A growing number of homeowners behind on their mortgage and facing foreclosure are finding a way to sell despite the glut of Valley homes for sale. They are turning to “short sales,” which are similar to regular home sales except a deal is worked out in which the lender accepts what the house is appraised for or what it will currently sell for instead of what is owed on it.

So a homeowner would sell the house to a buyer willing to pay the current market value of the home, and the lender takes a loss on the rest

* Fully story: Available on Arizona Republic

If you are planning to sell your home, you may have realized that the process might not be easy as it would have been even a couple of years ago. The good news; however, is that there are some positive steps you can take to make your home stand out, even if the market is somewhat crowded.

A few years ago, back when the market was sizzling, homeowners mistakenly believed that putting a lot of money into their homes would pay off big time when it came time to sell. Unfortunately, they failed to realize that upgrading and remodeling are really only mediocre investments. In reality, very few projects actually pay for themselves, let alone bring in a profit.

So, what should you concentrate on when preparing your home for today’s market?

First, before you take on any projects, make sure they are the right kinds of projects. The projects which should take priority are those which will actually protect your home from damage and deterioration. This includes replacing the roof and making plumbing and electrical upgrades. These types of projects won’t do much to beautify your home, but they will go a long way toward preserving the home’s value.

You should also make sure that your home has curb appeal. At a minimum, buyers today are looking for a good paint job. If the exterior of your home is already in good shape, you may be able to get by with just doing a little touch up work. The main idea is to make sure that your home stands out. A little paint does not cost a lot and in the end it can really go a long way toward making a difference when it comes time to sell.

When painting your home; however, it is important to keep a few guidelines mind. First, make sure you are using quality paint. Remember, this isn’t just for show. Ideally, it is best to use two topcoats. This will provide protection against mildew, moisture and the effects of the sun. Second, work to make your home stand out but avoid colors that make your home stand out too much. Choose colors that have universal appeal.

Make sure your yard is tidy. Trim those shrubs and keep your lawn neatly trimmed; even if that means hiring a service to handle it while your home is on the market. The investment will be well worth it when your home sells. Avoid spending too much on sprucing up the landscaping; however. Ideally, you should spend no more than 2% of your home’s value on the landscaping before you sell. Any more than that and you won’t be able to get it back in the final sales price. Focus on spreading mulch around trees, trimming the shrubs and walkways and mowing the grass. If the season is right for it, add a few flowerpots around the patio and entry.

Spend a bit of time on your driveway. If it has not been resurfaced in awhile, now is the right time to take care of any cracks with some asphalt resealer. This is a good way to give your home the appeal buyers are looking for without spending a ton of money.

The basic rule of thumb when preparing your home for the market is to avoid doing too much overimprovement. Getting carried away will ultimately cost you. For example, contrary to popular belief, adding a pool to your home will do nothing to increase the final value. In fact, it will actually take away from the resale value as homes with pools cost more to insure and maintenance costs may turn away some would-be buyers.

Any home improvements you make should fit in with the neighborhood. Take a good look at the homes around your area. The key here is to make sure that you are keeping up with the neighbors, not trying to outdo them. If most homes in your local neighborhood have two bathrooms and you only have a bath and a half, it could be a good investment to upgrade to two bathrooms. Four would be pushing it.

If you’re planning to re-decorate, avoid doing anything that is too trendy. While it might be in fashion today, tomorrow it will just be outdated. Along the same lines, avoid over-decorating. Go with neutral colors that will allow buyers to envision how they will add their own personal touches to the home after they purchase it.

Take the time to clean out clutter. Remember that too much clutter can make rooms appear smaller. Clean off tables and countertops and remove any extra furniture you do not need. If necessary, rent a space to store extra belongings until the home sells and you move.

Create an atmosphere that is homey and comfortable. Make sure the home is clean above all else but also take the time to set the stage. Set your table, put out fresh flowers, make sure the bathrooms have guest towels, etc.

Finally, make sure your home is priced to sell. Take the time necessary to be sure your home is priced just right and not over or under-priced. Homes that are priced too high as well as those priced too low, tend to sit on the market longer. The longer a home sits on the market, the harder it becomes to sell. So, start off on the right foot by pricing it right the first time.

