First Time Home Buyers Roadmap

Here are 12 tips for buying your first house: Full Article

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Make sure you’re ready to buy, both emotionally and financially. If you expect to relocate in a few years, this may not be the right time for you to buy. If you don’t have cash for a down payment, closing costs and other expenses, you may be better off waiting. Look at your life, your career, your finances and your future expectations, and determine whether buying a house is the right move at this time.

Find the right team. The difference between deals that close and deals that don’t are the professionals involved. You want to make sure you find a real estate agent who will move quickly when a new listing goes on the market, as well as an agent who will advise you honestly on preparing your offer. You also want a mortgage professional lined up before you start looking. “The lender is the most important person to closing on time,” Simon says.

Get your finances in order first. Some real estate agents won’t even show homes to prospective clients who don’t have a mortgage preapproval. You definitely should meet with a mortgage broker or banker (better yet, several) at the start of the process to find out how much house you can afford and how much cash you’ll need to close. Do all the math. Just because a bank says you can borrow $200,000 doesn’t mean you should. If you have credit issues, realize that this part of the process could take several months.

Calculate each and every cost. The purchase price and the mortgage payment are just the beginning. Don’t forget homeowner or condo fees, homeowners insurance and real estate taxes. Plus, you’ll need to budget for utilities, repairs and maintenance.

Don’t spend all your cash. Avoid emptying your bank account for your down payment and closing costs. There will always be unexpected repairs. Plus, it costs money to move, change locks, put down utility deposits and buy things you never needed before, like a lawn mower.

When you look at houses, focus on the right things. Don’t be distracted by the owner’s odd décor, paint colors, dirty carpet or anything that is easy to change. Granite countertops and stainless steel appliances are easy to add later. You can’t easily add another bedroom, a better location or a more functional floor plan.

If you're buying in a condo or homeowners association, know the rules. How your association is run can make a big difference in how much you enjoy life in a development. You’ll want to know about all rules and restrictions, from pet ownership to who can use the pool. Condo buyers also want to investigate the association’s finances because a poorly run association can mean big assessments later.

Visit your favorite neighborhoods at different times. Most neighborhoods are quiet in the middle of the day. As Glen Craig writes at the personal finance blog Free From Broke: “You need to see what the area is like on a Saturday night. Are there kids and such all out driving with music blasting? What’s it like in rush hour in the morning or in the evening?”

Talk to the neighbors. Ask about the neighborhood and about the houses you’re considering. The neighbors will know if there are foundation problems. They’ll also know about barking dogs, petty crime and the size of utility bills.

Consider which contingencies you’re willing to waive. In the ideal scenario, a purchase offer is contingent on a satisfactory home inspection, approval of your mortgage and an appraisal that equals the purchase price. In most parts of the country, a buyer is smart to keep all those contingencies in the contract. But in a competitive market, you may be competing against buyers who have agreed to waive contingencies. “You never want to [agree to waive them] unless you’re sure you’re 99 percent safe to do it,” Simon says.

Be ready to move quickly once you find the home you want. Good homes that are well-priced nearly always sell quickly. It’s OK to take some time to think before you make an offer, but you might not want to wait a few weeks. Your agent can provide invaluable advice here.

Know what’s important to you. No house will be perfect, so where are you willing to compromise? If you want a specific school district, are you willing to accept a smaller house? If you want to be near the water, could you be happy with a condo? Are you willing to accept a longer commute to get a larger house?

Five basic ways to boost home value before selling

A seller may be able to boost the value of a home by an additional 12 percent with just a few smart pre-listing repairs, according to a new survey of 300 residential real estate professionals by the Consumer Reports National Research Center. Full Article

"You don't have to spend a ton of money to increase the value of your home," said Dan DiClerico, senior editor for Consumer Reports. "Some simple, inexpensive fixes throughout the house can make it more appealing to potential buyers."

Here are some of the fixes that the Consumer Reports survey of real estate professionals uncovered as being the most important:

1. Declutter - Cost range: $0 (do-it-yourself) to $2,500 (professional). Potential return: 3-5 percent

Clear away any clutter and "depersonalize" the space as much as possible.

