Yajnesh Rai

Home Sellers Are Pocketing More Money | Realtor Magazine

Homeowners who sold in the first quarter realized an average price gain of $44,000 since purchase. That represents an average 24 percent of return on the purchase price, which is the highest average price gain for home sellers in terms of both dollars and percent returns since the third quarter of 2007, according to ATTOM Data Solutions’ First Quarter 2017 U.S. Home Sales Report.

“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” says Daren Blomquist, senior vice president with ATTOM Data Solutions. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time home buyers.”

Homeowners who sold in the first quarter had owned their home for an average of 7.97 years, the report showed. Between the first quarter of 2000 and third quarter of 2007, before the Great Recession, average homeownership tenure was 4.26 years.

Still, “there are some early signs this inventory logjam may be loosening up in some markets, with the average homeownership tenure down from a year ago in nine of the 66 markets we analyzed, including Memphis, Dallas, Boston, Portland [Ore.], and Tampa,” Blomquist says. “Sky-high potential price gains may be finally prompting more homeowners to sell.”

Among 97 metro areas with at least 1,000 home sales in the first quarter that ATTOM Data Solutions analyzed, the following had the highest average price gain since purchase that was realized by home sellers:

1. San Jose, Calif.: $356,500 average price gain
2. San Francisco.: $276,750
3. Los Angeles: $187,000
4. Honolulu: $161,110
5. Oxnard-Thousand Oaks-Ventura, Calif.: $160,000

California markets still dominated the list when looking at the metro areas with the highest return by percentage on the previous purchase price. The top five markets were:

1. San Jose, Calif.: 71% average ROI
2. San Francisco: 65%
3. Seattle: 56%
4. Portland, Ore.: 52%
5. Modesto, Calif.: 51%

Home Buying Tips You Need To Know | 360training Blog

First things first: Are you ready to buy a home?
Home ownership looks like fun, but it involves more money and work than it seems. All the expenses your landlord has been paying will be your responsibility now: repairs and maintenance, taxes, utilities, garbage, water, insurance, and more.

So, if the answer to that question is “yes,” it’s time to get serious.

1. Get Ready
Buying a home is a huge life-changing, financial process with contracts, inspections, mortgages, and insurance. It affects your credit score and financial health. You can’t jump into it on a whim.

First, prepare yourself and your finances before you start looking:

• Look at your credit score for errors. One in four Americans found errors, according to the FTC.

• Do a few things to improve your credit score, like paying bills on time. It’s one of several things lenders analyze. A higher credit score means a lower interest rate.

• Draw up a budget to get a picture of what you’re spending every month.

• Look for ways to cut back on spending and then do it.

• Don’t take on new debt, like credit cards, and avoid big purchases.

• Start saving for the down payment, moving costs, and closing costs.

2. Get Pre-Approved
It’s important to know what you can realistically afford. Submit financial information, and then the lender calculates how much they’ll lend you and the mortgage payments you can afford. A pre-approval gives you a price range and proves to sellers that you’re ready and able to go through with the sale.

Ask yourself: What can I honestly afford? The cost is not just the monthly mortgage payments; there’s also maintenance, taxes, utilities, and insurance.

When shopping for a loan, go directly to mortgage brokers, and don’t fall for shady low-interest rate ads or online scams. The mortgage broker looks at your financial situation and helps you decide which loan type and payment options are right for you.

3. Get Organized
Make a list of the things that are important to you and then divide it into “Must-Haves” and “Like-To-Haves.” This list is also useful in managing expectations and focusing on what is important.

I love lists so here’s another one: A checklist of all the things you need to do and documents to be gathered is a great way to stay focused. The internet and your real estate agent can tell you what should be on this list.

4. Get a Real Estate Agent
There’s advice online about choosing the right real estate agent and asking smart questions. People often find an agent through their acquaintances, but be sure to do some research before you sign an agency agreement. Hire an agent with years of experience and lots of local knowledge.

5. Start Hunting
Now’s the fun part. Most buyers start their search online to get an idea of what’s out there in their price range.  Put your lists and listing sheets in a folder and start looking at houses.

When you’re viewing houses and attending open houses, print out copies of the listing pages and write notes on the back; record your thoughts and impressions on each house to analyze later when it’s time to make a decision.

6. Do Your Homework
While you’re looking, gather the necessary paperwork: tax returns, W-2 forms, pay stubs, bank and credit card statements, residence history, and retirement account statements.

Once you’ve identified the area you want to live and narrowed the choice to a few houses, do some research. This is where your agent is crucial.

Examine the neighborhood: Look at taxes, schools, crime, house value trends, homeowner’s association, public transportation, amenities, and infrastructure. Explore the area on different days and different times. Browse local stores, especially the supermarket, and eat at local restaurants. Chat with the neighbors if you can.

