Buying and Selling a Home at the Same Time

Buying and selling a home is very stressful. Doing both at once can be utterly crazy. Sometimes, you don’t have a choice.

Real estate is a business based on supply and demand. If there are only a few houses for sale, buyers have to compete for those available homes, making it a sellers’ market. When hundreds of homes are on the market, house hunters find themselves in stronger bargaining positions relative to sellers, making it a buyers’ market.

Currently here, we are a seller’s market. There are a number of new home divisions being built, and that could change the balance soon.

Start Early

Get your finances in order by checking your credit report and score to ensure there are no surprises. Work with a professional loan officer to get prequalified. And find a reputable real estate agent with experience in sell/buy contingencies.

Also, most people want top dollar for the home they’re selling and the lowest price for the home that they’re buying. It may be worth your while to sell during the height of the real estate season and then buy a few months later.

If that’s not possible, then you will need to be more flexible on the pricing.

Get Packing

You may need to move very quickly once the right offer comes in, so start boxing up stuff you don’t need easy access to. Get rid of all the things you won’t need until you’ve moved into your new home. This will help make your home show better and starting the packing process now will make it that much easier to move later. Rent a storage space if you need to.

Do The Quick Fixes

Repaint the walls. Repair the fence. Plant some pretty flower bowls. Do whatever will put your current home’s best foot forward.



While many variables can come into play when you’re buying and selling property, assembling a top-notch team of advisers and doing your homework ahead of time can help ensure your real estate transactions go as smoothly as possible.

Tips To Help You Decide Whether To Remodel Or Sell

As home prices increase, homeowners have options. Some are quickly gaining back the equity they lost over the last several years. That creates opportunity to maybe refinance, remodel, or sell.

If you’re sitting on the fence trying to determine whether to list your home for sale or to remodel it, consider these important tips.

Tip 1: Do a “Love it or List it” Analysis.

On a sheet of paper write down the things you love about your home and the things that might cause you to decide to list your home for sale. Take your time doing this. Really give every aspect of your home consideration. Do you like the neighborhood? Is it where you want to stay for a long while or even retire? Is the area or your home lacking something? Could remodeling your home be the solution?

Once you do the “love it or list it” analysis, you’ll be able to identify which parts of your home are bothering your the most. With that information, you can now start to explore more options.

Tip 2: Do your research.

This applies to both options–remodeling or selling. Visit other neighborhoods that you might like to live in. Carefully explore the surrounding area, the homes, the types of people, the shops, businesses, and churches. Think about your commute. Would it be longer? Would it cost more in gas? Are there any gains to offset extra costs? Gathering these details will help you add more to your “love it or list it” analysis.

Also, invite some real estate agents to your home to get some expert advice on how much your home would sell for and how long it might take. When you get that information, it can help you determine if selling is best.

Next visit some remodeling companies. See their remodeling projects and invite their team to your house to offer their suggestions. Sometimes what a homeowner thinks is a difficult remodel is really quite simple. Of course, the opposite is true too. For instance, if a home doesn’t have the supporting structure it needs, a remodel could become very complex or, in some case, impossible, which might prompt an immediate desire to sell.

Tip 3: Have your financial records in order.

Whether you decide to remodel or sell, having your financial records easily accessible is vital. You’ll need these documents for both situations. Knowing what upgrades you’ve already done to the home will help when it comes time to sell. And, having your tax documents and other financial information on hand will help you if you decide to remodel using financing.

Tip 4: Evaluate the process.

Talk to expert listing agents and remodeling companies so that you can completely understand what to expect with both processes. If you’re listing your home, learn about the marketing process, holding open houses, showing your home, what large items might need to be removed, and the overall timing of how long you’ll need before you close escrow. For remodeling, get details about the length of the expected renovation. Will you be able to live in the home or will you have to find a place to stay? Will you use one firm to do both the design and build process? Often this is easier and can be less costly than using several contractors.

Take your time and pay close attention to all the details. Both selling and renovating a home are major decisions. Make sure you give the decision-making process ample time as well as compiling a considerable amount of research to make your final decision.

Written by Phoebe Chongchua

Market Commentary for the Week of September 8th

This week brings us the release of only two pieces of monthly economic data in addition to two Treasury auctions that have the potential to affect mortgage rates. Despite the low number of reports, we still will likely see a fair amount of movement in the markets and mortgage pricing. The economic data is set for late in the week and the Treasury auctions will take place mid-week.

