More Single Women Buying Homes Than Single Men

A few decades ago, a single woman buying real estate on her own was a rarity. Before the Fair Housing Act of 1968, few women could get approved for a credit card, much less a mortgage, without a husband's or father's signature. Now that's all changed. In fact, the National Association of Realtors reports that since the mid-1990s, single women have purchased homes at nearly twice the rate of single men. Last year, single female homeowners made up 18 percent of household composition in the association's Profile of Home Buyers and Sellers, compared to 10 percent for single men.

Julie Cook, a public relations professional in Michigan, recently closed on her first home, a three-bedroom ranch outside Detroit. After living in New York City and paying sky-high rent for a few years, the Detroit native recently moved back to the area and decided to take advantage of more affordable home prices. "At this point, it was a better way to spend my money than putting it into rent," she says. "I might as well get equity." She lived with her parents for three months while she saved money for a down payment and browsed properties with her real estate agent. She secured an FHA loan earlier this year and moved into her new house last month.

Interest rates have begun inching back up in recent weeks, so Cook considers herself lucky to have locked in a low rate even as the closing process dragged on. "The hardest part was the wait," she says. "FHA takes a little bit longer because of the additional layer of policy and law."

Although she originally pictured living in a loft with a convenient downtown location that requires little maintenance, Cook says her real estate agent encouraged her to consider other types of properties. She says she's happy to have found a house with a small, manageable yard in a safe neighborhood. "I'm half a mile from restaurants and culture, and I'm able to ride my bike," she says. "Location was a big part of it."

According to Jessica Lautz, a manager of member survey research at NAR, neighborhood safety is a top consideration for single female homebuyers. "Their second most important factor is convenience to friends and family," she says.

"Location, location, location" may be a common refrain in real estate circles, but clearly it's not the only factor. "[Single women] are a very discriminating buyer," says Karen Krupsaw, vice president of real estate operations at Redfin, a technology-powered real estate company. "I don't think they're unrealistic. They can see beyond the way [a house] may show as well as how they can fix it up and how it can be a dream home."

Recent data from Redfin found that 46 percent of women buying alone said they first evaluate a home based on whether they love it, compared to 24 percent of men buying alone. The remaining 54 percent of women and 76 percent of men evaluate a home based on value and cost.

Cost was a key factor for Cailin Heinze, a veterinary nutritionist and professor at Tufts University who closed on a home in Northborough, Mass., in May. "My rent was already ridiculous for a two-bedroom, and it was going to go up another $200," she says. "I thought, if I buy now, this is probably the lowest interest rate that is probably going to be around for the foreseeable future."

Still, Heinze says she was a bit anxious about putting in an offer and closing on the property because other than her educational costs, this was the most she's ever spent. "It's intimidating to think I will pay this much a month for the next 30 years," she says, "but that's how much I would pay in rent."

Because the average salary for a woman still lags behind men's (the American Association of University Women says women earn 82 cents for every dollar a man makes one year after graduation) and lenders favor two-income households over single earners, Lautz says women are "making the most sacrifices to get into a home, but they're still placing a high value on owning a home of their own."

Despite lower pay, women handle credit more responsibly than men, on average, according to Experian, which reports that men have a 7 percent higher incidence of late mortgage payments and 4.3 percent more debt than women.

Heinze plans to stay in her house for the foreseeable future, but Cook considers her home part of a long-term investment strategy. Cook has a 30-year mortgage with the option to pay it off early with no penalty, so she says she plans to live in the house and pay it off in four to five years before renting it out and moving into "more of a permanent long-term place with ideally a husband, or a boyfriend or whatever happens."

For Heinze, solo homeownership carries a sense of pride. "[I'm] able to have a place that would be truly my own that I could decorate the way I wanted to," she says, "and have some sort of stability."

Author: Susan Johnson, Courtesy of US News and World Report, Image: jillsquills.com

Enchanting in Coventry Park!

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Approach this enchanting home through the inviting gated entry. The traditional home offers elegant sophisticated ambiance with an Old Salem influence. Gorgeous custom shutters & wood & tile flooring throughout. The corner lot & privacy fencing allow you to listen to the birds & enjoy the private back yard from your patio, deck & sun room. The over sized garage includes a storage room. The Home Owners Association beautifully maintains the lawn and shrubbery.

If you want to take a tour, just let me know at 336-682-7653 or sold@pamboyle. We can schedule an appointment at your convenience.

The Rise of the Young Buyer

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  The Wall Street Journal/Michal Czerwonka - Interior designer Matt Winter and his wife Tara drink coffee in the kitchen of their home in Los Angeles, Calif.

