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Zillow CEO: ‘Housing Is Back; There’s No Question’ Date:March 14, 2013|Category:Zillow|Author:Jill Simmons This morning, Zillow CEO Spencer Rascoff appeared on Bloomberg’s “In the Loop with Betty Liu” to discuss Zillow’s 2013 housing outlook, discount brokerages and the millions of listings (rentals, Make Me Move, pre-foreclosures and foreclosures) that can be found on Zillow and not on other real estate sites. Watch the segment here or by clicking on the image below.    

3 Ways to Avoid an HOA Horror Story Date:March 7, 2013|Category:Tips & Advice|Author:Brendon DeSimone Ask enough condo owners, and you’ll likely hear at least one horror story about their homeowners association (HOA). One of the most extreme examples recently made the news when an HOA president in Evansville, IN directed a homeowner to implant a microchip in her dog. Though they sometimes may go overboard, HOA rules and regulations are meant to protect home values and the homeowners’ quiet enjoyment of their property. What few buyers consider when embarking on a condo purchase is that, as an owner of a condo, you’re a member of the HOA that governs the condominium complex. You will be subject to the HOA’s rules. That’s why it’s so important to take a close look at the HOA in advance. While the process varies by market, a buyer’s typical contract with the seller will allow time for disclosure review, which includes due diligence on the HOA. Many buyers wonder how to do due diligence on the HOA. The answer is to request copies of the HOA documents (meeting minutes, financials, house rules and governing documents). The seller, as a member of the HOA, has access to these documents and should make them available to the buyer. Here are three things potential condo buyers should do with those documents: 1. Read the past year’s meeting minutes Above all, read the minutes of the HOA monthly or quarterly board meetings. You can learn a lot about the HOA’s inner workings, such as the politics and how enforceable its rules are. You’ll get a sense of how the HOA works, who’s on the board and how flexible or difficult they are to deal with. The most obvious red flag is any discussion in the minutes of an upcoming assessment or any major project (painting, roof repair, boiler replacement). These conversations generally happen months or years before the work (and assessment) is enacted. Other potential red flags would be documented conflict between homeowners and board members, such as the case mentioned earlier about the HOA president telling the homeowner to put a microchip in her dog. 2. Review the house rules and regulations Nearly every HOA has its house rules and regulations. In a suburban subdivision, typical rules would include restrictions on how your home looks from the street (no pink houses on Elm Street). In a condo building, restrictions often cover noise, such as no loud music or noise between 10 p.m. and 8 a.m., or that 85 percent of your hardwood floors must be covered by area rugs in living, dining and bedroom areas. While there are generally accepted common rules, from time to time more excessive ones stand out that may not sit well with a potential buyer. Some examples include no RVs in the driveway or the required removal of Christmas lights by Jan. 15. A buyer’s response to such rules is subjective. But it’s better to know the type of HOA you’re buying into before you sign the final paperwork. 3. Review the financials Be on the lookout for HOAs that can barely cover their monthly expenses. Since the housing crisis began, many HOAs have been forced to foreclose on homeowners who are behind on their HOA dues. If you have a third of homeowners not paying, that affects everyone, as the money needs to be made up somewhere. Another red flag is the lack of a reserve fund. If the HOA only has $5,000 in reserves, and there’s mention in the meeting minutes of a major sidewalk replacement, you should assume that funding for the project will come from a one-time “special assessment” levied on the homeowners. Don’t want to be stuck with a $10,000 mandatory assessment six months after you move in? You may want to reconsider this property. Advice to sellers If you live in an HOA community that has some issues, be sure to disclose them upfront. It’s not much different from disclosing the leaky window or recent crime in the home. You don’t want to create a giant red flag for potential buyers, of course. But if they find out about something major after the fact, it could come back to haunt you. Work with your real estate agent and strategize about some of the best ways to make the HOA documents or disclosure information available to buyers during escrow.

