september 2015 real estate update

Your REALTOR®

Steven Aslanian

September 2015

“May all your Summer dreams come true"

www.aslanian-team.com

Copyright 2015 Realty TimesAll Rights Reserved.

818-879-0800

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Pages with full header

September Real Estate Update ●

Three Sanity-Saving Tips For Moving-In Day ●

Using Gift Money For Down Payments ●

Focus On Functionality When Buying Your Home ●

What Sellers Should Know About Pets and Showings ●

What Makes A Home a Good Buy? ●

3 Home Improvement Projects That Last a Lifetime ●

Secure Your Home With Cutting-Edge Technology While

On a Budget

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Blank Template●

Pages with footer only

September Real Estate Update ●

Three Sanity-Saving Tips For Moving-In Day ●

Using Gift Money For Down Payments ●

Focus On Functionality When Buying Your Home ●

What Sellers Should Know About Pets and Showings ●

What Makes A Home a Good Buy? ●

3 Home Improvement Projects That Last a Lifetime ●

Secure Your Home With Cutting-Edge Technology While

On a Budget

●

Blank Template●

Equal HousingOpportunity

Steven [email protected]://www.aslanian-team.com

RE/MAX Olson & Associates818-879-080030699 Russell Ranch Rd.Westlake Village, CA 91362

Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

Rates Pushed Lower

In Freddie Mac's results of its

Primary Mortgage Market Survey the30-year fixed-rate mortgage averaged3.84% for the week ending August 28,2015. A year ago at this time, the 30-yearFRM averaged 4.10%. Events in China generatedeye-catching volatility in equity marketsworldwide over the past week. Amidst allthis confusion, the 30-year mortgage ratedropped to 3.84 percent, the lowest mark

Mortgage RatesSource: Realty Times

U.S. averages as of August 28, 2015:

30 yr. fixed: 3.84%15 yr. fixed: 3.06%1 yr. adj: 2.62%

since May and the fifth consecutive weekwith a rate below 4 percent.

2 Common MortgageDeal Delays

A last-minute

problem with financing canquickly delay a closing on a

home sale. Here are two of the mostcommon financing problems that cansurface:

Failure to disclose key financialinformation. One of the biggest reasonsfor a financial issue. Buyers who are notforthright about their financialcircumstances can face a delay. Lenderswill quickly find borrowers who arebehind on child support obligations orreal estate taxes, for example.

Running up credit as a mortgageapplication is pending. Lenders willrecheck borrowers' credit right before theclosing date. If new debt obligationssuddenly appear, that can be a red flagto a lender. Prior to making any largepurchases prior to closing, borrowersshould check with their lender.

Good LandscapingDraws in Buyers

In this fast moving real

estate market, curb appealis particularly important fora home seller. Here are some tips forhiring a landscaper who will do a goodjob at a reasonable price.

Review a portfolio. A neighbor'srecommendation is a good starting point,but it is also worthwhile to examine otherjobs the landscaper has done and ask forreferences. Hiring someone who isn'treliable, doesn't finish the job or whouses unhealthy plants is a big mistake.

Consider maintenance. Asking for alow-maintenance design will ensure thateven if the home owner isn't able tospend hours on the task, the lawn willcontinue to look good.

Know what good landscaping isworth. It can't hurt to let a potential buyerknow what the value of the trees andshrubs are.

Signs Indicate NoDrop-Off for Home Sales

It appears existing

home sales won't drop offat the end of the summer,as sales contracts rose modestly in July,reflecting an overall upward trend for thepast seven months, according toNational Association of REALTORS®

data. The housing market has begun thesecond half of 2015 on an upbeat note,with NAR's Pending Home Sales Index -a forward-looking indicator based oncontract signings - inching up 0.5 percentin July to 110.9. It is now 7.4 percentabove year-ago levels. "Led by a solid gain in the Northeast,contract activity in most of the countryheld steady last month, which bodes wellfor existing-sales to maintain their recentelevated pace to close out the summer,"says NAR Chief Economist LawrenceYun. "While demand and sales continueto be stronger than earlier this year,REALTORS® have reported since thespring that available listings in affordableprice ranges remain elusive for somebuyers trying to reach the market and arelikely holding back sales from being morerobust." Housing inventory shortages likely willpersist into the fall, which will alsoprompt existing-home prices to continueto rise, Yun notes. The national medianexisting-home price will likely rise 6.3percent this year to $221,400, accordingto NAR. Existing-home sales also areexpected to rise by 7.1 percent this year,totaling 5.29 million. That's still about 25percent below the 2005 peak of 7.08million.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

