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Originally published: January 3, 2014 12:53 PM
Updated: January 5, 2014 8:03 AM

By ILYCE GLINK AND SAMUEL J. TAMKIN
 Tribune Media Services

A for sale sign stands outside a home on Long Island.

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Selling Long Island homes

A year ago, at the end of December 2012, we saw far fewer “For Sale” signs. And this year, there are even fewer.

The surprising thing about the real estate market is its resiliency. It never fails to surprise how decisively a market turns. When it’s time, it’s time. And it’s clear to us that 2014 is looking very good for real estate.

There are a few troubled spots on the horizon: Mortgage interest rates are at least one percentage point higher than they were a year ago. And, home prices are higher. That means homes are less affordable than they were, particularly since incomes haven’t risen, in real terms, in years.

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That’s good news, and not so good news for sellers. It’s great that home prices are rising. In part, homes that were in foreclosure or listed as short sales, have closed and now prices are rising again. But, rising interest rates (depending on how high they go), mean fewer buyers can afford to pay those higher prices

At the end of 2011, mortgage interest rates reached 3.7 percent, before falling back. In 2012, mortgage interest rates were about 3.3 percent on a 30-year fixed-rate mortgage. We ended the year with mortgage interest rates around 3.5 percent for a 30-year fixed rate loan. This year, we will end at 4.3 percent for a 30-year fixed rate mortgage. (If you’re wondering, we think these rates are still great from a historical perspective.)

The Federal Reserve has indicated it will now pull back its monthly spend of $85 billion in mortgage-backed securities and Treasury securities, which it did to keep interest rates at historic lows through 2015, or when the employment rate falls to 6.5 percent. The economy is improving. Third quarter 2013 GDP numbers were revised upward to 4.1 percent. The economy hasn’t grown that fast in years.

So, with low inventory, still low mortgage interest rates, and modestly rising prices, here’s what you need to do to get your home in selling shape for 2014: My classic New Year’s Resolutions for home sellers:

–Overcome any possible objections a buyer would have.

Buyers are always looking for a reason not to buy your house. Your job as a seller is to eliminate any potential objections that would stand in the way for a buyer to make an offer. If you really want to sell quickly, you’ll work hard to exceed the buyer’s expectation of your home as well. If your home is competitively priced, and your home’s condition exceeds a buyer’s expectations based on other homes in the neighborhood, you’ll get an offer — even if it isn’t the offer you want.

–Get your home into selling shape.

Cleaning your home is a must. After that, you should consider hiring a stager to give your home the television-worthy polish so many buyers expect today. (Yes, they want your home to look like something they’d see on HGTV.) Assess what other sort of work needs to be done, such as fixing things that don’t work, touching up paint, or cleaning or replacing your carpets. Decide if you need to update your landscaping, and paint, clean or tuck point your home’s exterior. And if you’re selling in January, clear out the holiday decorations as quickly as possible.

–Invite at least three agents to create a comparative marketing analysis (CMA).

Often, sellers simply call the agent who sold them their home to list it. While you may wind up hiring that person, you’ll be doing yourself a favor if you invite a couple of other agents in from different firms. That’s because each will bring different ideas to the table about how much your house is worth and what kind of marketing plan will work. They’ll all have different experiences to draw on and have different buyers in mind who may want to make a quick offer.

–Understand what it will take to sell your home.

If you live in an area littered with foreclosures, you may have to meet that price point in order to sell. Is it worth it? Probably not, but you’ll have to really evaluate price and timing in order to get the most for your property. If homes have begun to appreciate, you might be pleasantly surprised. Again, a CMA will be incredibly helpful.

–Be realistic about the market.

Find out what types of properties are selling in your area and how many days they’re sitting on the market. Accept the reality of your local market and make sure you price your home realistically. Don’t blame your broker if you don’t get 3 offers over your list price within 24 hours of putting your home on the market. Sellers who set sky-high (or even pretty high) prices could wait months or years for an offer (one of my neighbors has been trying to sell his overpriced home for years) and may wind up with the same price they would have had if they’d priced their home correctly the first time — or a lot less. In this real estate market, one of the worst things you can do is overprice your home from the start. The more realistic you are, the better off you’ll be.

–Rent if you can’t sell and buy at the same time.

We don’t recommend putting in an offer on another property until you have some serious interest in your current property or unless you have enough cash to cover the expenses of both properties for six to 12 months. It’s fine to start researching other neighborhoods, but if you’re not sure what you want to do, consider renting on a short-term or month-to-month lease. While a double move is a pain, and does have some added costs, it’s a lot cheaper than carrying two mortgages for two years.