Two years ago, when he was 26, Matt Winter paid a little over $1 million for a four-bedroom, Mediterranean-style house in Culver City, an artsy, formerly industrial section of Los Angeles. This month, the now 28-year-old Mr. Winter, who runs his own interior design firm, paid about $1.7 million for his second home, a three-bedroom, Spanish-revival in Westwood, a neighborhood near UCLA. 

"I have always felt that having your money in property is the safest and best thing to do if you want to grow your personal wealth," says Mr. Winter, who founded his design company at 23. None of Mr. Winter's assets are in the stock market—he says the market "spooks him" and that he prefers to invest in real estate. 

Mr. Winter is part of a growing group of wealthy young buyers who are making inroads in the world of high-end real estate, acquiring properties at prices, and at a pace, that brokers say they have never seen before. Real-estate agents say that young people are buying more expensive homes than previously. They are also more likely to buy several properties, and use one as aninvestment. Buying real estate has grown more attractive, these young buyers say, compared with the stock market, which appears riskier to a generation that entered the workforce during a market correction. 

The living room of Matt Winter's home (Michal Czerwonka/The Wall Street Journal)In recent years, low interest rates coupled with lower real-estate prices had also made it easier for people in their 20s and early 30s—whom demographers refer to as "Generation Y" or "millennials"—to buy. 

"In the last two months, half the folks I sold homes to were young entrepreneurial types—and they were all buying homes for over a million dollars," says Michael Rankin, a managing partner at TTR Sotheby's International Realty in Washington, D.C. "A few years ago, that kind of buyer was invisible. We had young folks buying starter condos for a few hundred thousand dollars. But this new wave is skipping that step entirely and going right for the high-end home." 

In March, Mr. Rankin helped broker a deal for Grant Allen, a 34-year-old who works in venture capital and paid $1.1 million for a 2,400-square-foot three-bedroom row house in D.C.'s Logan Circle neighborhood. His 28-year-old fiancée also owns a condo in the city, but in part because of Mr. Rankin's advice the couple decided to keep it as an investment and now rent it out for $3,250 a month. "The stock market has popped lately, but I view it generally with a lot of skepticism," says Mr. Allen, who adds that he has recently reduced his exposure to public equities to about two-thirds of his assets from three-quarters. "These days, I feel like you need to put your money in something that's more of a sure thing." 

While homeownership rates have fallen sharply in the past year among the middle-age, the rate has actually grown among young people aged 25 to 34, according to Census Bureau data. And while the average age of a first-time home buyer has remained relatively constant—at 31—over the past decade, brokers and analysts alike say that the wealthiest 10% of millennials will have a profound effect on the future real-estate market. The spending of this 10% will account for one fifth of all dollars spent on primary-home purchases over the next three years, according to the 2013 Survey of Affluence and Wealth in America, which is conducted annually by American Express Publishing and the Harrison Group, a market research firm. 

And according to a new report issued by the National Association of Realtors, millennials now compose the second-largest group of recent home buyers, making up 28% of the pool. ("Generation X," the age group just slightly older, ranks first.) 

"My generation—we got burned pretty bad by the stock market, we're tired of paying rent, and we don't see any better place to put our money," explains Oren Alexander, a 26-year-old real-estate broker who caters to many young, wealthy buyers. He had about 25% of his assets in thestock market but liquidated them in 2012 to invest in real estate instead. He is in contract to buy his first apartment for $1.5 million, a 1,000-square-foot two-bedroom on the Bowery in downtown Manhattan. 

Some investment professionals caution against the strategy. Andrew O'Daniel, a senior vice president and financial advisor at Morgan Stanley, says home buyers of any age shouldn't look at their primary residence as an investment but rather as a useful necessity, because equities and other assets tend to offer better returns. "If they can make a little money off their home, because of where we are in the real-estate cycle, so be it. That's a nice fringe benefit," he says. "But it shouldn't be the number one objective."

Another factor in the surge: the tech boom. Brokers say many of the young buyers today have made money during the IPOs of technology companies such as Facebook, Google, LinkedIn, or they have profited by starting their own companies. Ken DeLeon, a broker in the San Francisco Bay area, says that he has seen a large shift in recent years among high-end home buyers, with 70% more people under 35 in the mix today than just two years ago. 

Part of that comes as young tech titans, rich in stock, attempt to diversify their portfolios. "We felt that real estate was a much more stable asset class than equities. It also offers tax advantages, which a lot of our friends in tech are looking for these days," says former Facebook executive Rick Armbrust. Now 33, Mr. Armbrust and his wife, Sheila, a litigator, paid $1.2 million for a newly built 2,000-square-foot duplex condominium in Noe Valley about 2½ years ago.

These young techies are often making big real-estate leaps too, jumping from a modest monthly rental to a large home in a single step, rather than purchasing the starter home that was a home-buying hallmark of other generations. "One of my Facebook clients recently moved from an 800-square-foot rental apartment to a 9,000-square-foot home, which they purchased for $7 million," Mr. DeLeon recalls.