More and more home sellers are trying to decide whether they will make more money on their home by selling it on their own or by enlisting the help of a real estate agent. Certainly, there are advantages and disadvantages to both strategies and if you are interested in selling home on your own it is important to make sure you have examined the angles of both options before making a final decision.

Selling Home on Your Own

Advantages - Home sold by owners tend to sell on par with homes sold by agents. When you factor in the fact that homeowners will save a 6% commission, they might actually come out ahead financially.

Disadvantages - Selling your home on your own entails a lot of work. In addition, the home might not sell as fast as a home listed with an agent.

When considering selling your home on your own, it should be taken into consideration that the market today is definitely not the same it was a year ago, or even six months ago, for that matter. In many areas, the market is tough. Buyers are savvy and they realize they have the upper-hand in areas where the inventory of homes for sale far exceeds the number of homes sold recently.

As a result, home sellers who are trying to sell on their own without the help of a real estate agent may find it tough going. Real estate agents can provide a wide range of services to help properties move faster, even in difficult times. To help home sellers who may need additional services but who are interested in saving as much as they can when it comes to selling their home, many real estate agents are now offering a la carte real estate services. For example, a home seller could attain assistance with listing their home, marketing it or even just closing the deal for a flat fee.

While these options can certainly save sellers money, it is important to ask yourself whether you actually have the time necessary to invest in properly marketing your home in today’s market. Studies indicate that homes sold by their owners on average take about three weeks longer to sell than homes listed with a real estate agent. If you are in a time crunch to sell your home quickly, this could spell problems; particularly in a softening market where it is already taking a long time to move homes.

If you are considering selling home on your own, it really does pay off to do some research. If your home is not appropriately priced for the market, it will cost you in the long run. Both homes that are over priced as well as under priced tend to perform poorly.

In addition, make sure you obtain necessary professional assistance including help from an attorney, title company and lender. Far too often deals fall apart for sellers working on their own simply because they did not understand all of the details.

In the end, selling your home on your own may actually help you to come out ahead when compared with selling it using the help of a real estate agent; however, it does require more time and patience.

Home owners who elect to sell on their home will need to spend time researching market values and then put in the time required to market their home to the current buyer climate. This could mean embracing a wide range of marketing techniques, including Internet technology. Sellers working on their own should be available to take calls from interested buyers and make their home available for showing on a frequent basis. The latter could mean taking time off from work.

If you are not prepared to put in this kind of time and energy into selling your home, biting the bullet and paying the agent’s fee may be a better solution for you in the end. Likewise, if you are in a hurry to move due to a job change, it may be better to consider working with an agent instead to avoid the lengthier waiting times that most sellers working on their own endure.

Finally, keep in mind that while on average, homeowners who sell on their own come out ahead financially, this is not always the case. The main advantage for most home sellers deciding to sell on their own is the ability to save the sales commission. Keep in mind that if your home sells to a buyer working with an agency, you may still be responsible for half the commission; which could mean up to 3% of the final sales price.

Frequently homeowners are at a loss as to which home improvements will move their properties quickly and for the best prices. While much information is often provided on the subject, there is often little guidance given on those home improvements that should actually be avoided when trying to sell your home.

Ideally, it is best to avoid those home renovations which will cost you money when it comes time to sell your home rather than net you a profit.

One of the worst mistakes homeowners can make when it comes to renovating their properties is over-expanding. Unless you plan to remain in a property for a long period of time, it is best avoid continue making additions to your property. Homes with numerous additions quickly become conspicuously larger and more expensive than other homes in the neighborhood. The final result is that these homes are more difficult to sell. Generally, additions on homes fail to return their investment. On a national average, homeowners are only able to recoup about 85% of the cost of a family room addition and even less on master suites.

It’s also important to avoid trying to turn your home into something it simply is not. This includes making major changes to the general architecture of the home. Always be sure that any renovations you make to the home match the architecture that is already present. Obviously inconsistent changes will definitely limit the number of buyers interested in your home when it comes time to sell.

