You’ve finally decided that now is the time for you to jump into the housing market! Perhaps you’ve done the math and want to take advantage of historically low interest rates and high levels of affordability. Maybe you have a new family that is quickly outgrowing your little rental. No matter the reason, buying real estate is a big responsibility.

There are several rookie mistakes that many first-time home buyers can make. Keep reading for how to avoid them!

First, first-timers underestimate the importance of finding the right real estate agent. Not all agents are equal. Not only do their experience levels and commission rates vary widely, but every agent has their own unique personality. You want to be sure you find an agent that you feel comfortable with and that you respect.

In order to find the best fit agent for your needs set up several interviews with local agents. Ask them about their business. Do they have a cell number where you can reach them? Do they web conference on days you can’t meet? How often do they send prospective homes to buyers? Be sure to ask for testimonials and references. Finally, just get a feel for how your two personalities will mesh. Does the agent seem to have your best interest at heart? Are they giving you the respect you deserve or treating your like a dunce?

Next, a common mistake for first-time agents is to consider what type of home you want. If you know ahead of time what you are looking for, the price range, as well as what you’re willing to compromise on you’ll be much more likely to make a decision quickly about buying a specific home.

This is important for two reasons. You don’t want to make an impulsive decision, but you also don’t want to wait so long that someone else swoops in and buys the house before you can make an offer!

The third mistake is not considering that a home is an investment — one where you don’t want to lose your shirt down the line. Is this home priced right (compare it to other similar homes)? Is this home in a desirable locations or is it next to a busy street, etc? Will is require a lot of work? When you go to resell this home you want to make a profit or break even.

You’ll need to consider that you’ll probably pay an agent a commission and will be paying closing costs at selling time. This is extra money on top of what you need to make on the sale of the home to break even.

Most experts say you need to say in a home for at least 3 to 5 years in order to break even. This time frame could be even longer if home values continue to fall. Remember, homeownership is a long-term investment

Next, ask your lender lots of questions and be proactive about finding the best deal. Different lenders will offer you different rates. Research your options. Would you be better served with a 15-year or 30-year note?

Ask lots of questions about the difference between adjustable and fixed rate mortgages. Learn about points. Find out how much interest you’ll pay over the life of the loan. The lender is there to serve you, so don’t be shy about getting the information you need.

Finally, don’t be greedy or low-ball sellers. This may be a buyers market, but if you offer too little or ask too much in concessions you may turn the seller off. They don’t have to sell their home to you!

Avoid these common first-time buyer mistakes and you’re sure to have a fun and rewarding buying experience!

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In Freddie Mac’s results of its Primary Mortgage Market Survey®, the average fixed mortgage rates found new all-time record lows, continuing to help keep homebuyer affordability high. The 30-year fixed averaged 3.84 percent, down from its previous all-time record low of 3.87 percent last registered on February 9, 2012. The 15-year fixed averaged 3.07 percent, also dropping below its previous all-time record low of 3.11 percent set April 12 of this year. The 1-year ARM also averaged a new all-time record low in the PMMS at 2.70 percent.

30-year fixed-rate mortgage (FRM) averaged 3.84 percent with an average 0.8 point for the week ending May 3, 2012, down from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.71 percent.

15-year FRM this week averaged 3.07 percent with an average 0.7 point, down from last week when it averaged 3.12 percent. A year ago at this time, the 15-year FRM averaged 3.89 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.7 point, unchanged from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.47 percent.

1-year Treasury-indexed ARM averaged 2.70 percent this week with an average 0.6 point, down from last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.14 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week. Real Gross Domestic Product rose at an annualized rate of 2.2 percent in the first quarter of this year, down from the previous quarter of 3.0 percent and below the market consensus forecast of 2.5 percent. In addition, the 12-month growth in the core price index of personal consumption expenditures was 2.0 percent in March which matches the Federal Reserve’s implied inflation target.”

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In the real estate industry, there is a deserved premium for brokers who understand the dynamics of a particular city or neighborhood. Far beyond the numbers of this or that area, a broker with deep intelligence about a specific locale – including knowledge of nearby businesses, schools, parks and transportation – is an asset for clients of all interests. There is one group that, based on life experience and extensive travel, already has this wisdom, a group defined by discipline, resourcefulness and open communication: military veterans.

This group, by virtue of having been stationed across a multitude of different bases throughout the United States, often has an unrivaled appreciation for the challenges – and opportunities – associated with moving into a new home, or adjusting to new circumstances. Hence the value these veterans bring to their work as a real estate brokers and executives.