Many young buyers are also selecting the most expensive markets in the country, brokers say, skipping modest neighborhoods in favor of the exclusive. Fernanda Vidigal, 33, recently paid $2.2 million for a 2,530-square-foot condominium on Fisher Island, a members-only community in Miami. Ms. Vidigal, who works in finance and lives most of the year in São Paulo plans to spend an additional $1 million to renovate the unit, which has floor-to-ceiling windows that overlook the ocean. "The apartment was cheap for what it is," says Ms. Vidigal. "We got a good value—and moreover, it will be really easy to rent this place once it is renovated." 

At the very high end, some of the most headline-grabbing purchases of the past few years have been made by wealthy young buyers.

Last year, a trust acting on behalf of young Russian heiress Ekaterina Rybolovleva paid $88 million for a penthouse on Central Park West—the largest residential transaction on record inManhattan. Earlier this year, she picked up two Greek islands. The Ecclestone sisters, 20-something daughters of Formula One racing boss Bernie Ecclestone, have spent more than $150 million on properties in London and Beverly Hills over the past few years—and brokers say they may buy more. 

This lavish spending at the high end is in part due to a consolidation of wealth among the global elite, says Jeff Hyland, a top luxury broker in Los Angeles whose firm Hilton & Hyland brokered a deal for the Ecclestone family. "There is so much more wealth today among the superrich," says Mr. Hyland. "More than ever these families need a way to safely and quickly distribute money to their children and to different countries. Real estate is a great answer."

Familial assistance, even at more modest levels, has also boosted the purchasing power of younger buyers, brokers say. Parents are helping their children make purchases more often than ever, these people add, in part because keeping their retirement funds in bonds or money-market accounts yields lower returns than in previous decades.

"I've seen more parents buy homes for their children in the last year than in my whole career," says Jade Mills, a luxury broker in Los Angeles. "It was very unusual 10 years ago. In the last year, I've sold six houses to clients whose parents paid for them."

 Olivia Waldman, a physician assistant in surgery, approached her parents a few years ago about her desire to buy an apartment in Manhattan. To her surprise, they suggested they contribute to the purchase so they could buy a larger place that might be a better investment. They ended up buying a two-bedroom condo on the Upper East Side for $1.15 million in cash. Ms. Waldman, now 33, didn't contribute to the purchase but pays the monthly maintenance fee. "The apartment is much bigger than I personally would have wanted for myself, but it makes a lot of financial sense because it will resell better than a small studio would," she says. 

Many of those parents are baby boomers, who are near retirement age and are also passing along more money to their children than prior generations, according to the study of the wealthiest 10% of Americans conducted by American Express Publishing and the Harrison Group. The study shows that while 24% of millennials have grown up wealthy, only 7% of baby boomers and 9% of Gen X Americans report growing up rich.

"For the first time since the pre-Depression, Gatsby era, we have a generation of kids whose parents made a great deal of money and are giving a great deal of it to their children," says Jim Taylor, vice chairman of the Harrison Group and an author of the study. "Prior to this, very few families had money through inheritance. There is a living wealth transfer currently taking place that this country hasn't seen in decades." 

Real-estate developers say they too have noticed the influx of millennials and are now catering to their preferences. These buyers tend to like new construction, with modern touches such as floor-to-ceiling windows, high ceilings and rooms that flow from indoors to outdoors. They also gravitate toward open floor plans that provide large, fluid spaces for entertaining, rather than separate living and dining rooms.

"These days, we absolutely design with a younger buyer in mind," says Lance Tate, a Los Gatos, Calif.-based developer who builds spec homes. "We try to limit walls as much as we can to create an open floor plan and we avoid any ornate nonsense. We try to build modern and we also put solar on a lot of our homes."

Amenities are another draw, and many luxury buildings have had success luring millennials with the promise of pools, gyms, spas, and basketball courts. 515 East 72nd Street, a 41-story building in Manhattan, has all those features and 326 units that range from $725,000 to more than $12 million. In the last six weeks, managing director for Corcoran Sunshine Elaine Diratz, who oversees sales for the building, says she has sold about seven one-bedroom units to young buyers whose parents have assisted them with the purchase; only six one-bedrooms out of the building's 147 one-bedroom units remain. 

 Kimberly Lucero, who runs sales for the Ritz-Carlton Residences at LA Live in downtown Los Angeles, says she was surprised by the number of young people interested in units at the building. "You think of the Ritz as a more traditional place for the older, affluent crowd." But today almost 15% of the building's residents are millennials, she says. "Our condos have been graduation presents for USC graduates more than once, or gifts to celebrate a kid's first job." 

