Negotiate your way into your dream home

Whether you are buying your first home or looking to downsize after retirement, negotiation skills are crucial in getting what you want. Here are some tips for homebuyers trying to negotiate with sellers.

1. It is always advisable for buyers to get preapproved, not just prequalified. Pre-approved buyers have an edge over potential buyers who have only prequalified for a loan. Preapproval means the buyer has attained a conditional commitment in writing for an exact loan amount from a lender. This saves time and a quick closing may be appealing to a seller.
2. Do your homework before you make an offer. Confer with your qualified real estate agent to decide how much a property is worth. After researching comparables, crime statistics, local schools and considering the length of time the property has been on the market-make an educated and realistic offer. If you come to negotiations with facts to back up your offer, the seller may be more willing to meet your price.
3. Find out the seller's motivation. Do your due diligence when it comes to finding out as much as you can about why the home is for sale. If a property is vacant, perhaps the owners are anxious to unload the property. It is important the sellers see a human face on the other end of the sale. This may work in your favor, though be careful not to over share with the sellers, exposing your motivation or finances.

Housing Market Heats Up in Warmer Climates

Because of tight inventory, states in the West and South are expected to see home prices jump by 4 to 8 percent over the next 12 months, according to the latest data from the REALTORS® Confidence Index Survey. iStock_000008460347Small

The highest price growth in the next year is expected in California, Nevada, Arizona, Texas, Utah, Florida, Louisiana, Georgia and South Carolina, according to the survey of about 3,000 REALTORS®.

Nationally, prices are expected to increase by about 4 percent in the next 12 months, according to the data gathered in November.

A few states in colder climes are also expected to see larger price jumps as the housing markets are expected to warm up in places such as North Dakota, Minnesota, Michigan and Massachusetts.

The recent confidence index survey is the latest evidence that the U.S. housing market is in a completely different position than at this time in 2012. This fall saw solid price increases, steady inventory and strong demand, according to realtor.com® monthly data.

Written By Rachel Stults, NAR

Real estate: Look for value in 2014

The good news for housing is that price gains next year are expected to be only about half as strong as in 2013, when sellers stayed on the sidelines. Yes, that's good news. "For a sustainable recovery you want to see more balance between buyers and sellers," says David Stiff, chief economist at CoreLogic Case-Shiller, which is forecasting a 6.8% rise in the median home value for 2014.
 

Inventory is already improving. Nationwide, the number of homes for sale in September rose 1.8% vs. a year earlier, according to the National Association of Realtors. That's the first increase since late 2011. In Los Angeles, Atlanta, and Orlando, inventory was 10% or higher than a year earlier.
 

"It will still be a sellers' market in 2014, given how far we have before inventory is back to normal," says Jed Kolko, chief economist at Trulia, noting the supply of homes in September was still about 15% below historical norms. "But it will not be as extreme as 2013," he says.
 

Buyers will also enjoy an advantage next year as real estate investors are expected to be less of a factor. Why? In an improving market, there are fewer distressed homes, which they covet. According to the Campbell/Inside Mortgage Finance HousingPulse Tracking survey, the investor share of residential home purchases fell from 23% earlier this year to 17% in September. In a more balanced market like this, here's what you can do to get an edge:

BUYERS
Waiting for more inventory can make sense if you have a dream home in mind. But in 2014 there will be a price for delay -- 30-year fixed-rate mortgages are forecast to climb from today's 4.5% to more than 5%.
 

Work with a fast closer. Qualifying for loans is easier now, but speed is another issue. Franklin, Tenn., agent Patty Latham says she will not work with buyers using a particular lender that has missed several deadlines. For speed, Virginia agent Rob Wittman suggests sticking with local lenders with ties to nearby appraisers.
 

What's fast? John Wheaton at Guaranteed Rate says, "Where 45 days was the norm, you can get an express closing in 20 days and even faster."
 

