Time Saving Tips for Moving Day

Dreading Moving Day? Most people do, but we’ve found that planning your move well in advance can make things go much smoother. It’s also important to know what to expect on moving day itself. Feel free to print this list of helpful hints to guide you thru moving day.

“Last Load” box – Save back a large box for daily-used items that will need to come out first at the new home. Use this box for stripping your bedding the morning of your move. Also use this box for the alarm clocks, daily medications, 2 or 3 towels and wash cloths, paper towels and window cleaner.
Prepare the necessary rooms – If possible, clean and set-up the basics in the kitchen and bath areas before the big day. Place necessities in an obvious location – plastic cutlery, cups and plates and paper towels on the kitchen counter. Your bath should have soap, paper towels, toilet paper and a first aid kit available.
 Clear a path - Keep packed boxes in a room close to the door but out of the way. Keep an eye out for any obstacles that could block carried furniture such as railings or fence gates and temporarily remove them if necessary. Place non-slip rugs in any high traffic areas that could be potentially dangerous.
Call the sitter – It is best to leave small children and pets with a friend or sitter during the confusion and bustle of the move itself. At a minimum, your family pet should be confined, as even the nicest of animals can find a way to be dangerous underfoot.
Keep everyone refreshed – Whether you’re using professional movers or family and friends, make sure that everyone is comfortable and hydrated. If it is a hot day, provide lots of cold beverages and snacks. On cold days, offer hot chocolate or coffee. Ordering pizza for lunch is a nice way to show everyone you appreciate all the hard work.
Keep neighbors (old and new) happy – Keep the moving truck from blocking other driveways or mail box delivery, and make sure no one walks through your neighbor’s lawn or flowerbeds. Move during the day to avoid disturbing the neighborhood.
Last walk-through – Be sure to leave your old house as clean as you’d hope to find your new one. Check one last time for any forgotten items, and then lock all doors and windows.
Coordinate your move – If using professional movers, ask any remaining questions, finalize all contact information, and sign both the bill of loading and inventory sheet after careful review. Go over the destination address and projected route, as well as expected travel time.

If you have questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Five Great Things about Homeownership

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!  

by Carla Hill (http://realtytimes.com/rtpages/20111102_great.htm)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Homeownership Rate Rises After Two Years of Decline

After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time.

In fact, according to Bloomberg, the third quarter rise is the first in two years.

However, the 0.4 percent increase, which brought the homeownership rate to 66.3 percent for the third quarter, was not enough to post an annual increase.

The current homeownership rate remains 0.6 percent below the rate recorded in the third quarter of 2010.

Furthermore, according to the Census report, when the current rate is seasonally adjusted – which brings it to 66.1 percent – it is “not statistically different from the rate last quarter” – an even 66 percent.

Homeowner vacancy rates fell 0.1 percent in the third quarter arriving at 2.4 percent.

At the same time, rental vacancies rose 0.6 percent arriving at 9.8 percent.

Despite this shift, Capital Economics says in response to the Census findings, “The modest increase in the rental vacancy rate in the third quarter does little to alter our view that rental yields will soon rise above 5.5%, comfortably beating the yields available on Treasuries and equities.”

“Meanwhile, the homeownership rate remains at a level that suggests America’s love-affair with housing is still on the rocks,” Capital Economics adds.

About 85.8 percent of housing units were occupied in the third quarter.

The region with the highest homeownership rate was the Midwest with a rate of 70.3 percent, while the lowest homeownership rate was seen in the West at 60.7 percent.

The Northeast and South feel in between at 63.7 percent and 68.4 percent respectively.

At 76.1 percent, West Virginia had the highest homeownership rate. The state was followed closely by

Mississippi with a 70 percent homeownership rate.

The lowest homeownership rate was seen in the District of Columbia, where the rate for the quarter was 44.3 percent. New York followed with 54.4 percent.

Nevada and California – states hard-hit by the housing crisis – were also in the bottom five with homeownership rates of 55.3 percent and 55.9 percent respectively.

By: Krista Franks (http://www.dsnews.com/articles/homeownership-rate-rises-after-two-years-of-decline-2011-11-02?utm_source=twitterfeed&utm_medium=twitter)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

Mortgage rates stay in the basement

Survey shows slight uptick in demand for purchase loans

By Inman News, Thursday, November 3, 2011.

Inman News™

Mortgage rates sagged this week as ongoing concerns about the European debt crisis had investors fleeing to the relative safety of mortgage-backed securities that fund most U.S. home loans.

Rates on 30-year fixed-rate mortgages averaged 4 percent with an average 0.7 point for the week ending Nov. 3, down from 4.1 percent last week, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.

At this time a year ago, rates on 30-year fixed-rate mortgages averaged 4.24 percent before climbing to a 2011 high of 5.05 percent in February. Rates on the "plain vanilla" fixed-rate loan hit an all-time low in records dating to 1971 of 3.94 percent during the week ending Oct. 6.

Rates on 15-year fixed-rate mortgages averaged 3.31 percent with an average 0.7 point, down from 3.38 percent last week. The 15-year fixed-rate loan averaged 3.63 percent at this time last year before climbing to a 2011 high of 4.29 percent in February.

The the 15-year loan, a popular refinancing option, hit an all-time low, in records dating to 1991, of 3.26 percent during the week ending Oct. 6.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.96 percent with an average 0.6 point, down from 3.08 percent last week.

The five-year ARM averaged 3.39 percent a year ago before hitting a 2011 high of 3.92 percent in February. Rates on five-year ARMs tied an all-time low, in records dating to 2005, of 2.96 percent -- last seen during the week ending Oct. 6.

