How To Add Power To Purchase Offer

Figuring out how much to offer on a home you'd like to make your own is never easy. 

A complicating factor is that although it appears that the housing market may be stabilizing, there is no guarantee that prices won't slip further.

With this in mind, don't buy for the short term. Don't buy betting on future appreciation. Buy a home that will work for you long term, at the best price you can negotiate, using financing you can afford.

To avoid paying too much, hook up with a real estate agent who will educate you about how much you'll have to pay for a home that works for you. The Internet is a great resource to help you learn about neighborhoods, current listings, and past sale prices.

However, a diligent, knowledgeable real estate agent who has experience helping people buy and sell homes in the area where you want to live can get you up to speed on what's happening in that niche market now.

HOUSE HUNTING TIP: Ask your agent to give you a summary of all listings that you might have been interested in that sold during the last three months to six months, including list price, sale price and how long they took to sell. It's also useful to have information about the change in average sale price over the past year. Have prices declined? Are they flat? Or are they rising?

Also, ask for a list of properties currently available and pending sale. A pending sale is one where the sellers have accepted an offer, but the sale hasn't yet closed. Significantly more active listings than pending sales in an area suggests a high-inventory market where buyers have an advantage. Few active listings relative to pending sales is characteristic of a low-inventory market.

During your house-hunting education, make sure your agent reports back to you about day-to-day changes in the market. If an overpriced listing has a price reduction and is now in your price range, make a point of looking at it as soon as possible. A new price can attract other buyers' interest.

When listings you've seen sell, your agent should let you know the sale price. This will help you develop a sense for when a listing is priced too high, or priced at or under market value. How well a listing is priced for the market affects your offer strategy.

A well-priced listing in a low-inventory market is likely to sell quickly. There could be more than one buyer making an offer. If so, you may need to make an aggressive offer near, at or over the asking price. However, multiple offers don't always result in a sale price higher than the list price.

Becoming savvy about local market pricing enables you to know when to make a strong offer on a new listing, even though the overall market may be lagging.

It's a different story in segments of the market where there are plenty of listings that take months to sell. In this case, you have choices, making it possible to offer less than the asking price and negotiate. If this one doesn't work out, you move on to the next. You should be prepared to walk away rather than pay too much.

Buyers making offers that are contingent on the sale of another property usually have to pay more than all-cash buyers who can close quickly. If you've already sold your home and are waiting for the sale to close, you'll be in a better position to negotiate on price.The best bet is to have your home sold and closed. It removes uncertainty in the sellers' minds and may make them more receptive to a lower price.

9 Ways to Appreciate Your House Just as It Is

Whether you've been letting your home improvement to-do list get the best of you, or are finding yourself comparing your real-world home to professionally styled and photographed ones, it's natural to get a little down on your home from time to time. 

Luckily, feeling content at home is something available to everyone, no matter the size or condition of your space. By working your way through these nine suggestions, you can gain a deeper appreciation of your house, just as it is today.

1. Consider what first drew you to your home. No matter where you live, there was likely something that attracted you to your house when you first saw it. Was it the sunny yard, charming porch, original wood floors? Once you are living in a place, it's natural to focus more on home improvements, but taking a moment to recall your favorite things about your home can put things in perspective.

2. Use your senses. If you're getting down on your house, it can be hard to find anything to appreciate — but using your senses, you can zero in on the pleasures of home. Take a quick sensory tour of your home and note anything positive: the cozy comfort of your couch, the smell of coffee brewing, the feel of a fluffy rug between your toes.

3. Contrast it with not-home. Imagine you've just been on a long trip, and you are arriving home for the first time in weeks. You close the door behind you and take a deep breath. What are you most looking forward to about being home in that moment? Think about the ways your home comforts and supports you.

4. Think beyond the visible. Is your rent or mortgage affordable, allowing you to live within your means? Is your home near your best friend's house, a lovely park or your favorite café? Is it quiet? Are your neighbors nice? There are many factors that you may not see when you look around but that are just as (or more) important than the space itself.

5. Consider what visitors like about your home. When friends come over, do they comment on how welcoming and relaxing your house is? Is it great for parties, intimate chats, or barbecues on the lawn? Pay attention to what others have to say about your space.

6. Look at the living things. Be sure to count the people and furry friends you share your home with among your blessings. Does the light in your home make it easy to grow that windowsill herb garden? Does owning your own home or having an accommodating landlord make it possible to share your space with furry friends? Do your kids love jumping on that squashy old couch?

7. Look out your windows. Do you have a view of your private garden, a bustling city street, a beautiful tree? Do you have a favorite spot where you like to sit and daydream, simply gazing at the clouds outside?

8. Look on the bright side. Sometimes all it takes is a fresh perspective to turn what could be a negative into something good. A small space may feel cramped, but it also uses fewer resources, so it's naturally greening your lifestyle.

