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5 Quick Tips To Get A Better Price On Your Home Purchase

When you are looking to buy a home, it is important to keep in mind that no real estate price is set in stone.

There is always room for negotiation, and with the right techniques you may end up saving thousands of dollars on your dream house.

However, it can be tricky to get the right reaction when you are negotiating.

Here are a few tips that will help you to haggle your way to the best deal.

Find Out The Seller's Motivation

If they really need to move and sell the property, it will be easier to convince them to negotiate on price or other deal points.

For example, they might be relocating for a job or the house might be close to foreclosure, which would give them the motivation to sell quickly at the price you offer.

Investigate How Long The Property Has Been On The Market

If the seller has been trying to sell the home for several months or longer, they will be much more receptive to competitive offers than a seller who just put their house up for sale last week.

Research Comparable Properties

Find out the price of recently sold properties in the same area that are comparable to your prospect.

This will give you an idea of how much you should bid on the house.

Knowledge is power in any type of negotiation, so arm yourself with as much information as possible.

Keep Your Cool

Even if you are absolutely head-over-heels in love with a property, refrain from showing your excitement to the seller.

You could lose any advantage you might have in negotiation if you let the seller and their agent know how much you really want the property.

Don't Offend

Be careful not to bid too low. Sometimes sellers are offended by low ball offers and will refuse to work with you afterward.

Even when you are just attempting to get the home for a great price, the seller may become offended, which will leave you disappointed and empty-handed.

These are just a few tips to keep in mind for getting a great deal on your dream house.

If you'd like more help negotiating the price of a Chandler home, please contact a licensed real estate professional for more information.

4 Critical Tips When Purchasing Foreclosure Real Estate

Buying a foreclosed property in Chandler and the surrounding area can be different than buying other types of real estate.

In many cases you will be able to get a fantastic deal on a home, but you will need to go through quite a bit of work and negotiation.

Here are four tips to help you navigate the foreclosure buying process:

Find the right real estate agent

The first thing to keep in mind is that your real estate broker will deal directly with the bank that owns the foreclosed property.

The bank has the final say in whether they'll accept your bid - so you want an agent who has developed a good relationship with them.

Know that cheap doesn't mean good value

Sometimes the tiny price tag on a foreclosed property can be very tempting, but make sure you are asking questions about the value and the potential expenses of the house.

Will it require extensive repairs?

Will you be able to find a tenant?

Does the property have potential for appreciation over time?

Perform a house inspection

If the previous owners were foreclosed on because they couldn't make their mortgage payments, it's possible they didn't have enough money to give the home the proper maintenance it needed.

Make sure you have the property inspected by a professional to spot any problems.

Take extra care if the house has been empty for a while, as there could be problems with plumbing, insects or mold.

Look for intentional damage

Keep in mind that many owners were forced out of their property by the bank, so they might have removed as many appliances, light fixtures and other items as they could which usually means the house is stripped bare.

The previous owners might have been angry and felt justified in damaging the property.

Make sure to do a thorough inspection to find out what appliances you'll need to buy and messes you'll need to clean up.

If you are considering buying a home in foreclosure, you could possibly get a great deal on a house with a lot of potential.

Make sure you follow these tips and contact your licensed and trusted real estate professional for more information about buying a foreclosed property.

Surprisingly Strong Jobs Report May Affect Mortgage Rates

Last week's jobs report -- a combination of the Department of Labor's Non-farm Payrolls Report and Unemployment Rate -- provided investors and job seekers with unexpected good news.

Job growth for February handily exceeded most economists expectations of 160,000 by adding 236,000 new jobs.

According to the Bureau of Labor Statistics, employment increased in business and professional services, construction and healthcare:

• Business and professional services added 73,000 jobs
• Construction added 48,000 jobs. Of these, 17,000 jobs were for residential construction.
• Healthcare added 32,000 jobs

Since September, construction employment has risen by 151,000. This increase in construction jobs may point to a strengthening in the home building sector.

Stronger home building numbers may lead to increasing home prices for sellers and property appreciation for home owners.

Strong Jobs Numbers Help Stock Market Rally, May Spur Higher Mortgage Rates

Retail has added 252,000 jobs over the past year. Hiring in retail suggests that consumers are spending more, which is a strong indicator of economic growth.

These figures demonstrate a trend toward economic recovery and added a last-minute boost to last week's stock market rally.

Rising stocks generally cause bond prices including MBS to fall and mortgage rates to rise.

The seasonally adjusted employee participation rate declined by 0.40 percent year over year; in February 2012, the seasonally adjusted was participation rate was 63.9 percent; in February 2012, the participation rate was 63.5 percent.

The Unemployment Rate for February came in at 7.7 percent; this was lower than Investor expectations of 7.8 percent and January's unemployment rate of 7.9 percent.

The seasonally adjusted unemployment rate has decreased by.60 percent from 8.3 percent in February 2012.

Unemployment Rate Lowest Since December 2008

Long-term unemployment of 27 weeks or more accounted for 40.2 percent of February's unemployed.

8 million workers are employed part time due to scheduling cutbacks or because they could not find full time work.

The Fed has benchmarked an unemployment rate of 6.5 percent as a sign of sufficient economic recovery that could allow the Fed to curtail its monetary easing program.

Given this perspective, the Unemployment Rate remains high, but appears to be declining gradually.

Economic indicators and recently climbing interest rates suggest that mortgage borrowers may want to lock in their best mortgage rates now.

3 Top Tips To Selecting The Right Home For Your Family

Whether you are moving to a new house with children or you are buying your first Chandler home with the intention of raising future little ones there, many factors will come into play when making your decision.

You will want to find a house with the right size and layout, that has a suitable number of bedrooms and bathrooms, is in an excellent neighborhood and has all of the local amenities your family will need.

Here are three important factors to consider during your new home search:

Location

Take a look at the area where the property is located.

Is it close to a school that your kids can attend when they are old enough?

Is there a playground where they can play with their friends?

Are you near any convenient shopping areas or stores for picking up groceries?

Location is one of the most important factors to consider when choosing a place to raise your family.

Neighbors

Take a look at the demographics of the neighborhood.  You may want to spend some time walking the neighborhood and learning about the surrounding area.  

Taking evening walks in the neighborhood might allow you the opportunity to meet other people who are living there and learn what they think is important about the area.

If it has mostly young families around the same age as you, your children will likely have plenty of neighbors to play with as they grow up.

Affordability

You may think that spending as much as you can possibly afford on an expensive home is the best thing for your kids, but you might be wrong.

In fact, you could end up stressed out from working too hard to make your mortgage payments and feel like you never get enough time to spend with your family.

Another option would be to buy a more modest house that you can reasonably afford and have more time with your children.

Choosing the right place to live is difficult. It might take a while to find the right house, but when you do, it will be worth it.

When you do, you will have a wonderful place to fill with love and memories, where your children can grow up in peace and happiness.

If you've been seriously contemplating purchasing your first home, or possibly the next home, the best thing you can do is contact a licensed real estate professional to determine what is available in the market that would fit your needs.

What’s Ahead For Mortgage Rates This Week: March 11th, 2013

Mortgage rates and the major stock market indices rose last week in response to a strong jobs report and lower national unemployment rate.

The Department of Labor's Non-farm Payrolls report for February surpassed expectations with 236,000 new jobs reported against expectations of 170,000 new jobs expected by Wall Street.

This stronger than expected showing in jobs numbers points to a stronger economy and may lead to less pressure to hold mortgage interest rates lower.

The Dow Jones Index also reached record levels last week. This strong stock market performance is to be expected with better than expected employment reports.

February's numbers also exceeded January's reading of 157,000 new jobs added to the economy.

Lower Unemployment Rates Help Economy, May Push Interest Rates Higher

The Unemployment Report for February also provided good news as February's reading dropped to 7.7 percent from January's unemployment rate of 7.9 percent.

While good news, it's important to bear in mind that the Fed has established and unemployment rate of 6.5 percent as a benchmark for ceasing its monetary stimulus program.

