New Home Buyer Deals

You took advantage of the first-time home buyer tax credit, you bought your first home and now there’s the dreaded move. Moving is not only labor- and time-intensive, but also potentially messy and expensive. After all, there’s the packing and unpacking before and after the move too.

Between organizing, buying new furniture, moving old furniture and small renovations, you’ve got an entire week of work already ahead of you. To help with the often overwhelming task of moving, here are 10 tips to hopefully make your move a little easier:

1. Label each box.

There’s nothing more frustrating than tearing through boxes because you have no idea what you packed in there, only to find out it’s the wrong box in the wrong room. Prevent this annoyance by clearly labeling each box with its contents and where it belongs.

2. Measure the dimensions of each room before moving the furniture

Have you ever had this great vision of how you’d like to set up a room, only to have it ruined because a chair is a little too big and a cabinet is a bit too small? Measuring a room first can prevent this mishap and is especially helpful when you go furniture shopping; having the right dimensions will allow you to gauge how appropriate the furniture is for the size of the room.

3. Measure your windows.

Along with the dimensions, it’s also important to keep in mind where the windows are because you probably don’t want to block natural sources of light. Knowing the length of your windows will also give you a better idea of where you can put furniture or hang pictures.

4. Depending on how much stuff you have, get friends to help.

Having more people to help will lighten the load.

5. Start early.

Finishing your move when it’s dark out is always difficult, especially if you’re carrying heavy stuff.

6. Shop around.

If you’re going to rent a truck, check in with multiple rental companies to get the best price. Some places may be cheaper up-front, but charge more by the mile – so make sure you’re getting the best rate for your needs and situation.

7. Don’t try to move everything in one trip, if possible.

Instead, separate the breakable stuff like flat screens, laptops, glass and other delicate items into a second trip, by car if possible. Unless you’re going a very long distance, this method usually works better because it allows you to take the fragile stuff later in a more careful and controlled environment.

8. Use towels for cushion.

Moving dishes can be tricky, and wrapping each individual plate in newspaper is inefficient and time-consuming. Here’s a tip that has worked well for me: Use towels for cushion.

First, line the bottom of the box – or ideally, a tote of some sort – with towels. Next, stack the dishes and glasses carefully in the tote (don’t individually wrap them), making sure to cushion

the sides well. Use as many towels as you need – you’re going for close to no movement inside the tote or box. Then pack the whole case or two into your car (not a big moving truck because things can slide around).

In a recent move, I used just three large towels to wrap my dishes. By doing this, I saved myself time, paper, frustration – and nothing broke!

9. Accept imperfection. While it’s easy to want everything in place at your new home as quickly as possible, give yourself a break! Moving takes time and energy. Don’t wear yourself out by working too hard and make sure to give yourself adequate time to unpack and organize.

10. Don’t buy in a rush. When shopping, you may spot an item that you think will fit perfectly in your house and instantly buy it. Resist the temptation! A well-designed home takes time. Make sure you’re not buying on impulse and that any item you select actually suits your home. After all, you don’t want to replace that item two months later when you realize it doesn’t match everything else you have.

This article was originally featured on Quicken Loans Mortgage News, where personal finance writer, Jenny Zhang, specializes in writing about home buying, refinancing and money saving tips.

With the extension and expansion of the popular first-time home buyer tax credit, which President Obama signed into law in November, as well as price declines and attractive mortgage rates, an influx of qualified first-time buyers are rushing to take advantage of the market. Mark Zandi, the chief economist at Moody’s Economy.com, projects there will be 1.84 million home sales to first-time home buyers in 2010, compared with 1.73 million in 2009. If you’re a property virgin about to take the plunge, here are some common blunders to avoid—and helpful tips that could mean the difference between financial security and a mountain of debt:

1. Not checking your credit report and score

You’ve clicked through hundreds of online listings, compared floor plans and square footage, and are eager to jump-start your search. But before you even think of setting foot in an open house, make sure you get a copy of your credit report. The cleaner your credit report and the higher your credit score, the more likely you are to be preapproved for a mortgage at a low interest rate. According to Keith Gumbinger of HSH.com, most home buyers will need a credit score of about 720 to obtain the most favorable mortgage rates.