30-Year Fixed Mortgage Rates Surge to 9-Month High Date:March 12, 2013|Category:Finance|Author:Camille Salama Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.55 percent, up from 3.37 percent at this same time last week. The 30-year fixed mortgage rate peaked at 3.58 percent over the weekend, dropping to the current rate this morning. “Mortgage rates surged to their highest level in 9 months in response to an unexpectedly strong jobs report,” said Erin Lantz, director of Zillow Mortgage Marketplace. “This coming week, we expect rates to gradually drift upward on continued improvement in economic growth and consumer confidence.” Additionally, the 15-year fixed mortgage rate this morning was 2.7 percent, and for 5/1 ARMs, the rate was 2.3 percent. What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state. *The weekly rate chart illustrates the average 30-year fixed interest rate in six-hour intervals

Tips to Improve Your Home’s Insulation Date:March 12, 2013|Category:Tips & Advice|Author:Allstate Insurance How did you fare this winter? If you’re a homeowner in a cold climate, the level of insulation in your home might have made a huge difference in your comfort and also in your pocketbook these past few months. If you found your house felt too cold and you broke into a sweat each time you had to face another energy bill, consider making an improvement by adding insulation. Here are some tips on how to proceed: Think ‘found’ money Some municipalities, cities, states, the federal government and utility companies offer incentives and tax rebates when you purchase high-efficiency products and materials, says Daniel DiClerico, co-author of “The Just Right Home.” Start by checking the U.S. Department of Energy’s database for state-specific tax credits, rebates and efficiency-related savings. Get a home energy audit If you own an older home, consider a home energy audit to identify air leaks and areas where insulation may need improvement. Think of it as a physical exam for your house. An audit may include a blower door test, which uses a high-powered fan to lower the air pressure inside; the higher outside pressure then finds its way back in through unsealed openings and cracks, revealing your air leaks. A home energy audit will also examine existing insulation’s R-value, which is a measure of how well it resists heat — and cold — traveling through it. Hire the right contractor Many contractors are capable and honest, but it helps to work with a contractor who is licensed, bonded and insured (make sure to ask for references). To find a home energy audit pro, try the Residential Energy Services Network (RESNET) and the Building Performance Institute (BPI) as starting points; in many cases, the same contractor who does your audit can also do the insulation work. Make sure to check with your electric or gas company, too, because many perform home energy audits — some even for free. Know your insulation Contractors will use different materials, methods and amounts, depending on your area. Check Energy Star’s recommendations on the levels of insulation for different climates and in different areas of your home. Here’s an overview of the different types of insulation: Blanket insulation, the most common type of insulation, comes in sheets or rolls. While it has traditionally been made of fiberglass, it can now be found in plastic or natural fibers. It’s sized to fit nicely between the standard spacing of studs on unfinished walls, and the joists and rafters of floors and ceilings. It’s also relatively inexpensive, and DIY types can find it in home improvement stores. Blown-in insulation consists of recycled fiberglass, newspaper (cellulose) or other material that is blown into a space. Because of its loose nature, this type of insulation conforms to fit an existing area without disturbing the surrounding structure and is well-suited to renovations. Spray foam, a mix of chemicals, expands into liquid foam that becomes rigid after it cures. It acts both as insulation and an air sealant. This type of installation requires more experienced installers, and tends to cost more (though the Department of Energy says that because it has a higher R-value and acts as an air sealant, it may ultimately save money by eliminating the need for other home weatherization tasks). Install in the right places Focus on where insulation needs beefing up or is missing (a home energy audit can help here). Many contractors suggest working from the top down, if your budget is tight: Attic: If you have one, you might install insulation on top of the floor or under the roof deck, depending on your home’s configuration and where heating, ventilation and air conditioning equipment is located. Walls: In cold climates, you might add insulation in interior or exterior walls by drilling 3-inch holes, blowing in cellulose and then covering openings. Basements: Install insulation along the rim joist around your home’s perimeter and where wood meets concrete to seal gaps. Additions: Room additions are frequently neglected when it comes to insulation; consider filling this gap. Remember ‘low-hanging fruit’ Many do-it-yourself improvements can also increase your home’s insulation. Caulking and weather stripping around windows, doors and thresholds; plugging light holes and plumbing gaps; installing storm windows; and adding a programmable thermostat to lower temperatures automatically are all good tactics. Planting can help, too, says BPI-certified contractor Scott Fischer of Ciel Power in New Jersey: Shrubs and foundation materials can help diffuse wind, he says, while leafy trees on a south-facing lawn can help cut summer heat. Take on your insulation project now while the winter chill is still fresh — and definitely before summer’s hot days, as good insulation helps keep your house cool, too.

