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Buying a Pre-Foreclosure Property

The pre-foreclosure stage can yield some real bargains, but most experts agree it is the most difficult stage during which to purchase a distressed home.

Be aware that a pre-foreclosure property is not necessarily for sale. The pre-foreclosure stage is the period between the time in which a Notice of Default (in non-judicial foreclosure) or lis pendens (in judicial foreclosure) has been issued to the homeowner and after the property is sold at a foreclosure auction.

The owner may be working to cure the default, or he may be hoping for a pre-qualified cash buyer to help him avoid the impending foreclosure.

Here are 10 tips to guide you through the search for and purchase of a pre-foreclosure home:

1. Begin the hunt

One of the trickiest aspects to buying during this stage of foreclosure is finding properties. That’s because some of these houses are not yet on the market. Start your search by looking on Zillow for pre-foreclosures. This information is free after you register with a free account. Or, check your local newspaper for foreclosure notices. You may also want to market yourself with online postings, signs, fliers or postcards (“Willing to pay CASH for your home.”)

2. Drive by

Once you find a property, go see it so you can get a better idea of its location and condition. This could facilitate a casual meeting with the owner or a chatty next-door neighbor. Remember, the owner is probably still living in the home, so be judicious.

3. Get a status update

It is not uncommon for homeowners to resolve their financial problems, so you need to do your homework and verify whether the property is still in default. The trustee who filed the paperwork to initiate the foreclosure should be able to provide this information. Or, contact a local foreclosure specialist to help you.

4. Valuation

Check public records to determine the outstanding loan balance and liens on the home and consult with local real estate agents. Additionally, Zillow offers two data points that can be helpful to ascertain value:

The "Foreclosure Estimate," which is the price we predict a property will finally sell for if it’s listed as a foreclosure (bank-owned property or real estate owned).

The Below Zestimate® value, which is a number that represents the difference between two estimated market values as calculated by Zillow: the Zestimate® home valuation and the Foreclosure Estimate. The Foreclosure Estimate incorporates foreclosure data; the Zestimate does not.

5. Do some math

Subtract the costs you will encounter as a buyer (loan balance, liens, insurance) from the estimated value of the property. If you enter into negotiations with the owner, you can use this figure as your breakeven number.

6. Reach out

Once you’ve done considerable homework, it’s time to contact the homeowner by letter or phone call and let him know that you’re interested in his property. Remember that homeowners facing foreclosure are distressed, so enormous amounts of tact are required. Try to arrange a meeting so you can get a better look at the property and potentially discuss a possible sale.

7. Walk through

If the owner is willing, take a tour of the property. Determine how much you’d need to spend on repairs and subtract that amount from your breakeven number. If you’re not comfortable estimating repair costs, consider taking your contractor along for the tour – just remember to be considerate of the owner’s circumstances.

8. Negotiate

Many factors will figure into your offer, including regional real estate appreciation and the potential for increasing value. Ideally, your offer will be considerably lower – perhaps 20 percent or more – than your breakeven number. Be creative. For instance, an owner may be more willing to flex on price if you allow him to stay in the property for 30 to 45 days while he finds a new place to live.

9. Put it in writing

Once a deal has been reached, draw up a purchase agreement. If that’s not within your realm of expertise, turn to a real estate agent who specializes in foreclosures or an attorney for assistance. Make sure that the agreement makes the deal contingent on a full title search conducted by a title company and a professional inspection of the property.

10. Money matters

An escrow company, which acts as a third party, can manage the transfer of money and property ownership.

Not all homeowners will welcome your interest in their pre-foreclosure home – and that’s fine. Others, however, will realize that, by selling during this stage, they may be able to salvage some equity and minimize damage to their credit record.

source: http://www.zillow.com/foreclosures/buyer/buying-a-preforeclosure-property/

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6 Ways to Make Your Apartment More Secure

Having an apartment of your own is a wonderful thing, but it’s also a great deal of responsibility. Apartment security is something that’s easily overlooked, particularly by new renters, but it shouldn’t be. After all, you want to feel safe in your home. So, here are six ways to make your apartment more secure:

Detector checkup

It goes without saying that you should have both a smoke detector and a carbon monoxide detector in your apartment. These detectors may never set off an alarm in your lifetime, but if they do they could save your life. However, there’s no chance of hearing an alarm if the batteries are dead. Make sure to test out your detectors when you move in to confirm that the batteries are functioning, and change the batteries twice a year, when daylight savings time changes.

Outer security

If you live in a multiple-unit building, make sure that the locks on the outer doors work. They’re your first line of defense — you don’t want just anyone to be able to wander into your building. If the exterior lock is working, you’ll have already stopped many potential trouble-makers. If there’s any problem with the lock, it is the responsibility of the building’s owner to fix it, so you need to notify him or her immediately when you discover that the lock is broken.

Buzzer caution

If someone you don’t know buzzes and wants to be let into your building, don’t play a nice guy and let them in. Be a good neighbor and ignore the buzzer, or go downstairs and see who they are. Otherwise, you’re subjecting your building to all kinds of peddlers and nuisance, and more seriously, people who may harass other residents in the building or who may be looking for a good opportunity for a break-in.

Deadbolt double-check

Make sure your apartment door has a deadbolt. If it doesn’t, complain. Why? Deadbolts are what keep doors shut against intruders. Also, make sure the deadbolt is sturdy and well-installed. A poorly installed deadbolt or a dinky deadbolt that barely extends into the doorframe can easily be overcome by an experienced burglar. In contrast, a high-quality deadbolt requires a lot of force before it can be broken. However, much like with the detectors, the best deadbolt in the world won’t do you any good if you don’t lock your door.