Review your credit report a few months before you begin your house hunt, and you’ll have time to ensure the facts are correct and dispute mistakes before a mortgage lender checks your credit. You can access a free copy of your credit report at annualcreditreport.com once every 12 months.

2. Not getting preapproved

After you’ve assessed your credit report, it’s time to establish with a qualified lender how much you can afford. “First-time home buyers need to take the time to get an approval from their lender before looking at homes,” advises Ray Boss Jr., a six-year licensed Realtor with RE/MAX Realty Group in Maryland. “This includes getting a credit check and giving their lender a copy of W-2s, pay stubs, and bank and brokerage statements.” Getting preapproved can help you save time by looking for homes that you know you can afford instead of lusting after something out of your price range. And it will put you in a better position over another bidder with no preapproval.

3. Not creating a long-term budget

If the housing crisis proved anything, it’s that mortgages were given to people who clearly did not have the means to pay them back. To avoid making this mistake, home buyers should create a budget before even beginning their home search to determine just how much house they can really afford. A good rule of thumb is to devote no more than a third of your monthly household income to housing costs, which include mortgage principal, interest, taxes, and insurance. “A good number would be 30 percent,” Zandi says. “If you are over 35 percent, you are really pushing the en­velope.” There are several work sheets available online to help you figure out how your income, debts, and expenses affect what you can afford each month for the next 15 or 30 years.

4. Forgetting about the hidden costs

You grossly underestimated what you can afford to pay each month. You factored in the purchase price of the home but didn’t consider the cost of taxes, insurance, utilities, and fees. There are several hidden costs that first-time home buyers neglect to prepare for. They can be anything from the closing costs to appraisal fees, escrow fees, homeowner’s insurance fees, property taxes, and even moving costs. Another factor is the cost of repairs and maintenance. “When you’re renting and the furnace goes out, what do you do? You call the landlord,” says Tom Vanderwell, mortgage officer for Fifth Third Bank in Michigan. “When you own a house, what do you do? You have to fix it yourself.” You may find there are numerous “nickel and dime” things to account for that could add up to a significant chunk of money over time.

5. Not using professional help

Sure, it’s possible to go out and buy a home without the aid of a professional real estate agent. But think about how much time and stress a good agent can save you. For starters, Realtors have access to all the homes on the market through the multiple listing service, or MLS, plus all the ones that are under contract and have been sold. A specialist has time to sift through all of these listings, says Boss, and make the appointments to show you the houses, create comparative market analyses to determine proper pricing,and meet with necessary inspectors. Real estate agents also can help buyers traverse a taxing, 70-page legal contract. “I would want someone who is going to look out for my interests first and foremost,” says Boss. “Someone who knows the contracts, who has experience negotiating, and who can walk me through the entire process smoothly—step by step—and make sure I get the house that’s right for me.”

6. Picking your real estate agent and lender blindly

“One of the mistakes a lot of people make is finding a Realtor they aren’t comfortable with,” says Boss. Begin your search at the National Association of Exclusive Buyer Agents, a nonprofit that represents buyers. Or ask relatives, friends, neighbors, and coworkers for referrals.

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Source: www.Usnews.com

Just a few years ago you could count on getting the bulk of your money back for almost any home-improvement project you took on. Today merely replacing a toilet seat can feel like throwing caution, and cash, to the wind. According to a study from Remodeling magazine, the average return on value for an upgrade declined from 87% in 2005 to 64% in 2009. But these six new rules will help you maximize your return on your remodeling investment.

Rule No. 1: Repairs get the biggest returns

The smartest money now goes into “undeferring” needed maintenance. That’s because while buyers might appreciate enhancements like Jacuzzis and Sub-Zeros, they won’t tolerate a house with a leaky roof or antiquated plumbing. “If a property is known to have issues, today’s buyers won’t even look at it,” says Austin real estate appraiser Jim Amorin.

And trying to keep problems a secret can cost you big-time. If buyers discover them during inspection, it’s now common practice to ask sellers not only to pick up the tab for the repair but also to pay a penalty to compensate the buyer for the inconvenience of having work done.

So the $20,000 you saved by putting off a roof repair, say, could turn into a $30,000 credit to the buyers at closing, says Amorin.

Rule No. 2: Remodeling beats adding on

McMansions have gone the way of the SUV — and large additions don’t pay off either. “There’s been a fundamental shift toward quality over quantity,” says Warwick, R.I., real estate agent Ron Phipps.