As a former Marine, and as someone who interacts with real estate professionals on a regular basis, I can attest to the strengths veterans offer. With a high degree of resourcefulness and the ability to quickly survey a situation, veterans (and veterans who serve as real estate brokers) have the insight homeowners and buyers want. In fact, veterans understand the specific needs of families – including the attendant excitement and stress – that comes with purchasing a home or renting an apartment: from doing a quick inventory of safety and traffic to economic vitality and job growth, veterans know how to gather the most important data concerning a particular situation.

In terms of service, veterans also distinguish themselves as respectful and dedicated professionals. That commitment to helping others, a worldview that is an integral part of the military’s emphasis on honor and duty, is a welcome benefit to potential homebuyers. Imagine the peace of mind clients can enjoy, knowing that a highly professional broker – a military veteran, no less – is there to help. That kind of service immediately separates one real estate firm from a host of competitors, an advantage that starts with recruiting and hiring military veterans.

Real estate firms that recognize this fact – that veterans are an asset, a source of intellectual capital and inspiration – do themselves an important favor: they give back to the men and women who wore the uniform, the individuals who pledged to defend this country against all threats, foreign and domestic. And, in a tough economy, it would be comforting to see more real estate companies taking the initiative to bring qualified veterans into the workplace.

As a matter of principle and good business, veterans are a trusted and decorated group of professionals. Their expertise is something homebuyers need, the wisdom that can identify opportunities and result in sound advice. That counsel is a benefit for any business, but an especially coveted one in the real estate industry. We owe it to ourselves – no, we owe it to veterans – to make these individuals our preferred means of transforming the real estate market into a dynamic and profitable environment.

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Adding a swimming pool to your property can add cash value and an enhanced lifestyle, but it’ll also cost you to keep it sparkling and, perhaps, some extra effort when it’s time to sell.

The pros and cons are many.

Home buyers love swimming pools and they hate them. Ditto for sellers.

A pool can be a family oasis during swim season or a mosquito breeding swamp during the off season.

Pools put small children at risk, but provide full body workouts for hard core athletes.

With construction down, chances are, you can drive a hard bargain to have a new pool installed these days. However, it’s going to cost you tens of thousands of dollars and, because of buyers’ love-’em-hate-’em relationship with pools, don’t expect to get a full return on your investment when you sell, especially in harsh winter areas.

If you are going to add a swimming pool to your property take as much time considering and planning for the improvement as it will take the contractor to put you in the swim.

Value factors

When it comes to value, get the opinion of a home appraiser in terms of how it will impact the value of your home. Even then it can be a toss up.

In a community with many existing pools, a pool could boost your home’s value nearer the value of like homes with pools. In a community without pools, your return could be smaller because you’ll attract a smaller pool of buyers.

The neighborhood also comes into play on the value scale. Even if you have the only pool on the block, if your neighborhood has excellent schools, is low on crime and is in a sought-after location, the pool could be a plus for the right buyer and your bottom line.

Also talk to a real estate agent familiar with your neighborhood to determine how homes with pools sell. Talk to sellers in neighborhoods with both high and low pools-to-homes ratios to see how they affect value and salability.

Of course, if you’ve got a family of swimmers and plan to stay in your home many years, selling and a return on your investment is far less important.

LandscapingNetwork also says anyone considering a pool addition should include design factors in the decision-making process.

Design factors

A pool will erase a large chunk of your property. It’s design must be a good fit for your family and your property. Once your plan reaches the blueprint and permit stage, changes can rack up additional costs.

• Drag out the hoses. Use a connection of garden hoses to outline your pool’s location to get a feel for the space you’ll loose to a pool. The hoses allow you to easily and quickly visualize a variety of pool shapes and sizes. Likewise, heavy rope, brightly colored power cords and other materials can serve the same purpose. Leave each design in place for a few days to really get a feel for pool space.

• Engage the neighbors. While discussing pool values with your neighbors, especially those who put in a pool after moving in, ask them to share their pool experience. Ask about their likes and dislikes; what changes they’d make; how long and disruptive it was to install the pool; and ask about unexpected costs. You’ll also want nearby neighbors to know major construction may be afoot.

• Start a scrapbook. Start a collection of pool images collected from magazines, showrooms, online searches, your own photos and other sources. Collect pool images that are alluring to you and stockpile images that contain pool features you like. The images will help you visualize the form and function you want built into your pool. After a while, you’ll see a common thread in the type of pool you desire.

