10 real estate tips for 2013

Real estate has distinct momentum heading into 2013, with demand finally 
starting to catch up with supply and significantly fewer distressed properties 
weighing down the system. As 2012 wound down, the national vacancy rate for 
owned homes had dropped to 1.9 percent from a downturn high of 2.9 percent. 
That's still above the 1.5 percent norm but nevertheless encouraging. The 
ever-optimistic National Association of Realtors predicts a 5 percent rise in 
median existing home prices through 2013, though most forecasters see a more 
modest 3 percent upswing in real estate prices.

Either way, the real estate market is thawing, unless you're living in such 
hard-hit areas as California's Inland Empire or dodgier parts of the Rust Belt. 
With the new year upon us, here are 10 real estate tips to see you through a 
more promising 2013.

Tip 1: Get off the sidelines
For good-credit buyers waiting for the bottom of the market, it has passed, 
but the good news is that home prices and interest rates are still quite low. 
For sellers waiting for market improvements, they're here. Stretch, take a deep 
breath and jump back in the game if your budget allows. The rules have changed a 
bit, however, and lenders want buyers to put a little more skin in the game. So 
expect to make higher down payments than in those pre-bust years. Another 
caution: Sellers will likely find that buyers have a harder time qualifying for 
mortgages.

Tip 2: Screen your buyers
Save your time, and weed out the tire-kickers. Make sure potential buyers are 
preapproved, which means they've already had their credit and employment
checked  thoroughly to determine how much they can borrow. Have your agent call
their  loan officers. Serious borrowers will find this acceptable because it
shows they  are ready to act.

Tip 3: Create a good impression
Most folks start their home searches online these days, so the number of 
murky, drab photos posted on website listings is baffling. Consider hiring 
professional photographers or videographers to create an optimal presentation, 
particularly for high-dollar spreads. Winter exteriors might show sun shining 
off the snow, spring shots could sport blossoms, summer shots ought to spotlight 
that shimmering pool or well-coifed lawn, and fall photos might show vibrant 
leaves. Think vividly, but not deceptively. Shots should accurately reflect the 
depth of rooms. Interiors should show bright, uncluttered spaces and highlight 
the best outdoor views. Remove a few furnishings for your photo session and 
brighten up (or even repaint) dark rooms

Tip 4: Renovate wisely
A thorough remodeling can help seal a deal, but it rarely pays for itself. In 
fact, the average remodeling payback in the past 10 years has dropped from 82 
percent in 2003 to about 57 percent, according to Remodeling magazine. Bringing 
up the rear are added back-up power generators (47.5 percent return) and sunroom 
additions (45.9 percent). Topping the list are steel entry-door replacements
(73  percent return) followed by garage door replacements (71.9 percent). Unless
the  place is a wreck, focus on the small stuff: Sellers routinely underestimate
the  positive impact of simple home improvements such as repainting and minor 
fix-ups, say 3 out of 4 Realtors.

Tip 5: Build your team wisely
Vet the help. This goes for such crucial players as your agent (interview at 
least three), your inspector, appraiser, title company and if applicable, your 
attorney, surveyor or even energy auditor (a good idea if you're buying a large 
home). Look them up at the Better Business Bureau, Angie's List and any of a 
number of websites where service reviews can be found

Tip 6: Don't let the heart lead the head
No clinging to false hopes, please. Win the game of "the price is right" by 
pricing your house correctly from day one. Find a proven, seasoned agent and 
follow his or her lead on listing-price suggestions. Pricing should be based on 
comparable sales, specific neighborhood time-on-the-market trends, an up-to-date 
appraisal and the home's inherent pros and cons. No amount of marketing 
hocus-pocus or staging can overcome a bloated price tag. Cut your price if no 
serious offers emerge in the first 30 to 45 days. It's not 2006 again.

Tip 7: Open your marketing options
Give your agent (or yourself) the green light to creatively market your home 
in varied venues, be they virtual or terra firma. Sellers are tapping into 
Twitter, Facebook, Pinterest, LinkedIn and any number of sites to tickle buying 
bones. Agents and owners are customizing websites and blogs as well. But be 
tactful and imaginative. For example, a blog called "What you'd like about 
living in my town," might cover culture, education and other quality-of-life 
niceties -- followed by a playful pitch for your home, of course. Social media, 
unlike listings on the Multiple Listing Service or newspaper ads, allow for 
quick feedback and Q-and-A. You might also suggest your agent market your home 
to foreigners via overseas property sites or local partners abroad and to 
corporate relocatees.

Tip 8: Run the numbers
Are you really poised to buy? The housing market is improving, but 
that doesn't mean exuberant buyers should write a check and empty their savings 
accounts. Back up a bit and first get a free copy of your credit report, then 
fix any blips to save on higher mortgage interest rates. Break down your 
essential monthly bills and reconcile them against your family income, then use 
an online mortgage calculator to see how much wiggle room you'll have once you 
buy. Remember to factor in closing costs, inspection fees, loan fees, legal fees 
and emergencies. 
 
Tip 9: Work your ground game
You're not just buying brick and mortar, you're buying a neighborhood. 
Consider this short checklist before making your buying decision.

• Do a criminal search, including the ZIP code's crime statistics and the 
  National Sex Offender Public Website at NSOPW.gov.


• Chat up residents about pros and cons of the neighborhoods.


• Visit at different hours; be wary of poorly kept homes and yards, unsavory 
  visitors, traffic and pet noise, industrial or landfill odors, blaring train 
  horns, too-bright lighting, and vacant-but-developable commercial lots.


• Practice your work commute and find mass transit options.


• Research school performance and student-teacher ratios.

Tip 10: Leave nothing to chance
Switch on that stove, run the faucets (including the baths), check the water 
pressure, activate the sprinklers, turn on all the lights, flush the toilets, 
turn on the air conditioning and heat, test the remotes and venture into the 
closets and look for signs of brown splotches or fresh paint for evidence of 
roof leaks. Granted, you might not feel comfortable doing all these at the open 
house, but you certainly can at the final walk-through. Sometimes agents and 
inspectors miss things.