Winter Is Best Time to Sell, Study Shows

Daily Real Estate News | The housing market doesn't hibernate in the winter. Sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate.

Researchers found that February is "historically the best month to list, with an average of 66 percent of homes listed then selling within 90 days." 

Even in cold weather cities, the winter tends to net sellers' more than their asking price during the months of December, January, February, and March in comparison to listings from June through November, resulting in higher percentages of above-asking-price sales than listing during any months, other than April and May.

Researchers say the winter market is less competitive for sellers since many people tend to wait until Spring to list.

How to Reduce Your Water Footprint

The U.S. Environmental Protection Agency (EPA) reports that the average American family uses 300 gallons of water each day for everything from brushing their teeth and washing clothes to running the sprinkler and flushing the toilet. 

Although California has had significant rainfall this year, NASA recently stated that California still needs 11 trillion gallons of water to recover from its three-year drought.

Here are a few ways to help reduce water consumption:

1. Make simple switches. 

Consider substituting products that use more water with others that have a smaller water footprint. For example, drink more tap or filtered water instead of buying bottled water. Find favorite recipes that replace or use less meat. (It takes 1,230 gallons of water to yield one beef steak.) Buy more clothes with artificial fibers instead of cotton which is made with more water.

2. Use water-efficient appliances.

Toilets, dishwashers and washing machines use a significant portion of a household's visible water consumption. When it's time to replace an appliance, do your research. Replacing an old toilet, for example, can reduce the toilet's water consumption by 20 to 60 percent.

3. Choose more sustainable products and practices.

Try to select products you trust as being made in more environmentally and water-friendly ways.

What's the Best Way to Improve a Credit Score?

Experts agree that the best way to improve a credit score is by making payments on time.

Payment history accounts for 35% of a credit score, but there is no need to dig yourself into debt to improve your credit score. Qualifying for a low-limit credit card is all you need.  Make a few small charges each month and pay your account in full each and every month.

Keeping charges below 10% of your credit card's limit is good for your credit score as well. So if you have a card with a $500 limit, keeping your monthly charges below $50 is also a good, credit-building strategy.

Easiest Home Fixes with the Most ROI

Whether you're planning to sell your home or you simply want a more updated look, there are any number of inexpensive fixes, from new paint to new curtains, which will improve its overall appearance.

But, according to home contractor Scott McGillivray, host of HGTV's Income Property, these seven relatively inexpensive fixes can give you the most return on your investment (ROI):

Kitchen hardware - Installing a style that appeals to you can immediately make a dated kitchen look more modern and functional.

Refinished hardwood deck - An attractive deck is high on the list of improvements with proven ROI - especially if the deck is more than 100 square feet in size.

Chic moldings - One of the easiest ways to get a high-end look at a reasonable price is with applied moldings on living room and dining room baseboards and ceilings.

New front door - Dollar for dollar, a new front door delivers a terrific ROI - as are other exterior updates like new windows and siding, which are highly appealing to future buyers looking for security and insulation.

Garage storage - Shelves, organizers, and work benches in the garage can make any homeowner's life easier. No need for custom work. You'll find all you need at home improvement stores.

Holiday Shopping Security Tips

Experts are warning holiday shoppers who buy their gifts online to use a little caution when they hunt for bargains. The FBI has said, if a deal offered by an unfamiliar merchant seems too good to be true, it probably is. Michael Kaiser, executive director of the National Cyber Security Alliance, agreed. "If you're looking at new sources of buying gifts that are offering deals that just seem tremendously below what everybody else is offering for the same merchandise, that could be a red flag," he said. According to the NCSA, approximately 52 percent of shoppers used their phones last year to make purchases. That's why Kaiser said shoppers should be careful of purchases made over public Wi-Fi networks, and use multi-step verification to access bank and credit accounts. "There's no such thing as perfect security, but certainly I think that after last year's major retail data breaches, I think there is a lot more focus on protecting information." he said.

10 Credit Tips Designed Specifically to Help Qualify for a Mortgage

The following steps are designed to get your credit in the best condition possible to qualify for a mortgage. Credit scores can range from 350 to 850 -- a score of 700 or better is considered to be good credit. 1. Make sure the info on your credit report is accurate.  Up to 25% of credit reports have errors serious enough to result in being turned down for a loan! 2. Dispute errors with the credit bureau that reports it. (Transunion, Experion, or Equifax) 3. Make all of your debt payments on time, early is even better. 4. Adding your name to a relative's credit account may improve your score. 5. Limit the number of times anyone "pulls" your credit report. 6. Pay off any collections, liens, or judgements against you. 7. Keep your credit account balances under 30% or at least under 50%.   8. Keep accounts you've had for a long time, even if they have zero balance.  The longer you have an account, the more it will help. 9. Use a variety of credit types.  Having only credit cards or only car loans does not show use of diverse types of credit.  It's good to show a variety of types over time, for example: a car loan, a credit card, store accounts, and a line of credit with your bank. 10. Don't make changes to your credit before discussing them with your Mortgage Professional.

