3 Ways Old Man Winter Can Rob You

With Old Man Winter getting ready to grasp your home in his icy grip for the next few months, it's important to inspect your home and take steps to winterize it while the sun still shines. For some, these winterization steps are jobs you can handle yourself; for others, it might be best to call in a contractor. Here are the three most crucial areas you need to inspect and protect: Wood siding: If you have areas of your home with peeling paint, it's imperative that you get the trim, fascia and siding covered with paint before the winter freeze sets in. Pete Peterson, counter salesman for Reno Paint Mart of Nevada, cautions homeowners about letting wood go exposed for another season before repainting. "Wood acts like a wick, and water vapor travels through the wood," Peterson says. "It will form ice crystals and separate the paint from the wood." Strip peeling paint with a scraper or power washer and paint your house before the temperature drops drastically. Cold weather significantly lengthens the paint's curing and drying time, and if the paint doesn't sufficiently cure due to cold weather, the water in the paint can freeze and separate from the solids in the paint. Even brands of exterior paint designed for colder-weather applications need to be applied while temperatures are warm enough to allow the paint to properly cure. Looking for certified painting specialists? Let us help Roof and gutters: Inspecting your roof is a crucial step if you live in an area where snow builds up in the winter. Leaves and branches that stack up in valleys and crooks of the roofline hinder proper snowmelt. You also want to ensure your gutters and downspouts are free of fall debris such as leaves and branches that can inhibit their efficiency. Lastly, check all penetrations in the roofline for signs of loose or cracked caulking or damaged flashing and replace as necessary. Heating system: Your heater is your lifeline to a cozy winter. Changing or cleaning the filter for the HVAC system is an obvious first step. Second, change out an old mercury-style thermostat for a newer digital model that has programmable features. You can save a great deal of money over time by having the thermostat programmed to shut off while you are away. Lastly, have a licensed HVAC technician inspect the system for air leaks and also to clean the duct work. Consider having the technician wrap the ductwork with insulation to increase the system's efficiency. Following these three steps can help you beat Old Man Winter and prevent expensive home repairs down the road.

Top 10 Hottest Housing Markets Predictions for 2014

For the upcoming year, Zillow has predicted that ten markets will soar above all the rest, and we are surprised and pleased to see that not all ten happen to be on the coasts, unlike other lists we’ve already seen generated for 2014.

In addition to outlining the 2014 housing market predictions, Zillow predicts home values will rise by 3.0 percent, mortgages will be easier to get, and rates will reach 5.0 percent before the end of the year. Additionally, they are predicting that home ownership rates will fall to their lowest point in nearly two decades.

• 10. Boston, MA
• 9. Portland, OR
• 8. San Diego, CA
• 7. Jacksonville, FL
• 6. Raleigh, NC
• 5. Miami, FL
• 4. San Jose, CA
• 3. Austin, TX
• 2. Seattle, WA
• 1. Salt Lake City, UT

Home values will rise nationally

Dr. Stan Humphries, Zillow chief economist notes that “In 2013, home values rose rapidly – about 5 percent nationwide and more than 20 percent in some local markets. These gains, while beneficial in many ways, were also unsustainable and well above historic norms for healthy, balanced markets.”

“This year,” Dr. Humphries added, “home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction. For buyers, this is welcome news, especially for those in markets where bidding wars were becoming the norm and bubble-like conditions were starting to emerge.”

Homeownership levels will fall

Despite values rising, Dr. Humphries notes that homeownership will likely hit 20 year lows in 2014. “The housing bubble was fueled by easy lending standards and irrational expectations of home value appreciation, but it put a historically high number of American households – seven out of ten – in a home, if only temporarily.”

“That homeownership level proved unsustainable and during the housing recession and recovery the homeownership rate has floated back down to a more normal level, and we expect it to break 65% for the first time since the mid-1990s,” Dr. Humphries concluded.