Lead with a credible offer. At a time of multiple bids, low-balling isn't the way to go. "The reality is, sellers don't have to come back to you with a counter if they've got better bids," Wittman says. Of course, you don't want to overpay either. Even in markets that are starting to experience bidding wars, such as L.A. and Boston, final sales prices are still typically about 1% below asking. Use that and your agent's local knowledge and go in with a respectable bid.

OWNERS
If you like your home and are not in a rush to sell, you have great flexibility. For instance, your rising home equity will make it easier to borrow against the property. That can help pay for deferred maintenance or home renovations you've been eyeing for years -- which will only add value when you eventually put your home on the market.
 

Remodel within reason. Home-improvement spending is expected to grow by double digits through mid-2014, according to Harvard's Joint Center for Housing Studies. Atop the wish list: bathroom and kitchen jobs.
 

Keep resale in mind. While the focus was on value at the market lows, today "homes with all the fixings are the ones attracting multiple buyers," says McLean, Va., real estate broker Jon Wolford. So, yes, you can splurge a bit, but don't go crazy. Remodeling Magazine's cost-vs.-value survey found that moderate kitchen remodels ($57,500) recouped 69% of their cost, close to what minor jobs paid back. Over-the-top projects ($111,000), though, recouped less than 60%.
 

Take advantage of low home-equity rates. While 30-year mortgages rose nearly a point this year, rates on home-equity lines of credit have fallen a bit to 5.1%. That's because HELOCs are tied to short-term rates that the Fed isn't likely to hike until 2015.
 

If you'll need to repay your loan over many years, though, go with a fixed-rate home-equity loan. Today's 6.25% average is about 0.25 points lower than a year ago, as lenders are now more interested in doing deals, says Keith Gumbinger at HSH.com. Credit unions can be the best place to shop for home-equity loans. The average credit union rate is 5.75%.
 

SELLERS
List too early and you'll leave gains on the table. Wait too long and rising borrowing costs might put an end to bidding wars. You can't time the market perfectly, but you can keep an eye on inventory trends. Ask your agent to give you a monthly report on the number of listings compared with closings. Housing trends play out gradually.
 

Once you see a big uptick in listings relative to closings, you'll know price gains are getting ready to slow -- and that it's time to act.
 

Price it right the first time. Don't waste your time by listing too high only to have to wait and lower the price. "Buyers are smart these days -- they know where the market is, and now that rates are higher, they aren't going to bite on a list price above recent comparables," says Sara Fischer, an agent with Redfin based in San Diego. The real estate site Zillow reports that about one-third of listed homes in August had a price drop, up from 26% earlier this year.
 

Play tour guide for the appraiser. If your buyer's lender gets an appraisal that comes in lower than the agreed-upon price, you're in for plenty of headaches -- even in an improving market. You'll have to lower the price, the buyer will have to cough up a bigger down payment, or worst case, the deal might collapse, sending you back to square one.
 

Fischer recommends that sellers be present when appraisers come by. "They don't want to listen to the agent," she says. "But if you're the owner and can walk them through all the improvements, that can help the appraiser better understand what has gone into the home." She recommends handing the appraiser a spreadsheet of all upgrades, listing when they were done and the scope of each project.
 

By Carla Fried - CNN Money

Multifamily housing in transition

The condo and townhome markets, looked upon as the redeeming grace to single-family home ownership when pre-bubble housing prices were smoking hot, is beginning to come into its own again in Inland Southern California.

Condos had taken a back seat when Wall Street investors, squeezed-out buyers, second-home hunters and bargain shoppers looking to augment low-earning retirement portfolios snatched up a glut of houses in distress.

Now, with single-family home price appreciation in Riverside and San Bernardino counties marching into 2014 with year-to-year gains of 20 to 30 percent, Inland homebuyers are gravitating toward condo and townhouse sales in bigger numbers.