2. Makeover the kitchen - Cost range: $300 to $5,000. Potential return: 3-7 percent

The kitchen was rated as the most important room to have in top shape before selling, according to the survey. Real estate professionals recommend focusing on minor repairs that center on the function of the kitchen first, such as repairing leaky faucets, loose light fixtures, or blemishes on the countertop. Then, they recommend small enhancements, such as painting the walls, updating the cabinet hardware, adding new curtains, or light fixtures.

3. Freshen up the bathroom - Cost range: $300 to $1,000. Potential return: 2-3 percent

Make simple improvements, such as caulking the tub or re-grouting the floor or adding new bathroom fixtures to brighten up the space. Updating the mirror and lighting also can have a big impact, the real estate professionals surveyed said.

4. Paint - Cost range: $100 (do-it-yourself) to $1,000 (pro). Potential return: 1-3 percent

Sixteen percent of the real estate professionals surveyed said that interior painting is an important part in bringing about a sale of a home. But the seller likely doesn't need the entire house repainted, but maybe just a redo of one or two rooms to curb costs. The two prime candidates for being repainted: Kitchens and bathrooms. Paint in whites and off-whites and a neutral palette - such as grays and beiges-help buyers focus on the home's features more than be distracted by bright colors, agents noted.

5. Exterior touch ups - Cost range: $150 to $7,500. Potential return: 2-5 percent.

Agents recommend that their clients concentrate on basic maintenance first, such as to mowing the lawn, trimming overgrown shrubs, and applying a fresh layer of mulch to the garden beds. They also recommend making any minor repairs, such as replacing cracked siding boards or repointing brick walls. The real estate professionals also recommended taking careful note of any repairs needed with the roof: 31 percent of agents surveyed said the roof is one of the most important parts of the home to have in good shape.

Guide to Residential Styles

Every house has a style. Sometimes it has two or more; because of renovations and new, eclectic mixes, fitting a home into one specific category can be daunting or even impossible. Thankfully, there’s no need to memorize complicated architectural terminology. REALTOR® Magazine has compiled a convenient compendium of common styles. Delve in and learn to highlight the details that give a home character, history, and romance. 

Cape Cod: Some of the first houses built in the United States were Cape Cods. The original colonial Cape Cod homes were shingle-sided, one-story cottages with no dormers. During the mid-20th century, the small, uncomplicated Cape Cod shape became popular in suburban developments. A 20th-century Cape Cod is square or rectangular with one or one-and-a-half stories and steeply pitched, gabled roofs. It may have dormers and shutters. The siding is usually clapboard or brick.

Contemporary: You know them by their odd-sized and often tall windows, their lack of ornamentation, and their unusual mixtures of wall materials--stone, brick, and wood, for instance. Architects designed Contemporary-style homes (in the Modern family) between 1950 and 1970, and created two versions: the flat-roof and gabled types. The latter is often characterized by exposed beams. Both breeds tend to be one-story tall and were designed to incorporate the surrounding landscape into their overall look.

Craftsman: Popularized at the turn of the 20th century by architect and furniture designer Gustav Stickley in his magazine, The Craftsman, the Craftsman-style bungalow reflected, said Stickley, "a house reduced to it's simplest form... its low, broad proportions and absolute lack of ornamentation gives it a character so natural and unaffected that it seems to... blend with any landscape."

Dutch Colonial: This American style originated in homes built by German, or "Deutsch" settlers in Pennsylvania as early as the 1600s. A hallmark of the style is a broad gambrel roof with flaring eaves that extend over the porches, creating a barn-like effect. Early homes were a single room, and additions were added to each end, creating a distinctive linear floor plan.

National: Born out of the fundamental need for shelter, National-style homes, whose roots are set in Native American and pre-railroad dwellings, remain unadorned and utilitarian. The style is characterized by rectangular shapes with (insert link side gabled roofs) or square layouts with pyramidal roofs. The gabled-front-and-wing style pictured here is the most prevalent type with a side-gabled wing attached at a right angle to the gabled front.