To attract more young people, Ms. Lucero says she and her sales team upgraded the building's amenities in January, renovating the common areas where she noticed young residents like to entertain their friends. Now, in place of several generic lounges, the building features a sports-watching room with multiple televisions, a wine-tasting room, an entertainment library, a travel library and a daily breakfast buffet, served in a special lounge.

Brokers are also marketing to millennials by advertising through new channels. At 250 Bowery inManhattan, the marketing team turned to social media to promote the building, running renderings of units through filters on Instagram, the photo-sharing site. The 24-unit luxury development sold out within a month when it hit the market late last year.

"The fact that the building was all over Instagram, that definitely made me feel like it was new and chic," says Joseph Hanono, a 29-year-old who runs his own insurance company and is in contract to purchase a 600-square-foot unit in the building for close to $1 million. "I feel like my neighbors there are going to be the kind of people I want to be neighbors with," he adds, "people who make me feel confident that I am building real equity with this apartment, rather than owning some random stock." 

Author: Lauren Schuker Blum, Article courtesy of Wall Street Journal, Images: Wall Street Journal; Write to Lauren Schuker Blum at Lauren.Schuker@wsj.com 

Questions To Ask Your Home Inspector Before Buying Your Home

Imagine how frustrated you'd be to find out that the hot water heater wasn't working - in the middle of your very first shower in your new home!

This, among other very good reasons, is why you should have a home inspection before you buy your home.

When you buy a home, you need to know exactly what you're buying.

A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.

What Does Your Inspection Cover?

Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the home.

If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.

Are You Licensed Or Certified?

If you live in a state that licenses home inspectors, ask to see their license. Most reputable home inspection professionals provide this information right at the start of your home inspection.

At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.

What Kind Of Report Will You Give Me?

You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection.

Many even take digital color photos of any issues with the home in order to make their report as clear as possible. Make sure the inspector will be available to explain anything on the report that doesn't make sense to you.

Will I Be Able To Attend The Inspection?

If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairs you or the seller will have to make.

Please feel free to contact your trusted real estate professional today to answer this and any other question you have on the home buying process.

CHARMING IN CLEMMONS!

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Delightfully remodeled home in a quiet charming Clemmons neighborhood. The tranquil living room features stone fireplace and vaulted ceilings with beam accents. Recent updates include heat pump, deck, "smart device" thermostat, gutters, siding, roof, ductwork, and landscaping. Enjoy your favorite beverage on the deck overlooking large, private, fenced back yard. The charming rustic wired "party barn" or play house features tin roof and wraparound porch. Double carport with great storage.

If you want to take a tour, just let me know at 336-682-7653 or sold@pamboyle. We can schedule an appointment at your convenience.

Where is Pam this Sunday? She is planning an Open House on August 4th, from 2-4pm in Winston-Salem, NC!

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Pristine condition decor high lite this updated 1-level home. Features include: tile & laminate wood flooring, solid surface counters in kitchen & baths, gas log fireplace, stainless appliances, upgraded carpet, french doors from living room to dining room. Enjoy the largest lot in the neighborhood with large patio & beautiful foliage from all views with rose bushes outside the master bedroom window. Private cul-de-sac. Convenient access to I40 & Highway 421.

If you want to take a tour, just let me know at 336-682-7653 or sold@pamboyle. We can schedule an appointment at your convenience.

Five “Passé” Home Trends Make a Major Comeback

Avocado-colored appliances and shag carpet were probably a few home trends you happily filed

under the label “done.” And they may be. But plenty of looks once considered passé are making a huge comeback in homes. They’re features buyers covet and sellers are incorporating in their properties. And New York Modern Spaces luxury realtor Bari Lynn, who also has an extensive background in interior design, walks us through her top five in the accompanying video.
 
1. Old stuff...but with a twist. The look is mixing old with new. For a long-time, Lynn says people were clamoring for sleek and modern home furnishings. She says that is done. Now everyone wants vintage pieces and reclaimed wood looks mixed with modern pieces. At retail, Lynn says Restoration Hardware has become the destination.

2. Industrial fixtures and sinks. These fixtures look plucked out of an early 20th century factory or a restaurant kitchen. The sinks are more functional than their modern predecessors and you can get the look from somewhere as pedestrian as Home Depot (HD). Check out the video for examples of the look.

3. Shaker-style cabinets. These cabinets were considered “out” as they channeled the “farmhouse.” But new versions have a sleeker look and have replaced high-gloss minimalist cabinets in today’s cool kitchens. (Check out the video if you don’t know what we’re talking about.)

4. Subway tile. This is literally the tile they use in New York subways. It debuted in theseunderground train stations in the early 1900s and became popular in pre-war homes at the time, according to This Old House magazine. It’s basic, durable and cheap. And now, it’s even cool again. You can buy it at Lowe’s (LOW) starting at under $1 a square foot. Ditch the decorative tile and put the money you’re saving toward a splurge elsewhere.