Peephole confirmation

Make sure it’s clear and not painted over (a frequent problem.) And use it every time someone knocks. If you don’t recognize who’s knocking, don’t open the door.

First-floor rules

If you live on the first floor of a building, you need to take extra precautions. Make sure all the windows have grates or some type of secure locking mechanism. Also, much like you wouldn’t leave an iPhone in plain view in the backseat of an unattended car, don’t leave your shades open when you’re not home. People can look right in, and it can give them ideas.

While living on your own exposes you to new risks, a common sense and a healthy dose of skepticism will go a long way to keep you safe in your first apartment. Getting burglarized is a real risk, particularly in an urban environment, but it’s still rare, and having renter’s insurance will offer some peace of mind. Far better than becoming jittery at the thought of a cat burglar is to take the precautions above, know you are doing your best to be safe, and stop worrying about it.

 source: http://www.zillow.com/blog/2012-10-29/6-ways-to-make-your-apartment-more-secure/

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Home Warranties Take Some of the Worry out of Home Buying

If you buy a silk blouse and the sleeve falls off after just one wearing, you’re likely to get your money back — or at least an exchange — from the retailer who sold it.

If you buy a house and the furnace stops working two weeks after you move in, you’re out of luck — unless you purchased or received a home warranty.

Two products — the home warranty and the builder warranty — can take some of the worry out of buying or selling a home. These warranties typically insure appliances and major systems in a home, whether it’s new or just new to you.

Builder warranties

Most builder warranties cover a new home’s materials and workmanship for one to two years, with coverage that lasts up to 10 years on major structural elements.

Rules vary from state to state, but generally these warranties only apply to the sale of a new home from the person or company that constructed it, to a new owner-occupant. Your state attorney general’s office can help you determine whether your builder is offering all the warranties required by state law.

Home warranties

A homeowner who gets a builder warranty with the purchase of his new home may also opt to add another layer of coverage by purchasing a home warranty. Additionally, home warranties can provide protection for those buying older homes. Home warranties generally cannot be purchased for mixed-use properties or mobile homes.

A basic one-year warranty can cost as little as $200 and will generally cover plumbing, heating and some appliances. The price of a warranty will increase as additional items and coverages — such as a swimming pool, washing machine or garage door opener — are added.

Home warranties may be purchased by sellers, who often add them to their closing costs, but they may also be purchased by buyers. Some real estate agents will give buyers a home warranty as a gift at closing.

Home warranties are not the same as homeowners insurance. Insurance protects against perils including fire, hail, property crimes and certain types of water damage. A home warranty does not cover these perils but, rather, covers specific components of the home.

A home warranty is a contract between a homeowner and a home warranty company that provides for discounted repair and replacement service on named items. When something that is covered by a home warranty breaks down, the homeowner calls the home warranty company, which dispatches one of its contracted service providers to examine the problem. If the necessary repair or replacement is covered by the warranty, the homeowner only pays a small service fee (in addition to the money already spent to purchase the warranty), and the service provider completes the work.

If you’re thinking about purchasing a home warranty, do your homework. Shop around for the coverage and pricing that best fits your needs. Ask the warranty company:

What is covered?

What is excluded from coverage?

When does coverage begin? Some companies provide coverage on closing day, while others don’t take effect for two weeks to a month.

How long does coverage last?

What is the claim-filing process?

Is there a cost to file a claim?

Knowing your warranty options and doing your research ahead of time can provide peace of mind when moving into your new home.

source: http://www.zillow.com/blog/2012-10-18/home-warranties-take-some-of-the-worry-out-of-home-buying/

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How Much Income Do You Need to Buy a House?

Source: flickr user images of money

If you’re in the market for a new home, chances are you’ll have to compromise at some point along the way. Maybe you’ll have to commute a little farther than you’d like in order to get the best value for your money. Or perhaps you’ll forgo a huge backyard to be closer to the city.

And when it comes to finances, you might find a disparity between how much house you want and how much house you can purchase given your gross monthly income and other factors.

Home loans are made against your ability to repay. While the mortgage loan is secured against the house, it is really made against your income. That’s what mortgage lenders look for — income to offset liabilities.

Simply put, the amount of income you need to purchase a house will vary by your payment comfort level, including any other monthly debt obligations you might have.

Important terms

Mortgage payment:  Principal, interest, property taxes insurance and mortgage insurance, if needed

Consumer debts: Minimum payment obligations on things such as auto loans, credit cards, student loans, personal loans and installment loans

Other debt obligations:  Alimony and/or child support or any other court-ordered repayment obligations

Running the math

Here’s a simple formula to calculate the amount of income you’ll need to purchase a home:

Target mortgage payment + consumer debts ÷ .36 = Gross monthly income needed to qualify

Most lenders limit your debt-to-income ratio (how much of your monthly income pays debt) to between 36 percent and 45 percent. While the exact ratio varies by lender and loan type, it’s best to base your calculations on the lower end to ensure that you won’t overextend yourself financially.

So, if your target mortgage payment is $2,000 per month and you have consumer debts of $300 per month, you will need $6,388 gross monthly income to offset your housing expenses and consumer obligations.

Down payment

Your down payment is another important factor in determining how much income you’ll need to buy a home.

Consider the following loan scenario using a purchase price of $300,000 (assuming no other debts) and the current rates on Zillow Mortgage Marketplace.

Conventional loan

Down payment: 5 percent ($15,000)

Interest rate: 3.26 percent

Approximate mortgage payment: $1,770

Gross monthly income needed: $4,916

So at the end of the day how much income you need to purchase a home is predicated on your monthly income, consumer debt obligations and down payment.

