By Lisa Johnson Mandell | Nov 29, 2016 Marry the small-house craze with the equally hot trend of prefab homes, and what do you get? Small prefab homes, which are the housing industry’s equivalent to miniature schnauzers tied with a gift bow on Christmas day: extremely cute and increasingly in demand. Or, so argues Sheri Koones‘ latest book, “Prefabulous Small Houses,” which explores the beauty, variety, and benefits of small-scale prefab construction in all its glory. Also the author of “Modular Mansions” and “Prefabulous World,” Koones argues that these prefab homes may be small, but they are so beautiful and well-built, you can’t tell the difference between them and the supposedly “nicer” houses constructed on-site. Robert Redford, who wrote the foreword, is also a fan: “Building smaller, along with building houses prefabricated—in the process using less time, fewer materials, and using both more efficiently—is the sanest and wisest recipe for home construction, for now and for the future.” We talked with Koones about what we can all take away from these modest yet amazing dwellings. Q: What’s the biggest misconception people have about small prefab houses? A: The important thing for people to understand is that prefab homes today are literally indistinguishable from site-built houses. Realtors® don’t even have to disclose a house [they are selling] is prefabricated. I interviewed someone who bought a prefab panelized house, and he didn’t understand why I wanted to interview him. I explained, “your house is panelized,” and he said, “no, no, my house is a very expensive luxury house.” I said, “yes, it is,” and it was panelized and that means it’s prefab. Q: What do you consider a ‘small house’? Is it the same thing as a ‘tiny house’? A: The smallest house I feature in the book is 352 square feet. I differentiate that from a “tiny house” in that the one I write about is connected to the grid, it has a foundation, a septic system, plumbing electricity, etc., and it meets all the local codes. The largest house I feature is 2,500 square feet, and I’m considering that small, because it’s one of the smaller homes in Santa Monica. It’s all relative to the area. Q: What are some of the basic elements of the small prefab houses? A: In all of these houses, space is used in an intelligent way. A lot of the rooms are multipurposes. There are no large hallways or wasted space. All were built in less time than a site-built house would take, and are sustainable and low maintenance. Those are elements everyone seems to be looking for in homes these days. Q: Are small prefab homes less expensive than houses built on-site? A: Well yes, if they’re smaller. But price per square foot is usually about the same. But you save in other ways. Construction costs are reduced, because small...

By Angela Colley | Nov 30, 2016 When you’re selling your home, you must be ready for people to pop in at a moment’s notice. And no, it’s not like when your neighbor drops by to ask you to water her plants while she’s on vacation, and leaves in five minutes without noticing how many dishes are stacked in your sink or the layer of dust on your coffee table. Nope, these people will scrutinize. And they will judge. But you’re still living in your home—how do you keep it clean enough to make a good impression, no matter the time or day? It turns out you don’t have to hire a live-in housekeeper, and your life doesn’t need to come to a screeching halt just because you’re showing your house. Try these hacks to get the job done quickly and easily, so you can free up your time—and save your sanity. 1. Work the room Half of my cleaning problems come from not knowing where to start. I walk into a room, picture myself trying to clean all the things at once, get overwhelmed, and suddenly feel the urge to sit down for a while. Apparently I’m doing it wrong (no big surprise there). But if you know how to work the room, cleaning will go much faster.“ At first, follow the top-to-bottom and left-to-right rule for each room in the house,” says Lauren Haynes, home organizing and cleaning expert at Star Domestic Cleaners. That means start by dusting the ceiling fan, the top of the bookshelves, and anything up high before moving on. Going from left to right (or right to left, if that feels more natural) will keep you on task and make the cleaning go faster.“Then focus on the top eye-catcher places and things like floors, ovens, and bathroom [fixtures],” she says. While your instinct might be to clean everything, you might also go crazy trying to pull it off before every showing. Instead, zero in on what the potential buyer is likely to notice, Haynes recommends—cleaning it every day or two, and then doing a deeper clean once a week. 2. Use mobile storage As soon as you know you’re going to show your house, pack up everything you don’t normally use. “Remove all the nonfunctional stuff or things which don’t contribute to the overall look of the property,” Haynes says. It’ll feel weird to live like that at first, but the more stuff you have, the more stuff you have to clean. Once you’re down to the stuff you actually need, find a way to quickly and easily hide it when it’s time to show the house. “When we had a viewing on short notice, we used plastic and cardboard boxes...

