March 2012 totals are in and show some trends that you will want to consider if you have a home for sale or will be buying a home soon.  According to Realtor.com, housing market indicators are looking up.  The national median list price has increased between February and March, displaying a steady, slow rise.  The median list price averaged $189,900 in March of 2012, versus $179,900 in March of 2011.  Market recovery seemed to be more dependent on local economy than on housing developments at large.

Actual national home inventory displayed an increase between February 2012 and March 2012, as well, and the average days on the market for a home decreased from 111 days to 89 days in that same month span, which are other positive indicators.  While median list prices vary across national markets, the data collected by Realtor.com indicated a slight upward swing, causing many a home owner to take note.

If you are considering buying a home or selling your current home, these statistics can provide insight into the current real estate market.  Combining these statistics with historically low interest rates (3.88% for a conventional 30 year mortgage last week), could help you in determining your decision. To get more details on the study and comparisons to previous months and years and see the actual graphing trends, please click here.

The real estate industry, like most others, uses jargon that is sometimes difficult to understand. Consider this a primer to learning a few of those terms!  Below you have a step by step definition that will make you sound “in the know” when buying or selling a home.

“CLOSING” - Closing refers to the final steps in securing a home purchase.  When a property is sold, it is referred to as “closed.”

“OFFER” - Buyers “offer” a contracted rate on a home for sale. A seller may receive many “offers” and is not required to accept any.  This is why when a home buyer finds their dream home, it is important to get the “offer” in quickly.  Full price “offers” are looked upon favorably, but even “offers” of up to ten percent beneath the asking price may be an acceptable practice, too.   There are several variables to discuss with a knowledgeable real estate agent before submitting a low “offer,” however, so do your homework.  Comparing a home to others in the local market and recognizing the length other homes have been listed are helpful to consider prior to submitting or accepting any “offer” in real estate.

“DEPOSIT” - The “deposit” or earnest money pledged with an “offer,” illustrates a commitment from the buyer to the seller.  Generally the “deposit” amount is determined based on a percent of the home’s purchase price and applies to the final purchase price of the home for sale. This deposit is held “in trust” until the purchase is completed. As a potential home buyer, your “deposit” will only be accepted if your “offer” is accepted. Occasionally a home buyer decides not to move forward with the home sale which can result in the loss of the “deposit.”

“CONTINGENCIES” - Contingencies are requirements outlined in the contract that must be fulfilled prior to “closing,” often relating to financing or the house inspection. Contingencies generally last for 30 days, although the time frame depends greatly on market conditions.

“CONTRACT” - When a home seller accepts an “offer,”  the “contract” is then created.  A legal and binding document which guarantees the buyer will purchase the property when all contingencies are met. Transaction details are included in the contract, such as the property selling price and description, any important dates and contingency clauses.

“CLOSING STATEMENT” - Required by the Department of Housing and Urban Development to ensure accountability of all finances relating to the sale and purchase of a home.  Real estate commission,  escrow  securities and deposits, and any other fees must be outlined in this document. The buyer and seller will each receive a copy of the “Closing Statement” per the Real Estate Settlement Procedures Act prior to “closing.”

“CLOSING COSTS” - These are the actual costs of “closing” and include securing title, loans, appraisals, credit reports, inspections,brokers, taxes and document preparation.

Hopefully this tutorial has helped you feel a little more familiar with real estate terms, so that whether you are buying or selling a home, you can feel a bit more at ease.

A combination of historically low mortgage rates and declines in home pricing are resulting in the most affordable home market in two decades. This is great news for home buyers, provided they are able to qualify for a loan. Stricter guidelines and qualifications may make getting a home loan more challenging, so potential home buyers should work with a mortgage specialist to determine their ability to buy a home.

The National Association of Home Builders (NAHB) and Wells Fargo Housing Opportunity Index (HOI) report that nearly 76% of new and existing homes sold in the last quarter of 2011 could have easily been purchased by buyers earning $64,200 (the national median income). The previous quarter showed nearly 73% of homes in that range, marking a 3% increase.

