home loan with a 620 credit score. These days, that's nearly impossible.

That's why the Obama administration is urging lenders to loosen their lending guidelines. They have even gone as far as asking the Justice Department to provide assurances to banks that they won't face financial or legal issues if they lend to a borrower who ends up defaulting on the loan. President Obama's advisers say they are working with banks to make sure that these would-be buyers can get a loan approved, and that they have asked lenders to suggest that borrowers who don't meet current lending guidelines pursue a loan backed by the Federal Housing Administration (FHA).

After all, the FHA-backed loans come with an insurance policy (paid for by the borrower) that protects lenders if the borrower ends up defaulting on the loan. These loans have gained in popularity in recent years, and economists and financial experts from the Obama administration hope that more borrowers will take advantage of these programs in the months to come.

In response to the skeptics, the administration calls their efforts “safe”. They say they don't want to fully open the flood gates, but simply make owning a home a reality for more Americans. However, economists who are against the idea say it could spell disaster for the housing industry, citing that sub-prime lending is what got us in this mess to begin with.

Meanwhile, social workers who are employed by non-profit housing organizations applaud the Obama administration's efforts, saying that low and mid-level income families (as well as minorities) are still struggling to find affordable housing in this country, despite the fact that economy is improving. They say looser standards would really help those in need secure a loan for homeownership so that they can go out and purchase a home instead of continuing to rent from a landlord.

Just how much banks are willing to stray from the norm will determine if Obama’s plan is successful or a complete disaster, but until then, the country remains divided on the idea.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Challenges the Housing Market Faces Today

daniel@realtypin.com Daniel Torelli — Mon, 22 Apr 2013 07:38:18 GMT

No one can deny that the housing market is taking steps in the right direction. After all, home prices in February were up 10.2% from the same month in 2012, marking the biggest year-over-year gain since March 2006! That’s a clear sign that buyer demand is on the rise. All of today’s buyers are driving home prices higher and higher – and as a result, builder confidence is twice as high as it was during the recession.

Plus, mortgage interest rates remain low. Right now, the average rate for a 30-year fixed mortgage is currently 3.76% -- something that will encourage more people to buy.

Despite all of this good news, the housing market still has obstacles standing in its way. Before it can be considered “fully recovered”, the market has to overcome these 4 things:

1. Tight credit

Recent surveys show that prospective buyers are struggling to get loan approval – meaning that a bunch of people can’t even take advantage of those low mortgage rates! Because lenders are overly-cautious these days, the road to full recovery could be a long one.

2. Down payments

Even borrowers with outstanding credit scores are struggling to buy homes because they can't bring a 20% down payment to the negotiating table. Borrowers who can't come up with 20% can apply for a loan backed by the Federal Housing Administration that only requires a 3.5% down payment, but changes to that program recently made those mortgages harder to come by too.

And, remember, FHA-backed loans require a mortgage insurance policy, to protect the lender in case the borrower defaults on the loan – meaning the borrower has to pay the monthly premiums. The rates for those premiums were recently raised by the federal government, making this type of loan less affordable.

3. Lack of inventory

There simply aren't enough homes for sale right now across the nation to satisfy the demand for home ownership.

As the economy recovers, more Americans are feeling confident enough to test the home buying market.

That increased demand has turned the real estate industry into a seller's market. It's good news for homeowners who have their homes listed for sale, but it’s bad news for prospective buyers. Homeowners are often receiving multiple offers on their homes, as buyers face off in bidding wars to purchase the home of their dreams. That means many buyers are struggling to find a quality home in their price range.

Economists expect more homeowners to list their properties during the coming months, but that still may not be enough. And, remember, there are tons of investors out there that can afford to make cash-only purchases. There is also a growing number of “boomerang buyers” – or, homeowners who lost their homes due to foreclosure when the housing bubble burst, who are now eligible to purchase a home again. Both of these mean even more competition for prospective buyers!

4. Negative equity

Many homeowners see that it's currently a seller's market, but still can't afford to list their home for sale. That's because they are underwater on their mortgages, meaning they have negative equity in their homes.

In other words, these homeowners purchased their homes during the height of the housing market's boom and have seen their properties lose value as the market crashed. Now they owe more on their mortgage than the home is currently worth.

But as home prices continue to go up, more of these underwater borrowers will begin to list their homes for sale, since prices are starting to inch closer to what they paid for the home. Still, though, there are plenty of people who want to sell but won’t be able to afford to do so for awhile.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Ways to Make Your Living Room Look Bigger

daniel@realtypin.com Daniel Torelli — Sun, 21 Apr 2013 08:44:35 GMT

In most cases, the living room is the focal point of the entire house. It’s a place where you entertain guests, spend time as a family, or just relax and watch TV.

Whatever your main function for your living room is, you may worry about its size. And, if you are considering selling your home, a small living room may actually be a turn-off for buyers. But instead of spending money on costly renovations, there are plenty of tricks to make your living room seem bigger.

Here are our top 4 ideas:

1. Lighten up

Although you may love the trendy wall paint, if the color is dark, chances are good that it’s making your living room seem much smaller. You may groan thinking that your only option is to paint white or beige, but there are plenty of options that don’t include some form of white, tan, or beige. For example, consider a pale yellow or a light grey, which still provide some form of color without having the walls close in on you.

Just because you paint the walls a lighter shade, doesn’t mean that your living room has to be boring. Include accent colors through throw pillows or rugs that can add a pop of color and still make your living room feel larger and more open!

2. Ease up on the bulk

Large furniture with big pillows can take up a lot of unnecessary space and make the entire room feel smaller. A good rule of thumb is the more floor that’s showing, the larger the room will feel.

Best of all, the current trend in modern furniture is less bulk and clean lines. Although this type of furniture at first glance doesn’t look comfortable, don’t judge a book by its cover. Although it may not radiate coziness, most modern furniture is just as comfortable as bulkier furniture – and it doesn’t make your living room seem smaller than it really is!

3. Glass tables

Glass tables open up a room because you can see through them, right to the floor. That way, you add more visible floor space, without actually getting rid of any furniture!

Just remember, homeowners with small children may need to do some extra maintenance against sticky fingers and smudges. Plus, there are some safety considerations if your children are known for rough housing. However, if you don’t fit into these scenarios, consider a glass coffee table and end tables a great way to open up the room and make it appear bigger.

4. Natural lighting

The best-case scenario is a big picture window in your living room, because it lets in streams of natural light. Bright rooms seem bigger, and picture windows have been known to trick people into thinking a room is actually bigger than it really is.

No matter what your living room’s windows look like, don’t cover them with blinds or heavy curtains that can prevent natural light from coming in. Instead, opt for sheer curtains that let in the most light, without making the room feel smaller. If you don’t have a lot of natural light, add some lamps to the space to brighten up the room and make it feel larger.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Ways Your Backyard Can Affect Your Home’s Sale

daniel@realtypin.com Daniel Torelli — Sat, 20 Apr 2013 07:20:19 GMT

A backyard may top the list of a buyer’s “needs” list, while another potential buyer might not care at all. But in most cases, your backyard can greatly impact the sale of your home. Read on to find out the top five ways your backyard can determine when – or even if – you sell your home:

1. Landscaping

Although a beautifully landscaped yard may add aesthetic value to your home, it could also set off alarms to potential homebuyers. Some people appreciate the beauty, and they are willing to put in the work to keep the landscaping intact. However, for some busy professionals, they only see the landscaping as extra work.

On the contrary, having an overgrown yard can deter homebuyers, because they want to buy a home that is well-maintained and cared for. Even if they plan to landscape themselves, or plant a garden, anything in or around a home that is not manicured is a red flag for potential buyers.

2. Alienate families

If your home lacks a sizeable backyard altogether, you may alienate families from even coming to check out your home at all! The majority of families want to have a safe place where their children can run around and play. Many families also want the opportunity of enjoying the outdoors by having a BBQ or a space where family can get together, the kids can play, and the adults can relax. Without a backyard, most of these people will be hard-pressed to buy your home.

3. Maintenance

Your backyard could deter potential buyers if your backyard requires a lot of maintenance. Your compost pile or rose garden may be your favorite weekend project, but it could be viewed as an annoyance for a potential buyer. Furthermore, if you have a pool or some other feature that requires maintenance, some buyers might see that as a money- and time-consuming project, instead of seeing the value in those features.

Although most of these features add value to your home, they can also prevent buyers from purchasing your home, because they’re features they don’t necessarily want, and aren’t equipped or willing to deal with.

4. Pets

Having a small backyard – or no backyard at all – can be a real downside if your potential buyers have pets. After all, the majority of people with pets move from an apartment to a home for the purpose of giving their dog a place to easily go to the bathroom or to get some exercise. By not having a backyard, you are limiting the amount of people who will want to buy your home.

If you do have a backyard, and are a pet owner yourself, your backyard can also affect the sale of your home if you aren’t careful. Before any potential buyers come over, make sure your dog hasn’t dug any holes or created any other damage to the area. Most importantly, make sure your backyard is completely clean of any pet waste before every single showing.

Pet waste or not, though, your backyard should be completely spotless, manicured, and ready to go for every open house, and every other time a potential buyer steps onto your lot!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Newer Homes a Better Buy?

daniel@realtypin.com Daniel Torelli — Fri, 19 Apr 2013 11:44:57 GMT

The estimated 900,000 new homes that will go up around the country this year present enough of a challenge for existing sellers already, thanks to things like shiny new appliances and the latest design trends. However, there could be another reason why buyers opt for new homes this year – the bang they’re getting for their buck.

According to data from the Census Bureau and the Department of Housing and Urban Development, newly-constructed homes are actually a better buy than their existing counterparts because they come with lower annual operating costs. When you combine that with the near-record low mortgage rates buyers are getting these days, the savings can really add up!

Just how much money will a new home save its owner, compared to an older home?

The National Association of Home Builders decided to study that very subject. They discovered that new homes are cheaper to maintain in four ways – insurance, property taxes, utility costs, and general maintenance.

However, a home doesn’t have to be constructed this year in order to reap these benefits. Homes that have been around for a few years will also offer similar savings. According to the National Association of Home Builders’ research, a home that was built after 2008 costs, on average, less than 3% of the home’s total value to operate every year. For homes built before 1960, the average operating costs jump up to 5% of the home’s total value. As a result, homebuyers can afford to spend 23% more on the purchase price and still wind up spending the same amount each year to maintain their homes.

In other words, buyers can afford bigger, more luxurious homes, without necessarily spending more in the long run.

However, housing experts caution, this bargain won’t last forever. They say that when mortgage rates start to rise above 4%, the savings will start to dwindle. Then, they point out, those higher purchase prices will come with higher interest – meaning that a buyer’s higher monthly payments will offset the savings he gets in maintenance over a smaller, older home.

The experts at Realtypin.com have been urging people to buy homes – either new or existing – sooner rather than later. That’s because mortgage rates will only be so low for so long. After combining an inevitable rise in mortgage rates with the rise in selling prices that the market is already seeing, it’s clear that the time for buyers to get the most bang for their buck is right now!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is Another Housing Bubble Brewing?

daniel@realtypin.com Daniel Torelli — Fri, 19 Apr 2013 06:40:10 GMT

Flash back to the mid-2000’s. That’s when “flipping” was all the rage, and home values were constantly getting higher and higher. However, that housing bubble couldn’t sustain itself, and eventually, the bubble burst – and took the U.S. economy with it.

Americans have been waiting for years to see some improvement in the housing market, and they finally started to get it at the end of 2012. Over the past few months, home prices have gone up, and buyers have even gotten into bidding wars to secure the home of their dreams.

But is another housing bubble being created right now?

That’s what some experts fear.

Today’s housing market is very different from the housing market of the mid-2000’s. However, the Federal Reserve’s plan to hold mortgage rates as low as possible (a plan called “Quantitative Easing”) is helping to create a strong buyer demand. That demand, coupled with a low supply of homes for sale, is causing home prices to rise faster than the experts had predicted. In fact, JPMorgan Chase & Co. just doubled its home price predictions for 2013. They now think that home prices will jump 7% by the time the year is over. Bank of America recently made a similar prediction, saying that home prices will increase 8% by the time 2013 comes to a close.

With predictions like these, it’s easy to see why investors are scooping up homes as fast as they can. In fact, Colony Capital – a large California-based investment firm – has already raised more than $2 billion to buy homes and rent them out. According to the experts at Realtypin.com, countless investors around the country have similar strategies. Their plan is to buy homes now (before prices rise even more), then sell them down the road, when prices make larger gains. In the meantime, they’ll rent out the homes in order to turn a profit.

Even though home prices are still far below the levels hit during the mid-2000’s, some experts fear that they’re growing too fast for the economy around them. After all, the nation’s unemployment rate is still close to 8%, and even the Americans who do have jobs aren’t seeing salary increases that match the pace of housing price growth. As a result, some experts are afraid that homes will become overvalued just like they did a few years ago.

A similar balloon could affect land prices. Since homebuilders have started breaking ground on more new projects recently, there is a fear that land could be in high demand – creating a “land boom” in the process.

The talk of balloons has some experts calling for the Fed to discontinue Quantitative Easing. However, there has not been official word from the Fed about discontinuing the program anytime soon.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

More Sellers Believe in the Strength of the Housing Market

daniel@realtypin.com Daniel Torelli — Thu, 18 Apr 2013 09:56:31 GMT

America’s housing market simply cannot regain full-strength if sellers are afraid to put their homes on the market. After all, like the team at Realtypin.com always says, the housing market is a giant cycle. The more sellers there are, the more options buyers will have, and the more other homeowners will want to get in on the action.

So, what do the nation’s homeowners think of the housing market right now?

Lots of good things!

According to data just released, more people – especially potential sellers – are gaining confidence in the housing market. That’s because the number of homes for sale went up 2.36% in March, when compared to the month before. If homeowners didn’t believe that the housing market was headed in the right direction, they would never risk their largest assets by putting them up for sale.

A big reason why sellers are gaining confidence? The sales prices! By the end of March, the nation’s average listing price had gone up to $190,000, and thanks to a drop in inventory, more sellers are getting exactly what they’re asking for. And, they’re getting it sooner! Around the country, homes are selling in, on average, 78 days. That means they’re selling more than 20% faster now than they were in February.

These statistics are calculated by analyzing 146 different metros around the country. According to the site, a growing number of those metros are seeing higher listing prices than they were this time last year. Some of the biggest gains are being made in California, as Stockton, San Francisco, and San Diego are all among tops in the country for listing price increases over the past year.

The added confidence is also giving a big boost to Detroit – a city that was hit particularly hard when the housing bubble burst. While the number of homes here is smaller than it was this time last year (26% smaller, to be exact), homes are selling much faster than they were this time last year. As of the end of March, the average home in Detroit was selling in just 45 days – compared to 71 days in March 2012! That’s a huge step forward for a city that has struggled with massive unemployment and a glut of distressed properties over the past few years.

So, will confidence continue to grow?

That’s the real estate’s version of the “$64,000 question” right now! However, if the housing market keeps up this pace, experts don’t see any reason for confidence to drop off. The experts tend to agree, though, that the next few months will be critical.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Roofing Contractors the Latest to Get Boost from Housing Recovery

daniel@realtypin.com Daniel Torelli — Thu, 18 Apr 2013 08:02:47 GMT

The experts at Realtypin.com have been keeping tabs on the industries that are getting a boost from the housing market’s recovery, and now there is one more to add to the list – the roofing industry.

Revenues of roofing companies are about 10% higher than they were this time last year. Part of that increase is due to the continuing cleanup from Hurricane Sandy. However, roofing contractors started seeing an increased number of new home construction projects over the past couple of months that have helped to sustain the increase.

Some of the biggest gains have come in the multifamily sector – like apartments, condos, and townhomes. In fact, over the past eight months, roofing companies around the country have seen their business go up because of the demand for rental properties. Since many people are still nervous about becoming homeowners in this market – or don’t meet all of the criteria for lenders’ strict underwriting guidelines – there has been an increased demand for apartment buildings. Since each new apartment building needs a roof, there has been a surge in work for roofing contractors!

But as the housing market has started to chug forward, the demand for roofing contractors’ work on new home construction has gone up, too. Even though America is only on pace to see 900,000 new residential construction projects go up this year – which is far below the 1.5 million built during a “healthy” economy and even further behind the 1.9 million built during the housing bubble’s peak in 2006 – that’s more than have gone up in recent years. In fact, roofing industry experts say they are optimistic about making gains over the next two or three years.

But new construction isn’t the only thing boosting the roofing industry these days.

As the overall economy has started to tick upward, more homeowners have started spending more of their money on renovations projects than they had in years past. As a result, more of them are turning to roofing contractors for upgrades and repairs.

The start of spring could also help the roofing industry. After all, the spring tends to be the severe weather season for many regions around the country. If things like hail and tornadoes pop up, it will mean more roof damage – which means there will be more work for roofing contractors.

The only thing standing in the roofing industry’s way?

A lack of home equity. While Americans are slowly starting to build more equity in their homes, today’s landscape is a far cry for the equity-laden days of the mid-2000s. As a result, fewer homeowners will be able to tap into their equity to make major upgrades – like new roofs, for example.

Still, though, the roofing industry is following in the footsteps of the housing industry – with a slow, steady trip in the right direction!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

San Diego’s Housing Market Looking Bright and Sunny

daniel@realtypin.com Daniel Torelli — Wed, 17 Apr 2013 19:02:07 GMT

San Diego is known for its sunny skies, and now the local housing market is following in the weather’s footsteps!

According to the latest statistics, home prices are 24% higher than they were last year for attached homes (like townhouses and condos), and the prices for detached homes (like single-family houses) have gone up 16% over the past year. Whether they’re attached or detached, though, most of the homes here only need a “For Sale” sign out front for just a few weeks. And, in some cases, San Diego-area homes are selling in a matter of days – after fetching offers from a slew of buyers!

What’s behind this “sunny” trend?

A big part of it is the inventory. The number of homes for sale here is 40% lower than it was this time last year, and most of the distressed homes that popped up after the economy crashed have long since been sold. In fact, there is such a shortage of homes for sale that many San Diego realtors don’t have any listings at all! Other realtors spend their days trying to calm buyers down – letting them know that it may be tough to get their hands on a home here, but that it can still be done.

Part of the reason why buyers are so frenzied here is the number of investors that have moved into the area. Over the past few months, San Diego has been hit hard by foreign investors who want to scoop up practically anything that’s for sale. As a result, the demand for the tiny inventory here is even stronger – meaning that people aren’t just competing with the locals if they want to buy here. The investors have made things especially tough for first time buyers, who are just now beginning to dip their toes into the market.

San Diego isn’t the only metro facing this issue – but, for now, it’s making sellers very happy. Like the team at Realtypin.com has pointed out, investors are dominating housing markets all over the country. While it makes for a tougher time for buyers, the increased demand drives up selling prices. As a result, sellers can usually get everything they ask for.

What about the future of San Diego’s housing market? Is it just as sunny?

Local experts seem to think so. At the very least, they expect this frenzied pace to keep up through the summer. So, for the time being, the future of San Diego’s housing market looks bright and sunny!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Are Realtors Dealing with Low Housing Inventory?

daniel@realtypin.com Daniel Torelli — Wed, 17 Apr 2013 09:44:42 GMT

It’s been a tough few years for realtors. In 2008, the housing market crashed, and it was difficult to find anyone who wanted to buy or sell a home. As the market slowly started to recover, many people still weren’t willing or able to sell because they were experiencing underwater mortgages, a situation where you owe more for your house than it’s worth. Now that we’re even further away from the recession, realtors are dealing with a new issue – low housing inventory.

Spring is typically known as the time to buy in the real estate market, and now for the first time in many years, realtors don’t have to worry about whether or not there will be buyers looking for their next home. Instead, they have to worry about there being enough supply for those on the lookout for their next home!

The National Association of Realtors recently reported that the nation’s supply of homes for sale is at its lowest point since 1999. So, if you are a seller in today’s market, this is great news for you. After all, these low inventories have sparked bidding wars around the country and driven up selling prices. But if you are a buyer, then you may have some trouble finding that dream home this spring.

The solution?

Realtors have had to get creative to try and meet the demand of their buyers. They’re doing things like writing personalized notes to potential sellers, explaining to them why it’s the perfect time to put their homes on the market. They are also advertising heavily with special emphasis on the bidding wars that are happening because of the lack of inventory. They’re even pounding the pavement, by personally visiting people they’ve done business with in the past to see if there is a chance that they could be convinced to sell their homes.

And if you’re a buyer, odds are your realtor is getting just as creative on your end.

Right now, realtors are trying to convince buyers to either bid high or pay with cash if they really want the home of their dreams. Despite realtors’ best efforts to drum up business, the inventory is still low, and for a buyer to land the home they have always dreamed about, they have to be aggressive with their bidding to even have a chance.

Adding to the issue, some people would love to sell, but they’re afraid they will have nowhere to go once their home sells. After all, they’d have to become buyers, too! Luckily, new homes are going up all over the country, which has started to alleviate some of the problems. Unfortunately, there aren’t as many new homes being built as realtors would like because many builders are having trouble getting financing. Remember, lenders have gotten stricter with their underwriting guidelines, which affects builders, too!

Put all of these issues together, and you have an incredibly low inventory, despite realtors’ best creative efforts. In the end, it seems like this spring may prove to be a difficult one for realtors – or, at the very least, a tiring one!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Priciest Housing Markets

daniel@realtypin.com Daniel Torelli — Tue, 16 Apr 2013 19:30:16 GMT

There aren’t any places in the U.S. that were able to escape the effects of the housing market crash. Although home values are still much lower today than they were before the recession, there are still some neighborhoods that boast multi-million dollar homes. In fact, these areas have homes that people bought for eight figures last year, and there are plenty more on the market this year for sale as well – and the price tags could go even higher!

If you are in the market for a $10 million home – or just want to know which places have the highest price tags – here’s our top five list:

1. Beverly Hills, CA

Beverly Hills ranks number one with the highest amount of $10 million homes sold during 2012. In fact, a whopping 21 homes sold last year with price tags of over $10 million! Many people flock to Beverly Hills because they love the mild temperatures of Southern California. Plus, there are tons of luxuries here – including living near lots of celebrities.

Move to Beverly Hills, and you’ll also have access to the most iconic shopping area in the country. And don’t bother looking at the price tags in the boutiques. After all, if you can afford a $10 million home, then it’s safe to assume you can afford to shop on Rodeo Drive!

2. Aspen, CO

Aspen ranks second in the U.S. for highest priced housing markets. Last year, 16 homes here sold for over $10 million. The high-priced market brings in many vacationers with summer homes, as well as locals who appreciate the beautiful views around town, and of course, some of the country’s best skiing during the winter months.

3. Miami Beach, FL

Miami Beach is an interesting city on the list because the properties here are so diverse. Head to South Beach to find small studio apartments renting out for thousands of dollars per month, along with multiple homes selling for over $10 million! Miami Beach is a popular spot for the wealthy because of its beautiful beaches and sunny weather almost all year round.

4. Malibu, CA

The mild weather, great beaches, and the multitude of wineries bring in the wealthy to Malibu. In fact, Malibu currently has the highest number of eight figure homes for sale in the country. This area sits just north of Los Angeles and serves as both a popular vacation spot as well as home to the rich and famous.

5. Greenwich, CT

You don’t necessarily need fun in the sun to find expensive homes. Even with its colder temperatures, Greenwich still sold six houses over $10 million last year alone! The hedge fund and financial service markets are responsible for most of the wealth in this East Coast town, and executives in those industries own some of the highest-priced homes in the country! The high price tags here can also be associated with Greenwich’s constant ranking in the top cities to live, with number one rankings almost every year.

The sky is the limit in these areas! In fact, real estate experts predict that there will always be a need for these ultra-luxury homes, and in the next few years, $10 million may seem like pennies compared to the other houses in these neighborhoods!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Vacation Homes Driving Connecticut’s Housing Market

daniel@realtypin.com Daniel Torelli — Tue, 16 Apr 2013 19:10:27 GMT

Even with the devastation of Hurricane Sandy still lingering in many locals’ minds, Connecticut’s shoreline home sales are soaring. Although the hurricane wreaked havoc on the east coast, Connecticut is seeing a major improvement in its housing market largely due to sales of vacation rentals!

It’s a welcome sign – and one that the people here didn’t expect.

After all, when Sandy slammed into the east coast, the devastation seemed never-ending. Some coastline cities thought they would never recover. Although the cities are not completely back to their pre-hurricane status, homes up and down the shoreline are gaining popularity thanks to the untapped market on Connecticut’s coast.

Who’s buying these homes?

Like in many other parts of the country, investors have swooped in. After all, the prices here are still much lower than they were before the housing market’s collapse. Since prices are starting to go back up, investors want to jump on the opportunity before the costs get too high.

How many vacation homes are we talking about?

Vacation home sales accounted for over 10% of Connecticut’s total sales last year, which is a huge increase from 2011. According to the National Association of Realtors, this increase is vacation home demand has increased the median vacation home price by 24%.

According to Lawrence Yun, the Chief Economist for the National Association of Realtors, this isn’t a new trend, though. “Investors have been very active in the market over the past two years, attracted mostly be foreclosures that could be quickly turned into profitable rentals.”

Investors are seizing the opportunity with this particular housing market, since other vacation hot spots are already overrun with vacation home rental opportunities.

Because bond and money market yields are low, investors are getting creative to make a large profit, and the Connecticut housing market seems like the place where money can be made. Wealthy buyers are seeing the opportunity in real estate since the market is currently so low, and the houses are much more affordable than they were before the housing market crashed. Although the prices have been rising steadily since the housing market is recovering, the prices aren’t even close to what they were before 2008.

This trend can’t last forever, though. With the large spike in investors, prices bound to go up, and the investors will eventually leave. After all, the current low prices make it easier to make a large profit off of their investment. Although the supply is plentiful right now, agents are already seeing bidding wars starting to creep up on some properties. Once the demand gets too high and the supply too low, the prices will drive up so far that investors will lose interest in the area.

What is sustainable is the fact that it’s not just investors pouring money into the Connecticut housing market. People are also taking advantage of the affordable prices to buy vacation homes for personal use, too. This sudden interest has sparked bidding wars on properties that had previously been sitting with a “For Sale” sign for years!

Who are these people?

Even though they’re not investors, many of these people coming in with cash. Although not all the buyers are offering cash, many who are using financing supply a larger-than-normal down payment for their mortgage.

Bottom line – there’s lots of money being spent on Connecticut’s shoreline, and the locals are loving it!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Housing Investors Slowing Down?

daniel@realtypin.com Daniel Torelli — Mon, 15 Apr 2013 10:28:45 GMT

Investors have been the driving force behind the housing market's recovery for quite some time, but that could be changing. That’s because a new report from the National Association of Realtors (NAR) suggests that investors are beginning to withdraw from the housing market because of rising home prices.

How did investors get involved in the first place?

After the housing market's collapse, there was an extremely large inventory that consisted of mostly low-priced distressed properties. Investment firms realized that they could purchase these discounted foreclosures and quickly turn them into profitable rental properties, so they literally purchased millions of homes across the country. That led to a shortage of inventory, and now that the economy has started to recover, consumer demand for homeownership has risen.

The combination of an increased demand and a reduced supply has driven home prices through the roof – so much so that many investors have decided that now is the time for them to stop purchasing properties. In fact, according to the NAR report, the total number of investment properties purchased in 2012 fell to 1.21 million. That’s down 2.1% from 1.23 million sales in 2011. While that may not seem like a significant drop off, the fact that there's any decrease is surprising considering how rapidly investors have been purchasing homes over the past two years.

Is the number going to keep decreasing?

Economists at the NAR expect even fewer investor purchases this year, citing rising home prices and a shortage of inventory in the lower price range of homes as the main contributing factors. However, investors are still very busy. In 2011, investors made up 27% of all home buyers, and that figure fell to 24% in 2012. That's still significantly higher than what is considered “normal” by analysts.

If a glut of investors stop buying homes, prices could stop rising because the inventory would increase. But, that may not happen, especially if the desire to own a home remains high among traditional buyers.

Right now, traditional buyers – meaning people wanting to buy a home as their primary residence – are having a hard time finding properties to buy because of the investors. Investment firms have enough money to make cash-only purchases, so they can skip the entire mortgage process. This has allowed them to finalize a transaction much quicker than someone who has to apply for a home loan from the bank.

If the desire to own a home remains high among traditional buyers, they could pick up the slack left behind by the investors. But if they don’t, the real estate industry could quickly turn from a seller's market into a buyer's market – meaning we'd go from a shortage of home for sale to markets flooded with inventory.

Economists at the NAR say traditional buyers will find it easier to purchase a home without competition from the investors, so the housing market's recovery shouldn't be derailed by the change. Although investors are slowly reducing the number of properties they have purchased, they are in no hurry to sell the ones they've bought. Many of those homes are already profitable as rental properties, so investors are holding on them until the market fully recovers – meaning the nation’s inventory wouldn’t be flooded with investors looking to sell.

According to the NAR report, only 6% of homes purchased by investors last year have been resold. Overall, investment buyers plan to hold the property for a median of eight years, the NAR study shows. That's up from five years in 2011.

So what does all this mean?

It means that investors are now going to be in a holding pattern. They aren't buying as many properties as they have in recent years, but they aren't ready to sell the ones they've purchased either. For now, many investors are happy making a profit by renting the properties they’ve got, so don't expect that to change for at least a few more years.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Cash Transactions Make Bay Area Home Buying Tougher

daniel@realtypin.com Daniel Torelli — Mon, 15 Apr 2013 06:40:06 GMT

Many would-be home buyers in San Francisco are becoming more and more frustrated, and rightfully so! After all, the Bay Area was already considered one of the least affordable markets in the country, and now an increase in the number of cash-only transactions has made it even more difficult for first-time buyers to purchase a home. In fact, some San Francisco-area realtors are reporting that up to 26% of their transactions last year were all-cash deals.

So, why the increase?

Like most other cities around the nation, San Francisco currently has a shortage of homes for sale. This reduced inventory has led to bidding wars, and sellers are simply sitting back and waiting to see which of their prospective buyers is willing to shell out the most money.

Often among those bidders are investors who have make very attractive all-cash offers. Traditional buyers – meaning people who want to purchase a home as their primary residence and have to use traditional financing to do it – are getting beat to the punch by these investment firms. While those traditional buyers are busy filling out mortgage applications with a lender, these investors are finalizing the paperwork to buy the same homes!

For a seller, it makes sense. Why deal with a buyer who has to get financing (and could potentially lose it during the process), when you can sell the home and immediately receive a bunch of cash?

Some buyers have found a way to combat this problem, though. They've decided to make all-cash offers too, hence the rise in cash-only purchases over the last year. But unlike investment firms, who have a stockpile of cash at their disposal, these traditional buyers are getting creative with how they're coming up with the money!

Many are selling off their stock portfolios and are cashing in their savings accounts, which is risky business, but by doing so, it gives them a competitive advantage over other would-be buyers. By bringing cash to the table, it says to the seller that these buyers are serious, and that is often the difference between their offer being accepted or declined.

This seems to be working for buyers who can afford to do so, but what about those who don't have the resources and savings to make a cash offer?

Sadly, it seems these people may have to wait to become a homeowner when there is more inventory available, but even then, it won't be a guarantee. That’s because there is a wide gap between the average home price and average income in the San Francisco area. Currently, the average home price in San Francisco is $659,000, but the average income is only $103,000. In fact, according to a recent study by the California Association of Realtors, only 22% of Bay Area residents can actually afford to buy a median-priced home there!

So, as you can see, a majority of residents need a loan to purchase a home, but with investors and wealthy individuals buying up all of the properties, even the strongest mortgage pre-approval may not help!

That's why the housing climate doesn't look promising for first-time buyers in San Francisco. They have a lot of competition who come armed with cash in hand – and as we all know, money talks!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Should “Green” Homeowners Get Lower Mortgage Rates?

daniel@realtypin.com Daniel Torelli — Sun, 14 Apr 2013 06:46:59 GMT

When lenders decide on a mortgage rate, there are many factors they take into consideration – all with the intention of figuring out the chance that you will default on the loan. The main considerations for a lender are your credit score, your income, and your existing debt.

But are lenders leaving out an important factor that could determine whether you are likely to default on your loan?

A recent study found that homeowners with “green” homes – or homes that have energy-saving appliances – are over 30% less likely to default on their mortgage than those living in a standard home without the energy-saving appliances. Even though the survey had a large sample size and was careful to ensure the accuracy of the results, the experts behind it still don’t know exactly why there is such a strong correlation between those with green homes and their likelihood of defaulting on their home, or in this case, not defaulting!

Now, it has led to a lot of speculation.

Some experts believe that defaults are less likely because of the significant savings that going green brings. After all, people don’t pay as much on their utility bills, which means they have more money left over at the end of the month to pay their mortgages. On the other hand, those who don’t live in green homes are spending much more on the utilities and, thus, don’t have the extra money.

Just how much money are we talking?

Standard “green” homes can save up to 15% on their utility bills, and that number can go even higher with more expensive upgrades such as solar heating or a high-efficiency air conditioner. So, the extra money can really add up, which means it’s the most likely connection between people being able to pay their mortgages on time and having “green” homes. So, not only are people eliminating their carbon footprint, but they also stand a higher chance of living up to the terms of their mortgage!

So, should these homeowners be rewarded for going green?

If they’re less likely to default, it would make sense that these homeowners would get better interest rates on their loans. But, unfortunately, that’s not currently the case. Right now, most lenders don’t consider “green” homes at all when determining an interest rate, even though there is strong proof that this group of people are much less likely to default.

Why not?

In years past, lenders stated that they didn’t have significant proof that someone buying a “green” home would be a better candidate for a loan and, therefore, should receive lower interest rates. But now that there is proof, there are only a few lenders who are taking it into consideration.

It seems as though the times haven’t caught up with the technology, and mortgage lenders haven’t realized the importance of this information. Now that this study has been published, lenders should start considering if the home is “green” and offer better interest rates in that case.

Even though, for now, you won’t get a better interest rate, you should still consider finding a “green” home for your next home because you will be helping the environment, and saving a lot of money on your utility bills, too!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Deal with Mortgage Stress?

daniel@realtypin.com Daniel Torelli — Sat, 13 Apr 2013 08:04:45 GMT

Mortgages can be a huge financial strain, which is why so many people suffer from mortgage stress. Even if you’re not underwater on your mortgage, it can cause a lot of emotional strain.

Why?

Because there’s so much that can go wrong!

After all, a mortgage is likely the biggest loan you’ll ever take out – so if you lose your job, get your salary slashed, or fall victim to higher interest rates, you won’t be able to afford it. Then, throw in all of the foreclosures and the massive drop in property values that the recession caused, and you’ve got worries piling up!

However, you’re not alone.

With the nation’s unemployment rate sitting just below 8%, millions of people have lost the ability pay mortgages that were once easily affordable. (As if losing your job isn’t stressful enough, worrying about how to pay the mortgage is even more nerve racking!) Or, if you’re one of the many people who has a variable rate mortgage, you may have seen your interest rates go up more than you anticipated over the years.

Even if you if you haven’t suffered a foreclosure, chances are pretty good that you have a neighbor, friend, or relative who has. As if their situation doesn’t scare you enough, you know that their misfortune will lead to a lower property value on your own home!

But mortgage stress isn’t just a result of the recent recession.

Even when the economy is healthy, a mortgage can be overwhelming. Now that the economy and the housing market are starting to slowly get better, many people are still experiencing mortgage stress.

So, how do you deal with it?

One good way to get mortgage stress under control is to spend some time managing your budget and really analyze your spending. If you closely track where your money goes each month, you can probably find areas where you are overspending – and come up with some ways to cut back. If you make a few changes, odds are your mortgage won’t feel so overwhelming.

Another great way to handle mortgage stress is to see a credit counselor. A credit counselor can help you go over your credit report, help you understand what everything means, and tell you how you can improve – as well as help you plan your budget so that your expenses feel more affordable. As an added benefit, if you improve your credit, you can also improve your chances for refinancing at a lower rate!

Improving your financial situation is a great way to relieve some of the stress you feel from your mortgage, but sometimes it might just be necessary to employ some general stress-reducing techniques. For example, exercise isn’t just great for your general health. It has also shown to significantly reduce stress, and a good workout will release endorphins that make you feel better overall!

You may find it necessary to talk to someone to relieve your stress, whether it’s a professional or just a family member that you can vent to about some of the major stressors in your life. If all else fails, take a day a get a massage, or spend the evening relaxing in a warm bath. Taking a timeout to spend some time for yourself can help you forget about your stressors at least for a little while.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Should You Become a Landlord?

daniel@realtypin.com Daniel Torelli — Fri, 12 Apr 2013 18:29:14 GMT

When the housing market crashed, it took down property values with it. For some homeowners who need to relocate, downsize, or find a home with more space, they are realizing that the housing market hasn’t recovered enough to make any money on their original investment. Some homeowners are even experiencing underwater mortgages, where they owe more on their home than it’s worth – putting them in a position where it’s just not the right time to sell

So, what do you do if you’re in a position like this – but you need to move?

One opportunity for people stuck in any of these situations is to become a landlord, and rent out the home to another person or family. It may seem like a good idea at first, but before becoming a landlord, it’s important to truly understand what you’re in for. Here are some important things to ask yourself before considering this option:

- Can you make a profit?

It’s important to really crunch numbers before deciding to become a landlord. There are many hidden expenses that many people don’t realize before setting out on this venture. There are property taxes and insurance requirements, along with fees if you hire a professional to manage the property.

Those fees can really add up, and after crunching the numbers, you may realize that it will be difficult to make a profit. The exception is if you own the home outright. Then, the majority of the monthly rent payment will just be profit as opposed to covering the current mortgage.

- Have you considered the worst case scenarios?

Ask any current landlord, and they most likely have a couple horror stories for you! People who are renting typically don’t care for the home as well as if they would if they were paying the mortgage, and you never know what could happen to your home.

Even applicants who are well-screened may run into financial troubles and put you in a bind. For example, you may find a tenant with a great background and great credit, only to have that tenant lose their job and have to declare bankruptcy a couple months into the lease. Even after taking the time to screen applicants, a lot can go wrong, and you need to be prepared for the worst case scenarios if you decide to rent out your home.

- Are you willing to wait for the right tenant?

Although you never really know what’s going to happen, you will definitely improve your chances by finding a tenant with a clean history and credit report. Unfortunately, finding the right tenant takes time, and if you need to rent out your home for income purposes quickly, you may risk getting a high-risk tenant.

If you are considering becoming a landlord, it’s best to only do it if you can take the time to find the right tenants. After all, this is your home we’re talking about!

- Should you hire a professional?

If you or your spouse is very handy, and have the time to put into being a landlord, than it’s entirely possible to not need the help of a professional. Many people underestimate the amount of work involved in being a landlord – from the very beginning finding tenants and doing background checks through the entire lease, where you may get called in the middle of the night with a plumbing issue.

If you’re not prepared to handle all of this yourself, you will have to pay a professional, and it’s typically not cheap. However, you’ll wind up with someone screening the applicants to make sure you have good candidates for tenants, and who also have a professional maintenance staff to tend to any issues that may arise in your home.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 3 Housing Changes We've Seen This Year

daniel@realtypin.com Daniel Torelli — Fri, 12 Apr 2013 08:36:47 GMT

It seems like New Year’s Eve was only yesterday, but it's already April, and the blooming flowers are telling us that springtime is here! This is typically the time of year when home sales increase because more sellers list their properties, and because more prospective buyers are willing to go house hunting now that the winter chill is a thing of the past.

But if the first quarter of 2013 is any indication, this year’s housing market will end up being much different than last year’s. Among all of the changes we've seen, these are the three that we think will have the biggest effect on the market during the rest of the year:

1. Low inventory

Just a couple of years ago, the housing market was flooded with inventory. Millions of homeowners lost their homes due to foreclosure after the economy's collapse, so the market was littered with distressed properties. Some of those homes were in great condition, and turned out to be a steal of a deal for the buyer who purchased them from the bank. Others were left in shambles after their owners moved out, and the excess of properties for sale made home prices hit rock bottom. That caused many homeowners to become underwater with their mortgages, meaning they found themselves owing more on their home than it was worth.

The result? Investors – both individuals with money and private equity firms – started purchasing all of the distressed properties as investments, and the market slowly started to turn around. Now that the glut of distressed properties has been purchased, we’ve gone from too much inventory to not enough!

In most cities around the country, there is less than a 4.5 months’ supply of homes for sale. That means at the current sales pace, all of the homes currently listed would sell in less than 5 months! Realtors consider a market with a 6 months’ supply of homes “healthy” and “balanced”, so clearly the lack of inventory has turned the real estate industry into a seller's market.

2. Home prices are climbing

Because there's a lack of inventory, home prices have spent the beginning of 2013 going up. Month-over-month and year-over-year comparisons show substantial increases in median home prices.

Why?

An influx of eager buyers with a lack of homes to choose from leads to bidding wars. So, as long as there are prospective buyers who want to buy a home, but not enough inventory on the market to accommodate everyone, expect the trend of rising home prices to continue.

3. Changes to FHA-backed loans

Loans that are insured by the Federal Housing Administration (FHA) have always been the top choice among buyers who don't qualify for conventional loans, but they've gained in popularity in recent years because of tougher underwriting guidelines from lenders.

Remember, after the housing market's collapse, lenders became much more strict as to who they would approve for a mortgage. Many now require than an applicant have a FICO credit score well above 700 and have the means to put a 20% down payment on the home. If neither of those criteria is met, chances are the prospective home buyer's mortgage application will be denied.

This is where FHA-backed loans come into play. Because these loans are insured by the FHA, lenders are more willing to grant this type of loan to a borrower with poor credit or a low down payment.

FHA loans only require a 3.5% down payment, but the borrower must pay an annual mortgage insurance premium (MIP) on the loan. In January, the FHA announced it was increasing the MIP for most new mortgages by 0.10%. While that's still significantly less than making a 20% down payment, the increase may make homeownership a harder goal to obtain for some Americans.

Each of these three factors, along with several others, will determine the speed at which the housing market returns to a stable level, but if the first quarter of the year is any indication, we're headed in the right direction!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 3 Things to Know About Today Investors

daniel@realtypin.com Daniel Torelli — Thu, 11 Apr 2013 18:11:12 GMT

Investors have always used the real estate industry as a way to make quick cash, but how they've played the game over the years has been dictated by the health of the housing market.

For example, in the early-to-mid 2000s, investors bought homes and quickly sold them for a profit. Over the last couple of years, they continued buying homes – but decided it was better to hold onto them for awhile so that the housing market could recover. In the meantime, they rented the homes. Now, the strategy has changed again. With rental rates falling, investors have to be pickier with their purchases.

So, how are they operating these days?

To answer that, you need to check out our top 3 list of things that the everyday American homebuyer needs to know about investors:

- They always bring cash to the table

No matter the circumstances, investors know that the quickest way to complete a transaction is to pay with cash, so they come to the table with plenty of it in hand.

Across the nation, there's a shortage of inventory available, so home prices are rising quickly. In fact, home prices increased 10.2% from February 2011 to February 2012, marking the biggest year-over-year gain since March 2006. When there are fewer homes for sale, the highest bidder usually wins. However, investors have taken it one step further. They’re ensuring that they get the homes they want by making all-cash offers. Unfortunately, this has frustrated many traditional buyers who are looking to purchase a home as their primary residence.

If you don't have the means to make an all-cash purchase, you may lose out on the home of your dreams! Simply put, money talks, and investors usually have more of it than the average home buyer.

- You can follow their lead

For the past couple of years, the best way to make a profit in the housing industry was to purchase a single-family home and rent it out as a landlord. Investment firms did this, but so did everyday individuals who had the financial means to buy properties.

But since the institutional investment firms often have economists on staff who track return on investment for all of their purchases, these folks have realized that the days of making a profit off of rent are over. After all, rental rates have started going down!

Now, investment firms are now selecting homes by their location, nearby schools, local crime rate, etc., instead of trying to determine which home will rent the fastest. Individuals who are playing the real estate game should follow their lead and do the same. Instead of picking out properties based on their rental value, look for a home that has a good location that will make it an easier sell in the future.

- They’re ready to sell, as soon as the time is right

For the past few years, the number of Americans renting their residence has increased, while home ownership has declined each year. In 2012 alone, the number of rental households increased by 1.1 million! That's because of the number of homeowners who lost their homes due to foreclosure or short sale as a result of the housing market's collapse. These former homeowners have to wait a certain amount of time before they qualify for a home loan again, and it's based on the severity of their financial crisis.

But for many of these people, the mandatory waiting period is coming to an end. Economists expect many of these individuals, referred to as a “boomerang buyers” in the real estate industry, to start looking to buy a home again.

What will happen when they do?

The demand for homeownership is already high, and adding more prospective buyers into the mix means home prices will keep going up. This will influence more homeowners to list their properties for sale, and investors plan to be among the first to do so. If you own a home and want to sell it, you shouldn't be far behind them!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 4 Reasons to Make Your Home Renovations Green

daniel@realtypin.com Daniel Torelli — Thu, 11 Apr 2013 12:43:33 GMT

It seems like everywhere you go these days, you hear the phrase” going green”. Going green is very trendy right now, as evidenced by things like hybrid cars and carbon footprints being turned into common conversation topics.

But do you really understand all of the benefits associated with this trend?

Going green is essentially choosing alternatives that are better for environment, typically because they use fewer fossil fuels. Going green can also mean using less energy, recycling, or making other smart choices that are environmentally-friendly.

Green home renovations are a great way to add value to your home while helping the environment.

Here are our top 4 reasons why you should make your next home renovation project green:

1. You can protect the environment

Green homes reduce your carbon footprint and, therefore, make Mother Nature happier. By using fewer fossil fuels, you can help to sustain the world around you. Although it may be a long time before we run out of these energy sources, it’s important to protect future generations. Luckily, it’s easy to create a home that protects the environment! All you have to do is take on projects like installing a high-efficiency HVAC unit or installing solar panels on top of your home.

2. You can save a ton of money on your utility bills

Not only does going green reduce your carbon footprint, but it also puts more money in your wallet! Although the upfront costs of green renovations are typically higher than a normal renovation, you can expect to see about 15% savings on your energy bills once everything is up and running. If you have a larger home, or tend to have high utility bills, that can be a significant savings – meaning that most, if not all, green renovations more than pay for themselves over time!

Installing a high efficiency air conditioner – especially if you live somewhere with hot, humid summers – can pay for itself within a year. You may not even realize how much energy your older, less efficient air conditioner is using right now, but you will definitely notice the savings once you get your first utility bill after the switch!

3. You can add value to your home

Although the ROI hasn’t quite caught up to the trend, soon you will see significant value added to homes that have green renovations. And, not only will your home be worth more, it could also sell quicker! Many first time homebuyers specifically look for homes that have been upgraded with green features.

4. You can improve your health

Did you know that a green home can actually keep you and your family healthier? That’s because energy efficient homes include special weatherization that keep water out and, thus, prevent mold from forming. Mold has been shown to cause many different health problems, and having just a little bit of it can be very dangerous for you and your family.

Air-sealed homes also keep out dust and pollen that can affect allergy sufferers, asthma patients, and all kinds of other respiratory problems. You might be surprised to see just how much dust and pollen can come into your home through a faulty air conditioning unit or through leaky windows!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Ways to Beat An All-Cash Home Buyer

daniel@realtypin.com Daniel Torelli — Wed, 10 Apr 2013 18:03:39 GMT

You may think that the only way to beat an all-cash buyer is to bid much higher on your dream home. Although having a higher bid certainly won’t hurt, you don’t have to necessarily hurt your wallet in order to beat an all-cash buyer.

Sure, many sellers like cash, because it’s quick and easy – but in reality, home financing can be quick and easy, too! As long as you make things easy on the seller, you can get ahead of all-cash buyers without having to go overboard with your bidding.

How exactly do you do that?

