Home price appreciation is growing, and many baby boomers are intimidated by rising prices, causing some to stay in their over-sized family homes. Some experts forecast things to change over the coming years, expecting the baby boomer generation to move out of their current single-family homes and downsize to apartments, condos, and smaller homes. Data suggests that downsizing is not as common as it used to and may come later in life than in years past. Experts expect the big baby boomer downsize movement to take place within the next ten years when the generation hits the age where downsizing is more a necessity. More here

As peak buying season comes to a close, many home sellers begin to feel concern over selling their home quickly during the offseason. While making a good impression, being friendly, and being easy to work with are important factors to help sell your home fast, there are a few other steps a home seller can take to ensure a speedy sale. Price your home right in the beginning; pricing your home lower will increase interest, and buyers will take your offer more seriously. Increase curb appeal; planting a few flowers outside and painting the front door can make a major difference. Prospective buyers will often drive by your home first to look in-person, and you want to make sure they have a good impression. Clean your home and depersonalize; make sure your home is spotless, and when you know people are coming by to take a look, take down family photos and other personal effects. You also should remove any pets before the showing. The point is to allow homebuyers to be able to see themselves in your home. More here

Given the inventory issues many local housing markets are still experiencing, if you're a house hunter faced with the dilemma of choosing between two attractive, affordable properties - well, that's one of those good problems to have.

Personal preferences and outlying factors will always play a role, but if you want to weigh the pros and cons of each home in question, there are eight criteria identified by the National Association of Realtors that should impact a decision above all else. If you honestly assess each property's strength in these areas and one emerges as a clear-cut, quantifiable winner, your stress may be simplified. Here are the primary factors worth considering, along with any unique circumstances that apply to your family, your job or lifestyle needs.

• What's the cost? The cost of a home doesn't always come down to the price tag alone. Consider appreciation potential and the amount of money that will need to be put into maintenance and utilities, as well as monthly mortgage expenses, homeowners insurance, title insurance and closing costs. Then, determine whether one stands to cost you significantly more than the other in either the long or short term.
• How big is the space? Whether or not you and your family can comfortably enjoy a home over the course of the next decade is sometimes hard to discern. But consider things like the size of each bedroom, the amount of outdoor space and whether or not there's ample room for all your existing furniture and possessions. Streamlining the amount of stuff you have can be a positive development, but if your family is likely to grow - both literally and figuratively - you'll need to account for which home best fosters that sort of expansion.
• Community concerns. Does one home sit in a much better school district than the other? What do local crime statistics tell you? What sort of access to public transportation will you have, and what sort of amenities, such as parks, restaurants and shopping, will improve your quality of life? In other words, envision yourself settling into the area well into your family's future - if all else is even, this can serve as quite the determining factor.
• Consider the condition. As part of your price analysis, you should assess what sort of work needs to be done and how much it will cost. But there are other repercussions for purchasing a home that might need repair work. If it features older appliances or outdated insulation, those will not only cost you money through excessive energy use - they could also complicate the resale process down the road.
• Return on investment. In the same vein - how likely is one property to accrue value over the course of your time spent in it, compared with the other? Take a look at comparable rates of appreciation in the area in an effort to gauge long-term payoff potential.
• Day-to-day logistics. How far will you have to drive to get you or your children where you each need to be on a daily basis? If one property's location significantly cuts down on commute times, ultimately helping you save gas and money, that's not to be underestimated.
• Potential deal-breakers. Perhaps as weighty as any other criterion aside from price and size is the pivotal "problem area" factor. If one home has a major recurring issue - say, a basement that's highly susceptible to floods - that can be enough to sway a decision in the other direction. It depends on the nature and seriousness of the issue, of course, but you'll have to attempt to quantify the cost and hassle that could be associated.
• Add-on fees. If one home is part of a Homeowners Association, you'll owe HOA dues on a monthly basis. This probably won't make or break your decision, but it's a cost that adds up.

