How to Find the Perfect Apartment for Rent – 10-Step Process

By Jacqueline Curtis | Money Crashers

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips to Find a New Home to Rent

1. Determine Affordability

The U.S. Census Bureau suggests that your monthly rent should not exceed 20% of your monthly income – 30% at the most. For instance, if you bring home $4,000 each month, you should cap your search at around $1,200. Taking the time to update and polish your personal budget before you start looking for apartments can not only help you figure out your price range, it can also help you identify areas in your personal finances where you can cut back if you want to spend more on a pricier apartment. After scrutinizing the numbers, you may decide to drop that costly TV subscription to allow you more wiggle room in your budget for the right place.

Create your budget with a simple spreadsheet or an online service like Mint or PearBudget. Detail your income and expenses down to the penny, from fixed obligations such as phone bills, student loans, and car payments, to variable month-to-month costs such as groceries, entertainment, and clothing. You can lower your food bills by clipping coupons, and save money on your cable, smartphone, and Internet by bundling all three services under one provider. These small moves can really add up, giving you the funds you need for your future housing.

2. Lower Rental Costs

There are several things you can do to find a lower monthly rent:

• Look Outside an Urban Area. While living in the city center may seem like a priority, it doesn’t mean much if you can’t afford the rent. Instead, check out apartments in the suburbs within a conveniently commutable distance to work.
• Consider Transportation Costs. Urban areas generally require a smaller transportation budget, since you can likely take public buses or subways to get around. However, you still need to take transportation costs into consideration, whether it’s a bus pass or gas money, if you choose to live away from the city center.
• Get a Roommate. You can slash the price of any apartment in half simply by sharing it with someone. You need a landlord’s approval before doing so, but having a roommate can significantly reduce the financial pressures of renting. Just make sure you have a written agreement with your roommate laying out all obligations.
• Check for Subsidies. The U.S. Department of Housing and Urban Development (HUD) routinely offers subsidies for those with lower-income jobs who may not be able to afford rent. Search the HUD website to find affordable housing or see if you qualify for subsidies.
• Think Small. Square footage comes at a premium in an apartment, particularly in the number of rooms. Going for a studio or one-bedroom may mean missing out on some space, but you make up for it with big month-to-month savings. Assess how much space you really need based on your lifestyle, visitors, pets, and storage. You may find that you’re happier paying less for a smaller place.
• Negotiate. Unless you’re apartment hunting in a popular area with little renter turnaround, many landlords are amenable to negotiating. Check out the rates for comparable apartments with similar amenities in the area and bring your research with you to strike a better deal. You can also offer to pay rent for a longer chunk at a time (a landlord may lower the rate if you pay three or six months at a time) or choose to sign a longer lease to score a better deal overall.

3. Add Renters Insurance

For some, renters insurance is a choice, but for the vast majority, it’s required by a landlord. In either case, you should add it to your budget. It covers losses in case you suffer a break-in, and it also helps cover your landlord if you do damage to the property. A landlord insures the building, but renters insurance covers what’s actually inside it.

Luckily, it’s pretty affordable. Rates depend on geographical location, amount of coverage, and amount of rent paid, but, on average, you can expect to pay around $500 per year on $25,000 worth of coverage – about $12 to $15 per month.

4. Run a Credit Check

Many landlords run credit checks to see if there are any glaring issues with potential tenants, such as unpaid bills or bankruptcy. You can also expect a background check. Although landlords run these checks prior to approving you, it’s actually a good idea to request your own free credit reporton your own. That way, you can comb through to check for any potential roadblocks and contest any errors you may find.

All three credit reporting agencies (Equifax, TransUnion, and Experian) are required by the FTC to offer one free credit report each year. It’s no cost to you and won’t affect your score if you request it, but you do need around three weeks to actually receive the report.

5. Start Hunting

Don’t leave apartment hunting for the last minute. In a perfect world, it should start around three months before your “must move” date. Many current tenants have to let their landlords know of vacancies in advance – the majority of areas require renters to give at least 30 days’ notice, but plenty give more.

While the features you want in an apartment are specific to you and your lifestyle, there are a several basic things you need to look for:

• Price. Avoid looking at apartments outside of your budget. Landlords are unlikely to discount the rent, and you could end up either overspending or being disappointed when you can’t afford the apartment of your dreams. Instead, set a firm number and only look for places that fall within your budget.
• Transportation. If you’re currently without a car, check every potential apartment’s proximity to public transportation. An apartment may be well-priced and in a great neighborhood, but if you have to spend most of your time walking or calling taxis, it might not be so attractive. What’s more, you need to factor the cost of transportation into your budget for a realistic picture of how much an apartment really costs.
• Convenience. Choosing an apartment that is conveniently located can make your life a lot easier. Look for a place that’s close to work, shopping, transportation, and amenities such as laundry.
• Safety. Not only should an apartment be in a safe neighborhood, landlords should make an effort to ensure their tenants feel safe inside. Proper locks on each door, private entrances, and security should all make you feel better about renting.

6. Gather Your Down Payment

Many landlords require a down payment, which usually includes the first and last month’s rent, along with a security deposit equal to one month’s rent. Therefore, if you’re forking over $800 per month for a new place, you need $2,400 ready to go when you actually sign your lease. Your first and last month’s rent is obviously retained by the landlord, but your security deposit is generally returned if you leave the property in the condition you found it. Otherwise, it can be applied to maintenance, repairs, and cleaning.

While you won’t need to give a landlord a security deposit until you sign the lease, it’s always a good idea to have the amount saved up in your bank account. That way, you won’t lose out on a potentially perfect apartment to a better-prepared renter simply because you didn’t have the money.