The Federal Reserve released its Beige Book Report for March on Wednesday, and summarized reports from its 12 districts by noting modest to moderate economic improvement in 10 districts and slower economic growth in 2 districts.

Residential real estate markets are improving in most districts with home prices rising and inventories of available homes shrinking.

This news, coupled with last week's rising mortgage rates is further emphasizes the upward trend in home prices in many areas and the rising cost of financing or refinancing a home.

While rising home prices are good for the economy, they impact affordability of homes, particularly for first-time home buyers.

Busy Upcoming Week In Financial News

Next week has a busy calendar of scheduled economic news; here are a few highlights:

• Tuesday, Wednesday and Thursday: Treasury Auctions
• Wednesday: Retail Sales, and Retail Sales without Auto Sales
• Thursday: Producers Price Index (PPI) and Core PPI (PPI without volatile food and energy sectors)
• Thursday: Weekly Jobless Claims, Consumer Price Index (CPI) and Core CPI (without food and energy sectors)
• Friday: Consumer Sentiment

It will be interesting to see how or if Consumer Sentiment reacts to recent signs supporting progress toward economic recovery.

If you've been watching interest rates to see when the best time is to lock in, this may be a good opportunity.  

As the economy continues to improve, mortgage interest rates will continue an upward climb.

3 Tips To Get The Best Results On Your Mortgage Application

Although the financial markets have tightened lending guidelines and financing requirements over the last few years, the right advice when applying for your loan can make a big difference.

Not all loans are approved. And even when they aren't approved immediately, it doesn't have to be the end of your real estate dreams.

There are many reasons why a mortgage loan for the purchase of your real estate could be declined.

Here are a few things to understand and prepare for when applying for a mortgage:

Loan-to-Value Ratio

The loan-to-value ratio (LTV) is the percentage of the appraised value of the real estate that you are trying to finance.

For example, if you are trying to finance a home that costs $100,000, and want to borrow $75,000, your LTV is 75%.

Lenders generally don't like a high LTV ratio. The higher the ratio, the harder it normally is to qualify for a mortgage.

You can positively affect the LTV by saving for a larger down payment.

Credit-to-Debt Ratio

Your credit score can be affected negatively, which in turn affects your mortgage loan if you have a high credit-to-debt ratio.

The ratio is figured by dividing the amount of credit available to you on a credit card or auto loan, and dividing it by how much you are currently owe.

High debt loads make a borrower less attractive to many lenders.

Try to keep your debt to under 50% of what is available to you. Lenders will appreciate it, and you will be more likely to get approved for a mortgage.

No Credit or Bad Credit

Few things can derail your mortgage loan approval like negative credit issues.

Having no credit record can sometimes present as much difficulty with your loan approval as having negative credit.

With no record of timely loan payments in your credit history, a lender is unable to determine your likelihood to repay the new mortgage.

Some lenders and loan programs may consider other records of payment, like utility bills and rent reports from your landlord.

Talk to your loan officer to determine which of these issues might apply to you, and take the steps to correct them.

Then, you can finance the home of your dreams.

Look For Improvements In The Real Estate Market In 2013

The previous couple years' doom and gloom outlook is looking like it is turning more upbeat and robust for the rest of 2013.

Home Prices Climb Nearly 10% Over Past Year

In fact, a recently released report by CoreLogic stated that home prices were up 9.7 percent from one year previously.

That kind of increase is a very good sign that the momentum may be building for a strong real estate market this year.

Many other economic experts are predicting that things might be improving this year, including increases in both home prices and sales.

Here are some of the ways that these positive changes may impact home buyers and sellers this year.

For Buyers:

Attractive Financing Options

Interest rates could remain at the lowest levels they have been in years, which can make purchasing a home more affordable.

Stiffer Competition

More buyers will be competing for the homes that are available which could mean bidding wars on homes with more than one interested party.

Be sure to take this into consideration before making your offer, and have a licensed real estate professional representing you in your purchase negotiations.

Great Home Prices

Housing remains affordable in many areas of the country. Although home prices are rising, the cost of real estate is well below what it was ten years ago.

And For Sellers:

Marketing Is Vital

Working with a skilled property professional is imperative to ensure the best advertising and marketing for your listing.

Real estate agents have access to the Multiple Listing Service (MLS), which is where other agents and buyers look for properties that are listed and available for purchase.

Contract Negotiations Prevalent

Multiple offers will become more commonplace. Do your research on how to best handle contract negotiations.

Maximize Your Selling Price

Make sure you get the most for your home. Know what other properties are selling for in your neighborhood, and consider hiring a designer to stage your home for showing.

With the Phoenix real estate market shifting, both buyers and sellers need to be aware of how the changes could affect them.

Whether you're looking for your dream house or wanting to get the highest return on your home for sale, a great next step would be speaking with a qualified real estate professional.

Metro Area Home Values Continue To Shine

The Standard and Poor’s Case-Shiller Home Price Indices released February 26 show strong growth in the majority of 20 cities and corresponding metro areas tracked during 2012.

The S&P Case-Shiller Home Price Indices measure home prices nationally and locally by compiling data from individual indexes including a 10-City Composite Index,  a 20-City Composite Index, and a 20-Metro Area Index that includes metro areas for each of the 20 cities used in the 20-City Composite.

Metro Areas Show Nearly Universal Growth

19 of 20 metro areas showed higher home prices in Q 4 2012 with the New York metro area showing a decrease in home prices; this could be due in part to the impact of Hurricane Sandy.

Highlights include:

The Atlanta and Detroit metro areas saw Q4 2012 Atlanta home prices increase by 9.9 percent year-over year, while Detroit home prices rose by 13.6 percent as compared to Q4 2011.

Home prices in the Phoenix Metro area improved by 23 percent compared to Q4 2011 for the highest year-to-year increase of all metro areas in 2012.

The 10 and 20 city indices and national home price composite improved as well.

The 10 and 20-city composites have gained approximately 8 to 9 percent since reaching their most recent lows in March of 2012; current readings indicate that home values have returned to autumn 2003 levels, but remain about 30 percent lower than they were at their peaks in June and July 2006.

On a month-to-month basis, both the 10-and 20- city composite Indices returned to positive readings with each rising by 0.2 percent, which recovered last month's losses of 0.2 and 0.1 percent respectively.

The national home price composite is determined from information taken from the 9 geographic divisions established by the U.S. Census Bureau.

It rose by 7.3 percent year-to-year, but fell short of the Q3 2012 reading by 0.3 percent.

While some areas are still facing challenges, some cities and metro areas where home values declined the most are rebounding nicely.

All in all, it is quite apparent that the broad U.S. housing markets are recovering. 

5 Simple Indoor Do-It-Yourself Projects for Your Home

With spring right around the corner, you might be thinking about sprucing up your Chandler home.

However, it may not yet be time to work in the garden or on other outside endeavors.

If cabin fever has been setting in, this is a great time for indoor improvements to brighten your living space and get you warmed up to work outside when the seasons change.

Whether it's over-stuffed closets or cluttered garages, everyone has a problem area or two on their property that has not been touched in a while.

Below are a 5 simple ideas to get you started. Maybe you can even get the kids to lend a hand!

Organize That Closet

Clear out the things you don't need and make it easier to find the things you do.

You can build a closet system in just a couple hours for ranging from $100 - $500 to put everything at your fingertips.

Create An Indoor Garden

Check out these fun indoor gardening ideas, using recycled materials from around your home.

Get the kids involved and spend an afternoon creating a work of art - and memories!

Paint An Accent Wall

Or, you could choose to do an entire room! The room you spend the most time in should probably be your starting point.

Choose a color that will set the mood you want to foster, such as an energizing red or soothing blue.

Add Shelves Or A Bookcase To A Room

If your house has papers and books stacked up on counters or in cabinets, you may need some additional shelving.

Built-in bookcases or shelves can help a cluttered area feel more spacious.

Paint Your Kitchen Cabinets

A bright coat of paint can do wonders for your kitchen and is an inexpensive option that may increase the value of your home.

