By Susan Johnston:

According to Moving.com, the months between May and August are the most popular for moving in the United States.

Whether it’s down the street or across state lines, no one likes moving. The piles of brown boxes and the hours upon hours of packing can wring a high cost to your wallet — not to mention your sanity. We asked Nancy Giehl and Joan Hobbs, downsizing and relocation experts and authors of Organize Pack Move!: Strategies and Money-Saving Ideas to Simplify Your Move, to share some of their secrets for successful moves.

1. Research your options

If you plan to hire movers, Giehl and Hobbs recommend getting at least three bids and telling each company that you’re receiving other bids. “Do not accept Internet bids or bids over the phone,” adds Giehl. “You cannot get an accurate bid if they can’t see your stuff.” If your move-in dates are flexible, ask if you can negotiate a discount. Also read reviews on sites like Kudzu.com,Yelp.com, and the Better Business Bureau.

If you’re planning to move yourself, then you may want to enlist the help of friends and family members to help you load the truck or watch the children on moving day. But be honest about your physical limitations. As Hobbs points out, “a back injury will cost you significantly more than hiring someone.” Of course, most people opt for a hybrid move (for instance, hiring movers to load and unload the truck but packing themselves or hiring a truck company to transport belongings but loading and unloading themselves).

Every service can be contracted separately so you pay for what you need.

2. Consider extra costs

“When doing a price comparison on different types of moves, don’t forget to factor things like truck fuel and one-way truck rental fees if you are going to do-it-yourself,” says Hobbs. Other oft-forgotten costs include insurance, trash removal, permits for moving trucks that block streets or alley access, and tips for movers. If you need to take unpaid time off from work for a DIY move, then that’s another cost consideration.

Ask potential movers lots of questions so you can accurately compare bids. “Some moving companies charge by the load, others charge an hourly rate based on number of crewmembers—find out,” says Giehl. “If your mover charges by the hour, find out when the clock starts. Some companies start charging from the time they leave their company parking lot, so the distance from your home to their trucks makes a difference.”

3. Give movers an accurate inventory of your stuff

One of the best things you can do to prepare for a move is to clear away clutter: clothes you don’t wear, furniture that won’t fit into your new space, books or movies you’ve long forgotten about (bonus: some of these items can be sold for extra cash or, if in good quality, donated to a charity).

But if you tell movers you’re getting rid of stuff, then make sure you actually sell it or you’ll usually end up paying more than their estimate. “A client told the movers she would be selling several large pieces of furniture,” Hobbs says. “When she couldn’t sell them she decided to keep them. Her moving bill was several thousand dollars over the estimate. She was furious with the movers but it was her fault.”

Since movers typically only see your current residence, be sure to mention any potential issues in your future home, such as winding staircases, narrow streets, or steep hills. “If there are special issues that make unloading significantly longer you will be unpleasantly surprised by your bill,” Giehl says.

4. Be ready for moving day

Lack of preparation costs you money. If you aren’t completely packed, then you could end up paying your movers their hourly rate (often $110 or higher) to pack things you could have done yourself. Or if you aren’t sure where you want furniture to go, you’ll eat up time asking movers to rearrange things. Lack of preparation can also hurt DIYers. “One of the biggest mistakes do-it-yourself packers do is skimp on is preparing boxes properly and packing breakables incorrectly,” says Hobbs. She and Giehl suggest using same-sized boxes, because you can get more in a truck if boxes are a uniform size.

With the right research and preparation, you’ll be ready for a smooth move to your new home.

 

Interest rates are super low these days so whether you're looking to purchase a new home or stay put for a while it may be worth a call to your bank.

Buying?

The average loan payment will decrease about $50 for every .5% the interest rate drops. That's an evening out a month you'll save!

Refinancing?

Don't jump quite yet. There are a few things you'll want to consider first:

• How long do you plan on staying in your home?
• Do you have the cash to pony up for closing costs?
• Do you have enough equity in your home to be able to qualify for a refinance?
• What is the break even point for refinancing your home?

Don't know the answers to these questions (or don't know what these questions are asking)? Let me help you figure it out!

Here's a great article I found on Bankrate.com about the best ways to have your home loan fall through:

Want a lender to delay or even cancel your mortgage closing? Then change your "borrower circumstances" between the day you apply for and the day you close a home loan.

