Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable — but it won’t stay this way for much longer.

Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.

A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.

“This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer,” he said.

Prospective homebuyers who’ve been sitting on the fence shouldn’t worry if they aren’t quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets.

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Pursuing a short sale is often thought of as a painstaking process, and it’s not uncommon to hear of complaints about slow responses from servicers and last minute rejections on offers. Fortunately, not all lenders/servicers are the same when it comes to dealing with short sales, and RealtyTrac compiled a list of data revealing which institutions tend to move through the process quicker and for less.

Fannie Mae, Freddie Mac, and FHA had the shortest timelines at 193 days in January 2012, a decrease compared to a year ago in January 2011, when short sales averaged 248 days. Ally Financial came in second at 321 days, reducing its timeline as well from 393 days a year ago.

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.

The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

By Dian Hymer, Monday, March 19, 2012.

Six years after the market peaked in 2006 and prices started to decline, many sellers are still in denial about the current market value of their homes. It’s difficult for most sellers to accept the reality of today’s home-sale market, whether they bought at or near the peak and will lose money selling today, or bought decades ago but are still stuck at 2006 prices.

An Oakland, Calif., homeowner recently remarked that she was aware that home prices had dropped quite a bit over the last five years. But she felt that her home hadn’t lost any value.

It’s hard for homeowners to divorce themselves emotionally from a home they’ve enjoyed. But this is what sellers need to do so that they can make rational decisions about a list price that will actually result in a sale.

This decision should be based on listings that have sold in your area that could be considered somewhat comparable to your home. Some sellers go to open houses to evaluate the competition. If you’re still emotionally wrapped up in your home, the exercise can be futile. You return home feeling that the other homes aren’t as good as yours.

Put yourself in the buyers’ shoes. This is easier for sellers who are also buying in this market. They know what it’s like to want to make sure they’re getting a good deal. Your house needs to be listed at a price that is enticing to buyers because it represents a good value. In most areas, buyers are buying in a market knowing that prices may continue to decline before the market fully recovers.

HOUSE HUNTING TIP: Be wary of real estate agents who tell you that your home will sell for a higher-than-supportable price just to get the listing. Then they work on you over time until you reduce the price to market value. Realtors refer to this as buying a listing.

It’s hard to resist the temptation of trying for a higher price than the comparable sales indicate. However, you won’t be happy if your home is on the market for months with no activity, and each time you drop the price it feels like too little too late. You can end up selling for less later if home prices in your area are still declining.

Refinance appraisals are notoriously inaccurate in terms of market value — either too high or too low. An appraiser is attempting to gauge what price a buyer would pay when there isn’t a ratified contract that states what a buyer will pay. A high refinance appraisal can leave the seller with a false expectation.

Listing your home based on what you want or need to net from the sale won’t motivate buyers to pay more. Buyers pay market value. They’re won’t overpay in today’s market.

Find out what buyers are looking for in your area and see how your home matches up to their expectations. Generally, today’s buyers are looking for a home that is well-located, in good condition and is priced right for the market.

If your home needs a lot of work compared to the competition, you’ll either need to have work done before selling, or discount your price accordingly.

Walk-to locations are highly desirable in some areas. If your home doesn’t offer this amenity, you may have to make a price accommodation.

Homes with level-in access from the street are usually at a premium. If they’re difficult to find in your area, you may be able to adjust your price upwards in comparison to similar homes that sold recently but had lots of steps.

THE CLOSING: For best results, be realistic about the current market value of your home and what preparation it needs in order to sell successfully in today’s market.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

Find the original article here: http://www.inman.com/buyers-sellers/columnists/dianhymer/home-seller-pitfalls-avoid?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inmannews+%28Inman+News+-+Headlines%29

“We can always go down, but we can’t go up.”

If you’re selling your home this statement has probably crossed your lips at least once. But when it comes to setting a pricing strategy for your home, is it a good idea to start high and work your way down, especially in a market flooded with inventory? Probably not, as most experts would advise that the best way to increase your odds of a successful sale is to price your home at fair market value. But, as logical as this advice sounds, for many sellers it is still tempting to tack a few percentage points onto the price to “leave room to negotiate”. To avoid this temptation, let’s take a look at the seven deadly sins of overpricing:

1. Appraisal problems

   Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price the sale will likely fail.

2. No showings

   Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.

3. Branding problems

   When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.

4. Selling the competition

   Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.

5. Stagnation

   The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – What’s wrong with that house?

6. Tougher negotiations

   Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.