Obviously this is more than a one-afternoon project, but it is definitely a low-cost way to give your kitchen a new, fresh look.

Whatever your vision, now is a fantastic time to tackle an indoor project which can keep the whole family busy and ward off the winter doldrums at the same time.

What's Ahead For Mortgage Rates This Week: March 4th, 2013

U.S. Budget Stalemate, Italian Elections Stir Concerns

Mortgage rates were lower last week as investors sought safety in bonds in the wake of US legislators' failure to agree on budget cutbacks, and after Italy’s elections failed to reveal a leader committed to continuing economic reform.

When bond prices including Mortgage Backed Securities rise, mortgage rates typically fall.

While the March 1st deadline for passing budget cutbacks for the U.S. government passed without a resolution, emergency legislation passed last year will keep the government running until March 27.

If a budget is not passed by then, the federal government could face shutdown.

As it stands, $85 billion in cuts are scheduled over the next seven months, but this represents only about 2 percent of the federal budget.

Investor concerns are likely to rise if the March 27 deadline approaches without a resolution.

Italian Elections Influence Investor Sentiment

On Monday, Italian elections were held, but the results did not reveal a leader dedicated to continuing economic reforms necessary for stabilizing Italy's economy.

Another round of elections may be required to determine Italy's new leader.

There is deep conflict in Italy as citizens do not agree with the need for economic austerity measures.

As the Eurozone's third largest economy, Italy's division on future economic reforms raises two concerns for investors.

First, without a clear reform leader established in last week’s elections, Investors fear that austerity measures may be relaxed and increase Italy’s debt risk.

A less likely risk is that Italy may leave the EU if it cannot resolve its need for economic reforms with its citizens' wishes.

Upcoming Economic Releases

The coming week's scheduled economic releases include:

• Ongoing developments regarding the U.S. budget and aftermath of the Italian elections are expected to continue influencing U.S. financial markets.

• On Tuesday ISM Services Index for February will be released. Wednesday's news includes the Fed's Beige Book Report for March and Factory Orders for January.

• Thursday's scheduled economic news releases include Productivity and Trade Balance reports. Friday finishes the week's economic news with the Employment report, which includes job and unemployment data for February.

As spring approaches, demand for homes typically increases, which in turn may drive up home prices and mortgage rates.

Consider getting pre-approved for a mortgage and looking for your new home sooner than later.

5 Important Tips To Save Money On Your Tax Bill

April 15th seems a long way off, but it will be here before you know it.

Now is the perfect time to start getting your paperwork in order.

Owning real estate can make a big difference on your tax return, so make sure that you're taking advantage of all the deductions you're entitled to.

We've outlined a few below:

Mortgage Interest

Unless you paid cash for your purchase, you probably took out a loan to buy your Phoenix home.

Mortgage interest is one of the best tax deductions available, so be sure to hang on to that 1098 Mortgage Interest Statement from your lender.

You can almost always deduct the entire amount of interest paid per calendar year.

Real Estate Taxes

Depending on where your property is located, you are likely paying real estate tax, either to the state or to a local governing authority.

Taxes based on property value are generally deductible as well. You may have an escrow account to hold these funds during the year, so be sure that you only deduct the amount of taxes you actually paid.

Home Equity Line of Credit

You may deduct home equity line of credit (HELOC) debt interest as long as you are legally liable to pay the interest, the interest is paid in the tax year, and the debt is secured by your home.

The home equity debt has a limit of up to $100,000 ($50,000 if married filing separately).

Mortgage Insurance Premiums

Depending on how your loan is structured, you may have mortgage insurance. With the recently passed American Tax Relief Act of 2012, all mortgage insurance premiums are tax deductible for the 2012 and 2013 tax year. There are some qualifications, so check with your tax advisor.

Mortgage Interest on Land

If you purchased land with the intent to build, the interest you have paid may qualify as deductible mortgage interest as long as the structure becomes your qualified residence within a 24-month period.

This deductibility of bare land mortgage interest is a tricky one. You can see the IRS explanation here.

Your home could be one of your greatest resources for reducing your tax liability. Most times these deductions are itemized on a Schedule A (Form 1040) when you prepare your taxes.

A great next step is to call a qualified tax planning professional.  Please feel free to contact us if you would like a referral.

Existing Home Sales Rise As Home Inventory Shrinks

Home sales rose for the 11th consecutive month according to the National Association of REALTORS® Existing Home Sales Report for January.

This is the first time this has occurred since the period between July of 2005 and May of 2006.

National Average Home Price Up Over 12% Annually

The national average home price in January was $173,600, which is 12.3 percent higher than for January 2012. 

Calculated on a seasonally-adjusted annual basis, Existing Home Sales data is compiled using completed sales of single family homes, condominium units and co-ops.

January's existing home sales rose by 0.4 percent to 4.92 million sales nationally as compared to December's revised annual rate of 4.90 million sales nationally.

National sales of existing homes increased by 9.1 percent as compared to January 2012.

Regional Home Sales Support Housing Recovery

Regional home sales for January suggest more good news for housing markets. Seasonally- adjusted annual home sales rose in all regions of the U.S. except in the West, while median home prices rose for all regions.

Northeast: Home sales were up by 4.8 percent in January to 650,000 sales, which is 12.1 percent more homes sold than for January 2012. The median home price rose by 2.4 percent from January 2012 to $230,500.

Midwest: Annual home sales in January increased by 3.6 percent to 1.16 million; this is 17.2 percent higher than for January 2012. The median home price in the Midwest rose to $131,800, an increase of 8.6 percent as compared to January 2012.

South: Home sales were up by 1 percent to 1.96 million sales in January; this represents a 14.0 percent increase in annual sales as compared to one year ago. The average home price for the South was $152,100, an increase of 13.4 percent over January 2012.

West: Home sales fell by 5.7 percent to an annual rate of $1.15 million. This represents a 5.7 percent decrease in sales from one year ago. The median home price in January was $239,800 and was 26.6 percent above the region's median sale price for January 2012.

A falling inventory of homes for sale may be holding back buyers; the inventory of homes for sale fell to a 4.2 month supply from December's 4.5 month supply of homes. A 6-month supply of homes is considered average.

Home Prices May Rise Quickly

While the spring home buying season will likely see more homes come on the market in Phoenix and the surrounding area , economists caution that home prices could rise faster than expected due to increasing demand. A seller's market could be in the making.

Mortgage rates also appear to be rising; now may be your best time for gaining the advantage of relatively low home prices and mortgage rates.

Is Downsizing The Next Big Trend In Homes?

The real estate market has started to recover from the downturn over the last few years in many areas of the country, and more people are thinking about buying a new place to live.

With this new energy in home buying, an interesting trend seems to be developing.  

Instead of going for larger homes, which was an overwhelming trend in years past, many people are choosing micro-dwellings.

What is a micro-dwelling?

There are a number of different styles of micro dwellings being built.  This is a relatively new concept for homes in the United States and individual creativity abounds in this space.

The most common factor in micro-dwellings are their size. They tend to be less than 500 square feet of living space.

Some densely populated metropolitan areas like San Francisco and New York City are planning apartments as small as approximately 300 square feet!

Think this shrinking of real estate space applies only to multi-family dwellings?

Think again. You can also find tiny single-family homes — some of which are even portable.

If you're still not convinced, read on to discover a few of the factors drawing buyers to smaller living spaces.

A lower price tag - The cost of these homes can be significantly less than that of standard homes, which means you may not have a large mortgage over your head for the next 30 years.

More free time - A smaller house means less cleaning. Who isn't on board with that idea?

Less clutter - If your home is less than 500 square feet, you have to get rid of everything you don't absolutely need.

Mobility - Many of these tiny homes are equipped with wheels or built-on trailers, so moving is no longer the stressful and expensive undertaking it used to be. Simply close the door and go!

Smaller is greener - It makes sense that if your home is smaller, you will automatically reduce your energy consumption, which means more money in your pocket every month and a smaller carbon footprint.

