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“Problems with the title of your  new home can limit your enjoyment and use of the property,” says Frank
Pellegrini, president of .the national trade association of the land title
insurance industry (ALTA). “Only an owner’s title insurance policy fully
protects the homebuyer should a covered title problem arise.”

A title  insurance policy is purchased for a one-time fee at the real estate closing and
lasts for as long as the consumer or their heirs have an interest in the
property. This policy protects consumers against possible hidden title problems
that can include errors or omissions in deeds, mistakes in examining records,
forgery and undisclosed heirs.

“An owner’s policy provides assurance that  your title company will stand behind you — monetarily and with legal defense if
needed — if a covered title problem arises after you buy your home,” says
Pellegrini. “Purchasing a home is often the single largest financial investment
a family can make. Your owner’s title insurance policy can help minimize
potential issues that could impede your property rights.”

Title insurance  industry practices vary due to differences in state law and local real estate
custom. Consumers should ask their settlement agent or real estate agent how the
title insurance industry operates in their area.

Source: www.homeclosing101.org

Reprinted with
permission from RISMedia. ©2013. All rights reserved.

Florida’s Housing Market Continues Positive Trends in February

REGIONAL SPOTLIGHT—Florida’s housing market reported more closed sales, rising median prices, increased pending sales, more new listings and a reduced inventory of homes for sale in February, according to the latest housing data released by Florida REALTORS®.

“Each month brings more positive signs for the state’s housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “For example, February is the 14th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units increased year-over-year, according to Florida REALTORS®’ data.

“Properties are selling more quickly statewide, especially at certain price points – the median days a home is on the market dropped about 15 percent for single-family homes and 10 percent for townhouse-condo units in February. Plus, sellers are receiving more than 92 percent of their original listing price in both the single-family home and townhouse-condo markets.”

Statewide closed sales of existing single-family homes totaled 15,666 in February, up 10.3 percent compared to the year-ago figure, according to data from Florida REALTORS® Industry Data and Analysis department in partnership with local REALTOR® boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales—contracts that are signed but not yet completed or closed—for existing single-family homes last month rose 26.7 percent over the previous February. The statewide median sales price for single-family existing homes last month was $150,000, up 12.8 percent from the previous year.

According to the National Association of REALTORS® (NAR), the national median sales price for existing single-family homes in January 2013 was $174,100, up 12.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in January was $337,040; in Massachusetts, it was $282,500; in Maryland, it was $223,469; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,028 units sold statewide last month, up 7 percent compared to February 2012. Meanwhile, pending sales for townhouse-condos in February increased 14.3 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $115,000, up 21.1 percent over the previous year. NAR reported that the national median existing condo price in January 2013 was $169,600.

The inventory for single-family homes stood at a 5.5-months’ supply in February; inventory for townhouse-condos was at a 6.1-months’ supply, according to Florida Realtors.

“Several things are particularly striking about the February data,” says Florida REALTORS® Chief Economist Dr. John Tuccillo. “First, we note the continuing growth of cash sales, which are now half of existing single-family closed sales statewide and more than three-quarters of townhouse-condo closed sales. Second, we’re seeing more new listings and that trend is turning positive. This is the first sign that low inventories are convincing sellers to come to the market.”

“Third, and related to the last point, the lowest price tiers (for home listings) are just about wiped out and are moving in a direction counter to the state trend,” Tuccillo notes. “The biggest movements in listings as well as the other metrics are in the $300,000-$500,000 price tier.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.53 percent in February 2013, down from the 3.89 percent average during the same month a year earlier.

For more information, visit http://media.floridarealtors.org.

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“Many builders are expressing frustration over being unable to respond to the rising demand for new homes due to difficulties in obtaining construction credit, overly restrictive mortgage lending rules and construction costs that are increasing at a faster pace than appraised values,” says Rick Judson, National Association of Home Builders (NAHB) Chairman and a home builder from Charlotte, N.C. “While sales conditions are generally improving, these challenges are holding back new building and job creation.”

“Supply chains for building materials, developed lots and skilled workers will take some time to re-establish themselves following the recession, and in the meantime builders are feeling squeezed by higher costs and limited availability issues,” explains NAHB Chief Economist David Crowe. “That said, builders’ outlook for the next six months has improved due to the low inventory of for-sale homes, rock bottom mortgage rates and rising consumer confidence.”

Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

While the HMI component gauging current sales conditions declined two points to 45 and the component gauging buyer traffic declined four points to 30 in April, the component gauging sales expectations in the next six months posted a three-point gain to 53 – its highest level since February of 2007.

Looking at three-month moving averages for regional HMI scores, the Northeast was unchanged at 38 in April while the Midwest registered a two-point decline to 45, the South registered a four-point decline to 42 and the West posted a three-point decline to 55.

For more information, visit www.nahb.org. or www.housingeconomics.com.

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Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 0.6 percent to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February, but remain 10.3 percent higher than the 4.46 million-unit pace in March 2012.

Sales have been above year-ago levels for 21 consecutive months, while prices show 13 consecutive months of year-over-year price increases.

Lawrence Yun, NAR chief economist, says there is more demand than supply in the current market. “Buyer traffic is 25 percent above a year ago when we were already seeing notable gains in shopping activity,” he says. “In the same timeframe housing inventories have trended much lower, which is continuing to pressure home prices. The good news is home construction is rising and low mortgage rates are continuing to keep affordability conditions at historically favorable levels. The bad news is that underwriting standards remain excessively tight, while renters are getting squeezed by higher rents.”

Total housing inventory at the end of March increased 1.6 percent to 1.93 million existing homes available for sale, which represents a 4.7-month supply at the current sales pace, up from 4.6 months in February. Listed inventory remains 16.8 percent below a year ago when there was a 6.2-month supply.

“The inventory improvement last month results from a seasonal gain, but conditions continue to broadly favor sellers. We need a housing supply of over 6 months to have a generally balanced market between home buyers and sellers, but it’s unlikely we’ll get there without greater increases in housing construction,” Yun says.

The national median existing-home price for all housing types was $184,300 in March, which is 11.8 percent higher than March 2012. The March increase is the strongest since November 2005 when it rose 12.9 percent from a year earlier, and the last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006.

Distressed homes — foreclosures and short sales — accounted for 21 percent of March sales, down from 25 percent in February and 29 percent in March 2012. Thirteen percent of March sales were foreclosures, and 8 percent were short sales. Foreclosures sold for an average discount of 15 percent below market value in March, while short sales were discounted 13 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.57 percent in March from 3.53 percent in February; it was 3.95 percent in March 2012.

NAR President Gary Thomas says homes are selling much faster. “The typical home sold in March was on the market for one month less than it took to sell a year ago,” he says. “Multiple bidding is becoming more common, and more homes are selling above the asking price, so buyers need to move quickly and follow their REALTOR®’s advice for contingencies when making contract offers.”

The median time on market for all homes was 62 days in March, down from 74 days in February and is 32 percent below 91 days in March 2012. Short sales were on the market for a median of 81 days, while foreclosures typically sold in 46 days and non-distressed homes took 66 days. Thirty-seven percent of all homes sold in March were on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in March, unchanged from February; they were 33 percent in March 2012.

All-cash sales were at 30 percent of transactions in March, down from 32 percent in February; they were 32 percent in March 2012. Individual investors, who account for most cash sales, purchased 19 percent of homes in March, down from 22 percent in February; they were 21 percent in March 2012.

Single-family home sales slipped 0.2 percent to a seasonally adjusted annual rate of 4.32 million in March from 4.33 million in February, but are 9.1 percent above the 3.96 million-unit level in March 2012. The median existing single-family home price was $185,100 in March, up 12.1 percent from a year ago.

Existing condominium and co-op sales fell 3.2 percent to an annualized rate of 600,000 units in March from 620,000 in February, but are 20.0 percent higher than the 500,000-unit pace a year ago. The median existing condo price was $178,900 in March, which is 10.4 percent above March 2012.

Regionally, existing-home sales in the Northeast were unchanged at an annual rate of 630,000 in March and are 6.8 percent above March 2012. The median price in the Northeast was $237,000, up 3.0 percent from a year ago.

Existing-home sales in the Midwest rose 1.8 percent in March to a pace of 1.16 million and are 14.9 percent above a year ago. The median price in the Midwest was $141,800, up 7.8 percent from March 2012.

In the South, existing-home sales slipped 1.5 percent to an annual level of 1.95 million in March but are 12.7 percent above March 2012. The median price in the South was $161,700, which is 10.4 percent above a year ago.

Existing-home sales in the West declined 1.7 percent to a pace of 1.18 million in March but are 4.4 percent above a year ago. With notably constrained inventory conditions, the median price in the West rose to $258,100, up 26.1 percent from March 2012.

For more information, visit www.realtor.org.