2014 Housing Market Predictions

1. Housing prices rose quickly

According to realtor.com research, the national median listing price was $179,900 in January 2012 and rose to $180,000 by December 2012, and the pace of price appreciation accelerated quickly over the year to reach a median list price of $199,500 by September 2013.
In 2014, economists agree that home prices will continue to rise, which homeowners that are still underwater desperately need, but no extreme surge is expected, so watch for a healthy pace of improvement to continue in the coming year.

2. Mortgage rates remained low

“We expected mortgage rates to rise in 2013, and they started to increase in the late spring, but they’re still very affordable when you look at rates on a historical basis,” Yun said. “They just aren’t at the super-low point we saw earlier.” According to Freddie Mac, 30-year fixed-rate loans were as low as 3.45 percent in December 2012 and rose to 4.49 in September 2013.
In 2014, some believe rates could dip, some believe they will jump, but the truth is that no one knows, because there are so many moving pieces that could shift the ultimate outcome, but based on 2013, we predict that they will remain low but will, in fact, increase slightly.

3. Bidding wars

The combination of rising prices, low mortgage rates and low inventory led to a sense of urgency among buyers and the return of bidding wars, said Don Frommeyer, president of the National Association of Mortgage Brokers. According to realtor.com research, inventory in 2012 reached a high of 2,083,710 homes on the market, then steadily declined to a low of 1,583,497 homes in February 2013. At the end of September 2013, 2,210,000 homes were for sale, approximately a five-month supply.
In 2014, bidding wars will become the norm in many cities, but not nationally. Smaller cities or areas with lower demand will not necessarily see bidding wars, particularly in the areas most hard hit by the housing crash. Consider this a San Francisco issue, not a Pierre, South Dakota issue.

4. Housing affordability

In one statement, Dr. Yun said, “Housing affordability has come down a little this year because of double-digit home value appreciation and the fact that income isn’t rising in comparable amounts. Rising mortgage rates, even though they’re still low, also have an impact. While affordability right now is at a five-year low, it’s still the fifth highest for the past 30 years.”
Later, he noted that a decline was expected. “Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” he said. “Expected rising mortgage interest rates will further lower affordability in upcoming months. Next month we may see some delays associated with the government shutdown.”
In 2014, we predict that housing affordability will decrease, in fact, it will diminish in specific areas like San Jose or Stamford. Overall, housing will remain affordable, and may even inspire sales, but this metric will be inconsistent across the nation.

5. Cash buyers

Dr. Yun said a continuing surprise is that about one-third of all home purchases were made with cash, a market share that has been consistent for the past three years. While some of these cash buyers are from overseas and some are institutional investors, others are “mom and pop” investors who have had trouble getting financing.
“Even some owner-occupant buyers are cash buyers because of the excessively tight underwriting standards for loans,” Yun said. “Some people are getting help from relatives to buy, and then they plan to take out a home equity loan later to repay them.”
In 2014, cash buyers will remain around one in three, and not just for investment reasons, but because, as Dr. Yun mentioned, lending remains tight. Underwriting may loosen up a bit in 2014, but as an overreaction to the housing crash, it won’t be enough to get buyer behavior to a pre-recession norm this year.

7. Rents on the rise

“Right now we’re seeing replenishment of renters who want to buy homes,” Barry Habib, co-owner and chief market strategist for Residential Finance Corp., said. “At the peak in 2002, nearly 70 percent of people owned homes and 30 percent were renters; now 65 percent of people are homeowners and 35 percent rent. Not only are rents rising faster than home prices in many markets, but there’s pent-up demand from people who don’t want to live at home with their parents and who want to buy a home.”
In 2014, all economists agree that rents will increase, anywhere from 3.0 to 5.0 percent nationally as vacancy rates remain at their best levels in years. It will continue to be a landlord’s market.

So will 2014 be the year of recovery?

