Home Designs Defined

Have you ever wondered what the difference is between Dutch Colonial and French Provincial architectural design?  Here's a link to describe the differences in residential styles!Guide to Residential Styles

Lowball Offers? Forget About It.

Home buyers who are looking for big discounts on housing nowadays are finding that their lowball offers are no longer sticking with sellers, and that their offers are getting a flat-out “no” when they’re way below the asking price.


"Right off the bat, buyers say, 'I want a steal,' and I tell them they have to wipe that word out of their vocabulary," says Jackie Smith, a real estate agent in Florida’s Broward and Palm Beach counties.


"People come in, and they think the market is 2008 or 2009, when sellers were desperate," says Jennifer Sommers, a real estate agent with Nestler Poletto Sotheby's International Realty in Boca Raton, Fla. "They're not desperate. Not at all."


What qualifies as a lowball offer? Randy Bianchi, co-owner of Paradise Properties of Florida in West Palm Beach, Fla., says that sellers generally consider lowball offers to be less than 90 percent of their asking price.


Buyers, on the other hand, he says tend to say offers of 80 percent to 85 percent of the list price are reasonable.


“The mistake some buyers make is going so low it’s not even reasonable,” says Stephanie Chen, a seller in Weston, Fla., who refused to take an offer $40,000 less than her asking price. “We just walked away from the table.”


Another big mistakes home buyers are making in today’s changing housing market is that they are taking too long to make an offer, real estate professionals say, and because of that they are losing out on getting the house they want. The number of for-sale homes on the market nationwide has shrunk considerably in recent months, bringing out higher competition for properties, particularly for move-in ready homes.


Source: “Mistakes Homebuyers Make as Seller’s Market Looms,” Sun Sentinel (June 14, 2012)

Today's Home Buying Environment

Via Daily Real Estate News | Thursday, May 03, 2012

With signs of a housing turnaround getting stronger, buyers are finding that the rules have changed for submitting an offer on a home purchase. A recent article at U.S. News & World Report highlights some of these changing “rules” for home buyers:


Forget Lowball Offers: Most sellers are savvy and have been advised of market conditions by their real estate agent. Sure, deals are still around, but lowball offers that aren’t in line with comparable sales data are increasingly proving to be a waste of time. Buyers may be better off asking for seller concessions, such as closing cost assistance or making home repairs, rather than making offers way below the asking price. “Keep in mind that a lowball number may turn off the seller and close down any chance at negotiation,” the U.S. News & World Report article cautions potential buyers.   


Get Pre-Approved for Financing Before Shopping: Getting a loan isn’t easy nowadays as lenders have tightened their credit standards in recent years. Serious buyers should check shop for a mortgage and get pre-appoved for a loan to determine how much of a home they can even afford even before they start their home search.  Increasingly, sellers won't even consider an offer unless it's accompanied by proof of funds for a cash offer or a financing qualification letter from a bank.


Be Realistic:   Study the local market.  In the same city, home prices can differ drastically from one neighborhood to another, or even one street to the next.  Ask your real estate agent for data on sales transactions from the last six months and how long properties are staying on the market.  


Expect Multiple Offers. Housing inventories are dropping in many areas and spurring an increase in demand. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, where buyers may be up against investors who are making all-cash offers. Sellers are looking at more than just price when analyzing multiple offers.  Are you also asking for a contribution toward your closing costs, or to pay for the title policy, home warranty, or survey?  


Do Your Homework Before Closing: Buyers should hire a title company to check for any liens and mineral rights. Housing experts also recommend hiring a home inspector, verifying the accuracy of the property line (by asking seller for the survey or having your own conducted), and make sure all necessary disclosures about the property, required by the state, have been made. 

Source: “Traditional 'Rules' of Home Buying Return,” US News & World Report (May 1, 2012)

Demand for Green Homes Rises Sharply

Just in time for St. Patrick's Day--please enjoy this article on GREEN homes!

http://realestate.yahoo.com/promo/demand-spikes-for-zero-energy-cost-homes.html

More Americans are signing contracts to buy existing homes than at any time in nearly two years, boosting the housing industry’s slow recovery, according to the National Association of REALTORS®’ index of pending home sales.

The measure is up 2 percent to 97 in January after slipping 1.9 percent in December. The index of deals for previously owned homes is up 8 percent compared with the 89.8 level from January 2011.

Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 — the benchmark for industry health.

The index showed year-over-year increases in every region—a 9.8 percent increase in the Northeast, a 10.8 percent rise in the Midwest, a 10.5 percent boost in the South and a smaller 0.7 percent uptick in the West.

Contracts are usually signed a month or two before a deal closes and the home purchase is finalized, making the pending-sales index a leading indicator for where the market is headed. The REALTORS® group said last week that existing home sales in January were up more than 4 percent to an annual rate of 4.57 million.

Housing experts such as Lawrence Yun, the REALTOR® group’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.
“Movements in the index have been uneven, reflecting the head winds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun says in a statement.

Source: RISMedia, the Los Angeles Times

Spring Home Sales Poised to Set Records

Great News for housing…

Home sales in the U.S. probably climbed in January to the highest level since May 2010, adding to evidence the housing market is regaining its footing, economists said reports this week will show.