7. Move Fast But Smart
If you’ve done your homework and you love the house, be prepared to move quickly. Don’t succumb to pressure to buy if you have major reservations. You don’t have to buy a house. This is a decision you’ll have to live with for years.

8. Negotiate
Everything is negotiable: price, fees, inspections, deadlines, repairs, contingencies, conditions, and personal property that stays with the house. Your agent will advise you on the best ways to get what you want.

9. Make Your Best Offer First
You’ve done your homework, got a pre-approval letter, and put your finances in order, so you should feel good about a strong first offer. Your agent will help you decide by looking at similar houses in the area.

10. Insist on a Home Inspection
Foregoing the home inspection could cost you big later. A hidden defect could cost thousands after you close. You can purchase the right to cancel the contract if the home inspector discovers serious problems.

Lower Mortgage Rates Boost Loan Demand | Realtor Magazine

Total mortgage activity—which includes applications for refinancings and home purchases—rose 2.7 percent on a seasonally adjusted basis as homeowners rushed to take advantage of lower mortgage rates.

The refinance market was what drove last week’s increase, rising 7 percent week over week as mortgage rates dropped to the lowest level since November 2016. Still, refinance activity remains about 34 percent below where it was a year ago, the Mortgage Bankers Association reported Wednesday.

The average 30-year fixed-rate mortgage was at 4.2 percent last week, decreasing from 4.22 percent the week prior, the MBA reports. Applications for home purchases dropped 1 percent for the week and are now just 0.4 percent higher than the same week a year ago. A shortage of homes for sale, amid strong buyer demand, continues to hamper sales.

48% of Homes Sell in Less Than a Month | Realtor Magazine

Forty-eight percent of homes sold in March were on the market for less than a month, according to housing data from the National Association of REALTORS®. The average for all sold properties, though, was a little higher, at 34 days. Still, that’s down significantly from 47 days a year ago, according to NAR. Nondistressed homes spent a median of 32 days on the market, which is the shortest length of time since NAR began tracking such data in May 2011.

Realtor.com® reveals that the following metro areas had listings on the market the shortest amount of time in March:

• San Jose-Sunnyvale-Santa Clara, Calif.: 24 days
• San Francisco-Oakland-Howard-Hayward, Calif.: 25 days
• Seattle-Tacoma-Bellevue, Wash.: 28 days
• Denver-Aurora-Lakewood, Colo.: 28 days
• Vallejo-Fairfield, Calif.: 31 days

With strong buyer demand supporting shorter times on market, home prices are rising as well. The median existing-home price for all housing types was $236,400 in March, up 6.8 percent from a year ago. “Last month’s swift price gains and the remarkably short time a home was on the market are directly the result of the homebuilding industry’s struggle to meet the dire need for more new homes,” says NAR chief economist Lawrence Yun. “A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy.”

4 Bathroom Fads That Turn Buyers Off | Realtor Magazine

For some buyers, the bathroom is a deal breaker. So if your listing includes these fading bathroom trends, you might have a harder time selling it. Realtor.com® notes some fads you may want to suggest your sellers change before putting their home on the market.

All-white bathrooms: They’re tough to keep clean, so this trend is definitely reaching its end. “White tile and flooring can stain very easily, and any little mark glares at you from across the room, tainting the crisp, clean concept of an all-white look,” says Tonya Bruin, CEO of Canada-based To Do-Done Handyman Services. “I have so many homeowners coming to me now to ask for these white baths to be torn out and replaced with a more varied color design.” To offset an all-white look without a complete overhaul, paint one wall a different color or add colored towels and a bath mat, Bruin suggests.

Too many funky colors: However, you don’t want to be too bold with your color scheme. Mustard, salmon, and avocado, for example, aren’t the most desirable colors in a bathroom. “Colors like these tend to look tacky and make your bathroom feel like it’s stuck in the 1980s,” says Scott Allis with Miracle Method, a bath and kitchen refinishing company. Go for a more muted palette for your listing, such as a mix of three colors in a 70/20/10 distribution. “Use the most neutral color for 70 percent of the walls, floor, and tile, a rich contrasting color for 20 percent of the look, and then an accent shade for the last 10 percent,” says Bee Heinemann, an interior design expert at Vant Wall Panels.

A big bathtub: Design magazines may celebrate the luxurious standalone bathtub in the center of a bathroom, but it doesn’t always work in reality. “This elaborate, oversized fixture is far from practical and actually has low resale value,” Heinemann says. Bathtubs are used less often than showers, and if there’s at least one bathtub in the home, there’s no need to spotlight one in another bathroom. For bathroom remodels, designers recommend investing in a quality water-saving shower.