Three Sanity-Saving Tips For Moving-In Day

By PJ Wade

No matter how intensely you prepare for moving day, youmay still face problems if you overlook three sanity-defeatingchallenges. Can you and your partner really think clearly whenswamped by distractions, exhaustion, and disorientation? Adopt these 3 Crucial Sanity-Saving Tips for living happilybeyond moving day and you'll make settling into your new homea great success: #1: Anticipate Distraction and Prepare to Think Ahead:Distraction is not a physical state, but a mental one. In a car,you can have both hands on the wheel, eyes on the road, celletc off, and still be distracted while driving. The movingexperience represents a huge mental distraction, so that whatyou say to new neighbors can get you off on the wrong foot inspite of your best intentions. With your head packed full ofmoving details and your brain in a state of exhaustion frommoving out of your last home and preparing to set up your newhome, you are not as in charge of your brain and your mouth asusual. Acknowledge you'll be distracted and be prepared. Just ascelebrities prepare responses for paparazzi, think about whatyou want to say before the day arrives. If a wildfire ofneighborhood curiosity engulfs you, how will you respondto:"What did you pay for the house?" or "Why did you have tomove?" When asked personal questions about family and youroccupation, a light-handed, but respectful response in "love totell you more later"-style may be a friendlier response thandisjointed descriptions or "not now please" rebuffs. Makepoliteness your goal for the day even if neighbor behavior testsyour resolve. #2 Fight Exhaustion and Prepare for Energy Plus: Thesustained physical and mental stress of moving out of the oldhome and into the new one, even if you have lots of help, willdisrupt your routines. Fast-food and junk food may seem like aneasy fix, but your exhausted moving team (including you) needsmore substance to be continually refreshed and rechargedduring the moving process. Expect this and stock up onnutritional supplements, healthy quick foods, bottled water,non-sugar drinks, and fruit, and encourage catnaps wheneverfeasible. Avoid sugar, caffeine, and alcohol until after the lastbox is safely inside and the moving truck leaves. Resolve to

crash after everything is done not during a crisis. #3 Counteract Disorientation & Prepare for the Worst :● In even the most cohesive enclaves, there are undercurrentsof past grievances, real and imagined, so step carefully. Youwill not know what sentiments were left behind by the previousowners.● Many of the new introductions may not stick, so prepare tore-greet. There's no way you'll remember who everyone is andwho all the kids belong to.● Don't expect to have time to search solutions on yourphone&emdash;if you can find it! If you're new to the area,make a list of the phone number and address for the nearesthardware store (with key cutting), grocery store, medical clinic,pharmacy, bank/ATM, and gas station in case an emergencyrun is required.● Neighbors usually only want to help, but they can be drainson attention, energy, and good humor. Decide who is doingwhat during the move, so one partner isn't trapped entertainingneighbors while the other slaves in fuming silence.● If you have very private or expensive things that you don'twant the entire neighborhood to see, box or bag thesetreasures them.● Decide which typical moving-in problems would be a big dealfor you and prepare for the worst, so you'll achieve the bestoutcome possible.● Parking issues regarding the moving truck and helpers' carsrepresent another prepare-ahead detail.● Engage your real estate professional to ensure you'll receivethe right keys and copies when you expect to. Also ask whathappens if there is a closing delay and the keys are notavailable. Who will pay any costs of this delay including issueswith the moving truck? You may be on top of all the hundreds of details involved inmoving your family, but a successful move hinges on preparingto head off these three sanity-defeating problems —distractions, exhaustion, and disorientation — before they"move in" on moving day.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

Using Gift Money For Down Payments

By Blanche Evans

To take advantage of low interest rates while home pricesclimb higher and higher, some homebuyers need helpaccumulating enough money for a down-payment. To satisfysecondary market loan package purchasers such as FannieMae and Freddie Mac and insurers like the Federal HousingAuthority, lenders have strict rules about where down-paymentmoney originates.

Lenders prefer that borrowers supply their owndown-payment funds. It shows they have "skin in the game" andthat they are good with money and can meet their financialgoals. But thanks to the Great Recession and the slow roadback to recovery, many homebuyers are turning to their parents,grandparents and other family or friends for help.

Research in 2015 from loanDepot LLC, found that moreparents are planning on helping their Millennial-age kids buyhomes. In the last five years, 13 percent of parents pitched inwith down payments, covering closing costs, or co-signing theloan but lenders anticipate that fully 17 percent of parents willhelp their kids.

Because gifts are a gray area, lenders are requiring moredocumentation for down payment monies. For example, aparent may provide a few thousand dollars to an adult child touse as a down payment -- but is the money a gift or a loan?Lenders may require borrowers and gift-givers to provide acertified down-payment gift letter or to sign an affidavit.

Such affidavits must include:The amount of the gift, accompanied by a corresponding

cashier's check.The name and address of the gift-giver and relationship the

gift-giver has to the homebuyer.The purpose of the gift -- to be used only as a down payment

on the subject property, complete with the property's address.A statement confirming that the gift is not a loan, and does

not need to be repaid.Signatures of the borrower and the gift-giver.

Because lenders require a paper trail, allowing parents tosimply transfer money into the borrower's account to mix withthe borrower's funds is discouraged. First, a large deposit raisesthe borrower's income and alters the bank statements, possiblyallowing a borrower to qualify for a home that in reality is tooexpensive. And don't think underwriters won't find it. One of thefirst things they do is examine your bank accounts.

If you want to get a conventional loan, Quicken Loansadvises the following:

If you put down 20% or more, it can all be from a gift.If you put down less than 20%, part of the money can be a

gift; how much varies by loan type.You can only use gift money on primary residences and

second homes.

For FHA and VA loans, all of your down payment can be giftmoney. If your credit score is between 580 and 619, at least3.5% of your down payment must be your own money. You canonly use gift money on primary residences. If you're planning touse gift money as part or all of your down payment, ask yourlender how to meet the appropriate requirements.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

Focus On Functionality WhenBuying Your Home

By Blanche Evans

You have to live somewhere. For most of us, the choice issimply functional -- we all need food, clothing, and shelter, butwe also want our homes to function well for our needs andpreferences.

Functionality begins with making a good decision, based onyour requirements and what you can afford. Whether you rent orbuy, you decide which home to choose based on affordability,availability and functionality.

Renting is a great option for the short term, when you'rebuilding your savings and may have another move or two beforesettling down to a home of your own. The functions of rentingare independence, affordability, and mobility. As your lifematures, you may become more interested in homebuyingbecause your ideas of functionality may change.