4 Reasons Why Winter Is the Best Time to Buy a Home

"The early bird gets the worm," as the saying goes, and the holidays create a perfect opportunity to avoiding competition, and benefit from lower prices and motivated sellers.

Reason #1: Lower competition means lower prices

During the holidays buyers can take advantage of the low prices this natural lull in the marketing cycle creates. Shopping for a home in the winter months makes you one of the special few spending their time looking at houses.

Reason #2: Serious sellers

Less competition means that people are motivated to sell their house. In the holiday season, buyers are a precious commodity. Sellers know that fewer feet will be treading on their carpet, so this small window of opportunity turns you into a buyer with a serious edge. 

Reason #3: Better interest rates on mortgages

The drop in demand to buy a home during the holiday season means that lenders experience less requests for mortgage money at this time. This phenomenon usually manifests itself in favorable mortgage terms and lower interest rates.

Reason #4: Faster closings

Faster closings are historically more available in December, because of fewer overall transactions in the industry. Because lenders want to close their books at the end of the year, they may be inspired to close a transaction more quickly for people buying homes at this time.

How to Win the Bidding War on the Home You Want

If you are buying a home at the height of a citywide seller’s market or simply want a sought-after house in a neighborhood with limited turnover, you may find yourself in the midst of a real estate bidding war.

Competing against faceless prospective buyers may bring out the warrior in you, but before you decide to go all out in your battle, you need to step back and decide how much you really want that particular home.

Should You Compete in a Bidding War?

In the thick of competition you may forget your end goal is a home you love and can afford to own. If your offers have been turned down by several sellers because of competing buyers, then you may feel pushed to make an aggressive offer for the next home you like.

You should stop yourself from competing just because you think the time is right to become a homeowner or to move up into a new place. Instead, think about whether you really want the particular house enough to fight for it.

To guard against making an emotion-fueled offer for a house, take a hard look at your finances. While it may feel good at first to beat out other buyers and to purchase a property, it won’t feel so great in a year or two when you are struggling to make the payments on a house beyond your means. Know your limits before you begin to bid.

Prep for Battle

Your first step before entering a bidding war should be to consult with a lender to understand the maximum amount you can borrow, to evaluate how much cash you have to spend while keeping enough money in a reserve fund.

Next, make sure you hire an experienced REALTOR® who can share information about local market conditions and communicate with the seller’s agent. You should rely on your REALTOR® for advice about how to handle a bidding war, but be sure to do your own research: visit a lot of homes in the area where you want to buy so you understand the value of various properties before you make an offer.

Bidding War Strategies

Your REALTOR® should work with you to craft an attractive offer based on the list price for the home, a comparative market analysis of similar homes, and knowledge gained from the sellers’ agent about the sellers’ motivations and preferences.

In a bidding war, it’s important to work with a REALTOR® who will move quickly to present your offer and any counteroffer, one who is easy to communicate with during the transaction.

While you may assume money is the motivator that steers sellers to one buyer over another, there are other ways to make your offer attractive, such as these ideas:

• Solid financing: You may be competing against cash buyers, so make sure your loan pre-approval is in place and you have completed all required documentation other than identifying a specific property.
• Eliminate contingencies—carefully: If you own a home now, you may want to offer to buy another home without making your contract contingent on the sale of your current home. You take the risk of carrying two mortgages for a while, so make sure you can safely handle the payments. You can also decide to have an “information only” home inspection rather than making your offer contingent on the outcome of the inspection.
• Make the settlement date convenient for the sellers: Rather than negotiating on a closing date convenient to all sides, you can tell the sellers you will work with their schedule or rent back the property to them after the closing.
• Offer to pay all closing costs: You can reduce the sellers’ out-of-pocket expenses by offering to pay their share of the settlement fees, but before you do this get an accurate estimate of what those costs will be and make sure you have the funds available to pay them.
• Personalize the transaction: Sometimes the tipping point for sellers who receive multiple offers is something emotional rather than financial. A personal letter describing your love of their home may tilt the scale in your favor.
• Try an escalation clause: Money talks, too, so you can add an escalation clause to your offer that increases your bid by a certain amount above other offers. Just make sure you set a limit on how high your offer will go.
• Control yourself: Remember that any offer is subject to an appraisal (unless you waive that contingency, but that’s not recommended unless you have plenty of cash), so be careful not to bid above the market value of any property.

Trouble Pulling the Trigger? Here’s How to Commit to Homeownership

You’ve saved for a down payment. You’ve pored over the local listings for months. Touring open houses has become part of your weekend ritual. But months, perhaps years, have passed and you are still in your rental.