Here are our top 5 ways to beat an all-cash buyer:

1. Make sure you are well-qualified and pre-approved

The reason sellers like cash is because they know it’s a done deal. If you make an offer that requires financing, the best thing you can do to increase your chances is to be pre-approved by your lender and well-qualified for the seller’s asking price.

To prove just how prepared you are, get a letter from your lender that states you are well-qualified for this loan. This will show the seller that you won’t lose your financing at the last minute. If the seller sees that your financing is just as stable as another person’s cash, you have a strong chance to get the home.

2. Work with a quality lender

Not only should you get a letter proving your financial backing, it should be from a quality, well-known lender. A mortgage guarantee from an unknown lender won’t be too impressive – especially next to someone who is offering cash. So, find a lender that can approve you and assure the seller that the mortgage is essentially guaranteed by someone they’ve heard of and can trusted.

3. Be persistent

You don’t have to be pushy, but you should give the seller some friendly reminders that you really want their house, and that your financing is good to go. You’ll need to enlist the help of your realtor in this endeavor. He can find out what the seller is looking for – aside from the financial terms. Maybe they are looking for a quick sale with easy terms, or maybe they’re simply looking for someone who will take the washer and dryer that they don’t have room for in their new place. Go above and beyond to find out what the seller is truly looking for, and then do your best to deliver.

4. Humanize your offer

A home is not just an investment for many people, so humanizing your offer could go a long way. A cash buyer may be the easiest, but many people want to know that their home is going into good hands. So, write a letter to the homeowner explaining how much their home means to you, and why you are the best candidate to take care of it. You’d be surprised at how effective this is when it comes to closing the deal!

5. Keep it simple

Mortgages and financing is complicated enough already, so if you are up against a cash offer, keep the rest of your negotiations as simple as possible. Don’t ask for a complicated closing with tons of terms and stipulations. Many people don’t want the added stress of a complicated contract, and they will typically take the easy offer – even if it means having to deal with someone who is financing the purchase, instead of paying cash!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What's Life Like for Today's Boomerang Buyers?

daniel@realtypin.com Daniel Torelli — Wed, 10 Apr 2013 13:16:11 GMT

If at first you don't succeed, try again! That seems to be the personal motto for today’s boomerang buyers!

It's been well documented that millions of Americans lost their homes due to foreclosure after the housing market's bust a few years ago. Many of those same people had to file for bankruptcy, get credit assistance, or endure other financial hardships along the way. But now that they've fixed their credit report and restored their finances, they are ready to buy another home.

The real estate industry calls these people “boomerang buyers”, and experts anticipate millions will return to the housing market in the years to come. In fact, a recent study by a real estate consulting firm estimated that of the 4.7 million homeowners who lost their homes due to foreclosure or short sale, 70% will return to homeownership within 8 years! Since the start of the housing bust began six years ago, many of these boomerang buyers are already testing the market again.

And, apparently, they’re making a real dent in the market!

The same study says that returnees now account for 10% of all home sales nationwide. That’s 4% higher than it was a year ago, and estimates they'll stay at that level until 2016, which would make sense. After all, 2016 will mark 8 years since the housing crisis began!

We've already established the rocky path that many had to travel to get back from financial ruins, but what about the road that lies ahead? Is homeownership actually an obtainable goal for these individuals? If so, what can they expect?

Economists say that depends on how the boomerang buyer spent their time during the last few years. The average boomerang buyer can qualify for loans again in 3 to 7 years, depending on if they had a foreclosure or had a foreclosure/bankruptcy combination.

If they spent that time saving their money, paying off past-due debts and restoring their credit score, many are finding that lenders are willing to give them a second chance. And, as an added benefit, they are often paying less for a home now than they did last time! That’s because interest rates remain below 4%, and even though home prices are rising, they are still 30% below their 2006 peaks. So, many boomerang buyers who lost their homes due to the housing market's collapse are now benefiting from its slow recovery!

Most of these buyers know the exact date they can qualify for a mortgage again, and they are getting loans from the Federal Housing Administration that have lower down payment and credit score requirements than conventional loans. After all, with a FHA-backed loan, a boomerang buyer only needs to make a 3.5% down payment and have an average credit score of 717 to qualify. Compare that to the 20% down payment and average credit score of 767 that most conventional loans require, and you can see why many are opting to go the FHA route!

Financial experts say if they have one piece of advice for boomerang buyers – that they should focus solely on repairing any damage done by the foreclosure during the mandatory waiting period. That way, they will be financially prepared to prove they deserve a second chance when the opportunity arises.

It’s so far, so good for returnees in many markets. In fact, boomerang buyers now account for up to 40% of home purchases in Phoenix and 20% in San Diego, and other cities like Atlanta, Miami, Washington D.C., Chicago, and Orlando have also reported increases in boomerang buyer purchases. Economists anticipate similar rates in other cities around the country as more homeowners who lost their homes to foreclosure begin to complete the circle and qualify for home loans once again.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Can You Expect During the Spring Home Buying Season?

daniel@realtypin.com Daniel Torelli — Tue, 09 Apr 2013 16:06:47 GMT

Spring has finally arrived, and it’s typically the best time for the real estate industry. Although the past few spring seasons have been somewhat dismal because of the recession, this year seems like things are finally going to start turning around. With the spring home buying season upon us, here is what you can expect:

1. Bigger steps towards housing market recovery

Realtors have high hopes for this year’s spring season, and with the recovery well underway, there is reason to believe that this spring will help the nation’s housing market take even bigger steps on the road to recovery. Although there will be hurdles along the way, this spring seems to show positive signs toward recovery. Why? Low interest rates play a huge role, After all, they encourage more people to buy. Since they’ll be staying low for the foreseeable future, this spring should show positive growth.

2. Low inventory

If you are looking to purchase a home, you need to know that this spring is proving to be a seller’s market. There is a lack of inventory nationwide that doesn’t seem to be getting much better. Since property values have decreased so significantly since their peaks, sellers are waiting until the value of their home increases. That means for now, you’ll have to deal with a limited number of homes to choose from. However, the low inventory is driving home prices up – which, in turn, is encouraging more people to consider selling. At the current rate, though, the inventory just can’t meet the demands of hungry buyers. So, in the meantime, the sellers who do venture into the market will get to essentially take their pick from a pool of buyers.

3. Home price gains

Because there are more buyers than sellers these days, the low inventory is driving prices up. That increase in property value is good for the housing market recovery, but some prices are going higher than the experts could have predicted because the inventory is so low. Even though those rising property values aren’t quite enough to drive more sellers into the market, expect to see big strides in selling prices during this spring season.

4. Tough finance requirements

Although interest rates are still hovering above record lows, it’s not easy to receive financing. Because of the recession and the high foreclosure rate, banks have been forced to tighten up their lending restrictions. The banks are also requiring much higher down payments than they did in years past, which makes it even more difficult for some buyers to get the home of their dreams.

What does that mean for the spring buying season?

Some buyers will need to rent for longer than they want to, either to repair credit issues or to save additional money for the higher down payments that are being required. It’s not just affecting buyers, though. The strict financing requirements are also affecting home builders who can’t receive the capital they need to build new homes. This is actually helping to keep the inventory low! For builders that don’t have a lot of cash on hand, they’re stuck watching prices go up – without enough capital to dive into the market themselves.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Detroit Real Estate | Who's Leading the Way for Detroit's Housing Recovery?

daniel@realtypin.com Daniel Torelli — Tue, 09 Apr 2013 16:04:06 GMT

The Motor City's housing market continues to make strides each month, as statistics show that every county in the metropolitan Detroit area has seen its sales go up this year. Home prices and the number of home sales have both increased by double-digits in year-over-year and month-over-month comparisons.

So, who is the driving force behind the housing recovery?

DINKYs!

This real estate market is now being controlled by “double-income, no kids yet” couples or the acronym, DINKYs. These buyers aren't purchasing the typical starter home that their parents’ generation bought. Instead of buying a smaller, more affordable home, these buyers are opting for homes in the $250,000 to $300,000 price range.

How can they afford that?

In general, people are getting married later. The U.S. Bureau reports that from 1962 to 2012, the average marrying age jumped 6 years. Since people are older when they get married, they are also having kids later. Plus, they are more likely to have two incomes when they go house hunting. The societal demographics in Detroit mimic those around the country, so realtors say it's much of the same here as it is elsewhere.

Simply put, today's first-time home buyers aren't interested in buying a small house just to get their foot in the door, but are instead buying a home that will work for them long-term. Many have decided that they have the income to purchase the home they truly want, instead of buying something now, knowing that they'll have to upgrade in the future when they have kids.

Young professionals today are more likely to have a college education than their parents’ generation, so therefore, they are making more money at a younger age. In Detroit specifically, there has been a recent influx of high-paying jobs in the energy and financial industries that have brought wealthy buyers into the area. Add to that the fact that mortgage interest rates remain below 4% for a fixed 30-year mortgage, and you can see why these buyers are choosing to go big rather than small!

Economists suspect that today's first-time home buyers in Detroit would rather pay now for the home they want and make changes down the road when kids come along, instead of having to search for a new home when their family expands.

In the meantime, though, these buyers aren't skimping on themselves! Realtors in the area say the first-time home buyers who are driving Detroit's housing recovery are willing to pay the additional money for luxurious amenities like granite countertops, walk-in closets, stainless appliances, bigger bedrooms, hardwood floors, updated bathrooms, and state-of-the-art kitchens.

While not everyone can afford the types of homes that these buyers are purchasing, every homeowner in Detroit is benefiting from it. After all, as the sales of higher-end homes increase, the median sales price for the entire metro area also rises. This helps underwater borrowers – meaning those homeowners who owe more on their home than it's worth – because the value of their property gets closer to the original price that they paid for it. Although home prices are still in another galaxy compared to their peak in 2006, as they inch closer, more homeowners will begin to list their properties since they won't be losing as much if they decide to sell.

In the end, DINKYs will play a huge role in Detroit’s future housing success!

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How Hard is it to Buy a “Green” Home?

daniel@realtypin.com Daniel Torelli — Mon, 08 Apr 2013 15:10:29 GMT

Going green for your next home is not only good for the environment, but it can also save you tons of money on your utility bills in the long run. In fact, many people are updating their home with energy efficient appliances and other green upgrades usually with the added bonus of significant savings on their utility bills.

Most homebuyers are searching for these green homes (in fact, green features are right at the top of the “wants” list for many buyers!), but there can be some big hurdles during their search. Finding and purchasing a green home is certainly easier said than done. Thanks to a variety of issues, it’s more difficult than you would assume to find these homes!

What exactly is the problem?

- Supply
Although going green has become very trendy, many people have yet to update their home to make it energy efficient. Americans, as a general rule, prefer the instant satisfaction of upfront savings as opposed to savings over a long period of time. Therefore, the number of homes that actually have these updates is limited. Since these homes are in high demand, especially among first time homebuyers, you may find it more difficult to find one of these homes, because the supply just isn’t as strong as the demand.

- Cost
Energy efficient upgrades increase the value of the home, which means you are going to pay more for a home that has these upgrades. Although the extra savings will typically be made back over time because of the decrease in utility bills, the added upfront cost is pretty significant. Right now, that added cost is coupled with the low supply of homes – which makes these homes even pricier. A recent survey showed that nearly 95% of homebuyers listed energy efficient upgrades on their list of “wants” for their home. Since the supply is far less than the demand, expect to pay quite a bit more for a green home than a home that has not been upgraded!

- Appraisals
Unfortunately, appraisers have not yet caught up with green technology. Most appraisers don’t consider energy efficient features when appraising the home and pulling comps in the area. Furthermore, since the technology is relatively new, the research on actual savings may be outdated, incorrect, or inexistent.

How does this affect you?
If the appraiser does not correctly factor in the value of the energy efficient upgrades in the house, both you and the seller may suffer when the home appraisal is sent to your lender.

- Multiple Listing Service
Probably the most challenging and frustrating aspect of buying a green home is actually finding one in the first place! The MLS is where most real estate agents and buyers begin their search, but the MLS has not caught up with the trend of advertising the energy efficiency of homes. Although many new homes automatically come with green features, there is nowhere on the MLS to list the energy efficient features of older homes. Currently, only about 25% of MLS services have an area to list energy efficiency and green features.

Although people are starting to realize the need for this information, the inclusion of this information is not occurring quickly enough to satisfy green shoppers who are stuck searching far and wide!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Important is Light to Your Home?

daniel@realtypin.com Daniel Torelli — Sun, 07 Apr 2013 14:33:40 GMT

The lighting in your home is probably not something you think about until something is wrong with it. After all, people rarely notice great lighting, but they definitely notice when the lighting is bad! Waking up every morning with sunshine hitting you in the face, or having florescent lighting in your bathroom that make your skin look yellow can really be an annoyance.

So, before you move forward with your next renovation project, sit down and give some thought to how important the right lighting is to your home. Even though most people don’t take this step, there are lighting experts out there who can help you plan out the lighting in your renovation to make sure it doesn’t completely spoil the final result.

Whatever you do, don’t wait around to focus on your lighting! If you’ve sort of considered lighting options for your home – but think it’s better to make a final decision after you’ve completed the renovation – chances are high that you are going to be disappointed. After all, the lighting around your home isn’t as simple as what type of light bulbs will have the best affect in your home. Instead, lighting decisions require careful consideration – along with internal plans that you can give to an electrician so that he can wire your home properly to optimize all of its lighting capabilities.

After you initial plans are drawn, take the blueprints into the studio of a lighting expert. The lighting expert can look at your plans, understand your intentions of each room that you plan to renovate and help you decide what type of lighting would be best and where.

Greg Chambers is a lighting expert. He tells all of his clients to “do some homework, go through publications, magazines and the like and see how everything fits together. When they get a sense of what they want and what feeling they want to create in the space, consult with a lighting designer. The one thing which changes a space the most is lighting and some people are very much affected by lightings so it is very critical to the success of the project.”

If you talk to a good lighting expert, he can show you the difference between different types of lighting. That way, you’ll be able to see how each one makes you feel. You’ll also be able to see how appropriate the different types of lighting would be in different areas of your home.

Electrical lighting isn’t the only type of lighting to take into consideration for you home, though! Your windows, window treatments, and the natural light that flows through them are also an important consideration for your home.

Although you may love the picture window in your living room and the views you get, it may prove to be a big annoyance when the sun is shining directly on the TV in the late afternoon. The same may prove to be true when the sun wakes you up way too early on a Saturday morning through the big picture window in your bedroom.

Although you may not see the importance of a lighting designer before you begin the project, if something happens after the project is over, you will definitely notice if the lighting is off. At that point, you may realize that your brand new renovation turned out completely different than you had planned – and it may even require a new renovation project just to get the lighting right!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

NYC Buyers Searching for Fixer-Uppers

daniel@realtypin.com Daniel Torelli — Sat, 06 Apr 2013 19:49:40 GMT

Housing inventory is tight across the country, but it's even worse in “The City That Never Sleeps.” Manhattan is the smallest – yet most densely-populated – borough of New York City. Finding affordable housing here has always been a problem, even when the housing market was doing well, simply because of the number of people wanting to live in the epicenter of American culture. So you can imagine how difficult it can be for a buyer to find a home in their price range these days with such a limited supply of homes for sale!

Just how limited is the inventory?
The number of listings in Manhattan fell 34% from the fourth quarter of 2011 to the fourth quarter of 2012. In fact, the inventory level in the fourth quarter of 2012 was the lowest on record over the last 12 years!

Why?
Like much of the rest of the country, homeowners in New York are either unwilling to sell their home, or would like to sell, but simply cannot afford to do so because they are underwater on their mortgage. The result has been anemic inventory, so many homebuyers in New York City have turned to a cheaper but more labor-intensive alternative – they are buying fixer-uppers. These homes, also called “wrecks” among realtors, are properties that are in need of serious repair. They are significantly cheaper to buy, but require a lot of remodeling and renovations before they are ready to be lived in. Some buyers consider this to be too much of a hassle, but an increasing number are going this route. The president of Miller Samuel, a leading real estate appraisal firm in Manhattan, recently told the New York Times that when his company tracked the sales of properties listed as “wrecks” or in “fair” or “poor” condition they noticed an 83% increase from December 2011 to December 2012.

So, what’s behind the soaring increase?
More people are deciding that they'd rather purchase a run down property and pay to renovate it they way like, instead of shelling out tons of money for a home that may or may not fit their style. After all, like most other cities around the country, New York City's housing market has turned into a seller's market. Most homeowners who have their property listed are receiving offers from multiple buyers, so they’re the ones with all the leverage. Many sellers have decided that they will not budge on the listing price, and they’re watching and waiting as competing buyers try to outbid each other.
The situation has frustrated some buyers, so they have decided to buy a cheaper “wreck” property and invest their money in the renovation of their newly-acquired home, instead of spending it on a bidding war.

In fact, buying wrecks has become such a popular trend that many realtors and online real estate listing services have created a search engine option on their websites where house hunters can specifically search for “unrenovated,” “needs work,” “wreck,” or “fixer-upper” properties for sale in the New York City area! Analysts say that high-end luxury homes (mostly condominiums and townhomes) will always dominate the Manhattan market, but they expect the “fixer-upper” trend to continue to be a popular option among buyers who can't afford those high-dollar homes.

Bottom line – expect to see a lot fewer “wrecks” around New York City in the not-so-distant future!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Does the “Sandwich Generation” Mean for Housing?

daniel@realtypin.com Daniel Torelli — Fri, 05 Apr 2013 14:48:37 GMT

The recession has created a new phenomenon in American culture called the “Sandwich Generation”. That’s because middle-aged couples are finding themselves living sandwiched between their children who have returned home after college, and their aging parents who need to live with them in order to get special care.

The Sandwich Generation is proof of how the recession changed the dynamic of the typical family household. Gone are the days when a household consisted of just the nuclear families. Instead, the economy’s crash has prevented older generations from being able to afford assisted living homes, and it has prevented younger generations from finding employment after college. In fact, 30% of young adults between the ages of 25 and 34 have reported living with their parents during some point of the recession!

Even young couples just starting out or young families who are saving up for a down payment on their home are moving in with their parents to save money. To allow this type of atmosphere to work, homes need a certain amount of privacy to sustain this type of living arrangement even for short periods of time.

So, how has all of this affected the housing market?

As the number of multi-generational households skyrocket, realtors are seeing the effects of these changes with new builds and housing remodels. Many households are adding a second master suite for either their children or their parents. An added room on the opposite side of the house is a popular addition to accommodate this type of household because it offers more privacy than a bunch of bedrooms all on top of each other.

Basements have become popular renovation projects because homeowners can add kitchens and bathrooms for some form of independent living for young adults or their families. These renovations are not practical, however, for the older generation because the stairs can be dangerous and difficult to climb.

Apartments above garages are also becoming popular for the sandwich generation, as long as the older generation can still maneuver up and down the stairs. For those families with a little extra income, elevators combat the issue of the stairs. Either way, these apartments offer the privacy and independence that this older generation that many want, but they still offer easy access should issues pop up. And, these apartments are typically much more affordable to add than completely separate housing (like a stand-alone guest house).

Although many of these renovations add a lot more living space, today’s homeowners are becoming much more practical with their renovations and their space. Gone are the days where people wanted the biggest house on the block with rooms that had no real function or purpose. “McMansions” seem downright silly to many buyers today. In fact, they’ve come to realize just how much waste there was during better economic times!

As a result, houses are now being built and renovated with just enough size to accommodate the multiple generations in the household, but without unnecessary space. Homes are being built smarter instead of just larger to allow for the accommodations of the parents and the children of the Sandwich Generation.

Although the economy is slowly recovering, the tough times that most Americans have faced will stick with them for years to come. Impressing their neighbors with overly-spacious homes seems silly now after such a deep recession. Now, the only reason for extra space is to help accommodate either their parents, their children, or both!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Will Mortgage Rates Rise Like Home Prices Have?

daniel@realtypin.com Daniel Torelli — Fri, 05 Apr 2013 14:43:01 GMT

There's no doubt that home prices around the country have risen in recent months, thanks in large part to historically low interest rates. In fact, as the economy continues to recover and consumer confidence rises, more Americans are buying homes. Many are doing so now while interest rates remain low.

But what about the rates themselves? Will they be going up anytime soon, like selling prices have?

The interest rate for a conventional, 30-year, fixed-rate mortgage has hovered around the 3.5% mark for over a year, but economists expect it to rise above 4% sometime this year.

The recent surge in home purchases has created a shortage of inventory, and with demand for homeownership so high, the real estate industry has become a seller's market. That basically means that sellers have all the leverage, and in some cases, have multiple bidders making offers on their home. When that happens, sellers can hold firm to their listing price and not have to accept a lower price offer.

The lack of inventory has led to a spike in home prices, and when home prices increase, it generally means that the overall economy is healthier. So, when the Federal Reserve sees that the economy is gaining ground, they can cut back on purchasing mortgage-backed securities every month, which has been keeping interest rates low for the past year.

In layman's terms, as the economy regains consciousness, the Fed takes it off life support!

The banks will get involved, too. More demand not only helps sellers get more money when they sell, but when the number of prospective buyers applying for a loan increases, banks also try to take advantage of the situation, and raise interest rates. After all, that’s where their profits come from!

On one hand, higher interest rates are a good thing. They indicate that the economy is recovering, but, on the other hand, if they get too high, the incentive to go out and buy a home fades a bit. Right now, consumers who can afford to buy a home know that they can get a really low interest rate, which will make their monthly mortgage payment cheaper. If rates increase significantly, that may discourage some prospective buyers from purchasing a home, opting instead to hold onto their money until rates drop again in the future.

So, can we really expect all of this to happen soon?

Economists at the National Association of Realtors say that interest rates will definitely go up, but they won’t increase as quickly as home prices have. They say that the time to buy a home is now, but with a shortage of homes listed on the market, that's easier said than done.

Another factor that could push interest rates up is changes to Federal Housing Administration-insured (FHA) loans. Many homebuyers who don't qualify for traditional loans gets mortgages backed by the FHA that don't require large down payments, but do require a mortgage insurance policy. The FHA recently raised mortgage insurance premiums on their mortgages by 0.10%. In attempt to avoid the additional charges, many borrowers applied for and received a case number before the changes went into effect on April 1st.

That surge in loan applications may also cause interest rates to rise, but no one knows how much they'll climb because many factors play into interest rates. One thing is for certain though – if you’re looking for a good deal, the time to buy a home is now!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Hard is it to Get a Mortgage These Days?

daniel@realtypin.com Daniel Torelli — Thu, 04 Apr 2013 15:30:50 GMT

If you're considering buying a home – but aren't sure if you'll qualify for a mortgage under current lending guidelines – you aren't alone. Some analysts say it's almost impossible to get a mortgage, while others claim it's relatively easy.

So, who should you believe?

The truth lies somewhere between the two extremes.

Banks are willing to lend to qualified homebuyers. That’s an established fact. So now, the question becomes “what classifies you as qualified?”

According to some financial experts, banks have reverted back to their standards from 10 or 15 years ago. That’s a big change from the housing boom in the early and mid-2000s, when it seemed like almost anyone could get a mortgage. Low credit scores, lack of a down payment, and a low income still weren’t enough to scare off lenders who were cashing in on the housing market's success!

The result? Many banks gave sub-prime loans to consumers with credit scores in the 500s, and that ultimately led to the housing market's collapse. People who did not have the finances or credit accountability needed to be a homeowner were buying homes anyway, and eventually, they defaulted on their loans. That led to a market flooded with foreclosures and short sales, and many lenders were forced to either cease operations or take significant financial losses for their mistakes in judgment.

They apparently learned their lesson, and tightened up their lending guidelines. Most lenders now require a minimum FICO credit score of 640 and a 20% down payment on the home. Those standards are consistent to what banks required prior to the housing boom, so if you meet these requirements, getting a loan approval shouldn't be an issue. After all, banks like lending out money to people they know will pay them back because they get to make a profit from the interest! As long as they think you're a qualified candidate for homeownership, a lender is going to approve your application.

That’s a big step, because there is a limited supply of homes available right now. In many scenarios, sellers are only considering offers from buyers with pre-approval for a loan. As the economy, stock market, and housing industry continue to recover, demand for homeownership has risen. It's become a seller's market because there are more people wanting to buy a home than there are homes currently for sale.

Sellers know this, so they know they can afford to be firm on their listing prices. Lenders also know there is a shortage of inventory, so they are also aren't going to waste time approving a loan for someone who can't pay them back and can't afford a home at current sales prices anyway.

In other words, as long you have your financial ducks in a row, have saved up enough money to pay a 20% down payment, and proof of income showing that you can afford the monthly mortgage payment, you're likely to get approved as long as you apply for a loan in your price range.

See, the mortgage industry isn't all doom and gloom. If you're among those who should get a loan, you will likely hear your lender say the magic word, “Yes!”

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

New Homes Selling Slower – But for More Money

daniel@realtypin.com Daniel Torelli — Thu, 04 Apr 2013 15:28:51 GMT

Sales of newly-built single-family homes dropped off in February, but that doesn't mean the housing market's recovery is stalling.

According to a report released by the U.S. Commerce Department last week, new home sales in February fell to the seasonally adjusted annual rate of 411,000 units, which is down 4.6% from January's numbers. January's sales pace was the highest since September 2008, so economists expected a slight decrease in February. They predicted February would see a 422,000-unit rate, but the number was even lower. Still, though, new home sales in February were still 12.3% higher than they were in February 2012.

Analysts say the month-to-month decrease coupled with a simultaneous year-to-year increase proves that the housing recovery is still underway, but has been temporarily slowed down by a lack of inventory. After all, many homebuilders are building new homes as quickly as they can, yet in some areas, it seems even that isn't fast enough!

Just how low is the inventory of new homes?

In February, it rose to 152,000 units in February. However, that’s still very close to the all-time record low. As a result, there has been a lag in sales, and some economists worry if builders will be able to keep up with demand in the months to come.

At February's sales pace, it would only take 4.4 months for all of the homes currently listed nationwide – new or existing – to sell. That's up from 4.2 months’ supply in December, but is still well below the 6.0 months that is considered a healthy balance between supply and demand.

The spring is typically the busiest time for real estate transactions, with more homes selling between March and July than any other time of the year. Economists think more homeowners will list their properties in the months to come, which would boost the low inventory. More existing home sales would lead to a higher number of new home sales as well. After all, homeowners who want to buy a newly constructed home can't purchase it until the one they are currently living in sells!

Higher sale prices for existing homes should encourage more homeowners to list their properties, but only time will tell how many actually take the plunge and put a “For Sale” sign in their front yard.

Until inventory of all kinds – new or existing – increases, sale prices will continue to climb!

Take a look at February's statistics for proof. Although fewer homes sold than the previous month, the ones that did went for higher prices! The Commerce Department reports that the median sales price for a new home increased 3% from January of this year (up to $249,000 right now), and is up 2.9% from February 2012.

If inventory rises – meaning more homeowners put their current homes on the market, and builders keep constructing new homes at their current pace – the situation should correct itself, and home prices will level off.

But until that happens, it's a seller's market, so don't be surprised when the March numbers are released to see the median sales price of new homes increase once again. After all, there are plenty of eager buyers out there and not enough homes for all of them to purchase!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Luxury Homebuyers Want

daniel@realtypin.com Daniel Torelli — Wed, 03 Apr 2013 14:27:34 GMT

The Top 3 Things Luxury Homebuyers Want

Most homebuyers set out on their search with a list of their needs and wants. With their budget in mind, they know what they can afford to get their needs, and hopefully get a few of their wants as well. But when it comes to luxury homebuyers, there is very little difference between the needs and wants. Since their budget is typically very high, they can set out to get everything they want – and more – without much difficulty. Something that may seem extravagant to a normal shopper is essential to a luxury homebuyer. The biggest difference between today’s luxury homebuyers and the big-budget buyers of old is function. They don’t just want a lot of space; they want every inch to serve a particular purpose. People are not interested in having 40,000 square foot houses if most of the house is just going to waste.
That being said, here are the top 3 things that today’s luxury homebuyers want:

1. Great views
One of the most important things homebuyers are looking for when it comes to luxury homes is great views. Even if the home isn’t near the beach or in the mountains, luxury home shoppers want to see something pretty. Homes with big picture windows that overlook the city lights or surf pounding the shore are in high demand for luxury homebuyers. For example, homes in the Hollywood Hills of Los Angeles have larger property values, because of the views of downtown that extend all the way out to the beach. If it’s a luxury home in a metropolitan area, homebuyers want to see landmarks, parks, or bridges. No matter where the home is, the view had better be a good one – and it’s not just one great view either. Luxury homebuyers want to see great views from their kitchen window, their bedroom, and even their garage!

2. Room to entertain
People who own luxury homes want the capabilities to entertain themselves and their guests. Many luxury homebuyers require a basement for bowling alleys, theaters, and bars. These rooms typically aren’t appropriate for other areas of the home, so a basement is usually necessary to make these upgrades. A big backyard is also a must for luxury homebuyers. That way, that they can install a pool and bring in a state-of-the-art BBQ – or even a gourmet outdoor kitchen! A luxury home must have the space to be able to provide these assets if they don’t already exist in the home.

3. Space that’s just right
Luxury homebuyers require just the right amount of space to fulfill their desires – without having too much room. There needs to be ample space in the bedrooms, big kitchens, and enough space for guests. However, too much space has become a negative aspect of luxury homes, as people are beginning to realize what a waste these oversized houses can be. People want to have space, but they need to know what to do with that space, which becomes very difficult with huge houses. According to the LA Times, one homeowner put his house on the market because he never used 80% of the space in his 40,000 square foot home! Bottom line – in the case of luxury homes, bigger is not always better!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Renovations That Can Give You a Headache

daniel@realtypin.com Daniel Torelli — Wed, 03 Apr 2013 14:23:12 GMT

The Top 4 Home Renovations That Can Give You a Headache

One of the best parts about owning your home is the freedom to renovate it any way you choose! If you want a hot pink bedroom and a fireman’s pole leading from the second floor to the first, no one can stop you! But when you’re considering different renovations, there are certain things to think about. For the inside of your home, you can essentially do whatever you choose; however, on the outside your creativity has limits. So, before engaging in one of these projects, it’s important to check with your Home Owners Association or the local municipality to ensure that you have permission to complete these renovations. Because of the hoops you might end up jumping through, these are the top 4 home renovations that could give you a headache:

1. Painting
If you live in an area with a Home Owners Association, there almost always rules for painting your home. After all, the Association works to maintain the neighborhood and provides strict guidelines as to what is permitted in it. So, before you paint the exterior of your home, you need to check with your HOA to ensure that it follow their guidelines for the color of your home. Safety is also a concern when painting the exterior of your home. As of 2010, new restrictions have been put into place to ensure that the paint is safe. To learn more about these restrictions and lead-based paint, visit the EPA website at www.epa.gov/lead.

2. Adding a fireplace
There isn’t anything much better than cozying up to a fireplace on those cold winter nights. Fireplaces can add beauty and comfort to your home, as well as value should you ever decide to sell it. But adding a fireplace also needs approval from either your HOA or from the city. Many times, the fire department won’t allow fireplaces in a home for safety reasons, and it’s better to know that before you start, rather than halfway through your project. Some homeowners even had their municipality tell them no post-renovation! So, before you begin this project, make sure you have the approval of everyone who needs to give it.

3. Building a deck
Although building a deck in your backyard seems like something that should totally be up to you, it isn’t. Decks require a permit to build, so when tackling this project, it’s important to build in the time and money for your permit into your budget. When considering the cost for this project, it’s important to note that a general rule of thumb is that the more intricate the deck, the more expensive the permit is likely going to be.

4. Installing a fence
Fences are great for privacy, but they’re not always great for aesthetics. Although your fence is technically in your yard, it’s something that will affect your neighbors in both appearance and safety. So, when installing a fence, it’s important to get a licensed builder to ensure that the fence is built according to code. That way, you can avoid a future hassle! Unless you live in a small town, it’s possible that no one will notice if you cut corners or forego the proper permit. However, doing so is a great way to cause yourself a lot of headaches in the future, should you ever decide to sell your home. Some of these projects are a big enough hassle on their own, so make sure you do them right the first time!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Tips to Sell Your Home Fast

daniel@realtypin.com Daniel Torelli — Tue, 02 Apr 2013 13:49:14 GMT

When selling your home, it’s easy to get lost in the shuffle of all the other listings in your area. Before setting out to sell your home, there are some easy ways to improve your chances of getting a quick bid. In fact, here are the top 5 ways to hook homebuyers:

1. Focus on the first Impression
The first impression is important both online and in person. When it comes to listing your home online, a recent study found that people view listings in a Z-pattern and search for photos first. Ensure that your listing follows this pattern as well to optimize the opportunity with your online listing. The first impression of a home in person is also incredibly important. Ensure your home is perfectly manicured and cleaned before any showing, so the buyer gets a great vibe as soon as he pulls up.

2. Take flattering photos
A recent study found that people searching on the internet spend about 60% of their time on a listing in the photo section. The worst thing you can do for your online listing is to not list any photos at all, and the second worst thing you can do is to be lazy about the photos that you take! To really hook a homebuyer, your photos need to stand out and be a good comprehensive overview of your home. Stage your home before taking the photos and spend some time making sure the photos are great to really hook a homebuyer into coming and seeing how great your home is for themselves.

3. Wow with the online description
Since most real estate searches begin on the internet, the description of your home across online platforms is a great way to hook buyers. Be thorough and honest with your description, but hook them in a way that makes a person want to come see your home in person. However, be careful with your description. Euphemisms for a home are now getting so overused that people are more wary of them and could even give the buyer a bad impression! You don’t have to broadcast that the second bedroom is small, but using the words quaint or cozy aren’t doing you any favors, either.

4. Make updates
A great way to hook a homebuyer is to have updates throughout your home. Although it may seem silly to update your home right when you are about to leave, many upgrades add significant value to your home.
Talk to a professional before pursuing any major overhauls to ensure you will get a return on your investment. It’s normally worth the money, and an updated kitchen or bathroom is a great way to hook a homebuyer.

5. Go green
Many first time homebuyers have a green home at the top of their “needs” list. So, updating your home in a more environmentally-friendly way can give you a return on your investment and save money on your utilities while you still occupy the home. The best part is that you are helping the environment while also hooking a homebuyer!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

D.C. Replaces New York as Most Expensive Housing Market

daniel@realtypin.com Daniel Torelli — Tue, 02 Apr 2013 13:46:14 GMT

If you're looking for a city where you'll get a lot of bang for your buck in the housing market, scratch Washington D.C. off your list! According to a recent survey, our nation's capital is the least affordable city when it comes to housing.

How did the study determine that?

It compared the average wages to housing prices in 30 major metropolitan areas. Washington D.C. had the largest gap between income and home prices, even surpassing traditional chart-toppers Brooklyn and San Francisco. According to the survey, Washington D.C.'s median housing price from December to February was $1.03 million, which is almost 17 times higher than the area’s average income.

However, the median housing price that was listed in the survey is twice as high as what other real estate sources are reporting. Researchers who conducted the survey say that's because they only included homes of 2,000 square feet or larger, and excluded all multi-family properties and land sales. They say that since they used the same criteria in the other 29 cities as well, the survey is a fair head-to-head comparison of multiple housing markets around the country. But this survey isn't the only recent study that shows an alarming trend – housing costs are rising, while income levels remain at the same level.

Because a large portion of the District's residents are employed by the federal government, the area was not affected as badly by the financial crisis as many other major cities. That means housing prices did not drop off as much, so consequently, they don't have to rise as far to recover. Right now, though, home prices are soaring in D.C., and income levels are not, which is making house hunting in the District a daunting task. In fact, a recent study by George Mason University suggests that more than 1/3 of D.C. families with a combined household income between 30% and 50% of the area's median spend at least half of their income on housing. Many D.C. residents simply cannot afford such high mortgage payments, so they opt to rent instead. But that’s causing rent prices to go up even more!

How high are they right now?

According to a report compiled by the National Low Income Housing Coalition (NLIHC), a two-bedroom apartment in the District costs $1,412 monthly to rent. Of the areas they studied, only Hawaii had a higher monthly rent average ($1,671). If you worked full-time and spent no more than 30% of your take-home pay on rent, the study concluded you would have to make $27.15 per hour just to afford your rent. Minimum wage in D.C. is $8.25, so someone working for that hourly rate would have to work 3.3 jobs, or 123 hours a week, just to be able to pay rent!

While Washington D.C. does have a higher median income that most other major metropolitan areas, there are still countless low income workers who live in the city, and as the NLIHC study proved, many can no longer afford housing at their current income level. For that reason, the waiting list for public housing and Section 8 in D.C. continues to grow.

But low income families aren't the only ones affected by the rising housing costs, and analysts fear that the lack of affordable housing could have a negative impact on economic growth. They say talented workers may start to accept jobs in other major cities where housing is more affordable, instead of worrying about finding a home in their price range in D.C. In an effort to show local government's concern, the city's mayor, Vincent Gray, pledged last month to invest $100 million in building or sustaining 10,000 units of affordable housing, but economists worry that may never come to fruition. If lawmakers approve the expected 5% cuts to the federal budget, the D.C. Housing Authority would be among the agencies hit the hardest.

So for now, renters and house hunters in Washington D.C. continue to search for affordable housing while they play the wait-and-see game regarding the future of home prices in the area!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Realtor Contracts

daniel@realtypin.com Daniel Torelli — Mon, 01 Apr 2013 15:04:58 GMT

What Does Your Realtor’s Contract Really Mean?

When it comes to buying a home, the agreement between a buyer and a real estate agent is often just a spoken one, but the opposite is true for sellers and their realtor. Almost every seller's agent requires that their client sign a listing agreement, which is a legally binding written contract that shouldn't be taken lightly. This listing agreement lays out everything that’s expected of the realtor and the homeowner, so it dictates the terms of the entire business relationship.

That means you need to read the entire contract and fully understand it before signing your name on the dotted line. After all, everything on these pre-printed forms is negotiable!

But what exactly are you agreeing to?

First, you and your agent must agree upon the term of the agreement. This basically means you’ll define how long the realtor is going to be in charge of selling your home. The longer the term, the more time they have to find a suitable buyer – but you don't want to get stuck with an agent who isn't meeting your needs either. The best approach is to sign an agreement for only a few months at a time. If your realtor hasn’t sold your home at the end of the agreement – but you're pleased with their efforts – you can always extend the contract.

The next item on your checklist should be the realtor's commission. Although the commission rate is technically negotiable, most agents expect to receive the standard percentage (at the very least!). However, some are willing to accept a lower percentage, while others will ask for more than the industry standard. Whether you chose to negotiate the realtor's commission percentage is completely up to you and your seller's agent, and there are obviously benefits and risks involved with doing so.

Next, you must determine if you want your home listed in the Multiple Listing Service (MLS). The standard listing agreement authorizes the agent to post your home in this database so that both buyers’ agents and prospective buyers can access it on the internet. Unless your home is an exclusive property, it's generally a good idea to list your home in the MLS. After all, it helps the agent market your home to the widest audience possible, which increases the chances of you finding a suitable buyer!

Just remember – buyers’ agents can see everything on your home's MLS listing, including your realtor's commission percentage, but the general public and prospective buyers will not have access to the commission information. They can, however, check out pictures, see the listing price, and find contact information for your agent to schedule a tour, so we suggest you authorize the MLS listing.

Finally, you have to decide if you're going to have a lockbox on your home's front door or not. A lockbox is tiny key-holding safe, and it allows quick access to your home for showings. Anyone who has a key or knows the combination to the lockbox can retrieve the keys to your home. Some sellers like this because it allows agents to give tours of the property even during hours when no one is home, but other homeowners don't like the idea that multiple strangers have access to their home.

Keep in mind that your agent isn't the only one who has access to the lockbox. Buyers’ agents do too, so if you feel uncomfortable or insecure about that, make sure that your listing agreement states that only your agent has access to the lockbox, or just don't authorize the use of one at your home.

The most important thing to remember with a listing agreement is that it's a legally binding contract, but most realtors are willing to negotiate any part of the agreement that you're uncomfortable with. So, read over it carefully, consult a lawyer if you don't understand any part of it, and you should be able to work out a deal that benefits both you and the agent who is trying to sell your home!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Find the Perfect Home When the Inventory is So Low?

daniel@realtypin.com Daniel Torelli — Mon, 01 Apr 2013 15:02:15 GMT

For the last six years, the real estate industry has mostly favored buyers. After all, there was a surplus of homes for sale, so buyers could practically name their price. And interest rates were exceptionally low, there was an incentive to get them to buy.

But over the last few months, the tides have changed. The interest rates are still low, but it can be extremely difficult to find a home within your price range!

Why?

Most of the distressed properties that flooded the market with inventory have since been purchased, so now there's a shortage of homes for sale. In fact, the pickings haven't been this slim in 7 years, with listed inventory currently 25.3% lower than it was a year ago. Nationwide, there's only a 4.2 month supply of homes for sale. That means, at the current sales rate, all of the homes currently listed would sell in the next 4 months! Economists consider a 6 month supply to be normal, so clearly things have changed dramatically from just a few years ago!

Inventories should increase during the spring months, since most residential real estate transactions take place between March and July. But even with the added boost, experts at the National Association of Realtors still expect there to be a shortage of homes for sale for the rest of the year.

So, now that home buying has become a seller's market, what can you do as a buyer to find the perfect home for you and your family?

Here are some helpful tips.

First, get pre-approved for a mortgage before you start looking for a home. This lets the seller know that you're serious about buying their home, and it establishes a price range than you can afford. If you don't think you can get pre-approved, then you aren't ready to buy a home! Once your finances are in order, meet with a lender to determine how large of a loan you qualify for. Just because you're approved for a certain amount of money doesn't mean you have to make an offer that high. It just gives you and the seller reassurance that there won't be any hitches in the purchase process should you decide to buy their home.

Next, don't compromise just because you become frustrated with how long it's taking to find the perfect home. In a seller's market, chances are that you're going to encounter a situation where you might be one of multiple bidders on the same home, or the seller may not be flexible on their price. You need to be honest with yourself, and determine if the home you're looking at truly meets your needs. If so, then perhaps you should be more willing to negotiate, but if it's not what you had in mind, keep looking until you do find the right home. Once you do find the perfect place, keep in mind that sometimes it's not the buyer with the highest monetary offer who ends up getting the home. Often times, sellers want someone who is going to be flexible with move-in dates, closing costs, repairs, etc. Also, it doesn't hurt to write a “Dear Seller” letter telling the homeowner why you fell in love with their home.

Finally, don't worry if you don't find your dream home during the spring selling season. Yes, it's true that there are more properties listed during these months than any other time of year, but the fact of the matter is that homeowners list properties year-round. So, check out all of the homes that are available right now, and if you still can't find anything that fits your needs, keep looking until you do.

Hopefully with these tips, you'll be able to locate your dream home and put in a winning offer!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Homebuilder Confidence Drops – But Not Over Housing Concerns

daniel@realtypin.com Daniel Torelli — Sun, 31 Mar 2013 15:22:35 GMT

As the housing market started showing signs of recovery late last year, builder confidence began to rise. But now, homebuilders aren't as optimistic as they were just a few months ago.

How do we know that?

Each month, the National Association of Home Builders/Wells Fargo Home Index interviews homebuilders around the country to measure their confidence level in the housing market. The results are similar to percentages, meaning that 0 is the worst reading and 100 would indicate that 100% of all builders interviewed have confidence in the current state of the market. Therefore, any reading below 50 suggests an overall negative sentiment among builders.

In January, the National Association of Home Builders/Wells Fargo Home Index the reading was still slightly below 50, but it was still at its highest level since 2006. Since then, though, the reading has gone down. Right now, it sits at 44.

So why are builders suddenly losing confidence in their industry?

Oddly enough, their concerns have nothing to do with the home sales at all, but with supplies – or, rather, a lack thereof.

When the housing market collapsed in late 2007, many companies involved in the home construction business were forced to make drastic changes. Many laid off their workforce, others cut back on the production of materials, and some even had to close their doors permanently. The housing recovery has so long that many contractor laborers who used to work as homebuilders have moved on to more secure and better paying jobs in other career fields.

Fast forward to present day – when new home starts are at their highest level in nearly five years and home sales are starting to go up – and you'll come across many builders who are struggling to find enough supplies or workers to handle the workload.

The problem should eventually correct itself. As home sales rise, so will production of building supplies at manufacturers. Simply put, if a drywall company gets more orders, they'll produce more drywall. Also, as word spreads that homebuilders once again have full-time work available, many of their laborers will likely decide to come back to the career field they left a few years ago.

However, there’s another concern among builders that might not be as easy to fix – a lack of land.

There's been a recent increase in consumer demand for home ownership, but builders can only build new homes where they have available land. A lack of land for sale could slow down their productivity, so that's another reason builders say they have lost confidence in the housing market.

In an industry that is so easily affected by supply and demand, builders know that now is the time to make some money, because so many Americans want to buy new homes. So, the last thing they want to deal with is a delay because of a land shortage. To them, any day they aren't building is a day they aren't making money!

But according to the most recent reading, builders' outlook for sales over the next six months reached its strongest point in more than six years, suggesting the decline in confidence is only temporary. And, even at a reading of 44, builder confidence is a lot higher now than it was back in October 2007 when it was a measly 17, so the industry is definitely doing much better than we’ve seen in recent years!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Chicago Real Estate

daniel@realtypin.com Daniel Torelli — Sat, 30 Mar 2013 15:36:25 GMT

What’s Going on with Chicago’s Housing Market?

Like many other big metropolitan areas, Chicago has seen some major improvements in the housing market over the past year, yet it still lags behind other large cities in one very important category – price gains.

According to a recent report, the number of home sales in Chicago increased in 2012. And, because inventory continued to shrink, homes took less time to sell than they did in previous years. By the time all was said and done, the median sale price here was up to $185,000 by the time the clock struck 12 on New Year’s Eve. All of that is certainly good news, but with just a 5.7% increase compared to 2011, the gain in sale prices wasn't as large as some would have hoped.

Yes, any increase is a step in the right direction, but Chicago’s median sale price is still lower than the national average (nationwide, the median home sales price increased 6.3% in 2012), and it is also far behind some other major cities that posted double-digit gains last year. (For example, prices in San Francisco went up 24.6% in February, when compared to the same month last year.)

Although home sales prices in the Windy City were only slightly higher last year than they were in 2011, they are still 35% lower than they were when they hit their peak in 2006. However, the recent increase is making many homeowners feel better about listing their homes.

Two big reasons why those homes are going up for sale? Chicago homes are selling for more money now than they did in years past. They are also in higher demand and, thus, are selling faster.

How many people are listing their homes here?

Overall, the number of residential and commercial sales transactions in Chicago during 2012 was up 55% from the previous year, and the average time a home spent on the market decreased from 161 days to 136 days.

Analysts say one reason for the increase in the number of homes sold was a spike in rental prices. In 2012, Chicago had the best price-versus-cost-of-renting ratio in the history of the city. Because rent here seems to be constantly increasing, home buying has become an economical alternative. In other words, renters decided that if they were going to be forced to pay rent that is equal to, or in some cases higher than, a monthly mortgage payment, they should just buy a home!

The higher demand for homeownership led to homes selling quicker and for more money. Simple economics will tell you that if there's more than one prospective buyer interested in purchasing a home, the seller has leverage and can stick with their original listing price until someone is willing to pay the amount they desire.

Not only are homes selling quicker, but the increase in sales also means there are now fewer homes on the market. By years end, the inventory of homes for sale in the Chicago area was down to 3.4 months, which is a 73% decrease from the end of 2011. In other words, if sales continued at the current rate, it would only take about three and a half months for all of the homes on the market to sell.

All of the trends from 2012 have carried over into this year, with January sales up 21% in a year-to-year comparison. Economists expect the number of home sales in Chicago to continue to increase in the months to come, bringing inventory levels down even lower. When that happens, home prices will go up even more, perhaps prompting more homeowners to list their properties for sale.

