The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2014 shows mortgage applications for new home purchases increased by 2 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 68.8 percent of loan applications, FHA loans composed 16.1 percent, RHS/USDA loans composed 1.5 percent and VA loans composed 13.6 percent. The average loan size for new homes increased from $296,078 in June to $297,253 in July.

The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 433,000 units in July 2014, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

Last week, we talked about powerful negotiation tactics and their impact on getting and keeping clients and why a real estate pro who can negotiate well will see his or her business increase substantially.

This was according to Lee Barrett in Homes.com Secrets of Top Selling Agents webinar, “Negotiate Like You Mean It! Strategies for Win-Win Results Every Time!”, which revealed tips on understanding clients’ needs, understanding the property and understanding the terms that may by negotiable.

Barrett has worked 37 years in real estate and is the current president and owner of Barrett & Co., Inc., operating in the Las Vegas market. The industry vet says the key to a successful client relationship—be it buyer or seller—is to always think of the client’s mindset of “what’s in it for me?” because if you are not reaching those benefits and helping them reposition themselves, it’s not going to help them buy or sell a home.

But even more importantly, he says to successfully represent and satisfy customers, agents must be effective negotiators. 

FSBO [abbr.] – Property that is ‘For Sale By Owner,’ denoting a lack of an agent or broker representative

Ah, FSBOs. Those properties owners insist on selling without the guidance of a professional, often in an attempt to avoid paying a hefty commission. A precarious move, considering the unpredictability of the housing market.

Risks aside, FSBOs present a golden opportunity for agents. Why? There’s a whopping 90 percent chance that FSBOs will end up listing with an agent anyway. That means 9 times out of 10, frustrated owners will reach out to agents in a last ditch effort to get their homes sold. In today’s market, FSBOs might as well be touched by Midas himself. The problem is, most agents have no idea when opportunity may knock. That much uncertainty, coupled with the fact that sellers typically inflate the cost of their homes, can make tapping into FSBOs exceptionally challenging.

As any real estate agent will tell you, the kitchen is the heart of the home. While a messy, overcrowded and tired looking kitchen can be a big turnoff, the following steps will make your kitchen more appealing to prospective buyers.

Make Your Kitchen Functional. Clear the counters as much as possible—completely clear is the best option. Put cooking appliances you don’t often use in storage. Keep drawers clean and organized with only the utensils you need and get a head start on packing by putting everything you want to bring with you in boxes. And while you’re at it, throw away any useless items you come across. Make your move even easier by donating items you never use to a local charity.

Clean It. Go through the fridge and cabinets and throw out all those ingredients you haven’t touched in years. Clean the fridge thoroughly and organize it, and clean all the appliances as well. You may want to consider replacing low-cost items such as toasters, coffee makers and microwaves to give the kitchen a fresh, new look. For cabinets, dust or vacuum up any crumbs that have gathered. Throw away what you don’t need and make sure cabinets are neat and tidy. If you have cabinets that are stuffed with plates, mugs or cooking utensils, either get rid of some stuff or put it in storage for the time being.

With all of the encouragement from celebrity spokespersons like Fred Thompson, Robert Wagner and Henry Winkler, there is a growing awareness of reverse mortgages. The fact is that our population is getting older and more than 25 million homeowners meet the age requirement.

A reverse mortgage will allow homeowners age 62 or older currently living in their home to tap into their equity. The amount available is determined by the borrower’s age, the home’s current value and current interest rates. The loan proceeds can be received in a single, lump-sum or periodic payments. The closing costs can be paid in cash or rolled into the loan amount.

There are no payments on a reverse mortgage but the homeowner is still responsible for property taxes, insurance, maintenance and other home costs.

In an attempt to compare homes, one of the common denominators has been price per square foot. It seems like a fairly, straight forward method but there are differences in the way homes are measured.

The first assumption that has to be made is that the comparable homes are similar in size, location, condition and amenities. Obviously, a variance in any of these things affects the price per square foot which will not give you a fair comparison.

The second critical area is that the square footage is correct. The three most common sources for the square footage are from the builder or original plans, an appraisal or the tax assessor. The problem is that none of sources are infallible and errors can always be made.

Curb appeal is one thing, but healthy green lawns also contribute to the amount of green homeowners might command when selling a home.

A recent post from Grass Seed USA—a national coalition of grass seed farmers and academic turf specialists  (weseedamerica.com)—reveals how homes and homeowners in neighborhoods flush with lush lawns enjoy significant benefits, as do their communities.

According to the site:

• Homeowners with lawns spend more time in their yards and interact more with neighbors - a lush green lawn provides the perfect location for casual community gatherings.
• For communities adjacent to woodland or brush areas, green grass cover can serve as a firebreak. Due to its low fuel value, turfgrass retards wildfires. Lawns also serve as defensible spaces from which firefighters work to protect homes.

A: Seek ownership in a well-maintained building, and pay special attention to the financial health of the condo association. Lax maintenance may be a sign of financial trouble, which could result in higher maintenance fees and problems trying to resale the property later.

Things to consider:

Get a copy of the latest financial statement from the condo association.

Ask the board of directors – which is elected by the unit owners from among themselves – if major repairs or improvements are imminent. If so, find out how much they will cost and whether there is enough money in the reserve to cover them.

1. View the home as a form of recreation, not an investment.

If you buy one, make sure, above all, that this is a house and an area you enjoy. It will be worth the cost if you spend as much time there as possible, put your heart and soul into caring for it or plan to keep the home in the family for future generations.

2. Approach joint property investments carefully.
These types of agreements can start wars even in the warmest families. Set down some rules about the percentages of ownership accorded each party and what rights those percentages confer.

3. Don't buy outside the country.
In other countries, rules about title and ownership are not as clear as they are in the United States. In many countries, you run the risk of your property being ransacked or nationalized. 

4. Research all four seasons before you buy.
It's a good idea to visit the area in which you plan to buy during every season.

The Veterans Administration guarantees home loans for eligible veterans. It is considered an attractive loan because the veteran can purchase the home with no down payment up to specific loan limits and no mortgage insurance. This makes the monthly payment considerably lower.

Let’s assume a buyer wants to purchase a $200,000 home and can get a 4.5% interest mortgage for 30 years.

A FHA loan would require a $7,000 down payment plus $3,377.50 in up-front MIP which can be rolled into the mortgage. The monthly mortgage insurance premium would be $221 per month for a total payment of $1,215.94.