7. Prepare Documentation

Landlords take a substantial financial risk if they don’t thoroughly check out each applicant, so in addition to credit and background checks, some may require extra documentation. Gather the following papers and keep them on file in advance of your search:

• Letter of Employment. A landlord needs to know you’re gainfully employed and able to make monthly payments based on your salary. This letter should be printed on company letterhead and include an affirmation that you work there, the duration of your employment to date, and your monthly or yearly salary. It should be signed by a supervisor.
• Pay Stubs. These corroborate the information in the letter of employment.
• Tax Returns. If you’re self-employed, tax returns from the last couple of years should suffice in place of pay stubs. You may need to offer extra explanation as to what you do for work and the amount you make annually.
• Reference Letters. A landlord wants to know that you’re a great tenant. If you’ve rented before, ask for reference letters from past landlords explaining that you paid your rent on time and cared for the property. If you’ve never rented before, ask for letters from previous employers or acquaintances who can confirm that you’re responsible and honest. Just make sure they’re from people not related to you – glowing recommendations from your mom won’t do the trick.

8. Talk to Tenants

While you want to make a good impression on the landlord, you also need the landlord to make a good impression on you. The best way to find out if you really want to live in a certain property is to talk to past and current tenants. In general, you want a landlord who is courteous and safe, and who takes care of maintenance issues promptly. Ask about tenant turnover, infrastructure issues, and response times to complaints.

This is also the ideal time to ask about living expenses in the area, especially if you’re moving to a new neighborhood. Current tenants can give you a rundown of what they spend on transportation,utilities, and entertainment, as well as information about the neighborhood, such as where to eat, the location of specific school districts, and the best local amenities.

9. Do a Walk-Through

Don’t sign that lease just yet. After everything checks out and you’re happy with the apartment, location, and landlord, you should do a final walk-through before signing on the dotted line. Because previous tenants may have caused damage or maintenance issues, you need to be sure that you won’t be responsible for any issues that weren’t your fault.

Come prepared and check for the following:

1. Turn on lights and faucets, and flush toilets throughout the apartment to make sure they all function properly.
2. Check for rodent or insect infestation, particularly in cupboards and storage spaces. Chew marks or droppings are a major red flag.
3. Bring along a cell phone charger and plug it into the outlets to make sure they all work.
4. Check smoke alarms and look for fire safety equipment, such as an extinguisher in the kitchen.
5. Open and close and lock and unlock doors and windows.
6. Turn on all included appliances to make sure they’re working.
7. Examine floors and walls for any type of damage. Carpet, hardwood, linoleum, drywall, and tiles should all be inspected.
8. Take pictures of any problem areas with a digital camera and show them to the landlord. Save the file so if there are any discrepancies with maintenance or problems getting your security deposit back when you move, you have evidence to prove you didn’t cause the damage.

10. Read Over and Sign the Lease

Lease agreements vary depending on time frame and contract terms.

• Periodic Leases Work Best for Shorter Durations. With a periodic lease, the landlord acknowledges that your situation could change from month to month, allowing you to pay and renew your lease monthly. However, these leases can be more expensive, and because you have to renew each month, the landlord reserves the right to raise the rent at any time. You need to give your landlord 30 days notice before vacating the apartment, so this arrangement is best only if you truly need short-term living space.
• A Fixed-Term Lease Is Most Common. Contract with your landlord to stay in the apartment for a specific period of time – three months, six months, a year, even two years. In many cases, if you choose to move out, you’re still responsible to pay for the time left on your lease, whether you live in the apartment or not. This can mean locking in a lower rate, though, which is ideal for longer-term living situations. Occasionally, landlords let renters out of their lease if a penalty is paid, so be sure to discuss contingencies before you sign.
• Subleases Are Three-Party Lease Agreements. They often occur when a renter needs to vacate an apartment, but is still in a lease with the landlord and responsible for the rent. With a sublease, the original renter finds another resident to take over lease payments until the term is up. The renter then pays the landlord for the duration of the contract. Subleases must be approved by the landlord, so if someone offers you a great deal on the down-low, it could be suspect.

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Helping Your Appraiser do the Best Job

By Lew Sichelman | LA TIMES

trackback:

http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRDrk5eY

Your home is on the market. You found buyers, a nice young couple just starting out, and they're sold on the home. But wait — there's one more person you have to sell: the appraiser.

You can no longer try to influence the professional who's responsible for placing a value on the house — a value that the lender must feel comfortable with if, for some reason, your buyers don't pay back their loan and the bank has to foreclose.

No, the days of MAI — which stands for Member of the Appraisal Institute but was euphemistically known in the trade as "Made as Instructed" — are long gone. But there is still plenty you can do to improve the chance that you will obtain the value you are looking for.

According to builders and realty agents, many a deal has been scuttled when lenders assigned appraisers who lived hundreds of miles away or were not familiar with the area. So after the appraiser calls to set up an appointment, check his or her bona fides.

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FOR THE RECORD:
Appraisal tips: A Housing Scene column in the March 16 Business section on how to get the best appraisal for your house incorrectly identified John Brenan as director of appraisal issues at the Appraisal Institute. Brenan is director of appraisal issues at the Appraisal Foundation. The column also was incorrect in stating that the Appraisal Institute was created byCongress to set appraisal standards and appraiser qualifications. That description applies to the Appraisal Foundation. The Appraisal Institute is a professional organization based in Chicago. —

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"The best way for owners to combat potential problems is to ensure the appraiser is qualified and competent," says Ken Wilson, president of the Appraisal Institute, a trade association based in Chicago. The organization was created by Congress to set appraisal standards and appraiser qualifications. "Consumers have every right to demand the use of someone with field experience in their market and knowledge to handle the assignment properly."

Ask your lender about the appraiser's professional designations. How long has he practiced? What level of experience does she have with your market and your type of property? Is he familiar with the neighborhood?

