Are you thinking about selling your home this spring? If so, you're likely to have many questions—especially if you've never sold a house before. It's helpful to understand the basics.

Brett Furman, a broker/owner in St. Davids, Pennsylvania suggests asking these four questions every home seller asks:

What makes a house sell? The five biggest factors are price, terms, condition, location and market exposure.

When is the best time to sell? As soon as you decide it is. In order to receive top dollar for your house, it is important to give yourself as much time as possible to get the house ready. More time means more potential buyers have a chance to see your home, ultimately resulting in more offers and more options for you.

REALTORS® know that when you walk into a listing appointment, you must be prepared. Prepared with property knowledge. Prepared with concrete market data. Prepared to impress. You must be sure that your listing presentation educates your soon-to-be clients while connecting with them at the same time. And when you are finished with the presentation, you need to leave something behind…something that reminds them why you are the best REALTOR® to get their property sold.

Creating the ultimate listing package requires a few key elements:

1. Knowledge: It’s always best to walk into a listing appointment prepared. You can search for the property on your MLS to see if there is any history. If you can’t find the property in your MLS, and you have access to public records, you can do a search there to get property information. But what if the seller forgot to mention the Notice of Default they just received during your phone call? No problem. You can access Realtors Property Resource to get distressed information and mortgage data.

2. Concrete Market Data: Some sellers ‘think’ they know how much their house should sell for. Whether they’ve looked at third party sites online, talked to neighbors, received various postcards and flyers in the mail, as REALTORS®, it often becomes critical to convince sellers otherwise.

But convincing a seller of the right list price isn’t just about the property itself, or the ones around it. It’s about the market. Is it a seller’s market? A buyer’s market? Are there many distressed properties in the area? Better to walk in armed with this information.

The share of new single-family home sales purchased with cash rose during the second quarter of 2014, reaching 8.4 percent of sales.

The onset of the housing crisis in 2007 led to a decline in the share of new home sales due to conventional mortgage financing and increases in the shares due to mortgages backed by the FHA and the Department of Veteran’s Affairs (VA), as well as cash purchases.

The second quarter data from the Census Bureau’s Quarterly Sales by Price and Financing indicates that count of cash-based new home sales rose to 10,000 for the quarter, matching a cycle high. During the 2002-2003 period, cash sales made up only 4 percent of purchases. In contrast, cash purchases constitute a considerably larger share of the existing home market – 32 percent of sales in June 2014 for example.

It is worth noting that another measure of cash sales for total new construction from CoreLogic shows a higher level of cash sales than the Census: 17 percent in April 2014.

After a slow start this year, home sales are predicted to play catch up for the remainder of 2014, according to the Freddie Mac U.S. Economic and Housing Market Outlook for July. The report showed mixed data results for the housing recovery as we head into the second half of the year. While sales are predicted to improve, home sales forecast remains at 5.4 million, a slippage of about 2 percent compared to last year. Existing sales are projected to be 3 percent lower, whereas new home sales are projected up by 10 to 15 percent.

The report projects that new housing construction will increase about 14 percent in 2014 compared to 2013. Housing starts for 2014 are forecast to be 1.05 million dwellings with multifamily accounting for about one-third.

"Although the economic news for the first half of 2014 has been bittersweet, there is good news to share as we head into the latter half of summer,” says Frank Nothaft, Freddie Mac vice president and chief economist. “In particular, employment was up by nearly 1.4 million during the first six months and this will bolster household formations, resulting in positive gains most immediately for the rental housing market and then, longer term, for single-family home sales. The multifamily rental market has led the rest of the housing sector into recovery, and about one-third of housing starts in the first quarter were for multifamily rental apartments. There's no question the single-family recovery is moving slowly, but it continues to doggedly press forward and we are cautiously optimistic."

The employment picture has improved, with a net monthly growth of 231,000 nonfarm jobs for the first half of 2014. Stronger employment will translate into more household formations and a pickup in rental housing demand, with future gains for the single-family sales market.

Single-family mortgage originations are down following a lackluster spring home buying season and a sharp drop in refinance. For this reason, the mortgage originations forecast for 2014 was reduced by 6 percent to $1,175 billion.

Freddie Mac expects fixed mortgage rates to rise very gradually during the year in keeping with the Fed's plan to keep interest rates low at this time. Look for the average 30-year fixed mortgage rate to end the year still near historic lows at around 4.4 percent, according to the organization.

For more information, visit FreddieMac.com.