There is nothing of relevance scheduled to be posted or announced Monday, Tuesday or Wednesday morning. In the absence of anything on the schedule, look for the stock markets to affect bond trading and mortgage pricing early this week. As long as no major news or events transpire, such as developments in Ukraine, stock strength will probably lead to bond weakness and higher mortgage rates. If the major stock indexes fall from current levels, bond prices should rise, pushing mortgage rates lower the first couple days.

There are two Treasury auctions this week that have the potential to influence mortgage rates. The first is Wednesday’s 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating that interest in longer-term securities such as mortgage-related bonds is strengthening, the earlier losses are usually recovered after the results are announced. The results of each sale will be posted at 1:00 PM ET of auction day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading Wednesday and Thursday. However, weak levels of interest could lead to broader selling in the bond market that could push mortgage rates higher.

Friday morning has both pieces of economic data scheduled with one of them considered to be a major release. The highly important report is August’s Retail Sales at 8:30 AM Friday. This Commerce Department report will give us a very important measurement of consumer spending that is extremely relevant to the markets because it makes up over two-thirds of the U.S. economy. Current forecasts are calling for a 0.6% increase in sales. Analysts are also calling for a 0.3% rise in sales if more volatile auto transactions are excluded. Larger than expected increases would be considered bad news for bonds and likely lead to an increase in mortgage pricing since it would indicate economic growth.

The other relevant monthly release of the week will be posted by the University of Michigan late Friday morning. Their Index of Consumer Sentiment will give us an indication of consumer confidence, which projects consumer willingness to spend. If a consumer’s confidence in their own financial situation is rising, they are more apt to make large purchases in the near future. But, if they are growing more concerned about their job security or finances, they probably will delay making that sizable purchase. This influences future consumer spending data and therefore, impacts the financial markets. It is expected to show a reading of 83.5 that would mean confidence rose from August’s level of 82.5. That would be considered slightly negative news for bonds and mortgage rates. Good news for mortgage shoppers would be a sizable decline in the index.

Overall, Friday is the best candidate to be most important day with all of the week’s economic data scheduled, but we could see movement in rates multiple days. With nothing scheduled for release Monday or Tuesday, either could end up being the calmest day of the week. The Treasury auctions raise the possibility of afternoon volatility in the middle days. With the FOMC meeting, projections and press conference looming next week, any surprises this week could affect theories about what the Fed will say following that meeting. I am also concerned with the fact that last Friday’s favorable employment data wasn’t enough to keep the benchmark 10-year Treasury Note yield below 2.44%. Despite the morning rally, it closed at 2.46%. This is could signal another upward move in bond yields and mortgage rates is coming. Therefore, if still floating an interest rate and closing in the near future, I strongly recommend maintaining contact with your mortgage professional the entire week.

The Unique Eichler Home

Even though Eichler homes are considered modern architecture, there is something distinct about them. From their open floor plan to their atrium, Joseph Eichler designed the ubiquitous California tract home of the 1950’s and 1960’s. The majority of true Eichler homes are in the Bay Area of Northern California and Orange County in Southern California.

There were quite a few knock-off’s as well. Steve Jobs believed he had grown up in an Eichler home, but it was actually created by a different builder.

Eichler Homes exteriors featured

• flat and low-sloping A-Framed roofs
• vertical 2-inch pattern wood siding
• simple facades with clean geometric lines

Joseph Eichler wanted to “Bring the Outside In.” He designed the homes with skylights and floor-to-ceiling glass windows with glass transoms looking out on protected, private outdoor rooms, patios, atriums, gardens, and swimming pools.

One interesting design feature to note is that most Eichler homes feature few, if any, street-facing windows. The ones that do have either small ceiling level windows or small rectangular windows with frosted glass.

You can see some of the original brochures scanned in here.

Eichler homes also offered radient heating through hot water pipes underneath the concrete flooring. It’s important to note that if you own an Eichler or similarly built home, at some point you will have to repair or replace the pipes which will involve tearing up the floor. Eichler homes were built on slab foundations, not pier and post.

The walls do not go completely up to the ceiling, so noise does travel. This is not a home for whispering secrets in.

