5 Ways to Sell a Home Faster, For More Money

24/7 Wall St. recently asked real estate experts and several real estate organizations to weigh in on how sellers can get their house sold at the best price and in the shortest amount of time.

Here’s what they had to say as some of the best ways to get the “sold” sign out this spring:

1.Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
2.Set the right price: Real estate professionals know how to set the price and prepare a home for sale. Agents use comparable sales of homes sold in the last 60 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
3.Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers should point out any features in their homes — such as energy-efficient windows or appliances — that could save buyers money with utility costs.
4.Give the home Web appeal: Good photographs make a home stand-out online and help lure more potential buyers to the front door. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site.
5.Make it move-in ready: Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Some agents recommend that sellers get a home inspection prior to putting the home up for sale, which can help sellers be proactive in identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers are obligated to disclose it or fix it.

Low-ball Offers a Thing of the Past?

Daily Real Estate News | Tuesday, April 24, 2012
Last year, 10 percent of REALTORS® complained about receiving low-ball offers on listed homes — offers usually submitted by the buyer for 25 percent or more below the list price, according to a National Association of REALTORS® survey of its members. But that number has dropped drastically.

According to a survey this March of 4,500 agents and brokers, no REALTORS® complained about low-ball offers. The main problem nowadays: The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.

For home buyers who still think they have a chance of hitting it lucky with a low-ball offer, they’re finding in many markets that their offers are more often being rejected or countered closer to the original asking price, the Los Angeles Times reports.

West Neal with Prudential Olympia in Olympia, Wash., recalls a buyer who came in recently with an offer of $150,000 for a home listed at $250,000. Eventually, they negotiated a final sales price of $230,000, but it took a lot of negotiating on the agents’ parts to get the buyer higher.

"Low-ball offers are down a lot because we're seeing more homes come on the market that are more realistically priced," Neal told the Los Angeles Times.

Source: “Low-ball Offers Decline in Some Housing Markets,” Los Angeles Times (April 22, 2012)

Home prices close to bottoming, to rise in 2013

WASHINGTON (Reuters) - The relentless decline in home prices is nearing an end and prices should rise for the first time in seven years in 2013, but a possible new wave of foreclosures could threaten the recovery, according a Reuters poll of economists.

The median forecast of 24 economists polled by Reuters was for the S&P/Case-Shiller 20-city home price index to end the year unchanged. That was the same finding back in January for this house price gauge, which covers 20 cities.

"We are expecting a gradual improvement, but if we get a big wave of new foreclosures coming to the market, price declines could be even greater," said Yelena Shulyatyeva, an economist at BNP Paribas in New York.

The survey forecast the S&P/Case-Shiller home price index rising 2.0 percent next year, up from 1.5 percent in the January survey.

The housing market's collapse pushed the economy into its longest and deepest recession since the 1930s. Historically, housing has led the economy out of recession, but it has been the weakest link in the recovery that started in mid-2009.

While residential construction accounts for a mere 2.3 percent of gross domestic product, home prices have an oversized reach in the economy, influencing a wide range of consumption decisions by households.

House prices have so far fallen about 32 percent from their peak at the end of 2005, and an estimated 11 million Americans now owe more on their homes than they are worth.

A resulting tide of foreclosures has held back the housing market's recovery.

The survey predicted about 1.5 million foreclosed properties will come on to the market this year. While there is no comparison for this figure, most analysts believe the foreclosure wave has either peaked or is close to topping out.

Given that foreclosures and the accompanying fear of further price declines are the main obstacles to any housing market recovery, few analysts say that further purchases of mortgage backed securities by the Federal Reserve will help.

Fed officials meet on April 24 and 25 to debate whether further steps are needed to drive borrowing costs lower to spur stronger economic growth.

Mortgage rates are already near record lows and house affordability is the best in history.

"The problem with the housing market is not necessarily that mortgages are expensive," said Millan Mulraine, a senior macro Strategist at TD Securities in New York.

"It's more the expectation that prices may continue to fall and cause a lot of potential buyers to sit on the sidelines to wait for more attractive entry points. I don't think there is lot more mileage to be achieved from MBS purchases."

Further MBS purchases by the U.S. central bank, however, could help keep mortgage rates low as the economy's recovery gains momentum.

The survey forecast the 30-year mortgage rate averaging 4.00 percent in 2012, down from 4.15 percent in the January poll.

Although job growth slowed in March, the labor market is expected to continue strengthening this year.