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Housing starts were up 47 percent from March 2012 to March 2013, passing 1 million starts for the first time in nearly five years.
The pace of construction job growth has been accelerating in recent months. Over the past year, net construction job growth represented 8 percent of all job gains, while in the last six months it represented 15 percent.

Projecting an increase by $100 billion in refinances in 2014 to account for additional Home Affordable Refinance Program volumes with its extension through 2015.

Projecting residential originations, including single-family and apartments, to be nearly $2 trillion in 2013.

Supported by low mortgage rates, expect total homes built in 2013 to come in at the fastest pace since 2007.

“Until aggregate unemployment decreases substantially we will not experience robust growth. Construction employment is showing signs of life, which should help to improve the overall macroeconomic picture,” says Frank Nothaft, Freddie Mac vice president and chief economist.

“Housing construction is starting to pick up, but is well below historical averages. Supported by low mortgage rates we expect more homes to be built in 2013 than in any year since 2007. This increased construction employment should continue to help bring down the overall unemployment rate.”

Freddie Mac compiles data on major economic, housing and mortgage market indicators and offers forecasts based on those indicators.

For more information, visit www.FreddieMac.com.

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Home inspectors typically arrive 30-45 minutes early to the home inspection appointment so that they are professionally set up and ready to go when you arrive. I can’t tell you how many times I’ve been greeted at the door a half hour before everyone is set to arrive by a person who looks as if they’re freshly out of bed.

If a seller does this, he’s about two hours late for his presentation. On inspection day, the house should be empty of the owners and their presence. In fact, everything should be just like it was on the initial viewing day. Be ready for inspection day by getting up and out of the house an hour before the appointment. The home should also be clean and pets should be removed or crated.

If something isn’t working properly, don’t try to hide it. We will find it. Buyers get very suspicious when sellers deliberately try to conceal defects. They immediately see you as dishonest and wonder what else you’re hiding. It’s not worth losing their confidence over a trivial defect. Just leave a note: “We know about it and we’re getting it fixed.”

In addition, make sure the location of attic and crawlspace hatches are identified and are easily accessible, as home inspectors hate moving your stuff.

If the hatch is in a closet, remove any clothing that is hanging directly under the hatch as well as anything on the floor. Your home inspector doesn’t want to move your smelly sneakers.

It’s also important to check every area of the house for blown light bulbs. This includes the crawlspace, attic, garage and furnace room. We don’t want to waste time determining if a fixture is inoperable or simply has a blown bulb.

Do you have a septic system or a well buried in your yard? If so, make sure you leave a sketch of the locations. There’s nothing worse than a group of contractors, home inspector, buyers and their REALTOR® wandering around a yard needlessly, searching for something you know the exact location of.

Lastly, please don’t leave your dirty laundry in the washing machine or dryer. We have to test these appliances and we don’t want to pull your dirty underwear out of the washer in front of everybody. Also, make sure your oven and stovetop are clear and clean so that we can easily test them without setting off the smoke alarm.

Some of these items may seem like REALTOR® 101, but I’ve noticed over thousands and thousands of home inspections that only the most successful REALTORS® pay attention to these details. Help your seller help themselves—and you—get ready for inspection day.

By David R. Leopold is the owner of Pillar To Post Home Inspection located in Fairfield County, Conn.

For more information, visit www.pillartopost.com.

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“The most important thing you can do is to make your home look welcoming when people drive by,” says Kimber Powell, Realtor and sales manager for Coldwell Banker Mid-America Group in Altoona, Iowa.

“You want to invite them in. Make sure your front door looks nice. Trim and landscape your yard. Accent your entryway with a new doormat and pots of flowers that contrast with the color of your home,” she says.

Follow these tips to position your house for a successful sale:

Enhance curb appeal

A well-maintained house appeals to more buyers and can sell faster and may sell for a higher price, according to Realtor.com.

Maximize your home’s exterior appearance. Keep the lawn and landscaping edged, cut and watered. Inspect doors, windows, trim, foundation and siding for peeling paint. Repaint and replace items as needed. Clean out gutters and replace missing caulk and shingles.

Declutter inside

Make your home look bigger by removing clutter and storing personal items and extra furniture before prospective buyers arrive. Make repairs where needed, Powell advises.

“Repairs are ongoing maintenance needs that show your home has been well-cared-for and kept up-to-date,” she says. “Most potential buyers want turn-key homes that are easy to move into.”

