Tuesday, September 11, 2012
Friday, August 3, 2012
Wednesday, August 1, 2012
Wednesday, July 25, 2012
Friday, July 20, 2012
Wednesday, July 11, 2012
Friday, July 6, 2012
The American Dream is Alive, In Spirit
"Buying a home remains a problematic proposition fraught with underwriting road blocks and money down, but a housing crisis that has lingered for seven years hasn't put a damper on the desire to own a home.
Real estate valuation company Integra Realty Resources (IRR) found that even after home prices slid an average 54.2 percent during the housing downturn, three out of four Americans want to be a homeowner and consider it a major goal in life.
The study surveyed non-homeowners ages 22 to 50 in 11 major U.S. markets, and found that 75 percent of those surveyed reported that owning a home is important.
Virtually the same percentage of those planning to buy who are 30-years-old or older gave "I have always dreamed of owning my own home," as a reason to buy.
However, more than 60 percent don't plan to buy a home soon.
Particularly among younger households, consumers are significantly concerned about job security and their inability to save enough cash for a down payment.
The survey said 31 percent of respondents are not planning to buy a home because they lack a down payment. Down payment levels escalated after the market crashed and lenders became more stringent to reduce their risk.
"The down payment conundrum continues to suppress demand with no easy resolution in sight. For this reason and the continuing foreclosures is why the homeownership rate is decreasing. Some respondents feel that purchasing a home may be too risky in the near future," says Benjamin Loughry managing partner at IRR-Dallas/Fort Worth." [Read more]
Real estate valuation company Integra Realty Resources (IRR) found that even after home prices slid an average 54.2 percent during the housing downturn, three out of four Americans want to be a homeowner and consider it a major goal in life.
The study surveyed non-homeowners ages 22 to 50 in 11 major U.S. markets, and found that 75 percent of those surveyed reported that owning a home is important.
Virtually the same percentage of those planning to buy who are 30-years-old or older gave "I have always dreamed of owning my own home," as a reason to buy.
However, more than 60 percent don't plan to buy a home soon.
Particularly among younger households, consumers are significantly concerned about job security and their inability to save enough cash for a down payment.
The survey said 31 percent of respondents are not planning to buy a home because they lack a down payment. Down payment levels escalated after the market crashed and lenders became more stringent to reduce their risk.
"The down payment conundrum continues to suppress demand with no easy resolution in sight. For this reason and the continuing foreclosures is why the homeownership rate is decreasing. Some respondents feel that purchasing a home may be too risky in the near future," says Benjamin Loughry managing partner at IRR-Dallas/Fort Worth." [Read more]
Wednesday, July 4, 2012
Happy 4th of July!
From our family to yours we would like to wish you a very safe and fun 4th of July!
Wednesday, June 27, 2012
Friday, June 22, 2012
Thursday, June 21, 2012
Getting an Offer
"Have you ever wondered what it takes to get more showings and to finally seal the deal? If your home has been lingering on the market for months, you might be asking yourself just that question.
This question is more than just idle curiosity. When and how quickly you sell your home can mean the difference between buying the dream home before it's scooped up and avoiding carrying two mortgages.
There is an old adage used in real estate that says, “location, location, location.” While location is important for certain reasons (close to schools, crime levels, neighborhood appearance), there is something is far more important when it comes to making a deal. The new adage should be “price, price, price.”
You can sell any home if it's priced to sell. Pricing right is about more than just pricing along with the competition. Sometimes it means listing at a lower price to make your home more attractive. Of course no one is willing to let someone just walk away with their home, but in a strong buyers market like we have today you must be realistic about what price will truly entice a buyer.
Experts say that if you overprice a home at the start you're making a big mistake. Buyers look for new listings. They'll pass right over your home if it doesn't compare to the competition. They could also see your price reduction laster on as a sign that you are willing to go even lower on your price.
This is not to say you shouldn't do a price reduction. If you already have your home on the market then you should consider if a price reduction will bring in buyers. An overpriced home will never sell in today's market. There are simply too many other good deals out there." [Read more]
This question is more than just idle curiosity. When and how quickly you sell your home can mean the difference between buying the dream home before it's scooped up and avoiding carrying two mortgages.
There is an old adage used in real estate that says, “location, location, location.” While location is important for certain reasons (close to schools, crime levels, neighborhood appearance), there is something is far more important when it comes to making a deal. The new adage should be “price, price, price.”