Queen Anne: A sub-style of the late Victorian era, Queen Anne is a collection of coquettish detailing and eclectic materials. Steep cross-gabled roofs, towers, and vertical windows are all typical of a Queen Anne home. Inventive, multistory floor plans often include projecting wings, several porches and balconies, and multiple chimneys with decorative chimney pots.

10 Things to Look Forward to in 2015

Ok, technically we are in the new year already but barely, here are 10 exting things to look foward to. Full Article

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1. THE U.S. ECONOMY, HAVING FOUND ITS FOOTING IN 2014, WILL GAIN MOMENTUM IN 2015...

.. even as Europe struggles to stay out of recession, Japan remains sluggish and growth in emerging economies slows. Kiplinger expects the economy to grow 3% or better in 2015. That’s the best annual growth rate since 2005, and up from expected growth of 2.2% in 2014. Worldwide, economic growth is expected to average 3.2% in 2015.

2. AS THE ECONOMY IMPROVES, WAGES WILL TICK UP IN COMING MONTHS...

... with more midsize and small businesses saying they expect to boost pay for employees by 3% or greater. U.S. monthly job gains averaged 227,000 through the third quarter of 2014, and the economy will add jobs at about the same monthly rate in 2015, says global economic forecasting and analysis firm IHS. Unemployment could sink to 5.3% by the end of 2015.

3. BIGGER PAYCHECKS ARE JUST MORE GOOD NEWS FOR U.S. FAMILIES.

The average household debt-to-income ratio is the lowest since 2002. And falling food and gasoline prices are leaving more money in our pockets, cash that can boost consumer spending overall, which accounts for 68% of the U.S. economy—setting up a virtuous circle of growth. Businesses will do their part, increasing spending on plants and equipment by an average of about 7%, up from 5% in 2014. “We’re in a boomlet here in the U.S.,” says Bob Baur, chief global economist for Principal Global Investors.

4. DID WE MENTION OIL AND GAS PRICES?

They’ll reverse their slide by spring as demand rises and some output is trimmed. Kiplinger expects oil to climb to $70-$75 per barrel by March, from $55 now. Firmer gasoline prices are also in the cards, with the national average for regular gasoline climbing to $2.75 per gallon, from $2.35 now. But a new era of lower prices and less dependence on petroleum imports looks like it is here to stay. Net imports will fall below 4 million barrels next year, about 20% of consumption.

5. WE EXPECT THE BULL MARKET IN STOCKS TO CONTINUE STRONG NEXT YEAR.

Yes, a correction is overdue. But investors up to the challenge will be rewarded in 2015. We expect broad U.S. stock market indexes to rise by high-single-digit percentages, but the advance will be more erratic than usual. That would put the Dow Jones industrial average near 19,000 and the Standard & Poor’s 500 stock index in the vicinity of 2,200 at their peaks, up some 9% from recent levels. Add in two percentage points of dividend yield, and U.S. stocks could deliver a total return of 11% or so over the next year.

6. CARS THAT DRIVE THEMSELVES ARE ALMOST HERE.

The Kiplinger Letter forecasts that safer, self-driving cars will be for sale in 2020, if not sooner. Prototypes have shown that the technology works, and major automakers are racing to commercialize it. And automakers are only getting started. Advances likely in just a few years: Laser headlights. Brighter than current lights, they’ll double as sensors to gauge following distances and spot obstacles ahead. Software with artificial intelligence, to control the car and anticipate other drivers’ decisions. New cameras capable of “seeing” lane dividers through snow or fog.

7. AMERICANS ARE IMPROVING THEIR EATING HABITS.

Consumption of fresh foods, including fruits, vegetables, meats, eggs and other dairy products is on the rise, with fewer microwaveable, processed, ready-to-eat meals, according to a new study by the NPD Group. The national survey forecasts sales of fresh foods rising 6% from 2014 to 2018.