Of course, you spruced up the house when you put it on the market. You painted, perhaps, and you certainly fixed that broken window in the master bath. And you put away all that clutter in the kitchen.

Now make sure the house is just as dandy when the appraiser finally arrives. Tidy up. Get the dishes out of the sink and into the dishwasher. Clean off the counters. Pick up the dirty clothes from the bathroom floor. Change the furnace filters.

Also, send the kids off to the neighbors' or out to the movies, and lock up your animals.

None of this will add or subtract from the valuation. But human nature being what it is, it will convey the notion that the house is well-maintained, says John Brenan, director of appraisal issues at the Appraisal Institute.

Although you cannot try to directly influence the appraiser — offering a free dinner at his favorite restaurant, maybe, or a little cash under the table — you can speak with him. It's a myth that you can't.

"Conversation is not only allowed, but it is vital," Brenan says. "The appraiser needs to be able to discuss pertinent items about the house or contract."

When the appraiser arrives, present him with a list of everything in and about the house that you believe adds value — new windows, perhaps, or an addition above the garage. You are not trying to influence the deal, per se. Rather, you are "simply documenting," Brenan says. "You are not saying you need an extra $5,000 because you put on a new roof last year. You're just saying that you put on a new roof."

Your list should include a detailed description of any improvements or replacements, the dates they were made, who did the work (backed up by invoices to show they were done by a professional as opposed to a weekend do-it-yourselfer), a brochure to show the quality of the materials and building permits.

Also list any ways your house differs from others on your block: different finishes used, your better view, your larger lot size. "The list goes on and on," Brenan says. "You can't provide enough information about the house, the neighborhood, the schools. It will help give the appraiser a better understanding about the market."

Also give the appraiser a list of comparables, or "comps," which are similar properties in your neighborhood that sold recently. The appraiser may well already have the exact same houses, so at the worst, your list may be redundant. But then again, he may have only one or two.

Either way, Brenan says, "as long as you don't make any demands, a good, competent appraiser should appreciate" the help.

Some appraisers still balk at accepting such information. One recently told Jill Sackler, an agent with Charles Rutenberg Realty in Merrick, N.Y., that he was no longer allowed to do so. But Barbara-Jo Roberts Berberi, a Rutenberg agent in Crystal Beach, Fla., had the opposite experience recently.....

READ the rest of the article here...

http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRE25z1c

Distributed by Universal Uclick for United Feature Syndicate.

Copyright © 2014, Los Angeles Times

A Back-to-Basics Look on Photo Blogging for Real Estate Brokers

Photo blogging has been a great marketing tool for a while now. It’s a proven way of showing potential clients the property that you are offering. Established real estate marketers have can attest that photo blogging just doesn’t make their lives easier it also gets to the point.

Here are a few incredibly easy ‘back-to-basics’ tips for photo blogging for new and old real estate agents alike:

• Take Photos of the Good Stuff
  Since you’re selling a house, it would be a good idea to start off your photo blog by showcasing all the positive and unique aspects of the property that will attract buyers. If, for example, the property lies on a hill, take photos of the scenic view from the top of the hill. Better yet, take photos of the scenery while in the veranda or the deck. These small things may or may not mean a thing for the future property owner but it still gets people visiting your site.
• Use your Smartphone
  Put your smartphone’s dynamic features to work. Take photos with your phone and take advantage of the multiple photo editing apps to liven up your images. Then, post your images to your blog. Most blogs should have a mobile app or mobile version to easily allow you to add posts with images.
• Connect with Social Networks
  Take your blog or site traffic to the next level by syncing it with your existing social networks, such as Instagram, Twitter or Facebook. Instagram is an extremely popular photo app that attracts numerous users. Upload your photos to Instagram and share them on your blog, Facebook and Twitter for more exposure. Remember to add hashtags relative to your property photos so that people can find your images easily.

6 Ways to Get A Response Back Through Emails

Ever sent an email & never received a response back. Here are some tips to help you get your reader to hit the reply button...

1. Perfect the subject line. When it comes to information, it’s hard not to judge a book by its cover. In To Sell Is Human, Dan Pink covers a study showing that people are more likely to read emails with subject lines to create curiosity or provide utility. When people aren't busy, they’re drawn in by subject lines that intrigue them. But when they’re busy, curiosity fades in importance; the emails that get read are the ones with practical subject lines. When you want to grab the attention of someone important, scrap the entertaining subject lines and focus on utility. Here are some of the most effective subject lines that landed in my inbox from strangers:

• Curiosity: “Advice for a fellow teleological people-person,” “I do not want anything from you,” “Your book kept me up all night,” “I will fly up and see you; you interest me,” and “Dan Pink would want me to write a creative subject line here”
• Utility: “Applying your techniques to recovering addicts” and “Getting you to Atlanta”
• Both: “Can you help give away 4 million dollars a year?” [Here, the sender cleverly went on to clarify, “I know the subject sounds like something you'd get from Nigeria, but…”]

2. Tell them why you chose them. On the receiving end, I was surprised by the number of readers who wrote asking for help without explaining why I was the right person to help them. One person reached out looking for advice on how to become a millionaire; another asked for help fighting a malpractice lawsuit. Neither of these requests is easily handled by a management professor. Good emails overcome this barrier by highlighting what drew you to this person and the distinctive value that he or she can add. It’s worth devoting a sentence or two to what you know about the person’s work, and how it has influenced your life. If you are trying to email people to gain business and clients,  talk about why you chose them and why you think they need to use your company. In Real Estate, it is best to talk about location, and how it is a perfect time to buy or sell in your location. Why did you choose this person to represent you or vise versa if your a Realtor why did you chose these clients to represent. 