You can sell any home if it's priced to sell. Pricing right is about more than just pricing along with the competition. Sometimes it means listing at a lower price to make your home more attractive. Of course no one is willing to let someone just walk away with their home, but in a strong buyers market like we have today you must be realistic about what price will truly entice a buyer.
Experts say that if you overprice a home at the start you're making a big mistake. Buyers look for new listings. They'll pass right over your home if it doesn't compare to the competition. They could also see your price reduction laster on as a sign that you are willing to go even lower on your price.
This is not to say you shouldn't do a price reduction. If you already have your home on the market then you should consider if a price reduction will bring in buyers. An overpriced home will never sell in today's market. There are simply too many other good deals out there." [Read more]
Friday, June 15, 2012
Bathroom Remodels Soaking Up Marketplace
"There are a few places where most of us spend a lot of time in the home: the kitchen, bedroom, and bathroom. So it makes sense that bathroom remodels are saturating the renovation marketplace.
According to the National Association of Homebuilders, bathroom remodel projects have increased in the last two years, up 17 percent. In fact, they are the most common remodeling project these days.
But in these tighter economic times, surveys show that homeowners aren't necessarily going for the McMansion-style bathroom, but rather something that suits their needs. Practicality is top of mind.
For sellers, this means doing all you can to position the all-important bathrooms in the best light. If you're planning to do some remodeling, at the top of the list are things like ceiling-mounted "rain" shower heads, handheld shower heads, doorless showers. The big whirlpool tubs aren't quite as popular as a bit more luxurious and spacious shower.
But even though bigger showers are popular, homeowners and buyers are highly interested in green technology and energy-saving devices. They're looking to save money on their utility bills each month.
So, be prepared for buyers to ask questions about your utility bill and what types of energy/cost-savings devices you have installed, such as a dual-flush toilet. One button flushes solids by using more water; the other button flushes liquids using less water." [Read more]
According to the National Association of Homebuilders, bathroom remodel projects have increased in the last two years, up 17 percent. In fact, they are the most common remodeling project these days.
But in these tighter economic times, surveys show that homeowners aren't necessarily going for the McMansion-style bathroom, but rather something that suits their needs. Practicality is top of mind.
For sellers, this means doing all you can to position the all-important bathrooms in the best light. If you're planning to do some remodeling, at the top of the list are things like ceiling-mounted "rain" shower heads, handheld shower heads, doorless showers. The big whirlpool tubs aren't quite as popular as a bit more luxurious and spacious shower.
But even though bigger showers are popular, homeowners and buyers are highly interested in green technology and energy-saving devices. They're looking to save money on their utility bills each month.
So, be prepared for buyers to ask questions about your utility bill and what types of energy/cost-savings devices you have installed, such as a dual-flush toilet. One button flushes solids by using more water; the other button flushes liquids using less water." [Read more]
Thursday, June 14, 2012
Friday, June 8, 2012
Wednesday, June 6, 2012
Thursday, May 31, 2012
Wednesday, May 30, 2012
Friday, May 25, 2012
Thursday, May 24, 2012
Friday, May 18, 2012
Fixed Mortgage Rates Hit Record Lows Again
"In Freddie Mac's results of its Primary Mortgage Market Survey®, average fixed mortgage rates again reached new record lows. The 30-year fixed-rate mortgage at 3.79 percent continues to remain well below 4 percent and 15-year fixed-rate mortgages are also slightly down at 3.04 percent." [Read more]
Thursday, May 17, 2012
Friday, May 11, 2012
Five Musts Before You List Your Home
"Deciding to list your home for sale is a momentous time. It means you will be moving on to a new stage of life, no matter if you’re moving up or sizing down. Take a moment to look over these tips for what every seller should do before they put their home on the market.
- Organize Your Paperwork: Every homeowner should have a detailed list of all past repairs, updates, and upgrades they’ve made. This will help your agent know what should be mentioned on the MLS. Did you put on a new roof in 2010 or a install a new water heater in 2009? These are great selling features because they means less work in the future for the prospective buyer. Also included in this list should be any home warranty information. These warranties will most likely transfer with title of the home. [Read more]
Wednesday, May 9, 2012
Friday, May 4, 2012
Fixed Mortgage Rates Average New All-Time Record Lows
"In Freddie Mac's results of its Primary Mortgage Market Survey®, the average fixed mortgage rates found new all-time record lows, continuing to help keep homebuyer affordability high. The 30-year fixed averaged 3.84 percent, down from its previous all-time record low of 3.87 percent last registered on February 9, 2012. The 15-year fixed averaged 3.07 percent, also dropping below its previous all-time record low of 3.11 percent set April 12 of this year. The 1-year ARM also averaged a new all-time record low in the PMMS at 2.70 percent." [Read more]
Tuesday, May 1, 2012
Thursday, April 26, 2012
Tuesday, April 24, 2012
Friday, April 20, 2012
What Constitutes A Good Home Inspection?