Subway tile and nickel finishes: Subway tile and cool finishes such as nickel and chrome are on their way out, designers say. Instead, “large format tile is a good way to go, as are mini mosaics and geometric tiles,” says Nicole Rojas, a designer with Tellus Design in Southern California. Also, brushed gold and even black finishes are gaining popularity. “The silhouette is still clean and streamlined,” adds Bea Pila, author of Sacred Spaces for Inspired Living. “But these newer tones add an element of modernity and sophistication.”

Water Bill Drowning You? Here Are 11 Ways to Lower It – @Redfin

While utilities like internet and cable TV may seem like obvious targets, your water bill can also run much higher than necessary.

Missing water bill payments could eventually hurt your credit. While most utilities don’t report on-time payments to the to credit bureaus, many will report accounts that go into default or collections, which will cause your scores to take a hit. (Want to see where yours stand? Take a look at two of your credit scores free on Credit.com.)

There’s no shortage of common sense methods to cut your water usage and lower your bill. Here are 11 options.

1. Fix Leaky Faucets

Leaky faucets may not seem like obvious culprits — after all, they’re only losing water a drop at a time. But as months go by, those drips add up.

A single drop per second from a leaky faucet can lead to 2,082 gallons of waste water each year, according to the U.S. Geological Survey. All you need to do is head to your local hardware store for a repair kit and that repair could save you a lot over time.

2. Run Full Loads of Laundry

You may want to avoid running your washing machine just to clean a few T-shirts and a pair of socks. Not only does that waste water, it puts unnecessary wear and tear on your washer. Only wash full loads of laundry to reduce the number of times you have to run your machine.

3. Limit Your Showers

Showers account for 17% of home water use, according to the Environmental Protection Agency (EPA). That long, luxurious shower feels good in the moment, but it drives up your water bill. Try to limit your showers to five minutes or less or cut back on the frequency.

4. Adjust Water Temperature Away From the Sink

If you run your cooking water or drinking water straight from the faucet, you may be wasting water as you wait for it to heat up or cool down. Instead, you can heat cool water on the stove and keep drinking water in a container in the fridge.

5. Wash Dishes Efficiently

Running your dishwasher uses less water than hand-washing your dishes, according to the EPA. If you don’t have a dishwasher, try stopping the drain and filling the sink with soapy water rather than letting the water run.

6. Install Efficient Showerheads

If your showerheads are inefficient, or if you’ve never replaced them, you may want to invest in a low-flow or high-efficiency showerhead. Showerheads today must have a flow rate no more than 2.5 gallons per minute, as specified by the federal Energy Policy Act of 1992.

“Showerheads made before that typically spit out five or more gallons per minute,” said Karen Hoxmeier, Founder of MyBargainBuddy.com. “Switching will save about 136 gallons of water per shower. A water-efficient showerhead will pay for itself after only a few months.”

While you’re making upgrades, here are 17 things homeowners should make sure to do each year.

7. Water Your Lawn at the Right Time

Watering your lawn at the right time of day can reduce the amount of water lost to evaporation.

“Water evaporates quickly into the air during the hottest times of the day, so if you have a lawn or garden that needs watering we suggest doing so in the morning or evening to cut down on water evaporation waste,” said Rob Caiello, vice president of marketing at Allconnect, a company that helps connect consumers with utility providers.

8. Collect Rain Water

You can use a water cistern or any large container to capture rainwater and use that water to hydrate your lawn and garden.

9. Don’t Let the Bathroom Faucet Run

Letting the faucet run while you shave or brush your teeth is wasteful, as most of that water isn’t being used. Fill the sink before shaving and shut off the water as you brush your teeth to reduce waste.

10. Install Faucet Aerators

Faucet aerators limit the water that flows through your faucets, cutting water usage and the energy required to heat hot water. Installing aerators on every faucet in your home can dramatically reduce the water used in your sinks.

11. Install Water-Efficient Toilets

Modern, efficient toilets can use less than 1.3 gallons per flush, according to the EPA. And while low-flow toilets got a bad rap in their infancy, today’s toilets have corrected the poor performance issues that plagued early models. If your toilet is due for an upgrade, a low-flow model can help slash that water bill.

Why Millennials Value Local Real Estate Agents | Realtor Magazine

Millennials love to conduct many aspects of their lives online, but a new survey says that’s not always true when it comes to real estate dealings.

Seventy-five percent of millennials recently surveyed by financial wellness website CentSai say they prefer the help of a local real estate agent than an online agent. Seventy-one percent would also prefer to work with a local mortgage lender. They cited more desire for face-to-face collaboration, associating it with greater “handholding,” “local knowledge,” “longstanding relationships,” and “personal touch.” CentSai surveyed more than 2,000 Americans aged 18 to 34.

“We were surprised to learn that online providers are not yet as big a disruptor in this sector as we first thought, despite purported cost savings,” says Doria Lavagnino, cofounder and president of CentSai. “We found that millennials place a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, and working with a local agent—particularly an agent referred by a parent or friend—could provide peace of mind.”