3 Quick Tips on Buying a REO (Real Estate Owned) Property Posted under: Home Buying, Tech Tips, Investment Properties  |     March 7, 2013 5:11 PM  | If forclosed property doesn’t sell at auction it goes back to lender and is titled a REO (Real Estate Owned).  At this point the lender assumes full responsibility in selling the property on their own. Banks view these properties as “hot potatoes”, and want to get them off of their books as soon as possible.  This is an excellent opportunity for home buyers looking for a deal.  Some banks are more inclined to slash prices for aggressive buyers, but the adage holds true; “pigs get fed, and hogs get slaughtered”.  The banks know there are a lot of other people who want a bargain too, and you don’t want to lose a deal because you are bidding too low. #1- Before you even make an offer you want to make sure you are 100% qualified to buy.  Make sure your credit, income, and other loan paperwork doesn’t have any hidden surprises that could jeopardize your purchase contract.  The banks are of course in the lending business, so they know what to look for in a strong buyer.  Don’t try and cut corners when it comes to preparing to buy.  The sooner you can close in a contract the better. #2- Do your homework on the property before you make an offer.  A good agent or appraiser can check out comparable sales so that you know what price points will be justified.  The banks expect to take a bit of a loss.  If you can give them a laundry list of reasons why your low price is justified it will help their collections department negotiate the write offs.#3- Buying a REO property is different than buying from a private seller. The bank won’t have any emotional attachement to the property which is good, but that also means the upkeep is probably lacking as well.  An inspection isn’t a bad idea. Talk to others who have bought before.  REO’s aren’t for everyone, but they can certainly provide you with a great opportunity if you’re willing to do a little extra work.

Help A Buyer Out: 5 Tips Sellers Would give Buyers if they Could Posted under: Home Buying, Home Selling  |     March 6, 2013 12:36 PM  | The conventional wisdom is that buyers and sellers go together like oil and water. That is to say, they don’t go together at all. Some say they are at odds simply by virtue of sitting across the bargaining table from one another, which – along with negotiation and legal issues that are par for the home buying course – create the presumption that they want totally different things. The prime example of competing buyer and seller interests is this: the buyer wants to pay as little as possible, while the seller wants to get top dollar for the place. But there is another way to look at this entirely.  In fact, there’s a point of view from which the buyer and the seller want exactly the same thing:  the buyer wants to buy the place, and the seller wants to sell it to them!  And I’ve seen many buyers and sellers act cooperatively to achieve just that result. Nevertheless, there are things that sellers can see from their side of the table that you cannot. Sellers have insights into their own mindsets that, if revealed, can be very powerful tools in helping buyers optimize their approach, offer and interactions with the seller to both buyer’s and seller’s benefit. So, in the interest of helping both buyers and sellers move closer to an outcome that helps them both achieve their mutual goal, here are a few of the insider secrets from the seller’s side of the bargaining table that they would tell buyers, if they could.   1.    Trashing my house doesn’t make me want to sell it to you at a discount.  To a seller, their home is their castle. It’s the place where they’ve raised their children, and has been the backdrop for many of their memories. It’s the asset into which they’ve invested the lion’s share of their time and money, sometimes for years.  It’s an intensive expression of their personal tastes.  And it’s also the asset they must convert into as much money as possible to move forward with the next phase of their lives. All that said, the average seller knows most things about their home that you can see with the naked eye.  So if you, as a buyer, think trash talking a home, pointing out obvious flaws or issues is a good strategy for getting the price down, rest assured that you are not telling the seller anything they didn’t already know when they set the list price. In fact, you might very well be doing your case more harm than good, as this “strategy” is highly likely to alienate and insult the seller whose cooperation you seek. If you feel strongly that something about a place makes it less valuable than the comparables the seller seems to have based the list price on, work with your agent on how best to communicate your offer price rationale to the listing agent in a way that is diplomatic and fact-based.     2.    Knowing that you have cash makes me feel comfortable taking your offer.  