Having a big, formal living room plus an everyday family room is less desirable than having one multi-use common space. So rather than adding on, you’re better off repurposing existing square footage by reconfiguring the floor plan or capturing unused basement or attic space.

Want an eat-in kitchen? Knock down the wall between the kitchen and dining room ($2,000 to $8,000, depending on whether it’s load-bearing or contains plumbing). That will instantly create a large eat-in kitchen and give the whole house a more open feel — without a huge investment to make up at resale.

Rule No. 3: Eco-friendly upgrades can save cash

Some green improvements pay you back long before you sell your house. Install energy-efficient features, such as EnergyStar appliances and extra wall insulation, and you’ll see lower energy bills every month.

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Source: www.moneycnn.com — (Money Magazine)

More than 70% of homes sold during the third quarter were deemed affordable. Now is a good time to buy.

The Great Recession has ravaged savings and boosted unemployment rates, forcing people become more conservative with their cash. It has also made homes a lot more affordable — at least for those people still working.

The typical American family, making the nation’s median income of $64,000 a year, could afford to buy 70.1% of all homes sold in the United States during the third quarter, according a quarterly report from the National Association of Home Builders (NAHB) and Wells Fargo (WFC, Fortune 500).

That’s down slightly from the previous quarter, when 72.3% were considered affordable, but way up from the third quarter of 2008 when only 56.1% qualified.

The NAHB judges a home to be affordable if a family making the metro area’s median income could buy it if they devote no more than 28% of their gross pay toward housing costs.

The affordability pushed many buyers into the market last quarter. Plus, they wanted to take advantage of the $8,000 homebuyer’s tax credit that was scheduled to expire on Nov. 30.

Those that procrastinated, however, got lucky: The credit was recently extended and expanded to include more buyers.

“At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.

“With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices.”

All real estate is local, of course; it doesn’t matter much to someone buying in Peoria what homes sell for in Pawtucket. The fact is, though, that housing markets across much of the nation have been and remain quite affordable for most working households.

Read this Article

Source: CNNMoney.com

Property buyers in the US are becoming more aggressive due to a shortage of real estate as the first time buyer tax credit pushes up sales.

The latest figures from the National Association of Realtors show that existing home sales surged 10.1% in October while total housing inventory fell 3.7%.

‘The supply of homes on the market is now at the lowest level in over two and a half years. In fact, low end inventory has become very tight in many areas and in some cases buyers are becoming more aggressive, NAR President Viki Cox-Golder.

Existing home sales are now 23.5% above what they were in October 2008 and overall sales activity is at the highest pace since February 2007.

Yun said he was surprised at the size of the gain.

‘Many buyers have been rushing to beat the deadline for the first time buyer tax credit that was scheduled to expire at the end of this month,’ he said.

He is predicting similarly robust sales for November followed by a measurable decline in December and early next year before another surge in spring and early summer.

Now that the tax credit has been extended and expanded, potential buyers have until April 30 next year to have a contract in place.

‘There is still a large pent-up demand that can be tapped before the tax credit expires. Our recent consumer survey shows that 13% of successful first time buyers had a previous contract that was canceled or fell through.
We’re getting closer to a general balance between buyers and sellers,’ said Lawrence Yun, NAR chef economist.

Existing home sales are now 23.5% above what they were in October 2008 and overall sales activity is at the highest pace since February 2007. Yun said he was surprised at the size of the gain. He is predicting similarly robust sales for November followed by a measurable decline in December and early next year before another surge in spring and early summer.

(Read this article)

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic.

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale.

Today, banks demand 9.5 weeks to respond to a short-sale request compared to 4.5 weeks a year ago, according to research firm Campbell Communications. The banks’ reluctance is frequently stymieing sales and frustrating real estate practitioners.

“It drives me up a wall,” says Robert G. Hertzog of Summit Home Consultants in Phoenix. “(The bank is) holding my client hostage.”

Source: BusinessWeek, Christopher Palmeri (10/09/2009)

Featured New Home City:  Tampa, Fl

If you want it all, then look no further because your home! With over 2 million residents, Tampa offers a wealth of opportunity to those seeking a robust and diverse Florida Lifestyle. Referred to by the locals as “Tampa Bay” this area covers three counties, Hillsborough, Pinellas, and Pasco, but often extends to the Sarasota area as well.