Avoid changing the function of a room as well. This is always risky when it comes time to sell later on. Rooms are typically built a certain way for a reason and should be kept that way. Kitchens should remain as kitchens; bathrooms as bathrooms, etc. Changing basic items in your home really means that you are customizing it for yourself. While that may be fine when you are living there, those changes won’t hold a broad appeal for buyers.

You might want to re-consider building that home office as well. Despite the number of people who work at home, national trends indicate that rewiring and setting up a room to be a home office really only returns about 70% of the cost.

Should you handle home improvements on your own or bring in professionals? It’s definitely wise to know when you should do-it-yourself and when you shouldn’t. If you’re thinking of handling a home improvement project on your own, be absolutely confident in your ability to take it on. If you aren’t 100% sure you can handle it capably, don’t. Sloppy amateur work can cost you at resell time.

Far too frequently home owners underestimate how much home renovation projects will costs. Expenses rise, they fail to include certain expenses and before they know the cost of a project has far exceeded their budget. The result? Projects never get completed. This can be a major turn off for buyers later on. To avoid this problem, make sure you add a cushion of at least 20%, both in time and money, to your renovation projects.

If you plan to remodel for resale, avoid those home renovations that simply won’t pay off. Work first on those projects that are going to provide you with the highest rate of return. Those four areas are siding, windows, kitchens and bathrooms. While these areas may not be exciting, studies indicate they pay off the highest in terms of recouping value at resale. A mid-range bathroom renovation, for example, will payoff with an average 102% return on investment. Avoid going overboard, though. Upscale bathroom renovations typically only recoup 93% of their cost.

Perhaps the most important home improvement you can make is to provide proper maintenance and upkeep to your home. Make it a routine matter to clean your gutters on an annual basis, protecting the exterior of your home from water damage. Take the time to trim shrubs and keep your lawn neatly manicured. Check for termites every two to three years. When the time comes to sell your home, annual maintenance will provide a handsome payback.

Before you actually put the home on the market, spruce things up with a fresh coat of paint. Even if your home is in good condition, this can give it a fresh, clean appearance that is appealing to many buyers.

Finally, consider investing in a home inspection before the home goes on the market and then remedy any problem areas that are discovered. The cost of the home inspection is relatively little and you can use it as a selling point when you list your home.

When looking around for the property that will eventually become your home there truly is nothing more important than location, location, location. Unfortunately, many home buyers make the mistake of believing they can judge a neighborhood by its appearance when it comes to crime. They find out the hard way that while a home may look perfectly clean and safe, there is still an amount of crime they failed to anticipate.

One of the most frequently problems are elements of underlying crimes that you may not be aware of simply because the neighborhood “looks” safe. Even though the lawns are neatly trimmed and the homes all appear to be in immaculate condition that does not mean the neighborhood is free from all crime.

When you are considering buying a home, particularly in a neighborhood you do not know much about, it is imperative to take the time to learn more about that area rather than simply basing your final decision on the way it looks.

Your real estate agent may be able to help you with uncovering some details about the neighborhood such as any planned future developments as well as school information but you may find yourself on your own when it comes to uncovering other information.

The first step should be to check with the local police department. Stop in and explain that you are planning to move to the local area and would like to find out how much crime exists locally and most importantly, what kinds of crimes take place in the area.

The type of crime perpetuated in the local area is a key question. This will indicate what kind of criminal activity may be ongoing as well as what kind of characters may actually be venturing into the neighborhood to pose a threat to your safety.

Far too often, homeowners make the mistake of visiting the neighborhood during a particular time of the day and see that everything is fine. They fail to come back in the evening, on weekends or other times to see if there are any changes in the area. It is imperative that you take the time to observe the neighborhood as well as the people who live and work there to give you a complete understanding of whether that neighborhood is right for you and your family.

Remember that staying safe is not always related to the lack of crime. You also want to consider other factors such as traffic issues. If you have kids, consider how far away the local school is and how your kids will get there. What kind of local transportation exists?