Repaint dingy or stained walls with a neutral shade of paint. Repair cracks or holes in walls, ceilings, tile and woodwork. Replace broken items and consider updating worn-out cabinet knobs, dated curtains and battered bath and kitchen hardware.

Show lifestyle possibilities

Create a lifestyle story to help buyers envision themselves living in your home. Have a small kitchen but a big deck? Focus on outdoor entertaining by adding lights, comfy cushions and showcasing grilling areas, Powell recommends. If you love your neighborhood, highlight a front porch with wicker furniture and window boxes.

“You want to show buyers the ways they can use the entire home and yard,” Powell says. “If you don’t have outdoor furniture or decorations, work with a stager to borrow those items.” Or consider borrowing items from friends or family to get your home staged for sale.

Highlight quality brands

If your home features or you’ve replaced items with high-quality brands, include their names in your home’s sell sheet, Powell says.

“People are very conscious of name brands and high-quality products. They also want to know about energy-saving benefits and warranties that may transfer to them,” she says.

Windows, door replacement

Projects like window and door replacements can recoup more than 70 percent of their cost at resale, according to the National Association of Realtors and Remodeling magazine’s 2013 Remodeling Cost vs. Value Report.

Whether you’re preparing your home to sell, or updating it to live in longer, Pella offers low-maintenance, energy-efficient vinyl, wood, and fiberglass replacement windows and doors that can help improve your home’s curb appeal, and help lower utility bills.

“Stylish exterior doors that look like wood, with the minimal maintenance of fiberglass, are popular replacement options,” says Kathy Krafka Harkema, Pella spokesperson. “Plus, fiberglass offers exceptional energy efficiency, weather resistance and outstanding durability.”

Source: www.pella.com.

Finding the right real estate agent that will work with you is an important first step in the home buying process. This is an important endeavor, and as such, you want to make sure that your personality is compatible with that of your agent. Since you will be working closely on making significant decisions, having an agent who thoroughly understands your goals is paramount. Here are some tips for finding the perfect agent:

• Have your buyer’s agent put you on a daily email drip with your buying criteria so that you are kept informed daily of what is coming to Market. The Market is heating is up, and the property may be gone before you are able to view it.
• Ask your agent about their background and qualifications. Make sure the person you chose to represent you is able to handle the nuances of buying and selling properties.

The next step is to ensure sure you do your research to find the right community for you and your needs. Deciding what type of neighborhood you want to live in is crucial; rural, suburban, or the city? Check out what the surrounding area offers, see what the downtown is like. Is it filled with coffee shops, grocery stores, banks, schools? Learning about the neighborhood of where you are looking to purchase a home is almost as important as picking the home you want to purchase. Here are some tips to help you make the best decision with regard to the neighborhood:

• If you are looking to move in to a specific neighborhood, make sure that the other homes in the neighborhood are consistent in value to what you may be purchasing. It’s always best to be one of the smaller homes in the neighborhood vs. being the largest and most expensive home in the neighborhood.
• It is always good to check with the local police station to see if that area has any recent crime reports. Also, it would be wise to check on line at www.meghanslaw.com to see if there are any sex offenders residing in the area.
• Check the School Ratings in the Town that you are considering buying in. Even if you do not have children in school, when it comes time to sell that home, it will be an important selling factor.

When you have found a property you are interested in, ask any and every question you can think of; no question is too big or too small. You want to make sure that there are no surprises after you close the deal and are ready to move in. Property damage repair, renovations, electrical/heating systems, and foundation are only a few of the areas you should inquire about. Here are some of the very important questions you should always ask:

• Ask to see a copy of the Seller’s Disclosure and a history of any repairs or renovations they have done.
• Ask if there have been any other offers on the property, and if so, have there been any professional inspections performed. If there has, ask what issues may have surfaced from the inspection and have they been corrected?
• Always ask if they have had any water problems in the basement. Telltale signs would be: a musty odor, and in unfinished basements, it is typical to see white lines of effervescence around the foundation, if water problems persist.
• If there is a separate hot water tank, always ask if the seller owns it or is leasing it.
• Ask if there has there ever been an underground oil tank, and if so, ask to see the documentation that it was professionally removed.
• If there has recently been sewer installed in the area, and the home you are interested in currently has septic or has recently connected to the sewer, make sure you ask if there is a remaining, unpaid, sewer betterment, as you may become responsible for that remaining balance.