3. Show that you've done your homework. A sizable number of readers wrote asking for links to articles that were freely available on my public website. As author Tim Ferriss, himself a cold-email virtuoso, writes, “It’s amazing how many would-be mentees or beneficiaries ask busier people for answers Google could provide in 20 seconds.” The psychologist Bernard Weiner has found that people are more motivated to help those who try to help themselves. When you reach out to someone busy, Ferriss advises, “Explicitly state what you've done to get answers or help yourself.”  In our business we truly appreciate this, because it shows that they are serious clients and we can help them to understand the business & market better. Sometimes clients will bring in other comps that we did not pull, by doing so we can explain to them why we did not use the comp and why that one had a flaw. 

4. Highlight uncommon commonalities. I felt a stronger connection to strangers who emphasized something unusual that we had in common. As the psychologist Robert Cialdini sums up the evidence from Influence, “Similarity literally draws people together.” In Give and Take, I elaborate on this principle to point out that similarities matter most when they’re rare. We bond when we share uncommon commonalities, which allow us to feel that we fit in and stand out at the same time. Think of the last time you traveled abroad and met someone from your hometown. If you met at home, the connection wouldn't stand out as unique, but on foreign soil, you’re the only two people from there, so you feel a sense of closeness.  We use commonalities like location, things such as "I once owned a property in your area" or "I just sold your neighbors place".

5. Make your request specific, and keep it short and sweet. Avoid mini-novels, keep it short and to the point. The longer the message, the longer it took me to read and respond, and the more overloaded my inbox, the less patient I was in reading them. As the psychologist Robert Sutton recaps the evidence in Good Boss, Bad Boss, people are more helpful when they’re given clear directions on how to contribute. Ferriss suggests that the best approach is to “send a two- to three-paragraph e-mail which explains that you are familiar with their work, and ask one simple-to-answer but thought-provoking question in that e-mail related to their work or life philosophies. The goal is to start a dialogue so they take the time to answer future e-mails—not to ask for help. That can only come after at least three or four genuine e-mail exchanges.”

6. Express gratitude. Don't make demands, instead express your appreciation. One person wrote, “We should definitely meet,” and another implored, “Please answer this question.” In my research, I've found that people provide more extensive and useful help when it’s an enjoyable choice than when it’s driven by perceived pressure or obligation.

I was excited to help when I felt I could make a difference, not when someone was attempting to coerce me or create a sense of obligation. One of the least motivating strings of emails came from a reader who described a complicated family situation and demanded that I respond “promptly.” Within a week, I sent a three-paragraph reply. I explained that it would be difficult to help without knowing the people involved, but offered a suggestion, attached an article, and recommended a book. The reply from the person said, “I am in receipt of your email” without a single expression of gratitude, and extinguished my desire to be helpful.

Gratitude is more powerful than we realize. In one experiment, Francesca Gino and I asked people to spend some time helping a student improve a job application cover letter. After they sent their feedback, the student replied with a message, “I just wanted to let you know that I received your feedback on my cover letter,” and asked for help with another one in the next three days. Only 32% of the people helped. When the student added just eight words—“Thank you so much! I am really grateful”—the rate of helping doubled to 66%. In another experiment, after people helped one student, a different student asked them for help. Being thanked by the first student boosted helping rates from 25% to 55%. The punch line: a little thanks goes a long way, not only for encouraging busy people to help you, but also for motivating them to help others like you.

*For more on achieving influence and motivating people help, see Adam's new book Give and Take: A Revolutionary Approach to Success, a New York Times and Wall Street Journalbestseller. Follow Adam on Twitter @AdamMGrant

Pesky Plumbing Issues And How To Stop Them

If you own a home, you know that plumbing leaks can occur at any time.  Sometimes they develop slowly over time and sometimes they are a sudden occurrence.   The cost involved in repairing a major plumbing leak can get expensive.  Not to mention if you develop mold and the clean up involved with that.  But with some good preventive measures you can avoid most disasters.
Here are some preventive measures you can take to avoid as many plumbing disasters as possible.

• Locate your main water shut off valve.  Your entire family should know where it is and how to use it.  If you ever have a leak or any other type of plumbing emergency, you can turn off the water to your entire house from the main water valve.  This will stop the water and help prevent any further damage until you can get the leak repaired

• Have shut off valves installed on your appliances and fixtures.  You can do this yourself or you can have a professional do it for you. This will allow you to turn off the water to a specific area of your home while allowing the water to flow to the other parts of your house

• Have a flow sensor installed.  A flow sensor will automatically shut off the water to your house if it detects a leak

• During the winter months, remove your hoses from the exterior faucets of your home.  This will prevent them from freezing and cracking the pipes.  It is a good idea to install a hose bib over the exterior faucets of your home during the winter months as well

• Add insulation to the pipes in cold parts of your house like the garage, basement, exterior laundry room or any crawl spaces.  Pipe insulation tubes are fairly cheap and you can find them at your local home improvement store

• Don't hang anything on your exposed pipes such as laundry or home decor.  This will loosen the pipes joints and could cause them to burst or leak

• Don't over stuff the items you put underneath your kitchen and vanity cabinets.  This could cause the pipes to loosen and leak and you may not notice this right away which will cause even further damage

• If you notice a leak, fix it immediately.  If you don't, not only will it cost you more money on your water bill,  but it will also cause your pipes to corrode and could create a dangerous mold issue as well

• You should always turn off your sprinkler system when the temperatures are going to be below freezing for more than three hours at a time.  Some  systems come with freeze sensors already installed.  You should check your system so you know whether or not you have that feature so you can act accordingly
A plumbing leak that is not fixed can cause extensive damage.  So never procrastinate when it comes to your plumbing.

Enjoy the Weekend!