Impact of debt

For every dollar of debt, you will need double that in income. So if you have a $300 car payment, you’ll need at least $600 per month or more in income to offset that debt.

Debt erodes income, and less income translates to less purchasing power.

So, does buying a home make sense?

Yes, so long as the amount you can borrow for your desired purchase price is in sync with your debt obligations and, of course, your down payment

source: http://www.zillow.com/blog/2012-10-16/how-much-income-do-you-need-to-buy-a-house/

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35 Lifechanging Ways To Use Everyday Objects

1. Use a can opener to open sealed plastic packaging.

This tip would have saved me approximately 22.8 hours of my life.

2. Add saline solution to refresh dried-out mascara.

Just a couple of drops will do.

Source: passionforsavings.com

3. Use a toilet seat cover to blot the oil from a greasy face.

4. Use pretty wine corks to make planters for tiny succulents.

Put magnets on them and hang them on your fridge. Instructions here.

Source: everafterblueprint.com

5. Amplify the volume of your iPhone or iPod by placing it in a bowl.

Source: realsimple.com

6. Use paper hole reinforcements to give yourself a half-moon manicure.

Source: s3.amazonaws.com

7. Use a banana to fix a DVD.

8. Use Jello as a lipstain.

Directions: Pour the powder mix into a bowl and moisten a Q-Tip with water. Then, being very careful not to use your fingers since the red stains stay put, dip the Q-Tip into the powder and apply it directly to your lips.

Source: pics.livejournal.com

9. Use diluted fabric softener as a leave-in hair conditioner.

Source: dizzysplayhouse.com

10. Use a lint roller to clean out the debris in your handbag.

I am the queen of cookie crumbs in my handbag.

Source: realsimple.com

11. Use nonstick spray on the inside of your votive holders.

When the candle has burned out, the remaining wax will just slip out.

Source: realsimple.com

12. Eat marshmallows to soothe a sore throat.

There's a scientific explanation behind this.

(You can also use marshmallows to separate your toes during a home pedicure.)

Source: 7thhouseontheleft.com

13. Use newspaper as an odor absorber.

You can put it in Tupperware, or the crisper bin of your fridge, or in a purse with any lingering leather smells.

Source: realsimple.com

14. Use aspirin to turn hair made green by chlorine back to its natural color.

Dissolve six to eight aspirin pills in a glass of warm water, coat hair with the solution, let it sit for 10 to 15 minutes, then rinse.

Source: www2.pictures.zimbio.com

15. Use a sock to create a big perfect hair bun.

Source: youtube.com

16. Use a spoon to open a sealed-tight jar.

Read more detailed instructions here.

Source: images.teamsugar.com

17. Use a rubber band for perfect French tips.

18. Hang a picture using a pop tab.

The pop tab is surprisingly sturdy.

Source: blog.makezine.com

19. Use VapoRub to train your pets.

Apply VapoRub on things you don't want chewed up or peed on by your cat or dog — they're turned off by the taste and smell.

It also supposedly cures toenail fungus.

Source: kkdevito.files.wordpress.com

20. Use mayonnaise to erase water stains from wooden furniture.

Source: charlesandhudson.com

21. Use fabric softener and vinegar in a spray bottle to release wrinkles from clothing.

22. Use a cereal container as a trash disposal in your car.

Source: i.imgur.com

23. Add a few drops of vodka and a teaspoon of sugar to make cut flowers last longer.

Source: thedailygreen.com

24. Use Alka-Seltzer to clean your toilet.

Drop a couple tablets in, wait 20 minutes. The citric acid will dissolve the grime.

Source: blogcdn.com

25. Use hand sanitizer to dissolve ink stains.

26. Use (unscented) dental floss to cut soft cheeses and cakes.

Source: hecooksshewines.com

27. Pack your shoes in a shower cap to keep the soles from touching your clothes.

Source: realsimple.com

28. Use raw spaghetti strands to light hard-to-reach candle wicks.

Source: realsimple.com

29. Use Earl Grey teabags to get rid of a sunburn.

Read the directions here.

Source: instructables.com

30. Use mustard to suck the pain out of a burn.

But also, don't put your hand on a boiling kettle.

Source: instructables.com

31. Rub the cut edge of cheese with some butter to keep it from getting moldy.

Source: instructables.com

32. Use Scotch tape or nail polish to relieve an insect bite.

Blocking oxygen from getting into the bite will stop the itching.

Source: thaimedicalnews.com

33. Use a blow-dryer on a mirror to clear the steam after a hot shower.

34. Throw baking soda on a burgeoning grease fire.

It works much like a powder fire extinguisher. But don't use water, baking powder or flour, as it's likely to make the fire even bigger.

35. Open a bottle of wine using your shoe.

[dsyoutube v="0CCl17__Hok" h="315" w="420"]

Maybe the most useful thing anyone needs to know, ever.

Source: youtube.com

source:http://www.stumbleupon.com/su/1ZHZN2/www.buzzfeed.com/peggy/35-lifechanging-ways-to-use-everyday-objects/

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Marshawn Lynch Buys Bay Area Mansion

What do you do with the extra cash from a $31 million, four-year contract?

If you’re Seattle Seahawks running back Marshawn Lynch, why not pick up a gorgeous waterfront home near your hometown?

The Oakland native recently bought a $3.6 million home in Richmond, CA. The 7,000-square-foot home sits on 134 feet of bay frontage and has 5 bedrooms and 5.5 baths, according to ProfessionalAthleteHomes.com.