That said, the internet is still a crucial element in the homebuying process for millennials. Ninety-five percent of home buyers look for prospective homes and neighborhoods online, according to the National Association of REALTORS®’s research.

What’s on Home Shoppers’ Wish Lists | Realtor Magazine

A new realtor.com® survey reveals the top desires of home buyers today: Ranch-style homes, big backyards, and updated kitchens.

More than half of home buyers say they’re on the hunt for a three-bedroom home, and 75 percent want a two-bathroom home as well, according to realtor.com®’s home buyer survey. The survey also showed a strong demand for townhouses and row homes among younger home shoppers, as 40 percent said they are looking for a townhome or row home to purchase. However, as home buyers age, single-family homes clearly are the top preference.

“The insights from our most recent consumer survey provide a glimpse into what buyers are looking at today,” says Sarah Staley, housing expert for realtor.com®. “While we often think of dream homes as being big and bold, that’s not what we’re hearing from potential buyers today. These insights can help guide potential sellers in deciding which rooms or features to invest in before listing their homes.”

Here’s an overview of some of the top features that emerged on buyers’ wish-lists, according to the survey:

The most-searched attributes at realtor.com®: Large backyards, garages, and updated kitchens

These three attributes were popular across all age groups. That said, younger home buyers with young children showed the most desire for finding a large yard and the greatest interest in living near a good school district.

The least-searched features among buyers: a guesthouse, mother-in-law suite, solar panels, and a “man cave.”

The most desired home style: Ranch homes

Forty-two percent of home shoppers say they’re looking for a ranch home, the clear leader. The second most common home style was a contemporary home at 28 percent, followed by Craftsman and Colonial styles.

The favorite room in the home: Kitchens

Eighty percent of home buyers ranked the kitchen as one of their three favorite rooms in a home, followed by master bedroom (49 percent) and living room (42 percent). (However, shoppers over 55 years old preferred garages over living rooms.)

The top goal when searching for a home: Privacy

The majority of home buyers said privacy and having a space that was solely their own was a top goal when in house-hunting mode. Buyers between the ages of 45 and 64 years old tended to value privacy the most, with privacy in the home topping other preferences like stability, family needs, and financial investment among this age group.

What motivates millennial home buyers the most: Family needs

Most millennials surveyed cited life events like an increase in family size, getting married, or moving in with a partner, as what primarily motivated them to find a new home. Home purchasers age 35 to 44 also cited family needs as the top motivation to buy. The majority of this age group also said they wanted to find a better school districts or that changing family circumstances was their motivation to buy. Home buyers over the age of 45, on the other hand, cited a chief motive to move as they were looking to downsize as they plan ahead for retirement.

Fewer New Homes in Pipeline Pushes Up Prices | Realtor Magazine

Nationwide housing starts dropped in March, despite continued high buyer demand, which is adding pressure to overall home prices.

Housing starts for single-family and multifamily homes dropped 6.8 percent in March to a seasonally adjusted annual rate of 1.22 million units, the Commerce Department reported Tuesday. Broken out, single-family production plunged 6.2 percent to an annual rate of 821,000 units in March month over month, following a strong February reading. Multifamily starts dropped 7.9 percent to an annual pace of 394,000.

The constraint in new-home construction is proving a big challenge for the overall housing market, says Lawrence Yun, the chief economist for the National Association of REALTORS®.

“A major housing shortage exists in this country,” Yun said in a statement. “It is therefore disappointing to witness in March the continued lackluster performance in new-home building, which was the second lowest activity over the past six months. Home prices have risen by 41 percent and rents have climbed 17 percent over the past five years at a time when the typical worker wage has grown by only 11 percent. To relieve housing costs, there simply needs to be more homes built.”  

Across the country, single- and multifamily housing production fluctuated in March. In the Northeast, housing production rose 12.9 percent in March month over month, but dropped in other regions, posting a 16.2 percent decrease in the Midwest, a 16 percent drop in the West, and a 2.9 percent drop in the South, the Commerce Department reported.

Despite March’s nationwide drop, the National Association of Home Builders notes that overall housing production for single-family homes in the first quarter of this year is still 8.1 percent above the pace in 2016.

“The three-month moving average for single-family starts has reached a post-recession high, which shows that this sector is continuing to firm,” says NAHB Chief Economist Robert Dietz. “We can expect further gains in single-family production throughout the year, while multifamily starts should level off.”

Housing permits—a gauge of future production—is holding promise for a turnaround. Permit issuance in March rose 3.6 percent to a seasonally adjusted annual rate of 1.26 million units, but that was all buoyed by a pickup in multifamily permits. Multifamily permits increased 13.8 percent to 437,000 units while single-family permits in March were down 1.1 percent to 823,000.