8. BIG MEDICAL ADVANCES ARE ON THE HORIZON.

The science of medicine is entering the realm of what once was the stuff of science fiction, fueled by breakthroughs in both technology and research. New drugs that use the immune system to hit cancers of the bladder, lungs, stomach, and skin are coming from Merck, AstraZeneca, Bristol-Myers Squibb and Roche. For heart failure: LCZ696 from Norvatis is on a fast track for approval from the Food and Drug Administration. Also nearly ready to move into surgical suites: Body parts grown from human tissue. First skin, in just two years. Then tubular parts such as blood vessels and windpipes. In five years or so, bladders, stomachs and livers, a tremendous boon for patients waiting for transplants.

9. PREDICTIVE ANALYSIS IS ABOUT TO GET EASIER ...

... thanks to advances in crunching big data. Amid the growing concerns about Internet privacy, hacking and computer warfare, the reams of information gleaned from Web browsers, smartphones, traffic cameras and other sources are enabling businesses, doctors, law enforcement, utilities and meteorologists to better predict future probabilities and trends. The payoff: More-informed business decisions, improved lives, new jobs and welcome economic gains. Younger Americans, especially, accept big data as a way of life.

10. HUMANS ARE POISED TO PEER FARTHER INTO THE HEAVENS THAN EVER BEFORE.

A new space-based telescope, named the Webb after a former NASA head, is in development with an eye toward a 2018 launch. It will be the successor to the Hubble Space Telescope launched in 1990, but with far greater powers. Among its missions: Seeking planets with the potential to support life.

13 tips that will heat up your winter home sale

When we say ‘tis the season, we’re usually not referring to the season to sell your home. That’s because in regions with seasons, the best time to sell a home is typically the spring and summer.

But even in areas where snow covers the ground for months, it is possible to sell your house in winter, and often for a price as good as you’d get in summer. It just takes a winter strategy to match the winter conditions.

“More often than not, homes in the winter will sell for more money,” says Paul Stone, a Redfin real estate agent in Denver. “There’s less inventory to choose from.” He advises winter sellers to be flexible because it’s hard to predict how long a given home will take to sell and the number of showings could depend on the weather.

Redfin analyzed two years of sales, from 2011 to 2013, in a handful of large cities and found that homes listed in winter sold a week faster and closer to the asking price than those listed in other seasons. The analysis, which included traditionally cold cities like Chicago and Boston, showed homes were also more likely to sell within six months of appearing on the market. Full Article

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SHOVEL SNOW OFF THE DRIVEWAY AND WALK

If you can’t keep up with the shoveling on your own, hire a service. And make sure there are no patches of ice. It’s important that prospective buyers can get to your home safely.

CREATE A COZY FEELING

When people step in out of the cold, grab them with the warmth of your home. Apple cider on the stove, fresh-baked cookies, soft music and a fire all contribute to an inviting atmosphere.

USE TASTEFUL HOLIDAY DÉCOR

If your home looks like a Christmas card, it will help convey the warm feeling of a Hallmark commercial. “The houses that are all dressed up for Christmas … they show beautifully,” Shanahan says.

CLEAN GUTTERS, AND MAKE SURE THERE ARE NO PLACES ICE DAMS CAN DEVELOP

You want to demonstrate to a prospective buyer that you are meticulous about maintenance and that spring won’t uncover surprise issues that require repairs.

BRING IN THE LIGHT

During the day, that means opening curtains and turning on lights inside. In the evening, you may need to turn on all the lights – inside and outside – to give your home a welcoming feel.

GET TREES AND SHRUBS TRIMMED

While the winter landscape is not as inviting as the summer landscape, you want to keep your yard and the flower beds, trees and shrubs that surround it clean-looking.

PUT EVERGREEN PLANTS IN POTS AROUND THE DOOR

A touch of green goes a long way on a gloomy day. Ask your local nursery which plants would do best in your winter climate.