The Inman Team

8 Tips on Gaining Listings in a Low Inventory Market

1. Go Deep. Try to uncover potential listings before they exist. Scour rentals, and expired or withdrawn listings.  Try using the “make me move” feature on Zillow.  Circumstances may have changed or the market may have finally caught up with a previously overpriced home. Try not to devote too much time to chasing pre-foreclosures, as those homeowners are most likely already bombarded with solicitations.

2. Be Sociable.  One REALTOR® we spoke with throws two big client events a year, a family-friendly summer carnival at her own home, and a holiday party for grownups. Offering each guest a goodie bag on their way out is a great way to distribute your business card along with notepads or other collateral materials. Be sure to include a note in each bag reminding them to send referrals your way. The same REALTOR® also invites clients to lunch on their birthday and asks them to invite their coworkers. Conversation will inevitably lead to how you originally met and what a great experience the home buying/selling process was. Be sure to bring plenty of business cards for your new referrals and collect their email addresses for your database.

3. Go Back to Your Database. Take a fresh look at your contacts, especially those who have been underwater. If they haven't entered foreclosure or gone through a short sale, they might have gained enough equity to consider selling. Offer to go over the numbers with them, they might not be aware of the increase in their home's value.

4. Showcase Your Listings. Create must-attend open house “events” by sending out deluxe invitations to neighbors. Treat it as a real invitation, using a high quality paper and beautiful photographs, or email the link to a virtual home tour.  For high end properties, try a luncheon by the pool or a piano performance. For fixers, set up a full service open house by partnering with related industries who also rely on referrals. Arrange for a loan officer to be on hand to discuss pre-qualifying and financing options, and invite a contractor to help potential buyers envision their dream home. Since open houses are typically held afternoons, try a wine and cheese event at 5:00 on a weekday and invite people to stop by on their way home from work. The extra care you use in showcasing your listings will show potential clients what they can expect from you.

5. Be Seen.  Establish yourself as an expert by getting out there and talking about what you know. Host seminars, teach classes and offer to speak to community groups. Host a monthly coffee klatch with a real estate based theme. Try topics like: “Why this is a good time to sell your home,” “What do you need to do before you sell?” or “The selling process: how to avoid common mistakes.”

6. Stress the Advantages of Making a Move Now. In your outreach work, try being part educator and part therapist, emphasizing why now is a good time to take action. Let sellers know about the high prices their property can fetch and talk to buyers about historically low interest rates. After the recent shaky market, clients might appreciate some extra hand holding to let them feel that acting now is smart and financially sound.

7. A Fresh Twist. Instead of handing out a note pad or refrigerator magnet, try something locally relevant like seed packets for a plant that thrives in your area. Come up with creative ways to get your name out there, like hosting an annual block party, or sponsoring a neighborhood softball team -- your company name will be seen on players’ uniforms and a ballpark banner for each game. Try prospecting in places where the majority of visitors are most likely homeowners already, like a local dog park. Leave inexpensive dog treats on car windows accompanied by a postcard listing “5 Reasons Why Fido Needs a New Home.”

8. Create a Virtual Community? Write a neighborhood newsletter, blog or Facebook page focusing on local news, establishing yourself as the go-to person for your neighborhood. Get more readers via open house sign-ups, and be sure to ask for “likes” on Facebook. Take advantage of the viral (and free!) nature of social media and share your content over a variety of networks, asking friends and readers to share as well. Compelling content like hyper-local news, and fun info about a neighborhood will draw more loyal readers than just a business page about you or general real estate news.

For more innovative marketing ideas, try using C.A.R.’s One Cool Thing infographics in your collateral materials. They’re stylish, relevant, and FREE for C.A.R. members to copy, use, and share.   

Things To Consider When Designing Your New Construction Home

t is very exciting to have a new home built.  But in all of that excitement there are things you should consider before finalizing your plans.  You will need to look to the future needs of your home and family then plan accordingly; rather than just thinking about your current lifestyle and how you want your home to perform for you now - in the present.

Here are a few things that you may not have thought about when starting the beginning phases of building your new home.

1.  When deciding whether to go with the large open spaces, less walls etc.  Think about your life now and in the future.  Currently you may have a toddler and need those wide open spaces to keep an eye on them.  However, remember that they don't stay toddlers for long.  Before you know it that toddler will be a teenager and you will then need as many separate rooms / spaces as you can get.  Because once you have some teenagers on your hands, you will quickly learn that everyone is going to want their own space.

2.  Don't downsize a room or a closet to make a space for a newborn or toddler.  Once again, they do not stay newborns for long and you will be left with little or no space.  Downsizing a room or eliminating a closet just doesn't make sense in the whole scheme of things.  Remember, your newborn is only going to be a newborn for a little while.  But you will more than likely live in your home much longer than that.

3.  Don't give up kitchen cabinet space for a pass through bar just so you can keep an eye on your kids.  Your small children will grow quicker than you can blink an eye but once your home is built your kitchen will have to stay that way forever.  And before long your children will be grown and you will no longer need that pass through bar but you sure could use that extra cabinet space.

4.  Consider a downstairs den that could be converted into a bedroom in the future as your family grows.

5.  Think about having your attic roughed-in with plumbing and electric for a future bedroom or living space.

6.  Perhaps adding a bathroom and kitchenette to your basement for possible future living quarters.  This will also add value to your home when it comes time to sell.

7.  Think ahead to when your toddler turns 16 and gets a car.  You will need more garage space.  So consider having a three car garage included with your home building plans.

8.  It is always a good idea to have grab bars installed in all of your bathrooms.  These are not just for seniors.  These are great for kids and for adults who have over extended themselves and need a little assistance getting in and out of the bathtub or shower.

It is hard to know exactly what you are going to need in the future.  But try a little forward thinking and build your house according to what you think you will need.

If you have built a house that is no longer suitable for you and your family.  Call your realtor and ask them to help you find a home that fits your new lifestyle.  Your realtor would be more than happy to assist you in any way they can.