You may want more room, privacy, and better access tocertain amenities, schools, family or work. You may want adifferent lifestyle that your current neighborhood doesn't foster.You may want the autonomy to choose and change the style ofyour home so you can enjoy your surroundings with your owndécor. You may want a home that allows you to expand yourinterests, such as cooking in a larger kitchen, creating art in astudio, or having a large back yard for gardening andentertaining.

As your preferences become more focused and as theneeds of your household change, you may find that owning ahome is more suitable for your lifestyle. But, affordability has tobe part of the function. In most areas, you can buy a home

more affordably than renting.

Let's say that you find a 2400-square foot home for sale orlease. You may be able to rent it for $1.25 per square foot, or$3,000 per month, but you can buy the property for $1.65 persquare foot or $400,000. When you finance the same propertyover 30 years, your payment is closer to $1,900. Add in typicalproperty taxes and hazard insurance, and you're at about$2,700 per month, making buying the home a better choice forthe long term.

You trade the mobility of renting for the opportunity to buildequity. When you own a home, it usually takes several years ofownership before you can build enough equity to cover yourtransaction costs, making owning a home a long-terminvestment.

Functionality is about how the home itself can serve you.Square footage can indicate if a home is large enough to havethe features you want, but you won't know until you go inside ifthe floorplan, features and number of beds and baths suit yourwish list.

Choosing a home is really about how you want to use thespace you have. As the owner, you have the option to leavethings as they are or you can add or remove features as youwish, to improve the functionality of your home.

Whether you rent or buy, choosing a home is about gettingthe most benefit for your money. It should be a decision basedon how well the location, space, and design can serve yourneeds and pocketbook.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

What Sellers Should KnowAbout Pets and Showings

By Blanche Evans

Buyers and their agents need to feel welcome to look at theproperty at their leisure without danger or distractions. So whileyou adore your sweet-tempered pit bull rescue, he could turnterritorial, barking and growling at potential homebuyers. And itcould cost you the opportunity to sell your home.

Think of buyers as guests and work to make them feelcomfortable as they consider your home for purchase. If youhave a protective dog or one that isn't well-trained, drop her offat doggie day care when you know your home is going to beshown. Or call a pet sitter on call who can take your pet for along walk while your home is being shown.

If you must leave the dog at home, don't expect real estateprofessionals to handle your dog. They are not dog trainers andshould not be expected to risk a dog bite to show your home tobuyers. This is where crate-training can be a huge advantage.At least your dog is secured and more inclined to relax whileyour home is being shown.

What you should not do is leave your dog loose in thebackyard. Not only does the buyer not have access to part ofthe property, but your dog could bark so much that the dindrives the buyer out of the house. Also, don't leave your dog atthe neighbor's. It's just as bad if the buyer believes a noisy doglives next door.

Housecats can also repel buyers. Most homes aren't

designed with a convenient place for the litter box, so catowners do the best they can. Owners get used to the smells ofcatboxes and fishy foods, which could be offensive to buyerswho don't have cats.

While buyers aren't afraid of being cat-attacked, cats canstill be startling -- they appear silently without warning and theyjump on furniture and counters. And if you've taught your cat tojump on your shoulders, you can imagine what could happen toan unsuspecting buyer.

Exotic pets can be showing-stoppers, too. Birds aregorgeous, but a puffed-up screeching cockatoo can beintimidating and dangerous. Imagine a buyer bringing smallchildren who can't resist sticking their fingers in the cage andquickly get rewarded with a nasty bite from a very strong beak.

When you're selling a home, keep in mind that the first twoweeks on the market are crucial. That's the time you want yourhome to be pristine and move-in ready.

You don't want any noise, smells or stains that could putbuyers off.

Sell your home faster and for more money by making yourhome as inviting and accessible as possible, so that buyershave no barriers to overcome. Accessibility to your home is justas important as price, condition and location.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

What Makes A Home a Good Buy?

By Blanche Evans

There's no perfect home, but some homes are more idealfor your household than others. When you look for your nexthome, carefully consider these four criteria �price, features,location and condition. The closer you get to meeting all fourcriteria, the better your chances are of making a good buy.

Price:

In any market, price has to come first. To determine whatyou can comfortably afford, talk to your real estate professional.He or she can recommend a lender who will prequalify you for apurchase loan. When you know how much you can spend, it willbe easier to shop for homes within your price range. With luck,one will stand out.

Features:

The size of your household and your activities determine thefeatures you want in your next home. The number of bedrooms,baths and living areas are a matter of comfort and convenience.You may want an extra bedroom for guests or a second mastersuite for parents.

If you work a lot at home, you'll want a private home officeor a computer nook. You may want a playroom for the kids, aseparate laundry area, and fenced yard and covered patio forentertaining. An eat-in kitchen may be more important to youthan a formal dining room. You may want an outdoor kitchen orat least an entertainment area.

Think about your daily life from morning to bedtime, andhow your next home can make these activities more pleasant.This should be your "must-have" list, and will help you look athomes more objectively.

Location:

Some areas will always be more expensive to live in thanothers. Neighborhoods that are well-kept tend to maintainhigher home values. Homes that are close to jobs, schools andshopping centers tend to sell for more money than homeswithout as much infrastructure.

What is the best home you can find in the area where youwant to live? If these homes are out of your range, you cancompromise -- buy a smaller home or a home that needs lots ofwork in the best neighborhood you can afford.