–Read all documents thoroughly before you sign them.

Why would someone sign a legal document he or she hasn’t read? I’m not sure, but home sellers do it every day. If you’re going to sell (or buy) in the coming year, promise yourself that you’ll take the time to read and understand the listing contract, offer to purchase, and loan documents for your next purchase. (If you’re taking back a loan for the home buyer, have an attorney prepare the documents so you are sure to be protected.) Unless you’ve got cash to spare, a mistake in these documents and the warranties they contain could seriously affect your finances.

–Don’t be greedy.

One big mistake many sellers make is to get a little greedy, particularly if the first offer is above the minimum acceptable price you’ve set. Then the negotiation becomes a game of how much you can get.

Remember, a successful sale means everyone walks away feeling happy. If you get so greedy that the buyer walks away, you’ve let the deal get the best of you. Resolve to be reasonable and you’ll end up shaking hands with the buyer at the closing. You should also know that there aren’t unlimited buyers out there, and if you lose one it might take you quite some time to find another.

(Ilyce Glink is the creator of an 18-part webinar and ebook series called “The Intentional Investor: How to be wildly successful in real estate,” as well as the author of many books on real estate. She also hosts the “Real Estate Minute,” on her YouTube.com/expertrealestatetips channel. If you have questions, you can call her radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST. Contact Ilyce and Sam through her website, www.thinkglink.com.)

A pair of cold fronts is bringing freezing temps to the Destin area.

Landscaping like this rose plant was covered in ice Friday morning along Highway 98 as temps slid to 30 degrees. With the wind chill it felt like 18 making for a bone-chilling morning in Destin. While temps will rise slightily over the weekend, forecasts call for a low of 26 degrees in Destin on Monday night.

Check out the photos of icy Destin at right. Share your photos of the Jack Frost on the Emerald Coast, by clicking here.

Read a Northwest Florida Daily News story about the cold snap, Click Here

CITRUS AND THE COLD

As temps approach the mid-20s in Destin on Monday, Master Gardener Larry Williams says residents shouldn’t need to harvest in advance of the big chill.

“You are fortunate there. You got two bodies of water, the bay and the Gulf, that help moderate colder temperatures,” he said, adding that generally the fruit won’t be damaged until temps hit the lower 20s for sustained periods of time.

Williams advises that young citrus trees are more vulnerable, but are easier to cover. He recommends using cloth and removing it after the cold snap since plastic sheeting traps the heat of the sun, which could damage the plant more long-term than the freeze.

– William Hatfield

HERE ARE TIPS FROM GULF POWER FOR DEALING WITH THE COLD SNAP

Cold weather is here and expected to continue into early next week along the Gulf Coast. Here are some tips to keep cozy and save money and energy during the winter season. Many more ideas are available at MyGulfPower.com.

Things you can do to save money and energy:

• Set your thermostat to 68 degrees or lower. For every degree below 68 you’ll save 10 percent on your heating costs.

• An electric blanket is more economical than heating the entire house all night long.

• Open shades, drapes and blinds during the winter so sunlight can enter the house and help to warm the home naturally. At night, close shades, drapes and blinds to help retain heat.

• Operate your ceiling fan on low speed and switch in reverse to push hot air from the ceiling level to the occupied-lower areas of the room. Use fans only when the room is occupied.

• Use a portable electric heater to heat only a small area. Purchase models that are thermostatically controlled. Keep it at least three feet from items that could catch fire like curtains or furniture. Make sure you have working smoke detectors on every floor and in every sleeping room of your house.

• Make sure vents and return-air registers are not blocked by furniture, draperies, doors or other obstacles.

• Don’t use your oven to heat your home — it’s very costly and most importantly, it’s very dangerous.

Things you can do to prepare your home for winter:

Temperature settings

• Heating your house can make up as much as half of your electricity bill so direct most of your attention to your thermostat. Keep it at 68 and wear warmer clothes.

• Programmable thermostats are a good investment, or you can take advantage of Gulf Power’s Energy Select. Energy Select is Gulf Power’s advanced energy management program that offers a lower price for electricity 87 percent of the time.

Heating and cooling equipment

• If your heating system is an older, less-efficient unit, upgrade to a geothermal heating and cooling system — or a high efficiency air-source heat pump. Talk to a Gulf Power representative for a free Energy Checkup: 1-877-655-4001.

• A complete tune-up of the home heating system can cost anywhere from $50 to $100 or more, but this is a worthwhile investment and can reduce your heating bill from 3 to 10 percent.  Remember to replace your filter every month. Talk to a Gulf Power representative: 1-877-655-4001.