Micro-living might not be for everyone.  It does offer an option for those who are just starting out, those who love to travel, or those nearing retirement.

And even if you don't opt for the smallest living space, reducing energy usage and saving money are ideas most anyone can take to the bank.

Photo Credit: Tumbleweed Tiny Homes

Quick Tips For Moving To A New Home In Miserable Weather

Ideally, when you are moving to a new Phoenix home, you will want to do it on a pleasant and sunny day which makes everything much easier.

However, if you are moving in the winter, or an unexpected deluge shows up on your pre-arranged moving day, it can really dampen your enthusiasm and throw a wrench into your plans.

It can also make you worry about your possessions being damaged as you move them into your new home.

Don't worry; it's still possible to move your possessions in the rain, snow or cold.

All you need is a little bit of technique, forethought and planning.

Here are a few tips to keep in mind when you are moving on a day with terrible weather:

Dress For Success

Make sure everyone in the family is dressed warmly. You will be going back and forth from indoors to outdoors a lot, so it might be tempting to not bother with your warm clothes.

However, it's important to dress appropriately. You don't want anyone catching a cold.

Wear multiple layers that you can take off or put on accordingly. Also, remember a rainproof layer if it's pouring.

Ensure Safety

In snowy climates, clear the driveway and the front porch of snow and ice, and sprinkle them with salt.

This is very important to ensure that no one slips and falls while carrying boxes out of the old house and into your new home.

The last interruption you need on moving day is a trip to the emergency room.

Wrap Up Your Belongings

If it is raining or snowing you will need to protect your belongings from getting wet.

Wrap your furniture in waterproof plastic and seal your boxes with packing tape and plastic.

Invest in enough of these supplies before the moving day so you don't have to run to the store to buy more in the middle of your move.

Keep It Clean

At your new house, set up an area at the front door with towels so that everyone can dry off the boxes and themselves to avoid tracking rain or snow into the new house.

As these simple tips point out, packing and moving in the rain or snow is a problem that can be overcome with appropriate planning.

Plus, sometimes moving in the winter can give you an advantage because there will be a low service demand that can decrease your moving costs.

What's Ahead For Mortgage Rates This Week: February 25th, 2013

A quiet past week in economic news caused mortgage rates to worsen slightly.

This week, however, will be packed with economic reports which may have an impact on interest rates going forward.

Freddie Mac reported that the average rate for a 30-year fixed rate mortgage rose by 3 basis points from 3.53 percent to 3.56 percent with borrowers paying 0.8 in discount points and all of their closing costs.

The average rate for a 15-year fixed rate mortgage was unchanged from last week at 2.77 percent with borrowers paying 0.8 in discount points and all of their closing costs.

In other economic news, the Consumer Price Index (CPI) for January fell slightly to 0.0 percent as compared to Wall Street expectations of 0.1 percent and December’s reading of 0.1 percent.

The Core CPI, which measures consumer prices exclusive of volatile food and energy sectors, was 0.3 percent for January and surpassed analyst expectations of 0.2 percent and December’s reading of 0.1 percent.

Inflation Remains Low

These readings remain well below the 2.5 percent inflation level cited by the Fed as cause for concern.

According to the Department of Commerce, Housing Starts for January fell to 890,000 from December’s 954,000 and below Wall Street projections of 910,000.

These seasonally adjusted and annualized numbers are obtained from a sample of 844 builders selected from 17,000 newly permitted building sites.

Falling construction rates could further affect low supplies of homes reported in some areas; as demand for homes increase, home prices and mortgage rates can be expected to rise.

Full Economic Calendar This Week

This week's economic news schedule is full; Treasury auctions are scheduled for Monday, Tuesday and Wednesday. New Home Sales will be released Tuesday.

Fed Chairman Ben Bernanke is set to testify before Congress on Tuesday and Wednesday.

Wednesday's news includes the Pending Home Sales Index and Durable Orders.

Thursday's news includes the preliminary GDP report for Q4 2012, the Chicago Purchasing Managers Index, and weekly jobless claims.

Friday brings Personal Income and Core Personal Expenditures (CPE).

Consumer Sentiment, the ISM Index and Construction Spending round out the week's economic news.

How To Know If You Will Need Private Mortgage Insurance on Your Mortgage Loan

 

Have you heard the term Private Mortgage Insurance (PMI) when looking to finance real estate?

You may be wondering what PMI is and how you know when you need to purchase it.

These answers can be hard to find among all the real estate jargon you might be hearing lately.

Below is the short version of what you need to know.

What is Private Mortgage Insurance?

Private Mortgage Insurance is an insurance premium required by some lenders to offset the risk of a borrower defaulting on their home loan.

When you put down less than 20 percent of the real estate's purchase price, the lender will generally require that PMI is added to the loan.

It is usually added into the monthly mortgage payment until the equity position in the real estate reaches 20 percent. However, there may be other options available in your area.

Under the current law, PMI will be canceled automatically when you reach 22 percent equity in your home, if you are current on your payments.

If you aren't current, the lender may not be required to cancel the mortgage insurance because the loan is considered high-risk.

After getting caught up on your payments, the PMI will likely be cancelled. Any money that you have overpaid must be refunded to you within 45 days.

What if Your Real Estate Increases in Value?

With a conventional loan, it may take as many as 15 years of a 30-year loan to pay your balance down 20 percent making the minimum monthly payment.

But, if property values in your area rise, you might be able to cancel the PMI sooner.

Some lenders may be willing to consider the new value of your home to determine the equity in your home.

You may, however, be responsible for any fees, like an appraisal, that are incurred to assess the new value of your property.

In the end, private mortgage insurance is likely a good option if you can't afford a down payment of 20 percent of the purchase price.

Now May Be A Very Good Time To Take Action

With all of the activity happening the housing market, now may be the best time for you to purchase your new home. 

A smart next move would be speaking with a qualified home financing professional to learn which programs and down payment options are available in the Phoenix area. 

3 Common Myths About Real Estate Short Sales

There is a lot of misleading and incorrect information about Chandler real estate short sales.

Many people don't have a clear understanding of the purpose of short sales or how they actually work.

Essentially, a short sale is when one sells their home for less than the balance remaining on the mortgage attached to the property.

The proceeds from the sale are used to repay a pre-negotiated portion of the balance to settle the debt.

A short sale can be a solution for homeowners who really need to sell their home but owe more on the mortgage than the home is worth.

Understanding the short sale process can help make the most out of a real estate sale.

Here are some common myths and why they are false:

A short sale damages one's credit record as much as foreclosure

In many cases a short sale is less damaging to your credit record than a foreclosure. Some lenders may think that the short seller acted in a more responsible manner than simply walking away from the property.

Although the amount paid may have been less than the mortgage balance outstanding, the loan was settled with the lender. Opting for foreclosure is often seen as a lack of responsibility.

To qualify for a short sale one must be behind on payments

This might have been true in the past, but it’s not anymore.

You just need to be able to prove that you are in financial hardship, which could be due to death in the family, divorce, job loss, mortgage rate hike or even loss of property value.

After a short sale you can’t buy again for five to seven years

This may be true in some cases, but not all. In certain situations the waiting period can be reduced as low as two or three years before you are allowed to purchase another home.

It would be wise to speak with licensed real estate professional or home financing specialist to get the most current options in the marketplace.

Pass it on

These are just a few examples of commonly believed short sale myths. A clear understanding of the short sale and the benefits it  can provide is important for financially strapped homeowners.

Feel free to pass this important information on to someone that you feel would benefit from it.

 

 

Builder Confidence In New Home Sales Stay Near All Time High

Many times real estate market experts point to the feelings of the nation's home builders as a bell-weather signalling the health of the housing sector.

This month's reading indicates that home builders are feeling pretty good.

The National Association of Home Builders / Wells Fargo Housing Market Index (HMI) for February changed by one point to 46 as compared to 47 for January's reading. 

Over the last four months, HMI readings have stayed within a three-point range between 45 and 47, indicating a plateau after rising from 25 to 45 in 2012.