Condition:

Condition refers to the state of repair. Does the home havecurb appeal? Is it updated and well-maintained, or does it needextensive and expensive remodeling? Carefully consider anydeferred maintenance, such as a roof that may need to bereplaced in only a few years. Consider the design andfunctionality -- is the kitchen too small and would you be able toafford to remodel it? Look closely at repairs, cleanliness andtraffic flow.

The one advantage of buying a home that needs updatesand repairs is that these homes cost less than updated homesin the same neighborhood.

Be prepared to compromise. Don't frustrate yourself or yourfamily looking for perfection. Sometimes the home of yourdreams doesn't have every feature on your checklist, or it maybe a little further away than your favorite neighborhood, butyou'll be happy if it has most of criteria you want at the price youcan afford.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

3 Home Improvement ProjectsThat Last a Lifetime

By Realty Times Staff

Thinking of remodeling your home? Before you splurge on afinished basement or a new kitchen, make sure you choose ahome improvement project that will add to your home's lifetimevalue. Check out Remodeling Magazine's 2015 Cost vs. Valuereport for projects with the highest ROI. Three homeimprovement projects we like:

Get a New Roof

Although adding a new roof isn’t as exciting as a majorkitchen remodel or a new deck, this improvement cansignificantly improve the appearance of your home — and, itboasts a national average ROI of 71 percent, according to theRemodeling Magazine report.

Champion Home Exteriors offers lifetime shingles withadvanced protection technology.

The special shingles are specially constructed with materialsthat cause less harm to the environment than traditional types,and the lifetime shingles offer superior protection to your homeas well.

Plus, Champion Home Exteriors offers shingles in a varietyof colors, from modern gray shades to light tan tones, toperfectly complement your home’s style and its color.

Change Out Your Front Door

The door is the focal point of your home. It’s the first thingthat guests and visitors see when they come to your house.Adding a new door to your home can significantly boost its curbappeal, too; in fact, if you’re planning to eventually sell yourhome, the Remodeling Magazine report found that a steel front

door can recoup 101 percent of the project's total cost when itcomes time to sell.

However, if you plan to spend a little more time in yourhome and you’re not looking to sell, you can enjoy the perks ofhaving a steel door. One example: Steel doors make your homemore energy-efficient, Energy.gov reports.

Most steel doors have a magnetic weatherstripping thatseals up nicely when the door is closed, which can help to keepyour energy use down.

A steel door is also easily customizable, so if you decide torepaint your home a new color in the future, you can simplypaint the door to complement the new exterior color.

Install New Flooring

Wood flooring can last up to a century. It’s classic and canfit a wide range of different styles and designs, from modern tohistoric homes. Keeping wood floors like new doesn’t takemuch work, either. A little elbow grease and the right cleaningsolutions is all that it takes.

By taking extra precaution you can preserve the floor’sintegrity, too. Decorate with runners and rugs to and considerusing soft felt covers on the legs of your furniture to keep themfrom scratching the wood floor.

This addition can also increase the overall value of yourproperty. If you’re looking to sell your home, buyers areattracted to this improvement. If not, 50 years from now, youcan still be enjoying your wood floors.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800

Secure Your Home With Cutting-EdgeTechnology While On a Budget


A burglary occurs every 14.6 seconds and a property crimeevery 3.5 seconds, according to the FBI. In addition, Safeguardthe World reports that homes without security systems are up to300 percent more likely to be broken into. Fortunately homesecurity products and apps help deter burglars and stop them intheir tracks. While an expensive home security system helpssafeguard your home, there are other ways to stay safe withoutbreaking the bank. Check out some of the best home securitytechnology that can be controlled from your iPad no matterwhere you are.

iSmart Alarm - https://www.ismartalarm.com

Check out iSmart Alarm for a robust home security systemwith no contracts or monthly fees. Motions sensors, iCamerasand contact sensors alert you to activity in your home andrecord what's going on. A smart switch controls your lightsremotely with a schedule of your choice, and it can be used toturn appliances off and on while you're away. You also can mixand match products or only order those that meet your homesecurity needs.

Hue - http://www2.meethue.com

Couple smart lighting with your home security system ordevices. Philips’ Hue is designed with style in mind if you wantto set a certain mood or even match the colors of a sunset rightfrom your favorite photograph. Hue also secures your home byscheduling when lights go on and off and changing the colorsremotely. Set a lighting schedule for different rooms toilluminate when you want and program them to come onautomatically the moment someone walks up to your door.Potential intruders who see the unpredictable change in lightingwill think someone’s there and move onto the next house.

Presence - http://www.presencepro.com/

Download the free Presence home security app to turn your

smartphone into a live video feed. This is ideal when you justneed to monitor your front door or specific room. The app alertsyou when motion is detected and also has convenient two-wayvideo and audio capabilities. You can talk directly to your kidswho just got home from school while you're still at work or evenverbally confront an intruder even though you're on the oppositeside of the world. A burglar who's taken by surprise when youtell him or her to leave and you've called the police is likely toflee and not come back.

August Smart Lock - http://august.com/

Send a virtual key to guests, contractors or your childrenwith the August Smart Lock. Especially useful for real estateagents, August Smart Lock offers encrypted locking technologythat is scheduled to work when you need it. You can access alog record to see who entered right from your iPhone or iPad.And if your Wi-Fi goes down, the August Smart Lock still workswith the use of a back-up battery.

