78% of First-time Home Buyers Say Now Is Good Time to Buy

Century 21 Real Estate LLC, the franchisor of one of the world’s largest residential real estate sales organizations, announced the results of its recently commissioned first-time home buyer survey. The survey found that more than three-quarters (78%) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed for the CENTURY 21 First-Time Home Buyer Survey, 68% think now is a better time to buy than six months ago. Prices are the driving motivation for potential first-time home buyers with more than eight out of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% citing that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42%) and “waiting for prices to go down before they seriously consider making a purchase” (48%).

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Should You Go FSBO?

Pronounced “fizzbo,” an FSBO (for sale by owner) is a Realtor acronym for a property that an individual is looking to sell on their own.

To a certain extent, the notion may be driven by tough economic times. With equity evaporating in many markets, it might be a necessity for some sellers to go the DIY route. It is a question brought about by the perception of high cost for very little real work and a nagging sense that, hey, maybe I could do that.

Maybe you can. Maybe you shouldn’t.

The market, motivation, familiarity with the process, knowledge of real estate law, disposition, time, and resources should all be considered before you begin the process of selling your own home.

The Market

They don’t call them buyers and sellers markets for nothing, and, to a large extent, market conditions are often mostly local. A gripping nationwide recession, industry-wide job losses, and lenders’ unwillingness to lend, tend to have nationwide implications. But, even at the darkest of times, there are pockets of prosperity where demand for housing is high. In most cases, even if you over or under estimate the price, the market will eventually catch up to you.

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"Broker price opinions" may be depressing property values

Are lowball valuation estimates on short sales and bank-owned foreclosures artificially depressing property values in neighborhoods across the country?

Growing numbers of appraisers and consumer groups believe the answer is yes -- and are demanding that either Congress or state regulators crack down. Their complaints focus on what are called "broker price opinions," or BPOs, that substitute for appraisals.

Unlike standard property valuations performed by licensed appraisers -- which can run to hundreds of dollars -- BPOs often cost $50 and are performed by real estate agents who may have minimal or no appraisal training and are subject to no regulatory oversight. Realty agents defend BPOs, contending that their extensive knowledge of local market trends equips them to render accurate estimates.

BPOs have become a booming business as foreclosures and short sales have risen sharply. When banks that own foreclosed houses need to put values on them for resale, increasingly they order BPOs that can be delivered quickly at rock-bottom fees.

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HouseMaster Highlights Red Flags for Home Buyers during National Home Inspection Month

HouseMaster, a North American inspection franchisor, reminds buyers and sellers that a professional home inspection is critical when buying or selling a home. As April marks National Home Inspection Month and the start of the peak home buying season, HouseMaster is providing consumers with a simple list of “red flags” to watch out for during the home buying process. Each of these red flags could be a sign of significant issues and defects and each should be thoroughly evaluated by a professional home inspector before potential buyers make an offer on the home.

These are the red flags that home buyers should look out for:

Numerous extension cords: This could be a sign of an outdated electrical system. Today’s electrical needs have grown significantly and as a result the home could require an entire electrical upgrade to meet these new demands. A professional home inspector will be able to assess whether a new panel and wiring is needed or additional receptacles will need to be installed.

Low water pressure or gurgling: If you turn on the faucet and the pressure is low, it could be evidence of a problem with older galvanized piping or inadequate piping. A professional home inspector will indicate the type of piping and estimated age and determine whether or not an entire new plumbing system is required. In many instances, sections of piping can be replaced on an as needed basis to correct the problem.

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What Mortgage Rates Will Do Over The Next 30 Days

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available.

The Bankrate.com survey is for conforming mortgages. It does not apply to FHA mortgages, VA mortgages, jumbo mortgages, or foreign national mortgages. For rate quotes, email me directly.

The group's 30-day prediction for mortgage rates:

• 50% predict mortgage rates will increase
• 25% predict mortgage rates will decrease
• 25% predict mortgage rates will remain unchanged

I am predicting that rates will increase over the next 30 days. My prediction may not be appropriate for your individual situation and it may be wrong, too.

Here's what I told Bankrate.com:

"The summer mortgage rate run-up is underway."

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Contingent Contracts for Selling Buyer's Home

Although it is generally better to first sell before buying another home, sometimes the market conditions are right to buy before you sell. Home buyers who decide to buy before selling often write a contingent contract to purchase, meaning the buyer's home must sell before the buyer is obligated to complete the purchase transaction.

