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THE BUZZ
Happy Holidays!
Due to recent job creation, rising rents and record high affordability conditions, the news remains encouraging on a nationwide scale as home sales continue to improve, posting a gain of 13.5% in October over last year. Market changes from September to October by region are:
- Sales increased 4.4% in the West
- Sales increased 2.8% in the Midwest
- Sales increased 2.1% in the South
- Sales decreased 5.1% in the Northeast
Still, economists aren’t announcing a turnaround in the market just yet. One of the reasons is many would-be buyers are falling out of contract. Another prime factor is tightened lending standards and the recent decrease in conventional loan limits. But there’s a silver lining – it’s likely the federal government will continue to try and keep mortgage rates at historically low levels, continuing to make this one of the best times to purchase a home.
If you have questions about whether or not you qualify, give me a call. And be sure to read this month’s Just Ask article that details how you can increase your chances of getting through a successful escrow.
JUST ASK
Q: How can I increase my odds of successfully purchasing a home?
A: Sometimes potential homebuyers are unable to close contract on a house they want. Below are some of the main reasons why a home purchase falls out of contract.
Financing issues- This is one of the top reasons homes fall out of escrow. Overzealous buyers, even those who have been pre-approved, can get in over their heads and be denied a loan. Remember, there’s a difference between being pre-approved and being pre-qualified. To boost your chances of getting funding for the home you love, get pre-qualified before you start house hunting. This helps ensure that income and credit issues won’t hinder your ability to close escrow.
Missing paperwork– Another common reason buyers fall out of contract is simply lack of proper paperwork. Some deals move so quickly that they go to contract before your income has even been verified. Make sure you’ve prepared all the tax and income statements and other documentation when your mortgage broker or lender requests it. As your agent, I would help you navigate the home buying process and clarify all of these details.
Poor appraisals- New government regulations have contributed to a rise in the number of real estate appraisers who aren't knowledgeable of the neighborhoods they are appraising. A poor appraisal can stop a contract if the bank disputes it. Always pick a local mortgage broker or lender who uses a trustworthy and local appraiser. Need help finding one? Give me a call!
MY TOWN
These days, we need a password for everything - from email to online bank accounts, from social networking to shopping sites. It can be a challenge to remember them all, especially during the holiday season when you might find yourself shopping online. Ideally, to keep all your accounts secure, you should have unique passwords for all your online accounts. But how do you remember them all?
Here are a few great tools and services that not only keep your passwords secure, but allow you to access them from multiple devices.
1Password lets you create and securely access your passwords from Mac, iPhone, iPad or Android devices. The program is $39.95 ($59.95 for a family license usable by up to 5 users). Whenever you create a new account, the program will save the account to its database. In the future, when you access that account, the program will automatically fill in the data for you. It also contains a password generator so you don’t even have to create a password. 1Password also has a beta version of its app for Windows users.
LastPass is similar to 1Password, with the exception that it saves all your data on the web rather than to your computer. It works on both Windows and Mac, as well as with every major web browser. The program is free to use, but for $12 a year you can use it on your Android, iPhone or Blackberry.
KeePass is a free app that works similarly to those above. The benefit of KeePass is it can run off a USB drive, making it ideal for users who work on different machines and don’t want to leave any of their personal data behind.
Firefox Sync takes a different tact on password management. It’s plug-in app - a program that’s added to your Firefox web browser. It syncs and protects your passwords, bookmarks and browser tabs. As long as the computer you’re using has Firefox, you can login and access your existing data. The app is available for Mac and Windows, as well as for iPhone and Android mobile platforms. The app is free, but if you prefer Internet Explorer, Safari or another web browser, you’ll want to consider one of the options above.
FYI
According to Remodeling Magazine, return on investment for remodeling peaked in 2005 when home sellers earned back roughly 86.7% of the money they spent to improve their homes. Today, on a national average, return on investment hit a low of 57.7%.
With this in mind, you’ll want to consider spending your money wisely when investing in home improvement. Here are some remodeling projects that are currently returning the most on investment:
- Houses built of durable, low-maintenance materials appeal to many homebuyers. Replacing exterior siding can bring as much as a 78% return on your investment.
- Replacing an old entry door with a new 20-guage steel door to improve curb appeal brings a 73% return.
- Adding living space without expanding the home’s overall dimensions - for example, an attic or basement bedroom and bath - is a cost-effective improvement that can bring a 72.5% return.
- A new, high-end garage door recoups on average of 71.1%.
- Adding energy efficient vinyl replacement windows can bring a 69.1% payback.
First impressions count and make buyers act more quickly. Just remember to start at the curb; make sure buyers are impressed from the moment they drive up to your home.
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