Housing Market Index Near Highest Levels Since 2006

The good news is that February's reading remains near the HMI's highest level since April 2006, when the HMI reading reached 51.

Some builders may be taking a wait-and-see stance in their confidence as high national unemployment rates and rising costs for building materials impact home buying ability and home prices.

Regional factors influencing builder confidence include difficulties in finding building sites and labor required for building new homes.

3 Important Categories Affect The Home Builders Index

The HMI is a seasonally-adjusted index comprised of three survey categories of home builder confidence.

Readings above 50 indicate that more builders are finding conditions good than bad within each category and overall:

• Builder confidence in current new single-family home sales fell by one point to 51 in February, but sustained a positive rating.

• Builder confidence in new single-family home sales over the next six months achieved a reading of 50 in February, up from 49 in January.

• Builder confidence in foot-traffic in new single-family homes fell by four points from 36 in January to 32 in February.

February results for four regional categories consist of 3-month moving averages for new home sales: the Northeast gained 3 points to 39, The West gained 4 points to 55, the Midwest fell 2 points to 48 and the South fell by 2 points to 47.

With demand for homes increasing, home prices and mortgage rates are likely to rise during spring and summer as warmer weather brings out more potential buyers.

Check with your real estate and mortgage professional for the most updated market details in your area. 

3 Stress-Free Packing Tips For Moving Into Your New Home

Moving everything in your house to your new |**CITY & CITY**| home can be an overwhelming task.

You never realize how much stuff you actually own until you try to fit it all into boxes and move it somewhere new.

When you are packing up your things to relocate, here are some helpful tips to make your moving experience much easier:

Start Packing In Advance

You don't have to wait until the day before you move to start packing everything in your house!

As soon as you find out that you are moving, you can start packing the items you don’t often use, such as your seasonal decorations, photo albums and family keepsakes.

If you pack a few items per week, you’ll have almost everything packed by the time you are ready to go except for the essentials you use every day.

Establish A System

Rather than randomly throwing every item you see into a box, think ahead and create a logical plan for your packing.

Before you start, develop a simple record-keeping system.

Give every box you pack a number and write a corresponding list detailing the items in that box.

This way, when you arrive you will know exactly where to find each item.

Stay Organized

You will want to keep all of the items from each area of the house together so they can be unpacked easily.

For example, keep all of the boxes of kitchen supplies together and then put them straight into the kitchen when you arrive at your new home.

You could even designate a color for each room in the house and put colored stickers on the boxes so that the movers or anyone helping you can easily determine in which room a box belongs.

Bonus Tip: Sometimes Less Is More

One final consideration that can make your move easier is to use your move as an opportunity to pare down your unused belongings.

Plus, you won't be left wondering why you decided to move things from one home to another once you start unpacking.

As with many things, the more organized you are when packing, the less stressful it will be when you arrive and at your new house. 

 

Why Buying Real Estate Can Be A Smart Financial Move

Buying Phoenix real estate doesn't just give you a place to live; it can also be a very smart financial move.

This is because owning a home can be like having a forced savings account, which you are committed to for the long term.

Consistent Saving On Autopilot

Sometimes saving money on our own each month is difficult. It takes a lot of discipline to maintain a consistent savings plan.

However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property outright.

In the early years of the mortgage, the payments will go primarily to the interest on the loan.

But over time, the portion of your payment dedicated to principle increases, which accelerates paying off the entire mortgage.

Make Yourself Wealthy Instead Of Your Landlord

In the long term, owning your own home may be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own the real estate that you are living in.

When you are renting your home, it may also be possible for your landlord to increase your rent every year.

On the other hand, paying a mortgage on your real estate means that every month you get closer to owning the home.

In fact, most home mortgage lenders offer a fixed interest rate mortgage. This gives you a sense of control over how much you are paying every month, year to year. 

In a fixed rate mortgage, every mortgage payment pays down a portion of the principle on your mortgage loan.  In many cases this builds equity in your property and increases your net worth.

It's a good idea to check with a professional mortgage lender to get an idea of the most up-to-date programs available.

Real Estate May Increase In Value Over Time

Over the years, your home might appreciate in value. Many experts say that the average home value increase each year over longer stretches of time, although this will vary according to the area you live in, the current economy and other factors.

Your home’s value may very well fluctuate throughout the years, but history has shown that over the long term, buying a home can be a very beneficial financial decision.

Understanding the benefits of home ownership, including the potential financial upside of purchasing your own home, can be an excellent way to further your overall personal financial plan. 

 

Over 70% Of US Metro Market Housing Markets Improve In February

The National Association of Homebuilders recently released its Improving Markets Index for the month of February.

The report attempts to identify U.S. metropolitan areas in which the economy is improving, demonstrating "measurable and sustained growth".

259 U.S. markets are qualified as "improving" this month, a 17-market jump from the month prior and includes participants from all 50 states as well as the District of Columbia.

Experts point to improving market conditions in at least one market in all 50 states as a strong indication that the housing recovery is gaining substantial momentum.

This increasing momentum may suggest that now may be a very good time to purchase a home.

Compared to September 2011, when there were just 12 improving metro market areas, the widespread positive movement indicates how conditions are steadily improving nationwide.

So what qualifies a market as "improving"? The NAHB uses strict criteria.

First, the group gathers data from the three separate, independent sources :

1. Employment growth from the Bureau of Labor Statistics
2. Housing price appreciation from Freddie Mac
3. Single-family housing permits growth from the U.S. Census Bureau.

Next, for each of the above data sets, the National Association of Homebuilders separates for local data in each U.S. major metropolitan area.

And, lastly, armed with data, the NAHB looks for areas in which growth has occurred for all three data points for six consecutive months; and for which the most recent "bottom" is at least six months in the past.

In this way, the Improving Market Index doesn't just measure housing market strength -- it measures general economic strength.

Of the 22 markets added to the Improving Market Index in November, the following cities were included : Chico, California; Columbus, Georgia; Fort Wayne, Indiana; Topeka, Kansas; and Wenatchee, Washington.

Several markets dropped off the list, too, including Champaign, Illinois; Lebanon, Pennsylvania; and Amarillo, Texas.

The complete list of 259 metropolitan areas on February's IMI, plus breakouts of the metropolitan areas newly added and dropped is available online at http://www.nahb.org/imi.

5 Power Saving Ideas That Can Lower Your Energy Bill

How to Save Money on Energy Costs in Your Home

Many communities in Arizona and around the US are seeing their energy costs increase; sometimes dramatically.

Whether you are energy conscious or just trying to save money, there are many steps you can take to lower your Chandler home bills while helping the environment at the same time.

Below are several energy-saving measures to help you save money either in your current house or future residence. 

Heating and cooling

Keeping your home at a comfortable temperature uses more energy than anything else.

To save energy, install a programmable thermostat to adjust the inside temperature when you are not there for long periods of time.

Seal windows and doors to prevent air leaks, and close doors and air vents to rooms that are not often used.

Changing filters in your heating system monthly can also help it run more efficiently, with the added bonus of increasing the air quality in your home.

Water heaters

Heating water is usually the second highest energy expense. To cut costs, set the hot water heater at 120 degrees Fahrenheit or lower. Wrap older hot water heaters with an insulation jacket and insulate the piping leaving the water heater to prevent heat loss.

Appliances

Invest in appliances with the ENERGY STAR® rating. These appliances use less energy to run and will save money.

Cleaning the coils on the back of your refrigerator will help it run more efficiently.

Washing full loads of clothes on cooler settings and keeping your dryer vent clean will also save on energy costs.

Lighting

Besides turning lights out when leaving a room, use compact fluorescent light bulbs (CFLs). These bulbs use less energy and can last 10 times longer than incandescent bulbs.

Insulation

Improperly insulated houses mean high energy costs. If the attic is easily accessible, check and replace insufficient insulation to keep your living space at a more comfortable temperature.

By making energy-efficient choices you can save electricity without giving up the comforts of home.  Plus, with a little extra effort these simple tips might add more money to your month as well!