Regardless if that happens or not, one thing is for certain – Chicago's housing market is showing signs of recovery which is a welcome change from years past!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Set the Perfect Price for Your Home?

daniel@realtypin.com Daniel Torelli — Fri, 29 Mar 2013 16:36:21 GMT

Pricing your home is one of the most important aspects of selling your home. If your price is too high, you may scare potential buyers away – and end up with your home sitting on the market far too long, which will cost you both valuable time and money. But if you price your home too low, you could end up selling your home for much less than what it’s worth – or give buyers the impression that there is something wrong with it.

So, how do you come up with the perfect price?

It involves several things – finding comps, analyzing the market, removing emotion, and for most people, enlisting the help of a specialist.

- Find comparable listings
This isn’t as easy as finding other homes in your neighborhood or homes that look like yours. To really price your house right, you need make sure that the age, square footage, and amenities are all the same. People often overlook things like an updated kitchen or a pool when they look at comps, which greatly change the value of their home.

When you’re looking at comps, make sure the home was listed in the last six months. That way, you’ll know that the market value of the homes is current. You also need to be careful to make sure the comps you choose are in your neighborhood, paying special attention to dividing lines like freeways and railroad tracks. Finally, the age of the home needs to be similar to yours to truly find an appropriate comp to compare your home to.

- Analyze the current market
When pricing your home, the equation is longer than “what did I pay, how much did it appreciate and how much did I put into it?” Since the housing market crash, homes values have slumped very low. The good news is that all signs point to recovery, but it’s been a slow climb. So, it’s important to find out if your specific area is currently a buyer’s or a seller’s market. Also, find out how much your property value has changed (for better or for worse) before picking the perfect asking price for you home.

- Remove emotion from the equation
One of the most difficult things a person must do when picking the perfect price is removing all emotions. For most people, a home is not just a house. Instead, it’s where you celebrated your child’s first birthday or where you and your spouse began your life together. However, those memories don’t really mean anything to the person buying your home. Emotion doesn’t only come from memories, either. Many people purchased their home as an investment, and in today’s market it’s not likely you will get out of your home what you put into it. What you think you should get and what is realistic to get are two very different numbers.

- Enlist the help of a specialist
In the age of endless YouTube videos teaching viewers how to do everything from ride a bike to re-roofing their homes, many people decide to take projects on their own instead of enlisting the help of an expert. With one of the biggest investments you will ever have in your lifetime, it’s important to consult an expert when selling your home. A realtor can help you figure in all the factors that will make your house sell quickly and efficiently for the highest price possible.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Ins and Outs of Conforming Mortgages

daniel@realtypin.com Daniel Torelli — Fri, 29 Mar 2013 16:34:43 GMT

In the 1970s, Fannie Mae partnered with Freddie Mac, and the two Government Sponsored Enterprises teamed up to develop uniform standards for mortgage loans. These loans are referred to as “conforming mortgages”, and any loan that does not meet their standards is considered a non-conforming loan.

So, how exactly do they affect you?

Every year, the Office of Federal Housing Enterprise Oversight (OFHEO) sets a limit for how large a conforming loan can be. Any loan over that amount is typically referred to as a “jumbo loan”. Since Fannie Mae and Freddie Mac mortgages are government-backed loans, they offer lower interest rates (and, thus, lower monthly payments) than traditional lenders will give you. If your current mortgage is under the amount currently allowed by Fannie Mae, Freddie Mac, and the OFHEO, you may be able to refinance your mortgage to a conforming loan and likely save up to 0.25% on the interest rate. Although that might not seem like a very big number, those savings can really add up – especially if you have a longer mortgage, as opposed to a 10 or 15 year mortgage.

You may be surprised that you can apply for a conforming loan now, even if your loan was too big to qualify when you first bought your home. That’s because the limit on the mortgage amount changes based on the median price range of homes. So, someone who bought their home 10 years ago, may now qualify, since the current limit is higher than it was back then.

What is the limit right now?

Currently, the limit sits around $420,000 for a single home and nearly $534,000 for a home that is either a duplex or has a casita where other people may live. The numbers go up further based on the number of units in the home. And, in areas where home values are significantly higher than the rest of the country, the loan limits are higher.

Why do you need to pay attention to these limits, though?

If your mortgage falls under the limit, you can save money and have a loan that’s backed by the government. Even if your home’s value is too high for a conforming loan, there are still ways to get one. For example, you can make a larger down payment, which will reduce the size of your loan and put it within the limit. You can also consider refinancing after you have enough equity in your home to require a smaller loan that fits under the limit.

But just because your home qualifies for a conforming loan doesn’t mean that YOU qualify for one. Even though they’re backed by the government, you still need to be able to prove to your lender that you have enough money to make a down payment, verifiable income, and a good credit history. You may need to spend a little extra time repairing any issues on your credit report or saving a little more for the down payment, but a conforming loan can save you money in the long run!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Rent-to-Own Purchases, The Top 3 Things to Lookout for

daniel@realtypin.com Daniel Torelli — Thu, 28 Mar 2013 15:03:42 GMT

Rent-to-own purchases have grown in popularity lately, especially among first time homebuyers. That’s because these transactions allow a person or a family to rent the home over a period time, with a portion of their monthly rent payments going to the purchase price of the home. Typically, there is no legal obligation for the renter to purchase the home after an extended period of time. However, the rent prices in these situations are usually much more expensive than an “average” rental, and should the renter opt out, they lose all of the extra money that they spent.

So, is one of these purchases right for you? A rent-to-own opportunity is great if you want to learn more about a neighborhood or if you don’t quite qualify for conventional lending. However, before you dive right into one of these transactions, you need to be on the lookout for these 3 things:

1. Higher deposits
Many times, the seller of a rent-to-own home requires higher deposits than he would under a “normal” lease. Since the seller is taking on some risk (after all, you may not buy the home in the end!), he may ask for a significant amount for the deposit that you may not be expecting. Another reason for higher deposits? To safeguard against value increases. After all, the seller is betting that his home’s value won’t increase dramatically from the price you both have agreed upon while you rent the home. A higher deposit can offset some of that risk. And remember, these deposits are normally non-refundable should you decide not to purchase the home.

2. Damaged credit
One big reason that a person may enter into a rent-to-own opportunity is to get some extra time to repair his credit. If you’re one of those people, you can bulk up your credit score while you make the extra rent payments – then look better to a bank when it comes time to get a loan to pay for the rest of the home. So, before you begin, find out exactly what your credit score is, and have a plan to raise it. Repairing damaged credit takes time, and it could take longer than the typical year that sellers offer in rent-to-own options. It’s even more important to be aware of your credit and the odds of you being able to boost it in a year’s time because of the higher deposits and higher rent payments. After all, if you can’t qualify for a loan later, you’ll simply be throwing your money away!

3. Reduced home value
Most rent-to-own homes have an agreed upon sales price at the beginning of the lease. The seller could lose out if the home value increases, but should the home value decrease, you really don’t have any negotiating power. Unless specifically stipulated in the contract – which is unusual – you won’t be able to lower the selling price. You can still walk away from the deal if the value isn’t what you were hoping for, but you may find yourself in a situation where you’ve already put in a bunch of money and you don’t want to walk away.

What’s the solution?
Do your homework! If experts are predicting that home values in your area are going to drop significantly, this probably isn’t the investment you want to make. As with all real-estate investments, it’s important to really learn and understand what you are getting into long before you begin any type of negotiations with a seller. Rent-to-own can be a great alternative to traditional home purchases, but it does come with some risks. Ensure that is it the right opportunity for you!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Renters Finally Getting Some Relief

daniel@realtypin.com Daniel Torelli — Thu, 28 Mar 2013 14:50:17 GMT

The number of home sales has been steadily increasing for over a year now, and renters have been the ones paying the price. That’s because many of those purchases were made by investors scooping up distressed homes – so that they could fix them up and rent them out. These investors hope to one day sell the properties for a profit, but while they're waiting on home prices to increase, they've been renting them to families at a much higher rate than we’ve seen in previous years.

Many of these renters had hoped to be homeowners by now, but are paying rent to the very people who prevented them from purchasing a home! After all, investors are able to make cash-only purchases, which eliminates lenders from the equation. So, while “traditional” buyers are busy applying for a mortgage, these investments firms beat them to the punch! They have been able to close on homes in a matter of days because of the cash-on-the-table offers they could make, and as a result, have literally purchased millions of properties for billions of dollars.

The world's largest private-equity firm Blackstone has spent more than $3.5 billion to buy over 20,000 single-family homes, and California-based Colony Capital isn't far behind, spending over $2.2 billion on distressed properties. These investment firms have been scooping up mostly single-family homes built after 1990. In other words, they have purchased the types of homes that many families also wanted to buy. Once the “traditional” buyers realized they were fighting a losing battle, they stopped looking to buy a home and opted to rent something instead.

When the investors purchased all the distressed properties, it solved one of the housing market's problems by eliminating a ton of foreclosures that were dragging down home values. But as you can see, these investors have created a whole new problem!

The tiny supply of homes for sale – coupled with an increased demand – has made home prices go up. That's good news for a struggling housing market, but not so great for “traditional” buyers looking for affordable housing to buy.

But it’s not all bad news. Thanks to this trend, renters are actually getting some relief now!

While there's a shortage of homes for sale, there are plenty available for rent – with an investor as the landlord. Now, the market is flooded with homes for rent, so landlords can no longer charge astronomical prices to renters, like the ones we had seen over the past couple of years. If they do, the renters will simply move into a home owned by someone else!

Recent research shows that rent prices are still climbing in some major cities, but at a rate much slower than property prices. In Phoenix, for example, monthly rent rose 1.3% in February from a year earlier, but listing prices for homes for sale has increased 25% from a year ago.

In Atlanta, it's much of the same, with rents only gaining 0.5% while listing prices climbed 14%, and in Las Vegas, rent prices actually dropped 1.8% while asking prices soared 18%.

The dip in rent prices may cause some investors to list their properties for sale now, instead of waiting for home prices to rise to a level where they can make a profit. If that happens, more Americans will be able to find a home in their price range, but if too many investors dump their properties at the same time, the market could once again be flooded with inventory.

Analysts don't expect that to happen, so for now, reduced rent is a welcomed relief for renters who have been shelling out tons of cash to their landlords for the past few years!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Renovate Your Home without Getting Overwhelmed

daniel@realtypin.com Daniel Torelli — Wed, 27 Mar 2013 16:01:08 GMT

Taking on home renovations is a fun, but stressful, time. The anticipation of the final product is exciting, but dealing with contractors, having a room that you essentially can’t use at all (at least temporarily!), and the general disruption of your family’s lives is certainly not fun and exciting. Luckily, there are ways to combat these issues and stay sane during your project. Check out our top 3 tips for renovating your home without getting overwhelmed:

1. Spend extra time saving money
It’s hard not to rush right in when you have a new project for your house. One of the worst mistakes people make, however, is not properly saving for a renovation before it begins. Contractors are pretty notorious for going over budget, and during the process, homeowners are pretty notorious for seeing things they want that are far more expensive than they initially realized. If you are spending the time, energy, and money on a home renovation, you want to make sure you have the money to do it right!

So, spend some extra time saving up for your renovation, and make sure you’ve got enough money to get exactly what you want. Have an extra allotment of cash for emergencies as well, and expect the renovation to cost more than the original budget. That way if the contractor finds a termite problem or a plumbing issue during the middle of the renovation, you have the extra money to pay to fix it without delaying the project too long. Saving up some extra cash also allows you to splurge a little more for the things you really want, without adding the extra stress that home renovations typically entail.

2. Clean up at the end of every workday
Whether you are renovating your home yourself or having contractors coming into to do most of the heavy lifting, it’s important to clean up at the end of every workday. It may not seem like a big deal now, but the dust and debris from each day can really add up. Being proactive about keeping the area clean prevents the added stress of seeing your room in messy pieces! Clean up dust and put away tools you may have used throughout the day. Take out the trash, and even rent a dumpster if the renovation is big enough. The only way to keep some sort of normalcy in your home during a large renovation is to keep it as clean and organized as possible during the entire process.

3. Avoid renovating more than one room at a time
People mistakenly believe that if they have multiple renovations in mind, it’s better to get them all done at the same time. Although it is frustrating to always feel like there is some part of your house under renovation, that doesn’t compare to the frustration of having nowhere to go in your home and nowhere to get any peace and quiet! If you are making changes to more than one room in your home, to save your sanity, do one room at a time. It’s just too overwhelming to have multiple projects, multiple contractors, and multiple rooms out of commission all at the same time!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Renovations to Boost Your Mood

daniel@realtypin.com Daniel Torelli — Wed, 27 Mar 2013 15:59:19 GMT

If you are considering a home renovation, there are typically renovations that you want to make versus renovations that you need to make. If you have a house that already completes your list of needs, then the fun begins with doing renovations that you want! A home renovation can change the entire dynamic of your home, and most importantly, make you feel better. Here are the top 4 home renovations that will boost your mood:

1. Add a master suite
A master suite can boost your mood because it gives you an escape from the rest of the world. The right master suite can simulate a mini-vacation every time you enter it. As an added bonus, master suites can greatly add value to your home should you decide to eventually sell it. Your dream master suite should fit your personality, but a couple of ideas to get started include a new master bath with heated tiles and separate sinks for you and your significant other. Other great ideas include a reading nook, a wine cooler, and a built-in entertainment center.

2. Install a skylight
Skylights have gotten some bad press for leaking and causing other issues, but the skylights that are manufactured today are much different than skylights made 10 or 20 years ago. Now, skylights can even save you money on your utility bills! Energy efficient skylights are capable of opening up and ventilating your home, allowing fresh air to come in, and cooling off your home in the spring and early summer. The fresh air can save you money on your air conditioner, while the sunlight can save you money on your light bill. If the money savings aren’t enough to put you in a better mood, sunlight is a natural mood booster!

3. Upgrade your kitchen
With shows like “Top Chef” and “Hell’s Kitchen”, we all want to become professional chefs! Upgrading your kitchen can help make you feel like a gourmet, while also making it easier to get in the kitchen and cook. With a new kitchen, cooking for your spouse or the kids is no longer a chore, but instead a fun event in a place you like to be! Upgrading your kitchen doesn’t have to drain your bank account, though. Simple upgrades such as buying new kitchen knives or replacing your countertops can change the look and feel of the entire room, without breaking the bank.

4. Add a sunroom
We’ve already discussed how sunlight is a proven mood booster, so why not take things up a notch and add a sunroom that your entire family can enjoy?! A sunroom is a great way to get the feel of the outdoors, without the pesky bugs, pollen, or chilly mornings. A sunroom can be great for you to catch up on your favorite book, or a place for the kids to play and store their toys. A sunroom not only provides you with tons of sunlight in that room, but it can open up a space and add natural sunlight into the adjoining areas of your house. In addition to saving you money on your light bills, the Vitamin D-rich sunlight that comes pouring in will help make your days better.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Mistakes you Can Make During Your First Home Purchase

daniel@realtypin.com Daniel Torelli — Tue, 26 Mar 2013 13:48:39 GMT

Ready to buy your first home? Congratulations! You’re about to start on a one-of-a-kind journey, but whatever you do, don’t make these 5 mistakes:

1. Not getting pre-approved for a mortgage
Many people either don’t think about getting pre-approved or put it off because their credit rating is less-than-stellar. Before even beginning your house hunt, the first step is to always get pre-approved for a loan long before you head to your first open house. Many realtors now won’t even take on clients who haven’t been pre-approved for a mortgage! Some people are afraid to go through the pre-approval process out of fear that they won’t be approved at all. However, if you find out you aren’t qualified early enough, you still have time to work to improve your credit score, instead of having a home in mind that is now out of your reach.

2. Visiting homes out of your price range
Going to an open house or touring a home that’s out of your price range can only lead to trouble. Even if you are “just going to see it”, it’s hard to go back to looking at homes within your budget, once you see a home that is just beyond reach. Chances are fairly good that you will fall in love with the house, and either get yourself into a mortgage that you truly can’t afford, or be disappointed with every other home you visit. Either way, it’s not worth the risk! Set your budget and stay away from homes that don’t fall within it.

3. Using a family or friend as your realtor
It may seem logical to use a friend or a relative as a realtor, but as the old adage goes, “friends and money don’t mix”. Although you may want to help a friend out or get a discount from a family member, someone is going to end up unhappy. The same holds true for hiring a friend-of-a-friend or someone’s nephew that is just starting out. When you are making one of the largest investments of your life, stick with someone with years of experience, that you can have a strictly professional relationship with.

4. Having unrealistic “needs” for your budget
Even if your budget is relatively small, it’s still a large financial commitment and you should have high expectations. However, the trouble comes when your expectations are unrealistic. Before you set your needs and wants list, look up listings online to see what is realistic for the amenities in your price range. If you set out on your search without understanding the size of house and amenities in your price range, you may find yourself severely disappointed.

5. Starting your search too early
Even though it may be hard to resist, don’t jump the gun on your search. There are a number of reasons why this is a bad idea. First, if you start looking before you’re ready, chances are good that the home will be sold before you’re ready to buy. Second, although searching is the fun part, it’s very important to make sure you are pre-approved for a loan before you begin your search, and make sure you are well qualified for the homes you are going to be investigating. For an investment this big, you need to take the time and make sure you are properly prepared and well educated before you head out to find your first home!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What’s in Store for America’s Housing Market?

daniel@realtypin.com Daniel Torelli — Tue, 26 Mar 2013 13:46:30 GMT

When determining the state of the housing market, economists look at many factors – including sales of new and existing homes, inventories, and home prices. Last month, the National Association of Realtors (NAR) reported that both new and existing home sales were well above the levels we saw a year ago, and figures for this month are expected to show similar increases once they are released.

Meanwhile, the number of properties for sale nationwide is at a 13-year low. That lack of inventory has led to home prices that are 7% higher than they were this time last year, according to the latest S&P/Case-Shiller report.

So clearly, the housing market is showing signs of improvement right now, but what’s in store for the long term? Have we truly turned the corner from “recession” to “recovery”?

Perhaps the best person to ask is the co-creator of the S&P/Case-Shiller index and Yale economics professor, Robert Shiller!

During a recent interview, Shiller expressed some concern over the housing market's future.

“People shouldn’t assume the housing market is off to the races,” says Shiller.

While he agreed that an increase in home sales is good news, he says those statistics can be misleading, so predictions of a full recovery might be a bit premature. In fact, he said the housing market is “becoming more of a speculative asset,” and recent data supports that claim. According to the NAR, 27% of all recent home purchases were cash-only transactions, made mainly by investors.

Shiller says the investor trend is concerning because the use of the real estate industry as an investment asset is risky business. Since no one can predict what the future holds, there's no way to tell if investors will ever make a profit on their recent purchases. If the housing market doesn't produce the kinds of profits that investors were hoping for, they could cut their losses in the years to come, list the properties for sale, and flood the market with inventory once again.

But right now, in many markets around the country, investment firms have come to town with cash in hand and bought up any and all properties they can get their hands on. That's making it harder for “traditional” buyers (meaning people who want to a buy a home and live in it as their primary residence, instead of trying to flip it or rent it for a profit) to find affordable housing.

Besides the investors, another concern for Shiller is the fact the federal government continues to underwrite most of the mortgages. Shiller calls that “very abnormal” and speculates that trend could end if taxpayers become upset over excessive government debt. With the government out of the mix, mortgages will become even harder to come by, and if prospective buyers can't secure home financing, they won't be able to purchase a home. Fewer interested buyers means the housing industry could swing from a seller's market back to a buyer's market, which would mean a decline in home prices.

Of course, all of this is speculation at this point in time, so for right now, Shiller says Americans should be cautiously optimistic about the future of the housing market.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is Your Home Green Enough to Attract Buyers?

daniel@realtypin.com Daniel Torelli — Mon, 25 Mar 2013 14:12:12 GMT

These days, everyone is trying to cut back on their spending, and one of the easiest ways to save some green (or, cash) is by making your home green (or, eco-friendly). Not only will these upgrades reduce your bills, but energy-efficient features might also help the home sell if you're planning on listing it. In fact, in a recent survey conducted by the National Association of Home Builders, nine out of ten prospective buyers said they would prefer to purchase a home with green features.

Why?

Buyers are attracted to eco-friendly homes because energy-efficient appliances and features mean permanently lower utility bills.

So what if you're home isn't green? What are some changes you should consider before putting it on the market?

First, replace old heating units, air conditioners, stoves, refrigerators, and freezers will newer models that meet government regulated Energy-Star standards. This one step could literally cut a large chunk out of your monthly power bill while you're trying to sell the home, and lower bills are a big selling point for a buyer. Yes, that means you'll have to spend money to purchase those appliances, but buyers take notice of these sorts of home improvements, and you'll likely get a significant return on your investment.

Another upgrade you might want to consider is installing home-automation technology. Homebuilders can put in a system that regulates and manages the energy consumption throughout your home. For example, you can set it to heat individual rooms at certain times of the day, so if you spend evenings watching television in the living room, but never go down to the basement at that time of night, you can tell the heating system to warm the room you're in and not waste heat in an empty room.

If you're tech-savvy, you'll be happy to know that the same companies that make energy-efficient home-automation technology can also set up all of your other electronic needs. So, while you're having them install the controls for your appliances and heating and air units, also ask them for a price quote to hook up your home security system and home entertainment center to the same control. That’s right – you can have everything wired where the same remote that turns up the volume on your television also turns down the heat in the room!

Another eco-friendly renovation that's worth considering is replacing old drafty windows. After all, what's the point in heating your home if you're going to let some of that heat escape from the home underneath doors and windows?! In fact, if you're planning on selling your home, and want to make it more green, energy-efficient windows are a must.

Some homeowners are willing to spend a lot of money and actually reposition the windows of their home to let in more natural light, but if that's not in your budget, at least have a licensed inspector come out and check if your windows are letting air out of the home. If they are, call a local contractor to replace the windows ,and while they're at it, ask them about installing a system that regulates the amount of natural and interior light in the home. A few years ago, this technology didn't exist, but now it's commonplace for builders and renovators to install a system in the home that senses any change in the amount of natural lighting coming in through the windows, and automatically turns inside lights on and off.

These are just a few of the many eco-friendly home improvements you could make to your home so that it's more energy-efficient and, thus, more attractive to prospective buyers!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Should You Say in a “Dear Seller” Letter?

daniel@realtypin.com Daniel Torelli — Mon, 25 Mar 2013 14:02:17 GMT

There's a shortage of home inventory right now, meaning there's more people wanting to purchase a home than there are properties currently listed. This has led to bidding wars, where multiple would-be buyers are making competing offers on the same home. So, in an effort to stand out above the crowd, many prospective buyers have turned to writing a “Dear Seller” letter. The technique became popular during last decade's housing boom, and has regained steam recently among home buyers.

So, how do you use one of these letters to your advantage?

Consider it a love letter, explaining in detail why you think the home is a perfect match for you and your family.

Cheesy? Maybe. But effective? You bet!

Many homeowners who were having a hard time deciding between multiple buyer offers say they ended up choosing the buyer who wrote a “Dear Seller” letter. After all, by taking the time to explain why you want to purchase the home, you show the seller that you value the home they've lived in.

Let's face it, just because they are selling the home doesn't mean that a homeowner doesn't have memories made there that will last them a lifetime. Try to find out as much about the homeowner as possible, and attempt to make a connection over any similarities in your family.

For example, if the seller’s children grew up in that home, but are now older, and you have school-age children, tell them how excited you are about the possibility that you kids might get to grow up in the same wonderful home where their children came of age.

Don't be afraid to be specific, too. If the home has a back deck that overlooks the backyard, and you envision yourself sitting there each Sunday with your newspaper and coffee, tell the seller how you can't wait to relax on the deck while doing the crossword puzzle.

Or, if the kitchen has a big window where you plan to put your table, say that you can't wait for your family to share meals together in a such beautiful room with a breathtaking view.

But while it's smart to be specific, don't go overboard. Nobody likes a kiss-up. Instead, the key to a “Dear Seller” letter is tell them how much you value their home, and give them examples of why it would mean so much to you and your family if they chose your offer. In other words, take some time to actually think about how you would use the spaces, and then write that down.

If the living room is a place where you can envision your family coming together once a week to watch a movie together, tell the seller about that, but remember to include why their home is the one you prefer.

Every home has a living room, so what makes theirs so special that you are concinved it's your dream home.

If you take the time to plan out what you're going to write, speak from the heart, and show gratitude and appreciation to the seller for the fact that they're willing to part with the home, chances are you'll be the buyer they choose.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Reasons We're Seeing Housing Recovery

daniel@realtypin.com Daniel Torelli — Sun, 24 Mar 2013 15:46:01 GMT

We keep hearing that the housing market is making a recovery, but the proof is in the pudding, right?
Take a look at these statistics, and you'll agree that the market is headed in the right direction:

- The Federal Housing Finance Agency says the national average home price will increase 5% this year.

- Experts estimate that nearly 5 million existing homes will be sold in 2013, which would be 7.5% more than last year.

- New home sales are expected to be 36% higher this year, when compared to 2012.

So, for just the second time since 2005, building permits and starts, sales of new and existing homes, and overall home prices are all likely to rise this year. The housing market has been struggling ever since it collapsed in 2008, so what factors have contributed to the turnaround?

1. Fewer distressed properties
During the peak of the housing bubble, many Americans who could not afford to purchase a home received mortgage approval and bought one anyway. Lenders got greedy, and it backfired. Millions of homeowners lost their properties to foreclosure, and banks were left with vacant homes that they could not sell for even a fraction of the home's worth. The result was a housing market that was flooded with distressed properties. The only buyers interested in purchasing those homes were investors and do-it-yourselfers looking for a steal of a deal. The excess of homes meant there were more properties for sale than there were people interested in buying them, which caused home prices to plummet. Last year, 1 out of every 3 sales was either a foreclosure or a short sale. In 2013, distressed sales should only account for 1 in 5 home sales.

2. Lack of inventory
These days, there are more buyers interested in purchasing a home then there are properties for sale. At the current sales rate, it would only take 4.2 months for all of the homes currently listed across the nation to sell. Inventory hasn't been this low since April 2005. That lack of inventory has driven home prices higher, and many buyers are being forced to outbid their competitors to get a home. After the housing market collapsed, many homeowners found themselves owing more on their mortgage than the home was worth. These “underwater borrowers” are financially unable to sell their homes. So, fewer homeowners are listing their homes for sale now than in years past, and the market is no longer flooded with distressed properties – meaning we’re seeing a seller’s market.

3. More new home starts
While buyers may not like bidding wars, a lack of inventory is good news for home builders. Across the nation, builders who specialize in new home construction have noticed an increased demand, so they are breaking ground on new homes as quickly as possible. Experts estimate 500,000 new homes will be built this year, and that helps the housing market multiple ways. First, it creates more inventory, so more buyers will be able to find something within their price range. Second, it increases the workload for everyone involved in building a home – like the builders, the architects, the appliance makers, the furniture stores, the carpet manufacturers, and the landscapers.

4. Increased consumer confidence
When you add up all of the benefits of the three reasons listed above, the end result is increased consumer confidence. As the economy recovers, more Americans begin to have job security. For homeowners who are behind in their payments, the financial stability allows them to catch up and avoid foreclosure. For consumers who were already stable with their finances, they’re now more likely to make a large purchase, like a new home. Since inventory is low, home prices will continue to rise, and may get high enough that some underwater borrowers who previously couldn't list their home can now afford to sell it. In the meantime, new home sales will increase (and create more jobs in the industries we mentioned above).

A full housing recovery is still a long way away, but if current trends continue, the end is at least in sight!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Hottest Housing Markets of 2013

daniel@realtypin.com Daniel Torelli — Sat, 23 Mar 2013 17:18:27 GMT

After a very long housing market slump, it’s starting to seem like things are getting back on track. Although the overall American housing market is only slowly and steadily recovering, some housing markets are heating up faster than others. Here are the top 5 housing markets so far for 2013:

1. Phoenix, AZ
Phoenix is the hottest housing market right now, thanks in large part to a surge of investors. But many other people flock to Phoenix because of its mild temperatures in the winter – making the area’s golf courses and spring training baseball games a hit. In fact, many snowbirds purchase a second home here to live in during the winter months. And with summertime temperatures reaching 120 degrees here, Phoenix is literally the hottest housing market in America!
Phoenix was one of the cities that was hit hardest when the housing market crashed, but out-of-state interest (i.e.: investors) has increased both the number of sales and the asking prices in the Valley of the Sun.

2. Los Angeles, CA
Cities with mild climates tend to attract the most buyers, as many investors look to these cities for vacation rental opportunities or for the chance to flip homes for a profit. Los Angeles’ housing market is heating up, but realistically, the dramatic increase is due to the huge drop in home values when the housing market crashed. According to a recent survey, home values are down 33% from its peak in 2006. The good news is that there has been a steady growth in the local housing market, making L.A. one of the fastest-growing housing markets so far this year.

3. Sacramento, CA
As the state capital of California, Sacramento is also home to relatively mild temperatures and a growing housing market. In fact, a recent survey found the projected median home price gain at nearly 12%.
Even though home prices here are 50% lower than what they were at the peak of the housing bubble, the steady increase in prices shows promising opportunities. The fact that this state capital also expects a surplus in its budget for 2013 adds to the likelihood that it will be a hot housing market for the rest of the year, too!

4. Seattle, Washington
Seattle is our pick for the 4th-hottest housing market for 2013, even though the city is well-known for its dreary, rainy skies. Asking prices in Seattle rose nearly 9% more than they did in many of the other hottest housing markets around the country. There is a ton of new construction around town, too. Even though average home prices are higher here than in most places, Seattle should continue to see a steady increase in its housing market for the rest of 2013.

5. Houston, TX
Houston could be the hottest housing market when all is said and done in 2013! The area’s job market didn’t get hit as hard by the recession as other places did, and it has seen even more growth recently. The housing gains being made here are better than any other major housing market in the United States.
The combination of affordable housing prices and a stable job market have attracted many buyers into the Houston area. Due to all of those additional buyers, Houston has already seen a large increase in residential construction permits this year.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Should You Opt for a 10-Year Mortgage?

daniel@realtypin.com Daniel Torelli — Fri, 22 Mar 2013 16:12:55 GMT

If you are considering buying a new home, all of the mortgage options and terms out there may feel a little overwhelming. But there’s one option you may not have considered – the 10-year mortgage. Although the monthly payment with a 10-year mortgage will be higher than the typical 15- and 30-year mortgages that most people opt for, you will pay much less in the long run with a 10-year mortgage.

How does it work?

When you pick a mortgage, there are two things to consider. First is the principal, which is the actual amount of the original loan – or in the case of purchasing a home, the amount you are actually paying the seller for the house. The second is the interest, which is the amount the bank charges you for borrowing its money.

Your bank determines your interest rate based on a variety of factors, including your income and credit rating. The better your credit rating, the better your interest rate, so it’s important to keep your credit in good standing before applying for a loan. If you are thinking about purchasing a new home, now is the time to do it with banks offering some of the lowest interest rates available in years.

If you have a 10-year mortgage, you will have higher monthly payments (after all, you’re paying off the total at a much faster rate than, say, a 30-year mortgage!). However, the amount of interest you have to pay dramatically decreases (again, because you’re giving the bank its money back sooner). If you opt for a 10-year mortgage, you’ll have the opportunity to pay on your loan’s principal much sooner than you would on a longer-term mortgage. That means you’ll be able to save a ton of money in interest by the time all is said and done!

In fact, with a 30-year mortgage you will most likely pay more on the interest than the actual cost of the home. If you get a 10-year mortgage you can expect to pay nearly one-fourth the amount you would pay if you stretched your mortgage to 20 years.

The benefits don’t stop there, though. Many banks offer lower interest rates on 10-year mortgages than they do on 15-, 20-, or 30-year mortgages. That lower interest rate, combined with paying less interest because of the length of the mortgage, can save you some serious money in the long run. You can also receive fixed rate mortgages on a 10-year mortgage, meaning that your interest rate won’t change throughout the life of the loan – just like what the longer mortgages offer.

Even though there are great advantages to a 10-year mortgage, there are plenty of factors to consider before you get one, as well. With a higher monthly payment, you may neglect saving up for emergencies or for retirement. So, before you sign on the dotted line, make sure you take a very realistic look at what your monthly expenses will be. That way, you can ensure the higher payments won’t force you to neglect your other important financial manners.

Furthermore, it is more difficult to get approved for one of these shorter loans, so it’s also important to make sure you check your credit thoroughly before you apply. You are entitled to one free credit report per year, and even if you are not purchasing a new home, it’s important to check your credit report regularly to make sure there are no errors on it that could prevent you from getting a loan in the future.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

San Francisco Real Estate | Bay Area Home Sales Dip – But That’s OK

daniel@realtypin.com Daniel Torelli — Fri, 22 Mar 2013 16:12:08 GMT

After a five year housing slump in California, the last thing people want to hear is that the number of San Francisco housing sales dipped in February. However, that’s exactly what they’re hearing! Sales in the Bay Area are down 6% compared to February 2012, and they’re 1.8% lower than they were in January.

But before you panic, this dip isn’t necessarily a bad thing!

A big part of the reason that the number of home sales here dropped is because there are simply fewer homes on the market. Lower inventory isn’t an issue that’s exclusive to the Bay Area; it’s happening all over the country. With some of the lowest mortgage rates in years, many more people are anxious to buy, and the Bay Area simply does not have the inventory to support this demand.

But here’s the good part – the high demand is driving the prices up for the homes that are actually on the market! Although sale prices in the Bay Area (and all over the rest of the country) are still much lower than they were at the peak of the housing bubble, they are higher than they have been in recent years. So, the combination of high demand and rising prices are leading many local experts to believe that San Francisco’s housing market is steadily recovering.

According to DataQuick, a real estate research firm that calculated last month’s sales numbers, there are other statistics that prove this housing market is on the rise. In a statement, officials from DataQuick said, “Foreclosure activity is well below peak levels reached in the last few years. Financing with multiple mortgages is low and down payment sizes are stable.”

Another sign that San Francisco’s housing market is going better? There has been a shift in the buying trend. Before, most of the homes being sold were older, problematic homes. Now, the bulk of sales is made up of middle-income and higher-end properties. This shift proves that short sales and foreclosures no longer dominate the market – which is great news. It’s also proof that people here are using their money to upgrade to better homes, or at the very least, are making a sizeable first home purchase.

Investors also make up a large portion of this market (28% of sales last month, to be exact). Many times, investors purchase homes with the intention of flipping the home for a profit, to rent the home out, or to use the home as a vacation rental.

Even though home sales dipped slightly in February, the Bay Area still boasts one of strongest housing markets for 2013. San Francisco’s job market improved 3.4% in 2012, and it was in the top job growth for major cities in the U.S. That job growth encourages more buyers to consider relocating here, which means it brings in more out-of-state residents. If this job growth can stay on track, this housing market will continue to improve!

Even with the lower sale prices, San Francisco is still one of the most expensive places in the United States to live. In November of 2012, the homes in San Francisco had the highest square foot cost, with the median square foot asking price of nearly $500. Today, the Bay Area still has some of the highest asking prices and median square foot prices in the country.

See? Minor dips don’t have to be a bad thing. In this case, the whole story points to a market that could see major growth in 2013!

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Dallas Real Estate | Dallas Housing Market Gets Even Stronger

daniel@realtypin.com Daniel Torelli — Thu, 21 Mar 2013 15:47:10 GMT

The Dallas-Fort Worth housing market has been booming for quite some time now, making a speedier recovery than most other major metropolitan areas in the nation. But February's numbers were impressive even for Dallas’ standards!

According to the Real Estate Center at Texas A&M University, existing home sales in the 29 counties that make up North Texas increased 14% in February from a year ago. When you add January and February’s numbers together, home sales here are up 17% compared to the same time period of 2012.

But there’s even more good news. Not only was the number of sales up, but homes here are also selling faster – and for more money – than they were in February of last year!

Last month, a total of 5,325 homes sold in the area for a median price of $155,000. That's an 8% increase in median price compared to February 2012, and realtors credit a lack of inventory for the boost. Right now, there are only 21,911 homes listed for sale in the area, which is a 21% decrease from this time a year ago.

Compared to January, the number of new listings for February remained flat, but experts expect more homeowners to list their properties for sale during the warmer spring months. In the meantime, though, that lower inventory is giving the market a boost. After all, fewer homes on the market means that sale prices can go up, and the increase in demand makes them sell faster. On average, homes in Dallas-Fort Worth are now selling within 74 days of being listed. That's a 20% decrease from February 2012.

From an individual community standpoint, the Summerfields and Park Glen neighborhoods in Fort Worth had the most home sales in February, with 147 properties changing hands. South Fort Worth (south of I-20) was also popular with buyers, with 129 home sales recorded during the month of February. That's a 30% increase from a year ago!

Percentage-wise, the communities with the largest increase in sales were Kennedale (133%), Central West Arlington (118%), and Downtown Fort Worth (100%). In all, of the 32 communities included in the study, 26 reported more home sales this February than a year ago.

Southlake had the highest median sale price for the month, rising to $550,750. That’s a 21% increase from last February. The biggest change in percentage came in Halton City and Riverside, where the median sales price was $78,700. That's up 75% from the same month one year ago.

Despite the impressive numbers, there's still a ways to go before Dallas and Fort Worth can claim that the local housing market has completely recovered.

For example, 13 of the 32 communities surveyed saw their median sales price decrease from a year ago, but realtors expect most of those areas to see a reversal in fortunes since there's such a shortage of inventory available.

Neighborhoods like Everman and Forest Hill in South Fort Worth are hoping the realtors are right. Those communities saw the number of sales and median sales price both drop off significantly since last year. But if the surrounding suburbs are any indication, those communities should see their sales pick up soon, and overall, the housing markets in both Dallas and Fort Worth are definitely doing better than much of the country!

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Washington D.C. Real Estate | D.C. Sellers Are Coming Out of Hiding

daniel@realtypin.com Daniel Torelli — Thu, 21 Mar 2013 15:44:22 GMT

D.C. Sellers Are Coming Out of Hiding

Like many other major metropolitan areas around the country, the Washington D.C. area has recently experienced a shortage of homes for sale. Across the nation, millions of homeowners who want to sell their home simply can't afford to because they are underwater on their mortgages, meaning they owe more on the home than it's currently worth.

But in the District of Columbia, there were two other factors that recently contributed to homeowners not listing their properties for sale.

As lawmakers first argued over the fiscal cliff, and then sequestration, many government employees living in the nation's capital worried if their jobs would be eliminated by federal government cutbacks. Nothing will make you more apprehensive about listing your home for sale than the thought of unemployment or financial insecurity! Now that both of those issues have been sorted out, it seems that homeowners in Washington, D.C. are willing to test the waters and attempt to sell their homes.

In fact, while many other cities continue to see a dropoff in listings, the number of sellers in D.C. is steadily increasing!

According to a report released last week by the RealEstate Business Intelligence and the George Mason University Center for Regional Analysis, new listings in the area increased 13% from January to February.
In all, there were 4,541 new listings in February in the D.C. area. But despite that 13% increase, year-to-year comparisons show that there is still a shortage of homes for sale.

Even with the more than 4,500 new listings, there were only a total of 6,092 homes for sale in the D.C. metro area last month. Compare that to February 2012, when there were 9,823 homes on the market. According to local real estate experts, the five-year average for the month of February is 12,525!

Luckily, experts expect more homeowners to list their properties in the months to come, thanks to increasing home sales prices. The median sales price climbed to $355,000 in February, which is a 3.4% increase from the previous month and an 11.7% jump from February 2012.

Single-family detached homes had the biggest price gains (they were up 19.5% from February 2012), but condominiums were the most popular among buyers, with condo sales accounting for nearly 30% of all sales in the region during the month of February.

Because of the shortage of homes for sale, homeowners here are usually getting their asking price when they sell. The average sale-to-list price ratio climbed to 97.1% in February, which is the highest that percentage has been since June 2006.

The low inventory has also influenced how quickly homes are selling. The average for days on market – meaning how long it takes the home to sell once it's listed – was only 60 days in February. That's down from 63 in January, and significantly less than the 85 day average from February of last year.

When you combine all of this data together, you can see why more homeowners are listing their properties. Obviously, as the inventory of homes increases, home prices should stabilize, but many homeowners in the Washington D.C. area think now is the best time to sell their home. So, that's exactly what they're trying to do!

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Hotter Housing Market Leads to More Home Renovations

daniel@realtypin.com Daniel Torelli — Wed, 20 Mar 2013 15:31:31 GMT

The phones of home builders and remodelers have been ringing off the hooks recently, but none of them are complaining about their increased workloads! After all, when the economy crashed back in 2008, few industries were affected as badly as home construction was. Americans no longer had extra income to spend on remodeling, so they postponed all home improvement projects except the ones that were absolute necessities. Gone were the days when people would remodel the entire home, opting instead to only repair leaky roofs or to replace failing heating systems.

But now that the economy and housing market are recovering, homeowners are once again hiring builders to make renovations to their homes.

In fact, according to the Joint Center for Housing Studies at Harvard University, the jump in spending on home improvements actually started last year, when consumers spent $126 billion nationally. That was a 10% increase from 2011. The Center projects that spending on home renovations could increase an additional 20% this year, thanks in large part to a boost in the economy.

Home prices are steadily rising, the Dow Jones industrial average surged to a record high last week, the Labor Department reported that U.S. employers added 236,000 jobs nationwide in February, and the unemployment rate is at a four-year low. All of that leads to increased consumer confidence, and when homeowners feel secure about the finances, their job security, and the economy as a whole, they are more likely to spend some of their expendable income.

With home prices increasing, many Americans are choosing to spend some money sprucing up their homes so that they can put them on the market. They're calling contractors, interior designers, and architects – and they aren't just making minor repairs! Instead, many homeowners are paying for ambitious projects, like adding entire rooms, finishing basements, tearing down walls, and upgrading kitchens and bathrooms.

“There’s a sense of momentum,” said Stephen Melman, the Director of Economic Services at the National Association of Home Builders, when he spoke to the Boston Globe last week. “There’s still a lot of caution out there, but we’re definitely seeing more activity.”

Many builders say they've received more calls in the last month than they did all of last year. The increased workload means more money in their pockets, which is definitely good news for an industry that has struggled in recent years.

Builders aren't the only ones benefiting from the boost in home renovations, though. Building supply companies are reporting sales increases, architects and engineers say their services are in higher demand, and home improvement companies like Home Depot and Lowe's are opening new stores and hiring additional employees at locations around the country.

Of course, for all of those businesses to make money, someone has to be spending it, but homeowners who are undertaking remodeling and renovations are hoping for a big return on their investments.

In most major metropolitan areas across the nation, the housing market has become a seller's market. There simply aren't enough homes for sale to keep up with the number of people wanting to buy a home. This has led to multiple offers on the same home, high-dollar bidding wars, and higher home prices. Homeowners who want to sell know that now is the time to list their property, but many need to make some changes to their homes before putting them on the market.

The renovations and upgrades should pay off, especially since analysts expect a plethora of new listings in the months to come. They say many homeowners will be anxious to take advantage of the rising home prices, and the market could shift from a seller's market to a buyer's.

If that happens, any and all upgrades will be an added selling point!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Staging | The Top 4 Scents That Will Make Your Home More Appealing

daniel@realtypin.com Daniel Torelli — Wed, 20 Mar 2013 14:35:41 GMT

Most home sellers know the basics of attracting buyers, but in the past few years, people have gotten even more creative by using special scents in their home. That way, they can leave a lasting impression and generate positive feelings about their home from potential buyers. In recent years, realtors have encouraged sellers to burn nice-smelling candles or even to bake a pie before their homes were going to be shown so that people would get a warm and happy feeling when checking out homes. In this case, the nose knows best! Luckily, you don’t have to go to the trouble of baking anymore, but you should certainly consider one of these top five scents for your home to make your home more appealing:

1. Fresh flowers
A study done by Rutgers University found that flowers generate all kinds of positive emotions. So, if you want to stir up all of those good feelings in your potential buyers, have some fresh flowers in the kitchen or right in the entryway. Not only are they pretty, but they serve as a natural air freshener for your home as well! Which flowers are best? When picking out a bouquet, you may want to opt for sweet pea. The scent is similar to brown sugar, and it has been known to promote a sense of well-being. Sweet pea also lasts longer than other flowers, which means you’ll be able to impress more than one potential buyer before you need a fresh batch.

2. Fruit
Although you may not want to use fruit-scented candles or plug-ins throughout your entire home, it is a good idea to use fruit in your garbage disposal to eliminate any smells that can come through your sink. After all, old food can sit in your garbage disposal and give off an odor that can be rather unpleasant! By grinding up chunks of grapefruit or lemon, you can add a fresh scent to your entire kitchen and eliminate any negative odors (and feelings!) that may waft up from your garbage disposal.

3. Cinnamon
Adding a cinnamon smell to your home will provide a comforting and inviting environment for potential buyers. That’s because the smell makes people remember all kinds of good memories – like their mothers baking in the kitchen, or drinking hot apple cider on a chilly fall day. Studies have found that men are typically more attracted to the smell of cinnamon, but this spice can bring on happy and warm feelings in both genders.

4. Lavender
Lavender is the number-one scent used in aromatherapy for its calming and therapeutic capabilities. As a member of the mint family, the aroma can reduce stress and provide a relaxing affect. This scent is especially effective on women.
As an added bonus, lavender has also been found to reduce coughing and breathing problems. That means this scent can entice buyers and improve their health!

Using scents in your home is a great way to attract buyers and leaving them with a positive experience. Whatever scent you decide to use in your home, it’s important not to go overboard. An overpowering scent could be distracting and a turn-off for potential buyers. Your scent should just barely be noticeable to be most effective.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Staging | The Top 5 Easiest Ways to Stage Your Home

daniel@realtypin.com Daniel Torelli — Wed, 20 Mar 2013 14:19:08 GMT

Staging your home is a very important part of the selling process. After all, it’s important that your home is uncluttered, clean, and free of any personalization so that potential buyers won’t be distracted by your personal taste! A buyer needs to see essentially a clean slate so they can put their imagination to work with how they would make the home their own. So, what are the easiest ways to stage your home? Just take advantage of our top 5 tips!

1. Enlist the help of a professional
Home stagers are professionals who know exactly how your home should look to get the highest response from potential buyers. They can go room by room and assess the staging needs. These consultations typically include a paint analysis, furniture placement, and most importantly, an honest assessment of what is going to maximize your home’s buying potential. If a professional home stager is not in your budget, then there are plenty of other resources to help you stage your home. Head to your local book store and pick up a book or two on the subject or spend some time browsing the internet where you can find plenty of articles and blogs to help get you started.

2. De-clutter
Your home needs to look as clean, neat, and spacious as absolutely possible. Clutter isn’t just dirt and trash, though. It can mean anything as small as personal trinkets to as big as furniture. In fact, if you’ve got a lot of stuff, you may want to move it into storage during the selling process. The price of a storage unit will be worth it if you can sell your home faster! Remember, extra “stuff” makes your home look smaller, which is the last thing you want when you’re trying to get the highest possible price for your home. Pack up any clothes you won’t need as well as anything else that takes up space in your closet. The last thing you want is for a potential buyer to think there is not enough space in the home for all of their things!

3. De-personalize
Although your children’s handmade finger paintings may have sentimental value, they are distracting (or even an eye sore!) to a stranger. Take down anything that is purely personal and not functional in your home. This also includes family photos or any souvenirs from family vacations. When staging your home, it is best if it really doesn’t look like anyone is living there at all. This gives the buyers a sense that they can make the home their own quickly and easily.