That should help to lift home sales. Sales of previously owned homes are expected to register an annualized 4.70 million unit annual pace in both the second and third quarters of this year before topping at 4.80 million units in the fourth quarter.

That compares to a rate of 4.60 million units and 4.70 million units in the second and third quarter respectively in the January survey.

"This gradual healing is encouraging, but we must tread carefully as the housing market is still far from a robust recovery," Michelle Meyer, an economist at Bank of America Merrill Lynch in New York.

7 Metros Where List Prices Soared Last Month

Daily Real Estate News Wednesday, April 18, 2012 Nationwide median list
prices rose more than 5 percent in March compared to February, according to
Realtor.com housing data of 146 markets. The median list price nationally is now
$189,900.

In fact, nearly all of the 146 metro areas saw median list prices rise or hold
steady month-over-month except for five metros (Columbia, Mo.;
Melbourne-Titusville-Palm Bay, Fla.; Minneapolis-St. Paul, Minn.; Fort
Collins-Loveland, Colo.; and Reading, Pa.).
The areas seeing some of the largest month-over-month increases in median list
prices are:
1. San Francisco
Month-over-month increase: 6.10%
Median list price: $649,000
2. Washington, D.C.-Md.-Va.-W.Va.
Month-over-month increase: 5.92%
Median list price: $270,000
3. San Jose, Calif.
Month-over-month increase: 5.57%
Median list price: $495,000
4. Oakland, Calif.
Month-over-month increase: 5.04%
Median list price: $336,120
5. Seattle-Bellevue-Everett, Wash.
Month-over-month increase: 4.97%
Median list price: $314,900
6. Toledo, Ohio
Month-over-month increase: 4.90%
Median list price: $104,900
7. New Haven-Bridgeport-Stamford-Danbury-Waterbury, Conn.
Month-over-month increase: 4.29%
Median list price: $365,000
The metro areas that have seen the largest jumps in median list prices over the year
include Phoenix-Mesa, Ariz. (a 23.45% increase in list prices compared to March
this year to March 2011); Miami (a 22.27% increase), and Boise City, Idaho (a
19.73 percent increase), the Realtor.com data shows.

Fading 'Fear Factor' Among Home Buyers?

Daily Real Estate News Monday, April 16, 2012 The real estate market is
thawing this spring. Following five years of dismal sales and falling prices,
the housing market is starting to see a turnaround, according to housing
surveys, agent reports, and economists.

Home Buyers are returning to take advantage of record housing affordability while
investors are buying up foreclosures in bulk at bargain prices.

"The biggest challenge that we've had over the past four years is fear — fear that
the economy is collapsing, that property values are collapsing, that the world
is coming to an end," Mark Prather, a broker at ERA Buy America Real Estate in
La Palma, Calif., told the Associated Press. "The fear factor is all but
gone."

The signs are already there: Home sales prices are starting to edge up, even in
hard-hit housing areas like Phoenix and Miami. Also, banks are issuing more
mortgages. JPMorgan Chase recently reported an uptick in loan applications
recently by 33 percent, and the bank said that it issued 6 percent more
mortgages from January through March than last year. Wells Fargo reported an 84
percent increase in loan applications and the issuing of 54 percent more
mortgages in the last year.

Still, the housing market has some ways to go, with a surge of foreclosures expected to
soon hit the market and the unemployment rate still high in many parts of the
country.

"This gradual healing is encouraging, but we must tread carefully as the housing
market is still far from a robust recovery," Michelle Meyer, an economist at
Bank of America Merrill Lynch, told Reuters News.

Source: “US home-buying season finally signaling a recovery,” The Associated Press (April 15, 2012) and “Close to Bottoming, Home Prices May Rise in 2013,” Reuters (April 12, 2012)

Home Ownership Makes Tax Time Less Taxing

With the April 17 tax deadline less than a week away, your clients still have
time to take advantage of the valuable tax benefits home ownership affords. The
National Association of REALTORS®' consumer site, HouseLogic.com, can help.

“Our government encourages home ownership because it benefits families, communities,
and our nation’s economy; home ownership is an investment in our collective
futures,” said NAR President Moe Veissi, broker-owner of Veissi & Associates
Inc., in Miami. “HouseLogic.com helps home owners identify the benefits that
will save them money today and plan ahead for future savings, as well.”

HouseLogic.com provides tips and tools for home owners, and devotes an entire section of its
site to tax incentives for the home. NAR members can check out A Home Owner’s
Guide to Taxes to find helpful articles they can pass along to their clients,
such as 10 Easy Mistakes Home Owners Make on their Taxes, 12 Tough Questions
(and Answers) About Home Office Deductions, and 6 Deduction Traps and How to
Avoid Them that provide consumers with a wealth of information to ensure they
get the maximum return to which they’re entitled.