No matter if you are buying a house or selling a house, they both have to be inspected. Mortgage Daily News has put together a great article highlighting the things an inspector will be checking for on a home inspection.
"According to the Society, a home inspection is a visual assessment of a home's structure and systems. In some cases, in practice at least, an inspection should extend beyond the visual to the operational, but an inspection should look at the following which is based in part on ASHI Standards of Practice and in part on experience with dozens of inspectors in several states." [Read more]
Source: Mortgage Daily News
Wednesday, April 18, 2012
Friday, April 13, 2012
Economy Sparks Remodeling: How To Ensure A Successful Project
"Springtime generates a lot of home improvement activity. Many buyers are out shopping for their new home. With the purchase of their home, the desire to remodel often comes next. For others, the drastically fluctuating housing prices are causing homeowners to stay put and that’s causing them to want to remodel their existing footprint.
Whether it’s a room addition or the renovation of a kitchen to upgrade amenities and make the space feel more comfortable to suit your needs, precautionary steps to get the most out of your remodeling project will create the best outcome.
Some of the most popular remodeling projects have to do with creating homes that are livable for all ages. The National Association of Home Builders says, in 2010, that 62 percent of surveyed builders were working on “aging in place” modifications.
That means granny flats or in-law apartments (extra rooms with kitchenettes) are becoming staples in homes. As baby boomers ease into their golden years this type of remodeling project will continue to grow. Entry-level bedrooms are also popular additions due to the ease of access for the elderly.
Some remodeling companies are now requiring their staff to become Certified Aging in Place specialists so they can offer expertise in designing and modifying buildings and homes for the elderly. Another hot trend is using outdoor living space to expand the home’s square footage. What’s hot in outside remodels? It may be expensive but natural stone is all the rage. Gourmet grilling kitchens, fireplaces, flat screen TVs with surround sound and big comfy couches turn the backyard into a cozy space to relax and entertain.
But regardless of which type of remodel you’re planning to do, finding the right contractor for the job is vital and that can be a difficult task.
The National Homebuilders Association offers some tips for homeowners to help them navigate the process. Here are some important precautionary measures to take before your hire a remodeler.
Check with NAHB.org to find a remodeler who is a member of the National Association of Homebuilders. You can also check with the Better Business Bureau at BBB.org to look up the company’s rating. Of course, family and friends can also offer referrals but checking with professional associations can help provide background information that a friend might not be able to.
Another great way to find a remodeler is to scope out the companies who are working in the neighborhood or an area that you like. Try to stop in and see if you’re able to tour the house and speak with the homeowners. Be sure to ask questions about how smoothly the overall project went and if the crew kept the area clean during the project." [Read more]
Whether it’s a room addition or the renovation of a kitchen to upgrade amenities and make the space feel more comfortable to suit your needs, precautionary steps to get the most out of your remodeling project will create the best outcome.
Some of the most popular remodeling projects have to do with creating homes that are livable for all ages. The National Association of Home Builders says, in 2010, that 62 percent of surveyed builders were working on “aging in place” modifications.
That means granny flats or in-law apartments (extra rooms with kitchenettes) are becoming staples in homes. As baby boomers ease into their golden years this type of remodeling project will continue to grow. Entry-level bedrooms are also popular additions due to the ease of access for the elderly.
Some remodeling companies are now requiring their staff to become Certified Aging in Place specialists so they can offer expertise in designing and modifying buildings and homes for the elderly. Another hot trend is using outdoor living space to expand the home’s square footage. What’s hot in outside remodels? It may be expensive but natural stone is all the rage. Gourmet grilling kitchens, fireplaces, flat screen TVs with surround sound and big comfy couches turn the backyard into a cozy space to relax and entertain.
But regardless of which type of remodel you’re planning to do, finding the right contractor for the job is vital and that can be a difficult task.
The National Homebuilders Association offers some tips for homeowners to help them navigate the process. Here are some important precautionary measures to take before your hire a remodeler.
Check with NAHB.org to find a remodeler who is a member of the National Association of Homebuilders. You can also check with the Better Business Bureau at BBB.org to look up the company’s rating. Of course, family and friends can also offer referrals but checking with professional associations can help provide background information that a friend might not be able to.
