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A primer on purchase offers

By Dian Hymer, Monday, April 20, 2009.

Decades ago, sellers priced a little high to leave room to negotiate down. Buyers typically offered 5 percent less. Then they negotiated and settled at a price in between. Today, there is so much variability in the housing market that it's impossible to use a pat formula for coming up with an offer price.

Your goal is always the same: You want to buy the best house for your needs and pay the lowest price. In many cases, you can start with a price that is less -- maybe even considerably less -- than the asking price and negotiate from there. more...

Pricing right for today's market

By Dian Hymer, Monday, April 13, 2009.

Pricing too high can be the kiss of death for home sellers in today's market. Many buyers are sitting on the fence, waiting to see what happens with the economy, and hoping that home prices will drop further.

On the other hand, the recent uptick in home-sale activity confirms that low interest rates coupled with lower home prices have many buyers convinced that they should buy now. But, they are looking for bargains. more...

Mortgage seekers hit new roadblocks

By Dian Hymer, Monday, April 6, 2009.

Mortgage rates on conforming loans up to loan amounts of $417,000, and $729,750 in high-cost housing markets like San Francisco and New York City, are attractively low -- hovering close to 5 percent. That's the good news. The challenge is getting through the approval process.

Several years ago, one couple bought a home in Hercules, a suburb in the San Francisco Bay Area, for $650,000, with no cash down payment and no documentation of their income, employment or assets. They would not have qualified using conventional financing with full documentation. Their income didn't support a $650,000 mortgage. more...

Homeowners find it pays to go green

By Dian Hymer, Monday, March 30, 2009.

The green revolution is spreading as the public becomes aware of the need to reduce dependence on foreign oil and improve the environment through conservation and recycling.

Today's recession-wary homeowners are reluctant to spend a penny on home improvements. However, some effective energy-saving home improvements don't cost much and can save you money in the long run.

For example, a tight house prevents heat loss. To keep your home from leaking, weatherstrip by sealing voids around windows, doors, vents, cables, electrical outlets, and switches and electrical wires. more...

Top mistakes today's sellers make

By Dian Hymer, Monday, March 23, 2009.

Low interest rates could spark a pickup in the home-sale market in some areas. If you're inclined to sell, here are some mistakes you'll want to avoid.

The biggest mistake sellers make is listing at an unrealistic price. If you want or need to sell, your home must be priced at or under current market value, particularly in places where prices are declining.

To avoid pricing too high or too low, carefully research your local market before selling. more...

Buying house? Think long term

By Dian Hymer, Monday, March 16, 2009.

Now would seem like a rotten time to sell. The economy is in recession and many housing markets around the country have suffered serious downturns.

However, if you're a seller who will also be a buyer in a market where prices have declined, it could be a good time to both sell your current home and buy a new one. You sell for less than you would have in 2004, but you also pay less than you would have then. more...

Top home-buying mistakes

By Dian Hymer, Monday, March 9, 2009.

Low interest rates and home prices have convinced some homebuyers that now is a good time to buy. If you're a first-time buyer or haven't bought in awhile, take heed of mistakes you'll want to avoid.

Buying a home takes time. Invariably, your life will get busy as soon as you get serious about buying. Working with a good real estate agent who knows your area well, stays on top of details, and communicates promptly and clearly definitely helps.

However, never forget that you are the decision maker. more...

Smart buyers put on reporter's hat

By Dian Hymer, Monday, March 2, 2009.

It's risky to buy a home in an area you know nothing about. Plan to investigate the neighborhood before you buy to make sure you'll like living there.

Buyers who know homeowners in the neighborhood have a ready source of information. Buyers transferring from out of the area face a bigger challenge.

Your future employer can recommend neighborhoods, and may know people living there that you can contact. Subscribing to a local newspaper will give you access to local news and events. more...

Home inspection: Don't buy without it

By Dian Hymer, Monday, February 23, 2009.

Easton v. Strassburger, a landmark California lawsuit in 1984, changed the way residential housing defects were dealt with when a home is sold. Before the Easton case, the credo was buyer beware. Today, few buyers would consider buying a home without first having it inspected by a competent home inspector. more...

Whole new ballgame for refis

By Dian Hymer, Monday, February 16, 2009.

Mortgage interest rates dropped to an average rate of 5.04 percent, not including fees, during the week ending Dec. 19, 2008, according to the Mortgage Bankers Association (MBA). This caused a pickup in the mortgage refinance activity resulting in a 62.6 percent increase in the MBA Refinance Index from the previous week.

How many of these applications result in successful refinances remains to be seen. Lenders' qualifying criteria have tightened. The lowest interest rates are reserved for homeowners who have sufficient equity in their homes and who have high credit scores -- usually above 720. Lenders are also stricter on the borrower's overall debt-to-income ratio, but this varies from lender to lender. more...

Home-price indices: Which is most accurate?

By Dian Hymer, Tuesday, February 10, 2009.

Experts dispute the validity of home-price indices commonly used in the residential housing industry and often quoted in bold headlines in the press. Recently, a headline in the San Francisco Chronicle reported a "Big drop in October home prices."

This eye-catching lead was based on data from the Standard and Poor's/Case-Shiller 10-City Composite Index that declined 19.1 percent in October 2008 from a year ago. The S&P 20-city index dropped 18 percent. The San Francisco metropolitan region index plunged a whopping 31 percent. more...

Homeowner's insurance hang-ups

By Dian Hymer, Monday, February 2, 2009.

After paying out huge settlements to clean up mold damage, homeowner insurers pulled back from issuing new policies on homes where a water damage claim had been made within the last five years.

They also minimized their exposure to mold claims by excluding mold coverage altogether or limiting their coverage. Currently a common cap on such claims is $5,000, although this can vary from one company to the next.

Some insurers are less concerned about water damage claims today. However, they are concerned about the profile of the insured. more...

Remodels holding more value than home prices

By Dian Hymer, Monday, January 26, 2009.

Remodeling Magazine's 2008-2009 Cost vs. Value Report, produced each year in conjunction with Realtor Magazine, contains good news about the value of remodeling projects.

The recent Cost vs. Value Report showed that renovations on a nationwide basis held their value better than home prices did in 2008. According to the National Association of Realtors (NAR), home prices declined 7 percent in 2008, while the value of homeowners' investments in remodeling dropped only 2.8 percent in 2008.

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Contingent sale offers can benefit sellers

By Dian Hymer, Monday, January 19, 2009.

Convincing a seller to accept an offer that's contingent on the sale of another property can be challenging. The odds of acceptance improve if the offer is structured to the mutual benefit of both buyers and sellers.

From the buyers' perspective, there are advantages and disadvantages to contingent sale offers. A big advantage is that the buyers don't have to go through with the purchase if their home doesn't sell. They don't risk much.

The buyers may incur costs of inspecting and appraising the property, but the expense is minimal compared to buying a new home before selling the old one and ending up owning two homes at once. more...

Is 80-10-10 financing dead?

By Dian Hymer, Monday, January 12, 2009.

One of the few certainties in the real estate business is that it's always changing. At this point, the financing end of the business changes daily. A lender may approve a loan one day and decide just before closing that it no longer offers that type of financing. Then, weeks later, they are back in the game. more...

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