Peter Middleton's Blog

There are many challenges to face in the market, but following some simple rules may help put you a step ahead.

Start out by making a good first impression. Curb appeal is very important and if your house looks rundown on the outside, people will assume the same about the inside. Buyers want to feel like they could live in a home from the moment they pull up in front of it. Basic improvements such as exterior painting, cutting the grass and planting some flowers improve the look of a home from the outside tremendously.

Watch out for any odors in the home that could turn away buyers. Be sure to professionally clean the carpet and the furniture and replace carpets if necessary. Keep pets clean and the home free from dander. Consider taking pets and pet cages if present in the home with you when you leave for showings.

Consider repainting inside with a neutral shade that will be attractive to a wide variety of buyers. A little putty and paint can make all the difference. Repair damaged dry wall, gouges in wood surfaces and anything else that looks like it needs work.

De-clutter your home by packing up knick-knacks, heirlooms, personal collections, and even family photos. After all, they are special only to you and your goal is to make the home presentable to the widest number of people possible. Expensive collections should be packed away as well to keep them safe.

If you own a gun, be sure it’s unloaded and lock it away. Don’t leave it accessible to anyone viewing your home, especially anyone with children. The same is true for prescription drugs, fine jewelry, valuable art work, money and anything else you want to keep safe.

By putting these easy rules into effect, your home will look better in no time and be more appealing to buyers!

While the market conditions are not ideal, there is still opportunity for rookie agents to thrive. Here are some tips for helping others buy and sell their homes.

First, make a solid business plan. This means setting goals and having timelines for meeting them. Create both short- and long-term goals. Start out small, with goals like meeting 10 new prospective clients a month or getting office space with a larger brokerage firm. Then think big, such as selling one home each quarter, month or week.

Next, budget your money and have a clear-cut plan on what you will be spending it on. This may mean cutting back on on other areas in order to invest in your business.

Decide if you are entering the real estate market full-time or as a part-time agent. This is important. Many clients, especially first-time buyers, require lots of time. They may want to see thirty houses before they settle on one to purchase. Does your current job allow for you to be gone for extended periods of time on showings or to take calls in the middle of the day? Many times we spread ourselves too thin, giving none of our creative spark to anything in particular. If you can afford it, then make the leap to a full-time real estate career.

Seek out mentors in your new field. There may be a more seasoned agent at your firm that is willing to answer questions or to share tips. Learn from other's experience. There are also generic mentors, such as through books, videos, extended learning classes, and agent associations. They generally have a library of resources for you to tap into.

Part of building your business is prospecting and building connections. Be kind and generous to everyone you meet, from the local cashier to the city council member. This way you'll build a reputation as someone who gives other respect. Real estate can be largely a word-of-mouth industry, where a few bad reviews can be quite damaging.

To build your list of potential clients, keep business cards with you at all times. You never know when you'll meet someone who is in the market. Additionally, don't be afraid to strike up conversations with strangers. Be open about the fact that you are real estate agent.

Marketing is a key component of starting a new business. In order to compete you must have a website and market presence. Everything from brochures, cards, flyers, and emails are integral to getting your name out into the community.

Next, build a referral-based business. There's nothing better than your past work bringing you new work! Do a great job with each client and they'll refer their friends and family.

If you're new to the real estate business, welcome! Running your own business can be rewarding and fulfilling. Be patient, though, and realize it takes time to build up any business, no matter the industry. With mortgage applications and pending sales on the rise, buyers are returning to the market. This means opportunity for new agents.

According to a recent report by Morgan Stanley, homeownership in the United States is declining while renting is continuing to rise. The Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter, its lowest level since the first quarter of 1998.

However, Morgan Stanley analysts claim that rate is more likelty around 59.2%, factoring in delinquent mortgage borrowers (the ones who are likely to lose their homes at some point).

The dip in home ownership has done more than just line the pockets of landlords. It has also created a base of Americans with no home to rely on in times of financial need. Millions of owners can tap into their home's equity in times of financial stress or to pay for cars, college tuition or other major expenses.

Paying for a home is also a type of "forced savings," said David Crowe, chief economist for the National Association of Home Builders. He explained that, after interest, mortgage payments go toward paying down the loan balance -- and for homeowners who end up in the right type of loan the ending balance can be significant.

There are also less tangible benefits to home ownership. An increase in home ownership overall tends to improve community stability, according to "The Social Benefits of Homeownership and Stable Housing," a report released last year by the National Association of Realtors (NAR).

On the other hand, there are a few benefits to renting. Renters are much more mobile: They can move to take a better job if the opportunity arises. And, more often than not, renting is cheaper than buying. If renters are disciplined about investing those savings, they can come out with more wealth than buyers. Plus, renters don't lose their shirts in housing busts. "Often maligned as a product on which you 'throw your money away,' rentals have become a much more valued housing option," said the Morgan Stanley authors. 