4. Deep clean
You may be surprised to hear what kind of “unofficial inspection” a buyer will give your home. Opening closets, drawers, and cabinets is not uncommon when a serious buyer enters your home. Although cleaning may seem obvious, a deep clean is incredibly important for your home. Want to make sure it’s really clean? Walk through, turn on all the lights, and open up the blinds and curtains before a buyer comes through. The extra light will make the rooms appear bigger and more open, and it also gives you a chance to make sure every room is clean and free of clutter, dirty dishes, or laundry for every showing.

5. Go the extra mile
Make your house look like a home by and adding special touches to set it apart from the other homes for sale in your area. For example, walk around your home and make sure there is nothing cracked or broken. Pressure spray your sidewalk and plant flowers at the front of your home to add color to your house. This extra effort will make buyers more inclined to want to make the home their own!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Do Fewer Foreclosures Mean for You?

daniel@realtypin.com Daniel Torelli — Tue, 19 Mar 2013 15:26:37 GMT

As the housing market continues to improve, fewer Americans are losing their homes to foreclosure. In fact, the number of homes repossessed by lenders dropped 11% last month, and is down 29% when compared to February 2012. We haven’t seen a foreclosure rate this low September 2007!

Just how much have they dropped off in recent months?

Real estate experts typically consider 20,000 foreclosures per month across the entire nation to be a “healthy” amount. Last month, 45,038 homes completed the foreclosure process. Even though that’s more than twice the “healthy” amount, it's less than half of the number of home foreclosed back in March 2010, when the number peaked at 102,000.

This decline is good news for everyone involved in the housing market. Buyers, sellers, and even homeowners who are just waiting to see more value in their home before listing it benefit from fewer foreclosures.

How so?

After all, you would think that buyers would like a market flooded with foreclosures because it decreases the value of everything else – meaning there are bigger bargains. But purchasing a foreclosure can be a risky undertaking. Remember, many foreclosed homeowners damage the property before they leave, or simply didn’t maintain it properly to begin with. As a result, most foreclosure purchases are fixer-upper homes or investment properties, purchased with the intent of flipping.

Yes, fewer foreclosures means a smaller inventory of homes available, and with lots of buyers potentially bidding on the same home, that can make it harder to purchase one. But once buyers find a non-foreclosure they like and make an offer the seller likes, they can usually rest assure that the property has been well-maintained.

For sellers, the direct impact of fewer foreclosures is a bit more obvious. When a local market is flooded with distressed properties, there are more homes for sale than there are buyers willing to purchase them. That drives home prices down. But when there aren't a lot of homes available, it becomes a seller's market.

Most major metropolitan areas are becoming a seller's market. As a result, sellers have been able to, essentially, name their price – and stick to it because they know someone will pay what they are asking for. And, in many cases, multiple buyers are making offers on the same home. The more buyers that are engaged in a bidding war, the higher price the home will ultimately sell for. A higher sales price is always good news to a seller!

For current homeowners who aren't ready to list their home just yet, but are considering doing it down the road, fewer foreclosures also helps their cause.

How?

We've already established that in most cities around the country, there are not enough homes for sale to keep up with the demand from prospective buyers. That lack of inventory is driving home prices up. For many homeowners, that's what they've been waiting for, so they may soon list their properties.

Millions of homeowners across the country purchased their home during the housing bubble when prices were at all-time highs, and after the market crashed, they became underwater on their mortgages, meaning they owe more on the home that it's currently worth. But as home prices go up, the value of their homes will get closer to amount they paid for it, so they are more likely to list the home if they can break even or only lose a small amount by selling.

Even homeowners who are behind on their payments benefit from fewer foreclosures. Banks almost always lose money on homes they've seized due to foreclosure. But since it's a seller market, they are getting more reselling the foreclosed properties now than they have in recent years. Because they are losing less on foreclosure resells, banks are now more willing to negotiate a short sale with a borrower who is at risk of foreclosure.

So, as you can see, everyone benefits when there are fewer foreclosures on the market!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Do Young Homeowners Want?

daniel@realtypin.com Daniel Torelli — Tue, 19 Mar 2013 15:23:49 GMT

Young homeowners have different needs and wants than their parents, according to a recent survey. This new generation doesn’t want a standard home, and they are willing and able to take on DIY projects to transform their home into something unique and personal to their own needs and wants.

So if you’re about to list your home for sale, how do you know if younger buyers will want it?

According to real estate experts, the latest trend with young homeowners is that they want a home that has character and is unique, even if that means it’s a fixer upper. The days of the so-called “McMansions” and cookie-cutter homes are gone in this generation’s eyes. Realtors around the country have found that young homeowners aren’t afraid of buying a home that needs some TLC – and many of them would actually prefer to fix up their homes themselves!

These results may be somewhat surprising, since many people consider the younger generation coddled and maybe even lazy, but the latest buying trends suggest that when it comes to buying a home, young homeowners are ready to dive right in and tackle the big projects on their own. It may stem from a generation where DIY videos are available online at the click of a mouse. Whatever the reason, though, this generation is less likely to call on a professional for home repairs!

Size is also not that important for young buyers when they are looking to purchase a home. Having the biggest house on the block is not important to them, and instead, many prefer a more practical approach for their home. This demographic is more interested in a home that is functional, with every room having a specific purpose. For example, young homeowners are less likely than their older counterparts to want both a breakfast nook and a formal dining room. For them, it’s more important to have a home that doesn’t waste a ton of space.

The biggest thing that sets younger buyers apart from their older counterparts is the importance of technology in the home. High-efficiency appliances have been topping the wish list when young buyers are house hunting. At the very least, they want a home that’s got up-to-date appliances and, ideally, a security system. They’re also on the lookout for homes that are energy efficient from top to bottom. Young homeowners don’t want to drive up their utility bills or negatively impact the environment!

Although this group of buyers doesn’t mind putting a little elbow grease into their homes, they’re looking for homes that are already wired for the latest technology. For example, many young homeowners are interested in having space for a home office that’s all ready for wifi. For this group of people, a home theater is more important than a “traditional” living room. In fact, the more technologically-advanced the home is, the better it looks to this demographic!

Bottom line – the needs and wants of young home buyers are awfully different than the needs and wants of older generations. So, depending on what your home has to offer, you may be able to predict how old the buyer will be!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Downpayment Help

daniel@realtypin.com Daniel Torelli — Tue, 19 Mar 2013 14:48:09 GMT

In years past, you could get a mortgage approval with little to no down payment. But after the housing market collapsed in 2008, banks became much stricter with their lending guidelines. These days, you have put down a big chunk of money if you want to get a home loan. Most banks won't even talk to you unless you can put down at least 10% of the home's purchase price. (Although, 20% is the magic number if you want to avoid having to purchase private mortgage insurance.)

So how exactly do you come up with all of that money to put down? Here are our top 4 tips:

1. Establish a budget and savings plan
You can’t do anything until you sit down and create a budget. First, subtract your monthly bills from your take home income. That's money that you have to spend. Then, try to find places where you can make some cuts, like going out to eat or money you spend on shopping. Once you've figured out how much you plan to save, play it safe by setting up an automatic transfer into a savings account. That way, you won’t be tempted to spend it! (Set up the transfer to occur as close to payday as possible, so that you never have to cut anything too close.)

Luckily, the money will add up fast! For example, if you set up an automatic transfer of $200 every two weeks, you'll put aside $400 a month, or $5,200 a year.

2. Apply for government assistance
The federal government used to offer down payment assistance programs, but those programs got cut in 2008. The good news is that many state and local agencies still offer down payment assistance, so check with your city, county, and state housing agencies to see if they have any programs available and if you qualify. Some states will give you up to 3% of the down payment, closing costs, or both, so it never hurts to ask!

And, if you're a veteran of the Armed Forces, you may qualify for Veterans Administration (VA) loan, which doesn't require a down payment.

3. Get indirect help from the IRS
If you have a problem saving money, get Uncle Sam to do it for you! If you change your withholdings exemptions to zero on your W-4 form, the IRS will take some extra money from your paychecks. Yes, that means you'll get less now, but when tax season comes around, you'll owe less in taxes or have a larger refund, which you can use as a down payment on a home.

4. Use your retirement account
The federal government allows you to withdraw up to $10,000 from your IRA account without having to pay the usual 10% penalty tax for early withdrawals, as long as you tell them that you’re using the money to buy a home. (You’ll still have to pay the regular income tax on the amount you've withdrawn, though!) 401k plans aren't eligible, but you can always roll over some of your 401k money into an IRA account, and then withdraw it. Ask your company's HR representative if your plan allows for this, and if there are any special rules that apply.

Hopefully one or more of these tips will help you secure the funds necessary to make the down payment on the home of your dreams!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Short Sales | The Top 3 Reasons Why Short Sales are Popular

daniel@realtypin.com Daniel Torelli — Mon, 18 Mar 2013 15:41:17 GMT

A quick glance at recent data shows that the number of homes that end up in foreclosure is declining across the country. A more stable economy and job market have allowed many borrowers who are behind on their payments to catch up on their past due amounts. Others have been able to take advantage of the near record low mortgage rates and refinance or get a loan modification. While it is true that the housing market is beginning to show signs of recovery, something else might also be at play as to why we are seeing the number of foreclosures drop – the short sale.

More homeowners who have defaulted on their loans and are at risk of losing their homes are opting for a short sale instead of a foreclosure. A short sale is when the homeowner sells their home for less than what they owe on the mortgage, and the bank typically eats the difference. Short sales used to be rare, but recent statistics show that as foreclosures have become less prevalent, short sales have simultaneously become more common.

So, why the shift in philosophy among homeowners, lenders, and real estate agents? Here are the top 3 reasons why we think short sales are so popular these days:

1. Quicker turnaround
Before a lender can foreclose on a borrower and seize the home, there are many steps they have to follow. All of these steps can be time consuming, and depending on the state where the foreclosure is taking place, court hearings are sometimes required. The federal government is already investigating illegal and immoral practices by many of the largest lenders during foreclosures that took place over the last five years, so banks don't want to break any additional laws or raise any more red flags. Therefore, they are following every rule and making sure everything is done according to the books. In some states, foreclosure proceedings are so backlogged at the court level that it is taking more than three years for a foreclosure to go through the system! But with a short sale, the whole process is much quicker. First, the lender has to agree that the homeowner can avoid foreclosure by selling through a short sale.
Then, once a prospective buyer makes an offer on the home, the lender has to agree to that price. If the parties come to an agreement, the house is sold, and essentially, the transaction is complete.

2. Less paperwork
Because the court systems aren't usually involved in a short sale, there is less paperwork that is required. Yes, all parties (the buyer, the seller, the lender, and real estate agents) still have to fill out forms and legal documents, but a short sale doesn't typically require any more paperwork than a traditional home sale. Less paperwork means fewer headaches, less red tape, and an overall quicker transaction.

3. Lenders are more willing to go this route
In the past, lenders looked at all distressed properties the same. But after the housing crisis, many banks have wised up and now realize it's better to allow a homeowner to sell their home through a short sale than deal with the hassle of a foreclosure. Do lenders lose money on a short sale? Absolutely. If the homeowner owes $200,000 on their mortgage, but only gets $150,000 for the property through a short sale, the banks would rather eat the other $50,000 than have to spend time and money dealing with a foreclosure.

Plus, short sales don't usually have legal fees attached to them, so in the banks eyes, the faster they can cut their losses, the better.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Can Your Mortgage Pay For Your Home Renovations?

daniel@realtypin.com Daniel Torelli — Mon, 18 Mar 2013 15:37:14 GMT

Trying to find the money to buy a home and make renovations to it can be frustrating. After all, many lenders won't approve a mortgage for more than the home is worth, and if they do, the money usually comes with stipulations like requiring you to use a certain contractor for the remodeling.

But there is a way that your mortgage can pay for your home renovations – without all of the extra rules!

It's called a 203K loan, and it is a product from the Federal Housing Administration (FHA) that permits borrowers to finance not only the price of their home, but also the cost of needed repairs or renovations.

How does it work?

Simply put, this type of mortgage allows you to borrow against the future equity of your expanded home. As a result, many lenders consider it to be the best kept secret in the mortgage business. The mortgage can be taken out for 110% of value of the home, once all of the repairs are completed. Like all other mortgages, the interest rate for a 203K loan fluctuates, but it is usually under 4% (at least, these days!)

So, how do you get your hands on one?

To qualify for this type of loan, borrowers must have a minimum credit score of 640, and one thing to keep in mind is that closing costs are usually higher on these loans than on traditional mortgages because of the extra home inspections that are involved for approval.

Mortgage experts say the most important step in the process is finding a lender who has experience with this type of loan. There is certain paperwork that they must fill out, so it's crucial that they know what they're doing.

The 203K loan is available to buyers who are purchasing a home and to those who want to refinance an existing mortgage. The term for this type of mortgage is usually 30 years, and there are other stipulations that must be followed, but none that are outrageous or unreasonable. They simply require that you hire a licensed contractor to do the reconstruction work, and all of the work must be completed within six months.

The FHA has created those two requirements in order to make sure that all repairs and renovations are completed in a timely manner. After all, the sooner the repairs are done, the faster they can insure the loan. Remember, they’re basing everything on the home's value after the renovations are complete.

If you're concerned about finding the right contractor, don't worry. Lenders who offer this type of loan have an accreditation program for contractors who do the work, so just ask them for the list. That way, your contractor will know exactly what is expected of him, the FHA and your lender will know that the work will be completed on time, and you can relax knowing that the work is being done by a qualified professional.

Like all FHA programs, there is a lot of paperwork associated with this type of loan, but a lender who has experience with a 203K loan will make sure that every form on the checklist is filled out and submitted properly.

As far as payment goes, your contractor will be paid as the work is completed, and inspections will be done throughout the renovation process. The thought here is that by releasing the money to the builders once certain benchmarks are met, instead of them receiving 100% payment up front, homeowners can rest assured that the remodeling will be completed sooner rather than later.

If you'd like information on the 203K loan program, visit the U.S. Department of Housing and Urban Development's website at portal.hud.gov.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Price Increase Best Since 2006

daniel@realtypin.com Daniel Torelli — Mon, 18 Mar 2013 15:35:06 GMT

Just how much are home prices increasing these days? Maybe more than you think!

According to a report released last week by real estate data analysis firm CoreLogic, home prices around the country went up 9.7% in January, when compared to the same month the previous year. Not only is that almost a double-digit increase, but is also the biggest annual jump prices have made since April 2006!

The winter months are usually the slowest for home sales, but January marked the 11th consecutive monthly increase. In fact, the number of home sales around the country went up 8.3% from November to December, and another 0.7% from December to January.

CoreLogic predicts a slight dropoff in sales from January to February, but those numbers won't be available for another couple of weeks. But even if the number of sales goes down a little bit, they expect the prices to keep going up. Specifically, they anticipate a 9.7% increase in the year-to-year growth when comparing February 2013 to the same month a year ago.

“With these gains, the housing market is poised to enter the spring selling season on sound footing,” CoreLogic chief economist Mark Fleming said in a statement that accompanied the report.

So, why are home prices the highest they've been in almost 7 years?

For one, there is a lack of inventory available right now, and economists think that buyers are getting nervous that they may be missing out on a good time to buy a home. So, more prospective homebuyers are checking out what's available and bidding on homes that are still within their price range.

A decline in the number of foreclosures has also helped home prices go up. During the housing crisis, the market was flooded with distressed properties. They not only over-saturated the market, but lowered home values, because those properties are sold so far below market value. At the height of the housing crisis, about 33% of all of the homes for sale were foreclosures. Now, though, only about 20% of the homes for sale are foreclosures. That’s still a big chunk, but certainly much lower than it had been!

Now that the housing markets in most states are seeing fewer foreclosures, their home prices can go up, thanks to the simple rules of supply and demand. When there were a lot of foreclosures on the market, the glut of distressed homes drove down prices. Not only were they listed at lower prices, but there were far more homes for sale than there were people interested in or capable of buying them.

Because there were so many bargains to be had, investors started buying these properties. The foreclosures started to clear out, and average consumers began to have more confidence in the economy, prompting them to go house hunting again. Now, it has become a seller's market in many parts of the country, there are more people interested in buying a home than there are homes currently listed for sale. When the demand goes up, so do home prices!

Some analysts worry that there may be more foreclosures headed our way because many states have instituted policies that make it difficult and more timely to process a foreclosure. Once those properties make their way through the court systems, housing markets in states like Maryland, New York, New Jersey, Florida, and the District of Columbia may be flooded with foreclosures once again. Experts can only speculate how long that will take in each state, and aren't sure how it will affect the markets once it happens.

For now, though, they are focusing on only one thing – the fact that home prices are continuing to rise!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Interest Only Mortgages | What You Need To Know

daniel@realtypin.com Daniel Torelli — Sun, 17 Mar 2013 16:17:50 GMT

The same type of mortgage that pushed many homeowners into foreclosure during the housing crisis is becoming very popular again, but this time, among a different demographic.

What is it?

Interest-only mortgages – or, loans where borrowers pay interest but no principal during the first few years of the loan. These types of mortgages have monthly payments that are usually 30% to 40% lower than traditional mortgages, and are even cheaper now than in years past, thanks to near record low interest rates.

When the housing bubble was at its peak in 2006 and 2007, interest-only mortgages were popular among home buyers who were looking for a way to keep their monthly mortgage payment as cheap as possible during the first few years of homeownership. Today, though, these loans are popular among affluent buyers.

Just how popular are they?

It’s estimated that 14% of all private mortgage originations from January to October of 2012 were interest-only mortgages. National lender EverBank told the Wall Street Journal their numbers are similar, stating that interest-only mortgages account for 15% to 20% of all the jumbo mortgages it originates. In fact, interest-only mortgage are becoming so popular that many lenders who avoided this type of loan in the past are now offering them.

The affluent borrowers who are taking out these types of loans can certainly afford higher monthly payments, but are choosing the interest-only mortgages so that they can divert the savings to income-generating investments. In other words, they are taking the money that they would be putting towards the principle of the loan and investing it for the time being in stocks, money market accounts, savings, etc. The same goal could be accomplished by taking out an adjustable rate mortgage, but interest-only mortgages usually have fixed rates.

Sounds great, right? They are an attractive option for prospective home buyers, but there are a few things you need to keep in mind if you're considering applying for an interest-only mortgage.

First, you better have a lot of money. Lenders are much stricter with their underwriting guidelines these days, so they are only going to approve applications from prospective home buyers who have significant assets.

Why? In addition to their risky past, lenders are also paying attention to new rules recently announced by the Consumer Financial Protection Bureau that go into effect in 2014. These rules allow borrowers to file lawsuits against lenders who granted them loans that were considered high risk and ultimately led to a foreclosure. Interest-only mortgages carry greater liability, so lenders are only going to provide this type of loan to borrowers to who unlikely to fall behind on payments.

Also, you need to remember that private loans are mostly held on lenders’ books rather than sold to government-backed agencies. That means anyone hoping for assistance from the Federal Housing Administration or Veterans Administration home ownership programs won't qualify for an interest-only loan.

So, if you can't work things out with the lender directly, you aren't going to get approval for this type of loan. But then again, if you have to apply for government assistance, the banks won't consider you affluent enough for this type of loan, so it's unlikely that you'd even apply for one. In fact, most Americans don't have the financial assets to get an interest-only loan, but for those who do, it is an option worth considering!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Sandy Victims Getting Unfair Mortgage Pressure?

daniel@realtypin.com Daniel Torelli — Sat, 16 Mar 2013 17:06:36 GMT

When Hurricane Sandy hit the East Coast back on October 29th, people were killed, homes were destroyed, beaches were ravaged, and towns were flooded. Most of the physical damage has since been cleaned up, but the effects of the superstorm are still being felt today by many Americans – but Mother Nature isn't to blame for what’s going on now!

Instead, the New York Department of Financial Services (NYDFS) has begun investigating banks around the Empire State, to determine whether or not they are being unfair to homeowners who are behind on their mortgage payments.

After the storm, most of the major lenders told Sandy victims that they could skip their mortgage payments for up to six months without having to pay any late fees or without being forced to make up all the payments at once. But now that those grace periods are starting to end, it appears as if some of those lenders are going back on their promises. Many homeowners in New York have contacted state officials, claiming that their banks are demanding that they make all of their mortgage payments – right now, in full.

The state's Department of Financial Services responded to those complaints by starting an investigation. They are trying to determine if lenders are forcing full payments, and if those same banks have improperly reported the skipped payments to credit agencies. If they have, they’re violating the law!

State officials are also concerned that some lenders may be using the missed payments as an excuse to start foreclosure proceedings.

Benjamin Lawsky, the Superintendent of NYDFS, is in charge of the investigation. He says he’s frustrated with lenders for putting homeowners in this situation.

Lawsky recently told the Long Island Newsday, “It doesn't make sense. If someone couldn't pay for three months because of Sandy, there is no way they are going to be able to make three months' worth of payments today.”

But leaders at the Mortgage Bankers Association point out that federal housing guidelines give lenders some options on how to collect missed payments at the end of a forbearance. They’re urging anyone who can't make their lump sum payment to renegotiate their repayment schedule or to ask for a loan modification from their bank.

The NYDFS has not named the banks that triggered the probe, but one major lender is making sure everyone knows they aren't among the rule breakers. JPMorgan Chase announced last week that they will allow borrowers to make up missed payments when the term of their loans expire. Executives at the company say they will automatically adjust those loans without documentation and at no cost to the homeowners. In layman’s terms, that means that if a borrower is three months behind on their payments, JPMorgan Chase will just make the term of their loan three months longer.

The Chase program does not apply to all of their home loans though. Loans held by Fannie Mae and Freddie Mac require borrowers to apply for a loan modification if they want to put the missed payments at the end of the loan term. Still, leaders at the Long Island Housing Partnership applaud JPMorgan Chase's efforts, and say other lenders should follow their lead.

The NYDFS has not announced when their investigation will be finished or what the penalties will be if the probe finds that some lenders put unfair mortgage pressure on homeowners.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

New York City Real Estate | Is New York Housing Too High-End?

daniel@realtypin.com Daniel Torelli — Fri, 15 Mar 2013 14:51:48 GMT

Just how hot is New York real estate these days?

Last year, in Manhattan alone, property owners sold 158 development sites, up 51% from 2011. Those sales totaled $3.12 billion, which was a 128% increase from the year before. Not only was the land more expensive, but it was highly sought-after, too. In fact, one New York property sales company executive said he's had as many as 40 different developers bid on the same property! Amazingly, land in New York is more expensive now than it was at its peak in 2007, so only buyers with deep wallets can afford to shop here.

How expensive are we talking?

The government of China bought a 2.19 acre piece of property for $54 million, and development firms have recently purchased buildings and/or land for $70 million, $253 million, and $277 million. And, those expensive price tags have a direct impact on the types of buildings developers are putting on their recently-purchased land. Because they have to pay so much for the land, if developers want to turn a profit on their investment, they can't afford to build anything on it but high-end condos.

A perfect example of the trend is what Macklowe Properties plans to do with the property they bought at 737 Park. Currently, the building has roughly 100 apartments that were previously for rent. They are converting those units into 50 condos, all of which will be up for sale, ranging from 3,000 to 6,000 square feet, and at an average cost of $4,000 per square foot. And in most places, developers don’t have anywhere to go but up. Since they can't expand outward, many developers are constructing buildings that are taller, in order to fit more condos in (and, thus, make more money). In fact, right now, there's a proposed rezoning of Midtown East to allow more sky scrapers. New York City Mayor Michael Bloomberg is big supporter of the proposed zoning changes – so much so that's he pushing for them to be passed before he leaves office at the end of the year.

So, what does this mean if you’re house hunting in New York City?

Wealthy foreign buyers love the additional luxury condominiums, but the shift to high-end housing is bad news for New York's working force. Middle class New Yorkers – including teachers, fire fighters, and police officers – are already struggling to find affordable housing within the city, and it will only become harder for them in the future.

One realtor says home ownership will not be feasible for these individuals, so they will likely have to rent instead of buying a home. The problem is there may not be able enough apartments for rent, since many developers are buying apartment buildings and converting them into luxury condos for sale. Last month, the JDS Development group bought a parcel of land from billionaire Sheldon Solow for $172 million that stretches an entire block along the East River. It's zoned for residential use, and the developers plan to build two towers with a total of 830 apartments for rent. But that piece of property is the exception, rather than the rule. Unless other developers build similar structures with the intent of renting instead of selling the units, there could be a serious housing shortage for middle class New Yorkers.

So in a city that prides itself on its “survival of the fittest” mentality, it seems the rich may get richer and the poor may get poorer, at least when it comes to owning a home. If you’re looking for an affordable place to live, you and your realtor are going to put in some extra work!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Phoenix Real Estate | Phoenix Home Sales are “Short”

daniel@realtypin.com Daniel Torelli — Fri, 15 Mar 2013 14:45:24 GMT

It's a well-documented fact that if you're looking for a bargain on a home, Phoenix is a great place to start your search – but you better have plenty of cash available if you want to play the game.

In 2012, 34% of all home sales in the metropolitan Phoenix area were foreclosure-related. As a result, for the last few years, droves of investors have been flocking to the Arizona desert to scoop up foreclosed homes. They're fixing them up, renting them out, and playing the waiting game. Then, when home prices go up, they’re hoping to sell those homes for a substantial profit.

However “traditional” buyers who want to purchase a home as their primary residence have become frustrated, because they often lose out to these investors. While the prospective homebuyers are busy applying for mortgages, the investors are out offering sellers cash. Because they’re doing cash-only transactions, they can work much faster than “traditional” buyers.

And, it doesn't look like the out-of-town competition is going anywhere soon. While the number of foreclosure sales in Phoenix is decreasing, short sales are on the rise. A recent study by real estate research firm RealtyTrac indicates that banks are opting to take significant losses on homes through short sales rather than go through the lengthy and expensive foreclosure process, and buyers are taking notice. Short sales in the Phoenix area went up a whopping 43% during the fourth quarter of 2012, when compared to the fourth quarter of 2011. Those numbers led RealtyTrac to name Phoenix the 14th best city to buy a short sale.

But why are short sales so popular here?

For starters, people love the bargains that come with short sales! Plus, it's a lot easier to buy this type of distressed property compared to a foreclosure. The average short sale in the Phoenix area sold for $149,094 during the fourth quarter, and took slightly more than six months to close. Compare that to foreclosures, which can sometimes take multiple years and several court hearings before the transactions are finalized.

Foreclosures aren't just time consuming, they're also expensive for banks, so many are opting to go the short sale route instead, even if it means taking a loss. The average amount short – meaning the difference between the sales price and the amount owed to the bank – was $98,479 in the metropolitan Phoenix area during the fourth quarter of 2012. That is significantly higher than the nationwide average of $81,621, but that figure is down 7% from the year before, meaning that banks are working hard to limit their losses on the sales of these distressed properties.

There aren't many foreclosures still available in Phoenix – or any type of home for that matter – and the limited inventory has driven home prices sky high in the metro area in recent months. Normally when that happens, investors stop buying properties, and begin to think about selling the ones they've already purchased. But in Phoenix, with so many short sales still available, don't expect the investors to put away their wallets any time soon.

Like “traditional” buyers, these investment firms are keeping their eyes on the market, and they have noticed the recent trend of banks opting for short sales. Since 43% of all Phoenix-area home sales in 2012 were distressed properties, you can expect investors to be the primary buyers here for as long as they are available.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Should You Get Homebuyer Counseling?

daniel@realtypin.com Daniel Torelli — Thu, 14 Mar 2013 18:25:09 GMT

If you are considering purchasing your first home (or even if it’s just been awhile since you last bought a home!), homebuyer counseling could bring big benefits to you and your family. That’s because it’s designed to walk buyers through the entire scope of purchasing a new home and discuss personal financial issues to ensure that buyers are both prepared and eligible for the purchase.

Although different counseling services have different programs, a typical homebuyer counselor will provide education and coaching, review your credit report and discuss ways to improve it, and talk about various financing options. The counselor will also help you to establish a home-buying strategy – all while helping you remain realistic about your budget.

These counselors can also help you build a budget in the first place – by discussing the average cost of living in your area and bringing up other potential things you might not have thought of on your own. After all, many people forget about things that aren’t a consideration for renters, like the cost of home repairs or the cost of buying new appliances. Bottom line – many people want to move to a new city, but they don’t necessarily know about cost of living considerations and how they can affect their overall budget.

There are very few people who wouldn’t benefit from this service. In fact, a recent study found that those who get homebuyer counseling before purchasing their home were less likely to fall seriously delinquent on their mortgage. Lenders consider a loan that is 90 days past due seriously delinquent, and most experts consider these delinquencies to be the main cause of the housing market crash. Many experts believe that an increase in homebuyer counseling will prevent the housing market from crashing again. After all, the counseling will take an honest and in-depth look at your personal finances, so it can tell you if you can really afford to buy a home – and it can even predict whether you’ll be able to keep up with your mortgage payments.

But is this service really right for you?

Many repeat buyers who never had a problem with a previous mortgage assume that homebuyer counseling services are not relevant to them. However, things are different these days. Whether you’re a first time buyer or someone who has bought a few homes over the years, there is always a chance that you could lose your job, get divorced, get sick, or fall victim to some other unforeseen problem and fall behind on your payments. At least with some homebuyer counseling under your belt, you’ll have a better idea of what to do if the worst happens.

Although it’s unlikely that there will ever be a mandate for mandatory homebuyer counseling, all buyers should at least consider participating in this service before they dive in and buy their next home. The mortgage industry (and the government!) could save billions of dollars if people didn’t default on their home loans. On the consumer side, you could save yourself a lot of stress and heartache by being fully-prepared for all of the responsibilities that come when you purchase a new home and take on a new mortgage.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Renovations You Should Spend Your Tax Refund On

daniel@realtypin.com Daniel Torelli — Thu, 14 Mar 2013 18:23:33 GMT

The Top 5 Home Renovations You Should Spend Your Tax Refund On - It’s that time of year again, and if you haven’t filed your tax return this year, April 15th is just around the corner! If you have already received your tax refund (or are expecting it any day now), a home renovation is a great way to spend the money. Many people don’t think about using their refund this way, but the right projects can improve your quality of life, along with adding some additional value should you decide to eventually sell your home.
Did you know that the average American expects to receive almost $3,000 from the government this year? If you’ve got a check headed your way, use it on one of these 5 projects:

1. Renovate your kitchen
Your kitchen is one of the busiest rooms in the house, and it’s probably a little worn down from all of that traffic! In fact, the kitchen is usually the first room that needs some updating. Kitchen renovation projects are a great way to not only update the look and feel of your home, but also to add a lot of value if you ever sell. You don’t have to do a floor-to-ceiling renovation, though. Simply updating your appliances, changing your cabinet tops, or even just updating your hardware all have potentially have high returns on the investment.

2. Update your bathroom
Giving your bathroom a fresh look bathroom typically will give you more than a 75% return on your investment. And, luckily, it doesn’t have to cost a fortune. For under $3,000, you can add comfort and luxury to your current bathroom. For example, you can repaint, add new vanity tops, add crown molding, replace the faucets and the hardware, freshen up your caulk and grout, and have your bathtub and toilet professional relined.

3. Create a master suite
You and your significant other can enjoy your tax refund well into the future by turning your master bedroom into a master suite. Although every person will want to add upgrades that fit their needs and personality, some great ideas to get your started include adding heated floors, installing separate his and her sinks in the bathroom, creating a built-in entertainment center in the bedroom, and installing a wine refrigerator in the bedroom. Having a master suite is becoming increasingly popular and can add a lot of value to your home. It will also give you and your sweetie a private getaway right in your own home!

4. Tackle your yard
Since the weather is warming up, now is a great time to get outside and use your refund to do some renovations outside! Your first project should be on the sidewalk. Take the time to fix anything that may be broken or a hazard, and then spend time power washing the sidewalk to make it clean and fresh just in time for spring. Then, head to your local nursery and plant some flowers or bushes in the front lawn. You’ll add color and vibrancy to your home and dress up the façade. An added bonus is you get some sunshine and exercise in the process!

5. Refurnish your living room
Although you will probably take your furniture with you when you go, you should also consider spending your tax refund on a newly-furnished living room. Unless your furniture is already new, head out to your local furniture store and update the living room to make it both chic and comfortable. If you ever decide to sell, the new furniture will also look nice when potential buyers come in for tours.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Selling an Older Home

daniel@realtypin.com Daniel Torelli — Thu, 14 Mar 2013 18:12:26 GMT

The Top 5 Ways to Sell an Older Home - Older homes have great attributes that many newer homes lack. After all, most older homes have personality and character that many buyers are looking for when they purchase their next home. There is, however, a certain stigma associated with older homes that can sometimes make buyers nervous. Structural concerns, as well as concerns about major repairs (such as the roof or heating and cooling system), may deter a buyer from purchasing your older home.
That’s why you need these 5 tips! Take advantage of them before you list your older home to increase your chance of a quick sale, and to get the right price for your home:

1. Get an inspection
It’s typically the buyers who get an inspection on your home, but if your house is in good condition and structurally sound, taking the initiative could definitely increase your chances of attracting potential buyers. Although the cost of an inspection is small compared to what a buyer is paying for a home, a buyer might not want to risk the cost in case there is a large repair that will make the house not worth it. By investing in an inspection right off the bat, you can assure them that the house is in great condition.

2. Make major repairs before listing
Although some people like the challenge of renovating an older home, most people want a home that is move-in ready. Unfortunately, the return on investment of large repairs isn’t huge, it’s still worth the cost, because it could mean the difference of selling your home quickly versus having it sit on the market for too long.

3. Highlight the time period
The charm of an older home is usually thanks to the attributes based on the period during which it was built. Although you do want to make relevant updates to your older home, stage the home so that it has the right feel for the year it was built. Staging your home to match the period doesn’t mean that you have to have a house that looks “old”, but by using modern pieces with an older feel, you can highlight the time period of the house and add to its charm.

4. Price it right
It’s hard to divorce yourself from the emotional connection you feel for your home, and those emotions often lead to a higher asking price than your home is really worth! So, enlist the help of real estate agent to ensure that your house is properly priced. If you price your home too high, it will scare potential buyers off – but if the house isn’t priced high enough, people will assume there is something wrong with it. (This is actually a tip that works for both older and newer homes!)

5. Purchase a home warranty
The final way to encourage a quick sell for you home – as well as to put the mind of potential buyers at ease—is to purchase a home warranty. A home warranty is a special type of insurance policy that covers major repairs within the first year of purchase for the buyer. Since one of the major concerns for a buyer of an old house is having to make large repairs, purchasing a home warranty is a sign of good will and offers peace of mind for the buyer to purchase your older home.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

When Will We See Pre-Bubble Home Prices?

daniel@realtypin.com Daniel Torelli — Wed, 13 Mar 2013 15:05:07 GMT

The housing market is clearly on the road to recovery. We already suspected that, but our suspicions were confirmed last week when the latest Case-Shiller indexes showed that home prices made the fastest year-over-year growth since the middle of 2006. Home prices are on the rise mainly because the inventory of homes for sale continues to decrease. And, stock prices of homebuilders are rapidly increasing. KB Home, DR Horton, Toll Brothers, and the PulteGroup have all recently seen their shares approach 52-week highs.

With all of this good news, consumer confidence is getting much higher, but are the expectations too lofty?

It seems everyone is asking if how long it will take for home prices to get back to where they were in 2006 and 2007, before the housing bubble burst. But consumers may not want to hear one expert's answer to that question. “The hazard now is that people think normal is 2006, but we aren't going back there for a long time, maybe never,” said Case-Shiller index chairman David Blitzer. Blitzer acknowledges that the housing market has made significant gains in recent months, but he says the overall recovery will be a slow and gradual one.

Why?

He points out the fact that there is a still a big foreclosure backlog in many states, plus there is an elevated number of homeowners who are underwater with their mortgages. According to Blitzer, these two factors have slowed the housing market's recovery efforts and could continue to plague it in the years to come.

The recent lack of inventory has driven home prices much higher over the past few months, but prices are still well below the peak numbers reached in 2006 and 2007. Blitzer says that those years should not be used as measuring sticks for success because they were at the height of the housing bubble, and aren't considered “normal” by industry insiders. In other words, consumer expectations are too high! Home prices are now back to August 2003 levels, but the shadow inventory could drag them back down.

What does that mean?

“Shadow inventory” is a real estate term for foreclosures that have not been sold yet, or homes that owners are delaying putting on the market until home prices increase. Basically, they are homes that aren't available yet, but are expected to be listed at an undetermined point in the future. Before the housing crisis, the average shadow inventory was about 500,000. Last summer, it stood at 3.1 million units.

Blitzer says the shadow inventory sits at about 2.6 million properties right now. Until they are cleared out, Blitzer says banks will limit how much money they lend out for home loans. Once the shadow inventory is reduced, banks’ balance sheets will back in a range where they feel comfortable lending out money again. If it seems that Blitzer only has bad news about the housing market, his predictions do include some positive notes as well. He says he expects the Federal Reserve to keep buying mortgage-backed bonds in an effort to keep interest rates low for the foreseeable future.

As the economy recovers, and as more of the shadow inventory gets cleared up, there will be more homes available and more credit available, thanks to the low interest rates. That means more Americans will be able to afford homes, and that's always a step in right direction when it comes to housing recovery!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Buying A Home | How Do You Make an Offer a Seller Can’t Refuse?

daniel@realtypin.com Daniel Torelli — Wed, 13 Mar 2013 15:00:20 GMT

In many parts of the country, it’s a seller’s market. Thanks to low inventory and lots of buyers, many sellers are receiving multiple offers – and even all-out bidding wars – on their homes! Although making the highest offer seems like the best (and only!) way to buy your next home, there are other ways to make an offer that a seller can’t refuse. Sometimes, you don’t even have to offer the most money!

How is that possible?

By making sure your offer is reasonable, keeping the offer simple and without contingencies, and adding personal touches, you can make an offer the seller can’t refuse.

The first step is to be reasonable. Although some negotiation is to be expected, your starting bid shouldn’t be so low that the sellers don’t take you seriously. If you make an offer that’s so low it’s insulting, most sellers will refuse to have anything else to do with you. They won’t even considering negotiating! If you really want to purchase the home, your offer should be close to the seller’s asking price.

Part of being reasonable involves letting the seller know that you’re a legitimate buyer. That means including a pre-qualification letter from your lender. If you are a strong candidate for the loan, ask the lender to add your level of qualification as well. After all, the last thing a seller wants is for the sale to fall through because your funding fell through – so do everything you can to prove to the seller you’re your financing is in check. That will help persuade the seller to take your offer seriously.

As far as keeping your terms simple goes, you need to make sure that your offer doesn’t come with any contingencies. Although contingencies can be hard to avoid (especially if you are relying on the sale of your current home), a seller may turn down your offer because they are afraid that it will fall through based on those contingencies. If you can help it, keep your offer as simple as possible with limited terms and contingencies.

Another way to keep the terms simple? Don’t ask for a lot. Most sellers have already made all of the upgrades and repairs that they want to make. Don’t scare them away by making an offer based on a lot of upgrade requests or stipulations.

If you really want to make an offer the seller can’t refuse, get a little insight into their needs and motivations. Your realtor should be able to find out this information for you and to help you frame an offer based on the seller’s motivations. One such need or want is the closing date. Sometimes a seller will take a slightly lower offer just so they can have a later closing date.

The final way to make an offer the seller can’t refuse is to personalize the offer with a little added touch. If you truly love a home, let the seller know how much the house means to you through a note or an email. Even when people are selling their home, there is usually a lot of sentimental value attached to it, so just a small note assuring the seller how much the home means to you and how well you will take care of it could make the difference between an accepted or rejected offer.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Massachusetts Real Estate | Massachusetts Home Sellers Almost Impossible to Come By

daniel@realtypin.com Daniel Torelli — Wed, 13 Mar 2013 14:57:14 GMT

With the housing market beginning to make a recovery (albeit slowly and long overdue), Massachusetts is now facing a new issue – no one is selling! When the housing market crashed, there were large numbers of sellers and no buyers. But now, Massachusetts is facing the opposite problem, with plenty of buyers and not enough homes on the market.

The amount of houses on the market has hit an eight year low in Massachusetts, which is creating issues for people either wanting to buy their first home, move to the state, or simply upgrade to a better home. Realtors are scrambling as the spring season approaches, because it is typically the busiest time of year for buying. However, at this rate, there isn’t nearly enough inventory to satisfy the needs of all the buyers.

What’s the problem?

There are many factors that have contributed to the low inventory here. Some homeowners can’t afford to sell their homes because they are underwater on their mortgages. Others simply don’t think the time is right to sell. Others are facing the same problem that buyers are – if they sell, there is nowhere else to move.

Experts believe there must be an influx of out of state buyers, as well as first time buyers, contributing to the problem. They say that if it were just Massachusetts locals buying and selling, then there shouldn’t be a problem. But when you factor all of these new buyers into the mix, there simply aren’t enough houses on the market to satisfy the high demand.

Another big problem here is underwater mortgages. Although the overall average home value in the U.S. seems to be steadily improving, it isn’t dramatic enough to allow many of these underwater homeowners to sell their homes.

Even the people who are not suffering from underwater mortgages face what many are calling a “recession hangover”. Basically, many people are afraid to upgrade to a bigger home, because the recession was so devastating to the economy. And, although home values are indeed improving, it’s not to a point where it’s high enough to justify a move. The value of homes is still far less than when many people purchased their home.

For some, they can’t move, because there is nowhere to go. For the people who are looking to upgrade to a larger or better home, there simply isn’t anything available. That means they can’t list their house, because in the current market, they could sell their home and then not have anywhere to move to!

The lack of inventory is creating further problems for the area because the small number of houses on the market is creating bidding wars and price inflation. With such high demand and such little supply, prices are rising as buyers are struggling to find homes. Unfortunately, these increases are not quite high enough yet to encourage more buyers to enter the market.

The low supply in Massachusetts is also causing a huge marketing campaign among realtors in the area as the approach the spring season. Realtors are concerned that without the supply, they will not be able to do well in their prime season. As a result, marketing efforts are soaring all over the state, as realtors attempt to encourage more sellers to dive into the market.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Real Estate Recovery in 2013 | More Americans Believing in the Housing Market

daniel@realtypin.com Daniel Torelli — Tue, 12 Mar 2013 18:01:00 GMT

The nation’s housing market is slowly taking steps in the right direction – and Americans are taking notice! According to Fannie Mae’s monthly survey, Americans are gaining more confidence in the housing market. Specifically, February’s survey showed that Americans had more confidence that the housing market is finally on the road to recovery.

Just how confident are Americans about the housing market these days?

According to the survey, 48% of Americans believe that home prices will rise in the next year, as opposed to only 10% that believe that home prices will fall. While that isn’t a majority, 48% is the highest that number has been since the Fannie Mae survey began asking the question back in 2010. Furthermore, 38% of survey respondents stated that they believe that the nation’s economy is headed in the right direction after several years of despondency. While that’s a significant chunk of people, this number is actually lower than it was in January’s survey – when 40% of people believed that their financial situation would get better in the next year.

Even though Americans may not be so sure as to what the overall economy will bring, they seem to believe that the housing market is on the upswing. After all, the survey also showed that 25% of Americans believe that right now is a good time to sell their home. That’s the highest that percentage has ever been, since the survey was created almost three years ago.

When the survey’s results were released, Doug Duncan, the Chief Economist of Fannie Mae, praised the housing market’s gains, stating, “Despite fiscal headwinds and political uncertainty, consumer sentiment toward housing is robust and continues to gather strength…We expect home prices to firm further amid a durable housing recovery, gradually reducing the population of underwater borrowers and helping to boost the share of consumers who say that now is a good time to sell.”

Reducing the number of underwater mortgages is crucial. After all, it’s a major reason why people aren’t selling their homes. Because of how low home values dropped when the economy crashed, many people owe more on their mortgage than the current worth of their home. That has led to an incredibly low inventory around the country. In some places, the inventory is so low that people are having trouble finding a new home to purchase, even when they are in a position sell – so they’re simply staying put.

But if Americans truly believe that the housing market is improving, it could have a snowball effect. When home values rise, more people with underwater mortgages could soon be a position to sell, creating more inventory and sparking more buyers and sellers to enter the market. That could eventually spark more positive growth in the housing market and encourage those who have been nervous about listing their home to regain their confidence.

Although the survey is less than three years old, the fact that confidence that is at an all-time high gives some hope that the housing market will start to recover even faster. Hopefully, even more Americans will soon have their confidence restored in both America’s housing market and the overall economy.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Selling | Will Home Sellers Come Out for Spring?

daniel@realtypin.com Daniel Torelli — Tue, 12 Mar 2013 17:28:57 GMT

When the spring months roll around, the temperature isn't the only thing that increases. Spring is also usually the busiest time for home sales, but that could change this year if the country’s inventory remains low. Just how low is it?

According to the National Association of Realtors, the supply of existing homes for sale has fallen for 7 straight months, and almost hit an eight-year low in January. The lack of homes has led to competing offers and bidding wars in many areas, and much of the country is now classified as a seller's market. Experts say the higher prices should encourage more homeowners to list their homes, but warn that it could take years before inventory levels are healthy and markets are balanced again.

So why is there such a shortage of homes for sale, and how will it affect spring home buyers?
First, most of the distressed properties that flooded the market a few years ago have already been purchased. “Traditional” buyers looking for a bargain and investors hoping to make a long-term profit swooped in and purchased most of the foreclosures and short sales that littered the housing market in recent years.
Secondly, lenders still have very strict underwriting guidelines. Interest rates remain near all-time lows, prompting many would-be buyers to apply for a mortgage. The problem is that many of these same people don't have the credit report or down payment necessary, and thus, are being denied for a loan.
Then, you also have to take into account the millions of homeowners who have little or no equity in their homes and simply can't afford to sell. These homeowners purchased their homes at the peak of the housing bubble, and have watched their property's value drop significantly over time after the bubble burst. The end result? Underwater borrowers who owe more on their home than it's worth. These elements have created somewhat of a perfect storm, and prospective buyers are the ones paying the price – literally.

In January, the number of homes listed for sale was down almost 17% from the same month the previous year in 146 major markets. Even homeowners who can afford to sell are apprehensive to list their properties because home prices have just recently started to rise. Many have wanted to sell for some time now, but had to hold on while prices dropped during the recession. Now that prices are rising, these homeowners want to see how high they'll go before listing their homes. All of this has led to an extreme shortage of inventory. The nation now has a 4.2-month supply of existing homes for sale. That means at the current sales rate, all of the homes on the market today would sell in less than 5 months. Realtors define a healthy market as a 6-to-7 month supply, but experts don't expect that to happen until prices rise another 20%.

Home listings increased nationwide in February, but not enough to meet demand. Buyers are literally waiting for homes to be listed, and are sometimes making an offer the same day a home goes on the market. Realtors say it's not uncommon for some sellers to receive more than 5 offers on their home from competing buyers less than a week after they've listed the property. In other words, if you want to buy a home this spring, you better be prepared to face stiff competition, and you need to have the money to outbid the other prospective buyers. Otherwise, you could wind up waiting for quite awhile to get your hands on one!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Challenges for Housing Recovery

daniel@realtypin.com Daniel Torelli — Tue, 12 Mar 2013 17:19:27 GMT

The Top 4 Challenges for Housing Recovery - When the housing market was booming a few years ago, there were several factors that contributed to its rise. Likewise, now that the market is trying to recover from the worst recession since the Great Depression, there are many hurdles that stand in the way. No one can deny that the housing market is steadily improving, but still faces an uphill battle. So what are the major challenges for housing recovery? Economists say these are the top 4 hurdles:

1. Builders can't get loans fast enough
In almost every major metropolitan area in the country, there are more buyers wanting to purchase a home than there are existing homes for sale. That lack of inventory and increased demand has made home prices go up in recent months. As a result, builders have seen an opportunity to make a lot of money. They can take advantage of the increased demand for affordable housing by building new homes. The problem? Many builders are having trouble getting access to construction loans, and until lenders give them the money they need, the lots they were hoping to develop sit empty. This is not only frustrating for the builders themselves, but for prospective buyers too.