Add Value to your Home with the Latest Home Trends

Remodeling Projects for Big Value:

Following are some easy to do remodeling projects that will add big value to your home.

• Accentuate the Architecture:

The easiest way to draw eyes to existing furnishings is to use simple moldings or trim to draw attention, for example, a stunning view from the window or a high ceiling. Furthermore, you can also use beaded boards to add timeless and breathtaking appeal. On the other hand, you can get an elegant traditional look by dressing a ceiling light fixture with a beautiful medallion.

• Install a Bay window:

If you replace a normal window with a bay or bow window, you will let more natural light in your house rather than regular one, it will make feel room look larger and will create a stunning focal point. Furthermore, to draw attention to the new window and add a bit of functionality to the surroundings, consider using a built in window chair that will be an architectural attraction for buyers and a cosy reading spot for you.

• Refinish Wood Floors:

Refinishing worn out wood floors is a convenient method to rejuvenate your home and increase its value. You just need to be prepared for facing few days of dust. Similarly it is a better option to completely replace the floor if it is extremely worn out or stained. In this regard, a great idea is to splurge on wide plank hardwood floors in foyers and living room and then repeating it in the bedrooms.

• Revitalize Staircases and Foyers:

Foyers are the first part of your house that a potential buyer will come across and it is your only chance to make a strong first impression. You need to make it welcome the guest in terrific style. If complete replacement is impossible, consider using sprucing items such as splurging the entryway or improving staircases. Repaint risers and sand and re-stain treads. Furthermore, hanging elegant decorative items on the stair and foyers walls such as photo on canvas will also spice up the area.

• Make Good Use of Wasted Place:

You can transform a plan wall into a big storage area and can also display the showcase by adding open shelves by cutting a dry wall to create a recessed niche. Furthermore, you can also add a display shelf above the kitchen window and cup hooks below upper cabinets. Remember that storage is one of the most important element potential buyers consider before making final decision.

• Add a Fireplace:

The ambiance created by a fireplace cannot be rivaled by anything else. It creates a sensational focal point for the room in addition with adding warmth and beauty. You need to dress up the firewall with tasteful wood mental and a delightful surround, for instance, by hanging a beautiful artwork such as split canvas prints above the mantel.

Builder Confidence Improves in May

Builder confidence in the market for newly built, single-family homes improved three points to a 44 reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for May, released recently. This gain, from a downward revised 41 in April, reflected improvement in all three index components – current sales conditions, sales expectations and traffic of prospective buyers.

“Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies,” notes National Association of Home Builders (NAHB) Chairman Rick Judson, a home builder from Charlotte, N.C. “This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor.”

“While industry supply chains will take time to re-establish themselves following recession-related cutbacks, builders’ views of current sales conditions have improved and expectations for the future remain quite strong as consumers head back to the market in force,” says NAHB Chief Economist David Crowe.

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted gains in May. The index gauging current sales conditions increased four points to 48, while the index gauging expectations for future sales edged up a single point to 53 – its highest level since February of 2007. The index gauging traffic of prospective buyers gained three points to 33.

Looking at the three-month moving averages for regional HMI scores, no movement was recorded in the Northeast, Midwest or South, which held unchanged at 37, 45 and 42, respectively. Only the West recorded a decline, of six points to 49 in May.

For more information, visit www.nahb.org 

Realtor.com's April Report Shows Boost in Market

Realtor.com®, a leader in online real estate operated by Move, Inc., released its April data showing that the U.S. housing market is on its way to a broad-based recovery, an accelerated trend since March. The home-buying season shifted into high gear last month as inventory and home list prices on realtor.com® increased by 4.12 percent and 2.63 percent, month over month, respectively. As of April, homes are on the market 
nationwide approximately 81 days—a decrease of nearly 11 percent since April 2012—highlighting that while new homes are entering the market they are not available for long.

“Due to increased demand for homes and more confidence in the job market—we are beginning to see more and more buyers entering the housing market,” says Steve Berkowitz, chief executive officer of Move. “Home buying season is off to a strong start, as buyers capitalize on moderate housing prices and snatch up homes quickly. In some markets, we are seeing homes staying on the market for only a few weeks.”

Despite the increase in inventory month over month, nationwide inventory declined year over year in all but 11 of the 146 markets realtor.com® monitors. Approximately 36 markets registered a decrease of listings by 20 percent or more, still highlighting near records lows of available homes.

Approximately 37 markets experienced a decline in list price since last year, a figure that has been improving throughout the home buying season. The number of markets throughout the nation experiencing a steady or slight decline in median list prices is decreasing throughout the home buying season, another positive signal for the overall housing market recovery. In April, median list prices increased in 109 markets.

National Data

- In April, the total number of single-family homes, condos, townhomes and co-ops for sale in the U.S. (1,750,839) increased by 4.12 percent month-over-month. On an annual basis, however, inventory decreased by 13.54 percent.

- The national median list price for single-family homes, condos, townhomes and co-ops ($194,900) increased by 2.63 percent vs. March, and 3.12 percent since April last year.

- The median age of inventory of for sale listings (81) fell by nearly 11 percent in comparison to April last year.

Local Data

- Only seven markets throughout the nation experienced a one percent or greater year on year increase in housing inventory since April 2012. The Shreveport-Bossier City, LA market lead the pack with an increase of inventory of 19.16 percent since April last year.

- California continues to dominate the top 10 list of markets with the largest increase in median list price throughout the nation—only two regions in the list fall outside of California. These markets were hit the strongest by the housing crisis and are showing a great rebound as the housing recovery picks up steam. Oakland experienced the largest year over year increase in list price at 46.94 percent. The Santa Barbara-Santa Maria-Lompoc, Calif. market followed at 44.81 percent. Sacramento, Calif.; San Jose, CA; Los Angeles-Long Beach, Calif.; Orange County, Calif.; Detroit, Mich.; Ventura, Calif.; Fresno, Calif.; and Phoenix-Mesa, Ariz. rounded out the top markets with the largest increases in list prices in the nation.