• Duct leakage can account for 20 percent of your heating and cooling cost. Getting ducts sealed should be at the top of the list for making your home energy efficient.

Insulation

Adding insulation to your attic is one of the most cost-effective energy saving measures.

Weather-stripping and caulking

Weather-strip door jambs and caulk any cracks around windows to prevent cool air from entering your home.

Window units

If you have a window air conditioning unit, remove it for the winter months to prevent heat from escaping through and around the unit. If it can’t be moved, put a cover over it to prevent drafts.

Humidifier

Use a humidifier to keep your home more comfortable. Adding moisture allows you to reduce the thermostat setting without feeling colder.

Customers can get a free Energy Checkup online or at your home with an appointment. Gulf Power energy experts will analyze your house and electricity use, and look for ways to make the house more energy efficient. Just go to MyGulfPower.com or call 1-877-655-4001.

Nearly a year after a committee began work on how to revitalize Levee Park, there’s no concrete plan in place.

But one is close — and those involved say they’re looking forward to creating a sustainable future for a neglected park that saw several bright moments this year — from a popular new restaurant to live music performances.

Mayor Mark Peterson, for one, is ready to have some solid ideas on the table.

Peterson ran his 2012 campaign in part on the dream of bringing the park back into the public spotlight, and in February 2013 formed the Levee Park Committee to explore options.

“I hope I see from (the committee) a plan that they all embrace and share with the community so they can get excited about it,” Peterson said.

The committee has put in substantial work throughout the year, though the

work suffered from a number of delays, including consultants dealing with unexpected personal issues. So Peterson said he’s not worried about waiting another month. He’s satisfied with how far the committee has come, he said.

“I’m realistic,” he said. “It’s a journey, not a race. It’s going to happen.”

In order to speed up the process, the committee and the hired

consultants from the University of Minnesota have decided to release the final plans and then seek comments about them. The initial plan was to hold a public input meeting in October, but the meeting was canceled due to some of the delays.

Committee member Frank Pomeroy said the committee has found other

ways to get input, including from those who attended a number of community events, including the Live at the Levee music and arts series that drew hundreds of people.

‘Make it attractive. Make it active’

Committee members don’t have a clear idea of what new park designs might look like — they’re waiting on the consultants to produce final renderings — but they know what they want the park to accomplish.

They want it to connect to downtown, to be seen from blocks away, to be a destination for residents and tourists, both those on foot and those docking boats on the Mississippi River.

As former Winona city manager and committee member Eric Sorensen said: “Make it attractive. Make it active.”

The city has taken steps in that direction already, with officials and volunteers planting flowers and creating a pavilion

on the spot where the Wilkie replica steamboat sat before it was torn down in 2008. It hopes to build on that success with landscaping and other features.

There are challenges to that vision that can’t be solved.

There’s the location, tucked behind downtown buildings. There’s the concrete levee, which while doing an essential job protecting the city from flooding doesn’t offer much by way of river views.

And others that can’t be easily solved, such as the tall fence that protects the Union Pacific Railroad tracks. Spokesman Mark Davis suggested there may be wiggle room for change, but he maintained in an interview what the railroad’s view has long been: Any changes need to keep people from wandering away from designated crossings and not include development on railroad property.

The railroad, however, has shown it supports the efforts, donating about $1,500 to events held at the park.

And others have found creative ways to solve issues such as location with a new restaurant and hosting high-profile events that have drawn hundreds to the park.

Complementing efforts

The Boat House opened in May on the levee, offering a full lunch and dinner menu, as well as occasional live music.

And a separate group of artists and community leaders came up with plans to spotlight the park with the Live At The Levee series, which debuted in October, offering a day of free live music and activities. The organizers didn’t wait for winter to end to hold the next one, hosting the second event in a large heated tent in December. An estimated 2,000 people or more attended the two events, organizers said.

One organizer, Will Kitchen, has a bit of perspective on launching arts events — he’s been involved with the creation of Theatre du Mississippi, the Great River Shakespeare Festival and the Frozen River Film Festival. He said he’s never seen excitement for an event grow so quickly as it did for Live at the Levee.

Committee members  all said the events have been a complement to the new vision for the park.

“We really wanted to do this to support the Levee committee,” Kitchen said.

“Thank God they did,” Pomeroy said.

It’s proved, Peterson said, that there’s ample interest in the community in spending time at the levee. Now, he said, it’s up to the committee to come up with a long-term, financially sustainable plan.

Pomeroy agreed.

“Good things are coming from this,” he said. “No doubt about it.”