If you buy an Eichler or similar architecture, have the roof checked thoroughly for any dry rot, or if it needs to be replaced.

If the Eichler has not been recently remodeled, there is probably very little insulation in the walls and in the ceiling. And there is no drywall. If an Eichler catches on fire, it probably will burn very quickly, so you will want to look into how to fireproof the home.

Many of the issues would be common from any tract home you bought that was built in the 50’s and 60’s. With Eichler, you need to pay attention most to the roof and the radient heating. And treat yourself by having the windows professionally cleaned a few times a year.

Do you own an Eichler or similar home? What’s your favorite part about it?

How to Build Credit if You Have a Small Income

Building and maintaining a good credit score is one of the best moves you can make. Your credit score will determine the terms of loans as well as affect your job prospects. As we’ve mentioned, in prior blogs, when a company runs a background check during the hiring process, they include a credit check as they’ve found that good credit scores correlate to good workers.

You may have a small income right now, or feel like you don’t have a lot of money, but the habits you start today will have an effect within sixty to ninety days. And when it comes time to apply for a mortgage, you’ll be reaping the benefits from deciding to make a solid credit score a priority.

So where do you start?

First, know what creates a good score. The FICO scoring model takes a lot of variables into account to create your score. These include:

• Payment history
• Amounts owed
• Length of credit history
• Mix of credit accounts
• Recent credit inquiries

Income is not one of the factors.

Secondly, open and use credit wisely as soon as you can. the easiest ways to do this is with a credit card. If you’re not earning much money, you might be shying away from plastic to avoid the temptation to overspend. But this will only stall your efforts to build good credit.

If your earnings are limited, you may have some difficulties. According to the CARD Act of 2009, credit card issuers must verify a customer’s ability to pay before approving his or her application. So if you can’t get an unsecured card for a low limit, request a secured one.

A secured credit card has you put down a deposit for your limit. But when you use the card, you’re building up credit-worthiness. Just always remember to pay in full on time.

Then, look into additional loan types such as a loan to buy a sofa, or a car. Adding in additional loan types strengthens your credit score.

Then, use credit wisely and pay your bills on time.

So what if you need a little help?

There are a number of smart phone applications that can assist you.

1. If you’re disorganized, look into Google Wallet, a free app that virtually stores gift cards and loyalty programs you can redeem at checkout, both at brick-and-mortar stores and websites that accept contactless payments.
2. If you’re forgetful, the free app Check can help you know when funds are running low or the due date for a bill is approaching.
3. If you’re on a tight budget, Budgt, a $1.99 iPhone app, is designed to help you by calculating a new, personalized budget every day based on what you owe and what you’ve spent.
4. If you’re super busy but love the numbers, consider using Expensify, a free app that lets you scan receipts and keep them in one place, and then transfers the data to spreadsheets.
5. Finally if you don’t know where to start, look into the free LearnVest app, which lets you track all your financial accounts in one place, set up a budget, categorize your expenses—and get a complete snapshot of your whole money life.

By staying on top of your money and being smart with credit, you’ll have the best credit score in no time. And that will save you money.

Are You Really Ready to Buy a New Home?

You’ve done the math. With the down payment you’ve saved, you can safely buy a home for less money than you could ever have as a renter.

Yet, you seem unable to make a commitment. Are you sure you’re really ready to buy a home?

If you find yourself saying any of the following to family, friends, or your real estate agent, you’re not ready.

“I’ll know when I see the right place.”

“I want to see what I can find on my own.”

“I’ll only buy if I can get a fantastic deal.”

“I’m waiting for interest rates to go down.”

With houses for sale all over the place, you can easily find the right place, especially with your real estate agent screening houses for you. Prices are still lower than they were at the peak. Interest rates are still low. So what are you waiting for — prices to rise more than they already have, for interest rates to go up? You get the idea.

Owning a home is a big responsibility, and the market has been volatile for years. If you’re scared, that’s understandable. So, maybe you need to examine your tolerance for risk.

Like the stock market or any other money investment, there is no sure thing, but there is plenty of evidence that returns are built over time. You’ll eventually get your money back, or you might even make money on your home, if you:

1. Are realistic. A home should meet your needs for shelter and your family’s activities. Don’t expect your home to make you rich.

