Choosing the Right Contractor

 

Making major improvements to your home is one of the biggest decisions you can make.  So who actually does the job is an important decision.  How do you find the best contractor?  Money reporter Stacy Johnson has some tips.

 

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More Declines in the Housing Sector

 

The number of Americans signing contracts to buy previously owned homes fell more than forecast in November, signaling a further deterioration in housing.

 

The National Association of Realtors' index of pending home sales dropped 2.6% to 87.6, after a 3.7% gain in October that was larger than previously estimated.  The figures underscore Treasury Secretary Henry Paulson's forecast that the housing recession will continue, posing the biggest risk to economic expansion.  More stringent lending practices after the collapse in subprime lending and prospects that home prices will keep falling appear to be deterring buyers.

 

According to a survey of over 2,400 real estate agents nationwide, a third of planned home sales were canceled or delayed in September, October and November because of loan problems.  

 

Pending home resales are considered a leading indicator because they track contract signings. The group's existing-home purchases report tracks closings, which typically occur a month or two later.

 

According to The Wall Street Journal, the Bush administration is considering tax rebates of about $500 for households and tax breaks for businesses to help the economy avoid a recession.

 

What do you think?  Would such a plan as $500 tax rebates make any real difference in the effort to fight off a recession?  We'd love to hear your comment by clicking the "Comment" link below and telling us what you think.  Your email address will not be displayed for your privacy and protection.

 

 

 

Opportunities Abound to Profit in 2008

 

Tumbling home values.  Soaring energy prices.  A topsy-turvy stock market and a gazillion other financial worries, not the least of which is whether we'll spend the coming year mired in recession.

 

Considering all the black clouds hanging over the economy, you probably think there's no way you can really expect to prosper in 2008.  It will be all you can do just to hang in there, right?  WRONG!

 

We firmly believe there will be plenty of opportunities to make money this year - yes, even in real estate - as well as ways to insulate your finances from the most serious economic challenges ahead.

 

The real estate slump isn't going away soon, so whether you're buying, selling or staying put, deal with it.

 

For sellers:

Forget what the ugly house next door sold for last year or even what comparable homes are listed for today.  Instead, use the going price of houses that have recently sold as a guide - then price your home even lower so it looks like a great deal.

Best case: Your aggressive pricing attracts more than one bid, pitting buyers against one another and ultimately lifting the final sale price.

 

For buyers:

If ever there was a time to drive a hard bargain, this is it.  Don't be distracted by small stuff like whether the current owners will leave behind their appliances and window treatments.

 

Focus instead on what's really important: getting the lowest price.  Do a little homework and find out what comparable houses have sold for lately.  Then start the bidding at 10% to 15% below that recent sale price.

 

Note: This strategy works best if there are several homes on the market in your area around the same price.

 

There are many other tips throughout this weblog for buyers and sellers.  We encourage you to spend a few minutes and look through them.  It could be worth a minor fortune if you pick up a tip here or there that could add dollars to your home buying or home selling strategy.

 

 

 

Lender Going Under?

 

What should you do if your mortgage lender goes bankrupt?  Watch this video (1:12) to make sure you avoid a major problem…

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Home Inspections - What You Must know

 

So you've found the house you think you want to purchase, now you need to make certain to have the home properly inspected.  If you are planning on getting a mortgage loan, the lender will require an appraisal.  Keep in mind that an appraisal is not the same as a home inspection.  An appraisal helps the lender determine whether or not your home purchase is a smart investment, an inspection will help you find out if there are any problems with the home that need to be addressed before you complete the transaction.

 

If you do discover problems with the home, these issues should be addressed before you sign any agreements to purchase the home.  For example, you might negotiate a lower price for the home because of the problems it has.  Or, you may negotiate to complete the purchase only after the current homeowner has remedied the problems.

 

There are several different types of additional inspections you'll need to have completed before you can close on the house.  For example, the house will need to pass a termite inspection, a structural inspection, and an inspection of the well and the septic if you do not receive city services.  If the home does not pass these inspections, the lender likely will not go through with the loan.

 

Whatver you do, never ever ever let anyone talk you out of obtaining a complete home inspection before you hand over your hard earned money to buy real estate.