Comprised of the lively atmosphere of downtown Tampa and the Westshore District, world-renown, picturesque beach locales of Clearwater and St. Petersburg, as well as theme parks, Internationally-recognized shopping and dining, major art and concert venues, the notorious Gasparilla Parades, an International Airport and Seaport, this is an amazing place to live. Not to mention, home to the Tampa Bay Rays, the 2008 American League Champions, the Spring Training Location for 2008’s MLB World Champions, and the one-of-kind Raymond James Stadium where the beloved Buccaneers grind it out, we’re a town were big things happen.

With no income tax and low property taxes, Tampa Bay residences enjoy a reduced cost of living. Enhanced by an ideal buyer’s market, federal legislation supporting first-time home buyer home purchase, as well as incredible interest rates, now is the time to make your move.  To get started on your search for your new home in Tampa Bay visit NewHomeBuyerDeals.com.

Short sales continue to dominate our market today.  Buyers have their minds set on “getting a great deal” by pursuing short sales and are not venturing out of the box to explore all of their options.  Lorraine Daniels, Realtor with Prudential Tropical Realty, says that 90% of her clients are coming in with short sales request.  What the buyers may not realize is the tedious process involved in bidding for these homes.  The buyers will find a home they like and place a contract on it,  only to have their hearts broken if the house is sold to a higher bidder.  ”There is no guarantee  the house will be in the same condition when the contract gets written, these homes are often vandalized” says Daniels.  When comparing to a new home, the security of  getting what you contracted for,  is priceless. “New Homes offer you a peace of mind when it comes to the integrity of the home, new warranties, and no surprises at closing” says Daniels.  Builders have adjusted to the economy by making new homes affordable. Many home builders are contributing towards closing costs, or adding appliance packages to help the home buyer.  So if you are looking to buy a home soon, now  is a great time.

Buyers seeking a foreclosed property should realize that not every foreclosure is a good deal.

Urge would-be buyers of foreclosures to have the property thoroughly inspected, says Dan Steward, president of the Tampa-based inspection firm, Pillar to Post. Lenders are not held to the same disclosure requirements as sellers.

Steward says damage isn’t always obvious. While it doesn’t take an expert to see that a toilet has been ripped out, it does require someone with knowledge to know that ripping it out damaged a pipe 20 feet down the line.

The best way for the buyer to get the property is to follow the bank’s instructions closely, says Ryan Melvin, co-owner of More Realty Group in Las Vegas, which specializes in foreclosures.

Another quirk that sometimes surprises buyers of real-estate-owned properties, or REOs, is the scrutiny that banks place on the buyers’ credit, even though they are using a different lender.

Source: The Wall Street Journal, Amy Hoak (09/27/2009)

Everyone’s been saying “Now’s the time to buy,” for quite a while, but for many who’ve been waiting on the sidelines, the autumn “off-season” of real estate may indeed be the right time to act.

“Anybody who is trying to sell a house going into the winter months has to be flexible, and you should be able to get good deals,” says Guy Cecala, publisher of Inside Mortgage Finance. With mortgage rates at record lows and favorable home prices, buyers should be active.

Here are some tips for buyers to help ensure a successful close:

• Secure Employment: Buyers must have a stable job in order to feel comfortable about the purchase and to get approved for a mortgage.
• Spotless Credit: Credit scores above 720 still get the best mortgage rates, as lending remains tight. Help buyers to correct any errors on their credit reports.
• Build Cash: Let house hunters know that the days of no-down-payment loans are a relic of the past. Depending on the situation, they’ll need to put down at least 3.5 percent of the purchase price.
• Follow Uncle Sam: Though the first-time home buyer tax credit is set to expire November 30th, there’s talk it may be extended into 2010. Buyers may still be able to take advantage of this opportunity, but pay attention to the news out of Washington to see if eligibility will be extended.
• Be Ready to Bargain: Purchasers are in a position to ask for a lot more if a seller needs to move. If you think the floor needs to be replaced, ask for it. “In my market, buyers still have a great deal of influence and sellers will do just about anything, assuming it is doable and legal,” says NAR First Vice President Ron Phipps, a broker with Phipps Realty in Warwick, R.I.

Source: U.S. News & World Report, Luke Mullins (10/14/09)