Lenders have gotten stricter in response to the mortgage meltdown. The latest tightening of the screws comes from Fannie Mae. The mortgage titan's Loan Quality Initiative, which went into effect June 1, requires lenders to track "changes in borrower circumstances" between application and closing.

The rules aren't new, but Fannie will enforce them more vigorously. For borrowers, it means certain actions are likely to delay or otherwise mess up a mortgage closing.

"Any change in circumstance could affect and delay a borrower's closing on a transaction," says David Adamo, CEO of Luxury Mortgage of Stamford, Conn.

Following are three things borrowers can do to mess up their next mortgage closing.

Get a new credit card or auto loan

If you want to implode your impending mortgage, get a new credit card or auto loan.

Lenders have long admonished mortgage applicants to avoid getting new credit cards and auto loans while home loans are in underwriting. Fannie's Loan Quality Initiative adds urgency to this request.

For example, picture a borrower who gets a car loan a week before closing on the mortgage. The mortgage lender doesn't know about it. Later, the borrower misses a couple of mortgage payments.

Fannie Mae can look back, discover the undisclosed auto loan and make the lender buy back the bad mortgage. That's a money loser for the lender.

So at the eleventh hour, most lenders check credit for new accounts.

Even merely opening an account -- without charging anything to it -- can be a mistake.

Retailers often offer discounts to customers who apply for store credit, Adamo says. "That is something that most consumers will take advantage of, and even something as benign as that could affect a borrower's ability to close on a mortgage approval."

Charge up credit cards

Charging up credit cards with thousands of dollars' worth of appliances, tools, and yard equipment is another surefire way to much up a closing. It's best to leave those cards alone.

"Don't increase your credit card balances at all. Consider paying cash for everything," says Dan Green, a mortgage planner for Waterstone Mortgage in Cincinnati.

Mortgage approval is based partly on debt-to-income ratio. The lender looks at the borrower's minimum monthly debt payments and compares them to income. If the ratio of debt payments to income is too high, the borrower could be turned down for a mortgage.

Fannie encourages mortgage lenders to recalculate debt-to-income ratios just before closing. If a spending spree sends the debt-to-income ratio too high, the mortgage could be doomed. For this reason, borrowers should wait until after closing the mortgage before buying furniture, a refrigerator or a lawn mower on credit.

Change jobs

Changing jobs is another good way to derail a mortgage before closing. Other potential deal-breakers include staying with a current employer, but switching from a salaried position to one where primary income comes from commissions or bonuses.

"Because the rules about any job change, especially if you go to commission or bonus, usually you need a two-year history," says Bob Walters, chief economist for Quicken Loans. "So if all of a sudden you switch from W-2 to some other kind of compensation, and you don't have the history, a lot of times that income can't be included. So all of a sudden you'll find maybe you don't qualify."

 

I would love to get your feedback on this one. I, of course, have my own opinions on the matter but would love to hear what others think:

The pressure is increasing on Congress to renew the homebuyers tax credits for a third time.

The first $7,500 tax credit was passed in 2008 and required first-time buyers to repay the credit over 15 years. A new months later in 2009, Congress expanded the credit to a maximum of $8,000 that didn't have to be paid back.

At the end of last year, Congress extended the benefit again until April 30 with an extra two months on top of that to close. A new credit of $6,500 was added for move-up buyers, too.

Now representatives of the housing industry are lobbying for another extension.  Some experts, including Mark Zandi, chief economist at Moody's Economy.com, who supported the earlier credits, think the time has come to let it go.

"It's worn out its benefit," he says. "if you extended it again, it isn't going to do much, and what you're doing is providing a tax break to folks who bought anyway."

(Source: The Wall Street Journal, Nick Timiraos - 02/22/2010)

Home Designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don't have lasting value.

"It's all about family togetherness - casual living, entertaining and flexible spaces," says Carol Lavender, president of the Lavender Design Group of San Antonio

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

It seems likely that the US Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.

Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the extension. Spending any more money on the stimulus effort also could stir up a hornets' nest in some circles.

The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucas, a Montana Democrat.

Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)

Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said.

After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”

Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down. 

Also, on Thursday, the House is expected pass legislation to extend the credit through 2010 for people who have been out of the country in the military, intelligence, or foreign services.