Another great way to find a remodeler is to scope out the companies who are working in the neighborhood or an area that you like. Try to stop in and see if you’re able to tour the house and speak with the homeowners. Be sure to ask questions about how smoothly the overall project went and if the crew kept the area clean during the project." [Read more]
Thursday, April 12, 2012
Mortgage Rates Fall to Record Lows
"Mortgage rates fell this week, with the 15-year fixed rate hitting yet another record low, amid news of weak job growth during the month of March.
Borrowers seeking 15-year mortgages, a popular choice for those looking to refinance, were rewarded with an average interest rate of just 3.11% this week, down from last week's 3.21% and more than one percentage point lower than a year earlier, according to Freddie Mac (FMCC, Fortune 500)'s weekly mortgage rate survey.
The rate on 30-year fixed mortgage also fell, to 3.88% from 3.98% the week before, just short of its own record low of 3.87%, set back in February.
The declines were a reversal from a few weeks ago when it appeared as if interest rates would start to creep up. Frank Nothaft, Freddie's chief economist, attributed the drop to concerns over the economy brought on by a weak jobs report for the month of March that was released last week." [Read more]
Borrowers seeking 15-year mortgages, a popular choice for those looking to refinance, were rewarded with an average interest rate of just 3.11% this week, down from last week's 3.21% and more than one percentage point lower than a year earlier, according to Freddie Mac (FMCC, Fortune 500)'s weekly mortgage rate survey.
The rate on 30-year fixed mortgage also fell, to 3.88% from 3.98% the week before, just short of its own record low of 3.87%, set back in February.
The declines were a reversal from a few weeks ago when it appeared as if interest rates would start to creep up. Frank Nothaft, Freddie's chief economist, attributed the drop to concerns over the economy brought on by a weak jobs report for the month of March that was released last week." [Read more]
Monday, April 9, 2012
Banks Upbeat About Mortgage Performance, Looser Credit Looms
"Mortgage lenders aren't rolling out the red carpet on home loans just yet, but with fewer delinquencies and defaults, there's optimism looser credit for home loans has become a topic of board room chatter.
FICO's first quarter survey of bank risk professionals found sentiments about loan repayment and credit availability more upbeat than in the last quarter.
The survey, conducted for FICO by the Professional Risk Managers' International Association (PRMIA), found fewer lenders expecting a rise in delinquencies on home loans, as well as car loans and small business loans, than at any time since FICO launched its survey in early 2010. The survey also examined sentiments on student loans and credit cards.
"As unemployment falls, even modestly, and four years of de-leveraging begin to pay dividends, bankers are allowing themselves to feel some optimism," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. FICO is a leader in credit scoring systems.
The survey found the number of respondents expecting mortgage delinquencies to rise during the next six months was 12 percentage points lower than last quarter – dropping from 47 to 35 percent. Similarly, only 33.1 percent expect increases in home equity line delinquencies, compared to 44.3 percent last quarter. The overall trend in both categories has been trending more optimistic for the past eight quarters, FICO reported. Viewed another way, the number of respondents who believe mortgage and home equity line delinquencies will decrease hit an all time high, 26 percent and 23.1 percent respectively." [Read more]
FICO's first quarter survey of bank risk professionals found sentiments about loan repayment and credit availability more upbeat than in the last quarter.
The survey, conducted for FICO by the Professional Risk Managers' International Association (PRMIA), found fewer lenders expecting a rise in delinquencies on home loans, as well as car loans and small business loans, than at any time since FICO launched its survey in early 2010. The survey also examined sentiments on student loans and credit cards.
"As unemployment falls, even modestly, and four years of de-leveraging begin to pay dividends, bankers are allowing themselves to feel some optimism," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. FICO is a leader in credit scoring systems.
The survey found the number of respondents expecting mortgage delinquencies to rise during the next six months was 12 percentage points lower than last quarter – dropping from 47 to 35 percent. Similarly, only 33.1 percent expect increases in home equity line delinquencies, compared to 44.3 percent last quarter. The overall trend in both categories has been trending more optimistic for the past eight quarters, FICO reported. Viewed another way, the number of respondents who believe mortgage and home equity line delinquencies will decrease hit an all time high, 26 percent and 23.1 percent respectively." [Read more]
Friday, April 6, 2012
The Housing Recovery
"Economists and real estate experts have discussed, debated, and driven home the important role a housing recovery has in helping the overall economy recovery.