Condominium and townhouse sales in key multi-family markets - Fontana, Ontario, Rancho Cucamonga, San Bernardino, Moreno Valley, Murrieta, Perris, Temecula, Chino, Corona and Riverside - have risen 2.7 percent during the first six months of 2013, from a near standstill position in 2012.

The gain translates to an increase of only 31 sales to 1,178 units. But it comes at a time inventory is tightly crimped.

For Riverside and San Bernardino counties combined, existing condo sales are up 9.2 percent January through October, said Andrew LePage, analyst for San Diego-based DataQuick.

The 5,953 sales haven't hit that mark since 2005, when 8,762 sales were recorded over the same 10-month period.

"We are at the very beginning of a new trend," Steve Johnson, regional director for real estate research firm Metrostudy, said. "There was so little attached product built in the last seven years, this is a logical next step."

TRENDING UP

Real estate watchers agree condo and town-home sales could begin to play a more prominent role in real estate in 2014.

"If we don't see another debacle in Washington, D.C., early in the year, the economic recovery stays on track and mortgage rates remain relatively low, it's likely single-family home prices will increase," LePage said. "With those prices on the rise, I think we'll see relatively healthy condo sales because some people will be priced out of the single-family home market."

October sales numbers point to a tipping point.

Across Southern California, condo sales in October were up 3.3 percent while all home sales took a 4.4 percent tumble.

"Condos are an attractive product for the Gen-X and Gen-Y generation, the between 20- to 34-year-olds who want to celebrate life, devote more time to recreation and education and not be tied down to their residence," Johnson said. "They want a lock-and-leave lifestyle."

The pent-up factor for families or young adults who have been cooped up in a parents' home or shared living with others also comes into play.

With employment rising in core cities, Johnson say he is already seeing movement in urbanized, densely populated areas and key commuter corridors.

KEY PROJECTS

DR Horton's Pacific Trails in Rancho Cucamonga, Lennar's project in the College Park area of Chino and a second project built by Standard Pacific have performed well, Johnson said. In Riverside County, the BelVista multi-family home development in Temecula has been described by senior sales manager Diane Rogers as the perfect storm.

Designed to accommodate 210 total units, Rogers said 144 are already sold. The units that she says appeals to workers in San Diego, including military or civilian workers at Camp Pendleton, as well as the empty nesters.

"We are three-quarters sold out," she said of BelVista by Woodside Homes, which opened at prices beginning at $187,990 in April 2011. Today, prices begin in the range of $245,000 to $297,000, she said.

With Woodside proposing a second condo development in Temecula, she said: "We see the rental and condo component as the next wave in California."

With continued population growth, and household growth, along with a group of people today who do not trust the single-family, detached housing market as an investment tool, this is the alternative.

Rising rent has also been altering the landscape.

Beacon Economics, in a recent report, said buyers of existing single-family homes would pay $983 per month for housing costs in San Bernardino County, while a homebuyer in Riverside County would pay $1,260 per month.

ASSOCIATION VIEW

Leslie Appleton-Young, chief economist with California Association of Realtors, said in a recent 2014 forecast the move to multi-family makes sense when it begins to cost $3,500 a month to rent a 2-bedroom unit in Los Angeles. "With a 900-square foot apartment costing that much money, you begin to look at housing in a very different way."

For decades, condos have been the first foothold in the market for first-time buyers, LePage said.

Johnson says the sparse detached housing inventory has driven investment in existing condos, too. "There's demand for it, especially with vacancy rates running at about 6 percent," he said.

With some forecasters projecting a repeat performance on single-family price gains in 2014, the move to a product that remains affordable may already be pushing up condo prices.

The median sale price in October for existing condos grew 13.6 percent in Riverside County and 22 percent in San Bernardino County in the second quarter of 2013 from the same quarter in 2012.

"People could be very disappointed at how much prices go up over the next year for detached houses," Rogers said. "Builders aren't going to deliver homes because they are running out of land in close-in locations."

Lot sizes are shrinking. With the cost of materials and labor going up, Johnson foresees double digit price gains for condos and town homes in 2014.