2. A flawed appraisal process
Nothing can ruin a home sale quicker than a low appraisal. If an appraiser estimates the home is worth less than the agreed-upon selling price, a buyer or seller will often try to renegotiate the deal, or call it off altogether. After all, a low appraisal will lead to a lender reducing the amount of money it is willing to give out to a borrower. Appraisal systems vary widely from state to state, and many lenders do business in multiple states. Since there currently isn't a universal set of appraisal reforms or practices, the situation is even more complicated. The National Association of Home Builders has proposed a universal set of rules, but until policymakers agree to those changes, the appraisal system will have some flaws.

3. A low supply of building materials
When the recession hit a few years back, companies across the country had to cut back on production and reduce their workforces. Building material manufactures were no exception, and many drywall producers and lumber firms closed their plants altogether. Now, the supply chain is starting to shrink, yet producers are reluctant to expand their facilities and hire more employees while credit remains tight. The lack of supplies has led to skyrocketing prices, and builders pass their costs along to the home buyers, so as long as there's a lack of building materials, new home prices will remain higher than they should be.

4. Investors buying all the homes
Home sales figures are up, but a large chunk of the purchases are being made by investors, and not “traditional” buyers. Investors have one thing that the average American doesn't – an ample supply of cash, and they use it to their advantage. Investment firms are making cash-only purchases that don't require a lender, so “traditional” buyers are seeing the home they'd like to buy sell before they can even complete the mortgage application process. While it's true that home sales are up, and the lack of inventory has driven home prices higher in recent months, the fact of the matter is that average Americans aren't the ones buying the homes. Many are having to rent instead of buy, and the inflated rental costs make it hard for them to save for a down payment on a future home purchase. So, even when investors re-list their recently purchased properties in the future, it's doubtful many of these would-be buyers will be able to afford a home.

What does all this mean? The housing market is improving, but it is a long way away from a full recovery.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Real Estate Investing | Should We Be Worried About All of These Housing Investors?

daniel@realtypin.com Daniel Torelli — Mon, 11 Mar 2013 15:36:13 GMT

Home prices are on the rise, and the number of properties for sale continues to drop across the country – so buyers are moving as fast as they can to scoop up the limited inventory of homes, even if it means getting into a bidding war with other buyers.

That’s a good sign for the housing market, right?
Not necessarily, say some experts. While existing home sales are up, some experts are concerned over who is actually buying the properties! In many cities, you won’t find bargain-hunters or first-time homebuyers signing on the dotted line and getting the keys to new homes. Instead, the buyers are investment trusts, private equity firms, and other investors. In fact, armed with cash in hand, these investors are scooping up thousands of single-family homes around the country, renovating them, and renting them out. Then, when prices rise in the future, they'll sell them.
Because these investors can afford to make cash-only purchases, they don’t need a lender – meaning that they can skip the entire mortgage process. That speeds up the home buying process, and in the end, these investors are able to purchase the home before a “traditional” buyer even has the chance to apply for a mortgage! According to the National Association of Realtors, existing home sales across the nation rose 9.1% in January, compared to January 2012. However, anywhere from 10-50% of those homes (depending on which major metropolitan area you are looking at) were purchased by investors.

How do we know that?
Real estate research firm DataQuick compiled a list of 28 metropolitan areas around the country, and then counted the number of absentee purchases over the past 10 years in each city. An absentee purchase is where the property tax bill for the home is sent to a different address – exactly what would happen if an investor owned the home.

The result? In 23 of the 28 markets they analyzed, current investor activity is higher than the 10-year average.
In Los Angeles, 25% of the homes sold in 2012 were purchased by absentee buyers. In Miami, 42% of home purchases were absentee transactions. In Las Vegas, 51% of all purchases were made by out-of-town buyers. Absentee purchases don't necessarily prove that investors are buying the homes, especially in cities that are popular vacation-home markets. But even in cities you ordinarily see almost no second-home purchasers, there's a significant increase in absentee transactions. Cincinnati is a perfect example. Over the past 10 years, absentee buyers accounted for an average of 22% of home purchases. But in 2012, 35% of all homes were purchased by an absentee buyer. That's a significant increase!

So how does this affect the health of the housing market?
With investors buying thousands of homes, (in many cases, just days after they were listed on the market), the trend is driving inventory down even further. The limited supply of homes for sale is pushing prices up. Economists say that's creating false consumer confidence in the market's recovery. If investors stopped buying homes – or started selling their recent purchases (like the “flipping” trend of the mid-2000’s) – there would be far more homes on the market, and prices would stabilize. Plus, the same people who are trying to buy a home now – but are losing out to out-of-town investors – are being forced to rent. So, instead of building equity in their own home, they are struggling to pay sky-high rents, which makes it hard to save for future home ownership.

What does all of this mean?
If the investor trend doesn’t slow down, we could see a gloomy picture in a couple of years – with a glut of homes for sale because there aren’t enough financially-stable or qualified buyers to purchase them.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Texas Real Estate | Small Texas Towns Quietly Gaining Housing Steam

daniel@realtypin.com Daniel Torelli — Mon, 11 Mar 2013 15:30:50 GMT

When your unofficial state motto is “Everything is Bigger in Texas,” anything that is small seems to be overlooked or forgotten. But in the nation's second largest state, small towns can boast that they rival their bigger counterparts in two ways – high school football and the housing market.

The major metropolitan areas, especially Houston, have gotten a lot of attention for their housing gains lately, but many of Texas' smaller towns are also making huge housing strides – even if most people haven't noticed yet!

The housing markets in smaller cities in Northeast Texas, especially Longview, Marshall, Nacogdoches, Palestine, Paris, Texarkana, and Tyler, have been trending upward since the second half of 2012, according to researchers at the Texas A&M Real Estate Center (TAMREC). Several factors can be credited for the growth, but as is the case with real estate everywhere, location seems to be the most important one.

Here’s what makes the location for these cities so desirable:

- The urban sprawl from Dallas continues in a Northeast pattern
- The region is home to several lakes, where wealthy Texans are purchasing lakefront property for their second/vacation homes
- Older buyers who are nearing retirement are choosing to settle down in these cities and towns in the Upper East Side of Texa.

And why wouldn't they?

Home prices in these smaller towns are increasing, but they are going up at a slower rate than other parts of the country. According to economists at TAMREC, prices are currently up 12% from 2011 and 6% over 2012. That's bad news for homeowners looking to make a significant profit by selling their home, but it makes Northeast Texas an attractive option for buyers. Plus, the cost of living in this region of the state is also cheaper than some other areas around the Lonestar State.

Another factor working in this area’s favor? There's plenty of inventory available, especially in the high-end and mid-level price ranges.

And, unlike many other areas around the country, Northeast Texas did not feel much of the sting from the housing market's collapse, so there are fewer distressed properties for sale. Economists say that you can thank all of the local and regional banks for the lack of foreclosures in the area. For the most part, these smaller lenders did not get involved in the sub-prime lending procedures that larger financial institutions did during the housing bubble in the mid-2000s. On one hand, that's a good thing for the local housing market. Fewer distressed properties means home prices in the region did not significantly drop, and therefore, don't have as far to rise either.

But for lower-income buyers hoping to purchase a cheap home, Northeast Texas may not be the best place to look. For that reason, many of the young people who grew up in these towns are moving to bigger cities for better paying jobs.

As a result, most of the buyers in this region of Texas are older, financially-stable adults who are looking for their retirement or second/vacation home. So, unlike metropolitan areas, where the jobs entice people to move to the area, in Northeast Texas, it's the exact opposite. Here, the location is the biggest selling factor, and the people bring their jobs with them.

Apparently, it’s a big selling factor, too. Experts at TAMREC expect home sales figures in the region to grow even further in the months to come, so maybe sometimes, bigger isn't always better!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are JPMorgan’s Layoffs Actually Good for the Housing Market?

daniel@realtypin.com Daniel Torelli — Mon, 11 Mar 2013 15:25:53 GMT

JPMorgan Chase – the nation's biggest bank – announced last week that it will be laying off 13,000 employees in its mortgage division. Normally when we talk about layoffs and unemployment, it's bad news for the real estate industry. After all, when people don't have a job or a steady paycheck, they are unable to purchase a home. But in this particular case, economists say the layoffs are actually a very good sign for the housing market!

While the job cuts are obviously devastating to the JPMorgan Chase employees themselves, for the housing market as a whole, it shows that the worst may be behind us. That’s because most of the employees receiving pink slips were hired to handle mortgage defaults. But since the number of homeowners struggling to make their mortgage payments continues to drop, those employees simply aren’t needed anymore. In fact, according to the Mortgage Bankers Association, the percentage of seriously delinquent residential mortgages fell to 7% in the final three months of 2012. That's the lowest the percentage has been since 2008!

Since most delinquent homeowners are now catching up on their payments, JPMorgan no longer needs such a large workforce to handle them all. While this shows that the economy is improving, it also proves that there is still work to be done. Mortgage experts say the layoffs indicate that demand for new home loans is not returning at a fast enough pace to keep the employees on staff. In other words, foreclosures are down, so the 13,000 employees aren't needed in the mortgage delinquency division – and since the number of new home loan applications has also decreased, the company had to lay off the workers instead of transferring them to another department.

During an annual presentation to investors at company headquarters last week, JPMorgan's mortgage director Kevin Watters said they anticipate revenue from issuing mortgages will drop from $3.6 billion in 2012 to $1.5 billion this year.

So why are JPMorgan's profits down if home sales across the nation are up?

The simple answer – competition. The U.S. Commerce Department announced last week that new home sales soared 16% in January, but at an annual rate of 437,000 units sold, the numbers are still well below the 700,000 that economists consider healthy. JPMorgan Chase currently has a 10% share of the mortgage business, but it is still well behind the market leader, Wells Fargo, which issues 30% of all home loans each year. Watters told investors they are trying to expand their piece of the pie, but there is simply not enough business to go around for all lenders to increase their profits, so that could be a tall task.

So, what will the future bring?

Economists expect home sales to continue to increase in the months to come, thanks in large part to a boost in consumer confidence regarding the economy. Job security, falling debt-to-income ratios, rising rent prices, and a lack of inventory of homes for sale are all reasons that experts say home sales and home prices should rise in 2013. If that translates to more mortgages for JPMorgan Chase, then they may have to readdress their staffing later this year, but for now, they no longer need those 13,000 employees.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Buying | The Top 5 Things Today’s Buyers Want

daniel@realtypin.com Daniel Torelli — Sun, 10 Mar 2013 16:50:57 GMT

If you have ever watched a show about selling or flipping homes, then you know that there are many improvements you can make that can add nearly-limitless value to your home. However, ALL upgrades aren’t good upgrades. Some improvements can add thousands of dollars to the value of your home when you go to sell, while, unfortunately, some additions can actually turn buyers off. Since the recession, people’s buying habits have really changed. Studies have shown that buyers are much more price-conscious. As a result, they don’t want to feel like sellers are nickeling and diming them to death in a sale – meaning they don’t want to pay extra for each add-on. Still, though, today’s buyers are looking for specific improvements to meet their individual needs. So, what exactly do they want? Check out our top 5 list:

1. Energy-star ratings
Going green has become extremely trendy. Part of it is definitely to help the environment, but a larger part of this trend is the extra savings it brings on utility bills. (Remember, today’s buyers are looking carefully at prices!) As a result, energy-efficient lighting and appliances top the list of what most buyers are looking for in their next home. If you can’t afford to replace your appliances with high-efficiency products, at the very least replace the light bulbs. Even though they’ll be going with you when you move, it will project the concept of high-efficiency throughout your home.

2. High-end amenities
Surprisingly, today’s buyers would rather see high-end amenities than extra space in their next home! The bathroom tops the list for these amenities, with buyers specifically wanting separate sinks and a separate bath and shower in their master bath.

3. Modern electronics
Many home buyers appreciate a wireless home so that they don’t have to be concerned with a bunch of unsightly cords. People are also looking for an already-installed security system to keep their family safe. If you are considering installing a security system, it does add value to the home, but be sure you don’t go overboard, as you won’t see a return if people find your security system excessive for the home.

4. Character
Before the recession hit, so-called “McMansions” were all the rage. People had money to spend (rather, it was easy to qualify for a mortgage!), so builders put McMansions up anywhere they could and sold them quickly. People didn’t care if their home looked exactly like the one next to it; they just wanted a big home. Today, though, buyers are seeing the value in classic homes that have character, and many who now have the money for a big, expensive home are, instead, opting for something smaller – just because it looks unique. They’d rather lose some space rather than have something that looks just like the one next door.

5. Location, location, location
It’s always been a catch phrase in real estate, but there’s a new twist on location these days. With gas prices increasing every day, people are not willing to have a long commute. Buyers also want to have easy access to good schools, shopping, parks, and running trails.

In the past, these amenities were less of a consideration, but they have become increasingly important to buyers. Unfortunately, you can’t change the location of your current home when you go to sell it, but you can make sure to highlight any feature nearby that makes your home special and adds value to its location.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Things Standing in a First Time Homebuyer’s Way

daniel@realtypin.com Daniel Torelli — Sat, 09 Mar 2013 17:44:39 GMT

The American dream has always included owning your own home. In fact, studies have always shown that there are very few people who don’t plan to eventually own their own homes! Since the recession and the housing market crash, though, it has become tougher for people to accomplish this long-sought after goal – especially younger people. Going through the process was hard enough already without the recession, and now there are even more obstacles standing in a first time homebuyer’s way, like:

1. The down payment
The required down payment for a home is dependent of a number of factors, but it is rare for a required down payment on a home to be less than 10% (some lenders will make it closer to 20%!). Even for buyers that are only purchasing a $100,000 home, $10,000 is a large sum of money for many buyers to save up – especially when they don’t have an existing home to sell and profit from. In the past, many buyers relied on a parent or relative to lend or provide them with the cash for their down payment, but because of the recession, many families are finding themselves not capable of loaning or gifting their children that kind of money. Without a large down payment, it’s almost impossible to get a loan at all, let alone a reasonable one, making the dream of owning a home very unlikely.

2. Unemployment
Many college graduates have found themselves without employment after they have graduated and have been forced to take positions that lack steady income. Without the longevity of a career, it’s very difficult to afford a home or even qualify for a loan – leading to a drop in the number of present first time homebuyers, compared to the past.

3. Credit scores
From a mixture of unemployment, coupled with the rising amount of credit card debt, credit scores among those most likely to purchase their first home are plummeting. Without strong credit, it’s difficult to qualify for a loan large enough for a new home, even if you have the financial backing to do so.

4. Credit requirements
Because of the housing market crash and the foreclosure rate, banks are exceedingly cautious about who they loan their money to. The credit requirements and the underwriting have become much stricter than they were in the past, and even people with great credit are finding themselves without a lender.

5. A lack of inventory
Right now, much of America is seeing a seller’s market, with many houses getting multiple bids, simply because there aren’t very many houses for sale. Until the market improves, there will be a lack of inventory, making it difficult for first time buyers to be the highest bidder. There has also been an increase in cash bidders (mostly investors looking to get homes at bargain-basement prices), and most sellers will sell to the cash bid, because they can be sure of the sale – as opposed to the first time buyer, who has the chance to lose their funding halfway through the process (or, at the very least, comes with all of the red tape associated with a traditional mortgage).

Although the problems standing in the way of a first time buyer may seem substantial, if you are looking to purchase your first home, don’t be discouraged. Although it has become more difficult in recent years, it’s not an impossible goal. You may have to spend some time improving your credit rating and saving for your down payment, but everyone is capable of owning their own home!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Reasons to Move to Florida

daniel@realtypin.com Daniel Torelli — Fri, 08 Mar 2013 14:36:18 GMT

The Top 3 Reasons to Move to Florida - Winter has taken its toll on so many people this year, and lots of them will still feel the effects of it long after the weather has warmed up. This time of year is notorious for people realizing just how much winter weight they have gained, how cooped up they have been, and how much they miss the sunshine. It happens every year, but most people don’t realize that there’s actually an easy solution – move to Florida!

Packing up your things and heading south may seem easier said than done, but if you’re looking for a fresh start, Florida is a great place to consider. And, once you decide to call the Sunshine State home, you’ll get to take advantage of these 3 perks:

1. Affordable housing
Many people are shocked when they hear the average home price, especially in northern parts of the state. Although Miami has a notoriously high cost of living, many other parts of Florida boast incredibly affordable homes that aren’t too far from the beach. The Gulf of Mexico has some of the prettiest beaches in the world, but it doesn’t have the high housing costs that some of the other well-known beaches in the United States do. In fact, thanks to Florida’s slow housing recovery, you can have a beachside home on Pensacola Beach for the same amount you would spend deep inland in the Midwest! In Orlando, the average home is selling in $100,000 range. In many homes on the east coast and in several other major cities around the U.S., it’s impossible to get a decent home for that price. Although selling prices are beginning to get a little higher in Florida, they are still significantly lower than in other parts of the country.

2. Great weather
Move here, and you will never have to worry about that Winter Gloom again! Those on the East Coast and in the Midwest who go months without seeing the sun will love the year-round sunshine. It’s hard to have a bad day when the sun is always shining, and although it does get humid in the summer, the gorgeous days more than make up for it. Plus you don’t quite notice the humidity as much when you’re spending those summer days on the beach! Florida is well-known for its retirement communities, and the reason that so many people want to retire there is because of the weather. But why wait to retire to get those benefits? You may find that the cost of living is more affordable than your current city, and when you live in Florida you are never more than a few hours from the beach.

3. No state income taxes
Yes, you read that right! Florida does not have any state income taxes. When you factor in the money you will save from your income taxes – plus the money you’ll save on a home right now – you’ll discover that moving south is more than attainable. In fact, the money that you save by not paying state income taxes every year could mean it makes more financial sense to move than it does to stay where you are!

Florida is by no means perfect, but there are so many attributes that make it hard to resist. If you are looking for greener pastures, Florida certainly comes with a lot of reasons that you should call it home.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

More Retirees Facing Housing Debt

daniel@realtypin.com Daniel Torelli — Thu, 07 Mar 2013 16:06:08 GMT

Even though the recession is getting smaller and smaller in the rear-view mirror, recent studies have shown that retirees are still having big financial problems. Specifically, more of them are being forced to take on mortgages much later in life than they had originally planned. Those mortgage payments, coupled with other types of consumer debt and medical bills, are forcing many retirees to make dramatic financial cutbacks and live a much more conservative lifestyle than they had planned for their golden years.

Why is this problem so widespread?
When the economy crashed, many retirees (and soon-to-be retirees) took a big hit to their retirement funds. Although the economy is slowly making some positive strides, elderly Americans don’t have time to wait. They need their full nest eggs now – and they don’t have them. Overall, retirees used to have the smallest amount of housing debt. Now, though, they’re becoming the demographic with the most housing debt. Thanks to home values that spent years plummeting, retirees who downsized couldn’t afford to pay cash for their new homes. As a result, they’ve had to apply for mortgages because they couldn’t afford new homes any other way.

But it’s not only people who lost a large chunk of their retirement when the stock market crashed that are having difficulties now. Another chunk of sufferers is the pre-retirees who underestimated the costs they would have to incur and didn’t save enough money to live the lifestyle they wanted during their retirement years. After all, it’s difficult to map out the rest of your life before you retire and truly save enough or understand the amount of money getting older costs!

Remember, as people age, they tend to take on new health issues, resulting in a higher cost of living that they didn’t necessarily plan for. When these bills begin to add up, suddenly many of their cash reserves disappear.
But it’s not just growing medical expenses that are causing issues. Many people also didn’t include inflation into their planning, and are surprised to find what they have saved isn’t going to cut it. The costs of other debt tend to be surprising for retirees as well. According to a study conducted by Stanford University, 50% of families over the age of 55 have a credit card. Unfortunately, many people don’t take into consideration paying off those credit cards – like how long it would take and how much the bills (and the interest!) would add to their monthly living expenses.

When people realize that they can’t live the exact lifestyle that had hoped for during their golden years, many of them decide to downsize. Some people mistakenly believe that moving into a different home will solve some of their financial worries. Unfortunately, though, they don’t always understand the total costs associated with moving. Smaller homes are not always more affordable, and when you add in moving and closing costs – plus interest rates on a new mortgage – downsizing isn’t always the best option (especially when you’re not going to get as much for your existing home as you would have gotten a few years ago).

So, what can you do to avoid a future like this?
Proper planning and seeking out the help of a professional financial advisor is the best bet for someone who is planning out their retirement. These professionals are trained to plan for the unexpected, and they can help you understand how much you truly need to save in order to live the lifestyle you want after you retire. While you won’t be able to plan for every unforeseen event, you’ll have a better strategy for building your nest egg!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Handle Multiple Offers For Your Home?

daniel@realtypin.com Daniel Torelli — Thu, 07 Mar 2013 16:00:28 GMT

This year has seen a dramatic increase in home sales, leading experts to believe that there is hope for America’s housing market on the horizon. Since the housing market was so dismal for so long, many sellers have been afraid to list their homes. Now, most areas are seeing a low inventory of homes for sale – meaning that buyers are fighting over what happens to be available. If you have a home up for sale right now, you may find yourself receiving multiple offers for it.

So, what’s the best way to them all?
This question seems like it has a simple answer – grab the highest offer and sign on the dotted line, right? Not necessarily! Unfortunately, too many sellers make that mistake and wind up wishing they had considered some other aspects first. After all, there are a number of factors to take into consideration when you’re selling your home – and while you always want to get the highest possible price, you also don’t want to blindly take the highest offer. Why not?

Too many times, people will say they are prequalified by a credible lender when that isn’t necessarily true. Many realtors will check before they even show the house, but you need to make sure your realtor has done this before you spend any time with a potential buyer. In fact, the best way to avoid this pitfall is to ask for a letter from the lender stating that the buyer is, in fact, prequalified for the amount they have offered for your home. But don’t stop there! After receiving the letter you also will want to ensure that the lender is credible, and actually exists! (You’d be surprised at how many buyers try and “fudge” this!) Then, do some more homework on the buyer himself. Although you won’t be able to see all of the financial information behind your potential buyer, you can find out how well-qualified the buyer is for your home. Many times, lenders will tell if you the buyer qualified with no problems or he just barely qualified for a loan. Since things can happen from the time the buyer first applied and the time he goes to purchase your home, your safest bet is a well-qualified buyer.

What about VA or FHA loans?
Although there is sometimes a stigma associated with these loans, you shouldn’t rule them out. While these loans will require you as the seller to ensure the home meets all safety requirements, every smart buyer will conduct their own inspection anyway.

Many people also assume that a cash buyer is the best buyer, but that’s also not always the case. It is typically unlikely that the cash buyer will be the highest bidder, because many assume they can get away with offering less because they have the cash in hand. Cash buyers also are usually investors who plan on flipping your home for a profit. So, if someone sees potential in flipping your home, you may want to take the time to make small upgrades to improve the value of your home yourself!

Although it may be hard not to jump at the highest offer right away, by following this advice, you can save yourself the trouble of having a buyer fall through at the last minute and being forced to start the process all over!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Homeowner Tax Deductions You Need to Know

daniel@realtypin.com Daniel Torelli — Wed, 06 Mar 2013 15:51:11 GMT

Homeowners – Do You Know How to Handle Your Taxes? - A house is more than simply a place to live. It can give you a sense of security, piece of mind, and even a sense of pride. Recent studies have shown that, despite the recession, owning a home is still viewed as an important step towards fulfilling the American Dream. Buying a home, however, comes a few extra responsibilities that renters don’t have to worry about. From home repairs and yard work, to insurance and property taxes, homeownership takes a level of commitment. This time of year, one of those commitments is doing your taxes! So, do you know what Uncle Sam expects from you? More importantly, do you understand all of the financial benefits that come with purchasing your own home?
One of the biggest benefits when you buy a home is being able to itemize your deductions. Yes, that means having to deal with more paperwork than if you were taking the standard deduction. However, it leads to much bigger savings in the end. These specific deductions can lead to big savings, especially over the long term:

1. Mortgage Interest
The Mortgage Interest Deduction (MID) is considered one of the best tax breaks for homeowners, because it allows you to deduct the interest paid toward your mortgage. This can substantially reduce the amount you owe to Uncle Sam, depending upon your tax bracket. And luckily, this deduction was kept in place during the fiscal cliff negotiations earlier this year!

2. Property Taxes
You can also typically deduct the state and local property taxes you pay throughout the year, as long as they’re based on the assessed value of your property.

3. Private Mortgage Insurance
The Private Mortgage Insurance (PMI) deduction can really help people who are required by their lender to pay private mortgage insurance on top of their mortgage payments every month. PMI is more of a benefit to the lender, because it’s used to protect them in case you default – so it’s nice to know that you can at least deduct the expenses come tax time! This deduction was recently restored as part of the American Taxpayer Relief Act of 2012, which President Obama signed at the beginning of the year.

4. Energy Star program
The Energy Star program tax break was also recently restored. It’s designed to make homes more energy efficient. Through the Energy Star program, you can receive credit for making particular “Energy Star” improvements, like buying a new water heater, windows, roof, central air conditioner, or insulation that meets certain standards. You can usually deduct 10% of the money you spend on your improvements, up to $500.

5. Loan discount points and origination fees
Many new homeowners get the added benefit of deducting the points paid on their new mortgage loans. According to the IRS, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. This has the potential of saving you money right in the beginning!

Buying a home should be an enjoyable process. While it is a huge investment and requires a serious commitment, if you keep excellent records during the buying process, you are likely to save some money. And, of course, be sure to check with your personal tax professional to see if there are other ways that your home can save you money during tax season.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Spring Renovation Ideas

daniel@realtypin.com Daniel Torelli — Wed, 06 Mar 2013 15:46:36 GMT

Get Outside and Embrace Spring with These Home Renovation Ideas - After being cooped up all winter – and with cabin fever reaching a fever pitch – people will use any excuse to be outside these days! Even though spring is best known for spring cleaning, there are plenty of home renovation opportunities that can provide you with the perfect excuse to be outdoors. So, enjoy the sunshine, and give the outside of your home a boost with some easy renovation projects that will brighten it up just in time for spring:

1. Give your porch some TLC
The façade of your home is the first thing that people notice when they’re walking by or pulling up. So, make sure that your front porch represents the quality of the rest of your home! Repainting your front porch can add life and value to your entire home. Many times, homeowners neglect their front porch because many times they are entering from the garage or the back and don’t notice that it is getting worn down – so try to view the front of your home like a guest would! Then, highlight that new paint job with energy efficient light bulbs that will save you money on your utilities and brighten up the appearance of your porch at night. There are many different lighting options available that can add a classy touch to your home. The lights will also add security and make guests feel safe when entering or leaving your home when it’s dark.

2. Add a pop of color
There is no rule that says your home has to have a neutral front door. A bright red or blue may be a little ambitious for your tastes, but a nice spring color such as a yellow or green will liven up your home – and it will make your home stand out from all of the other homes on your block. Painting your front door is a relatively easy project you can complete in one day, like the first warm sunny day of the season! Make sure you get some help when shopping for paint, so that you can find one that is durable enough for the outdoors. A specialist at any home improvement store will be able to tell you which paints are perfect for this project.

3. Clean up your front sidewalk
Your sidewalk is another part of your home that you may not notice is getting worn down if you don’t walk on it every day. Boost your curb appeal by fixing up any broken pieces of your sidewalk (which could also be a hazard to your guests and other passers-by, and should be fixed anyway!). After you have fixed your sidewalk, rent a pressure washer and clean up your sidewalk. You may not realize how much debris you will clean out by spending less than an hour pressure washing it!

4. Landscape
You don’t need to put in a lot of work to see great results, and as an added bonus, landscaping is a great workout! Head out to your local nursery, and find some great flowers or bushes to plant for the spring. They’ll give your home a nice pop of color that’s truly spring-like! If you aren’t feeling quite that ambitious, a nice hanging basket with some fresh flowers in it is always a nice touch, too.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Cincinnati Real Estate | Cincinnati’s Housing Market Heating Up

daniel@realtypin.com Daniel Torelli — Wed, 06 Mar 2013 15:13:46 GMT

Following the trend of slow and steady housing growth in America as a whole, Cincinnati is starting to see some positive signs of its own. Local experts are thrilled with what they’re seeing out of Cincinnati’s housing market, and they think that January’s numbers will extend well into spring!

Just how good were things in January? Pending sales increased 24.4% compared to January 2012. As if that wasn’t good enough, the number of pending sales here was the highest is has been since 2007!

Unfortunately though, pending sales don’t necessarily mean that the sale will be finalized. Pending sales typically close within a month, assuming that all of the needs of both the seller and the buyer have been met. Lender and inspection considerations typically are the biggest concern during a pending sale. It happens more than you would expect that when the sale is almost complete, the buyer loses financing or the inspection turns up things that deter the seller from wanting to commit to this new home.

Those concerns aside, though, these numbers are a big step in the right direction because higher numbers of pending sales lead to higher numbers of overall sales. And, with sales up locally, more sellers will, hopefully, be willing to enter the market. Right now, Cincinnati’s inventory is low – which is good for sellers, because that low inventory leads to higher offers from buyers (and even bidding wars in some cases!). However, the best way for this housing market to get hot is for more homeowners to realize that it’s a good time to enter the market.

Pending sales are not the only positive signs of a growing market here, though. The foreclosure rate, the new home sales numbers, and home prices are also on the upswing.

The foreclosure rate here is less than 3%, which is the lowest that number has been in over two years. In fact, the local foreclosure rate hit its peak just a few months ago, back in April 2012, when 3.23% of local mortgages were in the foreclosure process. Foreclosures have been a big concern here over the years, so this decrease shows not only a better housing market, but also an improvement in the local economy as well.

New home sales for the country as a whole are as high as they have been in quite some time, and there is an increase in new homes being built as well. In the Midwest (where Cincinnati is located), sales of new homes rose over 11%, so this metro is right in the thick of things!

Home prices are also rising, which shows that this metro is headed in the right direction. And, as those prices continue to go up, new sellers will be tempted to enter the market.

Although Cincinnati’s housing market was spared the devastation of places like Detroit and Las Vegas, the high percentage of unemployment throughout Southern Ohio led to an abysmal housing market that has seen limited growth and virtually no recovery in recent years. So, January’s positive growth is hopefully a sign of much better things to come!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Bernanke Gives Housing Market Cautious Thumbs-Up

daniel@realtypin.com Daniel Torelli — Tue, 05 Mar 2013 15:21:06 GMT

Good news is on the horizon for millions of Americans as recent economic evidence indicates the real estate industry is on the road to recovery. In fact, one of the biggest names in the land just offered his kudos for the market’s progress!

During his testimony before the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke reported last week the American housing market most likely hit rock bottom this past year and is expected to get stronger. At one point, the American real estate market had dropped 30% during the country’s financial crisis, Bernanke said.

Bernanke made his positive housing industry announcement as he faced questions from lawmakers during his semi-annual trip to Capitol Hill.

During his panel appearance, Bernanke said that the recent bond buying program known as Quantitative Easing seemed to have had a beneficial impact on the housing market, because it helps people buying new homes or refinancing existing mortgages. In January, the federal government decided to continue to buy $85 billion worth of Treasury bonds and mortgage backed securities per month until there was a significant improvement in the labor market. It has also held interest rates close to zero since December 2008 in an effort to boost the economy. This action, it is hoped, will continue to strengthen the American real-estate market as well as other industries.

At this point, the housing market may actually be one of the high spots in an otherwise-challenged economy. Over the past year, Bernanke said housing prices have inched their way up and he has seen significant improvement in the new home construction industry.

While the number of home foreclosures is still considered high, banks have seen a recent decline in the number of homes lost as well as the number of mortgage holders deemed underwater, meaning they owe more on their home loan than the property’s worth.

While he was hesitant to make any long-term predictions, the Federal Reserve Chairman said he views this recent news as a step toward positive housing growth and recovery. Record-low mortgage rates and increasing home prices are expected to help mend the industry.

David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices said home prices ended 2012 with solid gains. According to a recent S&P Dow Jones Indices press release, average home prices at the end of the fourth quarter of 2012 across the country returned to autumn 2003 levels. While this may not seem like growth to some, this is actually substantial improvement for at the end of the fourth quarter of 2012, the National Index was 7.3% above the fourth quarter of 2011.

Several U.S. cities in particular saw significant increases in housing prices. Atlanta and Detroit, for example, announced their largest year-over-year increases of 9.9% and 13.6% since the beginning of their indices in January 1991. Dallas, Denver, and Minneapolis posted their most substantial increases since 2001. The city of Phoenix continues to improve as it announced a 23% year-over-year return.

The marked improvement in the real estate market will help more than future homebuyers and sellers. A stronger housing industry has the potential of impacting the American job market. After all, as people buy and sell homes, the home construction and retail industries will continue to flourish which, hopefully, will have a domino effect for the rest of the economy.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How To Save Money on Your Home Renovations

daniel@realtypin.com Daniel Torelli — Tue, 05 Mar 2013 15:18:29 GMT

Are You Overspending on Your Home Renovations? - If you're like most other homeowners, anytime you spend money on your home, you worry if it will cost too much – and if the renovations and repairs are actually worth the investment! Knowing which renovations are needed, and how much you should spend on them, can be the difference between increasing and diminishing your home's resale value.

So, how do you know if you're overspending on your home renovations?

Experts say that's always a tricky question to answer, but they have some tips that might help in your decision-making process.

First, you have to decide if you're making the renovations in hopes of reselling the home, or if you'd like to make some changes that will help you better enjoy the home yourself. If the changes are for your likes, wants, needs, etc., you have a little bit more flexibility – but keep in mind, you never know what the future holds. Even if you’re not planning on selling the home now, you may have to do so down the road. Designers say that you can customize the home, but that you shouldn't make any changes that could hurt the resale value later.

If you're renovating because you intend to sell the home right away, there are a few rules of thumb that can help you make sure you aren't overspending:

First, never make renovations that cost more than 20% of the home's total value. Realtors say if you spend more than one-fifth of what the home is worth, it's unlikely that you'll ever see a full return on your investment.

Also, you don't want to make so many renovations that it becomes the most expensive home in your neighborhood. Homes on either end of the price spectrum (meaning the highest and lowest-priced properties within a community) typically have a lower resale value. Buyers’ agents know this, and often tell their clients to avoid purchasing these homes. In other words, it's much harder to sell a home that’s worth $400,000 in a community where the rest of the homes are worth $200,000-$250,000.

If you're not just making changes to the existing structure – but are actually adding onto the home – there is also a way that you can tell if you're spending too much on renovations. Builders say you need to calculate the cost per square footage. To do it, simply take the total cost for the project and divide it by the square footage that you are adding on during the expansion. Then, compare that number to the cost per square footage of homes for sale in your area. If your number is higher, you're paying too much!

Of course, all of these guidelines are simply suggestions, and there are always exceptions to any rule. The best advice we can give you is to always ask yourself if a renovation is going to increase the home's value in the long run.

For example, if every home in your neighborhood has a back deck, but yours does not, it's something you should consider. Walk-in closets and extra storage space are always at the top of buyers’ wish lists, so those additions never hurt either.

Other rules aside, the biggest piece of advice is to always make the necessary renovations before making cosmetic ones. So if your roof is in need of repairs, you need to take care of them before you change the color of paint in your kitchen.

By following these suggestions, guidelines, and tips, you should be able to remodel your home without having to worry if you're paying too much for it!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Can You Get a Mortgage After Your Identity Has Been Stolen?

daniel@realtypin.com Daniel Torelli — Tue, 05 Mar 2013 15:14:59 GMT

How Can You Get a Mortgage After Your Identity Has Been Stolen? - Financial security experts will tell you that you should look over your credit reports once a year, but the truth of the matter is that many Americans don't bother to check their credit until they are ready to make a big purchase, like a car or home. When they do, many of those same people are shocked to find out that they are the victims of identity theft.

What can you do once you've realized that your identity has been stolen, and how can you clean up your credit at “crunch time” – like when you're trying to buy a home?

Unfortunately, it's nearly impossible to fix a faulty credit report immediately, so if you find out at the last minute that you're an identity theft victim, your loan application is likely to get denied.

So how can you protect yourself before the unthinkable happens?

First, lenders say you need to be proactive instead of reactive. Start checking your credit reports long before you are ready to start searching for a home. That way, you can notice any discrepancies, including any fraudulent purchases or credit cards under your name that you weren't aware of. Every consumer is entitled a free credit report once a year from each of the three major credit bureaus. Lenders will look at your FICO credit score from each agency, so it's important that you check all three.

If you notice anything that shouldn't be on there, contact the appropriate credit agency. This will not only protect you from identity theft, but it can also help you remove anything from your past that shouldn't be on there. For example, if you paid off a credit card and closed the account – but it was never noted on your credit report – that can hurt your FICO credit score.

If there are any discrepancies, be prepared for it to take awhile for them to disappear from your credit report. You're going to need documentation of everything before any changes will take place. Using our credit card example again, you'll need the credit card company to send a letter on their letterhead to the appropriate credit bureau stating that your account has a zero balance and has been closed.

If you think that's a hassle, imagine the hoops you're going to have to jump through to remove fraudulent purchases from your credit report! It can take months, and sometimes years, to completely undo all the damages caused by identity theft. But just because it takes a long time doesn't mean you have to wait until everything is removed from your credit report to start applying for a home loan.

Once you've set the wheels in motion, take any and all documents with you to your lender. They are going to want proof that the fraudulent charges are in fact fraudulent. They’re also going to want to see that you're taking steps to remove them from your credit report.

Lenders are already stricter these days with underwriting guidelines thanks to the recession and housing market's collapse a few years ago, and they're going to ask even more cautious if you have a questionable credit history. Being the victim of identity theft can make things hard enough, but not knowing how to correct the problem is even worse.

But by using these tips, you'll be better prepared to fight the uphill battle. Eventually, you’ll be able to fix the credit that someone else destroyed, and in the end, you’ll still be able to purchase the home of your dreams.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Renovations That Save Money on Your Taxes

daniel@realtypin.com Daniel Torelli — Mon, 04 Mar 2013 15:19:53 GMT

The Top 4 Home Renovations to Save Money on Your Taxes - When most homeowners decide to renovate, it's because they want to increase the value of their home, but there's also another big perk to remodeling – tax deductions! After all, if you're going to spend money making upgrades to your home, you might as well save some cash at tax time, right?

There are several remodeling projects that are eligible for homeowner tax credits. Of course, the renovations must meet Energy Star efficiency guidelines, but that just means you save twice – on your taxes, and by lowering your utility bills. So which renovations qualify? And, if you have a limited budget, which projects should you focus on first? Here's our top 4 list:

1. Air systems
Certain energy-efficient heating, ventilating, and air-conditioning units qualify for tax credits. So, if you need an air-source heat pump, a new central air-conditioning unit, gas and oil hot water boilers, or a new natural gas or propane furnace, you can take the purchase as a tax deduction – as long as the model you purchase meets Energy Star guidelines. In fact, the price of the unit itself isn’t the only thing you can deduct. You can also deduct installation fees. And, since these units are most likely more energy-efficient than what you’ve currently got in your home, you'll also save on your utility bills.

2. New doors and windows
If you're looking to make your home more energy efficient, but don't have a lot of money to spend, consider replacing your doors and windows. It’s cheaper to do than some of the other renovations on the list, and can immediately reduce your utility bills – especially if the climate-controlled air inside your home is leaking out of them! To receive the tax breaks, the new windows and doors you purchase must meet certain insulation ratings, which will prove that they prevent heat from escaping from the home. Specifically, your windows must have a solar heat gain coefficient of 0.30 or less, and your doors must have a U-factor of 0.30 or less. Don't worry if those numbers don't make sense! Someone at your home improvement store can help you find the right models! As far as your taxes go, you're allowed to deduct 10% of the cost, up to $500, but windows are capped at $200.

3. New insulation
Just like your doors and windows, old insulation can allow heat to escape your home, meaning you might be paying more in utility bills than you should be. If you upgrade the insulation in your home, you can qualify for tax breaks for 30% of the costs, up to $1,500. One thing to remember though – you will only be allowed to deduct the cost of the materials, not the installation costs.

4. A new roof
A new roof would be higher on our list, but it's a big expense, and the government won’t let you deduct a large amount of the cost from your taxes. Both metal roofs with appropriate pigmented coatings and asphalt roofs with appropriate cooling granules that meet Energy Star requirements qualify. However, you’ll only be able to deduct 10% of the material costs up to $500, and like the insulation, you won’t be able to deduct any of the labor costs.

These are just some of the remodeling projects that are tax deductible. For the full list of the renovations that qualify for tax credits, visit EnergyStar.gov.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Mortgages | The Top 4 Things Sellers Need to Know About Today’s Mortgage Market

daniel@realtypin.com Daniel Torelli — Mon, 04 Mar 2013 15:15:49 GMT

Most people who are selling their homes think they don't need to know a lot about the mortgage industry. They assume that buyers are the only ones that need to worry about interest rates, down payments, closing costs, and everything else that goes into a home purchase.

But a wise seller will educate themselves on today’s mortgage market to make sure that they find the right buyer.

So, what do you need to know?

1. Every offer is important
In several cities around the county, it has become a seller's market – meaning that the average homeowner is getting multiple offers on their home.

So which one should you accept?
Common sense would say the bidder who makes the highest offer, but experts say that's not always the smartest decision. Just because someone outbids another prospective buyer doesn't mean they can actually pay the price they are offering. What if they are unable to qualify for a mortgage or decide to back out if the appraisal is significantly lower than the purchase price?

Now the deal has fallen through, and other interested buyers may have moved on to other homes. That's why lenders say it's a good idea to consider all offers, asking each prospective buyer if they've been pre-approved for a loan, or if they plan to make a cash-only purchase.

2. Cash offers aren't always beneficial to the seller
We've just discussed that the main reason why transactions fail to close is that the buyer can't get financing from a lender. But when a buyer makes a cash-only offer, a lender isn't involved. That means you can all but guarantee that you'll get your money in the end.

So, what's the downside?
Most of the buyers making cash offers today are investors who are looking to purchase a home for a low price, with plans to flip it and then re-sell it for a profit. That means they will probably offer you less than someone who goes the traditional route.

So, you have to ask yourself, “Would I rather get cash now but have to sell for less than I expected, or wait and get more money from a buyer after they get a mortgage approval?”

3. Not all pre-approvals are the same
While it's important to make sure that your prospective buyer can actually get a loan, you need to remember that not all pre-qualification letters are the same.

Some lenders ask a lot of questions and want to see a significant amount of paperwork before issuing a pre-qualification letter, but others don't even require proof of income. They simply run a credit report, ask the borrower their income level and how much they want to borrow.

So, before accepting an offer, have your real estate agent call the loan officer who wrote the pre-approval letter. While the lender is unlikely to get into specifics, they will be able to tell your agent if the buyer is well-qualified or if they barely qualified. This information will help you determine the buyer's financial capability and if they can afford to buy your home.

4. FHA and VA loans sometimes have strings attached
Many sellers avoid or ignore buyers who want to get a Federal Housing Administration (FHA) insured loan or a mortgage through the Department of Veterans Affairs (VA). After all, most of the time, these buyers wouldn't be able to get a loan any other way, so they apply through these government agencies. Plus, these loans carry a negative stigma since they require sellers to cover certain costs.

Real estate brokers say you shouldn't blackball someone just because they are applied for a FHA or VA mortgage, but you should know the facts regarding these types of loans.

For example, many FHA loans require sellers to replace and repair all property hazards regardless of the buyer's financing. Also, VA loans make homeowners cover certain closing costs that would normally be split between the seller and buyer.

By educating yourself about these topics and others pertaining to the mortgage industry, you'll be better prepared to sell your home to the right buyer at the right price.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Houston Real Estate | Houston’s Housing Market Hits Scorching Pace

daniel@realtypin.com Daniel Torelli — Mon, 04 Mar 2013 15:09:03 GMT

It's fitting that Houston is home to NASA's Mission Control Center and that the city's NBA basketball team is called the Rockets, because home sales in this Texas town continue to skyrocket – with some properties selling at absolutely astronomical prices!

The housing market in Houston has been on fire for several months, but it is gaining even more steam these days because of a lack of inventory. According to the Houston Association of Realtors, the inventory of homes for sale is at its lowest point since 1999, and is down 20% from January 2012. The lack of available properties comes at a time when buyers are eager to purchase homes both within the city itself and in its surrounding suburbs.

This intense desire has ignited bidding wars for some homes, with sellers getting multiple offers on the very same day they list their property for sale. In fact, one realtor recently told a local Houston newspaper that she's received as many as 12 offers on her home!

Despite the super-low supply of homes, there were 4,680 properties sold in Houston during the month of January. That's a 29% increase from the same month last year. While housing inventory continues to shrink (down to only a 3.6 months’ supply at the current sales rate), Houston’s home prices keep rising. In fact, the average sales price currently sits at $200,296. That's the highest average for the month of January on the books, according to the local realtors association!

High-end homes – meaning any property priced over $500,000 – are also hot purchases. The Houston Association of Realtors reports sales of these luxury homes are up 52% between January 2012 and January 2013. Existing homes aren't the only hot commodities, though. Houston leads the nation in home building construction permits. Right now, builders are purchasing as many lots as possible, tearing down any existing structures on them, and building new homes on the land.

So why is Houston's housing market so far ahead of the curve when compared to other metropolitan areas around the country? The answer may be job security. Houston's economy wasn't hit nearly as hard as many other major cities around the country because several energy companies are headquarted in the Houston area. Energy-based jobs are usually recession-proof, so while companies located elsewhere were laying off employees, energy businesses in Houston were actually expanding their workforces. These energy companies are continuing to add new jobs, many of which are high-paying positions. Job security combined with high income usually leads to increased consumer confidence, as is the case in Houston right now. Simply put, people in Houston are not only making a lot of money, but they aren't worried about losing those high paying jobs, so they're more likely to make a long-term investment, like buying a home.

So while January is usually a slow month for real estate transactions in other cities, in Houston, business is booming, and the housing market isn't expected to cool down anytime soon! Pending home sales at the end of January were up 13% from last year, meaning the spring selling season, which is historically hot, could be as scorching as a Houston barbecue pit this year!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Buy a Home on a Tiny Budget?

daniel@realtypin.com Daniel Torelli — Sun, 03 Mar 2013 17:30:05 GMT

If you are a first time home buyer, or simply in the process of buying a new home for the first time in awhile, you may find that your budget is making it difficult to find the home of your dreams. Although it is a little harder, that tiny budget does not have to make it impossible for you to own a great home. It just means you have to shop a little smarter!

Before you begin your search, make sure you’ve done some homework. First, check your credit report to know where you stand and to ensure there are no inconsistencies on it. After all, even a tiny mistake could hurt your chances of receiving a loan. If your credit report is accurate – but doesn’t look very good – take some time to improve it before you apply for a loan. If your credit isn’t strong and you have a very small budget, it will be very difficult to get your hands on a decent home!

But there’s more to take into consideration besides your credit. Banks also like to see longevity in your career. In fact, they prefer that you have at least two years with the same company. Your lender is also going to want to know where your down payment will be coming from. If you are receiving the down payment as a gift, be prepared to provide evidence that you will not have to pay it back. Also, banks don’t always broadcast this information, but they prefer that a married couple has been married for over a year when considering them for a loan. Even if you are approved for a loan, your best bet on a small budget is not always the typical home purchase. Other options that may be appropriate for your budget are rent-to-own homes, purchasing a condominium, or purchasing a REO or Bankrupt Property.

Each one has pros and cons, though…
Rent-to-own options can be a great option for wannabe-homeowners on a small budget. In this scenario, you seek out someone who is willing to rent or lease the home to you for a certain period of time, and after that time is up, you have the option to purchase that home with the rent going toward the down payment or the purchase price. The monthly rent payments are higher in these situations, though, because they help to pay for the down payment.