• Make a wish list. Go overboard. Right now, don’t consider cost. From your images make a list of all the features, designs and other elements that would create your dream pool. Then budget what you can really afford, what will actually fit in the allotted space and otherwise whittle down the list you can show the contractor, along with the images you’ve gathered.

Both the value and design pre-work will help quickly get your pool improvement project off the drawing boards and onto your property.

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According to the latest McGraw-Hill construction SmartMarket Report the share of green homes on the market is expected to grow by leaps and bounds in the next four years.

The report found that 2011′s green home share is expected to be about 17 percent, but that number is predicted to rise to a staggering 29 to 38 percent by 2016.

“In the current residential market, there is an enormous need to differentiate your homes for consumers,” says Harvey Bernstein, Vice President of Industry Insights and Alliances at McGraw-Hill Construction. “When builders are able to offer homes that not only are green, but also offer the combination of higher quality and better value, they have a major competitive edge over those building traditional homes.”

Consumers are seeking out green homes for a couple good reasons. First, they save the consumer money in the long-run. Also, they are seen to be of higher quality construction.

The report found other factors are driving growth in the green home market. . About two-thirds of builders and remodelers surveyed said they have customers requesting green homes and projects. These consumers are seeking out lower energy costs.

The higher costs of building green are less of a factor now than they were in 2008. Today’s market has a good supply of green products meaning prices have fallen more in line with traditional projects.

The report also noted, “Higher quality for both new home builders and remodelers. For those doing a high volume of green homes (at least 60% of the homes they build), its importance is magnified, with 90% who regard higher quality as an important trigger for building green, compared to 72% of builders overall.”

There is a definite shift taking place in the market as green practices spring to the forefront.

The report found that “more than 80% report that energy efficiency is making today’s homes greener compared to two years ago. Use of energy-efficient features is pervasive in the market – the top practice by nearly all surveyed builders and remodelers, regardless of their level of green building activity.”

Also tops in consideration are indoor air quality, with 95 percent of high volume home builders including these features, and durable materials being emphasized by remodelers.

“These findings confirm the shift we’ve seen in the market,” says Jim Halter, Vice President, Construction Solutions for Waste Management. “Builders and remodelers are placing more emphasis on energy efficiency, increases in sustainability focused waste management practices and more products made from post-consumer materials. These important factors are pushing our industry forward.”

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Natural disasters, from hurricanes to tornadoes, can strike at any time. Is your family prepared to weather the storm?

Storm shelters are something of a necessity through much of the Midwest and South. Tornado alley, a strip of land in the Great Plains between the Rocky Mountains and Appalachians, sees more than it’s fair share of tornadic activity each year.

Last year alone there were 552 tornado related deaths in the United States and 1,688 confirmed tornadoes.

While your home insurance most likely covers tornado damage (be sure to check on the specifics of microbursts, straight line winds, hurricane winds, and tornado coverage for your plan), you have to make it through the storm in the first place.

If your home has a basement, be sure to have a space cleared of debris and ready for use during storms.

You may have just seconds to get to your safe space, especially during the night when it’s harder to see a tornado coming. Many Midwesterners have above ground safe rooms in their homes (garages or closets) that are bolted down into the ground and serve as tornado shelters. Many others have underground storm cellars near (the key is near) their homes.

Do some research to find the best plan and deals for your family. You should also invest in a weather monitor, which can alert you with alarms when severe weather warnings have been issued. The key is to not be caught unaware.

If you are a renter or don’t have the option of installing a storm shelter then always be sure to have a Plan B should severe weather rear it’s ugly head. Do you have a family member or neighbor with adequate shelter? Arrange in advance to share in this space should bad weather appear.

All homes, regardless of location, should have an emergency tote full of supplies. You should have bottled water, a battery or crank operated FM radio, non-perishable food, lighter, flares, first-aid kid, solar cell-phone charger, extra batteries, whistle, pet food, and baby formula if needed. The FEMA-backed website, Ready.gov, gives some helpful tips to families on what they can do to be best prepared for disaster.

Have an open discussion with your family members about where they should go during storms, where to meet up after disasters, and who is responsible for what.

Many people today rely on their cellphones instead of installing landlines. It is important to remember that cell phone circuits become overloaded during times of emergency and you might not be able to get a call through to a loved one. Land lines work even without electricity.

The key is to be prepared ahead of time and to head the warnings of officials about impending storms.

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When you have a functional smoke alarm in your home it cuts your risk of dying in a home fire by half. That means it’s time to mark your calendar to remember to check your batteries. Set yourself a monthly or quarterly routine for testing your alarms.