Take a look around at the local geography near the school. Do crosswalks exist? Are crossing guards present? Is there a local bus service? How many streets will your children need to cross in order to get to school?

Even if you do not have children, taking the time to investigate the school system and relevant traffic issues can be a good idea. A thriving school district is a strong indication that the local area will support rising property values. On the flip side; however, if you are located too close to the school and must deal with traffic jams on a daily basis, this could negatively impact the value of your home.

To further assist you in gaining information about the local area, consider the following tactics.

Go out to dinner at a local restaurant and make an attempt to strike up a conversation with other patrons. This can prove to be an invaluable source of information.

Spend an hour or so shopping. Speak to the local business owners. They can provide a lot of insight to the neighborhood and the people who live there.

Ask your agent about the local owner-occupancy rate as well as rental values. Remember that a low owner-occupancy rate could indicate problems as tenants frequently do not have the same pride of ownership that a owner would. As a result, properties may not always be kept up.

Visit local facilities including movie theaters, shopping marts, malls, etc. These locations are generally hangouts for the local kids and will give you an idea about the neighborhood kids.

Finally, be sure to simply drive around the neighborhood. Does it look as though there are a lot of remodeling projects going on? If so, this could mean the neighbors are planning to be around for awhile, which indicates they are making an investment in their homes as well as the neighborhood.

While we all know that buying a home involves a significant investment both up front and over the long term, in many cases home buyers may overlook a number of hidden costs of home ownership that can make the reality of owning a home more expensive than they realized.

So, what are the hidden costs of buying a home? Some of the most frequently overlooked fees include:

Property and assessment tax - Quite frequently home buyers are required to establish an escrow account with their mortgage lender. Home buyers must pay a portion of their taxes upfront and deposit them into the account.

Insurance - Generally, homeowners are required to pay their homeowners as well as their fire insurance upfront as well. It is not uncommon for mortgage companies to require that the first year of coverage be paid for at the time of closing.

Appraisal Fees - An appraisal is required by most mortgage lenders to ensure that the property you are buying will cover your loan amount. The buyer is typically responsible for paying for the appraisal; which can range between $150 and $450.

Survey Fees - In some cases, the lender may request a property survey, especially if there are questions about the property lines. Fees for surveys range between $600 to $2,500.

Septic System Certification - It is imperative to find out whether your property connects to a public sewer system or not. If it turns out that it does not, you may need to obtain a septic clearance to satisfy your lender.

Water Quality Certification - This will ensure the safety of the water quality on the property as well as ensure you have enough water flow so you won’t run out.

Origination and Loan Charges - These can vary but it is not uncommon for lenders to add in fees for processing your loan as well as documenting preparation, closing, underwriting, funding and miscellaneous fees.

Association and Maintenance fees - Some housing developments charge maintenance fees which must be paid annually. This means you will need to pay them upfront at the time of purchase.

Utility Service Fees - Always make sure you have reviewed charges for utilities such as water, cable, electricity, gas, satellite TV, garbage, phone, sewer, etc. The costs for these fees can rise quickly.

Legal costs - These costs go to cover the fees charged by your lawyer for reviewing the terms of the offer, conducting a title search, signing over the mortgage, registering the new title, determining adjustment costs and obtaining any documentation that may be relevant.

Interest adjustment - This fee may be necessary in order to cover a gap that exists between the closing date at the time of purchase and the first payment date for the mortgage.

Home inspection Cost - It is always a good idea to have an inspection completed prior to closing on the property in order to evaluate both the mechanical and the structural condition of the property. Your lender may even require this.

Moving Cost - This should be an obvious cost of buying a home; however, many buyers simply overlook this cost. The actual cost will depend on the distance you are moving as well as the amount of good and furniture to be moved.

Appliances - Are all the appliances included in your new property? If not, you may be facing the cost of purchasing new ones when you move in.

Mortgage Life Insurance - This is a special type of insurance coverage that will cover the costs of discharging your mortgage in the event of your death or even severe illness.

Landscaping - If you are purchasing a new construction home, there may be costs associated with landscaping, particularly during the first year to two years you live in the home.