If that option doesn’t appeal to you, how about a condo? You can typically find a condo for less than the price of a single-family home. Condos are also sometimes a better choice for first time buyers since the lawn care and landscaping are usually handled by the Condo Association. One important thing to consider, though, is the Condo Association fee, because it can drive up your monthly expenses – so make sure it’s worth that extra cost!

REO properties refer to Real Estate Owned properties, or properties that the bank couldn’t sell at the foreclosure auction. There are opportunities to get a good deal on these properties, but make sure you do your homework. Foreclosures aren’t always a good deal, even though the price tags on them can be a lot lower than market value. In some cases, though, they need a lot of work – and that work adds up! Buying a home is something most Americans want to accomplish. Even with a small budget, it’s not impossible to make that dream a reality. The best thing you can do is to properly prepare and research all of your options before taking that next big step.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The New York Real Estate Market

daniel@realtypin.com Daniel Torelli — Sat, 02 Mar 2013 15:44:10 GMT

What’s Going on with New York’s Housing Market? - If there's one thing that New Yorkers have in common – from Buffalo to Manhattan, Albany to Binghamton – it's that they're resilient, and apparently, so is their state's housing market!

Hurricane Sandy, the recent blizzard, and a backlog of foreclosures are just some of the reasons that you might think that the real estate industry in New York would be struggling. But instead, the latest statistics show that home sales in The Empire State are off to a great start in 2013! Specifically, according to a report released last week by the New York State Association of Realtors (NYSAR), the number of sales of single-family homes, condos, and co-ops were up 9.5% in January when compared to the same month last year.

But even though sales are going up, the number of available homes for sale is going down. However, that’s not a bad thing. After all, thanks to good ol’ supply and demand, as the inventory of homes for sale continues to shrink, home prices are rising. According to the NYSAR report, the statewide median sales price is up 5% from a year ago. In January, the statewide median sales price reached $220,000, compared to $209,500 in January 2012.

But sales prices aren't the only market indicator that is posting significant gains.

“Other January housing market data points are also very encouraging as we enter 2013 with the highest number of January pending sales since 2007 and our third straight month of year-over-year median price gains,” said NYSAR CEO Duncan R. MackKenzie in a statement that accompanied the report.

Inventory in the state has reached a 7-year low, thanks to 24 consecutive months of year-over-year declines. In fact, at the current sales rate, the statewide supply of homes stands at 8.9 months. In January 2012, that figure was at a 12.3 months’ supply. According to MacKenzie, a 6 to 6.5 months’ supply is considered balanced in the state, so New York's housing market continues to inch closer to a balance between buyers and sellers – albeit slowly!

In all, the January market posted 6,231 closed sales across the state, with an additional 7,250 other sales pending. That's a 15.9% increase in pending sales from January 2012. As an added benefit, the average number of days a home was on the market before selling in New York was 127 days. That's down 3.1% from in January 2012, when the average was 131 days.

Economists say as the inventory of homes decreases, the average number of days it takes a home to sell will too. After all, whenever there is increased demand and a lack of inventory, multiple prospective buyers have to try and outbid each other for the property. Homes sell quicker in a seller's market, as homeowners are more likely to find a buyer willing to pay their asking price.

In January, 94.2% of homeowners who sold their properties received their listing price, and analysts say you can expect to see that percentage increase in the months to come. Why? Because there will be fewer homes on the market.

Statewide, there were 74,251 homes for sale in January, down 18.8% from the year before, when there were 92,025 properties listed.

So it seems a hurricane, a blizzard, and a backlogged foreclosure court process aren't enough to stop New York's housing market from showing signs of recovery, after all!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Mortgage Closings | How to Have a Smooth Mortgage Closing

daniel@realtypin.com Daniel Torelli — Fri, 01 Mar 2013 16:18:05 GMT

The Top 4 Ways to Have a Smooth Mortgage Closing - After you’ve found the home of your dreams, the last thing you want is to have some sort of issue pop up right at the end that could prevent you from closing your mortgage – and, ultimately, that could prevent you from moving into your new home. Having delays in the mortgage process is not only a headache, but if there are multiple offers on the home, there is a chance you could lose the house to another buyer! Luckily, by following these 4 tips, you can prevent any last-minute curveballs that might cause added stress when it comes time to close on your mortgage:

1. Care for your credit
Some people mistakenly assume that once they are originally approved for a loan, they are in the clear credit-wise. But anything that you do to change your credit score can change your mortgage rate up until the day you close! Until the loan is completed, you are still at risk to have an increased interest rate – or be disqualified completely – if you do something dramatic enough to affect your credit rating or to affect your debt-to-income ratio.
For example, buying a new car, co-signing on a loan for a family member, taking out a personal loan, missing a payment, or defaulting on a loan could all cause trouble during your mortgage closing. So, when you’re in the middle of purchasing a new home, take extra steps to make sure there aren’t any big purchases in the near future that might lower your credit score. (Even buying lots of furniture for your new home and putting it all on your credit card can be a red flag!)

2. Keep your income consistent
Although many times changing jobs is not something you can control, if at all possible, do not change jobs during the mortgage process. Banks like to see consistency in your employment history, and they put more faith in longevity to ensure a steady income. Changing jobs during the process – even if your new job comes with a bigger paycheck – can hold up the closing process. If you can help it, try not to purchase a new home when you are new to a job, since banks like to see consistency in your work. In fact, your interest rate is more likely to be lower if you have been at your current job for over two years.

3. Do a final walk-through
Finalizing a mortgage is not an easy process, so it’s important to make sure that everything is in order in the home itself in order to avoid any issues that may affect the closing of the mortgage. Make sure that any requests you have made have been properly addressed, and that everything is in order on the seller’s part for the home before you finalize your mortgage.

4. Keep all of your paperwork safe
The mortgage process will come with tons of paperwork, and whatever you do, don’t lose any of it! If you do, not only can it push back the closing of your home, but it can also end up costing you money.

Although it’s difficult to avoid all stress when purchasing a new home, by following these steps, you can make the process as easy as possible. And, by working with a realtor and a lender that you trust, you can avoid last-minute disasters that can prevent you from purchasing your dream home!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Real Estate Terms Explained

daniel@realtypin.com Daniel Torelli — Fri, 01 Mar 2013 16:13:06 GMT

The Top 5 Terms for First Time Homebuyers - Buying your first home can be a scary process. There are a lot of things that you may not realize and things that you should be prepared for that no one has warned you about. Your first defense against utter confusion when dealing with banks, sellers and realtors is learning the lingo! That’s why we’ve come up with the top five terms that all first time homeowners need to know – but may not totally understand:

1. Mortgage
A mortgage is the loan that you receive from a lender to actually purchase your home. Mortgages are repaid over monthly installments, so they include the price of your home as well as the interest that you’ll pay the lender for giving you the money.
Your mortgage rate will depend on a number of factors. First off, it may either be a fixed rate mortgage (meaning that it will never change during the life of your loan) or an adjustable rate mortgage (meaning that it will “adjust” or go up and down, depending on what interest rates do during the life of your loan).

2. Principal and Interest
The principal is the amount of money that you originally borrowed from the lender to purchase the home, and the interest refers to the amount of money that the lender is charging you for providing you the money to purchase the home. Typically, lenders use a percentage of the amount you are borrowing from them to determine the amount of interest.

3. Amortization
When you’re talking about home loans, amortization refers to paying down your principal over a certain time period. When you make your loan payment, a portion of that payment is applied toward the principal while another portion is applied to the interest. In the beginning of your loan, you typically pay more toward the interest, while toward the end of your loan, you will have paid off the interest and will only have to pay toward the principal.

4. Escrow
If a home is in escrow, it simply means that the home is in the process of changing hands. When the home is in escrow, a third party is called in to ensure that everything is being done properly when money is changing hands. The third party ensures that all contractual agreements are in place, before the money goes from buyer to seller. The entire escrow process typically takes around 30 days. The third party typically spends this time making sure that the original owner is, in fact, the true owner of the home and can legally sell the home. The third party protects both sides by making sure that the buyer actually has the funds in place to make the purchase as well.

5. GFE and TIL
GFE is short for “Good Faith Estimate” and TIL stands for “Truth in Lending” – and they’re both important terms to understand when you’re purchasing your first home. GFE is an estimate that your lender gives you that includes the total cost of purchasing your home – including the cost of the home, the interest, closing costs, taxes, fess, and any other costs that you may incur.
TIL was mandated in 1968 to require lenders to disclose all of the costs associated with the loans. This breakdown allows you to see how much money will be going toward your principal balance and how much will go toward your interest each month as well as your percentage rate.

Even though you’ve got the big terms down, don’t be afraid to ask your lender, your realtor, and the seller as many questions as you need to. Do your research, and make sure you feel completely comfortable before you buy your first home. That way, it will be money well-spent!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Americans’ Views on Housing Turning Around?

daniel@realtypin.com Daniel Torelli — Thu, 28 Feb 2013 16:05:54 GMT

It has undoubtedly been a rough couple of years for the housing market. But finally, after a lot of negative feelings and downright pessimism toward the housing market and the U.S. economy as a whole, it seems as though American’s views may be turning around.

Although it hasn’t been all good news lately, recent polls have shown that Americans are becoming hopeful for a turnaround. A recent Rasmussen Reports Poll found that 36% of homeowners surveyed believe that their property value will increase over the next year. The poll also found that 46% of homeowners surveyed believe that their home value will stay the same – which is much better than the last few years, when most people thought their property values were going to decline. In fact, this poll shows the highest level of optimism in the housing market in the past several years!

This optimism isn’t just a pie-in-the-sky wish, though. It’s supported by hard statistics. Property values and prices are rising in many major cities, with some areas such as the Bay Area even experiencing dramatic spikes – like million dollar homes receiving multiple offers and all-out bidding wars! Unfortunately, though, some big cities – like Chicago, Charlotte, Las Vegas, Detroit, and Miami – are reporting their lowest prices in years. However, what’s different from past years is that people living in these cities are hopeful that their property values will increase (or, at the very least, stay the same) over the next year.

This optimism is somewhat surprising, considering that the economy is still struggling and the nation’s unemployment rate is close to 8%. Still though, people who are currently renting say they won’t be deterred from buying a home in the future. In fact, a recent Fox Business survey showed that 78% of current renters plan to buy a home soon. That’s up from 72% who said they wanted to buy early last year.

Why?

As they’ve said in several recent surveys, it has always been part of the American dream to own your own home. Even with the housing market in a slump, people still want to reach that part of the dream. Couples and young professionals who purchased “starter homes” want to upgrade their home or condo to something bigger and better, and most renters plan to purchase their first home soon. Even though it is more difficult to be approved for a loan than it was a few years ago, people still believe that they can achieve their dream.

And, by believing that they can reach their goal, it’s proof that these renters think they’ll have the steady income and the qualifications necessary to purchase a home.

This optimism is a step in the right direction for the overall economy since the housing market is a major part of it. After all, the housing market’s crash was what led to the recession back in 2008. So, if the housing market can keep going on its current track of slow improvement, it can give Americans more confidence not just in the market – but in the economy overall. That way, we can start to see bigger and better things on America’s overall road to recovery.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Will Sequestration Affect the Housing Market?

daniel@realtypin.com Daniel Torelli — Thu, 28 Feb 2013 15:55:48 GMT

The most popular word on the U.S. Senate floor these days is “sequestration”, but what does it mean and, more importantly, how it will affect the housing market?

Sequestration is a fiscal policy procedure that attempts to fix the federal budget deficit through the cancellation of budgetary resources. Or, in layman's terms, when the federal government needs to fix the budget, lawmakers approve a series of large budget cuts that apply to each government department.
The latest series of cuts go into effect on March 1st, and some federal housing officials are worried that the sequestration could spell doom for the housing market.

Last week, U.S. Secretary of Housing and Urban Development (HUD) Shaun Donovan told a Senate panel that the massive government budget cuts would, “harm numerous families, individuals, and communities across the nation that rely on HUD programs.”

Among the many departments that will be affected is the Federal Housing Administration (FHA), which plays a big role in mortgage industry. The FHA insures certain home loans, making them less of a risk for private lenders, and therefore, enabling more Americans to get approved for a mortgage. In fact, according to a report released last week, 23% of all mortgage originations in 2012 were FHA-insured loans. But if the agency loses staff – which it likely will have to due to the budget cuts – it could slow down how quickly applications are processed and how fast the agency can sell foreclosed properties that it owns.

And speaking of foreclosures, directors at the FHA and HUD claim that an additional 75,000 Americans will lose their homes to foreclosure in 2013 because of sequestration. That’s because one of the HUD programs scheduled to be cut is a foreclosure prevention counseling initiative.

Secretary Donovan told Senate, “Distressed households who receive counseling are more likely to avoid foreclosure, while families who receive counseling before they purchase a home are less likely to become delinquent on their mortgages.”

Housing officials also worry about the impact the cuts will have on mortgage interest rates. Low rates have been a driving force in the housing market's recovery, and if the FHA-insured loans are reduced or eliminated, many prospective borrowers will be turned down for a mortgage.

Also, if government employees are in the process of purchasing a home, but lose their jobs, lenders may cancel their loan applications.

In either event, fewer loan approvals means that fewer homes will be sold, and therefore, the need for new construction will also decrease. HUD officials say that means many home builders, contractors, and construction workers who only recently got back to having steady work may once again be unemployed and looking for supplemental income.

These fears are especially alarming to people living in the Washington D.C. and Northern Virginia areas.
That's because much of the local economy in these areas rely on people who work for the federal government, so if those individuals lose their jobs, it could affect home sales, construction, and the mortgage industry in D.C. and the surrounding areas.

Despite the concern, the U.S. Senate has no plans to cancel the sequestration, so only time will tell if the fears over a crumbling housing market turn into reality.

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Is It a Seller’s Market?

daniel@realtypin.com Daniel Torelli — Wed, 27 Feb 2013 16:01:27 GMT

Is It Finally a Seller’s Market? - Home sales across the nation are up, but the number of properties listed for sale continues to drop, so have we finally turned the corner from a buyer's market to a seller's market? Statistics released last week by the National Association of Realtors indicate that the answer is yes!

The number of homes listed for sale in January fell by 4.9%, leaving only 1.74 million properties on the market. That’s the lowest that number has been since December of 1999, when there were only 1.71 million homes for sale.

Back in January of 2011, there were 2.91 million homes on the market, so clearly the inventory of properties for sale is shrinking. However, the number of home sales was up 0.4% last month. At that pace, we would see an annual rate of 4.92 million units. That's up 9.1% from January 2012.

So what does all of this mean? Simply put, there are more people interested in buying a home now, but there are fewer homes available. In fact, at the current sales pace, it would take just 4.2 months to sell all of the homes that are currently listed across the nation.

Typically, inventory of homes for sale increases in the spring, but economists at the National Association of Realtors say this year could be different. While they expect the inventory to increase a little bit, they aren't anticipating the usual spike because many homeowners either can't afford to sell their homes or are waiting for home prices to rise higher before they do.

Homeowners who purchased their homes during the housing boom in the mid 2000's have seen the value of their properties drop off significantly in recent years and are now underwater on their mortgages – meaning they owe more on their loan than the home is now worth. That is preventing them from selling even if they'd like to do so.

Analysts at the National Association of Realtors say the increased demand but lack of inventory will cause prices to go up, but how high they go still remains to be seen. In the meantime, investors are purchasing as many properties as they can in communities where home prices are still low. Places like California, Arizona, and Florida were hit the hardest during the recession, and as a result, have seen the largest decline in prices. Investment groups are swooping into these states, buying up the properties, and leasing them long-term for now, with hopes of selling them for a profit once home prices level off.

Unfortunately, though, those investors have made it harder for “traditional” buyers to purchase a home, so in many states, bidding wars are taking place for the few remaining homes on the market.

But despite the lack of inventory, analysts at Goldman Sachs estimate that home sales could rise to 5.2 million units this year, which would be a 12% increase from last year.

So how can the number of sales increase if inventory is expected to be lower than usual? Economists at Goldman Sachs predict than many homeowners who are holding out for now will eventually list their properties later this year once they realize that prices have stopped increasing.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is New Home Construction Slowing Down?

daniel@realtypin.com Daniel Torelli — Wed, 27 Feb 2013 15:56:48 GMT

It's amazing how quickly things can change in the home construction business! Last month, the National Association of Home Builders (NAHB) reported that builder confidence was at its highest level since April 2006, and they had plenty of reasons to be happy. After all, research showed that private residential home construction companies saw an average sales increase of 3.6% from December 2011 to December 2012. The number of houses built in 2012 was the highest it had been in 4 years, and the Department of Housing and Urban Development (HUD) reported that single-family home starts posted double-digit increases in month-to-month and year-to-year comparisons.

But recently released statistics from the U.S. Commerce Department show that perhaps the excitement over the housing industry's turnaround was premature. Housing starts fell 8.5% in January after surging 15.7% in December. The Commerce report said new-home construction totaled a seasonally-adjusted rate of 890,000 last month, after jumping to 973,000 the month before. Despite the drop-off, January's pace was still the 3rd-highest since 2008.

Economists and members of the NAHB were disappointed with the statistics, hoping that January would continue the upward trend and contribute towards recovery for the housing market.

Even more importantly, the new figures affected builder confidence. The NAHB reported last week that the sentiment index dropped to 46 in February. Readings below 50 indicate that a majority of builders polled have negative feelings about the housing industry. (Although this was the first monthly drop since last April, builders are still happier now than they were in October 2011, when the index was a 17!)

So, does this mean that builders got ahead of themselves and started construction on too many new homes? Analysts say, “not necessarily!”

It wasn't all doom and gloom in the Commerce Department report, though. In fact, there was plenty of encouraging news, too, leading many analysts to say they are still expecting the housing market to rebound from the recession. The pace of construction of single-family homes rose 0.8% in January, and the number of new permits to build a home also showed improvement. They totaled 925,000 at an annual rate last month, up 1.8% from December's 909,000, which had been the highest total for permits since mid-2008.

Home prices for previously-occupied homes continue to rise, while the inventory of homes on the market is at its lowest level in nearly 10 years. There are fewer low-priced foreclosures available now as well, so many prospective buyers are considering purchasing a newly-constructed home instead of trying to outbid other buyers for previously-owned homes.

And, thanks to historically low-interest rates, more Americans who are currently renting are considering purchasing a home. Remember, sales of new homes jumped 20% in 2012, and economists expect a similar increase this year.

Although they don't anticipate the housing market to make a full recovery until 2015, leaders at the NAHB say even these slight increases of new home constructions and sales help the economy. They claim each new home built creates an average of three jobs for a year and generates $90,000 in tax revenue.

So, while January's numbers weren't as encouraging as many had anticipated, it seems that the housing market – and the new home construction market – is still headed in the right direction.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Auctions | The Ins and Outs

daniel@realtypin.com Daniel Torelli — Tue, 26 Feb 2013 15:15:04 GMT

There’s a type of home sale that’s really gaining in popularity these days – the home auction!

Although auctions are not anything new, many people have begun using this type of sale because it’s totally different than doing things the “normal” way. After all, ever since the housing market crashed, people have had to get creative when it comes to selling their homes, and many people have found that a home auction has exactly the creative benefits that they are looking for.

You probably think of an auction as something you do for an old run-down house or as part of an estate sale, but today’s auctions are done for many different homes – many of which are in great condition. These homes are also auctioned off at all kinds of different prices.

One of the biggest benefits of a home auction is the speed in which you are able to sell your home. When you sell your home the old fashioned way, you typically have months of open houses, showings, and, finally, negotiations. But when you auction off your home, you have one day to go through all of that – and at the end of that day, your home is sold, and you have cash in hand.

The speed at which you are able to sell your home is not the only benefit of auctioning your home. When you sell your home the “traditional” way, you run the risk of having to show it off to people who aren’t serious about buying it. But when people come to an auction, they are there to buy.

Another advantage of an auction is that with so many bidders, homes are more likely to sell for much higher than you could ever imagine – or would even dare to ask in a listing. The competitive nature of humans sometimes turns the auction into wanting to win, and in the heat of the moment, a bidder may spend more than they would if they time to really sit and think about it!

There can be some downsides to auctioning off your home, too, though. Although you can request a reserve on your home, all sales are final, and if the winning bid is less than you were hoping to get, you can’t cancel the auction and try a different route. Many auctioneers explain that you may be sacrificing speed for price. And, if for some reason the house doesn’t sell at all, you’re still stuck paying for the auctioneer and all of the marketing materials you used to promote the auction.

If you are considering going to an auction to buy your next home, don’t expect it to be a fixer upper that’s going to be one giant project. There are plenty of great homes in perfect condition on the auction block these days.

Before attempting to purchase your next home this way, do your homework and pick your high price point – and, most importantly, don’t let yourself get carried away in the heat of the moment! And, of course, make sure you have secured your funding before you make a single bid.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Las Vegas Real Estate | 20% of Las Vegas Homeowners Owe Double of Home’s Value

daniel@realtypin.com Daniel Torelli — Tue, 26 Feb 2013 15:00:04 GMT

Las Vegas was one of the hardest hit housing markets when the economy crashed, and while some parts of the country are seeing a steady improvement, people who call Sin City home are continuing to suffer. In fact, a recent report found that 20% of homeowners in Las Vegas owe double of their homes’ current value! Out of those homeowners, 10% have defaulted on their loans.

Even if homeowners are staying current on their payments, these underwater mortgages – which refer to a situation where the homeowner owes more on the mortgage than what the home is actually worth are detrimental to these homeowners for several reasons. In most cases, it prevents them from refinancing their mortgages. It also can prevent the homeowner from selling their home, unless they have money available to pay off the difference on their loan. Since most people don’t have that kind of cash just lying around, these people are literally trapped in their homes!

Underwater mortgages are even more problematic, because if a person or family can’t repay or handle the payments, chances are good the home will fall into foreclosure. Not to mention how disheartening it is for a family to know that there home is worth less than what they still have yet to pay on it!

When you’re tallying underwater mortgages, 20% is a very large number for a city to be faced with. And, when you consider that this number only accounts for people who owe DOUBLE what their homes are worth (not just people who are underwater in general), it’s absolutely astronomical. In fact, it could be devastating for Las Vegas’ housing market as a whole.

Why?

In many cases, when people face a situation like this, they decide to just walk away from their home and let it go into foreclosure. People feel like the situation is hopeless and figure there’s nothing they can do to fix what they consider to be a bad investment. If that were to happen here, it would create a glut of abandoned, foreclosed homes.

But things aren’t all bad. There is a slight glimmer of hope. Property values are starting to increase, which, in time, will start to lower the number of underwater mortgages. Once property values get high enough, people here will start to break even. If they wait long enough, they may even see value in their homes and decide they are able to sell.

On another positive note, fewer Las Vegas homeowners are delinquent on their mortgage payments this year than last year. When you combine that with slowly-increasing property values, it spells out a very slow recovery for Las Vegas residents. In fact, if these trends keep going, experts say 8,000 homeowners should get above water in 2013.

Right now, the best that we can do is hope that Las Vegas will soon catch up with the steady improvement that other parts of the country are seeing. Until then, people who own homes in Las Vegas will have to continue to hang on and hope for improvements.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Questions to Ask Your Lender

daniel@realtypin.com Daniel Torelli — Tue, 26 Feb 2013 14:57:23 GMT

Buying a home can be confusing, especially if it's your first time. There may be legal language that you don't understand, the process may take longer than you anticipated, or you might not know exactly what a lender is allowed to ask you and what is forbidden.

Don't worry; this is all normal! Just remember – you should feel comfortable asking questions about any part of the mortgage application process, too. After all, purchasing a home is serious, long-term commitment, so you need to be completely comfortable with the situation before signing on the dotted line. That’s why you need to ask your lender these 5 questions before you finalize everything:

1. “Which loan is best for me?”
When applying for a mortgage, it's important to know about the various different types of loans available, and which one is best suited for you. For example, there are fixed rate and adjustable rate mortgages, loans than run 30 years or 15 years, and government assistance programs if the home you are purchasing is in need of repair or is located in a rural area. An honest lender will work with you and help you identify the best type of loan for you, so don't be afraid to ask if there are other options available.

2. “What does APR really mean?”
Many buyers are confused by interest rates, annual percentages rates (or, “APR” for short), and how to tell the two apart. APR is a figure that is calculated by a complex formula. It includes the interest rate and all of the other related lender fees divided by the loan's term. Because interest rates fluctuate, so does the APR. When your lender is calculating the numbers, ask them to explain all fees, including the APR, so that you'll have a better understanding how they reached the total of the loan and your monthly mortgage payment amount.

3. “What are discount points?”
If there's one thing that confuses first time buyers, it's discount points! Discount points allow you to buy down the interest rate, and generally speaking, a point is equal to one percent of the loan amount. So, if your loan is for $200,000 and you buy two points, that's $4,000 off your loan. Basically, you’re making an upfront payment that reduces the interest rate and saves you money over the life of the loan. Oh, and they're also tax deductible! Some lenders offer discount points, but others don't, so be sure to ask if yours does. Also, be aware that many lenders charge fees for points, so clear that up beforehand, too.

4. “Do you offer loan rate locks?”
Interest rates can swing up or down fairly quickly, meaning the rate that a lender quotes you during your pre-approval may not be the same one you receive on your final loan agreement. The best way to make sure that you get the rate you were first quoted is by locking in the rate. Most lenders offer this option, but some don't, so it's always a good idea to ask. Typically speaking, you can lock in a rate for less than one point, so that's some added security and one less headache you'll have to deal with later in the process.

5. “Is there a prepayment penalty?”
This is a very important question that many borrowers forget to ask because they aren't thinking about the future when they’re purchasing a home in the here-and-now! In many states, prepayment penalties are illegal, but some states still allow lenders to charge up to six months of unearned interest if you pay off the loan early though a refinance or if you sell the home. You never know what the future holds, so it's always best to know if you'll be charged a penalty should you refinance or sell your home at some point down the road.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How the Recession Changed Home Renovations

daniel@realtypin.com Daniel Torelli — Mon, 25 Feb 2013 15:44:21 GMT

The Top 3 Ways the Recession Changed Home Renovations - The economy continues to gain steam, and more Americans are taking notice. Now that many homeowners know the worst part of the recession is behind us, they are starting to tackle more home improvement projects. In fact, the National Association of Home Builders predicts a 20% increase in spending on remodeling this year!

But unlike a few years ago – when homeowners would make upgrades and repairs to their homes with the intent of selling the property for a bigger profit – most of the renovations being made today are for their own enjoyment. Instead of giving the home a makeover before listing it, more homeowners are treating their property as their castle, spending money on upgrades they will enjoy, and are staying put instead of trying to sell.

Market experts say that's the biggest difference they are seeing between home renovations during the housing boom and ones being made today, but there are several other ways the recession changed the home improvement business, including the 3 listed below:

1. Paying with cash
If the recession taught us anything, it's that we need to try and avoid debt whenever possible. When the economy collapsed, many Americans were laid off and got behind on their mortgage payments. The national unemployment rate skyrocketed, and the housing market was flooded with distressed properties.Even those who were fortunate enough to keep their jobs and homes felt the sting of a deflated economy. Most everyone began living on a budget and stopped racking up their credit card bills. Now, even though the economy is recovering, many Americans are still apprehensive to use credit. Builders say most homeowners who are remodeling their homes these days are paying with cash and are making upgrades when they can afford them, instead of trying to do everything at once and putting it all on a credit card.

2. Do-it-yourself design
Prior to the recession, many homeowners would rely upon an interior decorator or architect to come up with a plan for their renovations. But these days, more and more people are deciding to do that portion of the work themselves.
Social media sites like Pinterest are where many homeowners are going to get ideas, and then taking them to a professional for nothing more than a final touch. In fact, since building construction has been so slow in recent years, many contractors still don't have a steady amount of work and are more than willing to tackle these bit-by-bit projects. By coming up with ideas themselves, homeowners are only having to pay for the actual construction, not the designer costs, too.

3. Price negotiations
When the economy was booming, contractors were being offered more work than they had to time to do. But then, the bottom fell out of the housing market, and many contractors found themselves looking for work. Their workload has picked up in many markets around the country, but many still don't have quite enough projects on their plate. As a result, most contractors are willing to negotiate with a homeowner over the price to make some home renovations. A lot of smart homeowners are realizing they have the ability to haggle with a contractor and are making sure they get a good deal!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Government Report Calls FHA “High-Risk”

daniel@realtypin.com Daniel Torelli — Mon, 25 Feb 2013 15:14:02 GMT

Government Report Calls FHA “High-Risk” - The hits just keep on coming for the FHA!
A government oversight group has deemed the agency to be “high risk” in a new report. In fairness, the Government Accountability Office (GAO) declared several government agencies to be a high risk, but the FHA was at the top of their list. The GAO cited the FHA’s rapid growth in mortgage financing, as well as their limited amount of capital reserves, for putting them at the top.
For decades, the FHA has helped millions of Americans qualify for mortgages, most of whom sit in a lower income bracket, by insuring private lenders against losses on defaults. But thanks to the recent economic crisis, the FHA has played an even bigger role in the housing market. Because lenders have been wary of writing home loans without the FHA’s safety let, they have become almost a go-to source for Americans looking for mortgages. Now, however, the FHA is operating in the red itself, sparking watchdogs like the GAO to urge the agency to secure more funds for its reserve in case of another crisis.
This report is the latest headline for the FHA, and most of the agency’s time spent in the news lately hasn’t been for anything positive. The FHA recently made news when many experts believed the agency was destined for a government bailout. While the talk has died down a bit, it’s still a strong possibility.
Right now, the FHA is considered to be “high risk” because its reserves are below the required amount. In its announcement, the GAO stated, “Although required to maintain capital reserves equal to at least 2% of its portfolio, FHA’s capital reserves have fallen below this level, due partly to increases in projected defaults on the loans it has insured. As a result, we are modifying this high-risk area to include FHA and acknowledge the need for actions beyond those already taken to help restore FHA’s financial soundness and define its future role.”
Some question whether this “high risk” label is a little premature, since there is still quite a bit of money in the FHA reserves. In fact, some experts say that, after the disaster of Fannie Mae and Freddie Mac, people are exaggerating the risk level of the FHA. However, other experts say that fears over a possible bailout, coupled with a general sense of distrust in government agencies when it comes to the housing market, may be behind the “high risk” label.
The report couldn’t have come out at a worse time, though. Trust in the FHA is already low, and many people are beginning to question whether the agency is still even viable. Thanks to talks of a bailout in late 2012, Americans were already nervous about the FHA. This could send them over the edge.
So, what’s next for the agency?
The FHA is combatting these issues by doing a number of things designed to lower its risk. According to the GAO, the FHA “created a risk office in 2010 and hired a consultant to recommend best practices. FHA plans to charter committees to evaluate risks at enterprise-wide and programmatic levels.”
The FHA has also been attempting to produce more revenue while decreasing its risk, by increasing its underwriting standards and, just recently, raising its fees. The FHA hopes that by implementing these new practices, it will be able to avoid the need for a bailout and lower the number of borrowers who default on loans that it insures.
However, only time will tell if those measures actually work!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Can You Buy a Home Quickly?

daniel@realtypin.com Daniel Torelli — Mon, 25 Feb 2013 15:07:20 GMT

How Can You Buy a Home Quickly? - People who want to purchase a new home are racing against the clock. If you're among them, you've probably heard that it's still a buyer's market, but that you need to act soon because home prices across the country are starting to rise. In other words, now is the time to buy, but as anyone who has ever bought a home can tell you, it's not a quick process. Between searching for and locating the right home, lender issues, and delays with mortgages and closing dates, the home buying process can really drag on!

So what can you do if you really want to just get it over with and move into your new place?

First, you need to find the perfect home. You could go the traditional route and spend your weekends house hunting, visiting open houses and schedules tours of homes that catch your eye. The only problem with this method is that you waste a lot of time visiting homes to see if they’re the right fit!

Instead, begin your search online, and narrow homes down by size, price, neighborhood, etc. Look specifically for homeowners who may be in a hurry to sell their home, and take advantage of that situation. Oftentimes, a seller who is relocating because of work, downsizing because they've lost their job, or who underwater on their mortgage is looking to get rid of their home fast, so they are much more likely to negotiate the price than a seller who can afford take their time.

As you search online for homes, make a list of items that you can't live without, and a list of amenities that you're flexible on. For example, if you need a walk-in closet, only look at homes that include those. If you want a garage, but find the perfect home without one, ask yourself if you're willing to park in the driveway, add one to the home, or if not having one is a deal breaker. Knowing what you're looking for – instead of just aimlessly looking at listings – will save you a ton of time!

If you're having trouble narrowing down the homes online, ask your realtor for help. After all, her job is to find properties that meet your needs, and to help you with paperwork during the actual purchasing process.

Once you have a small list of potentials (5 or less), ask to schedule a viewing of those homes. That way, you only have to take a tour of homes that you are actually serious about purchasing.

While your realtor is scheduling those showings, get pre-approved for a loan. Although pre-approvals aren't guaranteed, they at least show sellers that you can afford their homes. In fact, many sellers won't even look at an offer unless it's accompanied by a pre-approval letter! And, since pre-approvals also list your maximum purchase price, you won't waste time looking at homes that are out of your price range.

While viewing the handful of homes you're interested in, you need to stay in contact with your lender. Go ahead and start compiling all the paperwork they're going to need to approve your loan (proof of income, W2s, bank account information, etc.) so that there won't be any delays in the closing process once you've chosen a home.

By having a game plan, you'll be able to locate the perfect home for you and your family much faster. By staying one step ahead of the game the entire time, you can move in much sooner than originally anticipated!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do Rising Gas Prices Affect the Housing Market?

daniel@realtypin.com Daniel Torelli — Sun, 24 Feb 2013 19:12:59 GMT

How Do Rising Gas Prices Affect the Housing Market? - If you've been to the pump recently, you know that gas prices are constantly rising. In fact, it seems every time you go to fill up the tank, you have to pay more than you did last time! While it's obvious that increased fuel costs affect every American's wallet, you may not realize that rising gas prices also affect other industries as well.

So, do they have a direct impact on the housing market? Economists say yes!

First, rising gas prices create anxiety and doubt about the future of the entire economy, including the real estate industry. Experts say that people see gas prices going up, and automatically assume that all other goods and services will increase in cost in the near future.

In fact, psychologists say the stress of paying more at the pump causes prospective homebuyers to be more cautious with their money. They begin to worry about their other expenses – wondering which ones will soon increase, and if they'll have the money to cover the difference. This makes them less likely to shop around (especially for big purchases), because they start to question the stability of the economy and housing market. After all, what's more long-term and expensive than buying a home?

So, something as simple as a few more cents per gallon at the pump can do damage to consumer confidence, which is never good when the economy is trying to recover from a recession.

But there’s also a more “common sense” approach to the issue.

Gas prices affect the housing market because people who are looking to purchase a new home are likely to limit their search to a much smaller area in an effort to save money. History shows that when gas prices are on the rise, the number of rural homes sold is far less than the number of homes sold in cities or near major work centers. Simply put, homeowners want to save money by limiting the amount of gas they use to get to work. There isn't much that a homebuyer can control when it comes to prices, but many realize that they can spend less money or gas and limit the wear and tear on their car if they live close to work.

And when fewer homes sell in rural areas, the construction industry suffers as well. If no one is buying the homes that builders have already completed, they don't start on new construction projects.

In fact, last year the Federal Reserve released a startling statistic. They said that a 10% increase in gas prices leads to a 10% decrease in construction after a 4-year time period in areas with a longer-than-average commute to work!

A reduction in housing construction affects other businesses, too. Companies that provide building supplies receive fewer orders, and restaurants and locally-owned businesses located further from a city's downtown area suffer because fewer homes are popping up near their stores.

Economists say businesses also suffer from higher gas prices because homeowners are less likely to spend money on dinner, drinks at the local pub, or a night at the movies when fuel costs increase. After all, Americans try to offset those added expenses by cutting back on entertainment. And, when those business owners have less money coming in, they have less money to spend on employees – meaning fewer people have steady paychecks to spend on things like new homes!

So while it may seem that prices at the pump and the housing market aren't connected, in reality, rising fuel costs affect many aspects of the economy, including your local housing market!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Goes into a Mortgage Refinance?

daniel@realtypin.com Daniel Torelli — Sun, 24 Feb 2013 18:51:04 GMT

What Goes into a Mortgage Refinance? - If you've been thinking about refinancing your mortgage, now is the time to make a move! After all, interest rates remain near record lows, but are slowly starting to rise, and economists predict that will continue throughout the rest of this year and into 2014. So, by refinancing now, you can get a lower rate that will save you thousands of dollars in interest and reduce your monthly mortgage payment. But, there are some hurdles that you need to be aware of before applying for a mortgage refinance. Just like the traditional mortgage process, refinancing isn't as easy as it used to be.

So, what's it really like these days?

First, be prepared to provide lots of financial documents and fill out a ton of paperwork. Ever since the housing market's collapse a few years ago, lenders have become very picky when it comes to approving a loan. They have stricter underwriting guidelines that borrowers must meet to get a mortgage approval.

The same applies for refinancing your loan.

In addition to filling out a lengthy loan application, you will be asked to provide recent income tax returns, pay stubs, and proof of checking and savings account balances. Even if you've never been late on a mortgage payment, banks will want documentation that you have steady income and can manage your bills. This assures them that you will remain current on payments after the refinance is approved. If you're self-employed, your income fluctuates, or you have switched jobs often, you need to be prepared to provide financial records spanning several years.

But the paperwork doesn’t stop there.

Your lender will also require that you have both a home survey and appraisal done on the property to determine the true value of your home, and you must provide proof that you've got homeowner's insurance. Speaking of appraisals, yours could be the difference as to whether or not your refinance application is approved or denied. If the appraiser says the home is worth less than you had originally thought, the bank is likely to offer an amount lower than anticipated – or they may deny your request completely.

There's nothing as frustrating as lacking the equity in your home needed to refinance. Luckily for you, if your lender says no, there are other options you can pursue, including the federal government's Home Affordable Refinance Program (HARP). This program is specifically designed for homeowners who are up-to-date on their mortgage payments, but are unable to refinance because they are underwater on their loan.

Many Americans who bought homes during the housing boom have seen the value of their property's drop off significantly in recent years, so if you're among them, HARP is a refinancing option you should consider in addition to any loan modification that your lender may offer. So, if you're financially stable, have a good credit score, an excellent history of paying your mortgage on time, and you're prepared to hurdle any obstacle that comes your way during the process, you might want to consider contacting your lender about a refinance. Is the process tedious? Yes. But is it worth it? Absolutely! If you get frustrated during the application process, just remember that refinancing can literally shave thousands of dollars off your mortgage payments every year!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Will New Rules Eliminate Mortgages?

daniel@realtypin.com Daniel Torelli — Fri, 22 Feb 2013 17:47:47 GMT

Will New Rules Eliminate 60% of Mortgages? Two new mortgage regulations designed to reduce lender risk may actually make it impossible for millions of Americans to own a home in the future!

The rules – one of which has already been finalized and one that's still in the works – are both part of the U.S. Treasury Department's initiative to make the mortgage industry less risky for lenders by placing more burdens on borrowers.

But just how strict are the new guidelines?

Experts say 60% of mortgage applications being approved today would be declined if the regulations were already in place.

Why?

Since the housing market collapsed in 2007, many lenders have voluntarily implemented higher underwriting standards on their own before granting a loan approval. After all, the main reason that the housing bubble burst was that people were given mortgages that shouldn’t have – and then couldn’t pay their loans back. In the years since, there hasn’t been a universal code or plan in place to prevent that from happening again. But there is now!

The Qualified Mortgage rule (QM rule), which was finalized last month, lays out a specific code of guidelines that prospective borrowers must meet for a lender to grant a home loan approval. The guidelines include a stricter debt-to-income ratio than is currently allowed, and it will eliminate all loans that require no or low documentation. In other words, only borrowers who can prove that they have the financial security to make a monthly mortgage payment will be approved, and lenders must make sure that they dot all their I’s and cross their T’s before agreeing to give out a loan.

If someone doesn't meet the criteria, they can still pursue a government-sponsored enterprise loan (GSE) or a Federal Housing Administration (FHA) mortgage – for now. For the next seven years those types of government-assistance loans are exempt, but after that time period, they must also confirm to the new rules.

A majority of home loans today are GSEs and FHA loans, and economists at CoreLogic say nearly half (48%) of the homeowners who were recently approved for these loans wouldn't make the cut down the road.

So, what about the other rule?

The other rule, which is still being finalized, is called the Qualified Residential Mortgage rule (QRM rule).
In order to meet this guideline, borrowers must be able to make a specific percentage down payment on the loan. While that actual percentage still hasn't been finalized, the number being thrown around is 10%, which is slightly above the national median (which currently sits at 9%).

The goal is to avoid the risk retention requirements that significantly raise interest rates, so the days of a zero down payment and borrowing 100% of the home's price will be a thing of the past.
Economists say the QM and QRM rules would remove 60% of loans, but would also eliminate 90% of the risk.

While it is true that these rules will make the goal of homeownership much harder to obtain, they are designed to ensure that only those individuals who can truly afford to own a home actually receive a mortgage. That way, there will be fewer delinquent mortgages, foreclosures, and short sales, and in turn, the still-recovering economy and housing markets will have a much lower chance of spiraling downward out of control again.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Bay Area Home Sales Hit 6-Year High

daniel@realtypin.com Daniel Torelli — Fri, 22 Feb 2013 17:45:53 GMT

Bay Area Home Sales Hit 6-Year High - If you’re getting ready to list your Bay Area home for sale, you’re going to want to read the latest numbers carefully! Sales of homes around the Bay area are up an average of 25% from last year at this time. In fact, they’ve hit a 6-year high!
As impressive as those numbers are, they’re made even more impressive by the fact that the Bay Area is well-known for its expensive homes. In fact, only New York City is a more expensive place to buy real estate!
So, what’s causing this surge in sales?
There is a huge amount of demand, but when you combine all of those buyers with low interest rates, you have an increase like what we’re seeing here.
January is typically known as a slow month for real estate, so that makes this increase in sales even more dramatic. And with an average price tag of $435,000 per home, this surge has been no small feat! However, many experts say demand is so high because there are so few homes on the market.
With the housing market slow to recover, many people have been holding off on selling their homes. As a result, sellers here are seeing a dramatic increase in selling prices. Even million dollar homes are receiving multiple offers. Recently, one home carrying a seven-figure price tag even received 14 offers! A home with a slightly smaller asking price received 28 offers!
Record-low interest rates are making it easy for buyers to swoop in. Since most people realize that these low interest rates will not last forever, they’re willing to increase their offers in order to make sure they don’t miss out on a great opportunity.
But interest rates aren’t totally responsible for the surge here, since many of the homes around the Bay Area are selling for cash. And, with so many of the homes here getting caught up in bidding wars, the buyers offering cash have a habit of winning out!
DataQuick also reported that another reason for the recent increase in sales is investors. In fact, nearly 30% of the sales in January came from investors who either decided to take advantage of the lower prices due to the slow recovery of the housing market (at least, lower as compared to pre-recession prices!), wanted to buy homes with cash and flip them for a profit, or were interested in renting out the homes as vacation rentals.
No matter why people are scooping them up, the increase in sales and prices will hopefully signal a recovery for the housing market in the Bay Area and beyond. As people start to see their neighbors receive far more than their asking prices (as well as multiple offers and bidding wars!), they may decide it’s time to sell. In the meantime, though, sellers will get to take full advantage of prices driven up by a tiny inventory!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Washington D.C. Real Estate

daniel@realtypin.com Daniel Torelli — Thu, 21 Feb 2013 15:35:41 GMT

Washington D.C.'s Housing Inventory Keeps Going Down - Like many other housing markets around the country, the inventory of homes for sale in Washington D.C. keeps shrinking. And, when you consider how small the District is to begin with, there’s very little for sale right now!

The ironic thing here is that consumer confidence continues to rise, so more prospective buyers are looking to make a purchase, but homeowners remain apprehensive to list their properties!

According to recently released data, there is a shortage of all types of homes for sale in the nation's capital. In fact, the Center for Regional Analysis at George Mason University says inventory last month was at an eight-year low.

Overall, new listings in the D.C. metro area increased from December to January, but that's typical in all housing markets as we begin to transition from the colder winter months to the milder spring season. But when you analyze the year-to-year numbers, that's when you realize how few homes are on the market today in Washington, D.C. The number of single-family homes on the market plummeted by 36% from January 2012 to January 2013. Right now, the number is as low as it’s been in over 15 years.

Condominium listings fell by 43% during the same time period, and townhomes for sale are even harder to find, with the lowest proportion of listings on record.

Because of the short supply, the median sales price in the D.C. metro area of all homes continues to rise, posting gains for the fourth consecutive month. And on a year-to-year comparison, it's up 5% from January 2012 to January 2013. Townhomes saw the largest median sales growth, up 13.3% in the same time period. And despite the higher prices, condos are also a hot commodity. The number of pending new contracts for condominium purchases increased 10% in January.

So, with these conditions – which clearly indicate a seller's market – why are homeowners still cautious about listing their properties?

Experts say several factors could be at play, including some situations where the homeowner wants to sell the home, but can't.

Like most other metropolitan areas around the nation, D.C. saw home prices spike in the early 2000's before the economy and housing market collapsed in 2008. Many homeowners bought their current residence before the housing bubble burst, so they paid a lot more for the home then than what it's worth now. Therefore, many homeowners in the D.C. area are currently upside down on their mortgages, meaning they don't have enough equity in their homes at the current prices to sell the home.

And, even if they can afford to list the property and then sell it, the lack of inventory is affecting them as well.

Like other prospective buyers, homeowners who are looking to purchase another home are having a hard time finding a property that fits their needs. Since homeowners are struggling to find a new home that they like, they are simply choosing to remain in their current one.

So, the lack of inventory is creating a vicious cycle where no one wants to actually list their home for sale. But for those who do, economists say they can expect the properties to move quickly and to sell for prices well above what they would have gotten at this same time last year!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Do You Find the Best Realtor to Sell Your Home?

daniel@realtypin.com Daniel Torelli — Thu, 21 Feb 2013 15:29:53 GMT

How Do You Find the Best Realtor to Sell Your Home? - Finding the right realtor is essential when it comes time to sell your home. Since your home is most likely the largest and most important asset you have, it’s crucial to find the perfect person to ensure that you sell your home at the right price, in a reasonable amount of time. By asking the right questions, you make sure you find an experienced and qualified realtor who’s going to be passionate about you and your home. But how do you actually find people to ask those questions TO? Begin by asking for referrals from friends and family. That way you know you are getting an honest opinion about how well the realtor did by someone you know and trust. Do some research online, so that you can maximize your time. Then, attend some open houses. That way, you can interact with the realtor and see how they actually work. No matter what you see, it’s safe to assume you can expect that level of assertiveness and professionalism when it comes to your own home. Once you have narrowed down the search to a few potentials, take some time to interview them to find out which one is perfect for you. Just be sure to ask these 6 questions:

1. “Is being a realtor your full-time job?”
You may find that some realtors are only doing this on the side for extra money! You may not want to automatically eliminate someone who isn’t a realtor full-time, but you may want to be wary about how much time and energy they are willing to put into selling your home. Make sure you still see a passion and commitment should realty only be their part-time gig.

2. “How often can I expect to hear from you?”
No one wants a realtor that lists their home and then disappears until the first offer arrives. Conversely, you may not want to hear from your realtor too much. Make sure the realtor knows your expectations when it comes to communication and is willing to touch base with you as often or as little as you think is necessary.

3. “How long have you been selling homes?”
Realty skills are mastered through experience. Although someone new to realty may have the passion and desire to achieve results, it’s hard to replace on-the-job experience with anything else. Realtors with years of experience won’t be caught off guard if there is a curveball thrown during the sale of your home.