With distressed properties, over-asking multiple offers, and the generally warm-to-hot seller’s market in many areas, it has become increasingly common for sellers to request proof of a buyer’s “cash to close.” (This usually takes the form of bank or other asset account statements, with the sensitive account number information blacked out for security purposes.) Some buyers in competitive situations have begun to proactively offer such proof, even when it hasn’t been requested, and even for non-cash offers. Other buyers, though, take offense. Why shouldn’t the mortgage pre-approval letter be enough?  Why should you have to jump through yet one more documentation hoop?  Is the seller just plain nosy? Why are they all in your business? One word: comfort. Over the last few years, the number of home sale transactions that went into – and fell out of – escrow due to last minute loan problems of pre-approved buyers hit a record high. While this is awful for buyers to go through, it’s even more disruptive for sellers, who are relying on the transaction to close in the time frame the buyer provided to move forward with their own lives. It’s also a worst case scenario for a seller who had 5 offers on the table to choose one and then have it fall out of escrow later on. And sellers’ agents know this – often, the issues which derail a buyer’s loan can be resolved with money, extra cash down, extra cash at closing, extra cash to put in escrow for post-closing repairs required by the lender or the city.  So, proving that you have more cash than you appear to need to close the deal doesn’t necessarily set you up for the seller to ask for more cash – but it might help them feel that you’re the buyer most likely to sidestep mortgage obstacles and seal the deal. 3.    It’s all about the Benjamins – but close-ability is a close second.  Buyers be on notice – all the love letters, cute dog pics and cookies in the world will not make your offer win out over others that are offering significantly higher than yours, financially speaking.  Now, please don’t write in telling me about the case of your cousin’s dog groomer’s tarot card reader who got a home for less than 10 other offers because she helped the little old lady seller take her garbage cans to the curb – most little old ladies need cash to get through their later years. There is always an exception to the rule, and it does sometimes happen that a seller will take a slightly lower offer than the highest for one reason or another.  But if you’re trying to create a plan that stacks the decks in your favor in a multiple offer situation, your first priority should be to offer as much as you can, without spending beyond what is affordable for you and beyond the home’s fair market value. That said, sellers also care – a lot – about how likely the offer they accept is to close escrow.  And when multiple offers get so numerous and so frenzied that buyers seem to be throwing money at a home, smart sellers pay attention to the fact that their home might very well not appraise at a crazily high price and focus on offers that seem realistic and close-able, which can mean offers below the highest. Approval letters, proof of cash to close, the professionalism with which the offer is prepared and presented (see below), and even things like your credit score, your choice of mortgage broker/professional – all these things contribute to or detract from a seller’s estimation of how close-able your offer is.  If you’re competing against other offers, you should be maxing out both your price and your offer’s close-ability, as evidenced by these characteristics.     4.    Your agent represents you to the world of sellers.  Choose wisely.  See above. A buyer’s broker or agent has a lot of influence on whether the transaction closes, and how smooth or bumpy the ride is. If your agent’s level of professionalism is lacking, it will show – and listing agents might actually rank your offer below others, in terms of close-ability.  If your agent’s level of professionalism is stellar, the opposite can occur. Before you choose an agent, ask around your circle of friends and do a little online searching or even calls to past clients to see what you can find out about their reputation for professionalism.     5.    Ask nicely – the old “flies with honey” adage is true. The conventional narrative about buyers and sellers is that they are adversaries. But I’ve been around this block a few times, and I think the average buyer would be absolutely gobsmacked at the number of times sellers are actually ready, willing and able to agree to their requests throughout a transaction. This is especially the case where: the buyers’ requests are reasonable and not nickel-and-dime nitpicks the buyers phrase their requests nicely, and the buyers have been living up to their end of the bargain throughout the course of the transaction. Compare this with buyers who try to hold sellers hostage to their requests with the threat that they’ll kill the deal if the seller doesn’t do every single penny-ante thing the buyer wants. I’ve seen sellers agree to leave valuable personal property behind, have repairs made, give thousands of dollars in repair credits or price reductions after a concerning inspection report – despite a hot seller’s market – all because they were good people, could afford to, and the buyer’s approach was more sweet than it was sour. SELLERS, past and present: It’s your turn – what advice have you always wanted to give home buyers?