Combined purchases of new and existing houses rose to a 4.97 million annual rate from 4.92 million in December, according to the median forecast in a Bloomberg News survey. Claims for jobless benefits held near the lowest level since 2008, bolstering consumer confidence, other reports may show.

A strengthening job market, combined with record affordability driven by the drop in home prices and mortgage rates, will probably keep underpinning demand. Nonetheless, the Federal Reserve and Obama administration are striving to find ways to lend the industry additional assistance amid concern that mounting foreclosures will continue to hinder the recovery.

“Home sales have bottomed, and from here on, we should see a moderate pickup,” said Yelena Shulyatyeva, an economist at BNP Paribas in New York. “Hiring is improving slowly, so that’s helping.” More policy efforts are needed as “we still can’t rely on housing to recover on its own,” she said.

The National Association of Realtors will release data on existinghouse sales on Feb. 22. Purchases increased 0.9 percent to a 4.65 million annual rate, following a 4.61 million pace in December, according to the Bloomberg survey median.

Sales of new homes climbed to a 315,000 annual rate from 307,000 the prior month, the survey median showed. The report is due from the Commerce Department on Feb. 24. Last year marked a record low for the industry in data going back to 1963, as builders sold 302,000 homes, down 6.2 percent from 2010.

More Homebuilding

Reports last week indicated housing is on the mend. Builders broke ground on more homes than forecast in January, helped by warmer weather, and construction permits also advanced. The National Association of Home Builders/Wells Fargo index of builder confidence climbed in February to the highest level since May 2007.

Beazer Homes USA Inc. (BZH) reported that orders jumped 36 percent in the final three months of 2011 from a year earlier, and closings on new houses surged more than 60 percent. The Atlanta-based builder said it expects to sell more properties this year than last.

“While our visibility into the economic conditions for the remainder of the year is limited, I believe that we will benefit from a gradually improving housing market,” Allan Merrill, chief executive officer, said on an earnings call on Feb. 2.

Build Shares

Investors also are upbeat about prospects. The Standard & Poor’s SupercompositeHomebuilding Index (S15HOME) has advanced 21 percent since the end of last year, outpacing an 8.2 percent gain in the broader S&P 500.

Policy makers are working to help distressed homeowners. The top five mortgage lenders this month reached a $25 billion settlement with 49 states and the U.S. government over the use of faulty paperwork in foreclosures.

Fed Chairman Ben S. Bernanke said the central bank’s efforts to spur growth are being blunted by impediments to mortgage lending, and called for more steps to heal the housing industry.

“The economic recovery has been disappointing in part because U.S. housing markets remain out of balance,” Bernanke told homebuilders on Feb. 10 in Orlando, Florida. “We need to continue to develop and implement policies that will help the housing sector get back on its feet.”

One asset has been the improvement in employment. The jobless rate fell in January to a three-year low of 8.3 percent, and payrolls rose by 243,000 workers.

Fewer Firings

Firings are also waning, Labor Department figures may show on Feb. 23. Initial joblessclaims rose last week to 355,000 after reaching a four-year low the prior week, according to the median forecast in the Bloomberg survey.

Greater affordability is also supporting home demand. The National Association of Realtors’measure of whether households earning the median income can afford a median-priced house at current interest rates reached a record in the last three months of 2011.

Among other reports this week, the Thomson Reuters/University of Michigan final index of consumer sentiment rose to 72.8 in February from a preliminary reading of 72.5, economists in the Bloomberg survey predicted. The data will be released Feb. 24. Bloomberg Survey

Source: Bloomberg

North Texas January Single Family Sales up 14% | MetroTex Association of REALTORS

North Texas January Single Family Sales up 14% MetroTex Association of REALTORS

Winter Alert: Get Outdoor Spaces in Shape

Just because it’s winter doesn’t mean that it’s time for outdoor spaces to be off of home owners’ to-do lists. Now’s the time that seed catalogs arrive in mailboxes and nurseries ready their stores for spring planting. Moreover, more listings and sales occur year-round. A freshly pruned hedge, a tree without scraggly branches but with colorful bark and berries, and bricks freshly grouted in a walk all convey love and attention.

There are other garden trends beyond curb appeal that can help sellers primp houses to look their best and reflect their terrain and climate. Here landscape pros share five that will improve home owners’ odds for selling, as well as their garden enjoyment.

Read more here:
Winter Alert: Get Outdoor Spaces in Shape

Texas HOAs Face New Rules

Some changes are now in effect for the state's homeowners associations that now give homeowners more freedoms when it comes to outdoor decorating and installing environmentally friendly systems. The changes also make it harder for HOAs to foreclose due to unpaid fees.

The new HOA regulations passed by the Texas Legislature last year are considered the most sweeping reforms yet for property owner groups.

Now, HOAs won't be able to keep you from displaying the U.S. or Texas flag, or flags of military branches. Free-standing flagpoles 20 feet tall or less will be allowed, too. HOAs also won't be able to keep you from hanging religious displays on your front doors, but they can require you keep it at 25 square inches or less.

Rainwater harvesting and barrels, as well as solar panels, must be allowed within some limits.

Among other changes, HOAs now will have to go through a judge if they want to foreclose on owners behind on payments. Previously, they could use the quicker non-judicial foreclosure. Now, if homeowners fall behind on payments, the HOA must give them a payment plan.

Sources: Houston Chronicle, Texas Association of REALTORs