Goji - http://gojiaccess.com

Try Goji if you like the idea of the August smart lock but wantadditional features. Goji sends out virtual keys and unlocks yourdoor whenever you program it to. Additionally, it sends picturealerts of visitors to your door and logs it into the system. Set adate and time for guests to access your home and use theon-call help if anything happens to your smartphone. Instead ofgetting locked out, Goji representatives can virtually unlock yourdoor and cancel access for your lost or stolen phone.

Regardless of what home security apps and products youuse to secure your home, don’t forget to employ old-fashionedtechniques. Ask neighbors to keep flyers, newspapers and mailfrom littering your driveway and signaling your absence. Refrainfrom posting updates about going out of town on social media,and check your windows and doors to ensure locks are workingproperly.




Your REALTOR®

Steven Aslanian

September 2015




818-879-0800




September Real Estate Update

Rates Pushed Lower

In Freddie Mac's results of its

Primary Mortgage Market Survey the30-year fixed-rate mortgage averaged3.84% for the week ending August 28,2015. A year ago at this time, the 30-yearFRM averaged 4.10%. Events in China generatedeye-catching volatility in equity marketsworldwide over the past week. Amidst allthis confusion, the 30-year mortgage ratedropped to 3.84 percent, the lowest mark

Mortgage RatesSource: Realty Times

U.S. averages as of August 28, 2015:

30 yr. fixed: 3.84%15 yr. fixed: 3.06%1 yr. adj: 2.62%

since May and the fifth consecutive weekwith a rate below 4 percent.

2 Common MortgageDeal Delays

A last-minute

problem with financing canquickly delay a closing on a

home sale. Here are two of the mostcommon financing problems that cansurface:

Failure to disclose key financialinformation. One of the biggest reasonsfor a financial issue. Buyers who are notforthright about their financialcircumstances can face a delay. Lenderswill quickly find borrowers who arebehind on child support obligations orreal estate taxes, for example.

Running up credit as a mortgageapplication is pending. Lenders willrecheck borrowers' credit right before theclosing date. If new debt obligationssuddenly appear, that can be a red flagto a lender. Prior to making any largepurchases prior to closing, borrowersshould check with their lender.

Good LandscapingDraws in Buyers

In this fast moving real

estate market, curb appealis particularly important fora home seller. Here are some tips forhiring a landscaper who will do a goodjob at a reasonable price.

Review a portfolio. A neighbor'srecommendation is a good starting point,but it is also worthwhile to examine otherjobs the landscaper has done and ask forreferences. Hiring someone who isn'treliable, doesn't finish the job or whouses unhealthy plants is a big mistake.

Consider maintenance. Asking for alow-maintenance design will ensure thateven if the home owner isn't able tospend hours on the task, the lawn willcontinue to look good.

Know what good landscaping isworth. It can't hurt to let a potential buyerknow what the value of the trees andshrubs are.

Signs Indicate NoDrop-Off for Home Sales

It appears existing

home sales won't drop offat the end of the summer,as sales contracts rose modestly in July,reflecting an overall upward trend for thepast seven months, according toNational Association of REALTORS®

data. The housing market has begun thesecond half of 2015 on an upbeat note,with NAR's Pending Home Sales Index -a forward-looking indicator based oncontract signings - inching up 0.5 percentin July to 110.9. It is now 7.4 percentabove year-ago levels. "Led by a solid gain in the Northeast,contract activity in most of the countryheld steady last month, which bodes wellfor existing-sales to maintain their recentelevated pace to close out the summer,"says NAR Chief Economist LawrenceYun. "While demand and sales continueto be stronger than earlier this year,REALTORS® have reported since thespring that available listings in affordableprice ranges remain elusive for somebuyers trying to reach the market and arelikely holding back sales from being morerobust." Housing inventory shortages likely willpersist into the fall, which will alsoprompt existing-home prices to continueto rise, Yun notes. The national medianexisting-home price will likely rise 6.3percent this year to $221,400, accordingto NAR. Existing-home sales also areexpected to rise by 7.1 percent this year,totaling 5.29 million. That's still about 25percent below the 2005 peak of 7.08million.




September 2015 Real Estate UpdateCopyright © 2015 Realty Times. All Rights Reserved.

Three Sanity-Saving TipsFor Moving-In Day

By PJ Wade

No matter how intensely you prepare for moving day, youmay still face problems if you overlook three sanity-defeatingchallenges. Can you and your partner really think clearly whenswamped by distractions, exhaustion, and disorientation? Adopt these 3 Crucial Sanity-Saving Tips for living happilybeyond moving day and you'll make settling into your new homea great success: #1: Anticipate Distraction and Prepare to Think Ahead:Distraction is not a physical state, but a mental one. In a car,you can have both hands on the wheel, eyes on the road, celletc off, and still be distracted while driving. The movingexperience represents a huge mental distraction, so that whatyou say to new neighbors can get you off on the wrong foot inspite of your best intentions. With your head packed full ofmoving details and your brain in a state of exhaustion frommoving out of your last home and preparing to set up your newhome, you are not as in charge of your brain and your mouth asusual. Acknowledge you'll be distracted and be prepared. Just ascelebrities prepare responses for paparazzi, think about whatyou want to say before the day arrives. If a wildfire ofneighborhood curiosity engulfs you, how will you respondto:"What did you pay for the house?" or "Why did you have tomove?" When asked personal questions about family and youroccupation, a light-handed, but respectful response in "love totell you more later"-style may be a friendlier response thandisjointed descriptions or "not now please" rebuffs. Makepoliteness your goal for the day even if neighbor behavior testsyour resolve. #2 Fight Exhaustion and Prepare for Energy Plus: Thesustained physical and mental stress of moving out of the oldhome and into the new one, even if you have lots of help, willdisrupt your routines. Fast-food and junk food may seem like aneasy fix, but your exhausted moving team (including you) needsmore substance to be continually refreshed and rechargedduring the moving process. Expect this and stock up onnutritional supplements, healthy quick foods, bottled water,non-sugar drinks, and fruit, and encourage catnaps wheneverfeasible. Avoid sugar, caffeine, and alcohol until after the lastbox is safely inside and the moving truck leaves. Resolve to