Source: The New York Times, Jackie Calmes (10/07/2009)

1. Full Time - Your Realtor needs to be full time; not doing several thing - just in real estate. Real estate is a fickle market and can change on a dime. You need someone on your team that is keeping up with those changes. You need someone who's following the trends, viewing houses, attending seminars and workshops, and generally keeping up to date on the goings on in Kansas City. When someone does not commit fully to real estate it's the ancillary, yet very important, items that tend to be pushed aside.
2. It’s the number of transactions, not years in the business, that’s important – But more is not always better. You want to know how many transactions your Realtor has completed in the last couple of years but if they are a single agent working alone make sure they don’t have too many transactions – you might not get the attention you want and deserve if you’re transaction number six for the month.
3. Website - Check out the Realtor's website and not just the company they work for - See if they have their own website. Technology is such a key part of the real estate business these days. An agent that doesn’t have their own website (and a decent one at that) may not have all the tools they need to market your home to sellers properly.
4. Get the presentation – All agents should come prepared with a listing presentation laying out how they plan to market your home, information about them and their broker, and how the home selling process works. If you don’t automatically receive the presentation from the agent you’re interviewing, ask for it.
5. Have a look around - Did the Realtor look around your home on the inside and outside? Although the area and location of your home does have a large influence in the value of the property so does the home itself (for the good or bad). If you keep your home meticulously maintained – inside and out – it oftentimes has more value then a home that is left in disrepair. Home buyers like to be able to move right in with no work.
6. Were they on time? - Realtors will work on your behalf with lots of contractors and consultants that are just as busy as everyone else. If they don’t show up on time for you (who is interviewing them) do you have confidence that they will be prompted with the inspector, appraiser, and electrician? Late arrival or missed appointments could potentially delay the closing of your home.
7. Solid Stats - Did the Realtor present some solid facts and figures that show why you should use them?
8. Testimonials - Do they have testimonials or referrals that you can follow up on? You will probably have to ask for contact details but all agents should have at least 2 or 3 people that that are more then willing to speak with potential clients about the agent’s services. You should also be able to find testimonials (with no contact info) just about anywhere the agent is present: on their website, the listing presentation information, Facebook, Zillow, Trulia, the list goes on and on – there should be no shortage of praise.
9. Technology – Social media and online is future of the real estate industry. See how much the Realtor understands about new technology; websites, etc. The best way to do this is to do a Google search for the person’s name or company name. You might want to also check the key websites like Twitter, Zillow, Facebook, etc.
10. Commissions – Remember this is a business transaction you are entering into with your Realtor. If you select a Realtor because they were willing to cut their commission what do you think could happen when they are negotiating the sale of your home on your behalf? More often then not, you will get what you pay for.

 

Everyone in real estate has their mind on one thing: What's going to happen on December 1st?

Realtor.org reported yesterday that bills are pending in both the US House and the Senate to extend the current credit - but don't expect to receive more money or for it to be extended to all home buyers - if the bill is extended at all.

If you're still on the fence about purchase your first home now is the time to jump down! To take advantage of the current tax credit you must have closed on your home buy November 30th - but with the Thanksgiving holiday we suggest closing by the middle of November.

Banks and title companies are busier then ever because of this credit so it's taking more then the average 30 days to close on a home. If you add in the 6-8 weeks it could take to see what is available in the market and have an offer excepted you should really start looking now.

Of course, The Heritage Home Team is here to help you throughout the whole process! 

 

As every first time home buyer knows, time is running out to cash in on the Federal Government's First Time Home Buyer's Tax Credit. As I've said before, and will say again-right now, the tax credit is a nice incentive but should not be the only reason you chose to purchase a home. You need to be ready for the commitment: financially, emotionally, and physically.

Here is an article from the Wall Street Journal about an over zealous first time home buyer. He lost sight of the reason to purchase a home and it almost cost him - big.

Remember to use a knowledgable buyer's agent (someone that works for you - not the seller) and know what the property is worth. Homes should not be purchased on PRICE alone - make sure you understand the VALUE of the home. Each person's situation is different, do not force yourself into believing that you are ready for home ownership if you know, deep down, you're not. And when you feel you are ready to purchase a home - give The Heritage Home Team a call!