Advice for navigating the 2014 housing market

Reported by CNNMoney, Carla Fried. According to Money magazine’s “Make More in 2014” – How to play the housing market

Advice for Buyers

  • Expect to pay a price for delay – “30-year fixed-rate mortgages are forecast to climb from today’s 4.5% more than 5%.” CNNMoney
  • Link up with fast closers – Speed is now an issue. Work with lenders that are local and have ties with nearby appraisers.
  • Make Credible offers – Don’t low-ball, lead with a good offer, but don’t overpay. Counter offers are extremely less likely when sellers are receiving multiple bids. Good news: final sale prices in bidding war areas are still “typically about 1% below asking.” CNNMoney

Advice for Owners

  • Flexibility for those not yet looking to sell – Rising equity makes it easier to borrow against your property
  • Reasonable remodeling – A cost-vs.-value survey put together by Remodeling Magazine “found that moderate kitchen remodels ($57,500) recouped 69% of their cost, close to what minor jobs paid back. Over-the-top projects ($111,000), though, recouped less than 60%.” CNNMoney
  • Low home-equity rates should be taken advantage of – rates have fallen, but “go with a fixed-rate home-equity loan” if repayment will take several years. CNNMoney

Advice for Sellers

  • Correctly price the first time around – Don’t waste time by “listing too high only to have to wait and lower the price.” CNNMoney
  • Be present for the appraisal – see article for agent recommendations

Please read “Real estate: Look for value in 2014” for details.

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