Necessary for any waterfront home, Lynch’s new place also includes a 58-foot-long boat dock. Inside, the house showcases the views through large windows and glass panels. Other features include an elevator, wine cellar and home theater.

Arguable one of the best running backs in the NFL, Lynch was a first-round pick in the 2007 NFL Draft and was picked up in 2010 by the Seahawks, where he turned on his “beast mode” with a 67-yard run in a playoff game against the New Orleans Saints.

source: http://www.zillow.com/blog/2012-10-22/marshawn-lynch-buys-bay-area-mansion/

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10 of the Most Haunted Homes in the US

Creaking floors, inexplicable cold drafts and eerie sounds usually don’t top the list of dream house features.

Unless, of course, we’re talking about dream haunted house features.

It’s October, and we’re forgoing the usual roundup of eye candy in favor of some cobweb-draped places most people wouldn’t dare put a down payment on.

Tales of horror, glimpses of ghosts and a bevy of cobweb decor — it’s all here.

Winchester House

San Jose, CA

Flickr user harshlight

It’s as if original owner Sarah Winchester wanted her home to be haunted. The eccentric widow of William Winchester, founder of Winchester rifles, held nightly seances to gain guidance from spirits and her dead husband for the home’s design. The end result?  A maze-like structure that took 38 years to build and includes twisting and turning hallways, dead ends, secret panels, a window built into a floor, staircases leading to nowhere, doors that open to walls, upside-down columns and rooms built, then intentionally closed off  — all to ward off and confuse evil spirits.

Gardette-LaPrete House

716 Dauphine St, New Orleans LA

flickr user tessconrad

This Greek revival home was the site of the one of the grisliest murders in New Orleans‘ history. A Turkish merchant, renting the home, was buried alive in the backyard and his harem entouragemurdered. Years later, the French Quarter home is still said to be the site of the merchant’s wanderings, and on certain nights, exotic music and incense from ancient parties waft from the home.

Hampton Lillibridge

507 E Saint Julian St, Savannah GA

Google maps

This historic home was moved to its current location in Savannah by a local restoration expert. As work began on the house, workers reported odd noises and a male presence. Early on, they discovered a crypt on the building site half filled with water and covered it.

Despite the rumors of hauntings, the home was finished and was last on the market for $2.2 million in 2011. Although it’s off the market now, there’s no word of a buyer.

LaLaurie House

1140 Royal St, New Orleans LA

Google maps

The LaLaurie House, like many haunted homes, has a pretty horrific backstory. Owned by socialite Madame Delphine LaLaurie and her husband, Dr. Louis LaLaurie, the house was the reported setting for vicious cruelty against the couple’s slaves. Reportedly the slaves were subjected to torturous medical experiments that went on unbeknownst to the New Orleans community until a fire broke out and  neighbors rushing to rescue discovered the gruesome scenes. The LaLauries fled the country due to the backlash, and the home passed through several owners, each who claimed to hear mysterious screams and see apparitions of the tortured slaves.

At one point actor Nicolas Cage owned the home, and while he said he never saw any ghosts, he wasn’t immune to the home’s sinister vibes; he lost the property to foreclosure in 2009.

Whaley House

San Diego, CA

Flickr user snabby

In 1857, an entrepreneurial Thomas Whaley took advantage of a deeply discounted property in San Diego’s Old Town neighborhood that once held the area’s hangings. He tore down the gallows and proceeded to build his Greek Revival brick home. However, soon after Whaley and his family moved in, they reported hearing heavy footsteps moving about the house. Even after the Whaleys moved out, various tenants reported seeing ghosts and hearing the footsteps.

Today the historic home is a museum and is open daily for tourists to see if they too hear and see the ghostly apparitions.

Franklin Castle

4308 Franklin Blvd, Cleveland OH

Flickr user Southerntabitha

Franklin Castle has both a creepy history as well as a creepy exterior. Home to Hannes Tiedemann, the house was reportedly the site of many vicious murders. Built in 1864, the home has all the makings of a haunted mansion: stone tower and turrets, gargoyles and wrought-iron fencing, not to mention sounds of babies crying, doors slamming and footsteps.

According to the property history, the home was last sold for $260,000 in August 2011. No word yet, if the homeowners are having any eerie experiences.

McPike Mansion

Alton, IL

Flickr user Black.Doll

Haunted houses — how about a whole haunted city? Alton claims to be the one of the most haunted areas in America and is home to McPike Mansion, which is host to a number of active ghosts.

There’s no specific backstory to the ghostly going-ons, but visitors and residents of the brick manse have claimed to be hugged by an unseen woman, hear the laughter of children and see mysterious mists and orbs of light. As far as hauntings go, not too sinister.

Borden House

240 2nd St, Fall River MA

Flickr user dbking

This home was the site of one of the most infamous crimes of all time: the murders of Andrew and Abby Borden, reportedly at the hands of Andrew’s daughter Lizzie. As the nursery rhyme goes, Lizzie Borden took an ax and gave both her father and step-mother whacks. However, Lizzie was acquitted and moved out of the home.

The home of the murder still stands in Fall River and operates as a bed-and-breakfast, where guests report seeing Andrew and Abby wandering about.

Myrtles Plantation

Saint Francisville, LA

Wikipedia Commons

An antebellum home in a voodoo-rich area of Louisiana is the likely place for a haunted home. Built in 1796, Myrtles Plantation was taken over in 1808 by Clark Woodruff, his wife, Sara, and their three children. According to legend, Woodruff had a relationship with one of his slaves, Chloe, who was jealous of Woodruff’s wife. Story goes that Chloe baked a birthday cake for Sara and the kids, including poisonous oleander leaves in the treat. Sara and two of their children died. Chloe confessed, but fellow slaves retaliated, hanging Chloe and dumping her body in the Mississippi.