Housing is in Bloom

The nation's housing sector is buzzing like bees in springtime. And indeed, housing has historically boosted the U.S. Gross Domestic Product (GDP) and job creation, which are key stimulators and indicators of economic health. 

When GDP is referenced in news media, it means the total goods and services produced by labor and property in the U.S. This figure is measured quarterly, and recent figures show that GDP increased impressively at 3.1 percent in the 1st quarter of 2013, up from 0.4 percent in the last quarter of 2012. 

Sales of previously-owned houses increased three straight months in March, rising 0.4 percent to a 5 million annualized rate, its highest level since late 2009, then took a small dip in late April by 0.6 percent to 4.92 million units. During this time, new home sales maintained an upward climb by 1.5 percent within expectations to 416,000. Analysts say housing could provide tailwinds strong enough to realize the improvement to the labor market for which the folks at the Fed are hoping. The Fed (which sets the U.S. monetary policy by monitoring national employment, prices and interest rates) recently noted that inflation also remains in check. 

Homebuilders across the nation have contributed to the increase in Housing Starts, up a whopping 47 percent over the same period last year. At their highest since June 2008, Housing Starts spiked by 7 percent this March to 1.036 million units on an annualized basis, well above the 930,000 expected, though they did decline in April. Gains in home prices and construction will put more Americans to work this year, and that's good news overall for the health of the U.S. economy.

5 Housing Trends for Spring 2013

The game is changing in the real estate market, and things are looking good for everyone. Low mortgage rates and home prices gaining momentum, and the amount of buyers is supposed to increase this Spring.

This Spring expect to see these housing trends:

1. Fewer options, Higher prices & Bidding Wars
Expect some competition this coming Spring, demand from home buyers is growing faster than the supply of homes for sale, according to the National Association of Realtors. Expect to see multiple offers on the table which means bidding wars. In February there were 1.94 million homes for sale nationwide. That represents a supply of 4.7 months at that months pace. A balanced market requires about 6 months of supply. During the same period last year there was a supply of 6.4 months.

2. Loan Modifications Made Easier- for most
Homeowners behind on their mortgage payments may get the opportunity to reduce their monthly payments. The Federal Housing Finance Agency will require mortgage servicers to offer a streamlined modification program to borrowers with loans owned or guaranteed by Fannie Mae and Freddie Mac, starting July. The offers will be sent to home owners who are at least 90 days behind on their loans but no more than two years behind. The modification reduces the loans interest rate and extends the loan term to 40 years. Minimal paperwork is expected, borrowers wont be required to submit nay financial documentation to the lender to get approved. The loan modification becomes permanent after 3 three payments are made during the three-month trial period.

3. FHA Loans lose appeal again
Borrowers seeking low-payment mortgages will be charged for mortgage insurance for the life of their loans if they don't get their Federal Housing Administration mortgages by June 2. The FHA currently requires borrowers to pay for mortgage insurance on FHA loans until the balance reaches 78% of the original value of the home.

4. Equity Loans & Cash-out refis 
1.7 million homeowners regained equity in their homes last year, and an additional 1.8 million are close to it. All they need is home values to go up by another 5%. As home prices rise millions of homeowners might consider turning to their homes as a potential source for a loan. Cash-out refinances and home equity loans, which were popular during the housing boom, are slowly returning, along with the temptation to tap into equity.

5. Mortgage Rates Remaining Low 
Mortgage rates are expected to creep up this Spring but should remain low. The mortgage Bankers Association estimates the 30-year fixed rate will reach 3.9% by the end of the first quarter of this year.

Do you need Homeowners Insurance?

Owning a private home in a residential community subjects you to pay the Homeowners Insurance (HOI). For some homeowners, they see it as an added expense on top of the recurring mortgage they have to pay in the next 10 to 20 years. It can be devastating as some communities require all homeowners to pay the HOI. But despite the extra expense, this type of insurance is proven to be beneficial.  Let me explain.

What is Homeowners Insurance?

Homeowners Insurance is a type of insurance that is used to protect the homeowner’s property from various damages. There are also cases that homeowners’ insurance policies offer liability coverage against damages or injuries on the property. Generally, there are different forms of standardized homeowners insurance that can be chosen which will also depend on the needs of the homeowner. The following are types of HOI standardized by the Insurance Service Office

HO1 – Basic Form Homeowner Policy

HO2 – Broad Form Homeowner Policy

HO3 – Special Form Homeowner Policy

HO4 – Renter’s Insurance

HO5 – Premier Homeowner Policy

HO6 – Condominium Policy

HO8 – Older Houses

Read the complete description of each policy here.

Who needs it?

Whether you own or rent a home, condo, or apartment, you will need to have homeowners insurance. Indeed, you are not legally required to have homeowners insurance; however, it is one of the requirements when applying for a mortgage. It satisfies lenders. Almost all lenders are requiring borrowers to secure satisfactory insurance before they consider borrowers from qualifying for a loan.

In an insurance, there are policies that a home owner can choose from aside from the basic ones. The basic policies usually cover damages or accidents caused by fire, hurricane, vandalism, or lighting. Some other policies might cover damages due to theft too. To determine the policies that are applicable to you, an insurance agent or specialist can do the inspection beforehand.

The cost of the insurance will usually depend on:

1. Building costs
2. Crime rate in the neighbourhood
3. Heating, electrical system,  and plumbing condition
4. Materials and style layouts used for the home construction
5. The probability rate of accidents or damages from hurricanes, flood,  and hail storms

One common issue of homeowners is the disaster brought about by flooding. Standard policies for most insurance do not cover damages caused by flood. You have the option to add it from the standard policy. You can get it directly from your insurance agent.