Interest rates have been at record lows and change weekly on 30-year loans with Freddie Mac reporting an average of 3.87% on February 16th. 15-year loans were averaging 3.16%.  Many housing markets were considered affordable in the recent index, however, if you are in market to purchase a home, the following areas represent the best choice in order of affordability according to the NAHB/HOI:

• Youngstown, Ohio
• Boardman, Ohio
• Warren, Ohio
• Lakeland, Florida
• Winter Haven, Florida
• Modesto, California
• Harrisburg, Pennsylvania
• Carlisle, Pennsylvania
• Toledo, Ohio
• Kokomo, Indiana
• Fairbanks, Alaska
• Cumberland, Maryland
• Lima, Ohio
• Rockford, Illinois

Click on The NAHB/Wells Fargo Housing Opportunity Index: History of Least and Most Affordable Areas spreadsheet located here to download the list of historical data on the most and least affordable areas in your community or browse their website to learn more.

When you meet someone for the first time – what do you notice?   If you’re like many of us, that initial impression is largely determined by outside appearance. Believe it or not, that concept rings true with your home, too! That’s right, your home can foreshadow clues regarding your personality and sense of style, and its landscaping tells a story as well. Is your landscape sending the message you WANT to convey? If your home is for sale, the following tips can help to make sure you are not missing the mark!

Is your home sending the correct messaage?

If not, it may be time to consider hiring a gardener or getting help from family and friends to make some needed changes as soon as possible. The right gardener can transform the most jungle-like backyard into a beautifully manicured area of peace and tranquility, in as little as a day! With all the other tasks associated with selling your home, landscaping is a great project to outsource.

Before hiring a gardener, ask friends or neighbors for referrals. Once you have a few recommendations, ask questions and raise any concerns you may have with the gardeners/landscapers you decide to interview. Some key points to discuss are how often you would like service and what you need included at each visit. Services range from simple mowing to complete care, with reseeding, watering and fertilizing options. Don’t be afraid to ask your new gardener for help with ideas and improvements that could increase your property value and alert your gardener as to the property status, since there may be times when extra special service is needed (such as before an open house). You might even request that any extra cut blooms be left for you to use inside your home.
Keep in mind that a specialty garden is not the same as basic maintenance. If you have special circumstances, you may want to consider sharing written along with any verbal instructions with your chosen landscaper. Of course maintenance and seasonal costs, liability insurance and worker’s compensation coverage are all topics you will want to discuss before entering into any agreement.

Once you have begun your service, inspect the initial work and take time to notice the changes occurring in your landscaping. As you offer feedback to your gardener and become a part of the process, you will see your home evolve into a well-kept, beautifully groomed masterpiece. Your home will create the best impression possible and deliver the message you want to share with potential home buyers.

Home ownership can be a heavy responsibility at times… especially when times are tough.  It can be challenging to find help when times are difficult due to a  decrease or loss of income, illness, unexpected disaster or home repairs, or personal crisis such as separation or divorce.  Add to that a reduction in home values, and the problem can seem insurmountable. While savings can help to alleviate some of the impact of these life events, it is still helpful to be aware of  potential programs and alternatives offered to distressed homeowners, too.  In fact in last month’s State of the Union address, President Obama made reference to this struggle in home ownership, saying, “And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.”

If you find yourself in a no-win situation regarding your mortgage, it can be helpful to speak with your lender and ask about modifications that can be made in the short term.  You can ask about the short sale process,  too, and see if that may be a viable option for you.  A short sale is when your lender agrees to accept a lower price than is owed on your property as payment in full.  There is a lot of paperwork that accompanies this type of sale and it is helpful to use a real estate agent that has short sale experience with this type of transaction.  In fact, some real estate agents and home buyers specialize in just this type of sale and can be a great help to you!

If you want to stay in your home, rather than sell, programs such as the Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP) , or the Home Affordable Foreclosure Alternative (HAFA)  offered by Freddie Mac may all be options.  Fannie Mae and your individual lender may have other programs that can assist you as well.  Please click here to view a variety of tools on how to avoid foreclosure.  Remember that you have options, if you are willing, able, and have the time necessary to explore them.  Don’t give up!