5. Wallpaper. This isn’t your grandma’s wall covering. We’re talking faux brick veneers and wood wallpaper that looks like the real thing. There is even wallpaper for renters. Lynn recommends Tempaper, which allows you to get the look without losing your security deposit.

Article courtesy of Destination Home, Image: activerain.com

NEW PRICE ON THIS GREAT HOME IN LEXINGTON NC!

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Wonderful 4 bedroom, 2.5 bath home in great neighborhood on cul-de-sac. Hardwood floors throughout main level. Master suite with wood floors, tray ceilings, and his and hers closets. Cathedral ceilings in living room. Spacious kitchen remodeled in 2013 offering an abundance of cabinet space and includes a breakfast area and island. Main level office with French doors. Great patio and beautiful landscaping overlooking .94 acre lot. Tremendous amount of space in unfinished basement. New fixtures and repainted throughout.

If you want to take a tour, just let me know at 336-682-7653 or sold@pamboyle. We can schedule an appointment at your convenience.

What's Ahead For Mortgage Rates This Week -- July 29, 2013

Last week brought a mixed bag of economic news, but most notably, average mortgage rates fell.

New home sales surpassed expectations and consumer sentiment rose for July; these readings among others suggest that the economy continued to improve and that consumer confidence in the economy improved as well.

Monday: Existing home sales in June were reported at 5.08 million on a seasonally-adjusted annual basis. While this fell short of expectations of 5.25 million existing homes sold, the expectation was based on the original reading of 5.18 million existing homes sold for May; this was later revised to 5.14 million homes existing homes sold in May.

Tuesday: FHFA reported that May prices for homes with mortgages held by Fannie Mae or Freddie Mac remained consistent with April's reading of a 7.30 percent increase on a seasonally adjusted annual basis. Home prices rose by 0.70 percent in May as compared to April's revised reading of 0.50 percent. 

Wednesday: The U.S. Census Bureau revealed that June sales of new homes came in at 497,000, which surpassed both expectations of 483,000 new homes sold and May's reading of 449,000 new homes sold.

Thursday: Freddie Mac reported that mortgage rates fell last week; the average rate for a 30-year fixed rate mortgage fell by six basis points to 3.31 percent with 0.8 percent in discount points.

The average rate for a 15-year mortgage was 3.39 percent with discount points of 0.8 percent as compared to last week's report of 3.41 percent. Average rates for a 5/1 adjustable rate mortgage dropped by one basis point from 3.17 percent to 3.16 percent; discount points moved from 0.60 percent to 0.70 percent.

In other economic news, June's report for Durable Goods Orders nearly doubled to 4.20 percent over expectations of 2.30 percent.

Friday: Consumer Sentiment for July rose to 85.1 as compared to expectations of 84.0 and June's reading of 83.90 percent. That consumers continued gaining confidence in the economy could indicate that more would-be home buyers will become active homebuyers seeking to buy amidst a short inventory of available homes. 

This Week's Busy Economic Calendar

Readings for several significant economic and housing related indicators will be released this week.

Pending Home Sales are due out today; Tuesday brings the Case-Shiller Home Price Index and the Consumer Confidence Index. Wednesday's news includes the ADP report (useful for tracking private sector job growth) and an FOMC statement after its meeting ends.

Fed Chairman Ben Bernanke is also scheduled to give a press conference Wednesday. As always, any remarks concerning projected changes to the Fed's quantitative easing program (QE) could impact financial markets and mortgage rates. 

On Thursday, construction spending data will be released in addition to Freddie Mac's weekly report on average mortgage rates.

Friday's news includes several employment-related reports. The monthly Non-Farm Payrolls and Unemployment report will be released; collectively these two reports are frequently called the Jobs Report.

Data on personal income and consumer spending will round out the week's economic news.

Should You Sell a House Under the Radar?

Pocket listings might be the hottest controversy in real estate today. That's because many home sellers are attracted to the perceived benefits of selling a house outside of the brokers' multiple-listing service, or MLS. But the practice has some significant downsides for sellers as well.

Traditionally, the term "pocket listing" referred to a situation in which a property seller and real estate broker signed a listing agreement that allowed the broker to offer the property for sale, but keep the information out of the MLS and, figuratively, keep the information in his or her pocket. Nowadays, the term is sometimes used more broadly to refer to properties that are offered for sale without a listing agreement or use of the MLS.

Privacy or price?

A pocket listing can be attractive to sellers because it potentially offers greater privacy, convenience and flexibility than an MLS listing, according to Alexander Clark, an agent at Zephyr Real Estate in San Francisco, and founder of PocketListings.net, a website that promotes pocket listings.

"Most of the people who go the pocket listing route do so because of privacy. That's why a lot of movie stars, wealthy people and high-profile people sell their property without sharing it on the multiple-listing service," Clark says.