"In the Inland region, attached housing comes into play when detached housing becomes very expensive."

RISING PRICES

Price growth has been highest in multifamily communities with a large population of retires, students and low-income wage earners.

Prices on condos in Rancho Cucamonga, Corona, Murrieta, Ontario and Riverside ranged from $137,000 to $218,000 over the first six months of 2013.

With metro areas beginning to report traction in the job market, Rogers said she thinks this will be a market that grows over the next several years.

LePage generally sees an upward trend on both price and sales in 2014

LePage said rhetorically, before adding the view that housing prices appreciated so dramatically, a repeat may not come in 2014. Inventory is rising, too, and fewer homes are underwater. That might soften condo sales, too.

For now, LePage said 2014 could be another year of surprises. "I could be easily wrong if the economy is building more steam than we realize now."

Written by Debra Gruszecki

5 things to know about home security systems

New technology means that you have many more options for boosting your home security. You can use a variety of home protection services, a mobile phone app, or even a low-tech solution such as an automated dimmer switch.

1. New players mean fresh options

With cable and Internet providers now offering security systems, the industry is changing. Many of these firms sell simple install-it-yourself services that eliminate the usual upfront fee of $1,000 or so.

Prices also vary based on whether the provider levies an equipment charge, the level of monitoring, and more, so total all costs before you buy, says Kevin Brasler of rating site Consumers' Checkbook.

In the first year, expect to pay between $250 and $1,500.

2. Your phone can help keep you safe

A basic security system (alarm, control panel, and series of motion sensors) costs about $20 to $30 a month, but many companies now offer a mobile app for a few dollars more.

Michelle Schenker of security tip website ASecureLife.com, recommends springing for the app, which allows you to use your smartphone or tablet to arm your system, see alerts, and turn off false alarms, even when you're far from home.

3. Someone must call the cops

With mobile tracking tools taking off, some firms do not offer monitoring services, which alert the police when an alarm is triggered. Yes, going with a non-monitoring option will save you $10 to $15 a month.

Still, Robert Siciliano of BestHomeSecurityCompanys.com, which rates security systems, advises against it: "You want that call made to protect you."

4. Customer service is the key

Many companies use similar technology, so it's service -- say, how quickly they fix faulty systems and respond to calls -- that makes firms stand out, Brasler says.

Before you choose a provider, check its reviews on sites like Angie's List (subscriptions are $3 a month) and Yelp. Keep in mind that national firms, such as ADT, "are only as good as the dealer in your area," says Schenker. And since break-ins don't always happen during business hours, look for 24/7 support.

5. The pros aren't your only choice

If you're among the 80% of homeowners without a security service, there are steps you can take to help fend off break-ins.

Trim any shrubbery that could shelter someone trying to get in through a window. Security company stickers, often sold on eBay, could dissuade a potential intruder, says Siciliano.

Thieves typically look for vacant homes, so when you're out, set an automated dimmer switch ($40 to $75) to turn on lights at odd times.

10 Reasons to List Your Home During the Holidays

1. People who look for a home during the holidays are more serious buyers.
2. Serious buyers have fewer houses to choose from during the holidays, so you have less competition.
3. Houses "show better" when decorated for the holidays.
4. Buyers are more emotional during the holidays.
5. Buyers have more time to look for a home during the holidays.
6. Many people want to buy before the end of the year for tax reasons.
7. January is traditionally the month for transfers. Transfers can't wait until spring to buy. You must be on the market to capture the market.
8. You may still restrict showing during your personal family events.
9. You can sell now, but specify a delayed closing or extended occupancy until early next year if you so desire.
10. By selling now you have an opportunity to buy during the spring, when many houses are on the market.

Bottom Line? By listing now, you may have fewer actual showings, but more qualified and motivated buyers.

The Reason? You have less competition, resulting in a quicker sale and a better price for you.

Earning RAVE Reviews in Tough Situations