crash after everything is done not during a crisis. #3 Counteract Disorientation & Prepare for the Worst :● In even the most cohesive enclaves, there are undercurrentsof past grievances, real and imagined, so step carefully. Youwill not know what sentiments were left behind by the previousowners.● Many of the new introductions may not stick, so prepare tore-greet. There's no way you'll remember who everyone is andwho all the kids belong to.● Don't expect to have time to search solutions on yourphone&emdash;if you can find it! If you're new to the area,make a list of the phone number and address for the nearesthardware store (with key cutting), grocery store, medical clinic,pharmacy, bank/ATM, and gas station in case an emergencyrun is required.● Neighbors usually only want to help, but they can be drainson attention, energy, and good humor. Decide who is doingwhat during the move, so one partner isn't trapped entertainingneighbors while the other slaves in fuming silence.● If you have very private or expensive things that you don'twant the entire neighborhood to see, box or bag thesetreasures them.● Decide which typical moving-in problems would be a big dealfor you and prepare for the worst, so you'll achieve the bestoutcome possible.● Parking issues regarding the moving truck and helpers' carsrepresent another prepare-ahead detail.● Engage your real estate professional to ensure you'll receivethe right keys and copies when you expect to. Also ask whathappens if there is a closing delay and the keys are notavailable. Who will pay any costs of this delay including issueswith the moving truck? You may be on top of all the hundreds of details involved inmoving your family, but a successful move hinges on preparingto head off these three sanity-defeating problems —distractions, exhaustion, and disorientation — before they"move in" on moving day.





Using Gift MoneyFor Down Payments

By Blanche Evans

To take advantage of low interest rates while home pricesclimb higher and higher, some homebuyers need helpaccumulating enough money for a down-payment. To satisfysecondary market loan package purchasers such as FannieMae and Freddie Mac and insurers like the Federal HousingAuthority, lenders have strict rules about where down-paymentmoney originates.

Lenders prefer that borrowers supply their owndown-payment funds. It shows they have "skin in the game" andthat they are good with money and can meet their financialgoals. But thanks to the Great Recession and the slow roadback to recovery, many homebuyers are turning to their parents,grandparents and other family or friends for help.

Research in 2015 from loanDepot LLC, found that moreparents are planning on helping their Millennial-age kids buyhomes. In the last five years, 13 percent of parents pitched inwith down payments, covering closing costs, or co-signing theloan but lenders anticipate that fully 17 percent of parents willhelp their kids.

Because gifts are a gray area, lenders are requiring moredocumentation for down payment monies. For example, aparent may provide a few thousand dollars to an adult child touse as a down payment -- but is the money a gift or a loan?Lenders may require borrowers and gift-givers to provide acertified down-payment gift letter or to sign an affidavit.

Such affidavits must include:The amount of the gift, accompanied by a corresponding

cashier's check.The name and address of the gift-giver and relationship the

gift-giver has to the homebuyer.The purpose of the gift -- to be used only as a down payment

on the subject property, complete with the property's address.A statement confirming that the gift is not a loan, and does

not need to be repaid.Signatures of the borrower and the gift-giver.

Because lenders require a paper trail, allowing parents tosimply transfer money into the borrower's account to mix withthe borrower's funds is discouraged. First, a large deposit raisesthe borrower's income and alters the bank statements, possiblyallowing a borrower to qualify for a home that in reality is tooexpensive. And don't think underwriters won't find it. One of thefirst things they do is examine your bank accounts.

If you want to get a conventional loan, Quicken Loansadvises the following:

If you put down 20% or more, it can all be from a gift.If you put down less than 20%, part of the money can be a

gift; how much varies by loan type.You can only use gift money on primary residences and

second homes.

For FHA and VA loans, all of your down payment can be giftmoney. If your credit score is between 580 and 619, at least3.5% of your down payment must be your own money. You canonly use gift money on primary residences. If you're planning touse gift money as part or all of your down payment, ask yourlender how to meet the appropriate requirements.





Focus On Functionality WhenBuying Your Home

By Blanche Evans

You have to live somewhere. For most of us, the choice issimply functional -- we all need food, clothing, and shelter, butwe also want our homes to function well for our needs andpreferences.

Functionality begins with making a good decision, based onyour requirements and what you can afford. Whether you rent orbuy, you decide which home to choose based on affordability,availability and functionality.

Renting is a great option for the short term, when you'rebuilding your savings and may have another move or two beforesettling down to a home of your own. The functions of rentingare independence, affordability, and mobility. As your lifematures, you may become more interested in homebuyingbecause your ideas of functionality may change.

You may want more room, privacy, and better access tocertain amenities, schools, family or work. You may want adifferent lifestyle that your current neighborhood doesn't foster.You may want the autonomy to choose and change the style ofyour home so you can enjoy your surroundings with your owndécor. You may want a home that allows you to expand yourinterests, such as cooking in a larger kitchen, creating art in astudio, or having a large back yard for gardening andentertaining.