A pocket listing also can allow sellers time to repair and stage their property, resolve personal concerns they may have about selling their home and even price-test the market before they commit to a sale, explains Wendy Furth, a Realtor and assistant manager at Rodeo Realty in Calabasas, Calif.

"One reason a seller might want to stay as a pocket is because they figure (the broker) can just fish for buyers. It's perceived as being no-muss, no-fuss, no for-sale sign, no open houses, just find a buyer," she says.

The main reason for not doing a pocket listing

The downside -- and it's a big one -- is that a pocket listing loses exposure to other real estate brokers, and oftentimes the public. MLS exposure can mean multiple offers, a bidding war, a higher price, more attractive terms or a buyer who's better positioned to close the deal.

"The more people who see the house, the higher the price will go," Furth says. "By having it be a pocket listing, no one will know anything about it. That's a great way to not have a huge audience for the property."

Commission savings

Still, sellers might be tempted by the lower commission brokers typically accept for a pocket listing. Rather than 5 percent or 6 percent of the sale price, the seller might pay something more like 4 percent. However, remember that commissions are always negotiable.

A lower commission for a pocket listing might seem like a considerable saving for the seller, but it's the broker who stands to reap more benefit, says Douglas R. Miller, an attorney and executive director of Consumer Advocates in American Real Estate, a nonprofit group in Navarre, Minn., that seeks to educate consumers about conflicts of interest in real estate.

That's because brokers typically split commissions between the seller's side and the buyer's side of the transaction. A pocket listing means the seller's broker is more likely to retain the full amount, rather than a portion. Sure, 4 percent is less than 5 percent or 6 percent, but it's also more than 2 percent or 3 percent.

Miller takes an especially dim view of pocket listings, which he describes as "self-serving," "self-dealing" and "one of the worst business practices in residential real estate." He says these deals don't work out financially for sellers because what's saved in a lower commission might well be lost -- and then some -- in a lower price.

Is anyone looking?

Miller disagrees with the notion, espoused by some brokers, that other marketing strategies can make up for keeping a listing out of the MLS and even nab a higher price.

"Social media? Exclusive website? Who cares, if no one is looking in those places to buy homes? They aren't," he says. "The first thing sellers should be demanding of their broker is a marketing plan that includes not only the MLS, but also the top buyer-frequented national websites."

Assess the broker's motives

The bottom line is that homeowners should be wary of any hard push to offer their home as apocket listing, potentially giving one broker control over both sides of the transaction and a good shot at what's known in the real estate business as a "double end" or "double pop" commission.

"If someone is coming up to you to try to get a pocket listing, you have to ask, 'What are your intentions? Are you going to offer compensation, commission, to another agent if they bring a buyer? Are we going to sign a listing agreement?'" Clark says. "If they want to say, 'If I find you a buyer, will you pay me this amount and not sign anything?' Then watch out."

Author: Marcie Gaffner, Article courtesy of Yahoo! Finance, Image: prlog.org

Home Repairs to Do Before You Refinance

Property values have come roaring back. Many can now refinance their loans by virtue of having additional home equity. And increased property values can also put homeowners in a better financial

position to sell their home without entering short sale territory. But the fact remains: Everyone wants to attain maximum value for their real estate and home repairs can help.

So what’s the best barometer of a home’s true worth? Simple: the amount a ready, willing and able buyer is willing to pay at any given point in time. Unfortunately, appraisal estimates can be skewed, especially when not all the home repairs and improvements are taken into consideration. This is why you should weigh all home improvement decisions carefully before you commit.

When You’re Refinancing

Unlike in years past, the weight of an appraisal to determine the home value for the purposes ofrefinancing a mortgage is based upon the facts (which are primarily based on other homes that have sold) and what the property description is.

Improvements that may help a refinance valuation:

• Additional bedroom or bathroom
• Addition to the lot size
• Addition to the garage
• Improvement that expands the “use” of the home

When it comes to improvements such as landscaping, painting, any home improvement more “cosmetic” in nature, realize that the primary benefit is for the enjoyment of the property, not for trying to influence value.

When Selling

A home buyer is going to take into consideration all of the facts associated with the property, location, lot size, square footage, bedrooms and bathrooms, as well as additional cosmetic improvements that have been done that add to the look and feel of the home.

Improvements that may help a sale price:

• New paint job
• Freshly maintained landscaping
• Remodeled and/or upgraded interior
• Deck and/or patio addition
• Additional bedroom or bathroom
• Addition to the lot size
• Addition to the garage

What’s the Biggest Bang for Your Buck?

These include the high-ticket items that increase square footage. An additional bedroom or an additional bathroom increases the square footage, which in turn allows an appraiser to make higher adjustments when determining valuation against other comparable homes around the subject property.