Chloe isn’t the only ghost said to haunt Myrtles Plantation. A Civil War solider was murdered on the steps of the home, and an ancient Native American burial ground is said to beneath the house. All this adds up to a home rich in creepy incidences.

Chambers Mansion

2220 Sacramento St, San Francisco CA

Like most haunted homes, there’s a bit of confusion surrounding the true story behind Chambers Mansion. Built in 1887, the home was named after its first owner, silver mine tycoon Richard Chambers, who lived in the home with two nieces who reportedly hated each other.

When Chambers died in 1901, the nieces inherited the mansion. One reportedly bought the house next door and moved in while the other sister, Claudia, stayed. Claudia was discovered cut in half in the mansion one day, due to a “farm implementation” accident. However, a ghost expert has claimed that Claudia was in fact murdered, and still haunts the Pacific Heights home today.

source: http://www.zillow.com/blog/2012-10-15/10-of-the-most-haunted-homes-in-the-us/

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Zillow Names 20 Best Cities to Trick or Treat in 2012

Listen up all you ghosts, goblins and witches! While you’ve been planning the best Halloween costume ever, the data heads at Zillow took a break from the serious business of tracking housing to crunch numbers with one really, really important thing in mind: candy.

And because hard work always pays off, today we’re announcing the sweet results of the fourth annual Zillow Trick-or-Treat Index, which ranks the top 20 cities around the country to get the best Halloween loot. Also, today through Thursday at 8 a.m. Pacific, we’ll unveil the top five neighborhoods within each of the cities, so make sure you come back and see if your neighborhood made the list. We’ll reveal the best trick-or-treating neighborhoods for the first five cities below.

Behold, the national list.

Neighborhood announcement schedule

Neighborhood ranking

Methodology

There is a common belief that wealthy neighborhoods are the Holy Grail for harvesting the most Halloween candy. However, to provide a more holistic approach to trick-or-treating, the Zillow Trick-or-Treat Index was calculated using four equally weighted data variables: Zillow Home Value Index,population density, Walk Score and local crime data from Relocation Essentials. Based on those variables, the Index represents cities that will provide the most candy, with the least walking and safety risks.

Want to see either our list or map graphics on your website? Just email press@zillow.com, and we’ll be sure to get it to you.

source: http://www.zillow.com/blog/2012-10-15/zillow-names-20-best-cities-to-trick-or-treat-in-2012/

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Massive Inventory Shrinkage Hits First-Time Home Buyers in California

Housing inventory is down — way down in some cases. Data released by Zillow today shows that lower-priced inventory, which is commonly sought by first-time home buyers, has seen steep annual declines.

Around the country, California is showing the largest decline in lower-priced inventory (-42.7 percent). Some of the most eye-popping numbers are out of the San Francisco, Sacramento, Fresno andModesto metro areas, where first-time home buyer inventory fell by more than 50 percent from Sept. 30, 2011, to Sept. 30, 2012.

“First-time home buyers are being squeezed out of the market by falling inventory and the rapid influx of investors looking to buy basic homes to rent out to the growing population of people who have recently been foreclosed upon,” said Stan Humphries, Zillow chief economist. “Investors are paying in cash and can close sooner, which is more favorable to banks and homeowners looking to sell.”

National inventory rates decline, but less dramatically

Nationally, inventory rates have dropped by one-fifth (-19.4 percent) across all homes, with inventory declining the most in higher-priced homes (-22 percent).

In the largest 30 metro areas, inventory across all tiers has fallen the most in the Sacramento (-42.4 percent), San Francisco, (-42.2 percent) and San Diego (-40.7 percent) metros; and has fallen the least in the Cincinnati (-9.5 percent), Portland, OR (-10.8 percent) and St. Louis (-14.5 percent) areas.

For more information, contact press@zillow.com, view the press release, or check out Zillow Real Estate Research.

Coming Friday, ‘California’s Housing Market: Navigating the Post-Bottom Landscape’

Later this week, Zillow and the University of Southern California Lusk Center for Real Estate are hosting a forum in San Francisco entitled, “California’s Housing Market: Navigating the Post-Bottom Landscape.” The forum will feature a distinguished group of speakers and panelists who will discuss and debate the housing market’s “new normal” and whether it is a good time to buy, and take stock of housing-related tax issues including California’s Proposition 13 and the mortgage interest deduction.

A live video webcast of the forum will also be made available Friday at 8 a.m. Pacific:http://www.zillow.com/blog/category/housing-forum/

source: http://www.zillow.com/blog/2012-10-11/massive-inventory-shrinkage-hits-first-time-home-buyers-in-california/

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The Most Dangerous Room in Your Home? The Bathroom

By Graham Wood

Kitchen stoves can spark fires or gas leaks that lead to deadly explosions, and some living room glass tables have been known to spontaneously fracture. Sound scary enough? Well, those aren’t the most dangerous situations you could find inside your home.

The room where you’re most at risk of injury (or even death)? The bathroom.

About 235,000 people age 15 or older are sent to the hospital each year after being injured in a bathroom, according to the Centers for Disease Control and Prevention. More than a third of those injuries happen while bathing or showering, and more than 14 percent happen while using a toilet.

Four out of 5 of those injuries occurred in falls, with 14 percent of those injured needing to be hospitalized as a result.

The leading cause of injury deaths among senior citizens is falling, and in 2008, more than 19,700 seniors died after unintentional falls, according to the CDC.