For one-year Treasury-indexed ARM loans, rates averaged 2.88 percent with an average 0.6 point, down from an average 2.9 percent last week. At this time last year, the one-year ARM averaged 3.26 percent before climbing to a 2011 high of 3.4 percent in February.

Rates on one-year ARM loans hit a low, in records dating to 1984, of 2.81 percent during the week ending Sept. 15.

Looking back a week, a separate survey by the Mortgage Bankers Association showed a modest increase in demand for purchase mortgages.

The MBA's Weekly Mortgage Applications Survey showed requests for purchase loans were up a seasonally adjusted 1.8 percent from the previous week, ending Oct. 28. Demand for purchase loans was down 2.1 percent from a year ago, and requests to refinance accounted for 77.1 percent of all mortgage applications.

In an Oct. 17 forecast, economists at Fannie Mae said they expect rates on 30-year fixed-rate mortgage loans to average 4 percent next year and 4.2 percent in 2013.

-Inman News  (http://www.linkedin.com/news?actionBar=&articleID=887225542&ids=0PcjkUc3oPejwIdP0PcjcOdPwUb38QdjkOczsUe2MMdzwRczwQe3wIdPoTe38RcPwU&aag=true&freq=weekly&trk=eml-tod-b-ttle-44&ut=0EjU3KyrISTQY1)

If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.

3 Tips I do to help YOU tackle your down payment

"The many dimensions of buyer readiness all boil down to two major factors: motivation and cash on hand. Our recently released American Dream Home Survey showed that there are plenty of renters that hope to one-day own a home. Our stats showed just fewer than 60 percent of those surveyed intend on purchasing a home. That means motivation isn’t the primary issue.

So what’s intimidating your future clients? The down payment.

When it came down to home buying obstacles, the down payment was the single largest hurdle ownership hopefuls said they are facing. In an era of a fluctuating stock market, high-consumer debt levels, and rising costs to rent, it’s hard for tomorrow’s homeowners to put pennies aside to reach their dream.

So how do you help the consumer with too little cash on hand?

1) Know your financing

Every buyer’s circumstances, credit history, and resources are different. It pays for an agent to know the government programs and local lenders who provide down-payment assistance. While special financing programs won’t help in every scenario, checking into your local and federal options will help you inform your potential clients of how much work stands between them and the homeownership dream.

2) Be straightforward

Home ownership is a rosy thought for many. However, as an agent one of your greatest responsibilities is to be an advisor. That means you have to be willing to tell your buyers the truth. And if home ownership is not within reach right now, be willing to say so and use the opportunity to advise and help your clients over the savings and down payment hurdles.

3) Encourage some good ole fashioned savings

When it comes to ownership, nothing beats preparation. When assistance programs fail, encourage your buyers to do things the old fashioned way. That means first figuring out what they can actually afford (check out this post for tips on figuring out affordability) and two encouraging your clients to come up with a savings plan.

The down payment hurdle is a serious obstacle for buyers and agents, but for the agents who take the time to counsel their buyers and help them over it, there’s a commission on the other side."

-Jovan Hackley, http://pro.truliablog.com/

If you have any questions about how I can help you find save to select your first home or moving up to your next home, contact me, Brook Willardsen.

It's Time to Buy That House

"U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971.

As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index's historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today's buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments.

For example, the median home in the greater Phoenix market, including houses, condos and co-ops, costs $121,700, according to Zillow.com. With a 20% down payment and a 4.12% mortgage rate, a buyer's monthly payment would be about $470. Rent for a comparable house would be more than $1,100 a month, according to data provided by Zillow.com.

Of course, all of this assumes mortgages are available—no given now that lending standards have tightened. But long-term data on down payments and credit scores suggest conditions are more normal than many buyers think, according to Stan Humphries, chief economist at Zillow. "If you have good credit, a job and a down payment, you can get a mortgage," Mr. Humphries says. "There's more paperwork and scrutiny than five years ago, but things are pretty much like they were in the '80s and '90s."

Not all housing markets are bargains. Mr. Humphries says Zillow has developed a new price/rent ratio that uses estimates for each individual property rather than city medians, to better reflect the choices facing typical buyers. A fresh look at the numbers suggests Detroit and Miami are plenty cheap for buyers, with price/rent ratios of 5.6 and 7.7, respectively. New York and San Francisco are more expensive, with ratios of 17.6 and 17.2, respectively. The median ratio for 169 markets is 10.7.

For investors seeking income, one back-of-the-envelope way of seeing how these numbers stack up against yields for other assets is to divide 1 by the price/rent ratio, resulting in a rent "yield." The median market's rent yield is 9.3% and Detroit's is 17.9%.

Investors would then subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. But suppose total costs were 4% of the purchase price. That would still leave a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor's 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive.

A few caveats are in order. First, not all transactions are average ones. Even in low-priced markets, buyers should shop carefully. Second, prices could fall further. Celia Chen, a senior director at Moody's Analytics, expects prices to drop 3% before bottoming early next year and rising slowly thereafter. "If the economy slips back into recession, however, we could easily see a 10% drop," Ms. Chen says.

And property "flipping" can be dangerous even when prices are rising. That is because, absent a real-estate boom, house price gains simply aren't that exciting. Research by Yale economist Robert Shiller suggests houses more or less track the rate of inflation over long time periods.

Houses aren't the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump."

—Jack Hough is a columnist at SmartMoney.com If you have any questions about moving, building, selecting your first home or moving up to your next home, contact me, Brook Willardsen.