As your preferences become more focused and as theneeds of your household change, you may find that owning ahome is more suitable for your lifestyle. But, affordability has tobe part of the function. In most areas, you can buy a home

more affordably than renting.

Let's say that you find a 2400-square foot home for sale orlease. You may be able to rent it for $1.25 per square foot, or$3,000 per month, but you can buy the property for $1.65 persquare foot or $400,000. When you finance the same propertyover 30 years, your payment is closer to $1,900. Add in typicalproperty taxes and hazard insurance, and you're at about$2,700 per month, making buying the home a better choice forthe long term.

You trade the mobility of renting for the opportunity to buildequity. When you own a home, it usually takes several years ofownership before you can build enough equity to cover yourtransaction costs, making owning a home a long-terminvestment.

Functionality is about how the home itself can serve you.Square footage can indicate if a home is large enough to havethe features you want, but you won't know until you go inside ifthe floorplan, features and number of beds and baths suit yourwish list.

Choosing a home is really about how you want to use thespace you have. As the owner, you have the option to leavethings as they are or you can add or remove features as youwish, to improve the functionality of your home.

Whether you rent or buy, choosing a home is about gettingthe most benefit for your money. It should be a decision basedon how well the location, space, and design can serve yourneeds and pocketbook.





What Sellers Should KnowAbout Pets and Showings

By Blanche Evans

Buyers and their agents need to feel welcome to look at theproperty at their leisure without danger or distractions. So whileyou adore your sweet-tempered pit bull rescue, he could turnterritorial, barking and growling at potential homebuyers. And itcould cost you the opportunity to sell your home.

Think of buyers as guests and work to make them feelcomfortable as they consider your home for purchase. If youhave a protective dog or one that isn't well-trained, drop her offat doggie day care when you know your home is going to beshown. Or call a pet sitter on call who can take your pet for along walk while your home is being shown.

If you must leave the dog at home, don't expect real estateprofessionals to handle your dog. They are not dog trainers andshould not be expected to risk a dog bite to show your home tobuyers. This is where crate-training can be a huge advantage.At least your dog is secured and more inclined to relax whileyour home is being shown.

What you should not do is leave your dog loose in thebackyard. Not only does the buyer not have access to part ofthe property, but your dog could bark so much that the dindrives the buyer out of the house. Also, don't leave your dog atthe neighbor's. It's just as bad if the buyer believes a noisy doglives next door.

Housecats can also repel buyers. Most homes aren't

designed with a convenient place for the litter box, so catowners do the best they can. Owners get used to the smells ofcatboxes and fishy foods, which could be offensive to buyerswho don't have cats.

While buyers aren't afraid of being cat-attacked, cats canstill be startling -- they appear silently without warning and theyjump on furniture and counters. And if you've taught your cat tojump on your shoulders, you can imagine what could happen toan unsuspecting buyer.

Exotic pets can be showing-stoppers, too. Birds aregorgeous, but a puffed-up screeching cockatoo can beintimidating and dangerous. Imagine a buyer bringing smallchildren who can't resist sticking their fingers in the cage andquickly get rewarded with a nasty bite from a very strong beak.

When you're selling a home, keep in mind that the first twoweeks on the market are crucial. That's the time you want yourhome to be pristine and move-in ready.

You don't want any noise, smells or stains that could putbuyers off.

Sell your home faster and for more money by making yourhome as inviting and accessible as possible, so that buyershave no barriers to overcome. Accessibility to your home is justas important as price, condition and location.





What Makes A Home a Good Buy?By Blanche Evans

There's no perfect home, but some homes are more idealfor your household than others. When you look for your nexthome, carefully consider these four criteria �price, features,location and condition. The closer you get to meeting all fourcriteria, the better your chances are of making a good buy.

Price:

In any market, price has to come first. To determine whatyou can comfortably afford, talk to your real estate professional.He or she can recommend a lender who will prequalify you for apurchase loan. When you know how much you can spend, it willbe easier to shop for homes within your price range. With luck,one will stand out.

Features:

The size of your household and your activities determine thefeatures you want in your next home. The number of bedrooms,baths and living areas are a matter of comfort and convenience.You may want an extra bedroom for guests or a second mastersuite for parents.

If you work a lot at home, you'll want a private home officeor a computer nook. You may want a playroom for the kids, aseparate laundry area, and fenced yard and covered patio forentertaining. An eat-in kitchen may be more important to youthan a formal dining room. You may want an outdoor kitchen orat least an entertainment area.

Think about your daily life from morning to bedtime, andhow your next home can make these activities more pleasant.This should be your "must-have" list, and will help you look athomes more objectively.

Location:

Some areas will always be more expensive to live in thanothers. Neighborhoods that are well-kept tend to maintainhigher home values. Homes that are close to jobs, schools andshopping centers tend to sell for more money than homeswithout as much infrastructure.

What is the best home you can find in the area where youwant to live? If these homes are out of your range, you cancompromise -- buy a smaller home or a home that needs lots ofwork in the best neighborhood you can afford.

Condition:

Condition refers to the state of repair. Does the home havecurb appeal? Is it updated and well-maintained, or does it needextensive and expensive remodeling? Carefully consider anydeferred maintenance, such as a roof that may need to bereplaced in only a few years. Consider the design andfunctionality -- is the kitchen too small and would you be able toafford to remodel it? Look closely at repairs, cleanliness andtraffic flow.

The one advantage of buying a home that needs updatesand repairs is that these homes cost less than updated homesin the same neighborhood.