A new state law declares that any lender who agrees to a short sale must accept it as payment in full for all loan balances. By definition, a short sale will yield insufficient funds to cover the outstanding loans in a property.

Association President, Beth L. Peerce, says “the signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference."

“SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lien holders—those in first position and in junior positions—will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property,” she adds.

“Would-be buyers on the fence need to act well before Sept. 30, when the conforming loan limit is set to be lowered, to avoid a higher cost of homeownership,” Peerce said in a prepared statement.

Lowering the limits on mortgages eligible for purchase by Fannie Mae and Freddie Mac could have a broader impact than on individual homebuyers, says Peerce. “As the housing market tries to gain a more solid footing, the decrease in conforming loan limits that is scheduled for later this year could adversely affect the market,” she says.

While many markets are still struggling, it is not the case for all of them. There are still many desirable neighborhoods that have healthy inventory levels and conditions that draw in multiple offers. Here's some ways that you can be a competitive buyer in these booming markets.

First of all, be ready to buy and know what your objectives are. Have a clear budget with boundaries of what wiggle room you will have. Know what amenities are must-haves and what things you can do without. With a clear plan of action, you will be better able to know a good deal when you see one and act on it. Any sort of hesitation can cost buyers their dream homes even if its just spending "one night to think about it" or going "to see what else is out there." Just one day or night can mean missing out on the ideal house altogether.

Second, be positive that you are pre-qualified and pre-approved for a loan. Be ready before even stepping into the seller's home. You wouldn't want to put in an offer on your dream home onlyn to find out that the financing has fallent through. Lending is tight right now and you may not qualify for as low of an interest rate as you might think. Others may not even qualify at all! After you are pre-qualified or approved, be sure to stay in contact with your lender, so that there are no surprises when it comes time to make an offer.

Throughout the entire process, communication is key. Be sure to keep in contact with your agent about new listings and showings in your area. New homes are constantly entering the market and in hot neighborhoods, they aren't for sale long. Even waiting just a few days can cost you losing a home to another buyer.

Next, bid competitvely. Use your agent's access to market stats, which show how much similarr homes have been selling for. By comparing other homes, you may be able to come in a little under list price and still be competitive. Or, the home may already be underpriced and in order to beat out other offers, you may need to offer more than the list price.

Finally, stand your ground and stick with what you're comfortable with. Don't lose sight of your goal of finding your ideal home with a desirable price. Stay within your original budget by not getting caught up in the excitement of a bidding war. By following this advice, you'll be signing the dotted line and living in your dream home in no time!

Saving for a down payment can be a daunting task for many, but with these 9 strategies, you'll be able to put your money down in no time!

1. Create a Budget. See where your money goes and what areas you can cut back and divert money into savings.

2. Organize. Sell things you no longer need or won't be a good fit for your new home. A clutter-free organized home is a time saving home and time is money.

3. Create and Follow a Routine. Have money deducted from your income, before you have a chance to spend it, and deposited in a savings account with the highest possible interest rate. Research around for Federal Deposit Insurance Corporation (FDIC) insured savings, certificates of deposit (CDs), money market funds, and other savings or investment vehicles. 

4. Hoard Windfalls. Save any and all extra income including: tax refunds, holiday cash gifts, small lottery winnings andn other forms of unexpected money.
 
5. Withhold Less. If you do get a tax refund, it may be time to adjust the money withheld from your paycheck. A tax refund is a free loan to the government. It costs you lost interest it could have earned in a savings account. Adjust your W-4 accurately to reflect your true tax liability. Use the Internal Revenue Service's withholding calculator to get it right. 

6. Cut Back. Resist temptation and reduce spending on eating out, buying clothing, gifts and  gasoline. Instead, try buying generic brands, brewing your own coffee, or getting a better cell phone and cable TV plan.

7. Dump Credit. Don't spend money you don't have and save credit for emergencies only. Pay off debt. Reducing credit debt gives you money to save and it can boost your credit score.

8. Liquidate Assets. Try selling things you no longer need and/or use. Items tucked away in your garage or attic may be worth more than you'd expect and saving for a home, may be just the reason to sell them.

9. Get a Second Job. Even working just a few extra hours a day can earn you a few hundred dollars a month. Think about working overtime during holidays or finding an additional source of income solely for the purpose of saving for your down payment.

While the market continues to fluctuate up and down, most Americans still feel that owning a home is an essential component of the American Dream. The National Association of Home Builders (NAHB) recently took a survey of those voting in 2012 and found that "Americans see beyond the immediate housing market to the enduring value of homeownership.” 

According to NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home.”

“Homeownership is worth the risk, pure and simple,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies. “Even though the market is weak, people who don’t own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher,” Newhouse says.

The survey found that homeownership and a retirement savings program are considered by voters to be their best investments. Also, 80 percent of home owners would advise a close friend or family member just starting out to buy a home and saving for a downpayment and closing costs is the biggest barrier to homeownership. Finally, Americans believe that owning their own home is as important as being successful at their job or being able to pay for a family member’s education.