Sharing a home with extended family may be trying at times, but it's undoubtedly providing memories you will cherish for many years. If something has been irking you, try to think of an upside.

9. Consider what your home allows you to do. Whether you love to cook, entertain, read, watch movies or play with your kids, focusing on the activities you enjoy at home can help take the focus away from that never-ending list of improvements. In fact, using your home more is one wonderfully simple way to appreciate what it has to offer.

2015 Housing Market Forecast (VIDEO)

5 Tips for Protecting Against Identity Theft During a Move

Even when a move goes off without a hitch, it can still be one of life’s most stressful events. The last thing you want is to be caught off guard by a case of identity theft just as you’re settling into your new home. Unfortunately, moving can put a big target on your back for identity thieves.

“Transporting documents and electronic devices that contain sensitive personal information, leaving a residence unoccupied and [losing] misdirected mail are all risks associated with moving,” said Stacey Vogler, managing director of insurance company Protect Your Bubble.

If your stress levels are skyrocketing at the thought of having your identity stolen in the middle of your next move, take a deep breath and follow these five tips for protecting yourself against identity theft.

1. Choose a Reputable Moving 

Company.
While a great moving company can make your relocation easier and more efficient, dishonest movers can quickly turn the process into a nightmare. Don’t forget that moving professionals often have direct access to your private possessions and information, so you always should do research to make sure a company is trustworthy. Before you hire a mover, read customer reviews online and view a company’s rating with the Better Business Bureau, recommends Robert Siciliano, identity theft expert with BestIDTheftCompanys.com.

2. Keep Sensitive Documents Safe.


If you’re holding on to a large number of old bills and financial records, reduce your risk by getting rid of sensitive documents you don’t need.

“Sort through stored paperwork to determine what should be moved to the new location and what can be discarded,” Vogler said.

Just make sure you’ve got a shredding machine handy to prevent identity thieves from combing through your trash or recycling bins for valuable information.

Organize all the sensitive documents you want to keep and separate them from the belongings your movers will be handling. Vogler recommends storing your most important records—including passports, birth certificates and Social Security cards—in a locked safe that stays with you during the move.

3. Safeguard Electronic Information.


As more information is stored online and on electronic devices, it’s increasingly important to make sure no one gains access to your computers, tablets or smartphones while you’re in the midst of moving.

If you’re discarding, donating or selling old electronics before your move, thoroughly wipe all data from those devices. Keep your other devices safe with password protection before the movers show up.

4. Direct Your Mail to the Right Place.


Even if you shred or lock away all your existing sensitive information, you still need to consider the documents that are on their way to you. Financial records mailed to the wrong address easily can put you at risk for fraud, so be sure to set up a change of address with the U.S. Postal Service before you move, Vogler said.

To further prevent these records from falling into the wrong hands, get in touch with your financial institutions and verify that they have your new address on file, said Eva Velasquez, president and CEO of the Identity Theft Resource Center.

5. Consider a Credit Freeze.
 

For even more peace of mind during your next move, Siciliano recommends investing in a credit freeze. The reason? When an identity thief steals your information and tries to open up new lines of credit, lenders typically run a credit check.

“With a credit freeze, nobody can check your credit until you personally unlock the freeze,” Siciliano said.

Without access to this information, lenders are much less likely to grant a thief a new line of credit under your name.

To put this safeguard in place, you’ll need to contact each of the three credit reporting bureaus (Equifax, Experian and TransUnion), follow their credit freeze procedures and pay a small fee (usually $3 to $15) to each bureau.
While you could opt for a fraud alert to protect your credit, Siciliano recommends a credit freeze because a fraud alert lasts for only three months. “A credit freeze is forever,” he said. Putting a freeze in place gives you one less thing to worry about during your next move—and all future moves.

7 Helpful Tips for First-time Home Buyers

Looking for a new home can be a pretty exciting task. With that much money on the line, it's worthwhile to read up on the process before you set out. Unnecessary mistakes can and should be avoided while trying to get the best deal for your money. As a first-time home buyer, proper guidance from seasoned professionals can make all the difference.

Here are a few tips first-time buyers can take when trying to find their first home:

Get clear on what you want – This is the most important part of your preparation. You are about to enter a shopping experience that is unlike any other. At times, it can be stressful and difficult. 

There is a lot of money on the line and a big commitment to be made, so prepare accordingly. Get clear on what you really want and what you are willing to compromise on. This will make your home shopping experience much more efficient and will give you a map to go off of should tensions run high. 

Take a look at this guide to buying your first home, which might help you narrow down your wants vs. needs. The better prepared you are, the better chance of having a smooth transaction.

Do your research – Home shoppers today are more empowered than ever before. You have so much information at your fingertips. Go online and find the areas you want to live in. Narrow down the neighborhoods you want to consider to three or four, and focus on those. Learn about the cost of the things you really want and the cost of the things you can do without. The more knowledgeable you are the better you will be at negotiating a good deal.