Be prepared to compromise. Don't frustrate yourself or yourfamily looking for perfection. Sometimes the home of yourdreams doesn't have every feature on your checklist, or it maybe a little further away than your favorite neighborhood, butyou'll be happy if it has most of criteria you want at the price youcan afford.





3 Home Improvement ProjectsThat Last a Lifetime


Thinking of remodeling your home? Before you splurge on afinished basement or a new kitchen, make sure you choose ahome improvement project that will add to your home's lifetimevalue. Check out Remodeling Magazine's 2015 Cost vs. Valuereport for projects with the highest ROI. Three homeimprovement projects we like:

Get a New Roof

Although adding a new roof isn’t as exciting as a majorkitchen remodel or a new deck, this improvement cansignificantly improve the appearance of your home — and, itboasts a national average ROI of 71 percent, according to theRemodeling Magazine report.

Champion Home Exteriors offers lifetime shingles withadvanced protection technology.

The special shingles are specially constructed with materialsthat cause less harm to the environment than traditional types,and the lifetime shingles offer superior protection to your homeas well.

Plus, Champion Home Exteriors offers shingles in a varietyof colors, from modern gray shades to light tan tones, toperfectly complement your home’s style and its color.

Change Out Your Front Door

The door is the focal point of your home. It’s the first thingthat guests and visitors see when they come to your house.Adding a new door to your home can significantly boost its curbappeal, too; in fact, if you’re planning to eventually sell yourhome, the Remodeling Magazine report found that a steel front

door can recoup 101 percent of the project's total cost when itcomes time to sell.

However, if you plan to spend a little more time in yourhome and you’re not looking to sell, you can enjoy the perks ofhaving a steel door. One example: Steel doors make your homemore energy-efficient, Energy.gov reports.

Most steel doors have a magnetic weatherstripping thatseals up nicely when the door is closed, which can help to keepyour energy use down.

A steel door is also easily customizable, so if you decide torepaint your home a new color in the future, you can simplypaint the door to complement the new exterior color.

Install New Flooring

Wood flooring can last up to a century. It’s classic and canfit a wide range of different styles and designs, from modern tohistoric homes. Keeping wood floors like new doesn’t takemuch work, either. A little elbow grease and the right cleaningsolutions is all that it takes.

By taking extra precaution you can preserve the floor’sintegrity, too. Decorate with runners and rugs to and considerusing soft felt covers on the legs of your furniture to keep themfrom scratching the wood floor.

This addition can also increase the overall value of yourproperty. If you’re looking to sell your home, buyers areattracted to this improvement. If not, 50 years from now, youcan still be enjoying your wood floors.





Secure Your Home With Cutting-EdgeTechnology While On a Budget


A burglary occurs every 14.6 seconds and a property crimeevery 3.5 seconds, according to the FBI. In addition, Safeguardthe World reports that homes without security systems are up to300 percent more likely to be broken into. Fortunately homesecurity products and apps help deter burglars and stop them intheir tracks. While an expensive home security system helpssafeguard your home, there are other ways to stay safe withoutbreaking the bank. Check out some of the best home securitytechnology that can be controlled from your iPad no matterwhere you are.

iSmart Alarm - https://www.ismartalarm.com

Check out iSmart Alarm for a robust home security systemwith no contracts or monthly fees. Motions sensors, iCamerasand contact sensors alert you to activity in your home andrecord what's going on. A smart switch controls your lightsremotely with a schedule of your choice, and it can be used toturn appliances off and on while you're away. You also can mixand match products or only order those that meet your homesecurity needs.

Hue - http://www2.meethue.com

Couple smart lighting with your home security system ordevices. Philips’ Hue is designed with style in mind if you wantto set a certain mood or even match the colors of a sunset rightfrom your favorite photograph. Hue also secures your home byscheduling when lights go on and off and changing the colorsremotely. Set a lighting schedule for different rooms toilluminate when you want and program them to come onautomatically the moment someone walks up to your door.Potential intruders who see the unpredictable change in lightingwill think someone’s there and move onto the next house.

Presence - http://www.presencepro.com/

Download the free Presence home security app to turn your

smartphone into a live video feed. This is ideal when you justneed to monitor your front door or specific room. The app alertsyou when motion is detected and also has convenient two-wayvideo and audio capabilities. You can talk directly to your kidswho just got home from school while you're still at work or evenverbally confront an intruder even though you're on the oppositeside of the world. A burglar who's taken by surprise when youtell him or her to leave and you've called the police is likely toflee and not come back.

August Smart Lock - http://august.com/

Send a virtual key to guests, contractors or your childrenwith the August Smart Lock. Especially useful for real estateagents, August Smart Lock offers encrypted locking technologythat is scheduled to work when you need it. You can access alog record to see who entered right from your iPhone or iPad.And if your Wi-Fi goes down, the August Smart Lock still workswith the use of a back-up battery.

Goji - http://gojiaccess.com

Try Goji if you like the idea of the August smart lock but wantadditional features. Goji sends out virtual keys and unlocks yourdoor whenever you program it to. Additionally, it sends picturealerts of visitors to your door and logs it into the system. Set adate and time for guests to access your home and use theon-call help if anything happens to your smartphone. Instead ofgetting locked out, Goji representatives can virtually unlock yourdoor and cancel access for your lost or stolen phone.

Regardless of what home security apps and products youuse to secure your home, don’t forget to employ old-fashionedtechniques. Ask neighbors to keep flyers, newspapers and mailfrom littering your driveway and signaling your absence. Refrainfrom posting updates about going out of town on social media,and check your windows and doors to ensure locks are workingproperly.





september 2015 real estate update

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