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Economists differ on housing recovery

By Dian Hymer, Sunday, September 28, 2008.

Opinions differ as to when the housing market will turn around. Most analysts think that we have not yet hit bottom. Some think we might be close. One of the keys to the puzzle is the state of the housing inventory.

In May, there was a 10.8-month supply of homes for sale at the current sales pace, according to the National Association of Realtors (NAR). This was a move down from an 11.2-month supply in April. When the supply reaches the six- to seven-month level, the housing market should pick up, barring a major recession or a big jump in inflation or interest rates. more...

Common ways sellers fudge their listings

By Dian Hymer, Sunday, September 21, 2008.

Some people just don't get it. If you advertise a house as having a San Francisco Bay view, buyers will expect to walk into a public room like the living room and see the bay. They won't be satisfied with a peek of the bay from the master bathroom.

Exaggerating in advertising not only leads to disappointment, it can have legal consequences. For example, sellers have been sued over misrepresenting square footage. more...

Curb appeal tips that pay off

By Dian Hymer, Sunday, September 14, 2008.

Imagine going on a job interview looking shabby, or trying to sell your car for a good price when it's filthy and loaded with stuff. In a competitive market, you wouldn't do well.

The same can be said about selling your home. If it looks neglected and in need of work, some buyers won't even take a look. This is particularly the case in today's market where, in many parts of the country, there are far more homeowners anxious to sell than there are buyers interested in buying. more...

When it makes sense to overpay for house

By Dian Hymer, Sunday, September 7, 2008.

No one likes to overpay for a home, particularly in a soft market. Yet, even in the current beleaguered housing market, there are pockets of strength. In these areas, buyers can find themselves in competition. Multiple offers can drive the price up, but not always.

Most buyers today are looking for bargains. Foreclosure listings, particularly at the low end of the market, are selling to investors and first-time buyers. As home prices dropped, affordability improved, which made it possible for first-timers to make the move from renting to buying. more...

Common disputes between home buyers, sellers

By Dian Hymer, Monday, September 1, 2008.

One of the best ways to avoid getting into an ugly dispute involving a home purchase or sale is to be proactive. In order to do this, you need to be aware of the sorts of issues that can lead to disputes. By knowing what could possibly go wrong, you can prepare yourself to recognize a potential problem if it arises. more...

Must I contract with agent showing open house?

By Dian Hymer, Sunday, August 24, 2008.

Buyers often find the house they ultimately buy on their own at an open house. Do they have to use the agent that was showing the open house?

Buyers should work with the agent of their choice. However, complications can arise when there is confusion about who is working with a buyer. It helps to understand the rules of the game. more...

Don't wait until selling to make repairs

By Dian Hymer, Sunday, August 17, 2008.

Home maintenance ranks low on many homeowners' priority lists. When the washing machine breaks, you might fix it to keep from having to go to the Laundromat. But, if there's no pressing need, home maintenance chores are often put off.

In the current soft real estate market, homeowners may be less inclined to pay money to make repairs around the house. However, the key to preserving the value of your home is keeping it in good condition. more...

Will shopping multiple lenders hurt credit?

By Dian Hymer, Sunday, August 10, 2008.

It's not uncommon for home buyers to talk with several mortgage brokers or lenders to compare loan products and interest rates. One buyer who shopped around was scolded by a mortgage broker when he found out she was talking to more than one broker. He told her that she was ruining her credit score by allowing multiple credit inquiries.

Too many credit inquiries can negatively affect your credit score, but you can control the damage. And, credit inquires make up a relatively small part of your credit score. more...

Sellers use disclosure to their advantage

By Dian Hymer, Sunday, August 3, 2008.

Forty years ago, seller disclosures weren't part of the home-buying process. The rule of the game was buyer beware.

Now most states have seller disclosure requirements, although they vary from one state to the next. Consult with a Realtor, the Department of Real Estate, or a real estate attorney in the area where you're buying or selling if you have questions about what a seller is required to disclose. more...

Written home inspection report is gold

By Dian Hymer, Sunday, July 27, 2008.

A homeowner in Oakland, Calif., recently decided to put his older home on the market. At the recommendation of his real estate agents, he ordered presale inspection reports on the property. The home inspector noticed sloping in the floors and out-of-plumb door frames -- signs of settlement, which is not unusual for the area.

The seller informed the home inspector that an engineer had inspected the property when he initially purchased it. The seller, who was then a buyer, had been present at the time of the inspection, which is always a good idea. more...

Pest repairs are turnoff for buyers

By Dian Hymer, Sunday, July 20, 2008.

In a perfect world, houses wouldn't deteriorate over time. In reality, the wear begins as soon as a house is built. Older houses tend to have more maintenance issues. But, even new homes can develop problems within a few years if they were poorly constructed.

Most homes are inspected for damage caused by wood pests -- such as dry rot, termites, fungus, decay and wood-boring beetles -- before they are sold. Who pays to correct the damage -- buyer or seller -- is often subject to negotiation. more...

Common red flags for home buyers

By Dian Hymer, Sunday, July 13, 2008.

Last year, before the subprime crisis hit, a home buyer was on the verge of purchasing his first home. His mortgage broker told him that qualifying for a mortgage would not be a problem.

After reviewing the numbers of an attractive teaser-rate adjustable, the buyer had second thoughts. He called a knowledgeable friend and asked her to review the loan documents with him. After fully understanding how much the loan would ultimately cost, he decided not to go through with the sale. more...

Home sellers who understand market prosper

By Dian Hymer, Sunday, July 6, 2008.

Buyers aren't the only ones holding back in today's housing market. Many sellers are postponing putting their homes on the market because they are convinced that now is not a good time to sell. They would prefer to wait for a better market. more...

Is buying a home to live in a good investment?

By Dian Hymer, Sunday, June 29, 2008.

Anecdotal evidence suggests that in some markets investors are buying foreclosure properties at bargain prices. These properties are located in areas that appear to have good growth potential, and they generate enough rental income to at least offset the holding and maintenance costs. The deal needs to make sense financially regardless of whether there is a big run up in appreciation. The plan is to hold the property for the long term. more...

Despite lower jumbo rates, refi may be unwise

By Dian Hymer, Sunday, June 22, 2008.

Borrowers assumed when the conforming loan limit increased from $417,000 to $729,750 in high-priced areas like New York City, Los Angeles and the San Francisco Bay Area that lower rates on jumbo financing would follow. Unfortunately, the conforming jumbos (also called jumbo lights) were initially priced considerably higher than the conventional conforming loans. more...

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