Tax benefits that encourage home ownership include the mortgage interest deduction,
deductions for property taxes, and tax credits for energy-efficient remodeling
projects and heating and cooling systems.

For more information on tax deductions and preparation as well as articles you can
add to your blog or Web site, visit www.houselogic.com.
Source: NAR

Did High Gas Prices Fuel the Housing Crisis?

High gasoline prices provided the trigger that burst the [housing] bubble,” says
JunJie Wu, an Oregon State economist and one of the authors of a new study that
blames high gas prices as the main culprit for the housing crisis that started
in 2007.
“The theory recognizes the role of subprime mortgages and lax lending practices as
inflating the housing bubble,” Wu says, but adds that a spike in gas prices was
the “trigger.”
The new study, conducted by economists at University of California, Berkeley, and
Oregon State University, attempts to pinpoint the cause of the housing crisis.
The researchers say that while the housing market is blamed on initiating the
2007 financial crisis, researchers have found little consensus on what actually
caused the housing crisis in the first place.
The researchers offer rising gas prices as the main culprit, noting that oil prices
more than doubled between late 2006 and 2008 to $4.15 per gallon.
“The real estate mantra is ‘location, location, location,’” Wu says. “If you find
yourself in a location that is far from work and transportation costs rise
suddenly, that location can lower the value of your house.”
The researchers note that mortgage default rates were highest in commuter areas.
Also, they say that low-income households and suburban homes located away from
business centers were the most vulnerable in the housing crunch.
So will the recent rises in gas prices slow the recovery? Yes, say the researchers,
“especially for communities tied to high transportation costs,” Wu says.
Source: “Some Economists Say High Gas Prices Triggered Housing Crisis,”
RISMedia (April 8, 2012)

Rents Continue to Climb, Make Buying Even Better

As demand increases, rents continue to rise, increasing 5 percent over the past
12 months. Meanwhile, the asking prices for homes fell 0.7 percent in that time,
according to a new report released Thursday by Trulia Inc.
“Buying a home is more affordable than renting now in almost every part of the United
States,” says Jed Kolko, Trulia’s chief economist.
The national vacancy rate for apartments during the first quarter fell to its lowest
point since late 2001, according to a report by Reis Inc. Cities that have the
lowest number of available rental units are seeing some of the largest increases
in rents.
"A lot of people who were owners lost their homes in the bust in these places,"
Kolko says. As such, many of these former home owners have turned to renting,
which has been ramping up demand and driving up rents across the country.
Nationally, the median rent was $1,350 a month in March — up from $1,285 a year ago,
according to Trulia.
Rents have risen the most the last year in markets such as Sarasota, Fla. (12.9
percent); Miami (12.1 percent), San Francisco (11.1 percent), Middlesex County,
Mass. (10.6 percent), and Edison, N.J. (10.5 percent), according to Trulia.
Source: “Rents Keep Rising as Home Prices Stagnate,” CNNMoney (April 5, 2012)

Bidding Wars Are Back, Agents Say

Some real estate markets are reporting that home buyers are having to pay more
than asking price to get the home they desire, as the supply of for-sale homes
has shrunk, Bloomberg News reports.
Bidding wars were a common part of real estate in 2006. But when the market turned from
a “seller’s market” to “buyer’s market,” more sellers started seeing lowball
bids than high bids. Now times are slowly changing, and bidding wars are being
reported in several markets, such as in Seattle, Boston, Silicon Valley,
Miami, and Washington, D.C., Bloomberg reports.
The inventory of homes for-sale is near a six-year low. Mixed with the low
inventory, the job market has been improving and buyers are being lured to the
record level of affordability in the housing market. Existing-home sales and
pending home sales are up more than 8 percent compared to a year earlier, the
National Association of REALTORS® recently reported. Trulia Inc. also reported
that falling home values and low mortgage rates have made home buying a better
deal than renting in 98 of the 100 largest metro areas.
“The housing crash is finally giving way to recovery in an increasing number of
markets across the country,” Mark Zandi, chief economist for Moody’s Analytics,
told Blommberg. “The decline in unsold listings and vacant homes and the
increase in rents presage better times ahead for single-family housing.”
Source: “Bidding Wars Erupt as Supply of Available Homes Shrink,
” Bloomberg News (March 31, 2012)