Most smoke and carbon monoxide alarms have a button on the outside that you can press to test if the alarm is operational. Preforming this simple task could be a real life saver. Be sure to remember, however, that on on carbon monoxide detectors a test button doesn’t always show accuracy of a sensor. Instead, pay close attention to the product age and when the manufacturer recommends replacing the unit.

Before installing a detector or an alarm, Pennsylvania State Fire Commissioner Ed Mann suggests writing the purchase date inside the unit. Whether a unit is battery-powered or hardwired, it should be replaced every 8-10 years.

Carbon monoxide is created when combustible materials burn incompletely. Often called “the silent killer,” it is an odorless, colorless, tasteless gas that can incapacitate victims before they’re aware they’ve been exposed.

Sources include wood-burning fireplaces and stoves, gas-fired appliances, grills, and motor vehicles. Symptoms of carbon monoxide poisoning are often mistaken for the flu and include nausea, headaches, dizziness, disorientation and fatigue.

Every year an average of 170 people die in the United States from CO poisoning. Don’t become a statistic.

The US Consumer Product Safety Commission (CPSC) says that CO alarms always have been and still are designed to alarm before potentially life-threatening levels of CO are reached. The safety standards for CO alarms have been continually improved and currently marketed CO alarms are not as susceptible to nuisance alarms as earlier models.

The same goes for your home’s smoke alarms. You should have them on all levels of your home and in various rooms. According to FEMA, “A properly installed and maintained smoke alarm is the only thing in your home that can alert you and your family to a fire 24 hours a day, seven days a week. Whether you’re awake or asleep, a working smoke alarm is constantly on alert, scanning the air for fire and smoke.”

According to the National Fire Protection Association, almost two-thirds of home fire deaths resulted from fires in properties without working smoke alarms. A working smoke alarm significantly increases your chances of surviving a deadly home fire.

If your alarm starts beeping at you as a warning of low battery life, don’t just unplug the battery to stop the annoyance. Change the battery. This simple act could very well save your life. Need a new alarm in your home? You can buy a smoke alarm for anywhere from $6 to $20. Now, that’s a very reasonable investment in your safety!

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Shopping for a home is an exciting experience but there are many things to consider, starting with the fundamental question: which housing style is right for you?

You might be thinking, I want to own my own home which translates in your mind to a single- or double- story house. However, your finances, where you live, affordability, and practicality may factor in and cause you to consider other options. So let’s explore some of them.

Single-Family Housing. When many people think of owning their own house, the single-family residence first comes to mind. This type of home is the most independent. The walls are typically not joined together with any other homes. The heating and plumbing systems are separate. And, while, the house may be in a planned community that has covenants, conditions, and restrictions (CC&Rs) regarding what you can do to your home on the outside, there is generally the most freedom with this type of home. Some of these homes have additional fees (Mello-Roos fee) to pay for schools in the area.

These residences are usually detached houses and have land surrounding them unless, it’s a zero-lot-line house. Then the house sits on or very close to the property line. These houses are packed into areas and may offer extra space inside but at the compromise for little land outside.

Row houses are often situated this way. However, while the single-family home can have a little different look, the row houses are generally identical and lined up side-by-side, thus the term: row houses. Sometimes there is a small backyard area behind the row house. The row houses also usually share a wall or two with the other houses. This also makes them more affordable than the detached, single-family house.

The Duplex. This type of house shares a roof and one wall but the other side is separate from other homes. You can also choose from triplexes and quadruplexes. Some buyers decide to go for this style of housing because they can live in one of the units and rent out the others to help pay for their mortgage. This allows them to save to and, later, if they choose, to purchase another home and rent out all of the units.

Townhouse. This style of house shares a wall and common areas such as parking lots, and walkways.

Condominiums. These units often look a lot like apartments. In fact, some apartments have been part of a condominium conversion. The individual unit is owned by a homeowner. Often the homeowner purchases the unit and rents it out. Homeowners have an ownership interest in the common elements which can include halls, stairways, elevators, parking lots, open areas, and other amenities.

As with townhouses and even single-family homes that are in planned communities, there is a fee for the care of the common areas.

The Microhouse. They may be small as the name states but they can be plenty big especially for those who are living alone or traveling frequently and simply want an easy-to-care-for home.

These micro or mini houses can be just a few hundred square feet to a thousand. Often they are vertically built and they have more living space by the use of lofts and smaller- than-usual furniture and appliances. Some have unique features such as a deck on the roof.