For many first-time homebuyers, pulling the trigger on a purchase can be a frightening experience. Will you be happy there? Will you like your neighbors? Will you be tied down—house rich and cash poor? What if you lose your job? Will you hate your commute? In short, your fears stem from the unknown.

Meanwhile, your current home is familiar. You’ve come to accept its shortcomings—the loud neighbors, the leaky ceiling, the scant street parking. It has few surprises.

Take Paolo Forte, the eternal condo-shopper, who looked for years in Boston.

“I have actually seen condos come on the market, sell, and then be resold a second time,” Forte said. “While I’ve been waiting, condo prices continue to rise, and I keep spending more money on rent.”

In Betsy Townsend’s years as a REALTOR® in Boston’s pricey Beacon Hill, she’s seen everything.

“I find that people often hesitate to make the ‘biggest purchase of their life’ because they fear they will make a ‘bad investment’ and pay too much,” Townsend said. “Sometimes people lose sight of the fact that they are looking for a place to live instead of just an investment.”

Still, there’s hope. Your family, friends and co-workers took the leap and are reaping the benefits. Give these steps a try and you could be one of them:

Firm Up Your Finances

Anticipate the new costs that you will incur, such as taxes, homeowners insurance, utility bills and commuting. This will help determine the maximum price you can spend on a house. If your daily budget will change with a new home, consider a trial run living on that budget for a few weeks, to make sure you can. Enlisting the help of a financial expert will give you an objective view of your finances. Remember, the first year is the most difficult. After that you will begin receiving tax benefits.

Partner With an Agent

Even though the Internet gives you access to endless amounts of market information, don’t be tempted to go it alone. Instead, interview several real estate agents and find one you like who listens to you. He or she can line up properties to view, answer many of your questions and make connections for you in your new community. Agents often have the inside track on new properties just coming on the market.

Accept Some Risk

Realize that there is uncertainty in everything, but no matter what happens, you will deal with it. Ask family and friends about their experiences and learn from them. Be sure to keep some cash reserves in the bank as a safety net. And remember, you have homeowner’s insurance for a reason.

Fine Tune Your ‘Must-Haves’

Is there a community that you absolutely must live in? Are you adamant about a garage, a fireplace or a finished basement? Make your list of what’s vital. You may find that you are willing to sacrifice one feature if the rest are fabulous. If you are not crazy about the house, don’t bid. It’s important that you love it at the outset.

Be Ready to Bid

Regardless of the market, great houses do not stay available for long. One open house can lead to three offers. If you love it, be ready to make your best offer. If you are wavering, ask yourself, “How will I feel if I don’t get this house?” You might just get it, and if not, at least you will know you tried.

Reap the Reward

Owning a home can be one of the most exciting and satisfying things you will do in your life. It’s an investment that can pay you personal dividends as well as financial benefits.

Keep Your Cool This Summer

Summer is time for fun in welcome warm weather—but it’s also important to stay cool when the temperatures really get up there. Both indoors and out, keeping cool will help you and your family feel more comfortable and avoid heat-related health problems as well.

Limit outdoor activity during the middle of the day as much as possible. Save mowing the lawn for later in the day or early in the morning. Get your walking or running in early before the sun’s heat makes things uncomfortable. You’ll feel better, and it’s better for your health, too. Keep an eye on children, who tend not to notice the heat as they focus on their activities. Make sure they take breaks in the shade, and have plenty of water available at all times. Fruit that contains a high percentage of water, such as strawberries, apples, cantaloupe, and watermelon are welcome treats on a hot day.

When the temperature rises, it’s also important to pay attention to the elderly, as they often have diminished abilities to cope with heat. Keep water available within easy reach and monitor the room temperature. If there isn’t air conditioning at home, an outing to a movie theater, mall, or library can be a comfortable and fun way to spend a few hours in a cooler environment.

Indoors, keep south- and west-facing windows covered during the day to minimize heat buildup as the day progresses. Open the windows in the evening when it cools down to let the fresh air in. Ceiling fans and portable fans do a good job of circulating air; even though the air itself isn’t being cooled, the air movement will make it feel several degrees cooler and make things much more comfortable. Hot air rises, so it’s likely that heat will build up quickly on second-story levels. Try cooling these areas before bedtime for better sleep. Electronics, especially large flat-screen televisions, generate quite a bit of heat when in use, so consider limiting viewing time. You’ll save energy, too.

When cooking, stick to grilling outdoors or using the microwave whenever possible. Be sure to set the dishwasher on its unheated drying cycle, and take advantage of the delayed-start feature if your unit has one. Setting it to start later in the evening can help keep things cooler. In the laundry, use full loads and dry clothes early in the day to avoid heating up the house. Think of the dryer as a heater that will run for an hour or so—not a pleasant thought on a hot day!

You can use these practical ideas right now in your home. Enjoy the summer—and stay cool.