Once you’ve purchased your dream home, it’s time to protect it! Buying a home can be very risky without homeowners Insurance. It is essential for safeguarding your most valuable possession against defects, vandalism and disaster. It will cover the costs of repairs in the event of calamities such as fire, storms, vehicles, aircraft, riots, theft, and faulty household systems or appliances. It’s important to find out what type of insurance you need after buying a home. There are six basic types:

1. HO-2, the least expensive type, covers only named perils such as fires or lightning. If the peril is not named, it’s not covered.
2. HO-3, generally recommended as the minimum coverage, includes open perils protection. It covers all direct physical losses with certain exceptions such as earthquakes, floods and intentional loss.
3. HO-4, renters and tenants insurance, covers personal property rather than the structure itself. There are also exclusions for which types of perils are covered.
4. HO-5 covers open perils and adds a rider, which includes protection of personal property. Exceptions also apply.
5. HO-6 is for condos or co-ops. It is similar to HO-4, but also covers improvements you may have made to the dwelling.
6. HO-8 is for older homes. It insures the home for the repair cost or market value instead of the cost to replace it.

If you ever watch any home buying or remodeling shows on satellite or cable TV, you know what kinds of secrets a home inspection can reveal about a seemingly-safe house! Home inspections are crucial before finalizing any real estate purchase. The purpose of a home inspection is to evaluate the physical condition of the home for sale and identify anything that needs to be repaired or replaced as well as to estimate the remaining useful life of the structure’s components.

Don’t confuse appraisals with inspections! An appraisal is for a lender to estimate the value of the home, and to make sure it meets minimum FHA standards. The FHA does NOT guarantee the value or condition of your would-be new home. If you find problems with your home after closing, don’t expect the FHA to help. It’s your responsibility to inspect the home for problems before closing.

Finally, radon gas testing is recommended for all houses by the EPA and the Surgeon General of the United States. For more information on radon testing, call the National Radon Information Line at 1-800-SOS-RADON, or 1-800-767-7236.

Inspections may be done before or after signing as long as your contract states that the home sale depends on the inspection.

If you’re ready to start looking for your dream home, and you’ve narrowed your search to a few select neighborhoods, take these following tips to heart:

1. Types of homes. Choose the type of home that is the most appealing yet practical for you. In addition to single family homes, there are multifamily homes, condominiums and co-ops. Multi-family homes are often good for first time home buying because they can have rental income to help with their mortgage.

2. Budget and investment considerations. Find a balance between your needs, wants and budget. Decide whether you should buy a newly constructed home, a bit older home or a “fixer-upper”. If you may sell your home in the future, the following are best for re-sell value:

• Homes with 3 or more bedrooms; condos with 2 or more
• Homes with “curb appeal” always sell best
• Homes that are NOT unusual or unique and not the most expensive on the block

3. While house-hunting you will probably look at many homes for sale, so keep careful and complete notes and compare.

4. When you finally find your dream home, don’t hesitate! If you snooze, you may lose!

While the holidays are a favorite time of year for millions, it’s definitely not their favorite time to buy a home. The housing market plunges between the months of November and January as people put turkey dinners, tinsel and trees on the top of their lists and house hunting on the bottom. However, if you really need to sell during the holiday season, it does have a few advantages: shoppers are typically more serious and the competition is calmer. If you are committed to putting your house for sale at this most wonderful time of the year, consider these tips:

1. Decorate your home festively, but don’t go overboard and cover up important features. Also, put treats out for buyers and crank up the heat for a cozy winter escape.
2. Post top-quality photos and videos of your house on the web. Many buyers do their shopping from the warmth of their homes when the weather is bitter.
3. Make sure your curb appeal is striking! Keep fallen leaves raked and snow neatly groomed.
4. Get yourself a reliable real estate agent and seek out serious buyers such as work re-locators.
5. As always, price to sell!!