Refinancing
Let’s say you have funds ready for possibly improving your home for long-term enjoyment. Instead of using the funds to make home improvements in an attempt to enjoy your home more, you might actually see a greater benefit if you used that money toward a refinance. Over time, the money you save from refinancing could then be put toward those home improvements down the road.

Selling in the Near Future

Typically, you won’t get a dollar-for-dollar recapture on the home improvement cost, even when selling. Because the weight is given to improvements that expand the use of the house (i.e. bedroom, bathrooms, etc.), it’s more common to expect 20 cents on the dollar, or maybe 30 cents on the dollar, depending on the improvement in such a scenario. Because the market is the strongest indicator of price, the market will dictate sales price followed by additional improvements and subsequent marketing of the home.

Author: Scott Sheldon,  Article courtesy of Credit.com, Image: clearcorpsdetroit.org

What Should You To Do In Advance To Prepare For Your Mortgage Application

According to mortgage experts, it is a good idea to gather up all of the needed documents in advance before launching your house hunt, as this will make the application process a lot easier.

The housing burst has resulted in much harder lending standards, which means that it could possible take weeks or sometimes even months to secure a loan.

Here are a few important steps that you should take in advance

Consider What You Can Really Afford

Before you start the entire house hunting and mortgage application process, you should consider what you can really afford to buy.

It might be tempting to buy a house at the upper end of your price range, but consider the fact that it will be more of a struggle to make your mortgage payments and it will take much longer to pay down the mortgage. Assess your finances and be honest with yourself.

Buying a home that is more comfortably within your price range will ensure that you can easily manage your monthly budget over the years.

Save Up A Down Payment

The bank will want to see that you are able to make a down payment of at least 20% of the value of the home.

In order to save up this amount of money, it will be easier if you start in advance and save a small amount every month. The more you can pay for a down payment, the less your mortgage will be and the more money you will save over the length of the loan.

Do Your Research

Take your time to do lots of research in advance and seek out impartial advice on the mortgage market. There are so many options to choose from and a lot to consider, so the more knowledge you have the more prepared you are to make an informed decision.

Consider Your Credit

Before applying for a mortgage loan, you should take a look at your credit report.

Your lender will look at it when you are making an application and they will use it to consider whether or not to offer you the loan and what type of interest rate to give you. If you spot any errors or issues with the credit report, it is a good idea to get them fixed now before you apply.

These are just a few things to consider before applying for a mortgage. To find out more about mortgages or buying a home, contact your trusted mortgage professional today.

How Well Do You Know Your State?

You may not use them in every day conversation, but every state has interesting facts that are just fun to know. Here in the Carolinas, we have plenty of interesting facts to learn. Did you know that we have a city where fire trucks aren’t red, that the oldest family owned soft drink company is here, our seventh largest city in North Carolina isn’t a city at all, and that South Carolina only has one remaining covered bridge?

Below is a list of some of my favorite Carolina facts that may help you one day win a Carolina trivia game.

1. Asheboro, NC - The North Carolina Zoo in Asheboro is the nation’s largest walk-through, natural habitat zoo. It touts an impressive 1,100 North American and African animals and 41,000 plants from two continents.
2. Ballantyne, NC - Four 30-foot statues, done by sculptor Boris Tomic, mark the central crossroads of Ballantyne. They represent Charlotte’s history with transportation, technology, finance, and the human spirit.
3. Chapel Hill, NC – Fire trucks in Chapel Hill aren’t red. They’re Carolina Blue, an homage to the North Carolina Tar Heels.
4. Davidson, NC – In 2013, Davidson won the North Carolina Chapter of the American Planning Association’s Great Main Street” Award.
5. Fort Mill, SC – Fort Mill was the home of Elliott White Springs, WW1 flying ace, author, industrialist and a member of the South Carolina Hall of Fame.
6. Greenville, SC – Built in 1909, Campbell’s Covered Bridge in Greenville County is the last remaining covered bridge in South Carolina.
7. Lake Wylie, SC – Lake Wylie is a man-made lake located in North Carolina and South Carolina. The lake covers a surface area of about 13,400 acres has 325 miles of shore line.
8. Salisbury, NC – Cheerwine has been produced in Salisbury since 1917 by the Carolina Beverage Corporation, “the oldest continuing soft drink company still run by the same family”.
9. University City, NC - If University City were separated from Charlotte, it would be the seventh largest city in North Carolina.
10. Winston-Salem, NC – Krispy Kreme started in Winston-Salem in 1937. Back then you could buy a dozen doughnuts for a quarter.

 By Regina Walter (Director of Client Relations)

How To Bring More Natural Light Into Your Home

One of the biggest improvements that you can make to your home is to bring in more natural light.