PAINT THE FRONT AND GARAGE DOORS

A layer of paint on doors and trim, if needed, can make the house look clean and neat. Even in winter, curb appeal matters

MAKE SURE THE PATH TO THE LOCKBOX IS CLEAR

If you are using a lockbox for real estate agents to enter your home, make sure they can get to it without tromping through the snow.

TAKE PICTURES ON A NICE DAY

Most buyers start their home search on the Internet, which makes the photos a key tool for selling your home. Be prepared to wait for better weather to get better photos. “A beautiful, sunny day with nice, clean snow makes it attractive,” Shanahan says.

PRICE YOUR HOME RIGHT

If you overprice your home, agents and buyers are likely to assume you’re not serious or unrealistic and won’t even bother to look at it. Yes, you can always lower the price later, but the longer the home stays on the market, the more people are going to think something is wrong with it.

OFFER INFORMATION ABOUT SYSTEMS THAT CAN’T BE INSPECTED

If the roof is covered by snow, an inspector may not be able to get a good look at it. Offer prospective buyers information about when the roof was installed and any previous inspections. Offer to put money in escrow for repairs that can’t be completed in winter.

BE PREPARED FOR WEATHER DELAYS

Snowstorms can delay inspections or even the transmission of documents if the people involved can’t get to work. But, Shanahan, says, the rise of electronic transactions has cut down the amount of driving required to close a deal.

Where will mortgage rates go in 2015

If you plan to buy a home, sell a home or refinance your home, you need to consider what might happen to mortgage rates in the coming months.

The interest rate on the benchmark 30-year fixed mortgage started the year at right around four percent.

Greg McBride, chief financial analyst at wwwww.bankrate.com, expects rates to go a little lower during the first part of the year.

"So this is a great opportunity, if you haven't already refinanced your mortgage, to do so now,” McBride said. “A lot of people have either purchased homes in the last year-and-a-half or simply didn't have the equity to refinance the last time rates were at these sub four percent levels. They’re now in a position to do so."

McBride predicts greater volatility as we move into the middle of the year and learn more about what the Federal Reserve plans to do with interest rates.

“I think we’re going to start to see mortgage rates trending higher - not big time, just kind of a slow grind higher,” he said. “I do expect mortgage rates are going to stay well below the five percent mark throughout the year."

Even if rates go that high, that shouldn't stop a well-qualified buyer, McBride told me. Full Article 

5 trends coming to the smart home in 2015

The future of the connected home is continuing to evolve, and with more startups pitching products, the ship date of older crowdfunding campaigns hitting customer homes and big name companies warming to the space, I’m starting to see a few trends come together for 2015. I’m sure we’ll see more at CES in January, but based on conversations I’ve had and products I saw at our Structure Connect show last week, here are a few things you can expect on the connected home front. Full Article


Bluetooth makes lighting a snap: At long last, products are coming on the market that will let you use Bluetooth to control light bulbs, outlets and more. These products are using mesh networking to make installing a connected light switch as easy as sticking a new plate to the wall using double-sided tape. 

To talk to your home, you’ll talk to your phone: Since our phones are equipped with awesome natural language processing already, big companies such as Nest and Apple and small ones like Nucleus and Ubi will use them to let people control their homes via voice. 

Low-power Wi-Fi is coming even if the standard isn’t ready: Two companies, Homeboy and Roost were offering different products that took advantage of low-power Wi-Fi. The benefits of such a set up are pretty obvious — you don’t need a fancy hub to control a device and it can work for almost everyone. The Roost is a connected battery that lasts for about 5 years and can convert an existing smoke detector into a connected smoke detector. 

You won’t need a home hub to automate your house: This year’s hot device, the home hub that combines a bunch of radios with a software platform to let people control multiple connected devices is going away.

Get ready to pay: The business models that have been lacking in several popular services are beginning to crystalize. From Linden Tibbets. the CEO of If This Then That disclosing that he plans to have consumers pay for premium IFTTT services, to an in-depth discussion from IControl’s CEO on business models for the smart home, it’s clear that while companies have been focused on the user experience, the revenue models aren’t far behind.