Common hazards

With bathroom floors becoming slippery after a shower or bath, it’s easy to see why the bathroom can be a dangerous place. However, people ages 15 to 24 were found to be most likely to be injured near a bathtub or shower. People age 85 and older suffer more than half of their bathroom injuries near the toilet.

This summer, a woman in San Diego slipped in a shower, fell out her second-floor bathroom windowand landed at the bottom of a light shaft some 6 to 8 feet below ground level. And last year, rocker Steven Tyler had to call off an Aerosmith concert after he fell in a hotel bathroom and cracked his teeth, requiring emergency dental work.

Preventing injuries

There are various things you can do to prevent bathroom injuries. Grab bars that attach to the wall are a good way to get support when raising yourself from the toilet, for example. Using shower chairs or transfer benches is also a great way to keep from falling on a slippery floor. Transfer benches are wide chairs that allow you to scoot from inside a tub to the outside; some even have sliding seats.

“Having grab bars by the toilet would be helpful for people in their older years, and everyone would benefit from having grab bars both inside the tub or shower and where you get in and out,” Judy A. Stevens, a CDC epidemiologist, told the Mother Nature Network.

source: http://www.zillow.com/blog/2012-10-04/the-most-dangerous-room-in-your-home-the-bathroom/

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Investing? 6 Types of Properties to Pursue

If you’re interested in improving your lot in life — no pun intended — by becoming a property mogul and investing your hard-earned capital into income-producing properties, there are some general guiding principles that should increase your chances of earning wealth.

One of the better ways to improve your wealth is to reduce your risk on the properties you purchase. This will allow you to buy lower-risk real estate, which hopefully will earn a fair amount of wealth for you over time. Go for these:

Properties in very good shape

Too many people buy fixer-uppers thinking they’ll add value by doing a renovation. Then they get mired in a much more expensive and time consuming property than they ever expected. More money into the property means lower investment returns for you and less wealth-building than you expected. Skip fixers and instead buy properties that are in as good shape as possible, which should get those rental checks coming into your bank account in as short a period as possible.

Properties in moderately priced areas with good cash flows

Real estate is all about location, location, location! The properties in the best locations (think beach areas, downtown, wealthy enclaves) generally have very negative cash flows, so those are the location, location, locations you want to avoid. The moderately priced properties in working-class areas are the real gems; they generally have the boring locations, but much better cash flows. Of course pencil out any deal with conservative rents and expenses, and go for beginning year cash on cash return of at least 4 to 6 percent, based on your conservative estimates.

Communities with HOAs in good financial, legal, operational shape

There are many, many landmines in buying properties in common interest developments. And you aren’t just buying your property; you’re buying into a larger entity called the homeowners association (HOA). And if it is in financial, legal or operational trouble, you pay the bills. Make sure to do your due diligence on this — and it’s a lot of hard work to do it properly. Learn what you need to look at way before you go into escrow.

Properties that come with decent credit quality tenants in place

There is nothing better than buying a property with a decent tenant already in place. You get the security deposit and pro-rated rent, and you don’t have to go in and clean, paint, update or fix too many things in the unit. If you buy properties in areas that have decent credit quality tenants, that’s hopefully the type of tenant you will inherit. Also take a look at the current tenant’s lease, credit application and credit report, if you can, before you make the decision to purchase the property.

Properties in low vacancy areas

Vacant units get robbed, incur vandalism and don’t have any rent coming in to cover the bills. If you buy in places with really high vacancy, it might be months or years before you get the property rented out at a fair rental rate. So really think through buying properties in areas with many unoccupied units. Drive around at dinner time: No lights in a lot of neighborhood houses means no one is residing there, and you shouldn’t, either.

Properties you will own a long time

The most important factor in real estate investment property is to own it for a long time — in fact, forever is the optimal ownership horizon. So do your due diligence and buy quality properties that you really like for all the right reasons, and plan to own them for good. That’s your best bet to earn wealth on real estate.

If you buy properties with ALL the above characteristics, that will greatly increase the chances you will add wealth to your nest egg from your real estate ownership. So try to acquire properties that have as many of the above good qualities as possible, and skip the ones that don’t make the cut!

 source: http://www.zillow.com/blog/2012-09-28/investing-6-types-of-properties-to-pursue/

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Short Sale Relief at Risk?

Short sales are growing in popularity, but that may soon change. The “Mortgage Forgiveness Debt Relief Act and Debt Cancellation” is expiring at the end of the year, which could make more home owners think twice about doing a short sale, CNBC reporter Diana Olick reports.

Debt forgiveness with short sales is taxable. But in 2007, Congress passed a law that temporarily relieved that tax burden by making the debt forgiveness from a short sale or a mortgage principal reduction no longer taxable. If the act expires, many in the real estate industry speculate that short sales will drastically decrease.

Many real estate professionals “believe if the legislation is not extended, households who are already struggling to pay their mortgages will be further burdened with tens of thousands of dollars in additional taxes that they probably can’t afford to pay because the IRS would count the cancelled debt as income,” says Jamie Gregory, a lobbyist for the National Association of REALTORS®.

A bipartisan move is under way that could extend the tax relief. The Senate Finance Committee passed a package that included several tax extensions recently, including a one-year mortgage relief extension. The House of Representative is still weighing how to handle the tax extensions, however.

In the first quarter of 2012, more than a quarter of a million short sales were completed, according to data from RealtyTrac. Some analysts speculate that short sales will increase this fall as borrowers and banks rush to complete them before the expiration of the mortgage debt relief act.