By Cicely Wedgeworth | Nov 30, 2016 We won’t pretend to know everything that 2017 will bring—heck, 2016 sure surprised us—but we’re pretty certain there will be changes. A lot of them. And while the surprise triumph of Donald Trump in the presidential election won’t alter the fundamentals shaping the 2017 real estate market, its impact is already being felt. We’ve seen interest rates jump since the election, a movement that’s likely to affect the youngest generation of home buyers. Just like last year, realtor.com®‘s economic data team analyzed our market data and economic indicators to come up with a picture of the key housing trends for 2017. As we prepare to bid farewell to 2016, it looks like we’ll be saying goodbye to the last of the record-low interest rates of the past few years, too. Interest rates have shot up 40 basis points, or 0.4 percentage points, since Trump’s election. And that’s significant, especially for first-time home buyers, including many millennials. “With more than 95% of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some first-timers out of the market,” says Chief Economist Jonathan Smoke, who worked on the realtor.com 2017 housing forecast.According to the forecast, the 2017 national real estate market is predicted to slow compared with the past two years, across the majority of economic indicators studied.  But maybe “slowdown” isn’t quite the right description. “I would characterize our 2017 forecast as a moderation, as opposed to a slowdown,” says Smoke. “The pace of growth is still strong and, for pricing, still represents an above-average level of appreciation.” Smoke says we’re mostly reverting to normal prices, after years of appreciation as the housing market recovered from its 2008 crash. Recovery is good, but the flip side is that pricing is tougher for consumers, Smoke points out. “Throw in higher mortgage rates, and it becomes more challenging to be able to afford homes compared to what it was over the course of this recovery,” he says. Here are some of the key predictions for 2017: 1. Millennials and boomers will move markets In 2017, the U.S. real estate market will be in the middle of two massive demographic waves that will power demand for at least the next 10 years.Millennials and baby boomers, the two largest American generations in history, are both approaching life stages that typically motivate people to buy a home: marriage, having children, retirement, and becoming empty nesters.Smoke predicts that millennials will make up 33% of buyers in 2017, lower than his original estimate due to those increasing interest rates. 2. Millennials will look to the Midwest While...

By knowing how much mortgage you can handle, you can ensure that homeownership will fit in your budget. Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget. Why not just take out the biggest mortgage a lender says you can have? Because your lender bases that number on a formula that doesn’t consider your current and future financial and personal goals. Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage? Consider those lifestyle issues as you check out these four methods for estimating the amount of mortgage you can afford. 1. Prepare a Detailed Budget The oldest rule of thumb says you can typically afford a home priced two to three times your gross income. So, if you earn $100,000, you can typically afford a home between $200,000 and $300,000. But that’s not the best method because it doesn’t take into account your monthly expenses and debts. Those costs greatly influence how much you can afford. Let’s say you earn $100,000 a year but have $1,000 in monthly payments for student debt, car loans, and credit card minimum payments. You don’t have as much money to pay your mortgage as someone earning the same income with no debts. Better option: Prepare a family budget that tallies your ongoing monthly bills for everything — credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings. See what’s left over to spend on homeownership costs, like your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable. 2. Factor in Your Downpayment How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment. The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment. But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger downpayment, you may end up paying more for your home. 3. Consider Your Overall Debt Lenders generally follow the 43% rule. Your monthly mortgage payments covering your...

You’ve found your dream home. Make sure missteps don’t prevent a successful closing. A home purchase isn’t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. Here are five tips for avoiding mistakes that cause a home sale to crater. 1.  Be truthful on your mortgage application. You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime. 2.  Hold off on big purchases. Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan. Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing. 3.  Keep your job. The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before. 4.  Meet contingencies. If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately. 5.  Consider deadlines immovable. Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct. G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal...

By: G. M. Filisko When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix. Trying to decide whether to buy a fixer-upper house? Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you. 1.  Decide what you can do yourself. TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house. Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs. Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends? 2.  Price the cost of repairs and remodeling before you make an offer. Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do. If you’re doing the work yourself, price the supplies. Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house. 3.  Check permit costs. Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home. Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit. Factor the time and aggravation of permits into your plans. 4.  Doublecheck pricing on structural work. If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems. Get written estimates for repairs before you commit to buying a home with structural issues. Don’t purchase a home that needs major structural work unless: You’re getting it at a steep discount You’re sure you’ve uncovered the extent of the problem You know the problem can be fixed You have...