10 Cheap Ways to Sell Your House for More By Ross Boissoneau | Money Talks News – Thu, Jul 5, 2012 4:21 AM EDT mg width=1 height=1 alt=”” src=”http://us.bc.yahoo.com/b?P=.aYTWArHg2_f43LfUTAQnABlYw6jw1EwEkoACkLE&T=1fngsi20r%2fX%3d1362104906%2fE%3d1183311983%2fR%3dfin-glob%2fK%3d5%2fV%3d2.1%2fW%3dH%2fY%3dYAHOO%2fF%3d3014458414%2fH%3dX2lkPSJiNzk5M2FhZC1iZWFjLTNjZjgtOTM1My04NTYwYzVlYTJmOTYiIGNhbl9zdXBwcmVzc191Z2M9IjEiIGNvbnRlbnQ9ImZpbmFuY2UiIHJlZnVybD0icmVmdXJsX2ZpbmFuY2VfeWFob29fY29tIiBycz0ibG1zaWQ6YTA3NzAwMDAwMDQwZ056QUFJIiBzZW5zaXRpdml0eT0iMCIgc2VydmVJZD0iLmFZVFdBckhnMl9mNDNMZlVUQVFuQUJsWXc2ancxRXdFa29BQ2tMRSIgc2l0ZUlkPSI0NDUxMDUxIiB0U3RtcD0iMTM2MjEwNDkwNjgyNDE0OSIgdG9waWM9InBmLVNlbGxpbmciIA–%2fQ%3d-1%2fS%3d1%2fJ%3d6E80C70A&U=12b56m0t3%2fN%3dimE4nGKL5VM-%2fC%3d-1%2fD%3dREC%2fB%3d-1%2fV%3d0″>   A couple of weeks ago, mortgage rates plummeted to all-time lows – 3.67 percent for a 30-year loan and 2.94 for a 15-year loan. They’ve crept up a bit lately, but they’re still a bargain. So why can’t I sell either of my houses? That’s right, I have two homes to sell: the house I live in now and the house I grew up in. My current home has been on the market for more than a year, and my family home since a month after my mother’s death. But despite showings, open houses, and those historically low mortgage rates, neither has sold. But I’m confident that will change – because I recently consulted professionals whose advice should help me sell faster. Implementing some of their advice would cost hundreds, but some could be cheap or free… 1. All the world’s a stage Let’s start with the potentially most expensive. In the video below, Money Talks News founder Stacy Johnson explains what “home staging” is, and how it can cost up to $5,000 a month – or as little as nothing. Click here to watch ‘Staging Your Home for a Sale’ on MoneyTalksNews.com As you saw in that video, staging a home is just about making it more like an uncluttered luxury hotel suite and less like your family’s home. Do it on the inside and outside and your home will probably sell faster and for more. 2. Find the right professional Sometimes you forget the obvious: The best, smartest thing a homeowner can do is find the right real estate agent for them. There are all kinds of pros out there, with all kinds of approaches and personalities. So how do you find the perfect fit? The easiest ways are also free: Get referrals. Obviously, the easiest step is simply to ask friends and family. But be careful, because an agent who did well selling your sister’s fixer-upper isn’t necessarily the best one to sell your four-bedroom raised ranch. Agents can specialize not only in geography but also in price ranges. Go to open houses. In this case, you aren’t checking out the home, but the agent. And don’t fret that you aren’t interested in the house – smart agents know they’re also selling themselves at open houses. Go online. If those first two options aren’t working for you, search sites like RealEstateAgent.com and Realtor.com. When you find a few agents you might like, check them out online before contacting them. Are their websites professional-looking and inviting? Do they promote their properties well? Then call them. If the conversation goes well, set up a meeting. But remember, you have to feel comfortable, because this individual is helping you sell your most expensive possession. 