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Santa Cruz Sentinel S2 Sunday, MarCh 9, 2014 After flatlining during the economic downturn that began around 2008, hous- ing markets in many re- gions of the United States and Canada have shown signs of recovery. Those in the market to buy and sell may find this year presents an ideal opportunity to do just that. According to the real estate listing Web site Zil- low, home values rose 5.1 percent across the United States between February 2012 and February 2013. The latest forecasts from Canada Mortgage and Housing Corporation indi- cate a strong housing de- mand into 2014, at which time a strengthened econo- my will energize both resale and new housing markets. Buyers will need to be prepared to purchase in- ventory right away, while sellers will need to price their homes right for the best chance of sale. The following are some guide- lines. BUYERS Having a plan is essen- tial when buying a home, as such a purchase is not something buyers should take lightly. Establishing a budget is the first step.This means taking inventory of savings, expenses and bor- rowing power. It is advis- able to sit down with a lend- er and do a run-through of what you can afford. By providing key financial in- formation, including earn- ing statements, existing debt and credit history, buyers can quickly learn how much they're qualified to borrow and how much they are comfortable bor- rowing. This helps buyers zero in on homes in their price range. Being preapproved for a mortgage is advantageous when it comes time to make offers on properties. It shows sellers that buyers are seri- ous and that they have been vetted by the bank. Many buyers conduct a lot of research online prior to stepping into a home. This research lasts an av- erage of six to eight weeks, according to the National Association of Realtors. Homework includes inves- tigating neighborhoods and school systems, com- paring the going rates of homes in the area, as well as figuring out which fea- tures are desired in a home. It also is important to hire a buyer's agent. Such professionals send buyers listings that fit their home- search parameters, which saves buyers a lot of time and effort. Some agents preview homes for their buyers, even going so far as to identify overpriced listings that can be avoid- ed or finding sellers who are willing to negotiate. A buyer's agent works for the buyer, meaning there will be no conflict of interest. Agents assist buyers in the negotiating process, using their knowledge of the real estate market to help buy- ers make realistic offers that are likely to be accept- ed while providing a wealth of information about hous- ing trends, area services and home improvement vendors. When sellers accept buy- ers' offers, buyers must then ar- range home inspections. An inspec- tion is of- t e n t i m e s included as a contract contingen- cy, and buy- ers have a right to can- cel contracts if inspections find that a home is unsatis- factory structurally. SELLERS Sellers competing for business in a thriving hous- ing market also have to do their share of work. It is unlikely sellers will be able to list their homes for sale one day and have dozens of offers the next. Today's buyers are much more con- servative, and homes will have to be presented in the best light and listed at rea- sonable prices. Sellers can start the pro- cess of selling their homes by research- ing recently sold homes in their neigh- b o r h o o d s , paying partic- ular attention to final sales prices. This information may be avail- able through tax records, and some real estate sites publish the data online. Sellers can then compare this information to what they still owe on their mortgages if their homes are not paid off, and this should give sellers an idea of their potential profits. Sellers also can bene- fit from working with real estate agents, as it can be quite difficult and stress- ful for homeowners to sell their homes on their own. Agents have access to mul- tiple listing databases and industry contacts, infor- mation that is quite valu- able when selling a home. Agent will do their own assessments of a home to help sellers price the home accordingly based on mar- ket conditions. In addition, real estate agents can in- form sellers about which, if any, repairs or changes may need to be made to make a home more attrac- tive to prospective buyers. Real estate agents also help sellers through the nego- tiating process, finding a balance between what the buyer wants to pay and how much the seller wants for the home. Housing markets are once again looking up and many people may find now is the time find their next home. Understanding the process and getting guid- ance from real estate pro- fessionals makes the pro- cess of buying and selling a home that much easier. by Metro Creative Services Begin the new year in a new home ...home values rose 5.1 percent across the United States between February 2012 and February 2013.

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