Editor's Note: NAR is focusing its efforts on several issues left unfinished by Congress. Extending the Mortgage Cancellation Tax Relief is an urgent priority during the expected “Lame Duck” session of Congress following the election in November.

Source: “Housing Alert: Short Sales May be in Big Trouble,” CNBC (Sept. 28, 2012)

Read More

Key Issue to Watch: Debt Cancellation Relief

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7 Handy Little Items Every First Apartment Needs

Everyone thinks of the big necessities when moving into a new apartment: repainting, buying furniture, getting along with roommates. These are all important, of course, but then there are the little things that really matter in a pinch — tools that you should keep handy in your kitchen drawer for when the need strikes.

You may not be grateful for this list today or tomorrow, but you will be someday. So, be prepared like a good scout. Your local hardware store should carry everything, except the last item.

Screwdriver, hammer and wrench

Realistically, every home should have a small toolbox, but at bare minimum you need this trio of tools. Just think: How will you hang up your framed pictures without a hammer? How will you assemble your IKEA furniture without a screwdriver? How will you adjust your bicycle seat without a wrench? (Warning: Just because you own a wrench doesn’t make you equipped to handle plumbing repairs!)

Tape measure

If you are shopping for furniture, you’ll want to know exactly how much space you have to fit in a bed, couch or dining table. And when you’re hanging pictures, you’ll want to make sure you’re centering them. What miraculous item will allow you to accomplish all of this? Why, a tape measure, of course.

Scissors

Scissors are highly underrated. You can use them to cut open boxes that are shipped to you, cut tags off your new clothes, cut open that irritating plastic vacuum-packed container on the new headphones you bought — in other words, scissors come in handy quite often. Therefore, get a sturdy pair, rather than a flimsy one. They might cost a little more, but they will last you literally decades.

Light bulbs

Say the light burns out in your windowless bathroom. If you have light bulbs in a drawer, you can solve the problem in about 3 seconds. If not, you’ll have to shower in the dark until you can run out and get some bulbs. So get some now, before it becomes an issue.

Calculator

Maybe you can use an app on your phone or your computer, but whatever it is you need some way other than using your head and your rusty grade-school algebra to do math. For example, it’s unlikely you want to do your taxes without a calculator. And will your roommates trust your long division when you split the common expenses with just paper and pencil? Not likely, unless you’re a certified public accountant.

Flashlight

If the power goes out, you’ll be glad you have one. Enough said.

Sewing kit

Let’s say you have a big date, and just before you leave, you pop a critical button. Without a sewing kit, you’ll have to change your entire outfit, or frantically run around looking for a dry cleaner with a tailor. With the proper kit, you can simply sew the button right back on — in about 2 minutes. Which one will it be?

And one final thought: Keep these items in a place where you can find them when the emergency strikes. This is especially true about the flashlight! Don’t let the zombies catch you unprepared. source: http://www.zillow.com/blog/2012-10-01/7-handy-little-items-every-first-apartment-needs/

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Obama: Congress Must Stop "Standing in the Way" of Housing Recovery

During his weekly address on Sept. 29, President Barack Obama warned that it will take more time for the housing market to fully recover if Congress "keeps standing in the way."

He urged Congress to pass a refinancing bill, noting that he sent a plan to lawmakers that would enable homeowners to refinance at lower rates. He said the extra money in home owners' pockets would mean more spending in the overall economy.

However, the measure has stalled in the GOP-controlled House of Representatives.

“In February I sent Congress a plan to give every responsible homeowner the chance to save about $ 3,000 a year on their mortgages by refinancing at lower rates,” Obama said. “There are still millions of Americans who are struggling with their mortgages, even at a time of historically low rates.”

"Obama Calls on Congress to Help Distressed US Homeowners," Live Trading News (Oct. 1, 2012)

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Furniture Prices and 4 Other Costs You Should Negotiate

When we talk about negotiation, we ask two central questions:

How do we do it well? When is it appropriate?

We’ve got No. 1 covered with our start-to-finish negotiating 101 guide for asking for more at work and 11 tips from experts and readers on bargaining at stores and on the phone.

That leaves No. 2: Most of us know we’re supposed to negotiate when it comes to buying a house or a car, but how about at the dry cleaner? Or when we’re on the phone with our cellphone provider?

Hesitate no longer.

Read on for five unexpected costs you should negotiate, and how: Furniture and mattresses

When to negotiate: When it comes to mattresses, always try. Don’t be shy about asking for special deals, such as a price reduction, free shipping or a complimentary box spring. Mattress manufactures set minimum prices that they allow retailers to sell their products at, so a store either has to price them at that minimum or overprice them and negotiate. Most of the larger chains price them at the minimum, so if a store is willing to negotiate, odds are the mattresses are overpriced.

When it comes to other types of furniture, you’ll often have more luck when you can pay in cash or when you’re at a family-owned shop rather than a big chain. Smaller shops mean you can negotiate straight with the owners, rather than dealing with a salesperson who doesn’t have much power to budge.

How: Furniture is often sold at an 80 percent markup, letting stores give the impression that they’re selling cheaply when they host sales — but even during a sale, they’re still usually making a huge margin. So, try to negotiate past the discounted price. If all else fails, SmartMoney suggests, write down the product number: “You might be able to search online for other retailers who sell the same piece at a lower price.” Cable and cellphone bills

When to negotiate: You’ll be most successful if you try to negotiate with your current carrier near the end of your contract, when the company is more desperate to keep you. Remember: It’s far harder to acquire new customers than to keep existing ones. Go into the negotiation after doing competitive research on sites such as Billshrink and Lowermybills to know what new customers are being offered, versus what’s being offered for the plan you have.