Because contingent contracts are most often a good deal for a buyer and a riskier solution for a seller, many state Realtor associations have devised legal documents that sellers and buyers can use to address contingent contract situations and protect the rights of both parties.

The California Association of Realtors created form COP. Many other states utilize similar language. However, bear in mind that your own state requirements might differ from those of California. California procedures are discussed in this article.

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Mortgage Broker Answers

After you interview your mortgage broker or lender and ask the tough questions, what do you do with the answers? How do you know if the answers you receive are applicable to your situation? Here are the answers acceptable to most borrowers.

1. Answers to Which Type of Loan is Best

Look at the point spread between the interest rates offered on fixed-rate mortgages versus those on adjustable-rate mortgage loans. If the difference is small, say, around .5%, you would be better off with a fixed-rate mortgage.

Interest-only loans are a popular option if you decide to stay in the property for a long period of time, more than five years. Otherwise, the property may not appreciate enough to provide you with adequate equity to sell if you choose this option for a short-term residency.

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Renters get foreclosure relief

It's every renter's worst nightmare: To move into a home or condominium with affordable rent only to find out that the owner has lost the property in foreclosure. The rent money and security deposit are gone, and chances are good that the bank that now owns the property will evict the tenant even if the rent has been paid.

Such sudden evictions have been on the rise due to the dramatic increase in home foreclosures across the U.S. But some tenants will have other options now that Fannie Mae and Freddie Mac have introduced new programs that let renters (and in Freddie Mac's case, former homeowners) continue to occupy the home after foreclosure.

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Walking away from mortgage is costly

Call it the fast unraveling of the American dream.

Americans are losing their properties at an alarming rate. The national foreclosure rate now stands at 3.3 percent, and more than 11 percent of all mortgages are either delinquent or in foreclosure, according to the Mortgage Bankers Association.

In most cases, homeowners end up in foreclosure because of a job loss or a gimmicky mortgage with a rate that resets so high the homeowner no longer can afford to make the payment.

However, some homeowners who can afford their mortgage -- even if they struggle to make the payment -- may be tempted to abandon their dwellings simply to get a financial fresh start.

Such a decision can have dire and lingering financial ramifications, experts say.

"Unfortunately, people can often be most victimized when they're scared about their financial well-being," says Stephanie Bittner, community education and outreach coordinator for Consumer Credit Counseling Service of Delaware Valley.

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Survey: Households Say Now Good Time to Buy

More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy.

Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.

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6 Landscaping Tricks That Wow Buyers

Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.

1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.

2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.

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Long-term mortgage rates hit record low

The 30-year fixed-rate mortgage rate has dropped to its lowest level on record.

The average rate is the lowest in McLean-based Freddie Mac's weekly survey dating to 1971. Freddie Mac (NYSE: FRE) says its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.

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A Homebuyer's Guide To Working With A Seller's Agent

Buying a home for the first time involves collaborating with a seller's agent or subagent. It is crucial that you understand how things will work between you and the subagent because these people act as representatives to the seller and are therefore expected to bring you to the deal. As a seller's agent, they are entitled to a commission and have certain duties and obligations.

Each state may have distinctive regulations when it comes to home buying. Similarly, the national law has certain prohibitions relative to it. As suggested by the author of the book "100 Questions Every Home Buyer Should Ask", home buyers must make an effort to read thoroughly all the documents such as agent's forms and disclosures before signing to fully understand the services being offered. There are several things that a seller's agent may or may not be allowed to do in your favor:

The seller's agent cannot disclose the list of comparable home's prices in the area. Often referred to as 'comps', a compilation of similar homes in the area will be given to you. Comps usually consist of listing information and list prices. This is necessary to ensure that an unreasonable price is avoided once negotiation takes place.

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Higher Prices May Follow Home Sales

Sales of new and existing homes are picking up month over month, and prices may soon follow. But the crosscurrent is whether unemployment will continue to rise, says USC real-estate economist Delores Conway. Stacey Delo reports.

Short Sale Mortgages

Question: What Happens in a Short Sale When You Have Two Loans?

A reader asks: "Our home is worth less than we owe against it. We have a first mortgage of $85,000 and a second mortgage of $55,000. Our agent says we won't get more than $85,000 if we try to sell it. What happens to the second loan in this instance?"

Answer: Doing a short sale is hard enough, quite frankly, but it's even harder when you have two loans -- it's twice the headache. I feel your pain. Because not only do you need the cooperation of the first lender, the second mortgage holder needs to release that loan as well.