Talk to the bank – Preparing to get a mortgage in advance of your actual purchase will be super important.

Before you start looking at houses you should have a discussion with your lender. The lender will be able to give you an honest assessment of what your finances look like, how much house you can afford and what your rates will be. You want to know all of this – what it will really cost you – before you start looking at homes you can't actually afford. Find out what your monthly payment will be at different amounts and determine what your personal limits are as well. Depending on your credit, the lender may be willing to give you far more than you need. Once you know the time is right to buy a home make sure you get pre-approved by a lender. Make sure you understand the difference between getting pre-approved and pre-qualified for a mortgage. Without a doubt you will want to get pre-approved as a pre-qualification letter is not worth much. A savvy REALTOR® representing a homeowner will pick up on this right away. If you are competing with other buyers and are not financially prepared, you could lose out on your dream home!

Think about the future – Is this going to be a starter house that you will move out of in five years? Is it going to be a property that you fix up and flip? Is it going to be the home for your new family that you will be in for 10 or 20 years? Your long term plans will help dictate your purchasing choices. It is important to understand what you really want this home for before you go and sign any papers and spend any money. One of the biggest mistakes first-time home buyers make is not thinking about their long term plans.

Find a good REALTOR®– A real estate agent can prove invaluable when shopping for a home. If you find one that is good – an agent that is finding people the homes they want at a price they are happy with – then much of the work will be done for you. The agent will talk about what you want, will run you through much of the above mentioned areas and will help you find the houses that are really what you are looking for. The agent will also be an effective negotiator, meaning that you will probably get more house for your money than if you went at it alone.

Set a timeline – The situation you are in is uniquely your own. You want to set a timeline for when you will find and buy a home – a timeline that reflects your realities. If you have bad credit that needs to be cleaned up first, for instance, you will need to spend some time working on that before you actually start house hunting. If you need to move right now, that is another factor in your timeline. Give yourself some restrictions so you will be encouraged to move at a steady pace and get the job done. Hunting for a house can be quite stressful and it is not something that should be drawn out any more than necessary. Determine what you want, work with a REALTOR®, and get it as efficiently as possible.

Understand your fiscal responsibility - Another problem that first-time home buyers don't always properly think through is the financial responsibility of owning a home. A large amount of buyers will think about making their mortgage payments and nothing else. If you have been renting for a while, or even living with mom and dad, it is easy to see why this can happen.

Unfortunately, owning a home comes with quite a few more additional first-time home expenses that you may not have considered such as appliances, furniture, and even taxes and insurance. These are all important things to consider when putting together your homebuying budget.

Use all of the above tips for finding your first home and you will be well on your way to enjoying your new life as a homeowner!

Getting Organized in the New Year

The New Year compels all of us to relinquish the past and change our circumstances for the better. Hoping to literally wipe the slate clean? Look no further than your household. How many times have you vowed to keep things organized, only to discover that by mid-January, the clutter culprits are back in full force? 

Nothing kills New Year’s motivation faster than setting a goal beyond realistic reach, and if you don’t have a knack for organization, tackling your entire home will be impossible. Rather than organizing every nook and cranny, carry out a small-scale purge instead.

1. Stock up on storage.
Unloading more stuff at home seems completely counterproductive, but those bins and baskets will create order out of chaos. Place them at drop points around your house, such as near your main entrance, on your kitchen counter or coffee table, or in your home office. No need for a meticulous system – mail, coupons, takeout menus, instruction pamphlets and more can go in whichever catch-all is most convenient.

2. Gift yourself a paper shredder.
Papers tend to accumulate quickly at home, and sensitive documents can be a gateway to identity theft if not handled properly. And trust me – there’s nothing more exciting than watching your cross-cutting machine lay waste to piles of paperwork. Round up junk mail, bank statements, non-active membership documents, and any private information you’re not required to keep and get shredding.

3. Pare down duplicates.
Two isn’t always better than one. Consider donating multiples of common household items you haven’t had a need for in a year or more. 

4. Get smart about space.
Who has time for a closet overhaul? If your closets are bursting, don’t try to cram more into them. Instead, work within the parameters of the space. Vacuum seal items that are not in season, and use this space-saving trick for bed linens: store folded fitted and flat sheets and one pillowcase inside the accompanying pillowcase. For clothes, utilize the hanger strategy: flip your hanging garments so that the opening of the hanger faces you. Whenever you wear an item, put it back on the hanger and turn it to face away from you. After a few weeks, donate, toss or sell items on hangers still facing you.

5. Cut computer clutter.Having too many files not only makes documents harder to find, but can slow down your computer’s processing speed and sap precious battery power from laptops. Remove programs that haven’t been used in six months or more, delete photos that aren’t album-worthy, and reserve space on your desktop for the applications you visit most frequently.

Tech=Smart Home Buyers