Latest Home Prices: More Up Than Down

The median price for a single-family home sold during the three months ending June 30 fell to $223,800, 1.5 percent below the price a year ago.

Some of the results of the survey from the National Association of Realtors were more positive.  More metro area markets - 97 of 149 - gained ground than lost.

One of the four U.S. regions, the Northeast recorded a slight price gain of 0.7 percent.  The West lost 0.4 percent, the South 1.6 percent and the Midwest 2.2 percent.

NAR predicts home prices will turn slightly positive again by spring of 2008 and rise about 2 percent that year.

Home Inspections: For New Homes Too!

There are a lot of different things that need to be inspected upon the purchase of a new home.  A common misconception by many home buyers is that simply because their home is newly constructed an inspection is unnecessary.  Nothing could be farther from the truth.  New homes require an inspection just as much as any older home, and they have a special set of considerations that need to be examined.  Home inspectors are part of the buying and selling process for the protection of the buyer and it is the buyer who is responsible for arranging their own inspection.  If sellers (or in this case, builders) are hesitant to have their home inspected or try to convince you to skip the inspection then you could have a serious concern on your hands.  What are they trying to hide?  Never buy a home (new or used) without having a full inspection performed.

Home inspectors are trained to find things that could be huge issues to the home buyer.  Typically they are concerned with the vital systems that are essential to the proper operation of the home.  Systems like plumbing pipes and fixtures, the electrical system, septic system (if there is one) are all checked for wear & tear, quality and proper installation.  The foundation needs to be examined for cracks and stress fractures.  This kind of imperfection in the home's structure can be quite dangerous and expensive to repair.  However if left unattended to it can cause huge problems later on in the home's life.

Mold is another issue altogether and most home inspectors are not properly educated in the identification of and dealing with the various kinds of mold that can be found in homes.  In fact, the best method of finding out about mold in the home is to hire a professional mold specialist.  These professionals are trained in the identification of various forms of mold and can better inform you on what kinds of mold are harmful to your health as well as the correct ways to remove the mold so it does not take hold in your home again.

Always be sure to have any home you are considering purchasing inspected.  It is the only way to ensure that your investment is a wise one and that your family is safe and protected.

Who Can't Get a Mortgage Now?

For the average American looking for a home loan, the crisis in the subprime mortgage market may actually be good news.

Not only have home valuations come down, but interest rates are still historically low.  In addition, tightened lending standards stemming from the subprime crisis likely means fewer buyers, pushing down home prices.

The one catch is: You have to be a buyer with good credit, a low debt to income ratio, a healthy down payment, verifiable income, and looking to finance less than $417,000 (the cutoff for so-called jumbo loans).

If you're among the 10 percent of people with credit scores below 620 who need a subprime mortgage, things could get tricky.

If you're not sure whether you would qualify for a mortgage under today's tougher standards, or what your credit score might be, contact us or leave a comment below.  We'll get back to you with answers.

Home Buyers: Save for That Down Payment

As the mortgage meltdown has spread, lenders are demanding stellar credit and proof of income.  Zero-down payment mortgages have almost disappeared.

This means if you plan to buy a home in the next few months, you'll need to put some money on the table.  The Federal Housing Administration offers a 3% down payment loan for low-income and first-time buyers.  But FHA loan limits haven't kept up with home prices in some high-cost areas.  For a private loan, expect to put down at least 5%, and that's assuming you have good credit.  If you want to avoid private mortgage insurance, which will increase your monthly payments, you'll need to put down 20%.

You should invest your savings someplace safe so it will be there when you're ready to buy a house.  But you don't have to stuff your money in a mattress.  Some options:

Certificates of Deposit: CDs are your best choice if you plan to buy a home from six months to a year from now.  With a CD, you can lock in an interest rate that matches your time horizon.

Credit Unions: Credit unions don't advertise much, and you have to be a member to use their products and services.  But if you do a little research, you can find good rates on credit union share certificates which are similar to CDs.

High-Yield Savings Accounts: These accounts, typically offered through online banks, are paying rates ranging from 5% to 5.3%, compared with less than 1% for traditional passbook savings accounts.  If the bank is insured by the FDIC, there's no risk you'll lose your money.

 

These rates could fall, particularly if the Fed decides to cut short-term interest rates.  But you can withdraw your money at any time without penalty — an option that makes these accounts a good choice for people who are looking for a home and need quick access to their money quickly.  CDs, by contrast, offer a guaranteed interest rate, but if you withdraw your money before the CD matures, you'll forfeit some of your interest.

 

Are you trying to save to buy a home?  Have you found a particularly good place to stash your cash?  We'd love to hear your comments.

Selling a Home?  Curb Appeal Means Everything

If you're selling your home, or even THINKING ABOUT it, one of the most important things you must do is to improve the curb appeal of your home.

The exterior of your home is the first item potential home buyers are going to see.  Therefore, there should be a lot of emphasis placed on your homes exterior.  After all, if potential home buyers are turned off by your home's curb appeal, you may never get them inside the home to have a chance for a sale.  Here are a few tips to spruce up your home's exterior:

• Power-wash your siding
• Re-mulch your landscaping beds
• Trim up bushes and hedges
• Add colorful flowers
• Add some cheap bushes in bare spots
• Spot seed your lawn if you have any bare spots
• Water your lawn to "green it up"
• Weed and feed your lawn as well
• Re-paint the siding if needed
• Pick up any lose debris in the yard
• Rake up leaves
• Trim tree branches if necessary
• Keep the yard mowed very regularly
• Edge along your driveway and your sidewalks (makes a big difference)
• Pull out all weeds in landscaping beds
• Waterproof wood patios
• Re-seal concrete patios
• Hide or store away any unsightly or run down outdoor furniture and/or decor
• Repaint or replace your mailbox if necessary
• Clean outside windows
• Make any necessary repairs to siding, roof, flashing, shutters, etc.

This list is only the beginning and only includes the outside of your home.  This list can be as long (or longer) for getting the inside of your home ready to show, but hopefully these tips get you started on that all important curb appeal.

See other Home Selling Tips in the "Home Selling Tips" category of this site for more.