In your case, you owe $140,000 on a home that is worth $85,000. After paying off the first lender, you will still be short $55,000. Not to mention closing costs.

First, let's take a look at what happens in foreclosure:

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California home sales in Feb. up 83%, unsold inventory index falls to 6.5 months

California's unsold inventory index for existing, single-family homes in February was 6.5 months, less than half the 15.3 months for the same period a year ago, while the median number of days it took to sell a home was 51.5 days compared with 69.3 days.

The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Overall, home sales increased 83 percent in February in the state compared with the same period a year ago, while the median price of an existing home fell 40.8 percent, the California Association of Realtors reported.

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February new home sales rise unexpectedly, driven by sales in the West, South

New home sales rebounded -- and jumped 7 percent in the West -- unexpectedly last month, but were still the second-worst on record and remained well below last year's levels, according to data released today.

The results were the first increase since last July. They provided some hope that developers have slashed prices and construction to such a large extent that sales have finally hit bottom and the worst may be past. Prices, however, are likely to remain weak for months as builders continue to clear out their stock of unsold homes.

"We are prepared to hazard the view that the post-Lehman meltdown is now over and the market is stabilizing," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics, referring to last fall's collapse of investment bank Lehman Brothers and the subsequent Wall Street plunge. "That's not the same as a recovery, but it is better than continued declines in sales."

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MLS

MLS stands for multiple listing service. Every home for sale listed by a real estate agent, unless it is specifically exempted from MLS, will be listed in MLS. However, only real estate agents and other professional affiliates can access MLS, but that doesn't mean a home buyer or home seller can't get the same information -- just not directly.

Back in the old days, like the 1970s, MLS information was available in print format. Books were published monthly; updates weekly. It was quite heavy and cumbersome to haul around! Fortunately, today it's online.

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New rescue effort called key to resuming lending

Financial markets roared ahead Monday as investors reacted with near-euphoria to the Obama administration's new trillion-dollar plan to stabilize banks by relieving them of their troubled assets and risky loans.

But even as markets exulted, conflicting interests among participants in the program — banks, investors and taxpayers — were emerging, leaving in doubt the fate of a program meant to revive bank lending and in turn reinvigorate the overall economy.

Some banks are resisting government pressure to sell assets at prices they believe to be too low. And despite the risk of an outcry from Congress, the Treasury this weekend made the program more attractive to private investors, according to industry and some government officials. Treasury officials said the last-minute changes were not intended to sweeten the deal.

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Stage a Living Room

Question: Should We Stage Our Living Room or Leave the House Vacant?

A reader asks: "Is it better to show our home vacant or should we try home staging? I think our living room looks a little bare and doesn't really convey how wonderful the space could be, but my husband thinks home staging is too expensive."

Answer: In most home selling situations, a home shows better with furniture. Staring at a ceiling, floor and four empty walls make it hard for buyers to visualize their own belongings in the home. If buyers can't picture themselves living there, they are not likely to buy it.

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Obama administration getting ready to buy a trillion dollars worth of bad bank loans

WASHINGTON Struggling to contain the worst financial crisis in seven decades, the Obama administration wants to buy billions of dollars of toxic assets from banks to ease borrowing for consumers and businesses.

Some industry officials familiar with the details said Saturday they expected the approach would try to remove as much as $1 trillion from banks' books. An announcement from Treasury Secretary Timothy Geithner could come as early as Monday.

If banks are not burdened by the soured loans, then they would be in better shape to resume more normal lending.

According to administration and industry officials, the plan would rely on the Federal Reserve and the Federal Deposit Insurance Corp. to supplement the government's $700 billion bailout fund. The uproar over the millions of dollars in bonuses for employees at troubled insurance giant American International Group Inc. has dimmed prospects for getting more bailout money from Congress.

The officials, who spoke on condition of anonymity because the details have not been announced, said Geithner's plan will have three major parts:

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Major banks are heading into the jumbo arena

New money is about to flow into an area of the real estate market that has been hardest squeezed by the credit crisis: mortgages too large to be purchased or backed by Fannie Mae, Freddie Mac or the Federal Housing Administration.

Although heavily concentrated in California, portions of Florida and the Northeast, higher-cost neighborhoods throughout the country traditionally have depended upon the ready availability of "jumbo" mortgages to finance houses. But with the collapse last year of the private mortgage bond market on Wall Street, home buyers, builders and refinancers who relied on jumbo financing were left with few sources - except at punitively high interest rates and huge down payments.