Sunlight is a powerful mood enhancer and a home design that brings in a lot of natural light will automatically look and feel much more pleasant. Not only will it boost your mood, bringing in natural light will also increase the value of your home.

So how can you shed some light on your home's interior?

Here are a few ways:

Add More Reflective Surfaces

Whenever you add a light and reflective surface to your home, you increase the number of times that daylight bounces around inside the room.

Try painting your ceilings and walls with light or off-white colours. Matte finishes are actually better than glossy surfaces, as they reflect light in all directions at once. Add some metal accents and some mirrors to the space, which will also reflect the light.

Move Your Furniture Around

Do you have furniture that is blocking natural light from coming in? Move your furniture away from the windows so that it will not get in the way of the sunlight streaming into your home.

Add A Glass Door

Is there anywhere in your home where you can exchange a solid door for one with glass in its design? This will allow the light to flow through the doorway and increase the feeling of brightness in your home.

There are plenty of glass doors with superb security features, so they will be just as safe as any other door. Also, if you have a yard or a patio to look out on, adding sliding glass doors will be a great way to let the light in and enjoy the view.

Expand Your Windows

Is it possible to increase the size of any of your windows? If yes, the windows on the south side of the house, will bring a significant amount of sunshine into the home.

Add A Skylight

Adding skylights to your home will bring a lot of natural light into the interior. Also, they are much more private than windows because anyone passing by will not be able to see through them. They also add overhead lighting, so that you will not need to use electricity during daylight hours.

These are just a few ways that you can let the sunshine in and bring more natural light into your home.

If you have any other home questions, please contact your trusted real estate professional today.

Don’t Worry; Be Happy!

When Monday morning rolls around do you just want to hit the snooze button? Is the best part of your workweek the end of it? Perhaps it’s time for a change!

Forbes magazine annually features a study conducted by Careerbliss.com. Over 65,000 people participate and rate the level of happiness in 5 categories to determine the Ten Most Happy & Unhappy jobs in America. No, rock stars didn’t make the list nor did fashion models, but instead, real estate agents were number one!

Why you may ask, are real estate agents so happy? There are many reasons, but it could be because:

• Realtors® don’t punch a clock; they determine their own hours.
• Every day is different, so boredom is not an issue.
• Real estate agents are truly helping people with the service they provide.
• The potential to earn a great income exists.
• Realtors® are not confined to a cubicle, their office can exist anywhere.
• The expense to get started is minimal, and doesn’t require a student loan.
• Real estate agents are in control of their career.

Maybe it’s time you stopped worrying and started being happy! Join the one million+ Realtors® who are happy to come to work each day.

 By: Barbara O’Rourke (Director of Career Development) – Guest Blogger

Existing Home Sales: Second Highest Level Since 2009

According to the National Association of REALTORS®, national sales of existing homes in June came in at 5.08 million.

June's reading was reported to be the second highest since November of 2009; this should calm concerns about a lapsing recovery in housing markets.

Summer typically produces the highest prices for existing homes sold, as families seeking larger homes frequently move during summer months.

The June inventory of existing homes improved by 1.90 percent to 2.19 million homes or a 5.20 month supply. June's number of available homes was 7.60 percent lower than in June 2012.

The shortage of available homes has been causing buyers to turn from existing homes to new homes in areas where both available homes and/or land for new construction are in short supply.

Average Home Prices Continue Their Climb Nationally

So the news of more existing homes for sale is good news for home buyers and housing markets that have been held back by an excess of buyers seeking a short supply of available homes.

NAR chief economist Lawrence Yun noted that inventories of existing homes are expected to "broadly favor sellers and contribute to above-normal price growth."

This trend was supported by June's national average price for existing homes at $214,200, which represented a year-over-year increase of 13.5 percent. Rising home prices and mortgage rates continue creating financial challenges for first-time buyers and others seeking affordable home prices and mortgage loans.

Distressed home sales were down from 18 percent in May to 15 percent in June; this is the lowest market share since tracking began in 2008. June sales of distressed homes were significantly lower than in June 2012's reading of 26 percent of existing homes sold.

The National Association of REALTORS® noted that falling levels of distressed sales are contributing to higher prices for existing homes.

FHFA Reports Home Prices Rise In May

The Federal Housing Finance Agency (FHFA) reported Tuesday that prices for homes financed by Fannie Mae and Freddie Mac rose by 0.70 percent in May as compared to April's downwardly revised 0.50 percent increase in home prices.

According to the FHFA Housing Price Index (HMI), home prices were up by 7.30 percent year-over-year in May, and are roughly equal to home prices reported for January 2005. May's home prices remained 11.20 percent below peak prices reported in April 2007.

May's FHFA data demonstrated steady growth of home prices for all nine census divisions on a year-over-year basis with home prices increasing from 2.70 percent to 15.80 percent in May.