Clever Tips for Paying Off Your Home Mortgage Faster

Paying off the mortgage on your Phoenix home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property earlier, but you may also save thousands of dollars in interest payments.

Below are seven clever tips to help you get your mortgage payments on the fast track.

1. Save for a large down payment

Pay as large a down payment as you can reasonably afford. The more you can put down, then the less you’ll have to borrow from the bank.

2. Read the fine print

When you are choosing a mortgage, look at the fine print to find out if any restrictions apply to paying early. Some lenders will charge you for making extra or early payments. 

3. Prepay early in the life of the mortgage

This is when the loan is the most interest-heavy. In the first five to seven years you are likely paying mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

4. Be smart with unforeseen fortune

If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, consider applying it straight to paying down the principal on your mortgage.

5. Double-check your records

When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

6. Increase your payment

Even increasing your payment by a small amount every month may take years off the length of your mortgage. Consider how much you can afford to pay every month rather than just the minimum payment amount.

7. Think about a bi-weekly payment

You might want to switch to an accelerated bi-weekly mortgage payment rather than a monthly payment. This typically applies an extra payment each year.

These are just a few techniques you can use to pay off your mortgage faster.

Remember, the quicker you pay off your mortgage, the less interest you will be paying.

What's Ahead For Mortgage Rates This Week: February 11th, 2013

Mortgage rates worsened last week in response to more indications that the U.S. economy and global economic trends are improving. Global economic data was stronger than expected; which generally boosts investor confidence and leads to higher mortgage rates in Arizona and across the country.

According to Freddie Mac, the average rate for a 30-year fixed rate mortgage was 3.53 percent with borrowers paying all of their closing costs and 0.8 percent in discount points along with a full complement of closing costs.

The U.S Department of Commerce reported that Factory Orders for December improved over November; they rose from 0.0 percent in November to 1.89 percent in December, but fell short of Wall Street's expectation of 2.5 percent.

The ISM Services Index for January was released Tuesday and fell to 55.2 from December's reading of 56.1 and was slightly higher than against investors' expectations of 55.0. Readings above 50 indicate expansion of the service sector of the economy. The ISM Services Index is also an indicator of future inflationary pressure.

Homebuilders Say Markets Improve For 6th Consecutive Month

On Wednesday, the National Association of Home Builders (NAHB) released its NAHB/First American Improving Markets Index (IMI), which provided good news for housing markets in all 50 states and Washington, D. C. Metro housing markets surveyed showed expansion of improving markets for the sixth consecutive month.

259 of the 361 metro areas surveyed in the IMI showed improvement in February. By comparison, only 12 improving metro markets were reported for September of 2011.

Increasing home prices and mortgage rates suggest that now may be the time for buying a home.

The weekly Jobless Claims report released on Thursday indicated that 366,000 new claims were filed, which was higher than Wall Street’s estimate of 360,000 new jobless claims, but lower than the previous week's 368,000 new jobless claims.

Falling U.S. Trade Deficit Signals Economic Uptick

The best economic news for last week came on Friday, when the U.S. trade deficit fell to its lowest level since January 2010. The Trade Balance Report for December shows the trade deficit at -$38.5 billion against expectations of -$46 billion and November's deficit of -$48.7 billion. While a great boost for the economy, this is another indicator that recent low mortgage rates and home prices may soon become history.

Economic News scheduled for this upcoming week includes U.S. Treasury Auctions set for Tuesday, Wednesday and Thursday.

Retail Sales for January will be released on Wednesday and watched closely by investors. Retail sales account for approximately 70 percent of the U.S. economy and are viewed as a strong indicator of the economy's direction.

Jobless Claims on Thursday, Industrial Production and Consumer Sentiment on Friday round out the week's economic reports.

When Can You Buy Real Estate After Foreclosure?

If you lost your Chandler home due to foreclosure, you probably haven't given up on the dream of owning a new home. The good news is that a number of guidelines have changed which may allow  you an opportunity to buy that new home sooner than you think.  

There are a few guidelines that lenders follow to determine when you’ll qualify for financing after foreclosure. Arming yourself with this information may help you qualify again for a mortgage.

Foreclosure With Extenuating Circumstances

Generally, lenders will take into consideration any extenuating circumstances surrounding the foreclosure on your Arizona real estate.

Was there a death or illness that prevented you from earning money to pay your mortgage? Did you have a job transfer that came with a steep pay cut? Were you severely injured and temporarily disabled as a result?

You can add a memo that explains any lapses in credit worthiness to potential lenders. This report can be as long or as short as needed.

Many lenders will shorten the waiting period for documented extenuating circumstances. Traditionally the waiting period after a foreclosure is seven years. However, these waiting period guidelines may change and you would be best served by getting up to date information from a qualified mortgage professional.

Deed-in-Lieu of Foreclosure and Short Sale

You may be wondering what the waiting period for financing is if you have exercised a deed-in-lieu of foreclosure or successfully negotiated a short sale. Fortunately many lenders offer options if you were able to avoid an actual foreclosure.

Traditionally the waiting period for a deed-in-lieu of foreclosure can be four to seven years. If there were special circumstances surrounding the deal, you might be able to qualify in as little as two years. The lender may have certain down payment or credit score requirements as a condition of approval.

Getting financing after a short sale generally has the shortest waiting time before qualifying for a new home loan. Generally the lender will only require a two-year waiting period before they'll approve financing. Once again, a call to a licensed mortgage professional will give you the most up-to-date information.

The good news about financing after foreclosure is that it is possible. Your dreams of owning a home can be fulfilled even if  you have experienced a foreclosure in your past.

Case-Shiller Index Shows Near 6% Home Price Gain

Home prices continue their upward climb. 

Last week, the S&P/Case-Shiller Index showed home prices gaining 5.5 percent during the 12-month period ending November 2012, marking the largest one-year gain in home prices since May 2010.

The Case-Shiller Index measures changes in home prices by tracking same-home sales throughout 20 housing markets nationwide; and the change in sales price from sale-to-sale.

Detached, single-family residences are used in the Case-Shiller Index methodology and data is for closed purchase transactions only.

Between November 2011 and November 2012, home values rose in 19 of the 20 Case-Shiller Index markets, with previously-hard hit areas such as Phoenix, Arizona leading the national price recovery.

The Phoenix market gained 1.4% for the month and was up 22.8% for the previous 12 months combined. 

The top three monthly "gainers" for November 2012 were:

• Phoenix, Arizona : +1.4 percent
• San Francisco, California :  +1.4 percent
• Minneapolis, Minnesota : +1.0 Percent

Only New York City posted annual home value depreciation. On average, homes lost -1.2% in value there.

It should be noted, however, that the Case-Shiller Index is an imperfect gauge of home values.

First, as mentioned, the index tracks changes in the detached, single-family housing market only. It specifically ignores sales of condominiums, co-ops and multi-unit homes. 

Second, the Case-Shiller Index data set is limited to just 20 U.S. cities. There are more than 3,000 cities nationwide, which illustrates that the Case-Shiller sample set is limited. 

And, lastly, the home sale price data used for the Case-Shiller Index is nearly two months behind its release date, rendering its conclusions somewhat out-of-date. 

That said, the Case-Shiller Index joins the bevy of home value trackers pointing to home price growth over the last year. The Federal Housing Finance Agency (FHFA), for example, reported similar home price growth with its November 2012 House Price Index (HPI).

Home values rose 0.6 percent between October and November 2012 nationwide, the FHFA said, and climbed 5.6 percent during the 12 months ending November 2012. 

Economists attribute increasing home prices to higher buyer demand, record-low mortgage rates and the gradual improvement of the U.S. economy.

Tax Breaks Granted By The 2012 Fiscal Cliff Negotiations

There was plenty of discussion and debate leading up to the New Year's looming "fiscal cliff". Ultimately, the event was avoided, but not before legislation was passed which may benefit homeowners in Chandler and nationwide. 

If you have yet to file your 2012 taxes, take a minute to review the tax limitations and credit extensions, which Congress passed through the HR 8 legislation. You'll want to ensure you're paying the proper tax bill come April 15.