That's about to change. Major banks are heading into the jumbo segment, originating big loans at affordable rates - not for Wall Street bond traders but for their own investment portfolios.

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First-time home buyers moved by tax credit

The first-time home-buyer tax credit may be motivating some to take action and buy a home this spring, according to ZipRealty survey results released this week. Sixty-two percent of first-time buyers said that the $8,000 tax credit is giving them an incentive to buy in 2009.

Of those who weren't motivated by the credit, 29% think it's not enough money to make a difference, 28% didn't think they would qualify and 24% think home prices will continue to decline.

But perhaps not enough is being done to promote the perk, according to some in the home-building industry. In a recent article on "Nation's Building News," a publication of the National Association of Home Builders, one industry executive suggested just that.

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The Pros and Cons of Easing Access to Credit

Over the past few weeks, President Obama has unveiled multiple plans for aid to small businesses, including lowering loan fees, increasing guarantees on government-backed loans, and buying up to $15 billion in Small Business Administration-backed loans. But will the new programs unfreeze credit as they are intended to do? And how can entrepreneurs take advantage of the warmer climate if they do?

Sanford Ehrlich, executive director of San Diego State University's Entrepreneurial Management Center, says the lending initiatives are likely to provide some relief, but he worries it won't be enough to help companies that are really struggling.

"Anything that will increase lending will be good for small business, but you have to be a fairly liquid small business to take advantage of this program. If you have too much inventory, too little cash flow, you're currently carrying debt that's been called, or balloon payments are staring you in the face, adding more debt to your current situation isn't going to help," Ehrlich says. "So many small businesses are in serious trouble that the number this will help will be limited."

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Statuses of a property

This property is “sold” may or may not mean it will close. In Santa Clara County, MLSListings Inc. service the local multiple listing service including Santa Clara County, San Mateo County, San Benito County, Santa Cruz County, Monterey County, and San Francisco County. Realtor® has used different status very loosely. A sold rider on top of the yard post should not mean contingencies are still yet to be removed. Let’s take a look at the different statuses

An active listing means the house is available on the market. It also meant all the required paperwork is signed by all owners.

Pending continue to show with release clause is probably the most confused status. There is a ratify contract between buyer and seller. However, buyer has made the offer contingent upon selling and/or closing existing home. Seller can elect to accept another offer if the first buyer is not able or willing to remove the sale of property contingency in writing.

Pending Continue to Show seeking Backups status is somewhat self explanatory. Buyer does not need to sell their existing home. Buyer is yet to remove Property Inspection and/or the loan contingency.

Pending do not show should means all the contingencies in the contract are waived by the buyer.

Closed status is when a final sale has occurred. The ownership is transferred to the buyer.

Expired status is when the listing contract expired.

Canceled status is when the contract is canceled. However, it can be unconditional or conditional cancelation.

Withdrawn status means the property is no longer on the mls but a valid contract still exists with the listing broker.

Home sales show steady upward climb

Home sales beat the year-ago mark for the sixth straight month in February, with a total of 5,032 new and resale houses and condos closing escrow in the nine-county Bay Area last month.

The number was essentially unchanged from 5,050 in January but up 26.1 percent from 3,989 in February 2008, according to San Diego-based MDA DataQuick.

In Santa Clara County 1,079 homes were sold, compared to 984 in February 2008. The median price was $408,750, down 37.90 percent.

In San Mateo County there were 311 homes sold, down from the 343 a year ago. The median price was $502,250, down 22.30 percent.

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What is a Foreclosure ?

Home buyers who want a good deal in real estate invariably think first about pursuing foreclosures. Buyers have this picture in their mind of a cute little house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality.

Why Do Sellers Go Into Foreclosure?

Sellers stop making payments for a host of reasons. Few choose to go into foreclosure voluntarily. It's often an unpredictable result from one of the following:

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Ready to Make a Purchase Offer ?

Making a purchase offer and actually buying a home are generally two different actions, but home buyers sometimes confuse the two. Especially in states such as California where the purchase offer is not the final negotiation due to contingencies in contracts.

In some states on the East Coast, it is common to write a letter of intent to purchase and, in many ways, it seems the more civilized way to buy a home. However, many other states contain provisions in standard purchase contracts that let a buyer cancel the contract and get back their entire earnest money deposit.

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How Will Foreclosure Effect Credit Scores?

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.

FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.

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Deducting private mortgage insurance payments

Homebuyers who don't put at least 20 percent down when they purchase a residence usually have to buy private mortgage insurance, or PMI, on that home loan. PMI is a policy that, as a homebuyer, you pay for, but it protects your lender in case you default.