On all accounts, housing will continue improving, on that we all agree, but expect to see a steady pace of improvement in the coming year, not a spike – consider it more of the same. Home prices, sales, rents, and mortgage rates will all continue increasing steadily, and while 2014 will not mark a complete recovery to pre-recession norms, this future year does hold a healthy pace of improvement in store.

Is Your Home Ready For Winter

1) Furnace Inspection

• Call an HVAC professional to inspect your furnace and clean ducts.
• Stock up on furnace filters and change them monthly.
• Consider switching out your thermostat for a programmable thermostat.
• If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
• Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

• Cap or screen the top of the chimney to keep out rodents and birds.
• If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
• Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
• Inspect the fireplace damper for proper opening and closing.
• Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

• Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
• Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
• Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
• If your home has a basement, consider protecting its window wells by covering them with plastic shields.
• Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

• If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
• Check flashing to ensure water cannot enter the home.
• Replace worn roof shingles or tiles.
• Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
• Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

• Drain gas from lawnmowers.
• Service or tune-up snow blowers.
• Replace worn rakes and snow shovels.
• Clean, dry and store summer gardening equipment.
• Sharpen ice choppers and buy bags of ice-melt / sand.

6) Check Foundations

• Rake away all debris and edible vegetation from the foundation.
• Seal up entry points to keep small animals from crawling under the house.
• Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
• Inspect sill plates for dry rot or pest infestation.
• Secure crawlspace entrances.

7) Install Smoke and Carbon Monoxide Detectors

• Some cities require a smoke detector in every room.
• Buy extra smoke detector batteries and change them when daylight savings ends.
• Install a carbon monoxide detector near your furnace and / or water heater.
• Test smoke and carbon monoxide detectors to make sure they work.
• Buy a fire extinguisher or replace an extinguisher older than 10 years.

8) Prevent Plumbing Freezes

• Locate your water main in the event you need to shut it off in an emergency.
• Drain all garden hoses.
• Insulate exposed plumbing pipes.
• Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
• If you go on vacation, leave the heat on, set to at least 55 degrees.

9) Prepare Landscaping & Outdoor Surfaces

• Trim trees if branches hang too close to the house or electrical wires.
• Ask a gardener when your trees should be pruned to prevent winter injury.
• Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
• Seal driveways, brick patios and wood decks.
• Don't automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
• Move sensitive potted plants indoors or to a sheltered area.

10) Prepare an Emergency Kit

• Buy indoor candles and matches / lighter for use during a power shortage.
• Find the phone numbers for your utility companies and 
• tape them near your phone or inside the phone book.
• Buy a battery back-up to protect your computer and sensitive electronic equipment.
• Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
• Prepare an evacuation plan in the event of an emergency.

Top 10 Tips for Selling Your Home During the Holidays

Attract homebuyers even during the holidays with these useful tips!

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you've committed to the challenge, don your gay apparel and follow these tips.

1. Deck the halls, but don’t go overboard.
   Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
   
2. Hire a reliable real estate agent.
   That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.
   
3. Seek out motivated buyers.
   Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
   
4. Price it to sell.
   No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
   
5. 
   Make curb appeal a top priority.
   When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
   
6. Take top-notch real estate photos.
   When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.
   
7. Create a video tour for the Web.
   You'll get less foot traffic during the holidays thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm.
   
8. Give house hunters a place to escape from the cold.
   Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
   
9. Offer holiday cheer in the form of financing.
   Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
   
10. 
    Relax — the new year is just around the corner.
    The holidays are stressful enough with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don't sell now, there's always next year, which, luckily, is only a few days away.
    

11 Reasons to List During the Holidays

11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low.

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.

8. January is traditionally the month for employees to begin new jobs. Since transfers cannot wait until Spring to buy, you need to be on the market during the Holidays to capture the market.

7. Some people must buy before the end of the year for tax reasons.

6. Buyers have more time to look for a home during the Holidays than they do during a work week.

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

4. Houses show better when decorated for the Holidays.

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means more money for you.

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.

And the number one reason why your seller should list during the Holidays …

1. People who look for homes during the Holidays are more serious buyers!