7. Lost opportunities

   You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is above their pre-set budget.

One popular myth is that a great marketing plan will overcome a pricing problem. Nope – spending a zillion dollars on advertising, internet ads, and television spots won’t motivate buyers to pay you more than the home is worth. Another myth is the assumption that a buyer will see your home, fall in love, and write you a check so the competition doesn’t matter. Wrong. Buyers don’t look at homes in isolation. Most look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

Find the original article here: http://www.trulia.com/guide/home_selling/home_selling_strategies/the_seven_deadly_sins_of_overpricing/

By Dian Hymer, Monday, March 12, 2012.

Inman News®

Not long ago, buying a home was the best investment you could make. Not only did it provide a place to live, but it provided instant wealth for many homeowners through rapid home-price appreciation. Renting seemed risky. If you didn’t own a home, you’d miss out on equity buildup that would bankroll a move to a bigger, better home.

In this market, the realistic way to look at a home is a place you want to live. Buying a home doesn’t guarantee that you’ll make a big return on your investment. You might if you stay long enough. Over the long term, home-price appreciation usually outpaces the inflation rate. However, this varies from one locale to the next.

HOUSE HUNTING TIP: Today, many homeowners who want to move to a bigger or smaller home are choosing to rent for a while rather than buy. The pressure of rampant appreciation is nonexistent in most places. Even though interest rates are low, they’re expected to stay low. So buyers trading homes have the luxury of renting until they find a home that will work for them long term.

This means you aren’t under pressure to buy quickly. If you buy a home that you find out doesn’t work for you and sell it again within a year or so, there’s a good chance you’ll lose money when you take into account the costs of buying and selling.

No one knows for sure when the economy will substantially improve. Last year, some economists predicted a double-dip recession. That appears to be less risky at the moment. In the fourth quarter of 2011, the nation’s economic output grew at an annualized rate of 2.8 percent, which is not recession territory, but is not considered good enough by some economists.

On the housing scene, the number of homes sold nationally increased over the previous year in each of the last three months of 2011, according to the National Association of Realtors (NAR). However, sale prices still haven’t caught up with 2010 prices in most places.

Will 2012 be the turnaround year for housing? Lawrence Yun, NAR’s chief economist, thinks that the combination of increasing home sales, record-low interest rate and low home prices “demonstrates a market in recovery.”

Other good news for housing is the recent increase in consumer confidence and the decrease in the inventory of homes for sale to a level not seen since March 2005, according to NAR. Yun thinks that the drop in inventory will contribute to price stabilization and possible modest price growth in the near future.

The housing market may have hit bottom for this cycle, but any bad economic news here or abroad could cause a rocky recovery. The unemployment rate is still high; there are millions of foreclosed homes yet to be sold; and approximately 25 percent of homeowners owe more on their homes than they’re worth in today’s market.

There is pent-up demand on both the buy and sell side. One problem for buyers has been the lack of quality inventory. That may improve this year as some sellers decide they’re tired of waiting for a better time to sell.

The new normal is not the bubble market, but it’s possible to buy and sell successfully as long as your expectations are realistic. Many sellers still think their home is worth more than it is. Overpriced listings don’t sell in any market.

Buyers have the advantage of low interest rates and home prices. Buyers who can find the right house and stay put for five to 10 years will probably be happy they bought now.

THE CLOSING: Many buyers who can’t stomach uncertainty won’t buy now but may regret that they didn’t when the market turns and buyers come rushing into the market.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

Find the original article here: http://www.inman.com/buyers-sellers/columnists/dianhymer/buying-real-estate-think-long-term?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inmannews+%28Inman+News+-+Headlines%29

by David Conway • March 5, 2012

A Florida Keys coral restoration expert has been named a CNN Hero for his pioneering efforts to develop techniques to preserve coral reefs and motivate public support for a cause that attracts environmentally conscious vacationers.

The honor for Ken Nedimyer, founder and president of Key Largo–based Coral Restoration Foundation, was first broadcast on CNN last Friday morning.

According to CNN officials, CNN Heroes are everyday people who are changing the world, dedicating their lives to giving back to communities, defending the planet by protecting the environment, helping others overcome obstacles or solving problems in a unique way.

More than 10,000 nominations are made each year from about 100 countries, according to CNN spokesperson Shimrit Sheetrit. About 25 to 30 heroes are profiled, she said, and the top 10 are chosen at the end of the year by CNN’s editorial board to appear in a special CNN presentation where each finalist receives a $50,000 grant.