For most, such insurance is simply part of the price of owning a home.

But some homeowners who purchased their primary residences or second homes in 2008 can claim a tax deduction on PMI premiums.

The new tax break was tucked into the Tax Relief and Health Care Act of 2006 and originally applied to policies on home loans taken out in 2007. Almost exactly a year later, PMI-paying homeowners got more good news. At the end of 2007, the PMI deduction was extended to certain premiums paid in 2008 through 2010.

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What Are Material Facts and Home Disclosures?

By law, real estate agents cannot fill out any sellers' home disclosures unless the agent is the seller or a party to the transaction. However, that doesn't stop some naive agents from completing disclosures on behalf of their clients and opening themselves up for potential lawsuits. After all, it's mostly lawsuits that have prompted the creation of many of the disclosure forms agents ask sellers to complete. If your agent can't tell you, ask a lawyer if you need to sign every disclosure handed you.

Federal Disclosures
Every state has its own laws regarding disclosures, so the forms will vary depending on where you live. Download Sellers' Disclosures.

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Facts About Veterans Administration Home Loans

What is a VA loan? Who qualifies?

Banks and other private mortgage companies make a special type of home loan to veterans of the US Armed Services. A portion of each loan is guaranteed by the Veterans Administration (VA), and protects the lender's investment if the borrower defaults.

VA Home Loan Lingo

• The guaranteed amount of a VA loan is called an entitlement.
  
• The current maximum entitlement for loans up to $144,000 is $36,000, with the exact figure determined by your loan amount.
  
• The maximum entitlement for VA home loans over $144,000 is $60,000.

An entitlement is not a cash payment to you or to the bank. It is the amount the VA promises will be paid to the lender if you default on your loan. Should that happen, the VA may pursue you to recover those funds.

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What Stays With House After Foreclosure

Personal property is that which is not real estate. However, fixtures are real estate because they are not personal property; they are affixed to the land, to the house, which means fixtures stay with the house.

But that doesn't stop some desperate home owners from smashing walls to rip out Romex wiring or copper pipes and selling them for scrap in back alleys. Some misguided home owners, angry at the bank for foreclosing, think it's somehow permissible to turn the home into a total nightmare.

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Powerful Tips For Selling Your Home

Maybe you're moving to a larger home to accommodate a growing family, relocating for a new career opportunity, or purchasing a townhouse for retirement. Whatever the reason for the move, you'll need to take the necessary steps to sell your home for the best possible price, within a reasonable amount of time. Where do you begin?

If you're like most people, you'll start by seeking assistance from a professional. A local real estate sales associate, who knows your neighborhood, can help you determine a fair market price. The sales associate should also recommend the extent to which you should make repairs or improvements to your house.

In order to select a real estate professional who's right for you, ask family, friends and neighbors for referrals. Attend open houses and interview several sales associates to find out how professional or experienced they may be. Get a written outline of how they plan to market your property and the services they will offer you.

Once you've identified a qualified professional, the rest is chemistry. Is the sales associate someone with whom you would like to work closely? Do you feel comfortable with the sales associate as your partner, working with you to give you advice and acting as your representative? Does he or she practice a consultative selling approach, focusing on the long-term client relationship and on the importance of exceeding client needs and expectations or is he or she caught up in the proverbial 'hard sell?'

The brokerage firm that your agent is associated with is also important. Research the firm's success rate and commitment to quality service. Does it survey existing clients in order to ensure customer satisfaction? What are the results of those surveys? How in tune are they with consumer needs? Do they offer guidance with mortgages or any discounts for other home related or moving services?

Determining your home's fair market value is one of the most important decisions you'll make during the home-selling/buying process. Your sales associate can help you set a fair price based on local market conditions. For instance, she or he will provide sale prices and other statistics of homes similar to yours that have recently been sold. Prospective buyers will be comparing your home to others on the market. Therefore, setting a comprehensive price can determine if your property will or will not sell.

For the first offer made, it's rare that the prospective buyer matches the asking price. If the offer is reasonably close to the asking price, carefully consider the offer before you consider turning it down. Curiously, it's the first offer that can often be the best offer. If the first offer is unacceptable to you, it may in your best interest to have your sales associate respond with a counter offer. Whenever considering an offer, ask yourself if you would purchase the property for the amount being offered. Always be willing to negotiate, especially if the prospective buyer is pre-qualified for a mortgage.