Annual Maintenance - Often overlooked, these fees can add up quickly if you are not prepared for them. To maintain the value of your home, you should be prepared for future painting as well as the replacement of items such as furnaces, roof shingles, appliances, etc.

While the list of hidden costs of home ownership may be surprising, the good news is that there are steps you can take to prepare.

First, make sure you are prepared for closing costs associated with your loan. Generally, you can plan to pay between 3% and 5% of your total loan cost for closing costs. Be prepared for maintenance and repair costs by making it an annual routine. Budget for these costs on an annual basis. Plan to put back at least 1% of your home’s purchase price for annual repairs and maintenance.

Finally, take the time to be sure your home is covered by appropriate levels of homeowners insurance in the event of fire or theft.

In the past two years, the real estate market has certainly undergone some dramatic changes. Shortly after the 21^st century was ushered in, the market was nothing short of sizzling, with bidding wars characterizing the market climate. After just five years; however, signs of cooling emerged and now it appears buyers have gained the upper-hand in a market that is decidedly soft.

Today, the market presents a challenge for both first time home buyers and sellers; who have little experience in a soft market following a market that remained strong for a prolonged period of time. In many regions the inventory of homes for sale continues to rise and listing prices are now lower than the comparable sales prices of last year. To make things even more difficult, the number of closings has fallen lower than last year as well.

Despite the current buyer friendly climate; however, many first-time home buyers are somewhat reluctant to take advantage of price declines, feeling the market may have yet more surprises in store. In addition, surprisingly, reports indicate home buyers may feel that homes are still overpriced, despite declining asking prices.

While there is certainly no guarantee that home prices will not continue to fall, there are some indications that home sellers may be more eager than ever to cut a deal. If you are first-time home buyer and have been waiting on the sidelines, wondering if now is the right time to buy, this could be the news you’ve been waiting on. In fact, the number of homeowners in default on their adjustable rate mortgages is continually climbing. Some homeowners have even elected to simply walk away and let the lender foreclose on the home just to get out debt problems. What does this mean for first-time home buyers? Better deals in the housing market. Here are some advices for first-time home buyers:

The most important element that for first-time home buyers should take into consideration when thinking about purchasing is the direction real estate prices have taken in their local area. While national trends may be somewhat alarming, in many cases these trends can have extremely little to do with your local area. The best key to avoid overpaying is to keep an eye on local trends.

If home prices in your local area have not recently fallen much and interest rates are still low, now could be a good time to buy. To avoid overpaying, it is important to keep the following tips in mind.

First, always research your local market. Use a comprehensive market analysis to determine if the home you are considering is priced fairly in relation to comparable houses for sale in the local area. Actually, this should occur before you even begin to shop around for a house. To do this, simply gather the listings of homes in your local area and price range. You will also need a list of the most recent sales prices as well as the original listing prices of comparable homes in the local area. This information is widely available on sites such as www.realtor.com. You can also obtain this information from your local realtor.

Next, make sure you are asking the right questions. Find out when the home seller bought the home, how much they paid for it and why they are now selling it now. These critical questions, asked early during the home buying process, can help to ensure you do not overpay for a home simply because the home seller does not want to lose money. Be aware that sellers and agents can be reluctant to provide this information; however, if you let them know that you need this information to make a purchase offer, they will often be more willing to provide you with the information you need.

Keep in mind that home seller who either purchased their homes awhile back or who paid much less than they are now asking will typically have more room to negotiate regarding price. In addition, they may be more willing to negotiate if they must move due to relocating for a job or because they simply can no longer afford the payments.

You may also be able to find a good deal by looking for a home that may be in a great location but simply needs some freshening up, so as new paint, flooring, an updated kitchen, etc. Homes like these typically receive less attention and consequently home sellers are often more willing to negotiate.

Always make sure you get an inspection of any home you consider buying and include an inspection contingency clause in the purchase contract when you make an offer. Doing so will ensure you have the right to hire a professional inspector who can identify problems and needed repairs. If it turns out that the repairs identified are significant you can then make a counter offer to your original offer that will reduce the price by the costs for making the needed repairs.