In times of disaster or accidents, an uninsured homeowner may end up losing his or her home. You cannot just risk your largest asset because of the high premium costs of insurances. One common and easiest way to lower your premium costs is by increasing the amount of money you have to spend to cover the damage/loss before the insurance company starts the responsibility to pay the claim which is also known as deductible.

Insurance is not an option for homeowners, rather a necessity. At first, an insurance maybe an intangible product but it is actually one of the best things that you can have.

Josh writes for Scott Maizlish’s Park City Realtor Blog. Visit their website for Summit Park Real Estate news and updates. Or check them out at Scott Maizlish Park City Realtor’sGoogle + Page.

California Making a Huge Recovery

In certain housing markets, it seems homes are selling like hot cakes. Buyers in California are feeling the heat more than anyone, with four of the top five fastest-moving housing markets in The Golden State. 

Orange County, San Diego, Sacramento and Los Angeles topped the list, with Las Vegas coming in at no. 5, according to data from ZipRealty.

In Orange County, the median days homes spent on the market dropped from 52 to 15, a 71% decrease year-over-year in March. Additionally, 29% of homes in Orange County sold in seven days or less. Conversely, the median home price shot up 27% year-over-year o $495,000. 

San Diego saw a similar change year-over-year, with the median days on market dropping 59% from 49 days to 20 in March. One-quarter of San Diego houses sold in seven days or less, and the median home price jumped 22% to $390,000.

Sacramento’s homes stayed on the market 57% longer, dropping from 28 to 12 on a year-over-year basis. Nearly one-third of Sacramento homes sell in seven days or less, while the median home prices rose 31% to $390,000. 

The final California city to make the top-five list is Los Angeles, whose median days on the market dropped 56% from 52 to 15 in 2013. L.A.’s median home prices increased 26% to $307,564 and 29% of its homes sold in seven days or less. 

The dramatic drop in time these homes are staying on the market coupled with the sharp increase in median home prices point toward the supply-and-demand problem that many home buyers are facing. 

As one of the most "bubbly" states prior to the crisis, California was one of the hardest hit states during the recession. Because it had further to go, The Golden State is seemingly making the quickest and most dramatic progress of any state in the recovery. 

Real Estate Terms You Should Know

Here are some common terms you will hear when buying or selling your home

• Adjustment Date - the pre-determined date the interest rate changes if you have an adjustable rate mortgage
• Amortization - a portion of your monthly loan is applied to your accruing interest every month and the remainder is applied to your principal.  Over time, the interest decreases and the amount applied to your principal increases and your loan is paid off within a specified amount of time.  This is called amortization
• Appraisal - is a justification of the price paid for your home based on the analysis of the comparable sales of similar homes in your area
• Assessment - the value that is placed on your home for taxation purposes
• Assignment - this is when the ownership of your mortgage is transferred from one mortgage company to another
• Chain Of Title - this is the analysis of the different transfers of tile for a property over the years
• Clear Title - this is a title that does not have any liens or legal issues as to who owns the property
• Contingency - this is a condition that must be met before a contract can become legally binding
• Conventional Mortgage - these are home loans that are not government loans such as VA and FHA
• Deed - this is the legal document that gives you the title to your house
• Earnest Money Deposit - the deposit made by a potential buyer to show that they are serious about buying a particular house
• Escrow - money or documents that are deposited with a third party to hold and will be delivered upon the fulfillment of a specific contract condition - such as a closing
• FHA Mortgage - a mortgage that is insured by the Federal Housing Administration, also known as a government loan

"For Sale By Owner" Is Not The Best Way To Sell Your Home

For Sale By Owner or FSBO.  It sounds like a good idea.  Besides, you can sell your home - right?  You know your home better than anyone.  While that may be true, there are very few people that can actually sell their own home properly.
Here are a few reasons why a "for sale by owner" is not the best way to sell your home.

1.  As an FSBO you cannot list your home in the MLS. The Multiple Listing Service is a membership only site that only licensed real estate agents have access to.

2.  As an FSBO you will be locked out of most of the major home listing websites such as Realtor.com etc.

3.  You will be limited to placing a sign in your yard and placing your ad in the classifieds.  This will drastically limit your homes exposure to potential buyers.  You will be depending on a small classified ad or for an interested buyer to drive by.  The chances are very slim.

4.  Many real estate agents will not show a "for sale by owner" home because they generally do not get paid a commission for showing a buyer your home.  In other words, most realtors will not work for free.

5.  Most FSBO sellers overprice their home.  You probably have an emotional attachment to your home and feel that it is worth more than it really is.  Additionally, you will not have the experience of a licensed real estate agent who knows how to dig up the true market value numbers of homes that have recently been sold in your area.

6.  A buyer generally feels very uncomfortable talking with the owner of the home about the homes pros and cons of their home.  And if they do, they may not always believe how  accurately the information is being presented.  In addition, a buyer usually does not like negotiating the sale of the home with the owner.  Buyers prefer leaving the negotiations up to their realtor.  The realtor is a good buffer between the buyer and the seller and is the best way to come to an agreeable offer.

7.  FSBO sellers are more likely to get into legal trouble.  Most people are not well versed enough in real estate to know what does and does not have to be disclosed.  If a FSBO misses just one form or a legally mandated disclosure, they could face an expensive buyer lawsuit after the transaction closes.

Just how much risk are you willing to take?  It is just not worth saving a few pennies now only to find that you have to spend thousands more later to get yourself out of an improperly handled real estate transaction.

Ultimately it is up to you, but consider talking to a Realtor to discuss how much it will cost and let them explain their services and how they plan to market your home.