How: Here is a nine-step process for negotiating your phone bill, including a sample script for your phone call, and all the same principles apply to negotiating your cable bill. If the first rep you speak with says she can’t do anything for you, ask to speak to someone in the customer cancellation department. That’s where the customer service agents have real power. If you’re transferred to a “retention department,” know you’ve got the upper hand, because that’s the department trained to offer deals to keep you. Medical bills

When to negotiate: When you receive a bill from your doctor or the hospital that doesn’t look quite right or seems much higher than you expected. Did you get charged for something your insurance was supposed to cover? Don’t waste your time if you’re only facing a $25 copay, but if you are looking at a steep bill, it’s worth negotiating. Some doctors will even provide reduced rates if you fill out a hardship waiver. To learn more, ask the billing person at the hospital or your doctor’s office.

How: You can have a go at it yourself by calling your doctor or the hospital directly, though this may be time-consuming, and you may have to persevere through apologies about set-in-stone payment rates, when in fact many rates are flexible. If you call up on your own, just hold firm and explain why you either deserve to pay a lower rate (the billing person messed up, the doctor’s office didn’t sufficiently explain the fees) or why you can’t.

Another option is to use a medical negotiation service, which does all that for you. Generally, these services charge a percentage of your savings, so you don’t have to pay if they don’t get you anything back. Vacation days

When to negotiate: The very best time to negotiate for vacation days is before you start a new job. If your employer can’t give you the salary you want, ask for something other than money, such as more time off. In a market full of pay freezes and tough job-hunting, employers might have more wiggle room because these perks are often less costly to them.

How: According to Jean Baur, senior consultant at Lee Hecht Harrison and author of “Eliminated! Now What? Finding Your Way from Job-Loss Crisis to Career Resilience,” it really has to do with company structure. A hiring manager can’t bring in a middle manager at a higher salary than the senior managers, so asking for a sign-on bonus or additional vacation days may be more successful. It’s often a lot easier to get an extra week of vacation than it is to raise the base salary by $10,000.

Start by researching trends in your field and region, so you have a sense of what perks could be reasonable to expect. Also address how your perk can benefit, or at least not negatively affect, the company. For example, if you want more time off, come up with how your workload will be covered. Gym memberships

When to negotiate: You’ll save the most when your gym offers the biggest promotions, usually around the new year.

As The New York Times puts it, “Gyms … often operate a bit like airlines or car dealerships; people working out next to each other may be paying different rates depending on when they signed up and other factors. Those who sign up in slower seasons or around the new year when the most promotions are offered, for instance, tend to pay less than those who sign up during other times of the year, according to industry sources.”

How: Pamela Kufahl, editor of Club Industry magazine, recommends research as the first step. Look at the websites of the clubs in your area to narrow down your choices, and pay them a visit. While you’re there, ask for a free one- or two-week pass. Once you know where you want to go, ask friends who are members what they pay or check online message boards to find other people’s rates. Also, check with your employer or guidance counselor to see about deals offered through work or school.

Then take that intel to your preferred gym. If you’re quoted a rate higher than what you know other people pay there or what you could pay at a similar gym, Kufahl suggests, “Say ‘hey, my friend was offered this rate two months ago, can you match it?’ or ‘I checked out New York Sports Club, and they are offering this rate, could you match it?’” She also recommends asking about promotional rates coming up and whether the staff can waive initiation fees. If the answer is still no, try asking for other perks instead, like free personal training sessions.

source: http://www.zillow.com/blog/2012-09-27/furniture-prices-and-4-other-costs-you-should-negotiate/

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Exclusive Dream Home Playlist: Songs to Help You Find Your Perfect Home

DATE:SEPTEMBER 27, 2012 | AUTHOR:MADISON SLINKER

 What songs should you listen to while hunting for or even moving into your new home? Here’s a first look at our Dream Home Playlist — a compilation of songs that may inspire, motivate and keep you going during your search for the perfect home. Download and listen to our exclusive Dream Home Playlist on Spotify HERE

1. “Home” by Edward Sharpe & The Magnetic Zeros

2. “Coming Home” by Diddy ft. Dirty Money and Skylar Grey

3. “Home Sweet Home” by The Farm Inc.

4. “Take Me Home Tonight” by Eddie Money

5. “Brighter Than The Sun” by Colbie Caillat

6. “Love Shack” by The B-52′s

7. “Home” by Philip Phillips

8. “Sweet Home Alabama” by Lynyrd Skynyrd

9. “Once In a Lifetime” by Talking Heads

10. “Good Life” by OneRepublic

11. “Brick House” by Commodores

12. “On Top of the World” by Imagine Dragons

13. “Keep Me In Mind” by Zac Brown Band

14. “Take The Long Way Home” by Supertramp

15. “Sweet Home Chicago” from “The Blues Brothers”

16. “Take Me Home, Country Roads” by John Denver

17. “Got to Get You Into My Life” by Earth, Wind & Fire

18. “Signed, Sealed, Delivered (I’m Yours)” by Stevie Wonder

19. “If You Really Want It” by Simpkin Project

20. “Home” by Kimbra

21. “Home Again” by Michael Kiwanuka

22. “Home” by Daughtry

23. “Home Life” by John Mayer

24. “First Day of My Life” by Bright Eyes

25. “Home Sweet Home” by Lady Of The Sunshine

26. “Don’t Stop Believin’” by Journey

Did we miss the perfect song? Let us know your favorites in the comments below.

source:http://www.zillow.com/blog/2012-09-27/exclusive-dream-home-playlist-songs-to-help-you-find-your-perfect-home/