4. “How do you plan on marketing my home?”
Where will your home be listed? How often will there be open houses? What types of marketing collateral can you expect? These are all important questions so you aren’t surprised or underwhelmed with how the realtor markets your home.

5. “Can you provide references? “
Even if you received the name of a realtor from a friend or family member, always ask for a list of references and follow up with them. If the realtor is unwilling to provide a list of people who have been happy with their services, it’s very unlikely they are reputable and you should most likely continue your search elsewhere.

6. “What is your average list to sell ratio?”
A great realtor will know this number by heart! A list to sell ratio refers to the price the house was listed versus the price the house sold. This number is important because it shows you the percentage you can also expect to receive based on the list price the realtor suggests.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Is a Security System the Best Home Renovation?

daniel@realtypin.com Daniel Torelli — Wed, 20 Feb 2013 17:33:27 GMT

Is a Security System the Best Home Renovation? - When people think of adding value to their home, they typically think about an updated kitchen or a new bathroom. Although it’s not the first renovation project that most people consider, a home security system is a great way to feel safe in your home and to add value should you decide to eventually sell your home.

The FBI recently reported that break-ins are the number one threat against homes, with a burglary occurring in the U.S. every 13 seconds! However, a home with an installed security system is 60% less likely to be burgled than a home without one.

There are many additional benefits to adding a security system to your home. Many of today’s security systems have extra features that could save you money on your utility bills and on other problems that can occur in your home. For example, many security systems offer dimming features and offsite thermostat controls that can allow you to control your energy output with the touch of a button – even when you’re not home. Some security systems also offer emergency sensors for your home or basement that will signal an early alert against flooding, fires, or electrical problems.

Some of these emergency systems even have early warning systems against natural disasters such as tornadoes. During a time when every second counts, having an early alert system could help you protect your home and your family!

Plus, many insurance companies offer discounts on homeowner’s insurance if you’ve got a security system. These discounts can range anywhere from 15% to 30% (depending on your insurance company and what your specific security system can do). Not only will you get to save some serious cash in the meantime, this discount could be a major selling point for the next person buying your home!

And speaking of a future buyer, adding a security system to your home – as well as making a few other small security renovations – can increase the value of your home by thousands of dollars on a future sale.

Like what?

- Take some time to trim down overgrown bushes and trees. Not only will it improve the façade of your home, it will prevent places for burglars to hide!

- Install new heavy-duty dead bolts. In addition to making your doors sturdier, potential buyers will see these improvements and will instantly gain a greater sense of security. They’ll be able to visualize feeling safe and secure in your home should it become their next home!

Should you decide to make a home security system your next renovation project, it’s important not to go overboard. It’s highly unlikely you will see any return if you install a top-of-the-line $15,000 system in your home.

Plus, going too far with your home security updates can be a turn-off to buyers and actually decrease the value of your home. If you have a huge security system in a small home, buyers may be distracted by the lights and wires and move on to a home that is more appropriately enforced. Even with the safety and security of an advanced system, no one wants to feel like they are living in Fort Knox!

If you are considering a new renovation project, a home security system may not be as glamorous as some other projects, but it will provide you and your family safety, security, and added value as soon as it’s activated!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Real Estate Investing: Jacksonville

daniel@realtypin.com Daniel Torelli — Wed, 20 Feb 2013 17:31:52 GMT

Has Jacksonville's Housing Market Gone to Investors? - Prospective buyers in the Jacksonville area have seen their local housing market go through a complete transition in just six months’ time. Last summer, this northern Florida city was definitely a buyer's market, but now there's a shortage of inventory – making it more of a seller’s market!

Why the drastic change?

The simple answer is increased competition – and not just from other “regular” buyers hoping to purchase a home. Instead, similar to what we’ve seen a few hours to the south in Miami, investment firms looking to take advantage of the real estate market here have swept in and purchased thousands of homes in the metropolitan Jacksonville area over the last few months.

For now, these investors are renting their new houses out, but the ultimate goal is to make a significant profit by selling these properties when they are worth more money in the future. Other plans include renovating the homes, then leasing them long-term.

Just how involved have investors become in this city, you ask? Perhaps more than you think!

American Home, an investment firm based in Malibu, California, is among the most active firms right now. One television station located in Jacksonville found 28 pages of transactions involving that company alone in Duval County court records! However, that doesn’t include the hundreds of pages of court documents involving other investment firms making similar purchases.

So, what does this mean for the local housing market?

On one hand, the investment groups are helping things recover in Florida’s largest city – a good thing, considering that the Sunshine State has been one of the slowest to recover in the country. Experts say they are revitalizing some communities because many of the homes they've purchased, and are now renting, have been vacant for long periods of time after the housing market's collapse in 2008. That raises the property value of those homes and the surrounding ones in the same neighborhood.

Higher demand causes bidding wars, so like many other cities across the country where investors are now involved in the real estate market, home prices in the Jacksonville area continue to rise. That's great news for sellers, but as you can imagine, prospective buyers don't like the battles, especially since they are usually on the losing end.

“Traditional” buyers, meaning those people who want to buy a home as their primary residence and not as an investment property, are losing out in the bidding wars because the investors have a lethal weapon – cash. Most “traditional” buyers usually have to take out a home loan, so while they're going through process of applying for a mortgage, the investors are swooping in and making cash-only purchases.

So, this situation is obviously frustrating for buyers here, but what makes matters worse is that the investors in Jacksonville don't seem to be in a hurry to re-sell the properties. They know that owning real estate in Florida has always been a hot commodity, so they're willing to wait until the housing market makes a full recovery before re-listing the homes.

So, instead of making quick renovations and flipping the homes, these investors are deciding to rent them out. That means many prospective buyers who had hoped to purchase a home now have to rent one, and it may be owned by the investor that beat them in a bidding war for another property!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

More Americans Paying Their Mortgages on Time

daniel@realtypin.com Daniel Torelli — Tue, 19 Feb 2013 15:53:28 GMT

More Americans Paying Their Mortgages on Time - It’s a story you’ve heard countless times before – when the economy collapsed in 2008, the housing market did, too. Millions of Americans were laid off from their jobs and could no longer make their monthly home loan payments. It led to a record number of defaulted mortgages, foreclosures, and short sales. By the fourth quarter of 2009, nearly 7% of all mortgages nationwide were considered delinquent, meaning the homeowners were two or more months behind on their payments.

It’s a sad story, but according to recent statistics, borrowers are now doing a much better job of paying their mortgages on time. In fact, according to the credit reporting agency TransUnion, by the 4th quarter of 2012, only 5.19% of U.S. mortgages were delinquent – the lowest that number has been in four years.

So what can be credited for the turnaround?

Analysts say there are three things – the economy, the housing market, and time!

As the economy continues to recover, fewer Americans are losing their jobs. In fact, not only have the mass layoffs stopped, but some companies have actually started expanding their workforce. Job security has led to increased consumer confidence, prompting more buyers to purchase a new home.

The rebound in home sales and rising home prices are not only restoring confidence in the housing market, but it also provides some security for homeowners if they lose their jobs, get their hours cut back at work, or have to deal with some other unforeseen issue and suddenly can’t pay their mortgage.

But because the housing market is still recovering, the Federal Reserve has kept interest rates near record lows. That not only makes it easier for someone wanting to purchase a home to afford the payments, but has also allowed recently laid-off homeowners to refinance their mortgage or sell the home if they get behind on their mortgage.

The result? Fewer homeowners defaulting on their loans to the point where it's considered delinquent, or worse, losing their homes.

According to the TransUnion report, time has also played a part in the late-payment rate dropping in recent months. Mortgages given out in 2008 or earlier make up 60% of all of the home loans nationwide, and 90% of the nation’s delinquent mortgages are from the same time frame.

But after the housing market collapsed, lenders became stricter with their guidelines so it became harder for lower income Americans to get approval for a home loan. Therefore, most loans taken out since 2009 were given to borrowers that banks were confident would remain up-to-date on their payments. Also, most of the homes that were seized by banks as foreclosures and short sales have already been resold, so they no longer count as delinquent mortgage homes.

Economists at TransUnion say the 5.19% could actually be lower if the states that require a judicial process for foreclosures would get cases through the court system faster. In those states, some homes have been vacant for 3 years, but lenders are still waiting on paperwork from the courts saying the foreclosures are official.

Even at a 4-year low, the mortgage delinquency rate is still well above the 1-to-2% average historical range, indicating that many homeowners are still struggling to make their payments. But exactly how many of those delinquent homeowners actually still own the home, and how many have already vacated the property – but have yet to finish the foreclosure process – is unclear.

Either way, economists at TransUnion expect the national mortgage delinquency rate to continue to drop through the first quarter of this year, but say it will likely remain above 5%. That’s still higher than it should be, but it’s definitely a step in the right direction!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Top Mistakes Home Buyers Make

daniel@realtypin.com Daniel Torelli — Tue, 19 Feb 2013 15:51:58 GMT

The Top 5 Mistakes Home Buyers Make - Buying a new home is an exciting and sometimes stressful time. But since it’s one of the biggest purchases you will make in your entire life, it’s something you need to do very carefully! There are many things you need to consider, but most importantly, make sure you don’t make one of these 5 common mistakes:

1. Starting your search at the high end of your price range
One of the biggest mistakes buyers make is setting a budget and then automatically looking for homes at the high end of it. Although a higher price doesn’t always mean a better home or a more perfect home for you, higher price tags typically come with better amenities. But by beginning your search at the low end of your budget, you could potentially find a home you love and save yourself some money. Your perspective changes when you see homes that are pricier and have better amenities, so it’s always important to start with a clean slate. If you can’t find a home you love in the lower end, then you can start checking out more expensive homes – not the other way around!

2. Becoming emotionally attached to a home out of your budget
It’s pretty typical to look at homes out of your price range, telling yourself you are “just looking”. But window shopping becomes a slippery slope as you head to the open house and then find yourself in love. When you become emotionally attached to a house out of your price range, you begin imagining yourself in the home and what your life would be like there. You imagine yourself soaking in the deep tub and taking advantages of the other amenities in the home and then next thing you know, you suddenly can’t live without it! Once you form that attachment, you begin trying to justify the cost of the home and could even end up buying something you can’t afford. One way or another, it will end in heartache. Either you are living in a home you really can’t afford, or you have to walk away from your dream home. It’s just not a path you want to go down.

3. Justifying or ignoring flaws
You find a house and it’s almost perfect. There may be one or two small things you don’t like about the house, but you decide you will learn to adapt or ignore them. Humans are very good at making justifications when we are in a hurry or really want something. However, a big mistake buyers make is justifying flaws. Be realistic about a home. Are you really just tired of looking? You may think you can live with a small kitchen or only one bathroom, but it will most likely irritate you or make you resentful in the long run.

4. Rushing to make a purchase
When you are in a hurry, you typically will think a little less clearly about what you can tolerate, what your needs are, and what you can afford. Even if you are forced into a situation where you need to make a purchase quickly (like moving to a new city for a new job, for example), it’s important to really take the time to find something that’s right for you in the long run – not just right for you right now. It’s just too big of an investment to make a rushed decision!

5. Getting into a bidding war
Humans are competitive beings. The thought of winning sometimes clouds our judgment and makes us do irrational things. If you find yourself in a bidding war for a home, set your top price and stick to it no matter what. Realize that walking away will lead to something better and more affordable for you without having to push your limits.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Reasons to Love Title Insurance

daniel@realtypin.com Daniel Torelli — Tue, 19 Feb 2013 15:48:27 GMT

The Top 4 Reasons to Love Title Insurance - If you plan on using a mortgage to purchase a new home, be prepared to buy title insurance. Your lender will make you buy it because it covers any issues regarding the title of your house for the life of your mortgage. After all, there are many issues that could arise from the title of your home because titles are passed from one person to the next – so you never know if there may have been a forgery along the way or if there are property or estate taxes that are still owed on the home. OK, so you have to buy it, but why should you LOVE it?

1. Title insurance covers up to the cost of your mortgage
It’s relatively inexpensive to purchase, and if something does go wrong, you’ll be totally protected for as much as your mortgage is worth.

2. It pre-dates your home purchase
Title insurance is different than other types of insurance, because it protects the lender against anything that occurred before the loan was issued. In the case of health insurance, for example, you are protected against any illness that arises after the policy was issued. But for title insurance, you are only protected against things that happened before the policy was issued. Should there be any liens placed on your home, for example, you will be responsible for having them removed before selling your home.

3. You get all kinds of research with it
In exchange for your money, title companies spend a lot of time thoroughly researching your home and any issues that may be associated with it. You can’t even imagine some of the issues that might get turn up due to the length of your title! As a result, title insurance can save you thousands of dollars in potential losses. That peace of mind alone may be well worth the cost!

4. You don’t have to shop around for it
When you buy “normal” insurance – like health insurance or car insurance – you have to search for a reputable company before you can even get the policy. That’s not the case here. While you have every right to search for a company on your own, most title insurance companies direct their marketing efforts toward the lenders themselves, so you can simply go with your lender’s recommendations when making this purchase. (Your realtor can tell you if you’re better off going through your lender or if you should seek out a company on your own.)

As an added benefit, some states have set pricing limits, so if you do decide to go it alone, you may not even have to compare rates!

Bottom line – some people fall so in love with the security of title insurance that they choose to continue their coverage long past the end of their mortgage payments. Some people choose to keep it for generations! Just remember – you will need to purchase new title insurance if you ever refinance your home, even if you are refinancing with the same lender. Although this may seem unnecessary to you, lenders need to make sure that there haven’t been any changes to your home, such as a lien that has been placed on your home after you purchased your original title insurance. You may feel as though title insurance is an unnecessary or an annoying expense right now, but it can be well worth it. Eventually, you might even fall in love with the purchase!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How Will a Blizzard Affect the Housing Market?

daniel@realtypin.com Daniel Torelli — Mon, 18 Feb 2013 22:25:54 GMT

How Will a Blizzard Affect the Housing Market? - Homeowners in the Northeast are trying to get back to their normal lives after a record-breaking blizzard dumped several feet of snow across the region last week. At least 11 deaths in the U.S. were blamed on “Nemo”, President Barack Obama has declared a state of emergency for Connecticut, and utility companies from Massachusetts to New York say it could be days before all of their customers have power again.

Eventually, though, the snow will melt, all of the driveways and streets will be cleared, and everyone will have electricity in their homes – but that doesn't necessarily mean that the effects of this storm will no longer be felt! Specifically, what affect will this blizzard have on the housing market?

Unfortunately, we won't know the full impact until a few months down the road, but realtors say it could be worse than you think, for several reasons.

First, the storm hit a heavily-populated section of the country, so a drop-off in regional home sales could affect the national average when February’s sales numbers are calculated. Also, many of the individuals whose homes were hit by this snowstorm were also victims of Hurricane Sandy last fall. Some homeowners had to make repairs to their homes after the hurricane, and may have to make additional repairs to their properties once again.

Or, you could look at it from the other side of the coin. Owners who didn’t suffer any damage during Sandy weren't so lucky this time around. Either way, it will delay some homes from hitting the market and, ultimately, from being sold.

In the more immediate future, though, the concern is mobility. The longer that roads and highways remain covered with snow and ice, the longer it will be before prospective buyers can venture out to go house hunting. Also, sellers with homes currently on the market must worry about the safety of their driveways and sidewalks for prospective buyers taking tours of their homes.

Experts say homeowners hoping to sell should be patient during the cleanup and aftermath of the storm, and they should expect less-interested parties wanting to view their home for the next few weeks.

However, a smart seller knows that they should be prepared at all times, so if you're trying to sell your home and live in the region affected by the storm, make sure that you shovel and de-ice your driveway and walkway leading to the front door. After all, you'd hate to scare off a prospective buyer simply because they don't think it would be safe to try and check out your home!

Also, make sure that you have the heat running, or build a fire if your home has a fireplace. Remember, you always want your home to feel inviting, but this is especially true for someone who is coming in from the snow!

Ultimately, patience is key when selling a home after a blizzard. If repairs need to be made, don't rush to get them complete. Make sure that any and all damage is fixed before listing the home.

Sales in the Northeast will likely drop off in the months to come, so homeowners should anticipate the process taking longer than usual, but eventually, if your home is priced correctly, it will sell under any circumstances – even after a snowstorm.

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Judicial vs. Non-Judicial Foreclosures – How Do They Affect You?

daniel@realtypin.com Daniel Torelli — Mon, 18 Feb 2013 22:24:09 GMT

Judicial vs. Non-Judicial Foreclosures – How Do They Affect You? - If you’re familiar with the real estate industry, there's a good chance you know what a foreclosure is. But what you may not realize is that there are two types of foreclosures, and both can have a big impact on how quickly inventory is cleared out in a specific housing market.

Some states have a judicial foreclosure process – meaning that after a bank seizes a property from a delinquent borrower, it must go through a series of lengthy court proceedings before the home can be resold to a new homeowner. On the other hand, states with a non-judicial foreclosure process allow banks to resell the distressed property without ever having to go to court.

The judicial process was designed to protect homeowners. These court proceedings are in place to make sure that lenders have followed the law when foreclosing on a home, but it has actually delayed the housing market's recovery in those states.

How much so? Take a look at these statistics:

Among homes that were foreclosed on during the third quarter of 2012, the national average was 382 days to complete the foreclosure process. For states with a judicial process, that average was closer to 500 days, and in New York and Florida, some foreclosures have taken longer than 3 years to clear because of the backlog of these types of cases at the courthouse!

The end result? States with a judicial process are taking longer to recover overall than their non-judicial counterparts.

Here’s why:

When a lot of foreclosures occur in one specific area, the local housing market is flooded with inventory. This leads to a higher supply of homes than the demand for them, so prices drop off significantly.

But that’s only temporary.

When the prices drop, investors take notice of the opportunity to purchase several properties well below their market value, and typically, they come in and buy most of the foreclosures with hopes of reselling them once the market recovers. This leads to a lack of inventory, because prospective buyers looking to purchase a home as their primary residence have to outbid each other and the investors for homes.

The competition leads to bidding wars, which drives prices back up, and the housing market begins to recover.

In areas where lenders don't have to go to court, those foreclosed homes have already hit the market, investors have already come in, and this process has already begun. In many judicial states, we’re still waiting for this process to begin!

And, remember, one factor that realtors use to determine the health of a housing market is the number of months it would take to sell all of the available homes at the current sales rate. They consider a market with a six month supply as average, and in many states with a non-judicial foreclosure process, the rate is only 1-4 months. Because of the competition, homes are literally being sold only days after they are listed in these markets!

States like Arizona, Colorado, and California all have a non-judicial foreclosure process, and metropolitan areas within those states – like Phoenix, Denver, San Francisco, and San Diego – have all seen home prices surge 10-20% in the last year alone.

Meanwhile, New York, New Jersey, Illinois, and Florida have only experienced moderate increases in home prices because many of the foreclosures in these states are still navigating their way through the court process.

So, as you can see, the foreclosure process in your state can have a significant impact on how fast homes sell and how quickly the housing market recovers –even if your specific property isn’t (and never has been) a foreclosure!

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Homebuyer Grants

daniel@realtypin.com Daniel Torelli — Mon, 18 Feb 2013 22:22:01 GMT

The Ins and Outs of First Time Homebuyer Grants - Buying your first home can be stressful, costly, and confusing. The simple fact that you've never done it before can lead to anxiety about how you're going to afford the down payment, mortgage, and closing costs.

But what many first-time homebuyers don't realize is that there are government agencies that offer grants and tax breaks to help them out. By taking a few minutes to do some research, and educating yourself about these programs, you may be able overcome many of the challenges of buying a home for the first time.

Luckily for you, we've already done some of the legwork for, so below are some grants, programs, and tax breaks that we believe you should consider. Obviously, each program listed has its own guidelines that determine who is eligible and who isn't, so when you ask the appropriate parties about these programs, also be sure to ask about any specific age or income restrictions.

So, let’s get started!

One option for low-income households is a homeownership voucher from the U.S. Department of Housing and Urban Development (HUD). These monthly vouchers are designed to help first-time homeowners pay their mortgage and other home ownership-related issues and bills. You can apply for these vouchers at your local Public Housing Agency, but not all of them participate in the HUD program. Luckily, you can check the list of participating PHAs with just a few clicks of your mouse, by logging onto HUD's website (www.hud.gov). The website also gives detailed information about the requirements so you can determine if you qualify!

If you think you can afford the monthly mortgage payment on the home you intend to buy – but are worried about how you're going to pay the down payment and closing costs – perhaps you should consider contacting your state's Housing Finance Agency about their Down Payment Assistance Program.

These down payment assistance grants provide first-time homebuyers with a percentage of their down payment and closings costs based on the property's buying price. The percentage of help that they give varies from state-to-state, but every little bit helps.

One final avenue you might want to pursue is a mortgage credit certificate program. These are usually provided by either your local government or state housing finance agency. This program gives eligible first-time buyers a tax credit for their annual mortgage interest (sometimes as high as 15%!). By providing enrollees with a dollar-to-dollar reduction of their tax liability, it makes homeownership more affordable for individuals who otherwise may not be able to afford their own home.

The best part about a mortgage credit certificate program is that you receive the assistance, plus you're still eligible to claim the remaining percentage of your mortgage interest tax deduction like all other homeowners.

Your lender will know about all of these programs, and perhaps others, so when you meet with them about your loan application, ask for their guidance or recommendations regarding any assistance programs they think you might qualify for. They’ll also have the benefit of knowing about your exact financial situation, so they might be able to point you towards other programs that meet your needs even better.

Remember, you shouldn't feel ashamed about asking for assistance. After all, that's why these programs are there, to help those who need it!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Warranty Insurance

daniel@realtypin.com Daniel Torelli — Sun, 17 Feb 2013 16:52:36 GMT

The Top 4 Reasons to Get Home Warranty Insurance - If you're in the process of buying or selling a home, you might want to consider getting home warranty insurance. These insurance plans weren't always commonplace in real estate transactions, but they have become very popular in recent years. In fact, the plans are almost standard in California, where 8 of 10 home sold last year were covered by this type of insurance.

Home warranty insurance is beneficial to both the seller and the buyer, and it can eliminate headaches down the road for both parties if something unexpected happens to the home after the sale is complete. Of course, it is an extra expense, but here are the top 4 reasons we think you should consider a home warranty insurance plan:

1. If something happens, you're covered
It doesn’t get any better than that, right?! The peace of mind alone can be worth the money you spend on one of these insurance plans! A home warranty plan is essentially a service contract that covers the major systems and built-in appliances of the home. That means the plumbing, heating, electrical, and water heater are all included. So, if something goes wrong shortly after the sale, the repairs are covered by the insurance policy. Sellers don't have to worry about after-the-sale disputes, and buyers don't have to scramble to find the money if a repair needs to be made. So, either way you look at it, neither the homeowner nor home buyer is stuck with a huge bill to cover the repair costs.

2. They're relatively cheap
Regardless who ends up footing the bill, these insurance plans won't break the bank. A standard one-year home warranty insurance plan runs about $275. If you want additional coverage, you can add a washer and dryer to the plan for roughly $75. Adding central air conditioning is typically an extra $50, and limited roof coverage is only $100. Considering what you'd pay to repair or replace those appliances and home features, that's dirt cheap! You can even add on pool and spa equipment and garage door openers. In fact, these insurance plans can be written to include whatever items both parties agree to, and they are still affordable even if you make a bunch of custom additions.

3. They can be renewed
The standard home warranty insurance plan at the time of purchase runs for one year, but a buyer can extend the coverage for a renewal fee. Many homeowners like the peace of mind that comes with these policies, and therefore, continue to renew them for multiple years after they've purchased the home.

4. No inspection is required
If the protection plan is ordered at the time of purchase, typically a home inspection is not required. That alone may pay for the entire year’s worth of coverage! The only exception to that rule is if a seller wants to order a home warranty insurance plan during the listing period. If that's the case, an inspection may be required to prevent fraud, but once that is complete, a homeowner can protect the home while trying to sell it for about a dollar a day.

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Vacation Home Mortgages

daniel@realtypin.com Daniel Torelli — Sat, 16 Feb 2013 15:23:37 GMT

The Top 4 Things to Know About Vacation Home Mortgages - Affluent buyers across the country are taking advantage of the extremely low mortgage rates by purchasing vacation homes in luxurious communities and exotic locales. After all, the idea of owning an additional home at the beach or in the mountains is appealing to almost everyone, but not everyone can afford it! In fact, even if you have pristine credit and lot of cash, you may not get approved for a vacation home mortgage these days. Why not?

Lenders are stricter with their underwriting guidelines than they've ever been before, and that's just for a “regular” home. Trying to get approved for a vacation home mortgage is even harder. So, if you’re trying to get a vacation home mortgage, you have to know these 4 things:

1. Be prepared to prove that you can afford it
Most vacation homes cost more than a primary residence simply because of their location, so lenders are stricter when it comes to credit scores and debt-to-income ratios. How much so? Many lenders require a credit score over 720, which is 20 points higher than the “primary” home loan minimum. As for debt-to-income ratios, the lender is likely to look at your existing debt, the mortgage on your primary residence, and its property taxes. Then, they'll add in the mortgage for your potential vacation home and the property taxes associated with it. If the grand total equals more than 45% of your income level, it's unlikely they'll approve your loan application.

2. Location matters
Even if you meet the lender's credit score and debt-to-income ratio requirements, they may still deny your request for a vacation home mortgage simply because of its location. Vacation destinations were among the hardest property values hit after the housing market's collapse, and some have yet to fully recover. So, if the lender thinks that the prices where the home is located are unstable or will continue to drop, they are less likely to approve your loan application. Also, if homeowners of other properties in the same community are having a hard time selling their homes, or if multiple members of the local homeowners association are behind on dues, it could scare your lender enough to deny your request for a vacation home loan.

3. Be prepared to pay cash
Because vacation homes cost more, the mortgages associated with the properties are often very expensive and have higher interest rates than “traditional” home mortgages. These types of loans are called “jumbo” mortgages and are very popular right now, but new mortgage rules recently unveiled by the Consumer Financial Protection Bureau that go into effect in 2014 could create hurdles that might signal the end for jumbo mortgages. Plus, lenders are skeptical of approving loans for a home in another state where they don't do business. Legislation that went into effect in 2010 says if a lender gives a borrower a good-faith estimate on closing costs – which can vary from state to state – but those actual fees end up being more than the estimate, the bank can't charge the borrower the difference. Bottom line – you might be better off paying cash for the home if you’ve got it!

4. Go national, not local
If you plan on borrowing a large portion of the home's cost, experts say you should contact national banks and mortgage brokers, who have access to larger number of lenders than a community bank or local credit union. After all, a “jumbo” mortgage is called jumbo for a reason! In most places, if your mortgage is worth more than $417,000 (or, more than $625,501 in some of the more expensive areas of the country), it qualifies as a jumbo mortgage. That's some serious money, and some local banks may be apprehensive to lend out that kind of money.

One final thing to remember – some lenders will approve a mortgage of this size, but will require a much larger down payment (like 30% or even 60% of the home's value, instead of 10% or 20%). But once you jump through a few extra hoops, you’ll have a great home to relax and have fun!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Detroit Real Estate

daniel@realtypin.com Daniel Torelli — Fri, 15 Feb 2013 15:52:24 GMT

What's Going On With Detroit Real Estate? - When the economy crashed, Detroit struggled even more than most cities. After all, Detroit didn’t just have to deal with the recession. It also had to deal with the crash of the auto industry, skyrocketing unemployment, and a glut of underwater mortgages. But now things are starting to turn the corner – the biggest thing being Detroit’s housing market. In fact, Detroit saw a 12% jump in home prices in November, which was the 3rd-highest increase in the nation. Experts say this is no fluke; instead, they’re calling for continued growth over the next few years.
So far, the numbers are bearing that prediction out. In January 2013, the median sales price was 26% higher than it was in January 2012. The number of home sales was nearly 11% higher, too. In fact, each county in the Detroit metro has seen its sales go up this year. And although it’s not growing as dramatically as some places, Detroit’s housing market is heading in the right direction. Plus, the increase in sale prices could encourage more people to sell.

Hopefully the increase in value of homes will help to spark the housing market in Detroit. Part of the problem with the current housing market is that because so many people have underwater mortgages, it does not make sense financially to sell and take such a large financial hit. But with the limited amount of homes for sale, the city hopes to see a continuing trend of price growth fueled by this low demand, which in turn will encourage more people to sell.

The increase in demand coupled with the projected value increases will likely help to grow the housing market. As soon as people who may have been reluctant to sell in the past see the value increase and bidding wars on available homes, they will be more willing to put their house on the market where they may have been hesitant in the past.

There has also been significant improvement for higher-end homes – with sales of homes valued at over a million dollars likely to jump as high as 60%. Several industries, such as the energy market and the financial markets, have ignited an influx of wealthy buyers moving into the area and purchasing these higher-end homes.

Although these improvements are finally positive signs for a city that has desperately needed it, this city still has a long way to go. The Detroit News recently provided a shocking example of how far this city has plunged by talking about a $429,000 home that was only on the market for seven days before receiving multiple offers. While that is a positive sign for the market, the unfortunate side is that the home would have sold for an estimated $700,000 before the economy crashed.

Detroit’s housing market has lots of strides to make, but this latest news is definitely an improvement and should be considered a major step forward. Should the current trends stick around (and experts say there’s no reason to believe that they won’t), the future here in the Motor City could be bright!

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How to Get a Mortgage with No Money Down

daniel@realtypin.com Daniel Torelli — Fri, 15 Feb 2013 15:50:38 GMT

Is It Possible to Get a Mortgage with No Money Down? - One of the main reasons why the housing bubble burst was that many prospective buyers were approved for mortgages that they couldn't afford and didn’t have to put any money down for them. In fact, subprime lending led to an unprecedented amount of foreclosures and short sales around the country.

So, after the housing market's collapse, lenders became much stricter with their policies and became much pickier about who they approved for a home loan. Over the last few years, it has become almost impossible to get a mortgage without a significant down payment. Most private lenders require at least 10% down, but prefer a 20% down payment.

But now, are banks back to writing loans without any down payment?

So why would a lender agree to a mortgage with 100% financing when they know that these types of loans are partially to blame for the housing market's bust a few years ago? Because they say they're being smarter about who they approve for these types of loans.

During the housing market's boom, no money down meant exactly that – a borrower could come in and receive a loan without putting any cash on the table. That became the popular choice among lower income Americans who wanted to own a home, but didn't have the income to make a down payment.

Now, 100% mortgages are only available to borrowers with significant assets. These types of loans typically require two different types of collateral – the home itself and a portion of the borrower's investment portfolio. That way, if the borrower defaults on the loan, they lose part of their assets, in addition to their home. Because their investments are at risk, the borrower is far less likely to get behind on their mortgage.

In most scenarios, the lender approves the loan for 60-80% of the home's value, with the remaining portion secured by investments. The assets they use to qualify for the mortgage get to remain fully invested, earning returns like all of the other “traditional” assets they have. So, as long as they make their monthly mortgage payment, the borrower's long-term investment goals aren't affected one bit. But, once the borrower defaults on the loan, his assets get transferred to the bank.

Lenders say these types of mortgages only account for a small percentage of all home loans, but requests for 100% financed mortgages are on the rise.

Why? There are several reasons.

These affluent buyers can obviously afford to make the traditional down payment, but are choosing not to because this option allows them to purchase the home without making a cash withdrawal from an interest-earning account.

And, because the stock market is gaining while interest rates remain near all-time loans, some borrowers have discovered that the return on their investments is bigger than the rate they are paying on their home mortgage – meaning the money they’re making on their investments is paying for the interest on their mortgage!

Another incentive to go this route is that these home loans provide several tax benefits. Since borrowers don’t have to liquidate their investment portfolios to qualify for a mortgage, they can avoid paying the capital gains tax. And, depending on the size of the loan, they can still take advantage of the mortgage interest deduction. So, they get double the tax perks!

There’s also less red tape to get caught up with. Since the banks view lending to this type of clientele as low risk, many lenders are approving the loan applications relatively easily.

So, is it possible to get a mortgage with no money down? Yes – just not in the way you might have thought when you first started reading this article!

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Orange County’s Housing Recovery

daniel@realtypin.com Daniel Torelli — Thu, 14 Feb 2013 15:57:45 GMT

Orange County’s Housing Recovery Being Fueled by Cash - As the housing market heads forward on the road to recovery, Orange County is paving the way thanks to all of its cash transactions. In fact, the current number of cash purchases for houses in Orange County even exceeds the boom year of 2005! Specifically, one-third of the homes purchased in Orange County last year were bought with cash. This Southern California locale is seeing the highest number of cash payment for homes on record, and the number of cash transactions has tripled over the past two decades.

So, why is all of this cash floating around?
According to recent research, 55% of those purchasing homes with cash are either buying a vacation home or are investors who plan on renting out the home, flipping it, or using it as a vacation rental. Many of the other cash buyers include overseas buyers, empty nesters, and wealthy buyers who don’t want the hassle of getting a mortgage. Speaking of hassles, many experts believe that the stingy lending practices of mortgage companies as of late are playing a big role in the increase of cash buyers – not just in Orange County, but all over the nation. Even wealthier citizens are finding they can’t get approved for a loan because of the new approval policies of many lenders. And when it comes to getting a second mortgage, the process becomes even tougher. It has become very common for people both from the U.S. and from overseas to purchase a home in Orange County as a second home or a vacation house. Even though they have the money to buy a second home in a place as pricey as Orange County, they can’t get approved for a second mortgage.

But this cash trend isn’t all about mortgage problems.
Investors are using cash to get an edge up on “traditional” buyers. After all, cash allows for quick and easy transactions, so investors can quickly purchase a property from an owner who may not want to wait on a “traditional” buyer who has to jump through all of the hoops of getting a mortgage. Many of these investors then, in turn, will flip the property for a higher price to someone using financing to purchase the home. This has become even more common in the case of foreclosures, where investors can buy the property quickly – below market value – and then turn it over for a profit.

Purchasing a home with cash is not new, and it’s definitely not new in Orange County. Since so many people move here to enjoy the mild temperatures and the beaches, there has always been a higher-than-normal number of cash transactions in the area. However, this sharp increase may signal a strong future for the housing market!

This increase may also signal good things for the nation’s housing market as a whole. Those with cash may be leading the way to a higher increase in purchasing altogether, should the lending standards soften to allow for more mortgages.
Unfortunately, though, the cash trend could also deter people from buying the ol’ fashioned way, because they’ll have to compete with people who are paying cash. Either way, Orange County’s record-breaking cash trend has definitely sparked interest in the real estate world!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Tornado Proof Your Home!

daniel@realtypin.com Daniel Torelli — Thu, 14 Feb 2013 15:51:05 GMT

The Top 3 Home Renovations to Protect Against Tornadoes - The U.S. experienced 928 documented tornadoes in 2012. These powerful forces are infamous for causing mass destruction to anything in their paths. And with spring being prime time for tornado season, it’s important to understand what you can do to prevent as much damage as possible, should one touch down near your home. As Mother Nature has taught us well, sometimes despite our best efforts, there is nothing we can do to prevent her destruction. Sometimes tornadoes are so strong that your house can’t withstand the high winds and debris. However, there are things you can do right now to take some precautions. After all, experts say 90% of the tornadoes that do form aren’t strong enough to destroy homes that have been reinforced. Here are the top 3 home renovations that can give your home some added protection if a tornado strikes:

1. Fortify your home
This may seem vague at first, but there are specific ways to fortify your home. To protect your roof (the part of the house that typically receives the most destruction), request that your contractor use ring shank nails and hurricane clips. The nails are similar to a screw but hold better than typical nails, while the clips actually connect your roof to the rest of your home. Then, install impact-resistant windows. Even though the price of these windows is up to 30% higher than regular windows, they are designed to withstand severe weather, and are specifically designed so that the outer-pane does not shatter into the home. Although high-pressure rated garage doors cost a few hundred dollars more than regular garage doors, the large space of an attached garage can suffer significant damage during a tornado. Specifically, these large areas create added pressure and get underneath the roof. Your best bet is to ask your contractor what he or she has done to fortify their home and follow their lead. Most people do not like to spend the extra money on their home especially when they don’t get instant satisfaction from the purchase, but these added fortifications could be the difference in saving or losing your home!

2. Invest in in-home warning alerts
Many security systems offer warning systems that are more accurate than a city siren. These systems could give you a few extra minutes to prepare for a tornado – which could make a huge difference for your family! These systems are fairly inexpensive, and many people who have been through a tornado credit them for saving their lives.

3. Install a shelter
Installing a safe room or a shelter in or near your home is one of the best things you can do to ensure that your family is safe during a tornado. Many times these shelters are underground so that flying debris won’t affect you. You can purchase these shelters pre-made or build one for yourself. You may want to consider keeping a safe with important personal belongings inside it, too. Scan your important documents (like your family’s birth certificates or passports and your insurance paperwork) and keep it locked in your shelter. You may also want to consider storing important jewelry and photo albums (or anything else that’s irreplaceable) in the shelter as well. Remember, tornadoes are a force of nature that are difficult to predict and scary for anyone their path. They only offer a few minutes in the way of advance notices, but by preparing now, you can help to protect both your home and your family from potential destruction.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

The Top 5 Tips for Buying an Older Home

daniel@realtypin.com Daniel Torelli — Thu, 14 Feb 2013 15:48:07 GMT

The Top 5 Tips for Buying an Older Home - You’d be hard-pressed to find a home that has more character or charm than an older home. Builders in past decades created homes way differently than they do now, and you can see that in the quality and the construction of older homes. Unfortunately, though, that character and charm also comes with a few difficulties you wouldn’t have to face with a brand new home. Although you should always get a home inspection any time you buy a new home, home inspections are especially-crucial when you buy an older home. There could be small issues such as hand railings that need to be replaced, or there could be major issues like asbestos that would cost a lot of money to fix and could make you rethink purchasing the home altogether. So, when you’re thinking of putting in an offer on an older home, here are the top five things you’ve got to address:

1. The HVAC system
HVAC units are a large consideration when you’re purchasing an older home. Many older homes do not have central air, and it is a costly installation – assuming the house has enough space to add in the duct work required to complete the installation in the first place! It’s also important to find out when the heating system was last updated. Many heating systems in older homes were built to outlast the owners, but you may want to consider running a home energy audit, because the system may be running up your utility bills! Many older homes also have fireplaces that could be used to supplement a heater, but beware that having to restore an old chimney could cost more than you want to pay.

2. The plumbing
Oftentimes, people will replace plumbing as needed, meaning your future home could be filled with new and old parts. Unless there have been major renovations in the past, it’s pretty likely you will have to spend some time and money replacing parts of your plumbing. Many of the fixtures in old homes are also outdated and inefficient. Replacing those fixtures could add even more expense to your home purchase.

3. The roof
Much like the plumbing, the roof has probably been updated in spots when necessary. It’s highly unlikely that an older home still has its original roof, but there is probably a mixture or older and newer shingles on it. Unless there has been a brand new roof put on the home recently, you’ll have to budget for future expenses – and probably pricey ones, at that.

4. Health and safety
Contractors in the past typically were not quite as safety-conscious as those today, and there weren’t nearly as many rules or regulations to follow.
For example, many older houses have steep staircases that could be a safety hazard to children or older adults. You may also need to replace hand railings throughout the home to ensure you and your family’s safety.

5. The aesthetics
Before purchasing an older home, ensure it’s truly what you want. If you aren’t purchasing the home for its character, you may be better off purchasing a new home. It would seem silly to purchase a Victorian home and then update it beyond recognition. Try to keep the original style of the home in mind when you redecorate. On that same note, be prepared for some surprises if you are redecorating. You may find when you start stripping wallpaper that there are more than a few layers to get through, and who knows what lay underneath the carpet that hasn’t been replaced in years!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Downpayment Loans

daniel@realtypin.com Daniel Torelli — Wed, 13 Feb 2013 16:24:25 GMT

What Happens If Someone Helps You Pay Your Down Payment? - Sometimes, the down payment on a mortgage can be a roadblock between you and your dream home – especially since it is becoming more and more difficult to qualify for a loan without putting more and more money down. Typically, lenders require 10-20% of the total loan amount for a down payment (or slightly less with an FHA loan).

Savings accounts are currently the most popular way for people to finance their down payments, but gifts are not too far behind. (In fact, 24% of first time buyers used gifts or personal loans from family members to make their down payments in 2012!) Some people are fortunate enough to have family or close friends provide the down payment as a wedding present or a gift, but there are things you need to think about if you’re going to accept this gift from a family member or friend.

It would be nice if you could just accept the gift and be on your way, but unfortunately the process is not quite that simple. Lenders want to ensure that if you are receiving a gift, it is truly a gift and not a personal loan between family or friends.

After all, if you are receiving a loan for your down payment, a lender would have to include the debt you are incurring to that family member and include it against your income or assets. In some cases, that additional debt could prevent you from qualifying for your loan altogether!

To prove that the money you are receiving is a gift and not a loan, be prepared to provide your lender with a notarized letter stating the amount of the gift, the relationship between you and that family member or friend, the size of the gift, and a written statement that the money will never have to be repaid. It’s better (and makes the process easier!) if the gift is from a close family member, such as a parent or grandparent. Unfortunately, some lenders may be hard-pressed to believe you if you got all of this money from some random, distant cousin.

And, of course, the IRS will have to get involved!

If you are receiving a gift over $13,000, the IRS requires that a gift tax be paid. You can speak to an accountant about ways to avoid this tax, such as receiving separate gifts to both you and your spouse, or to consider the gift a loan. However, the latter will still be taxable.
If you are receiving the money as a loan, or labeling it a loan to avoid the gift tax, make sure the terms of the loan are documented and you have an interest rate set for repayment. The IRS requires an interest rate and considers a loan to be taxable income. They’ll also provide their own interest rate if you don’t already have one set in writing.

If you are fortunate enough to receive your down payment in the form of a gift, it does not have to be a headache. Before you speak with a mortgage lender, make sure that the gift is properly documented and, if possible, deposited into your account long before you begin the home buying process. This will help move along the process and prevent any bumps in the road between now and the day you move into your new home!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Florida Real Estate Market's Slow Recovery

daniel@realtypin.com Daniel Torelli — Wed, 13 Feb 2013 16:13:59 GMT

Why Isn't Florida's Housing Recovering Faster? - Housing markets across the country continue to see signs of improvement and recovery. In many places, home sales and selling prices are up, and inventory remains low, which is driving the prices even higher.

But in the Sunshine State, housing recovery has been much slower. With great weather and plenty of big cities to choose from, you’d think that buyers would be flocking to Florida. However, home sales here have been much slower than other places. Why? The answer is a complicated one, but it centers around distressed properties.

When the housing market collapsed in 2008, many homeowners could no longer afford their mortgages, and they lost their homes due to foreclosures or short sales. This caused the housing market in many metropolitan areas around the nation to be flooded with an inventory of homes.

Over the last year, that all changed. Investors knew that they could purchase homes for discounted prices, so they swooped and quickly bought as many properties as possible, planning to hold on to them until the housing market's condition improved. Since there were signs of improvement, there was finally light at the end of the tunnel. And because many of these investors made cash-only purchases, they were able to close on deals much quicker than prospective buyers who had to go through traditional channels to obtain home loans.

But with investors buying a majority of the homes available, prospective buyers looking to a purchase a home as their primary residence quickly realized that demand was up but supplies were limited. So, when they did found a home they wanted to buy, they became more willing to enter into a bidding war against other buyers. This trend had led to a rise in home prices across the nation.

How much so, you ask? Perhaps at a rate that is too high for such a short time period. According to a recent report, home prices rose 8% in December 2012, when compared to the previous year. Typically, home prices rise 3% to 4% a year. At their peak during the housing bubble in 2005, that figure was 12%.

But none of my Florida's four major metropolitan areas – Miami, Orlando, Tampa, or Jacksonville – have been among the top 15 performing markets on recent lists. Why? A stall in the court system is to blame. Like many other states, Florida's housing market has been driven by the sale of distressed properties in recent years. But unlike other states, Florida experienced a backlog because many of those foreclosures were severely delayed because of court proceedings.

Many banks in Florida got in trouble for “robo-signing” on foreclosures, which is an illegal practice. This led to years of negotiations, court cases, and now legal bank settlements.

Foreclosures are moving again, meaning Florida's housing markets are once again being flooded with homes at time when other cities have a lack of homes for sale. Because there are fewer homes on the market in these other cities, buyers are having to outbid each other to purchase them.

But in the Sunshine State, there's a plethora of homes available once again. With so many to choose from, and many priced well below what they are worth, the big price gains seen elsewhere aren't happening in Florida. So until those foreclosed homes are cleared out of the way – and the trends here can catch up with what the rest of the country is seeing – the housing market in the Sunshine State won’t be quite as sunny as other markets!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Housing Recovery is Contagious

daniel@realtypin.com Daniel Torelli — Wed, 13 Feb 2013 15:50:21 GMT

Housing Recovery is Contagious - This time of year there are many stomach bugs, flu viruses, and other medical ailments that are passed around from person-to-person. Nobody looks forward to being under the weather, so many Americans get the flu vaccine, wash their hands, and do whatever the can to fight off germs.

But there's one kind of fever that nobody is fighting against. It's spreading quickly and has lots of consumers excited – especially those who are looking to buy or sell a house.

It's called housing fever!

Unlike the medical field (where a fever indicates that a patient is unhealthy), when housing fever arises, it signifies that the real estate industry is taking steps towards recovery. Right now, we’re seeing classic signs of housing fever.

According to the data released last week by the National Association of Home Builders (NAHB), the housing recovery is contagious and has gone viral across the country. Of the 361 metro markets tracked by the NAHB, 259 are now listed as “improving”. That's up from 242 markets in January, so an additional 17 markets have caught housing fever in the past month alone.

How are those markets studied, though?

The NAHB index takes several factors into consideration, including employment growth, home price appreciation, and the number of single-family housing permits issued in each local market. So, according to their calculations, the number of housing markets listed as “improving” has increased for six straight months, and all 50 states now have at least one improving metro area.

“Today, the story is about how widespread the recovery has become as conditions steadily improve in markets nationwide,” said NAHB chief economist David Crowe in a news release.

What is causing housing fever to spread so quickly, and how do you know if you're local real estate industry has caught the bug?

Analysts say there are many (positive) symptoms, including increases in new and existing home sales, rising home prices, and fewer distressed properties like foreclosures and short sales on the market. If you see these symptoms in your neighborhood, you’ll know that there’s an increase in consumer confidence – meaning that there will be an increase in the number of prospective buyers that want to purchase a home.

Right now, in many parts of the country, the number of interested buyers continues to rise, but the inventory of available homes for sale continues to drop off. That's mostly because of the decline in the number of foreclosures, so many markets are now experiencing a severe lack of inventory. And that's when the principle of supply and demand kicks in.

The result? Sellers raise their prices. And, in many cities, the lack of inventory has taken those rising prices one step further – to bidding wars. That means homeowners are getting even more than they imagined for their homes. It’s a completely different scenario from the last few years, when many sellers had to reduce their asking prices several times before they could attract a willing buyer.

Mortgage interest rates continue to hover near record lows, and investors continue to purchase as many homes as possible in hopes of selling them for a profit in the future as the housing market continues to improve.

When all of this occurs, economics diagnose a market as having caught housing fever!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How to Create the Perfect Master Suite

daniel@realtypin.com Daniel Torelli — Tue, 12 Feb 2013 15:29:19 GMT

How to Create the Perfect Master Suite - Master Suites are quickly becoming a hot commodity in the real estate world. Having one can turn your bedroom into a relaxing reading room, a movie theater, a spa, or all of the above depending on your preference. Building a master suite takes a lot of time and energy, but it will add luxury to your home and your life – and it should definitely add resale value to your home!

Before you start, there is one big thing to consider – the other houses in your neighborhood. Are you already at the high end of the price range? Adding a master suite has a lot of potential for adding resale value, but you don’t want to put your house out of the market for your neighborhood. You never want to be the highest-priced home in the neighborhood, but on the other hand, you may actually find that a lot of the homes in the area already have master suites. So, as long as your plans are comparable to the rest of the area, you are ready to move forward!