Of course, every individual's tax situation is unique. Review your allowable deductions and credits with your tax preparer.

Energy Updates
The tax credit for homeowners to receive a ten percent deduction, up to $500, for energy efficient improvements to homes is extended for 2013.

Estate Tax
Individual estates valued at up to five million dollars and family estates valued at up to ten million are now exempt from estate tax. After those cutoffs, the rate is 40 percent, which is up from 35 percent.

Mortgage Forgiveness Debt Relief Act
This act was also extended through 2013. It means that debt reduced through mortgage restructuring or debt forgiven in the case of a foreclosure may not be taxable.

Mortgage Insurance Premiums
This deduction for those making under $110,000 is extended through 2013. This deduction is also available retroactive for 2012. Mortgage insurance premiums paid as part of a conventional or FHA mortgage are eligible, as are premiums paid to the USDA.

Pease Limitations
These limitations that reduced the value of itemized deductions are permanently repealed for most taxpayers. However, they will be re-instituted for individuals making over $250,000, and for married couples making over $300,000 and filing jointly.

As a homeowner, you get access to special tax breaks which are unavailable to renters throughout Arizona and the country. Don't leave tax dollars on the table. Speak with your accountant to see what claims you may make.

The deadline for filing 2012 federal tax returns is Monday, April 15, 2013.

6 Tips For Buying An Older Home

Older Chandler homes sometimes offer more charm and character than the newer houses of today. They boast gabled roofs, crown moldings, hardwood floors and antique fixtures.

Buying an old house is like buying a piece of local history. Its beautiful period features can give it a timeless beauty and grace that is hard to resist.

However, buying a house from another era can be an endeavor fraught with potential problems. Older houses are not necessarily built to the same electrical or plumbing standards of today. Plus, if they have not been maintained correctly through the years, they can turn into a serious money pit or a potential hazard.

Here are six tips to keep in mind if you are considering buying an older home:

1. Always hire a professional real estate inspector to take a close look at the property. A professional inspector is trained to spot structural damage or issues that might seem minor, but may cause major problems in the future.
2. Look for signs of moisture damage. Many old houses have problems with moisture because over the years they have settled.
3. If the old house you are considering has vintage wiring, such as the knob-and-tube technology that was popular around the 1920s and 1930s, plan to completely update the wiring for your safety.
4. You might need to add insulation. Many older homes don't have insulation in the walls or attic, which can increase the size of your energy bill.
5. Be on the look out for iron pipes, which were popular up until 1940. They can become clogged with rust and may need to be replaced.
6. Have the house tested for asbestos, if it was built before the 1960s.

These are just a few things to which to pay attention out when buying an older home.

Take time to inspect the property thoroughly. With proper attention, you can mix today's modern technology with your home's period features to create a combination of charm and safety.

What's Ahead For Mortgage Rates This Week : February 4, 2012

Mortgage rates worsened last week amid evidence of an improving economy. Conforming mortgage rates climbed in Arizona and nationwide, rising to a 4-month high.

Freddie Mac has the average 30-year fixed rate mortgage rate at 3.53% for borrowers willing to pay 0.7 discount points plus a full set of closing costs.

There was plenty of news on which for rates to move last week.

First, the Federal Open Market Committee (FOMC) met and voted to hold the Fed Funds Rate in its current target range near 0.00 percent. The Fed also recommitted to purchasing mortgage-backed securities (MBS) and Treasury securities on the open market until such time as the national Unemployment Rate reaches 6.5%, or until inflation rates rise.

Then, Friday, it was shown in the Non-Farm Payrolls report that the national jobless rate had climbed to 7.9 percent, a statistic Wall Street pinned to Hurricane Sandy. In addition, it was shown that 157,000 net new jobs were added to the U.S. economy in January.

This was a slight improvement from the month prior's revised figures, and marked the 27th consecutive month of U.S. job growth. 

Also last week, the National Association of REALTORS® reported the December Pending Home Sales Index to be lower than expected; largely the result of shortages of available homes in many areas.

In addition, Durable Orders for December were more than twice what investors expected; a further indication of a strengthening U.S. economy.

Lastly, the ISM Index for January surpassed Wall Street's expectations. This manufacturing index is considered an indicator of future inflationary trends. An upward trend in this index suggests rising mortgage rates. While current mortgage rates remain relatively low, they can be expected to continue rising as the economy improves.

This upcoming week will be quieter with fewer economic series scheduled for release. Factory Orders for December will be announced, as will the ISM Services Index and Jobless Claims. Mortgage rates may continue to rise.

Help Your Home Office Shine When Selling Your Property

With telecommuting continuing to rise, and with more jobs requiring after-hours attention, showcasing your home's "home office" can help it show better with a prospective home buyer. 

It's wise to have your kitchen, bedrooms and bathrooms show well, but a great-looking home office can make a huge impact and help you sell your home more quickly.

Here are a few tips to helping your home office shine :

Designate The Right Space
Whether it's a spare bedroom or a computer nook, specify a separate place at which business is done. Make sure the area has enough room to set up a desk, a chair, a computer and a printer without making it look messy or cramped. 

Clean The Area
A clean and orderly home office shows better than a messy one. To help your home office look its best to potential buyers, get rid of clutter and only retain the essentials. Use drawers and shelves effectively.

Don't Waste Money
Don't break the bank in furnishing your home office. Consider ready-to-assemble furniture as an inexpensive, good-looking option. Buy the necessities, then use leftover, budgeted funds for office supplies such as computer paper, pens, and a cork board, for example.

Add A Decorative Touch
Once your home office is properly outfitted, add some decorative style. Hang artwork. Add a few plants. But, remember to keep it simple and neutral so that potential buyers can easily imagine the space as their own home office.

Few people think of the importance of a home office when preparing their Chandler home for sale. But, because so many people work from home these days, a dedicated home office space can be a great selling point.

Breaking Down The Federal Reserve Statement (January 2013 Edition)

The Federal Reserve's Federal Open Market Committee (FOMC) voted to maintain the Federal Funds Rate within its current range of zero to 0.25 percent, and to continue its current stimulus program of purchasing $85 billion monthly in Treasury bonds and mortgage-backed securities (MBS).

Citing weather-related events such as Hurricane Sandy and drought in the Midwest, the committee said in its statement that information received since its December 2012 meeting "suggests that growth in economic activity has paused in recent months in large part because of weather-related disruptions and other transitory factors."

Concerns over the then-looming fiscal cliff crisis may have also contributed to the economic contraction during the last quarter of 2012. Positive economic trends observed by the Fed included:

• Improved household spending
• Improving housing markets
• Growth in business fixed investments

The Fed initiated its third round of quantitative easing (QE3) in September as part of an ongoing effort to hold down interest rates and to encourage business spending. The benchmark Federal Funds Rate will remain between zero and.0.25 percent until the unemployment rate falls to 6.5 percent and provided that inflation remains stable.

The Fed Funds Rate has stayed near zero since December 2008.

The national unemployment rate was 7.8 percent in December, and Wall Street expects it to be 7.7 percent for January. The Department of Labor will release its monthly jobs report on Friday; this report includes the monthly unemployment rate. Inflation is expected to remain at or below the Fed's target level of 2.0 percent or less for the medium-term.

While noting that "strains on global financial markets have eased somewhat," the FOMC said that it "continues to see downside risks to the economic outlook." Low overall interest rates and gradual inflation work in favor of home buyers as home prices and mortgage rates are likely to rise at a gradual pace.

Mortgage rates in Chandler improved slightly after the FOMC release.

How To Paint Your Home's Exterior Walls

When preparing to sell a home, few things improve its curb appeal more than a fresh coat of exterior paint.  

Many people are intimidated by the thought of painting their home's exterior, and choose to hire a third-party to handle the work. But, you can do it yourself, with these easy steps.

First, before starting, you'll want to inspect your home. Examine all walls, look under the eaves, and pay attention to door frames and windows.  Be on the lookout for peeling paint, mildew and rough surfaces and make a note of them.