Once you decide what terms are acceptable, let your sales associate negotiate with the prospective buyer to work out the best agreement for you. You'll need to be patient while the buyer arranges financing and as the real estate company compiles and prepares pertinent data.
Careful planning and sound advice from a real estate professional can make selling your home a very satisfying experience.

DTI Ratios: What Homeowners Need to Know

Ask homeowners about their DTI (debt-to-income) ratios, and they’re likely to respond with something like, “My what ratios?!” However, when distressed homeowners are sizing up their foreclosure options, they need to brush up on DTI ratios. Lenders will be scrutinizing these ratios to determine homeowner eligibility for loan modification and other debt relief.

Homeowners need to know that their DTI ratios are crucial to determining an affordable house payment. The current government plan defines an affordable house payment as one that is no higher than 31% of the homeowner’s front-end DTI. In other words, the house payment or PITIA (principal, interest, taxes, insurance, and any association fees) on the first mortgage cannot exceed 31% of the household’s gross monthly income.

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Three Ways to Look at Days On Market

It’s not uncommon to hear the media in their bad-real-estate-news reports to say, “Average Days on Market is climbing to new record highs.” Unfortunately, tracking “average” anything in the real estate market can be fraught with danger. What home is average? Are there other ways? Let’s explore.

1. Average (Mean) Days on Market VS.

2. Median Days on Market

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Is Your Landlord in Foreclosure

Tenants who have so much as an inkling that their landlord might be facing foreclosure should not waste one more minute before finding out. Foreclosures are a public record. But as a renter, you don't need to comb the public records every day to see if your landlord is making the mortgage payments.

If you are a tenant thinking about renting, first find out if your landlord has refinanced or purchased the property recently. That recordation could be a warning sign. You don't want to wake up one morning and find the sheriff at your door, saying you need to move out.

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Top 10 Home Showing Tips

When you show your home, you want to engage the buyer emotionally because the decision to buy is based more on emotions, and less on logic. Give the buyer permission to say, "Yes, I want to buy this home," by staging, accentuating your home's positive attributes, and do not draw any attention to the negative aspects.

Besides, there will be plenty of time after the deal is signed to talk about the drawbacks.

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February home sales in Santa Clara County up 35%

The Santa Clara County housing market is rebounding as low interest rates and more affordable home prices motivate more shoppers.

The number of homes sold in the county in February stood at 764 -- 581 single family homes and 183 condos -- a 35 percent increase over a year earlier when the number was 565, according to data released by MLSListings Inc.

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Getting Through the Home Inspection

Home Selling Advice

Nearly all home buyers hire a professional home inspector to take a close look at their new house before closing. You can speed things along by analyzing the condition of your home and making necessary repairs now, before the house is under contract.

Whole-home inspections cover numerous systems within the house, but there are a handful of hot-spots that seem to worry buyers the most:

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Counter Offers at Full Price

In seller's markets, it's expected that a seller will write a counter offer at list price. That's because the seller knows if one buyer won't come up in price, there are probably a dozen other buyers who will agree to pay full price.

But sellers might also issue a counter offer at full price in a buyer's market. Even though surrounding homes may sell at less than list price, some homes are worth full price if the home pricing is fair.

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Avoiding Bad Home Inspectors

Like with most professions, you will find qualified and unqualified individuals calling themselves a professional. Home inspectors are no different. In some ways, it's even more difficult to differentiate the good home inspectors from the bad home inspectors, primarily because few states regulate or license home inspectors.

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Housing Inventory Snapshot - February 2009

Click Here To Download A Free Copy of "Housing Inventory Snapshot" For The Month of February. This report shows a break down of Average List Price, Median List Price, and Average Days on Market. This report covers Santa Clara County and San Mateo County both Single Family Homes and Condo/Townhome. It further breaks down under and over $1 Million for Single Family Homes and under and over $600,000 for Condo/Townhome. Furthermore, it contains average national mortgage rate.

The Smart Way to Look at Home Improvements

What home improvements really pay off when the time comes to sell your house?

That’s an important question for any homeowner contemplating moving or remodeling. And the only possible answer is a somewhat complicated one.

That answer starts with the fact that really major improvements – room additions, total replacements of kitchens and baths, etc., -- rarely pay off fully in the near term. It ends with the fact that small and relatively inexpensive changes can pay off in a big way in making your home attractive to buyers if your decision is to move now.

It’s a simple fact, consistently confirmed across America over a very long period of time, that even the most appropriate major improvements are unlikely to return their full cost if a house is sold within two or three years.