One of the honorees, to be voted by fans across the globe in the fall, is to be dubbed CNN Hero of the Year, and is to garner an additional $250,000 grant.

Gary Yoss, a Wellington, Fla., diver who had seen Nedimyer’s coral plantings on Molasses Reef off Key Largo, nominated Nedimyer.

“I had to pinch myself; I’m pretty excited,” said Nedimyer, after learning about the honor. “It’s a huge endorsement not just for me, but for the foundation, and this really puts us on the radar.

“We can be proud hearing Key Largo and the Florida Keys are taking measures to protect resources here,” added Nedimyer, 56, who began coral restoration research efforts about 10 years ago after careers in tropical fish collecting and aquaculture.

The goal of Nedimyer and his small yet impassioned staff of marine scientists is to restore, cultivate and plant staghorn and elkhorn corals, and hopefully reverse their endangered status.

CRF’s one-acre coral nursery in the Florida Keys National Marine Sanctuary off Key Largo is possibly the world’s largest, Nedimyer said, with nearly 23,000 clippings that range from the length of a knuckle up to 15 inches. The clippings eventually are transplanted to nearby reefs to grow and become independent structures serving as habitat for a variety of tropical fish. The expectation is that the corals will reproduce and create more reef growth on the ocean floor.

“Ours is a message of hope,” said Nedimyer, who has leveraged common-sense techniques with scores of volunteers to succeed in an effort that some scientists thought was impossible. “I’m convinced this is the solution that can work.”

Beyond creating scientific solutions, Nedimyer has been successful in developing community and visitor volunteer programs to create a “workforce” for coral restoration. Several times a year coral restoration workshops are conducted at Upper Keys lodging properties that attract visitors who learn about coral reefs and participate in working dives at the coral nursery.

Nedimyer’s work is likely to have positive impacts for coral reefs in other tropical destinations.

“We are developing a concept we can take to other countries as well,” he said. “We’re putting Key Largo and the Keys on the map as a community that got together and did something about it (restoring coral).”

On the Net:
CNN Heroes: <>
Coral Restoration Foundation: www.coralrestoration.org

Original article: http://www.floridasportsman.com/2012/03/05/florida-keys-coral-expert-named-cnn-hero/ 

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.

Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.

“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”

The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.

The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer will be limited to one extension of no more than 21 days.

The motivation for selling is a key factor. Are you commuting to work several hours a day and the commute is killing you? Are your children grown and your home is now too big, in addition to being a burden to maintain? Is your home too small? Have you taken a job out of the area? Can you no longer afford to own your home? Or do you no longer want to pay the price it costs to own your home?

These are all good reasons for considering making a move. Not only do current market conditions enter into the equation, but making a move like this is usually more complicated than it was the first time you bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable sale price of your home and access the state of the current home-sale market in your area. You also need to know what you can do to maximize the salability of your home. Then you should consider where you’ll live next and how much that will cost.

If you don’t already have one, find an experienced real estate agent who specializes in your area. Friends whose opinion you trust are the best source of agent referrals. Meet with your agent at your home and ask for a comparative market analysis. This will give you information about what homes like yours have been selling for in the current market.

You’ll also want to know how long you can expect it to take to sell your home. How many homes like yours have sold recently? Are homes like yours in high demand? Or, is it located in a less desirable area that could mean a longer marketing time and, perhaps, a lower price than you were expecting?

Ask your agent to walk through your home with you and point out what should be done to make your home marketable. Homes that sell today are priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware, light fixtures and floor coverings, if necessary. Don’t do a complete remodel unless you plan to stay in your home for years; otherwise, you won’t recoup your investment.

Deciding where to move — and when — can be difficult. Some buyers can afford to buy a new home before selling, and prefer to make the move that way. Most repeat buyers can’t afford to buy first. Others who can won’t buy first due to market uncertainty and the stress of owning two homes at once.

The most prudent approach to making a move from one home to another is to sell first and rent if necessary until you find the right home to buy. By selling first, you will know exactly how much money you have to apply to a new home. Today’s housing market is volatile. A dip in the market could shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you’re under no pressure to buy the first listing you see. Interest rates are low and are expected to stay low through 2012. Prices are also low and aren’t expected to move up much for the next several years.

THE CLOSING: This gives you time to find the home that will suit you for the long term.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

Original Article: http://www.inman.com/buyers-sellers/columnists/dianhymer/6-tips-selling-in-todays-market