I was recently notified that the Consumer Financial Protection Bureau (CFPB) is issuing guidance to aspiring homeowners regarding mortgage brokers transitioning to what is known as a “mini-correspondent” lender model.

The CFPB is concerned that some mortgage brokers may be shifting to the mini-correspondent model under the mistaken belief that identifying themselves as such would automatically exempt them from important consumer protection rules affecting broker compensation.

Mortgage brokers connect borrowers with lenders who underwrite and fund loans. In contrast, a correspondent lender, as generally understood in the mortgage industry, processes applications, provides legally required disclosures, frequently underwrites the loans, makes the final credit approval decision, funds the loans, and sells them to investors.

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) rose three points to 56 in the second quarter of 2014, regaining the momentum built in 2013. This is the fifth consecutive quarter for an RMI reading above 50.
An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

“With many home owners on better financial footing, home remodeling has become more popular,” says NAHB Remodelers Chair Paul Sullivan, CAPS, CGR, CGP, of Waterville Valley, N.H. “The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market.”

The RMI’s future market conditions index rose to 56 from 52 in the previous quarter, under the strength of an increase in all four of its subcomponents: calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals.

When considering which rooms to renovate in your home, it’s important to keep in mind which upgrades are likely to give you the greatest return on your investment. A recent report by Remodeling magazine indicates the top five projects that recoup the most dollars at resale.

1. Kitchen – The best way to increase your home’s value is to do a complete kitchen renovation. Aside from stainless steel appliances and modern finishes on cabinets and countertops, upgrade the room’s electrical and plumbing systems to get the most bang for your buck.

2. Master bedroom – Whether you choose a full renovation or simple cosmetic changes, updates to a master bedroom are well worth the money. For a master bedroom overhaul, consider adding an en suite bath and fireplace. For smaller improvements, create a sitting area, install double sinks, and add plenty of closet space.

3. Open floor plan – Entertainment areas are a must in today’s homes, so reconfiguring a living space is a wise investment. Removing walls around your kitchen drives an open concept and makes it easy for homeowners to attend to guests.

4. Two-story addition – Although expensive, two-story additions expand square footage; one 2two-story addition can add up to three extra rooms. However, it is often a lengthy project that requires a family to relocate temporarily.

5. Basement – Finished basements add living space, but they will only increase resale value if basements are common in the neighborhood and region. Be sure to carefully consider whether a renovation is right for you.

Source: Bankrate

With the housing market on the rebound, people may be attracted to a career as a real estate agent. Rookie agents can be prone to mistakes, which is why E&O insurance is important for these professionals. The following are some of the most common errors made by inexperienced agents:


1. Failing to keep in touch with clients
One of the most important aspects of the agent-client relationship is communication. If the person buying or selling a home isn't constantly updated on the process, they could feel out of the loop. As a result, even the slightest error could result in the client wanting to recoup damages, because the person wasn't provided with the necessary details to be informed on the process. For this reason, rookie real estate agents need to stay in constant contact with clients, and make them aware of any new developments. Even if it is just a simple text message saying that everything is going well - something is better than nothing.

2. Not earning designations
Continued education is a key factor for all new real estate agents. Many highly respected agents have made a career commitment to obtain advanced industry designations. By taking classes to acquire new skills, agents can become better at their jobs, which, in turn, could reduce the risk of mistakes and lawsuits. Additionally, agents with designations are often chosen by buyers and sellers over ones that don't, so this could be a good move for rookie agents that are learning the specifics of a new industry.

I would always encourage homeowners to step back and consider how other people might describe your home. Are the characteristics in sync?

For a house to truly become a home, our friend Linda Gottlieb, a Connecticut DecorDesigner with Decor&You says it must have a soul that mirrors the authenticity and individuality of the homeowner.

Typically Gottlieb sees people choosing their interior design based on current trends or affordability. But in order to truly create a fulfilling home, she says it's essential to make sure the space embodies its own, original self.

So here are some of her tips and ideas to help create a home that truly reflects your personality:

* Choose Your Hues: Choose interior colors and hues that correspond with your personality. For instance, a very calm and tranquil person may consider using watery colors; an energetic person may want to play with bright tones; while a dramatic, yet sophisticated person can opt for rich, deep shades such as an Eggplant purple or maroon. After you decide on the color schemes, it's key to take a moment and envision yourself living within the realms of those colors.

Mortgage applications increased 2.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 18, 2014.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 15 percent lower than the same week one year ago.

The refinance share of mortgage activity increased to 54.4 percent of total applications, the highest level since March 2014, from 53.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8 percent of total applications.