Does that mean that major home improvements are always a bad idea? Absolutely not. It does mean, though, that if your present house falls seriously short of meeting your family’s needs you need to think twice – and think carefully – before deciding to undertake a major renovation. Viewed strictly in investment terms, major improvements rarely make as much sense as selling your present home and buying one that’s carefully selected to provide you with what you want.

Even if you have a special and strong attachment to the house you’re in and feel certain that you could be happy in it for a long time if only it had more bedrooms and baths, for example, there are a few basic rules that you ought to keep in mind.

Probably the most basic rule of all, in this regard, is the one that says you should never –unless you absolutely don’t care at all about eventual resale value – improve a house to the point where its desired sales price would be more than 20 percent higher than the most expensive of the other houses in the immediate neighborhood.

Try to raise the value of your house too high, that is, and surrounding properties will pull it down.

Here are some other rules worth remembering:

Never rearrange the interior of your house in a way that reduces the total number of bedrooms to less than three.

Never add a third bathroom to a two-bath house unless you don’t care about ever recouping your investment.

Swimming pools rarely return what you spend to install them. Ditto for sun rooms – and finished basements.

If you decide to do what’s usually the smart thing and move rather than improve, it’s often the smaller, relatively inexpensive improvements that turn out to be most worth doing.

The cost of replacing a discolored toilet bow, making sure all the windows work or getting rid of dead trees and shrubs in trivial compared with adding a bathroom, but such things can have a big and very positive impact on prospective buyers. A good broker can help you decide which expenditures make sense and which don’t, and can save you a lot of money in the process.

10 Timely Home-Related Tax Tips

Tax season is upon us, and homeowners everywhere will reap the benefits of tax breaks and incentives. Homeowners and potential home buyers should know what expenses are deductible and the ins-and-outs of new tax laws, says FrontDoor.com.

1. Deduct the interest you pay on your home loan on your tax return. A mortgage interest deduction reduces your taxable income. And because your mortgage payments for the first few years are heavily comprised of interest, they are almost entirely deductible.

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6 Tips for Home Owners Who Turn Into Landlords

Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say.

Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.

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House Passes Mortgage Bankruptcy Bill

The U.S. House approved legislation on Thursday that will allow bankruptcy judges to lengthen terms, cut interest rates and reduce the principal owed by bankrupt borrowers.

The so-called "cramdown" bill (the actual name of the bill is the "Helping Families Save Their Home Act") passed by a margin of 234-191. The legislation was modified to become more lender friendly; it requires borrowers to certify that they provided their lenders with financial information and gave them time to provide other alternatives.

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What's an Average Term for a Listing Agreement?

I venture to guess that most home sellers don't pay a lot of attention to the length of time noted as their listing agreement term; they just sign the listing.

Maybe it’s because lots of sellers think a 90-day listing is standard. Well, it’s not. There is no standard listing term.

Sellers are free to negotiate the term of their listing, but don’t ask an agent to list for 30 days unless the average DOM on market is a week or less. And the days of fast turnover, for most of the country, are history. Besides, if you mistrust or dislike your agent enough to limit market exposure through that agent to 30 days, you’re better off looking for somebody else from the get-go. If you ask for a listing term of 30 days, don’t expect the agent to spend any money on advertising or marketing, which is what will bring you the most market exposure and likely a higher price.

Here are several alternatives to choose from, plus reasons to increase or decrease the length of time your home is listed for sale. I’ve even built in a safeguard for agents who want to take longer listings and sellers who don’t want to sign those longer-term agreements . . . read more about Listing Agreement Term.

Modifying Your Loan Under the Home Affordable Modification Plan

If you can’t qualify to refinance under President Obama’s Making Home Affordable plan (the details were released today; see more info on the Obama refinance plan), you might still have a chance to lower your monthly payments by doing a loan modification. This portion of the plan is aimed at people who are — or who soon will be – having a tough time paying their mortgage, but who would be able to afford their home if the interest rate on their mortgage was lowered.

Who qualifies?

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Obama plan aims to help 'responsible' homeowners

Reporting from Los Angeles and Washington E. Scott Reckard -- The Obama administration's plan for a housing rescue aids two groups of homeowners largely left out of previous efforts and aims to deny benefits to those who have been unwise or greedy, according to details released Wednesday.

The plan would greatly expand mortgage relief to those who have not missed payments and those whose homes are worth less than their mortgages.

What the program will not do, administration officials insisted, is reward those who dug themselves into a hole through ill-advised actions.