If you’re actually adding on a room altogether, do it on the first floor. If you are older, you will appreciate not having to go up the stairs, and if you sell your house in the future, you won’t turn off a potential buyer that can’t or may not want to have their bedroom on the second floor. Although the final product will make any temporary inconveniences worth it, having construction done on your home can be a pain, so make sure the timing is right to keep those disruptions to a minimum! In this case, finding the right contractor is crucial. They should be able to work quickly and without turning your entire life upside down. After all, you have to live in this “construction zone” for a little while. If they can’t respect that, they’re not the contractor for you! Remember, your master suite should have all the amenities that make you and your significant other happy. The specifics will depend on your personal preferences, but here a few ideas to get you started:

1. Heated floor tiles in the bathroom
There is nothing worse than getting out of a hot shower or a long relaxing bath and putting your feet on a freezing floor. Once you have experienced heated tiles, you’ll never want to step onto anything else!

2. His and her bathroom sinks
If you have ever lived with a member of the opposite sex, you already know why this is a good idea!

3. A fireplace
There is nothing better than cozying up with your loved one on a cold winter day. Adding a fireplace to your master suite will add warmth and romance to your home.

4. An entertainment center
Putting in a flat screen TV with a DVD player can give you a place to watch movies or your favorite TV shows without having to share the remote with your kids or houseguests.

5. A wine refrigerator
Why not relax after a long day of work or after a hot bath with a glass of wine? You can even have date night with your sweetie without having to leave the bedroom!

Above all else, have fun with the design of your master suite and when you’re picking out the “extras”. This addition to your home can add lots of fun, entertainment, and relaxation for years to come!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Fannie Mae And The Housing Market's Recovery

daniel@realtypin.com Daniel Torelli — Tue, 12 Feb 2013 15:26:08 GMT

Just How Important is Fannie Mae to Housing's Recovery? - If you do a Google search about mortgages, the housing market, or real estate, chances are the articles that come up are going to include information about Fannie Mae. Many Americans know that Fannie Mae is sponsored by the government and helps to regulate the mortgage industry, but not everyone can tell you the specific role that the organization plays in the process.

So what exactly does Fannie Mae do, and – more importantly – how important is it to the housing market's recovery?

First, let's start off with a history lesson. After the Great Depression, President Franklin D. Roosevelt created a series of economic programs, known as the New Deal, in hopes of providing relief, recovery, and reform to the struggling economy. This included the creation of the Federal National Mortgage Association, commonly known as Fannie Mae, in 1938. Fannie Mae was established to provide local banks with federal money to finance home mortgages. With more money available, banks were able to issue more loans, therefore boosting home ownership.

Fannie Mae is also credited with creating the secondary mortgage market. That means they buy several mortgages, group them together, and sell the packaged loans to investors as mortgage-backed securities. This allows lenders to reinvest their assets into more lending, and reduces the industry's reliance on savings and loan associations.

Through all of these efforts, Fannie Mae has helped regulate mortgages, and it has made investing in the housing market less of a risk for investors. In other words, the mortgage industry has relied on Fannie Mae for several decades. But are they still a key player these days?

Their chief economist sure thinks so! But let’s take a look at how everything ties together.

Across the country, new and existing home sales are rising, home prices are increasing, and the number of foreclosures is declining. Just last week, the National Association of Home Builders released their latest housing market data, reporting that 70% of the 361 metro markets that they track are showing signs of recovery. Because of this, consumer confidence is up, and consequently, so is the number of prospective homebuyers who are applying for a mortgage.

As long as consumers want loans, Fannie Mae chief economist David Duncan says the agency will play a key role in the mortgage industry. By selling the low-risk mortgage-backed securities to investors, Fannie Mae increases the number and value of mortgages available to lenders. And with more money to lend, banks are more likely to approve a loan application.

Duncan says Fannie Mae also plays another crucial role in the housing market's recovery that many consumers overlook. “We ask one question that nobody else asks,” Duncan recently told Yahoo.com's Finance Daily Ticker. “Is it a good time to sell a house [because] five out of six people who buy a house have to sell one first. That’s been a steady climb month over month.”

By charting that information, and then passing it along to potential investors, Fannie Mae helps boost investor confidence in the securities they are selling. When an investor is confident that the housing market is improving, they are more likely to buy the mortgage bonds in hopes of making a profit down the road.

So it seems that Fannie Mae's chief economist may be correct in his assumptions that the agency does, in fact, still play a key role in the health of the housing market after all these years!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Buying a House Without a Mortgage?

daniel@realtypin.com Daniel Torelli — Mon, 11 Feb 2013 15:11:39 GMT

The Top 3 Alternatives to a Traditional Mortgage - There are plenty of reasons why a traditional mortgage may not be right or possible for you at this time – but that doesn’t mean that you can’t go out and buy a new home! Sure, mortgages are harder to qualify for than they were in the past. Things like a low credit score, a bankruptcy, a foreclosure, or an irregular income can all get you caught up in a sea of red tape. For whatever reason, if a traditional mortgage isn’t an option, there are plenty of other ways to finance a home. Here are our top 3:

1. Rent to own/lease to own
Sometimes, sellers offer the option of renting to own or leasing to own. This process usually consists of paying a higher rent level than market value, with a portion of the rent going toward a down payment. After a certain time period, you’ll have the option of purchasing the house from the seller.
Typically, a rent to own option allows you to walk away from the home at the end of a period without having to buy the house. Unfortunately, should you decide that house isn’t for you, you will sacrifice all of the extra money you paid! This is a good option for many people who may need a couple of years to secure bank financing. It’s also a great option if you think there is a possibility you could relocate in the future and don’t want to be tied down to a traditional mortgage.

2. Seller financing
Typically, sellers will offer this option when their home has been on the market for a long period of time, or if they need to sell the property quickly. A seller may also consider this option because they can make a profit off of the interest in the home. After you and the seller reach an agreement, a promissory note is drawn up. This promissory note includes the agreement of the principal, the interest rate, how the loan will be repaid, and what would happen should you default on the loan. Some sellers shy away from this option, because they’re suspicious as to why a buyer isn’t getting traditional financing through the bank. If you are pursuing this option, be prepared to answer some questions and ease the seller’s fears about paying the loan back.

3. Borrowing from your whole life insurance policy
If you have a whole life insurance policy, you know that it accumulates a cash value over time, in addition to earning dividends and interest. As long as you have made regular premium payments into your policy, you can borrow against the cash value of your policy. With this option, you won’t have to qualify for anything or answer anyone’s questions. However, if you don’t pay the money back, it will reduce the value of your policy. So, before considering this option, talk to your insurance agent to find out exactly how it will affect your policy, if it’s taxable, and any other ways it could potentially affect your benefits.

When you consider these different options, make sure that you do some serious homework. That way, you’ll understand every possible risk that may be associated with alternative financing opportunities. That way, you’ll be able to get the home of your dreams, without having to deal with any surprises

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

FHA Mortgages To Cost More

daniel@realtypin.com Daniel Torelli — Mon, 11 Feb 2013 15:07:36 GMT

Got an FHA Mortgage? Be Prepared to Pay More - Thanks to the housing bubble’s burst, banks are much more scared to loan money than they were a few years ago. As a result, the FHA is currently insuring more than $1 trillion worth of mortgages – putting a huge strain on the agency and, potentially, a huge strain on American taxpayers.

Right now, the FHA is operating in the red -- $34 billion in the red, to be exact! And, at the rate the housing market is going, tens of billions of dollars could be added to that total very soon. Unfortunately, it may not be long before taxpayers are told to bail out the agency, just like they did for the banks and the auto industry. In an effort to avoid a bailout, though, FHA mortgage holders are being asked to pay more – starting right now. In fact, experts say that without some sort of drastic measures, the agency that’s been in business since the Great Depression may not be able to keep going!

So, what exactly is the FHA changing?
Right now, they’re raising premiums 10 points or 0.1% on most of the new mortgages that they insure. The FHA also plans on raising the amount of the down payment required on loans for $625,000 or more. A 5% down payment will now be required, which is a 1.5% increase from before. The new plan also includes making it more difficult to qualify for the loans that they insure. Because of the high level of delinquency on current FHA-insured loans, the idea is to prevent that from happening on future loans by taking on less-risky applicants.

Who will qualify now?
The FHA is requiring tougher restrictions against new mortgages with specific requirements for anyone with a credit score less than 620. Should a lender decide to approve this applicant, they will need to write the specific reason why they are allowing this loan. These new requirements to qualify and the higher down payment requirement might be bad news especially for first time buyers. Many first time buyers turn to the FHA to secure financing. If buyers aren’t able to get financing, it could lead to further problems with the American housing market – especially since real estate experts have said that first time buyers are necessary for the market to regain strength.

What led to the FHA’s problem in the first place?
These new restrictions are based on high delinquency rates and the mortgage crisis, both of which have caused the FHA to lose significant amounts of capital. The FHA hopes to prevent any further defaults by being more stringent with approving loans. But all of these new restrictions probably aren’t enough to save the FHA without a bailout. Experts also point out that adding more restrictions goes against the entire focus of the FHA. After all, the FHA was created in order to create opportunities for buyers who weren’t able to qualify elsewhere.

With such an unstable future for the FHA, people may need to start investigating alternatives for purchasing their next home – and taxpayers may need to realize that they’ll soon be paying more to fund this agency.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

QE3 in 2013

daniel@realtypin.com Daniel Torelli — Sun, 10 Feb 2013 16:51:48 GMT

Federal Reserve Decides Not to "Pause" QE3 - As it turns out, there was no need to panic after all! Leaders at the Federal Reserve announced last week that they plan to continue their efforts to jump start the economy with their Quantitative Easing program. The announcement comes less than a month after there was speculation that the central bank was planning on “pausing” those efforts as early as late 2013.

Last year, the Fed began buying $85 million worth of mortgage-backed securities each month, in an effort to keep mortgage rates low. The Federal Reserve calls the plan Quantitative Easing, and we're currently in the third cycle of these efforts, so the most recent program is referred to as “QE3”. At the end of 2012, leaders at the Fed announced they would continue QE3 until the national unemployment rate drops below 6.5% and/or the inflation rate rises above 2.5%. At that time, analysts estimated the economy will meet those barometers in 2015, so consumers, lenders, and even government officials were expecting QE3 to continue until then.

Or, at least that was the case until minutes from the December meeting of the Federal Reserve showed that some leaders hoped to “pause” QE3 as early as late this year. During that meeting, St. Louis Federal Reserve president James Bullard said he anticipated that the unemployment rate would drop below 7% by the end of 2013, so he expressed his desire to stop the QE3 plan at that time. The speculation alone caused mortgage rates to rise.

But during their latest meeting last week, Federal Reserve leaders decided to continue their economic stimulus efforts, and announced in a statement that they're keeping their promise to purchase the mortgage-backed securities each month until the unemployment rate drops below 6.5%. The statement was approved by an 11-1 vote, with only Kansas City Federal Reserve president Esther George objecting.

Despite the speculation a few weeks ago, the announcement was widely expected – especially after the U.S. Commerce Department announced last week that the Gross Domestic Product (GDP) shrank during the fourth quarter of 2012, its first decline since 2009.

Stock markets showed little movement in reaction to the GDP report, most likely because it was widely expected that the Fed would continue to provide stimulus until the economy fully recovers. After the Fed confirmed its commitment to QE3, the stock market experienced only a slight drop-off after the Fed's statement was released. Mortgage rates also remained low after the announcement, but will eventually rise simply because higher rates are indicative of a healthy economy. For now, though, mortgage rates remain near the record lows that were set last year, and are still a fraction of where they were during the housing boom of 2006 and 2007. As the economy continues to improve, those rates will slowly but steadily inch slightly higher – but should still remain relatively low and enticing to prospective homebuyers as long as QE3 is in place.

After the unemployment rate and inflation rate goals are met, QE3 will be lifted, but by then, Federal Reserve leaders expect the economy to be strong enough to handle higher interest rates.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Home Selling Mastery

daniel@realtypin.com Daniel Torelli — Sat, 09 Feb 2013 15:49:47 GMT

How to Remove Emotions from Your Home Sale - Selling your home can be a very emotional time in your life. It can be stressful as your worry about finalizing the deal, or you might reminisce about all of the good memories you and your family have made in the home. Maybe you'll experience both of those emotions – or plenty of others – all at the same time!

While having an emotional connection to your home is a natural feeling, you should try your hardest to remove emotions from the equation when it comes time to sell. Instead, you have to approach the situation as a business deal. If you treat your home as a marketable commodity, you'll be less inclined to make an emotional decision, and more likely to make a smart financial one.

So how can you remove emotions from your home sale?

It may be easier than you think!

The first step is to de-personalize your home. This means practicing a little role reversal, and pretending you are the buyer. If you look at your home through the eyes of a prospective buyer, you may notice some improvements or repairs that need to be made. Or, you may think of a way to spruce up the home that you hadn't previously thought of.

Begin in the front yard, and walk towards the home. Does it feel inviting? Take a look at the front door, the doorknobs, the exterior walls, paint, landscaping, etc. Does the home appear as if the owners take good care of it? If the answer is “no”, then you need to make a To-Do list of exterior repairs and upgrades that need to be made. After all, if you noticed something on the outside of the home that needs to be addressed, prospective buyers will too!

After inspecting the outside of the home, and ensuring that it will create a great first impression for buyers, you need to proceed indoors and do the same exercise inside. Is the home's entry way welcoming? Has the home been properly staged so that prospective buyers can envision their belongings in it, or do your possessions clutter the rooms? Have you cleaned out the closets, garage, and attic, or are they so jam-packed that buyers can't get a good look at the amount of storage space within the home?

As you walk from room to room asking yourself all of these questions, remember to answer them honestly. If you realize that some adjustments need to be made, now is the time to do so. Remember, it's always better if you notice a problem instead of the people doing the buying, because that could be the difference between a sale and the home sitting on the market for several months with no interested buyers!

A good rule of thumb to remember is that all flat surfaces within the home need to be clutter free. That means removing all portraits, magazines, and family heirlooms so that the buyer can envision it as their home, and not just as a tour of your home.

Finally, emotions should also be removed when it comes time to price the home. If your realtor and/or appraiser think you are asking too much for the home, you might want to reconsider your asking price. This is even more important if you've already listed the home and it didn't attract the quantity of buyers you were hoping for. Remember, it's never too late to suck up your pride, and make your home the perfect place for potential buyers!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

15 Year Mortgage - Is It Right For You?

daniel@realtypin.com Daniel Torelli — Fri, 08 Feb 2013 16:52:16 GMT

Is a 15-Year Mortgage Right For You? - Throughout the years, the most popular type of home loan has always been a 30-year, fixed-rate, conventional mortgage. Most Americans have picked this mortgage over all the others because with a 30-year loan, their monthly payments remain low because of the long time frame. But now, there is another option that is gaining in popularity among homebuyers.

Statistics show that consumers are slowly starting to favor 15-year, fixed-rate mortgages over their 30-year counterparts because of how affordable these types of loans have become in recent years. In fact, according to the Mortgage Bankers Association, 15-year home loans accounted for 23% of all mortgages – new loans and refinances – issued in November 2012. That’s a 51% increase over November 2011.

Statistics from another source – tracking firm CoreLogic – show similar increases in popularity for 15-year mortgages. They report that only 8.5% of all loans issued in 2007 were for 15-year mortgages, but say that number increased to 35% of all deals negotiated in 2012. So it's evident that this type of loan is definitely becoming more popular, but is it the right choice for you? Well, experts say that depends on your income level! Mortgage rates continue to hover near all-time record lows for all types of loans, and 15-year mortgages almost always have a lower interest rate than a 30-year loan simply because you are paying the money back to the lender twice as fast.

The downside? You’ll have to make higher monthly payments. However, since interest rates are so low, many homeowners can still afford the higher overall payments of a 15-year loan. In the end, those low interest rates, combined with several other reasons, make for an offer they can’t turn down.

So, what are those other reasons?

First, you're finished paying for the home much sooner. And, because the loan is for a shorter time period, homeowners with a 15-year mortgage actually begin paying more towards the principle much sooner than their counterparts who choose a 30-year loan.

How much sooner, you ask?

According to a recent report on Aol.com, for homeowners with a 15-year mortgage, more than half of their monthly payment is already going towards the premium and not interest charges by just the second year of the loan. Typically speaking, that doesn't happen until the 11th year of a 30-year mortgage.

So, obviously, for borrowers who can afford to pay a little bit more each month, a 15-year mortgage is an attractive option. But economists warn that this type of loan isn't for everyone. If you have a clean credit report, a steady income, and can afford to make the monthly payment on a 30-year loan – but can't say the same for the pricier 15-year mortgage, it's better to go the 30-year route. After all, you'd rather keep your home and spend more time paying it off, than not be able to make your monthly payments and become delinquent on your loan simply because you wanted a better deal in the beginning. In other words, start by asking yourself, “Can I afford the 15-year mortgage?” As long as you’re OK with higher monthly payments – and can afford them – the 15-year route is an option worth considering. If not, stick with the 30-year mortgage options when discussing a loan with a lender. It really is that simple!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Remodeling Your Home Without a Contractor

daniel@realtypin.com Daniel Torelli — Fri, 08 Feb 2013 16:47:24 GMT

The Top 3 Tips for Remodeling Without a Contractor - It's generally a good idea to hire a licensed professional contractor to handle all of your major home improvements. This includes any project where someone in your household could get injured – or worse – if the handywork is not done properly. (For example, you never want to try to tackle an electrical wiring issue on your own because you could get electrocuted , and you can possibly burn down your home if you don't know what you're doing.) Contractors have connections that they've developed over their years of experience, so they know which sub-contractor is the best suited to handle the renovations you want done around your home. With that said, though, there are some home improvement repairs and renovations than you can do yourself. So, if you decide to go the do-it-yourself route and be your own contractor, here are our top tips for getting the job done right:

1. Stick to a schedule
A contractor would be there to make money. They would want to get started on the project as quickly as possible, complete it to your liking, and then move on to the next gig so they can make more money. So, if you're going to act as your own contractor, you have to think like one! Let's say you want to renovate your kitchen, and plan to have all improvements complete within a six-week time period. Make a schedule that lists how often you plan to work on the project, including the number of hours you'll work each day. If you decide that you're going to put in six hours of hard work every Saturday, don't get lazy and skip one week. And, if a sub-contractor failed to show up on a Saturday simply because he was too tired, your contractor would likely fire him and find a replacement. So, if you're going to be your own contractor, make sure that you work when the schedule says you're going to. By sticking to the schedule, you'll meet your deadline and have the project finished on time.

2. Choose your subs carefully
Inevitably, you're not going to be able to do every task by yourself, so like a contractor, you're going to need some assistance from a sub-contractor. Because contractors hire subs every day, they know who has a good reputation for doing quality work, and who they should avoid if they want a job done correctly. You don't have that luxury, but that doesn't mean you can't find the right guy for the job. Ask friends and neighbors who have renovated their home in the past if they can suggest anyone in particular. You can also ask the staff at your local home improvement store. By asking around, you'll likely hear the same name several times, and when you do, you'll know that’s who you should hire. If you choose the wrong sub-contractor, they could set you back several weeks if they make a mistake or if their work isn't up to code.

3. Be prepared to deal with roadblocks
Chances are you've developed some helpful contacts in your primary profession, and contractors are the same. Because of their years of experience, they know people who can help them out when time is of the essence. A perfect example of this is at your local permits office. People in that department know contractors personally, so chances are, he'll be able to get the necessary paperwork much quicker than you will acting as your own contractor. That doesn't mean that regulators at the permits office won't help you. We're just suggesting that you remain patient and cordial if the process takes awhile. After all, you're new to them, so it's unlikely they're going to pull any strings on your behalf like they might for a contractor who is in a bind. Roadblocks like these are going to pop up along the way, so don’t be surprised when they do – and be prepared to deal with them without getting too upset.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Philadelphia Real Estate Outlook For Spring 2013

daniel@realtypin.com Daniel Torelli — Fri, 08 Feb 2013 16:38:12 GMT

The Top 4 Reasons Why Philadelphia Real Estate Agents Are Looking Forward to Spring - Springtime symbolizes new beginnings, as flowers start to bloom, trees regain their leaves, and the dark dull colors of winter are replaced by signs of new life. But in our country's birthplace, flowers aren't the only things expected to bloom this Spring! Realtors in Philadelphia expect a surge in the local housing market in the coming months – meaning that warmer temperatures and sunnier skies aren't the only reasons they're looking forward to Spring. In fact, they have several reasons to be excited about what the future holds for the housing market in the City of Brotherly Love:

1. Sales prices are on the rise
According to recently-released data, the median sales price for a home in the Philadelphia area during the fourth quarter of 2012 was $137,450. That's a 16.1% increase from the same time period in 2011. Like other metropolitan areas, Philadelphia is starting to see consumer confidence in the housing market return, meaning more prospective buyers are now actively searching to purchase a home. The result? Steadily increasing home prices. The higher demand means sellers can charge more for their homes, essentially creating bidding wars between buyers, and that's always good news for homeowners and their realtors!

2. Listing Prices are holding steady
Oftentimes, a homeowner's listing price and the actual sale price of the home can be very different. This is especially true in a market that is flooded with distressed properties due to foreclosure and short sales. Basically what happens is that the distressed properties end up selling for prices well below what the homes are actually worth, and in an effort to compete, “normal” sellers have to drop their prices, too. In the end, the value of every home on the market is affected because no one wants their home viewed as “overpriced” by prospective buyers. In Philadelphia, the average listing price last week was $213,135. That number has stayed relatively the same throughout the Winter, which is when home sales tend to drop off. The fact that we are seeing listing prices hold steady during the real estate market's slow period means sellers are confident that they can get the price they are asking for when sales pick back up in the Spring – which is, typically, the busiest time of year for homebuyers.

3. Homes in all price ranges are selling
No matter how much your home is worth, if it's located in Philadelphia, someone may be interested in purchasing it! If you take a look at the five most popular neighborhoods for home sales in the area, both Rittenhouse Square and Manayunk make the list. That's significant when you compare the average listing price of homes in those two communities. Real estate statistics show that the average listing price in Rittenhouse Square was $1,068,422 last week, which is almost four times higher than the average listing price in Manayunk ($273,982). Because both of these neighborhoods are among the most popular with buyers, it proves that a well-maintained home in good condition will sell, regardless of its size and/or price.

4. More listings
Many homeowners are leery of listing their homes during the winter months because they know there are fewer buyers actively searching the market for a home during that time of year. When spring rolls around, many of those same homeowners decide to list their home, and experts expect even more inventory this year since sellers know that buyer confidence is on the rise.

What does this mean?
For buyers and their realtors, it means more variety to choose from, and consequently, the market starts to favor buyers. For sellers, that could be bad news, but their realtors know that a properly-priced home will sell in any housing climate, especially one that is blossoming like Philadelphia's.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Baby Boomers Want in a New Home

daniel@realtypin.com Daniel Torelli — Thu, 07 Feb 2013 16:03:14 GMT

The Top 4 Things Baby Boomers Want in a New Home - As the Baby Boomers get older, many are making plans regarding their futures. Housing is a main focus, as they must decide if they want to continue living in their current home, purchase a new one, or move into an assisted living facility. If a recent survey is any indication, Baby Boomers are definitely willing to buy. In fact, most Baby Boomers have similar home buying preferences! The National Association of Home Builders (NAHB) conducted a poll, asking Baby Boomers around the country questions about their current homes and their housing plans for the future. Below are some of their top findings – and how they’ll affect contractors’ future plans:

1. Size matters
Nearly one-third of everyone surveyed said if they had to choose between a smaller home with quality products or a larger home with fewer amenities, they'd take the smaller one. But they don't want to be cramped into a tiny space! Almost half of Baby Boomer respondents said they'd like their new home to range between 1,600 and 2,499 square feet. In fact, for most of the people surveyed, adequate living space and number of rooms is the number one factor that would influence them to purchase a new home.

2. They like the ‘burbs
Survey respondents were also asked where they would like their home to be located. They were given four choices as a response – a home in an urban setting, a close suburb near city life, an outlying suburb, or a rural location. Nearly 40% of prospective Boomer buyers said they'd choose an outlying suburb, 28% said a close suburb, 28% responded that they'd like a home in a rural location, and only 7% said they want to live in an urban setting. Simply put, Baby Boomers want to be close enough to city life so they can enjoy it when they want to, but also prefer to live far enough away where they don't have to deal with it on a day-to-day basis.

3. The easier, the better
More than one-third of all Baby Boomers polled said the number one determining factor that could influence them to buy a home is a better insulated or sealed home. That’s because a home with good insulation is easier to heat and cool during the winter and summer months, keeping electric bills low, and requires less upkeep. Speaking of upkeep, that was the third most common answer to the “what will influence you to buy a new home” question. More than one-third of all Baby Boomer respondents said ease of maintenance matters most to them.

4. Not everyone plays golf
Retirement and golf often go hand-in-hand, but according to the survey, Baby Boomers don't want to live on a golf course. In fact, seven out of every ten survey respondents replied that they did not want their new home to be in a golf course community. Compare that to the 18% that said they were indifferent, and the 12% who answered that they would find that “desirable” or “essential.” Baby Boomers may out head to the links more often once they are retired, but according to the survey, they'd rather drive to a course than live on one!

While the survey certainly doesn't take into account every Baby Boomer living in America, it does give builders some indication of the types of homes that consumers who are just past or near retirement age are looking for.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

How To Choose The Perfect Paint Color

daniel@realtypin.com Daniel Torelli — Thu, 07 Feb 2013 15:59:32 GMT

What Do Your Paint Colors Say to Buyers? - When a buyer walks into your home, first impressions mean a lot. As they wander through your halls, different paint colors will give off different meanings and can extract certain feelings. It’s important for your paint to enhance your home and not distract from it. Using neutral paint colors allows the buyer to envision the home with their personal taste, but not every home on the market is covered in neutral paint! So, what do your current colors say about you?

Let’s start with the primary Colors

- Red
Bright reds are stimulating colors and have been found to increase self-confidence. Although red is a strong color, it can be a turn off to buyers. Reds are also used in restaurants because it stimulates appetites, but you may want to rethink this color in your kitchen! That’s because too much red can be over-stimulating and make people feel anxious or agitated. Pink is a gentle, soothing color. Pinks are known to increase understanding, but they’re also associated with the female gender. So, a pink bedroom may be seen as limiting for male buyers.

- Yellow
Yellow is known for increasing focus. It may stimulate conversations, enhance intelligence, and increase brain function. Bright yellow, however, can be very overwhelming and distracting on a large wall, so b e careful!

- Blue
A deep blue represents concentration and focus. Many times being surrounded by deep blues can help a person make an important decision by eliminating the clutter in their mind. Deep blues are typically regarded as thoughtful colors. Similarly, light blue produces calmness similar to the focus of dark blues. Light blues are known to bring harmony and tranquility into the home. If you have aqua paint in your home, it may inspire trust in your home. That’s because aqua is the perfect color when meditating or engaging in deep thought.

What about the so-called “secondary colors”?

- Orange
Orange is a fun color that represents youth and celebration. This color portrays laughter and confidence and typically brightens people’s day. Orange has the reputation of creativity and expanding your thinking. Orange is a very specific color and while it may bring happy, it could be distracting and even annoying to a potential buyer – especially if you use too much of it.

- Green
Green is commonly associated with prosperity, both in terms of money and well-being. Bright greens are also symbolic of health and life and give the impression of stability and rejuvenation. Just don’t go too bright; otherwise, buyers may grab their sunglasses instead of make an offer!

- Purple
Deep purples are known for their royal affiliations. Kings and Queens would adorn themselves with this color, and it’s still associated with affluence and nobility. Light purples such as violet and lavender give the impression of connection and humanity.

So, what’s the bottom line?
A little bit of creativity with your paint choices shouldn’t damage your chances of selling your home, but large walls with bright colors are major mistakes when trying to sell your home. But if you’re changing paint colors, don’t be tricked into thinking that white is a neutral color! Many experts consider white to be the opposite of neutral. Instead, they see it as a bright color that may be distracting to potential buyers. Whether you have neutral colors already or need to cover a bright accent wall, removing any scratches or wear and tear with a fresh coat of paint will also help to attract buyers.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

Are Home Builders Moving Too Fast?

daniel@realtypin.com Daniel Torelli — Thu, 07 Feb 2013 15:50:12 GMT

Are Home Builders Moving Too Fast? - Increases in home sales and home prices in recent months have boosted builder confidence in the housing market, and in turn, have led to more homes being built. However, the pace of new home construction is now ahead of the pace of home sales. That could create problems in the months to come – especially at a time when the real estate industry is beginning to shows signs of recovery.

There’s good news and bad news here, so let’s start with the good news.

The real estate industry has been one of the strongest sectors of the U.S. economy in recent months. It has led to a boost in consumer confidence among prospective homebuyers, particularly among those looking to buy or build a new home. As a result, new home prices have gone up! The nationwide median sales price of a new home in December climbed 1.3% to $248,900. For all of 2012, the median sales price was $243,600. That’s 7% higher than it was in 2011 – making 2012 the best year for new home sales since 2009.

Builders took notice of this trend, and they started building more homes at the end of 2012. At first, it was hard to tell if their efforts were paying off. After all, Hurricane Sandy slowed construction down in many states throughout the Mid-Atlantic and Upper East Coast regions, so October sales numbers were down. That led to higher-than-expected sales in November 2012. In fact, according to the U.S. Census Bureau, November saw a revised annual rate of 398,000 new home sales nationwide.

But the number of new homes sold leveled back off in December. Statistically, new home sales were down 7.3% from the month before, but economists said those figures could be misleading. Even with the 7.3% decrease from November, December's annual rate of 369,000 home sales was still 8.8% above where it was the year before. So, if home sales were up in 2012, why is there concern among economists about too many homes being built?

That brings us to the bad news in this equation.

Simply put, builders may be constructing homes too quickly, meaning that they may eventually create too much supply for the demand. According to personal finance and business banking firm Comerica, completion of single-family housing units were up 16.3% in December when compared to the year before. So, new home completions are up 16.3%, but new home sales are only up 8.8%. That means there are twice as many new homes being built as there are being sold. If that gap increases in the months to come, the market could be flooded with unwanted and unpurchased new homes.

That has some experts worried, like Comerica chief economist Robert A. Dye, who recently told the Sarasota (Fla.) Herald-Tribune, “There is a disconnect between construction data and sales data that suggests that builders may be getting a little ahead of themselves at a time when households are feeling a headwind from fiscal tightening.”

What has experts even more concerned is that the new home sales numbers for December were slightly lower than many analysts had projected. Economist had forecasted an annual rate of 385,000 new home sales nationwide for December. That figure was 16,000 sales higher than the actual sales data.

So, what does all of this mean?

It's too soon to panic right now, but builders, consumers, and economists need to keep watch on market trends in the months to come. The statistics are showing that overall new home construction completions are up, and so are sales. Nothing is at an alarming rate just yet.

However, if builders continue to start and finish homes at the current rate – and the sales figures do not increase – we could have a housing market that is flooded with too many available homes. That would cause prices and home values to drop. But, of course, only time will tell if that actually happens.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

California's Luxury Housing Market Booming

daniel@realtypin.com Daniel Torelli — Wed, 06 Feb 2013 15:05:09 GMT

California's Luxury Housing Market Booming - If the economy is still in jeopardy in California, you wouldn’t know it to look at the luxury housing market. Last year, the sales of homes worth $5 million or more actually hit an all-time high! Homes priced over $1 million experienced the highest number of sales since 2007. In fact, one California home sold for more than $117 million – the highest-selling price of any U.S. home ever!

And you thought we were trying to recover a recession! So, what gives? Well, there are actually 3 reasons for the boom in California’s luxury housing market:

1. Location, Location, Location
Even when the housing market is down, homes in prime areas are still going to sell more often – and for higher prices than in other areas of the United States. Most of the luxury sales in California are happening in the high-priced luxury markets in Silicon Valley as well as Southern California, a location well-known throughout the world for its beaches and sunshine. The techies in Palo Alto, the beauty and uniqueness of San Francisco, and the beaches and celebrities in Los Angeles all attract a higher-caliber clientele, which contributes to the boom in the luxury housing market. Furthermore, with the technological job market increasing, many people are relocating to California to either work or to start companies. Since the areas best-suited for this endeavor are so expensive to live in the first place, people don’t have much a choice other than a million-dollar home.

2. “Affordable” Prices
For most Americans, a million-dollar home probably doesn’t seem like that great of a deal. However, the prices of luxury homes have come down dramatically in recent years. In fact, the prices are so low that many properties are selling for higher than the asking price due to the bidding wars of some investors. But even after the bidding wars, investors are finding that prices are low enough that there is a good chance of a high return on their investment encouraging buyers more than ever since the housing market crashed.

3. Foreign Buyers
Nearly 25% of the luxury buyers here are coming from overseas, and many of them are paying in cash. Apparently, it all goes back to the affordable prices that we just talked about. The prices here in the U.S. are being seen as a bargain all over the world, so buyers are happy to come to California – where they can get more bang for their buck! Realtors around California report seeing an increase in foreign buyers from all continents, but with particularly heavy purchasing out of Asia, Russia, Italy, and Germany. Some buyers find that they can purchase better homes for the price than in their home country and move here to live – while others are using these prices as an investment opportunity. Although in many parts of the country a million dollars will easily buy a mansion, in Southern California and San Francisco, you may be lucky to get a decent condo. Even so, foreign buyers are seeing the value in these homes and find that they can get better quality in better areas and wealthy foreigners are buying and investing in California significantly contributing to this boom.

Investors and buyers are hoping to see the value in these homes steadily go up and eventually be able to make a large profit. At any rate, this luxury housing boom is hopefully a sign of more positive things to come for the entire U.S. housing market!

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Fannie Mae Says There's a New Housing "Normal"

daniel@realtypin.com Daniel Torelli — Wed, 06 Feb 2013 15:02:44 GMT

Fannie Mae Says There's a New Housing "Normal" - It seems as though it’s time for us to realize that the housing market has changed forever. Unfortunately, we need to get used to a new “normal” that involves a small level of growth that probably won’t escalate quickly any time soon – at least, that’s what Fannie Mae says.

Fannie Mae just made some bold predictions about the direction of the housing market and home loans stating that the growth rate in the next year is unlikely to improve. In fact, Fannie Mae says that Americans should get used to this new “normal” for the next few years. The Federal National Mortgage Association (FNMA) or more commonly known as Fannie Mae, released a report with their predictions about what Americans should expect over the next several years when it comes to their loans and mortgages.

What exactly are they saying?

According to their report, Fannie Mae says that the U.S. housing market has been on a “modest growth path” since 2009, and that this slow recovery should be considered the “new normal”. Unfortunately, they see bickering in Washington as a problem for future housing growth. Specifically, the report states, “The fiscal cliff and ongoing debt ceiling debate, which are likely to suppress consumer spending in the first half of 2013, continue to present potentially strong headwinds to meaningful growth activity.”

It’s not all bad news though. Fannie Mae’s report also predicts that interest rates will remain low, that there will be a significant increase in new home construction, and that foreclosure rates will continue to fall. Although there are experts that disagree with some of these findings, if the study proves to be true, interest rates will remain below 4.2% well into 2014. That prediction is in line with the Federal Reserve’s timeline for the Quantitative Easing Program, which is designed to keep interest rates low for the next couple of years.

Another positive forecast is that people won’t have to refinance their mortgages as often as they did in the past. Fannie Mae’s predictions include a smaller number of people refinancing their home loans because there will be a better balance of refinance and purchase-related activity. Fannie Mae also estimates a 23% increase in housing starts. This prediction is backed up by an increase in permits granted at the end of 2012. Fannie Mae does point out, however, that it will take a few years before we start seeing housing starts get back to where they were before the economy crashed. A very positive prediction in this report is fewer foreclosures. Foreclosure rates have dropped dramatically in part because the economy is steadily improving, but also because people more than ever are trying to avoid it – thanks to things like short sales and other programs. Fannie Mae predicts that as short sales become more popular, and as banks come up with additional alternatives for their borrowers, the foreclosure rate will continue to decrease.

Although Fannie Mae addressed many of the issues, what it all boils down to is that there still remains uncertainty and plenty of guesses when it comes to the housing market. The steady, but slow increase could, however, mean good things for the future – as long as you’re willing to accept the new “normal”!

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The Economy is Shrinking – But It Won't Affect Housing

daniel@realtypin.com Daniel Torelli — Tue, 05 Feb 2013 16:16:06 GMT

The Economy is Shrinking – But It Won't Affect Housing - The U.S. Commerce Department announced last week that the economy shrank slightly in the fourth quarter of 2012, marking the first quarterly drop of the Gross Domestic Product (GDP) in 3 ½ years. The GDP is the market value of all officially-recognized goods and services produced within a country during a certain period of time. In other words, it's the total worth of the U.S. economy.

Economists at the Commerce Department blamed fiscal cliff concerns for the drop-off from October to December. They say the uncertainty of the situation caused companies to restock goods at a slower pace than usual, and they also point to government cuts in defense spending as a another reason for the shrinkage.

But what does all this mean for the housing market? Well, analysts say homebuyers and sellers shouldn't be too worried by the recent news! But in order to understand why a shrinking economy won’t affect the nation’s housing market, you have to break down the numbers…

Congress resolved the fiscal cliff issues by reaching a deal on January 1st that included automatic spending cuts across the board throughout government agencies. Many of those cuts go into effect on March 1st, but economists say they shouldn't trigger another recession. That's one tidbit of good news for anyone currently involved in the housing market. After all, when the economy collapsed in 2008, home prices plummeted and so did consumer confidence.

But if anything, consumers are spending more money these days, so it seems they are more confident in the security of their jobs and the direction in which the economy is headed. In fact, the Commerce Department announced that although the overall GDP dropped off in the fourth quarter of 2012, consumer spending increased 2.2 %. Business spending was also up from October to December, and among the industries reporting some of the highest profit increases were homebuilders.

Speaking of profit increases, more Americans saw their income levels rise in the fourth quarter of 2012 as well. Many business owners paid out special dividends and bonuses to their employees before the year ended to avoid expected tax increases in 2013.

While those with jobs received more money, the number of individuals looking for jobs stayed roughly the same. Across the nation, the economy has added roughly 150,000 jobs per month for the last two years, but that's barely enough to reduce the unemployment rate, which has held steady at 7.8% for two months. Still, economists say a steady unemployment rate is better than an increasing one.

So, what does all of this mean?

Despite news of a shrinking economy, the worst news for most Americans is that Social Security tax increases have kicked in. As a result, the average working American's take-home pay will be about 2% less in 2013. That means consumers will have less money to spend on everything – including in the housing market.

However, consumer spending is up for now, and there’s no sign that the spending is going to slow down anytime soon. When you add to that the pledge from the Federal Reserve that they will continue to keep interest rates on home loans low, you have a housing market with a bright future.

So, while the U.S. economy may be shrinking slightly, the housing market is not!

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What Should You Expect in a Home Inspection?

daniel@realtypin.com Daniel Torelli — Tue, 05 Feb 2013 16:11:13 GMT

What Should You Expect in a Home Inspection? - A home inspection is an important part of the buying process that all buyers should invest in before they get the keys to a new home. Even though it is not required by law, an inspection can save you thousands of dollars by identifying problems that are not necessarily seen with the naked eye.

But what exactly are you getting when you pay an inspector to come into your home-to-be?
First off, be careful not to confuse a home inspection with an appraisal. Your appraisal will determine the value of the home, while the inspection will determine the stability of the home in its current condition. The inspection will alert you to any current problems or any problems that you may run into in the near future. Everything will be done by a certified home inspector who specifically looks for any problems that might not be blatantly-obvious during your walk-through.

What is your inspector looking for?
He’ll start by checking out the HVAC system to make that it’s working properly. From there, he’ll move onto the house’s structure, the foundation, the electrical system in the home, the plumbing, the roof and any other installed systems in the home. Home Inspectors may differ in their services and although most will definitely check these things, it’s important to thoroughly discuss what is included in the service before hiring the inspector. Even though it’s a thorough process, it’s completely non-invasive, and it won’t cause any damage to the home.

It’s important to note that home inspectors typically don’t check for termites or mold. Luckily, though, good inspectors will alert you of anything suspicious they discover during the process. After the home inspector finishes all of his work, he’ll type up a written report of all his findings. This report will tell you all about the current condition of anything in the home that needs repair, and it typically focuses on things that could be big expenses down the road.

Because the inspection essentially only benefits the buyer, the buyer pays for the home inspection. Although the typical cost of $300-500 may seem like an annoyance right now, it’s something you can’t afford to skip. Not only will it alert you to any potential problems, but it can also be a very valuable negotiation tool.

After you receive the findings of the inspection, it’s up to you what you do with them. Should there be anything troubling in the report, you’ll have to decide how to proceed. You can ask the homeowner to fix the problem, or you can use those findings to negotiate down the price. In some cases, you may discover such a major problem that you won’t want to proceed with the purchase at all. (In fact, a good realtor will tell you to make your offer contingent on the home passing an inspection!)

A home inspection is an important part of the buying process. Even if the home turns out A-OK, you’ll get valuable peace of mind about your new home. And, if things don’t go so well, you may be able to save a ton of money on future repairs.

So, how do you find a great inspector to look at your home?
You can find a qualified and certified inspector in your area by visiting the American Society of Home Inspectors’ website at www.ashi.org.

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Walk Away From Your Mortgage? A New Rule Just Might Let You

daniel@realtypin.com Daniel Torelli — Tue, 05 Feb 2013 16:07:27 GMT

Will a New Rule Let You Walk Away From Your Mortgage? - A new rule that goes into effect on March 1st is set to dramatically change the way delinquent home loans are handled, and in essence, will allow some homeowners to walk away from their mortgage without going into foreclosure.

What is it?
The new rule applies to homeowners who are underwater on their mortgages – but can’t solve the problem through a loan modification or short sale. Instead, Freddie Mac and Fannie Mae have written a new escape clause into mortgage servicing regulations that allows servicers to approve deed-in-lieu of foreclosure for some borrowers.

What exactly does that mean?
A deed-in-lieu is an option where the lender takes over possession and ownership of the home without a foreclosure. It’s better for the lender because there’s less paperwork involved. It’s also better for the borrower. Yes, they’ll still lose their home, but they won’t have to deal with having a foreclosure on their credit report.

Here’s how it works:
The new program will be available to all borrowers, regardless of their delinquency status, but it seems targeted at those who do not qualify for the similar deed-in-lieu option available under the Home Affordable Foreclosure Alternative (HAFA) program. In order to be eligible for the HAFA program, a homeowner must be more than 90 days delinquent on their loan. However, this new rule allows borrowers who are current or less than 90 days behind on their mortgage to have some options. If a borrower is current on their loan – or maybe just a month or two behind on the payments – then suffers something unforeseen (like the death of a spouse or a serious illness), they might not be able to afford their home mortgage anymore. So, what can they do? Where can they go for help?

That's where this new rule comes into play.
Of course, there's tons of red tape, but that is designed to ensure that servicers follow all of the rules and regulations before granting a deed-in-lieu.

First, the borrower must provide documentation proving the new financial hardship, and must also provide evidence that they can no longer afford their mortgage. At that point, a servicer must complete an evaluation of all foreclosure alternatives. In other words, they must offer the borrower a loan modification or forebearance, or encourage a short sale before offering the deed-in-lieu option.
If none of those options are feasible, the servicer can proceed to the next step in the process – a deed-in-lieu.

There are other stipulations and guidelines that apply, depending on how delinquent the borrower is on their home loan. For example, if the homeowner is less than 31 days behind on their payments, the servicer must check financial records of the borrowers to make sure that their debt-to-income ratio is higher than 55%. All of these steps are in place to ensure that the deed-in-lieu really is the final and only remaining option for the homeowner.

At that point, the borrower must vacate the premises and turn over the keys to the servicer. The servicer is then required to do an interior property inspection no more than 48 hours before the final execution of the deed. They must make sure that borrower has moved out and taken all of their personal property with them, and left the home undamaged and in broom clean condition. If that's the case, the servicer has the authority to offer up to $3,000 in relocation assistance to borrower to move into a new home.

However, if the borrower damaged the seized home before moving out, didn't clean it, or left some of their personal property behind, the cost for cleaning and repairs is deducted from the relocation assistance amount. While a deed-in-lieu isn't ideal, it is a better option than foreclosure for all delinquent borrowers, and thanks to this rule, experts expect more homeowners to choose this option when it is presented to them in the future.

Buying a new home? Selling your home? Looking for real estate news, a new home loan, free tools, money making widgets and more? Then Realtypin is the real estate search portal for you!

What You Need To Renovate First

daniel@realtypin.com Daniel Torelli — Mon, 04 Feb 2013 15:54:09 GMT

The Top 4 Things to Fix First in Your Fixer-Upper - As the famous saying goes, “You get what you pay for!” This holds true not only in life itself, but also in real estate. Many buyers are drawn to the low price of a fixer-upper. But once inside, these homes can be intimidating. Often times, a fixer-upper has a laundry list of repairs that need to be made, and deciding where to start can be frustrating, especially on a limited budget. That's why we've made this list, in hopes of helping you prioritize which renovations need to be made first:

1. The electrical system
Aside from any emergencies (which should always be taken care of first!), your primary concern should be that your fixer-upper has a fully-functioning electrical system. After all, an improperly-wired or damaged electrical system can lead to electrocution or fire! Sometimes it's obvious that there is a problem with the electrical wiring. For example, the circuit breakers may trip often, or the lights may dim when too many electrical outlets are being used at once. But other times, the homeowner may have no idea that a problem lies inside their walls until it's too late. That's why we suggest you hire a licensed electrician for an inspection. It will cost you a few hundred dollars, and depending on what he finds, the repairs and replacements could cost you a few thousand dollars. That may seem like a lot of money, but it’s a small price to pay for a safe place to live!

2. The basement/foundation
You need to make sure the base of your home is safe. Structural problems in the basement (or in the foundation if your home doesn't have a basement) can lead to shifting and cracks upstairs, as well as rotting and bowed beams or termites down below. Most of these problems are caused by water, so be sure to keep the basement or foundation dry. If you suspect that you have structural problems, contact a licensed contractor to inspect the home.
They'll usually do this for free, and only charge you if repairs are needed. Knowing that the base of your home is safe will make you sleep easier at night upstairs!

3. The roof and gutters
Ceiling rot, insects, electrical shorts, mold, pooled water near the home's foundation, and leaky downspouts. These are all problems you don't want to deal with when it comes to your new home. But if your roof and/or gutters need to be repaired or replaced, all of these situations can become a reality. There are some warning signs that your roof or gutters may be damaged – like dampness or stains on your ceilings, saggy ceilings, broken or missing shingles, green algae on your roof's exterior, dented or discounted gutters, and pooling water near the downspouts. If you see any of these signs, we suggest you contact a professional roofer to come out and access the damage, and give you an estimate on the cost of the repairs. Depending what they find, you could end up paying anywhere from $1,500 to $15,000.

4. Exterior Walls
The base of the home, the roof, and the wiring inside the interior walls have all already made an appearance on our list, so the next most important part of your home are the exterior walls. If you see any paint or siding that is pealing, cracking, or blistering, these issues need to be addressed sooner rather than later. Moisture can enter the home much quicker from the basement or roof, so that's why those portions of the home are higher on our list, but water can still make its way through the siding if it doesn't have a weather-tight seal. This can cause wood rot or attract insects like termites, so don't overlook the exterior walls during your initial assessment of the home.

After you've covered these four main areas of concern, then you can start to focus on the “pretty stuff” – like replacing old appliances, repainting interior walls, or remodeling the bathrooms, but make sure you take care of the items on this list first!

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