House hunting can be a lot of fun, if you’ve done your homework. Work with a qualified agent and remember to ask the right questions! With more and more people entering the market, and inventory scarce, it’s important to act quickly. These tips can help save you time and ultimately get you into your dream home more quickly rapidly. Happy Hunting!

“The newest data shows that the outlook is optimistic for the overall real estate recovery,” said Steve Berkowitz, chief executive officer of Move, Inc. “The housing market is a key indicator for the national economy, and things are slowly picking up steam. The next three months will be significant in determining the impact of the recovering housing market.”

A month-over-month inventory increase of 2.36 percent reflects a rise in new property listings since February 2013, but there are drastically fewer homes on the market compared with this time last year (15.22 percent less). While the median age of housing inventory continues to decline year-over-year by 12.35 percent, the amount of time houses are sitting on the market has decreased dramatically by 20 days since February, suggesting that a broad-based housing recovery is beginning to take hold.

A new trend in median list price has emerged in 2013. Since the beginning of the year, a growing number of the 146 markets realtor.com monitors have experienced an increase in list price year-over-year, while the number of markets that have experienced a list price decrease since last year declined. The March data shows that out of the 36 markets that registered a year-over-year decrease in median list price in the month, only six markets had a decline that was more than 5 percent, implying that these markets appear to be within easy striking distance of experiencing house price appreciation in 2013.

California markets continue to show impressive recovery, and Denver, Detroit and Seattle are three new markets showing promising growth. Since March 2011 in Denver, the median age of inventory (a measure of the balance between supply and demand) has dropped from 46 to 24 days. Denver continues to remain in the top five nationally lowest age of inventory as it did in 2011, a testament to its consistent leadership in the housing recovery. In March 2013, Detroit has risen to realtor.com®’s 11th spot nationally in its year-over-year list price increases, ahead of hot California markets such as Stockton and San Diego and one spot below San Francisco. The amount of inventory in Detroit decreased 26.26 percent year-over-year, and the median age of inventory is only 45 days compared with 71 in March 2011. Seattle experienced a dramatic decrease of 40.17 percent in inventory year-over-year, helping to ignite an increase in median list price of 15.9 percent since last year. Seattle also experienced a decrease in median age of inventory of 21.21 percent month-over-month, another indication that new listings are entering the local market.

National Data
• In March, the total number of single-family homes, condos, townhomes and co-ops for sale in the U.S. (1,529,432) increased by 2.36 percent month-over-month. On an annual basis, however, inventory decreased by 15.22 percent.
• The national median list price for single-family homes, condos, townhomes and co-ops ($190,000) increased by .05 percent both year-over-year and month-over-month in March.
• The median age of inventory of for sale listings fell to 78 days in March, down 20.41 percent from February and 12.35 percent below the median age one year ago (March 2012).

Local Data
• California continues to lead the list of the country’s top performing housing markets with largest year-over-year decline in for-sale inventories. Seattle is the only market outside of California in the top 10, and experienced a decline of 40.17 percent in for-sale inventories year-over-year. The 10 markets with the largest year-over-year declines in inventory are Stockton-Lodi, Sacramento, Orange County, Oakland, San Jose, Los Angeles-Long Beach, Ventura, San Diego, Riverside-San Bernardino and Seattle. Of the 146 markets realtor.com monitors, only nine experienced an increase in for-sale inventory.
• On an annual basis, March median list prices were up by 5 percent or more in 52 markets, while only six markets experienced a decline of more than 5 percent. California markets continue to experience the largest median list prices year-over-year, in addition to the Phoenix market. While Detroit and Fresno, Calif., did not make the list of top 10 performers for median list price, both markets did see list prices increase more than 40 percent year-over-year.
• The 10 areas with the longest time on market continued to include the coastal areas of the Carolinas and the resort communities of Santa Fe, N.M., and Asheville, N.C. In addition, four older industrialized areas also appear on the list: Reading, Pa.; Portland, Maine; Albany N.Y.; and Philadelphia. However, with the exceptions of Albany and Philadelphia, the average age of the inventory in the remaining areas is down compared with one year ago.

Realtor.com® regularly tracks real estate data and develops monthly reports featuring the number of listings, median age of inventory and median list price across the U.S. and in specific markets, as well as provides year-over-year and month-over-month changes. These reports are the only ones pulled directly from the realtor.com database, with the majority of listings updated every 15 minutes from more than 800 multiple listing services. For more information on Move, Inc., visit www.move.com or one of its many online real estate properties including realtor.com® at www.realtor.com.