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Fix Up or Sell As Is

Question: Should I Fix Up My Home or Try to Sell As Is?

A reader asks: I've spent a lot of time and money doing exterior remodeling of my home, plus a sizeable remodel of the master bath. However, the rest of my 22-year-old home needs attention inside. The bath upstairs has dry rot and is dated. The kitchen, likewise, is dated. We have fairly new appliances, but the counters and cabinets probably need replacing. Should I fix up my home or try to sell it as is?

Answer: This is one of those questions where the answer depends on variables such as condition of competing inventory, whether it's a hot, cold or neutral real estate market and the likelihood of return on investment.

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Easing Your Way Into Homeownership

For many renters, the first step in buying a home is becoming educated about the process. If you’re like many people considering a home purchase, you’ve spent nights and weekends poring over your local real estate section. You’ve talked to friends and relatives about their experiences. Maybe you’ve even purchased a book or tow to help you become more familiar with real estate terminology and the various types of mortgages commonly used today.
Coming up with a down payment and finding a loan that meets your needs are the greatest hurdles faced by first-time homebuyers. So, you may even have leafed through stacks of brochures and flyers from lenders offering down payments that are far less than the 20 percent you’d always thought you’d need to save before you could buy. With so many excellent first-time buyer programs to choose from these days, you practically need to be an expert to sort through them all.
That’s why if you’re a first-time homebuyer seeking a low down payment loan, you’ll save time by selecting a professional real estate agent who is experienced in working with people just like you in the area where you plan to buy. An agent who frequently assists first-time buyers will know from experience which lenders in your area offer a low down payment program that will most closely match your needs.
A professional real estate agent can help you determine whether you are likely to qualify for these special programs, since participation in some may be limited to buyers under a certain income level or for the purchase of homes below a certain purchase price. Your agent also will be able to tell you whether there are other requirements you must fulfill in order to be considered. With some programs, for example, you must attend an educational seminar before you can be considered for one of these low down payment loans.
`It’s important that your agent become familiar with your current financial situation. Before you meet with your agent to discuss your financial situation and housing needs, you’ll want to collect some basic information to make the process easier. Be prepared to show recent paycheck stubs or pay vouchers to certify sources of income; a complete list of current credit card, auto and other consumer credit payments you make each month; and recent bank and savings statements. These documents will help you and your agent determine how much home you can afford. It’s also important that you disclose any prior credit problems or late payments. Your agent may be able to suggest ways to remedy any negative remarks on your credit report that could disqualify you from a low down payment loan program.
In addition, because most lenders w2ill require that you have several months of house payments in the bank as a reserve, your agent may be able to suggest ways you can increase your savings in the weeks and months leading up to your home purchase. Don’t forget that some programs allow you to apply a cash gift from a family member to cover the required down payment and losing costs.
Your agent also may know a motivated seller who would be happy to assist you in accomplishing your home purchase by caring a second mortgage. A second mortgage is helpful because it reduces the amount of the first mortgage you need to obtain. In some cases, a second monthly payment and generally is required to protect the lender when a down payment is less than the standard 20 percent of the loan amount. Even if your seller isn’t willing to take a second mortgage to complete the sale, he or she may be willing to pay your closing costs, which will reduce the amount of cash you need to have on hand up-front.
With interest rates edging up, innovative mortgage financing programs that require a low down payment are even more important than ever to first-time buyers. A professional real estate agent can help you sift through the countless programs that are available and help find the one that’s mortgage can eliminate the need for private mortgage insurance, which is added to your right for you. Call me today for a free consultation.

Property for Sale: 10203 S Portal Avenue, Cupertino, CA.

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Located Near Wilson Park, In A Pleasant Residential Neighborhood, Easy Access To Shopping, Restaurants, Transportation, And Entertainment, Great Corner Lot With A Lovely Lawn And Trees In Front And Large Secluded Patio Area In Back, Kitchen Has Pass-Through To The Patio, Living Room, Family Room, Master Suite Have Sliders To Patio, Kitchen Appliances Installed In 2008, Furnace And Roll-Up Garage Door Installed In September 2008, Some Hardwood Floors, 2 Car Garage, Composition Roof, Front And Rear Automatic Sprinkler, Gas Hookup In Kitchen, Gas Hookup In Laundry, Wet Bar, Central Forced Air Heat, Inside Laundry Area, Wood Burning Fireplace In Living Room, Breakfast Bar, Living Room/Dining Room Combo, Ground Floor Bedroom. Asking $988,000.