FICO Model Adjustments Could Turn More Borrowers into Buyers

As peak buying season comes to a close, many home sellers begin to feel concern over selling their home quickly during the offseason. While making a good impression, being friendly, and being easy to work with are important factors to help sell your home fast, there are a few other steps a home seller can take to ensure a speedy sale. Price your home right in the beginning; pricing your home lower will increase interest, and buyers will take your offer more seriously. Increase curb appeal; planting a few flowers outside and painting the front door can make a major difference. Prospective buyers will often drive by your home first to look in-person, and you want to make sure they have a good impression. Clean your home and depersonalize; make sure your home is spotless, and when you know people are coming by to take a look, take down family photos and other personal effects. You also should remove any pets before the showing. The point is to allow homebuyers to be able to see themselves in your home. More here

Considering the transition from renting to home buying? There are a lot of factors to weigh, not the least of which is determining how to save enough for a down payment without totally hamstringing yourself financially. But there are a number of other considerations, both cost-related and otherwise. Owning a home entails a lot of additional responsibilities, all of which you need to be sure you're prepared for. Some of the most prominent include the following: • Maintenance. No longer will you be able to rely on the services of a landlord or hired hand to tend to minor issues on the property, as you can as a renter. As an owner, you'll need to conduct a cost analysis of every home improvement and renovation, bearing in mind how the upfront expenses that go toward resolving an issue can pay off over time in the form of appreciated value. A well-maintained home is an investment from which you can reap the ultimate benefits, but you'll need to account for the time and money spent on the front end when you're budgeting for your down payment, your monthly mortgage costs and the other assorted fees owed to real estate agents and for insurance. • Logistics and lifestyle. Often, the decision to buy a home is predicated on a shift in priorities or family needs. A new job, a new baby or a desire for more space can prompt a reevaluation and the realization that the current rental unit will no longer cut it. But think practically - if your commute will be dramatically extended because the buying options in your price range will push you further away from your job or your children's school, it may be more efficient to continue renting for the time being. Conversely, if your utmost needs include gaining more space and finding a safer neighborhood for your kids, then the everyday comforts of you and your spouse may be sacrificed in some form. Whatever the overriding factors, it's important not to rush the decision. • The equity equation. Above all else, you need to carefully consider all your home buying options because of the long-term significance of the investment at stake. Conduct your research thoroughly, with particular attention to which homes stand the best chance of accruing long-term value. After all, you want to be comfortable in your space, but you also want the transition from renting to be well worth it.

Appealing to the Modern House Hunter

September 10, 2014

 

Selling a home in 2014 is vastly different from doing so in the pre-Internet age, and even from doing so in 2004, when market values were inflated and prospective buyers didn't have access to the same wealth of information. Today, if you're looking to attract the right type of buyer, you need to be armed with not only an appropriate list price, but the right sort of marketing tools that appeal your property to the modern multiple listing service-savvy shopper.

As a recent MarketWatch piece detailed, selling your home in the post-recession market means being transparent, but also enhancing visual appeal. As members of Generation Y become more prominent industry players over the next decade, understanding the most common research methods and what constitutes a red flag is essential. Here are a few points to bear in mind if you're considering putting your home on the market soon:

• Everything is Google-able. Gone are the days of misleading newspaper listings or even online posts that boast the relative charm and convenience of a neighborhood or downplay the need for a property facelift. Today, any consumer, serious or otherwise, can pull up a Google street view of your home and see it from multiple angles, as well as those of the rest of your block. Similarly, there are resources such as the Kids Live Safe database that are available to anyone who can navigate the web - and that includes almost everyone shopping for a home - so masking the unattractiveness of the house down the street or inflating the acreage available is no longer an option. Get inside the mind of a buyer by utilizing every resource they might access, and then go about creating your listing honestly and accordingly.
• Think practically and realistically. Start by using multiple listing services such as Trulia or Zillow to see how your home and others in the area are perceived - after all, these are the tools with which much of your audience is likely equipped. Then, consider what comparable properties in the neighborhood have sold for and factor in local crime statistics, school district ratings and proximity to things like public transportation and grocery stores - all of which the buyer can confirm, so you can't fudge - and you'll have a clearer idea of an appropriate asking price. Bidding wars still occur, particularly in areas where inventory is tight and sellers still have the upper hand, but in the modern market the buyer's knowledge offers them more leverage than ever before.
• Pictures can be the great equalizers. Selling your home still relies on demand, and the best way to generate demand is by getting people through the door. A well-conceived online listing, buoyed by a carefully crafted photo collection, is instrumental in drumming up that sort of foot traffic. Hiring a professional photographer can be an expense well worth your time and money, as they can help you construct the proper angles and manipulate lighting in the right rooms in an effort to display your home as attractively as possible. Given how much initial research is conducted online, the more photos you have, from as many angles and vantage points as possible, the better your listing will appear. You'll also be eliminating the possibility that buyers will feel duped when they encounter surprises upon visiting in person, thereby satisfying their need for transparency while presenting yourself as savvy, modern and reputable as a seller in today's market. That may not get you offers from everyone who views the property virtually, but it should increase your chances by bringing more people in the actual, physical door.

Given the inventory issues many local housing markets are still experiencing, if you're a house hunter faced with the dilemma of choosing between two attractive, affordable properties - well, that's one of those good problems to have. Personal preferences and outlying factors will always play a role, but if you want to weigh the pros and cons of each home in question, there are eight criteria identified by the National Association of Realtors that should impact a decision above all else. If you honestly assess each property's strength in these areas and one emerges as a clear-cut, quantifiable winner, your stress may be simplified. Here are the primary factors worth considering, along with any unique circumstances that apply to your family, your job or lifestyle needs. What's the cost? The cost of a home doesn't always come down to the price tag alone. Consider appreciation potential and the amount of money that will need to be put into maintenance and utilities, as well as monthly mortgage expenses, homeowners insurance, title insurance and closing costs. Then, determine whether one stands to cost you significantly more than the other in either the long or short term. How big is the space? Whether or not you and your family can comfortably enjoy a home over the course of the next decade is sometimes hard to discern. But consider things like the size of each bedroom, the amount of outdoor space and whether or not there's ample room for all your existing furniture and possessions. Streamlining the amount of stuff you have can be a positive development, but if your family is likely to grow - both literally and figuratively - you'll need to account for which home best fosters that sort of expansion. Community concerns. Does one home sit in a much better school district than the other? What do local crime statistics tell you? What sort of access to public transportation will you have, and what sort of amenities, such as parks, restaurants and shopping, will improve your quality of life? In other words, envision yourself settling into the area well into your family's future - if all else is even, this can serve as quite the determining factor. Consider the condition. As part of your price analysis, you should assess what sort of work needs to be done and how much it will cost. But there are other repercussions for purchasing a home that might need repair work. If it features older appliances or outdated insulation, those will not only cost you money through excessive energy use - they could also complicate the resale process down the road. Return on investment. In the same vein - how likely is one property to accrue value over the course of your time spent in it, compared with the other? Take a look at comparable rates of appreciation in the area in an effort to gauge long-term payoff potential. Day-to-day logistics. How far will you have to drive to get you or your children where you each need to be on a daily basis? If one property's location significantly cuts down on commute times, ultimately helping you save gas and money, that's not to be underestimated. Potential deal-breakers. Perhaps as weighty as any other criterion aside from price and size is the pivotal "problem area" factor. If one home has a major recurring issue - say, a basement that's highly susceptible to floods - that can be enough to sway a decision in the other direction. It depends on the nature and seriousness of the issue, of course, but you'll have to attempt to quantify the cost and hassle that could be associated. Add-on fees. If one home is part of a Homeowners Association, you'll owe HOA dues on a monthly basis. This probably won't make or break your decision, but it's a cost that adds up.