2. Buy within your means. It’s no fun dreading your monthly mortgage payment.

3. Occupy your home long enough. It takes approximately four years just to get your closing costs back in equity.

4.. Keep your home repaired and updated. If you have to sell quickly, you’ll get a better price if your home doesn’t need work.

Currently, market conditions are in your favor. High inventories in most areas, lower prices than others have paid in the past and low mortgage interest rates combine to lower your risk.

In addition, you have all kinds of incentives, like the ability to buy with a federally subsidized or guaranteed loan, as well as income tax and capital gains benefits. And there are unexpected dividends – homeowners are automatically assumed to be more responsible than renters, which is why you get a discount on auto insurance if you own a home.

If you’re really ready to buy a home, you take action to make a good deal happen. You get preapproved by a lender so you’re ready to make an offer on a home within your means. You give your wish list to your real estate agent, attend open houses, search on the Internet, and tell friends and family what kind of home you’re looking for. Everyone and everything is working in your favor to get you to your goal.

You find the home you want, and you put your money down and you close.

That’s ready.

Market Commentary for the Week of September 2nd

This week brings us the release of six pieces of economic data, with two of them considered to be highly important to the markets and mortgage rates. The financial and mortgage markets will be closed Monday in observance of the Labor Day holiday, meaning we will not see new mortgage rates until Tuesday morning.

The first release of the week will come from the Institute for Supply Management (ISM), who will posted their manufacturing index for August at 10:00 AM ET today. This index measures manufacturer sentiment and reported a reading of 57.9, which is higher than the expected reading of 56.9 and slightly higher than July’s reading of 57.1. A reading above 50 indicates manufacturing sector strength because it means that more surveyed manufacturers felt business improved during the month than those who felt it had worsened. A much larger decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates Tuesday as it would hint at manufacturing sector weakness.

Wednesday has three reports set for release that may influence rates. The first is the ADP Employment report before the markets open Wednesday morning, which has the potential to cause some movement in the markets if it shows much stronger or weaker numbers. This report tracks changes in private-sector jobs of the company’s clients that use them for payroll processing. While it does draw attention, it is my opinion that it is overrated and is not a true reflection of the broader employment picture. It also is not very accurate in predicting results of the monthly government report that follows a couple days later. Still, because we sometimes see a noticeable reaction to the report, it is on this week’s calendar.

The second report of the day Wednesday will come from the Commerce Department, who will post July’s Factory Orders data at 10:00 AM ET. This manufacturing sector report is similar to last week’s Durable Goods Orders release, but also includes orders for non-durable goods. It can impact the bond market enough to change mortgage rates if it varies from forecasts by a wide margin. Analysts are forecasting an increase of 11.0% in new orders, meaning manufacturing activity spiked in July do to the whopping increase in airplane orders that drove the Durable Goods report last week. A much smaller increase would be good news for the bond market and mortgage pricing, but I don’t believe we will see too much of a reaction in mortgage rates Wednesday.

And finally, the Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of information when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises or changes from the previous release, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed’s next monetary policy move.

Thursday’s only relevant monthly or quarterly release is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show little change from the previous estimate of a 2.5% increase. Forecasts are currently calling for a 2.6% increase, meaning productivity was slightly better from April through June than previously thought. This would technically be good news for the bond market and mortgage rates, but this data is considered to be only moderately important to the markets. Therefore, it will take a sizable variance from forecasts for this report to affect mortgage rates. Favorable news would be a sizable upward revision in productivity.

The biggest news of the week and arguably the most important that we see monthly comes early Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August at 8:30 AM ET Friday. The ideal scenario for the bond market and mortgage rates is rising unemployment, a drop in payrolls and earnings to fall slightly. Analysts are expecting to see that the unemployment rate slipped 0.1% to 6.1% and that 2200,000 new jobs were added during the month. Weaker than expected readings would signal softer employment sector growth than predicted and would be very good news for bonds and mortgage rates Friday. However, if we get noticeably stronger than expected numbers, mortgage rates and bond yields will probably spike higher Friday.

Overall, this is likely to be a highly active week for the financial markets and mortgage pricing. Friday is the key day with the Employment report but Tuesday could also be one of the more active days due to the ISM report that follows a three-day weekend. We also need to watch the Ukraine crisis as further escalation will likely cause ripples in the world markets and here. With so much important data scheduled and the potential for geopolitical influence, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate and closing in the near future.