3. Clean and de-clutter Cleaning is obvious – we shouldn’t even have to mention that a dirty kitchen or bathroom will cost you customers. But clutter is another matter. Step back and try to look at your home the way someone else would for the very first time. The half-dead philodendron? Toss it out. That old ratty hassock? Goodwill. And what about the garage? If you use it to store everything but your car, clean it out so a prospective buyer can imagine pulling their own vehicle in there. (Although they’ll probably do just like you and use it for storage.) 4. Maximize your home’s curb appeal Mow the lawn. Trim the shrubs. Buy a new welcome mat. Add a hanging plant next to your entrance, or some large terra-cotta pots filled with colorful blooms. This is crucial – online pictures of your front door will likely be the introduction to prospective buyers. 5. Invest in a friend If a professional home staging profession is too expensive, ask a friend or your real estate agent to come in and give an honest assessment of your home. Having someone objective look at what you see everyday can yield results regarding items or spaces you as a homeowner have become blind to. 6. Create rooms Substituting one room’s use for another is a cheap way to transform a three-bedroom home with a den into a four-bedroom home. If it doesn’t have a closet, add an armoire. Or maybe your home has a formal dining room that’s never used. Add doors if it doesn’t have them and a freestanding wardrobe – and you’ve got an instant main floor master bedroom. 7. Paint Nothing can instantly transform a room like a new coat of paint. That’s especially true if you’re going from something dark and dingy (and scratched and dirty) to something light, bright, and white. Painting is one of the easiest and cheapest ways to change and improve a room’s appearance. Anyone can do it. I know, because I have. A bedroom upstairs and the kitchen and dining room in my main house, and two bedrooms in my parents’ home. HUGE difference. 8. Bring the outdoors in and take the indoors out Plant the decorative plants not just in the ground around the deck, but inside. Furnish your seating areas outside with things you would normally find indoors, like soft cushions. Bridging the inside and the outdoors expands the feel of your home. 9. Add storage New homebuyers are always looking for storage space. Maximize what you have by adding a closet storage system, incorporating shelves, two-tiered hangers, and the like. Storage doesn’t have to be deep to be useful. Open up a space between studs and walls, install shelving, and you’ve got the perfect place for a series of small shelves to store CDs and DVDs. 10. Lights, camera, action! Ceiling fixtures tend to get hung, then forgotten, which means they look dated before long. Inexpensive replacements from a home improvement store can brighten up the interior and make a room look more current. Don’t assume it’s sold till the cash changes hands… Last year I had an offer – two, actually – on my home. Both offers were “as is,” meaning with the dark, chipped kitchen floor, the water-stained ceiling in the kitchen, the ugly dirty walls upstairs and down. While awaiting closing, I neglected to paint or fix the floor or do any of the other things I had intended to do, as detailed here. When both those deals fell through, I’d lost an entire summer of traffic. So don’t let your guard down. Remember, a buyer has some specific needs and desires in mind: neighborhood, number of bedrooms and bathrooms, etc. But beyond that, buying a home is an emotional decision. Welcoming someone to your home – hopefully their new home – means keeping things bright, clean, uncluttered, and friendly.