So whether you’re shopping for a single-family, detached home or a minihouse, having a basic understanding about what you can expect with each housing style is an optimal way to begin your search. Then let your experienced real estate agent guide you to the suitable options that can best meet your specific needs.

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It’s Spring and that means warm weather, beautiful blooms, and of course mower and machine maintenance.

In a recent survey by Gold Eagle, an industry pioneer in the production and distribution of aftermarket fluids and additives, it was found that nearly 70 percent of Americans dread the process of getting their equipment ready for use. These people would rather have to clean their house than get equipment up and running!

“Springtime preparation of small engine equipment can be challenging, time consuming and expensive if not done properly,” said Tom Bingham, director of marketing at Gold Eagle. “It’s important to thoroughly inspect, clean and properly lubricate your equipment before flipping the ON switch or you could find yourself standing in line at a repair shop.”

The survey also found:

1.  More than 1/3 of survey respondents reported they would be willing to pay more than $100 on average to have someone do the maintenance for them.

2.  Four out of five respondents who experienced mechanical issues found themselves paying just under $300 on average to fix the problem.

“When it comes to proper seasonal storage and maintenance, it literally pays to take care of your machinery between seasons and makes for an easy, stress-free transition,” said Bingham.

In order to keep machines running smoothly you should take special care storing (covered by tarp or in a garage) and maintaining machines all year round.

Gold Eagle recommends:

Properly educate yourself on the steps you should take to store your small engine equipment or machines in the fall.

When taking your equipment out of storage in the spring, make sure you check that all fasteners are tightened and cutting blades are sharp and you have ample oil in 4-cycle engines. It’s also important to lubricate any wheel bearings, grease fittings, etc. and ensure your fuel in the tank is still fresh.

If you have trouble starting your engine, add the appropriate fluids.

If you think something is wrong and you aren’t sure how to fix it, save yourself the hassle and ask an expert!

Finally, don’t become overwhelmed when it comes to servicing and preparing your machines for warm weather. Does you mower need new blades or a battery? Is there water or gunk in the air filter? Does your engine need an oil change? Almost 75 percent of those surveyed say they have trouble getting things running come Springtime. So, just remember — it’s normal!

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It seems when it comes to home values, a little elbow grease can go a long way, according to a recent nationwide study by HomeGain.

The study surveyed 500 real estate agents throughout the nation to learn the top 10 low-cost, do-it-yourself improvements that help increase the likelihood a home would sell.

Ranking in the top five are: clean & de-clutter, lighten & brighten, repair electrical & plumbing, landscaping, and home staging. But how much benefit can you really expect to get from each of these home improvement categories?

According to the study, the top home improvement (since 2003) continues to be to clean and de-clutter your home. It may cost you about $400 to make the most of this home improvement but sellers who make the financial commitment can benefit by seeing a “returning value of just over $2,000 to the home’s sale price”. That’s a 403 percent return on investment (ROI).

Coming in at the number two spot is lightening and brightening your home. This makes perfect sense. If a home is dark and difficult to view, many buyers won’t spend even minutes in it. Buyers want to be able to explore the home, seeing every detail. Also, homes that are dark often convey a dreary tone and may give buyers the suspicion that there may be hidden damages in the home.

Interestingly, home staging fell to the number five spot. In the 2011, study it ranked third. However, for this year, do-it-yourself tasks such as repairing electrical and plumbing issues, and maintaining landscape, ranked higher, respectively.

“In a buyer’s market, sellers need to dress their homes for success before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain.

It could be a sign of the times, that do-it-yourself home improvement projects are creating greater ROI. With many homes falling into foreclosure or being put on the market as a short sale, there is lots of inventory that is lacking a little tender loving care.

Sellers who are listing their home on the market should take a close look at the competition and then, as I’ve written in previous columns, see their home through the eyes of a potential buyer. In other words, check out its flaws and fix those issues.

Remember, buyers don’t have a history with your home. They’re not necessarily attached and willing to overlook the downside of your property.

Create a do-it-yourself task list and target those areas that need some work. Then bring in the experts to do the maintenance and repairs that need professional care. Investing a little more into increasing the potential sale of your home can mean not only more money but also a faster sale.

Rounding out the top 10 on the HomeGain.com National Home Improvements study are, shampoo or replace carpets, repair floors, paint interior walls, update kitchen & bathroom, and paint the exterior of the home. For more details on the study and to see a complete analysis of the cost versus the ROI, visit HomeGain.com.

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