While most of us are dreaming of extending our family house somehow - more bedrooms or an extra bathroom, usually - there are also a lot of advantages to be had from shrinking your home: that is, selling a larger house and buying something smaller. (more…)

There’s not really too much good news out there about what house prices will do in 2009. Experts are predicting that the global economic crisis - which they’re saying is likely to include a recession for at least three quarters of the year - will further damage the real estate market and in some places, drive prices down even further.

Over the last two years, the average house price in the United States has already fallen by 20%. Some experts think that 2009 will see another drop of 20%; others say it’s likely to be “only” 15%; but one thing’s for sure, nobody’s predicting a big rise in house prices. Of course, it also depends on where you are. The scariest predictions for value falls during 2009 are places like Miami (could fall by 19%), Los Angeles and Washington (experts say the drop could be 17%), and New York and Boston (also double digit falls - around 14% and 12.5% respectively).

But there’s good news. Nearly everyone’s predicting a turn around in the market towards the end of 2009 and on into 2010, so unless you’re in a position where you have to sell your house in the next year, just sit tight. Values should start to rise again and that neverending economic cycle should kick most people back into a more promising financial position. Fingers crossed.

Slumping property prices are not a problem exclusive to the United States at the moment, because over in Britain the Times is offering tips on selling your house in a downturn. Some of the most useful include the following:

• Select the real estate agent carefully, and ask at least three for their ideas on a selling strategy. Make sure they have detailed local knowledge of the real estate market.
• Know your local market well - they give the example of knowing what kind of prospective buyers there will be and deciding whether a third bedroom might be better displayed as a study than a bedroom.
• Be realistic about the price you can achieve in the current market; apparently setting a higher price and then reducing it drastically later is a bad strategy that makes the house look less valuable than it is.
• Make the house look most marketable by cleaning it well and giving it fresh paint wherever it’s needed - the cost of this (especially if you do it yourself) can be relatively low but can increase the value a lot.
• If you’re selling the house because you need more space, carefully consider whether you could extend your existing house instead.
• Be flexible about a purchaser’s requests - for example, if they want to move in especially quickly, it might be worthwhile for you to move out to rental accommodation while you find your next home.

Renting an apartment or house usually doesn’t seem like a situation where you can do a whole lot of negotiating, but if you do your research you might be surprised by how many ways you can get a better deal as a tenant.

Doing your research well and planning ahead are two important factors in making sure you get a good deal on your rent - if you have to take something urgently or at the last minute then you’re much more likely to end up having more rent to pay, just because you can’t afford to be choosy. Know how much is a fair rent in the area you want to live in and give yourself plenty of time to find the right place at the right price.

It’s also important to consider the marketing side of being a tenant. That means that you have to promote yourself to potential landlords as a good tenant, as well as trying to negotiate the best deal by pointing out advantages for the landlord of what you propose. For example, if you want to sign a longer rental contract, try and persuade them that if you have a two-year contract at a slightly lower rent they’ll still end up on top compared to changing tenants after a year.

One last tip is to see if you can do some work in exchange for part of the rent. For example, offer to do some maintenance or minor home renovation works in exchange for a discount in rent and you might be surprised at how many landlords will take you up on the offer.

photo credit: faeryboots

Amongst all the bad news, it’s good to know that there are still areas around the United States where house prices haven’t taken such a beating. A Smart Money survey recently summarized seven cities where the real estate market is looking reasonably healthy:

1. Seattle - helped by its low unemployment, partly due to having strong employers like Boeing, Amazon and Microsoft located in the area.
2. Des Moines - suffered through a real estate bubble in the 80s, and diversified its economy which stood it in good stead for this crisis.
3. Raleigh - had job growth during the slump thanks to a lot of high tech companies moving into its Research Triangle.
4. Salt Lake City - The Church of Jesus Christ of Latter-Day Saints helps out here by providing a lot of steady employment; but in general it’s a diverse, “pro-business” city.
5. Philadelphia - house prices here didn’t soar high but had just a steady growth, so now they haven’t fallen far.
6. Birmingham - plenty of strong employers here (including Mercedes and Honda plants, and a large university) have kept the economy here relatively stable and house prices have followed.
7. Denver - like Des Moines, already suffered a bust so the economy wasn’t ready to go wild; that’s kept things relatively stable and the housing market is already acting at a level many experts consider normal.

photo credit: Atwater Village Newbie

It’s good news if you’re selling, bad news if you’re buying: America is home to some seriously overpriced real estate. These neighborhoods, generally in ritzy areas of the country’s most sought-after cities, seem to defy the real estate market’s growing problems, increasing in value with no end in sight.

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photo credit: >Kirill

Real estate prices across the United States have been hit really hard in recent times, but in some areas things are really starting to turn around. You have to keep a good eye on your local area to see when housing prices are starting to rebound, especially if you’re considering selling or buying. Money Magazine put out a list of signs that the housing market in your area is rebounding, so take a look at these indicators to figure out what’s happening to real estate around you: (more…)

credit: thekitchendesigner.org 

When you have your own home, the temptation to start renovating it to create your dream home is high. But some upgrades might not add that much value to your investment. These ideas from Yahoo’s Finance pages can help you decide which home renovations will have the best payoff for you:

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Though you may have no intention of moving anytime soon, today may be the best time to start looking for a second home. It may sound counter-intuitive in today’s economy, but in fact, falling real estate prices and eager sellers are exactly why this may be your best chance to invest in your next vacation home.

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For first home buyers, looking for the house you want to buy can be very exciting and also quite daunting. But to keep yourself on track and avoid getting into too much debt, here are four questions to ask yourself before you begin house-hunting: (more…)