Next, gather the tools you'll need to do the job. These include :

• A power washer
• A 2-3” inch putty knife
• A 2-3” inch pull scraper
• A wire brush
• A sander
• Chlorine bleach

Then, to create a clean surface on which to paint, power-wash the walls with plain water. Detergents are not needed, and may not work as well as plain water, anyway.

Follow-up your wash with the putty knife and wire brush to remove the remaining paint. Note where paint has peeled, blistered or wrinkled. Avoid gouging the surface by holding the putty knife perpendicular to the wall, and by using moderate force.

For areas that won't easily clean, use your pull scraper. It's used the same way as the putty knife, but it has a sharp blade attached that quickly works through old paint.

Next, sand your home's exterior smooth using a piece of sandpaper wrapped around a sanding block. An electric sander may be more effective for large areas; it'll save you time and energy.

If during the cleaning process, you find mildew, be sure to remove it. A simple mix of chlorine bleach will do the job. Mildew will show through the new coat(s) of paint, so be sure to be rid of it before beginning.

Lastly, with your home cleaned and primed for paint, wait for "good painting weather" and get started. Soon you'll be ready to list your Phoenix home for sale.

Pending Home Sales Post 20th Consecutive Month Of Annual Gains

The National Association of REALTORS® (NAR) reports that the Pending Home Sales Index fell 4.3 percent in December as compared to the month prior. The index now reads 101.7.

The Pending Home Sales Index measures the number of U.S. homes that have gone "into contract", but have not yet closed. The report is based on data collected from local real estate associations, and from national brokers.

Despite December's drop, however, the annual rate at which contracts for a home purchase were drawn increased 6.9 percent from one year ago, and marked the 20th consecutive month of annual purchase contract gains.

NAR reports that 80% of homes under contract are closed with 60 days, with the majority of the remained homes "sold" within months 3 and 4.

Analysts believe that December's Pending Home Sales Index drop is not a result of a weakening housing market. Rather, it's a function of a falling national home supply; in particular, a shortage of homes in the West Region offered a prices under $100,000.

The national housing inventory is currently at an 11-year low. However, regionally, results varied :

• Northwest : -5.4 percent from November; +8.4 percent from one year ago
• Midwest : +0.9 percent from November; +14.4 percent from one year ago
• South : -4.5 percent from November; +10.1 percent from one year ago
• West: -8.2 percent from November; -5.3 percent from one year ago

Although December's Pending Home Sales Index dropped as compared to November, the year-to-year growth of pending home sales suggests a broader improvement in the U.S. housing market. Furthermore, the index is a strong indicator of existing home sales, which means that this season's home sales should outpace those from 2012.

The Pending Home Sales Index is bench-marked to 100, the value from 2001, which was the index's first year of existence. 2001 was considered a strong year for the housing market so last month's 101.7 is considered a positive measure for the housing market.

Analysts project a strong Spring market in Phoenix and nationwide.

What's Ahead For Mortgage Rates This Week : January 28, 2013

Mortgage rates rose last week as investors gained confidence in the global economy. China and Europe posted better-than-expected manufacturing rates, U.S. Jobless Claims fell for the second straight week, and the worst of the European debt crisis appears to have passed.

Last week's economic news provided further evidence of a strengthening U.S. economy.

The National Association of REALTORS® released its Existing Home Sales report, which indicates that existing home sales improved by 13 percent on a year-over-year basis and are now at their highest point since 2007. The group expects sales of existing homes to increase by 9 percent in 2013.

The Commerce Department released its monthly New Home Sales report; while new home sales for December fell short of Wall Street's expectations, sales of new homes are almost 20 percent higher than they were one year ago.

Growing demand for homes coupled with lower inventories of available homes suggests that the days of rock-bottom home prices and low mortgage rates are dwindling.

According to Freddie Mac, the average mortgage rate for a 30-year fixed rate loan was 3.42 percent with borrowers paying 0.7 percent in discount points plus closing costs. The average rate for a 15- year fixed rate mortgage was 2.71 percent with borrowers paying 0.7 percent in discount points plus closing costs.

While slight, the week-over-week increase in mortgage rates in Phoenix could become a trend.

Weekly Jobless Claims fell below Wall Street forecasts for the second week in a row. 330,000 new jobless claims were filed; far fewer new claims were filed than the 360,000 new jobless claims expected by investors. New jobless claims also fell below the prior week's 335,000 new jobless claims. Fewer jobless claims are a sign of a stabilizing economy.

Mortgage rates typically rise as investors gain confidence in the economy and financial markets.

This week's economic news calendar is jam-packed.

Investors await the outcome of the  Federal Open Market Committee's first scheduled meeting of 2013, treasury auctions are scheduled for Tuesday, Wednesday and Thursday, and the Pending Home Sales Index will be released.

Plus, the Department of Labor's Non-farm Payrolls Report and Unemployment Report will be released Friday morning.

Reasons To Attend Your Own Home Inspection

As a home buyer in Phoenix , you can get a feel for whether a home's systems and appliances are in working order. However, you can't know for certain until after the home's been inspected.

This is why real estate agents recommend that buyers hire a licensed home inspectors immediately after going into contract. It's the best way to really know the home which you're buying. 

By definition, a home inspection is a top-to-bottom check-up of a home's physical condition and systems, including a review of the structure, and its plumbing and electrical systems. Home inspections are not the same as a home appraisal, which is a valuation of the property.

When you commission a home inspection, you should be present for it. Here are 3 reasons why :

Seeing For Yourself
There's a big difference between reading a report and seeing "live" what may be right or wrong with a home. With first-hand knowledge of a potential issue, you'll be in a better position to determine whether a problem warrants contract cancellation, or whether it's an additional negotiation point. 

Discovering The Home
Via a home inspection, you will learn where the systems reside within a home (e.g.; boiler room, garage), and how to operate them. This is a valuable educational opportunity and most inspectors are happy to share what they know. It's also a chance to ask questions about maintenance and upkeep.

Better Understanding
A home inspector's job is to review and disclose the condition of the home. The inspector's report, however, is just a summary on paper. In being present for the inspection, a buyer will be able to visualize and understand the report's conclusions more clearly. This can make for more effective re-negotiations with the seller, in the event that damage or distress is identified.

So, what should you do during the home inspection? Your primary tasks are to watch, listen, learn and ask questions. A professional home inspector will welcome your participation in the process.

Existing Homes For Sale At Lowest Point In 11 Years

Home sales dropped last month, but not because demand was lacking. There are fewer homes for sale than at any time in the last 11 years.

According to the National Association of REALTORS®, Existing Home Sales for December 2012 fell to a seasonally-adjusted, annualized rate of 4.94 million homes from November's tally of 4.99 million existing homes.

The Existing Home Sales report is based on the number of closings for previously-owned, single-family homes, townhomes, condominiums and co-ops. It's estimated that existing homes account for 85 to 90 percent of all home sales nationwide.

2012 was a good year for housing. Sales of existing homes climbed 12.8 percent as compared to the December 2011 tally, which may be a strong indicator of future mortgage originations and short-term demand for home-related goods.

Based on preliminary sales figures, the number of home resales in 2012 grew 9.2 percent to 4.65 million homes as compared to 4.26 million homes sold during 2011. This marks the highest number of home resales sold in 5 years -- a time which predates the recession of last decade.

In addition, the median price of a homes resale read $180,800 in December, which is a 11.5 percent increase as compared to December 2011, and the tenth consecutive month of year-over-year median price growth.

Not since November 2005 has the median home resale price climbed this quickly

Furthermore, the supply of existing homes fell to 4.4 months in December, down 0.4 months from November. At the current pace of sales, the national home resale inventory will be sold by June. This is an important statistic because home supply of less than 6.0-months is thought to represent a "seller's market".

There are also just 1.82 million existing homes for sale nationwide -- the fewest since January 2001, and a 22 percent reduction from one year ago. With buyer demand high and home inventory down, home prices are likely to rise in Chandler and nationwide throughout 2013.