In a recent speech during the 2012 National Association of Homebuilders International Builders' Show, Federal Reserve Chairman Ben Bernanke emphasized the need for just that, a housing recovery.
Despite the end of the recession in 2009, many American households continue to struggle. The unemployment rate remains elevated, hovering between 8 and 9 percent. Home prices are on the downturn, falling over 4 percent in the last year, and distressed properties still dominate many markets.
Additionally, potential would-be buyers have been sidelined by tightened credit standards, including the need for excellent credit and at least 20 percent down.
Bernanke commented on today's conditions, noting, "Though some progress has been made in reversing the losses in jobs and income sustained during the recession, the pace of expansion has been frustratingly slow and the unemployment rate remains very high by historical standards. The state of the housing sector has been a key impediment to a faster recovery."
Existing-home sales and new construction have seen minor rises in recent data studies, but the pace has not been enough to offset the large inventory glut of home.
In his speech Bernanke gave an overview of the state of housing. He showed how the past few years have seen a big disparity between supply of single-family homes and demand for these homes. Supply has far outweighed demand. This has left lots of unoccupied homes.
He said, "While this figure has declined slightly during the past few years, it is nonetheless up dramatically from the first half of the 2000s, when readings of about 1-1/4 million vacant homes were the norm."
Additionally, "In each of the past few years, roughly 2 million homes have entered the foreclosure process, and many of these homes have been put up for sale, crowding out much of the need for new building."
Declines is home prices have meant a reduction in homeowner equity by more than 50 percent from the peak of the boom. That translates to a loss of $7 trillion in household wealth. Even more troublesome is the group of 12 million homeowners who are now upside down in their mortgages." [Read more]
In a recent speech during the 2012 National Association of Homebuilders International Builders' Show, Federal Reserve Chairman Ben Bernanke emphasized the need for just that, a housing recovery.
Despite the end of the recession in 2009, many American households continue to struggle. The unemployment rate remains elevated, hovering between 8 and 9 percent. Home prices are on the downturn, falling over 4 percent in the last year, and distressed properties still dominate many markets.
Additionally, potential would-be buyers have been sidelined by tightened credit standards, including the need for excellent credit and at least 20 percent down.
Bernanke commented on today's conditions, noting, "Though some progress has been made in reversing the losses in jobs and income sustained during the recession, the pace of expansion has been frustratingly slow and the unemployment rate remains very high by historical standards. The state of the housing sector has been a key impediment to a faster recovery."
Existing-home sales and new construction have seen minor rises in recent data studies, but the pace has not been enough to offset the large inventory glut of home.
In his speech Bernanke gave an overview of the state of housing. He showed how the past few years have seen a big disparity between supply of single-family homes and demand for these homes. Supply has far outweighed demand. This has left lots of unoccupied homes.
He said, "While this figure has declined slightly during the past few years, it is nonetheless up dramatically from the first half of the 2000s, when readings of about 1-1/4 million vacant homes were the norm."
Additionally, "In each of the past few years, roughly 2 million homes have entered the foreclosure process, and many of these homes have been put up for sale, crowding out much of the need for new building."
Declines is home prices have meant a reduction in homeowner equity by more than 50 percent from the peak of the boom. That translates to a loss of $7 trillion in household wealth. Even more troublesome is the group of 12 million homeowners who are now upside down in their mortgages." [Read more]
Thursday, April 5, 2012
April Showers: FHA Bans Borrowers With Credit Disputes, Raises Insurance Premiums
"The joke was on you April 1, if you applied for a Federal Housing Administration (FHA) home loan and had an outstanding credit dispute of $1,000 or more pop up.
Beginning April 1, the FHA began tossing home loan purchase applications in the circular file if the applicant had an ongoing credit dispute or collections action of $1,000 or more on his or her credit report.
To pass muster you must either pay off the outstanding balance of the disputed account or document a payment arrangement the lender must submit to the FHA before you close the deal.
You can't pay down a disputed amount to an amount below $1,000 to skirt the new rule.
The payments arranged for the accounts will be included in the calculations of your debt-to-income ratios.
You are exempt from the rule if the disputed amounts are less than $1,000 or more than two years old. Also exempt for the rule are disputes arising from identity theft, credit card theft or unauthorized use, provided you can produce proof you filed an identity theft or police report to dispute the fraudulent charges.
A similar existing rule applies to court-ordered judgments for debts you owe. You must pay them off or document a payment plan before closing.
Entry-level home builders told John Burns Real Estate Consulting the new rule would have disqualified 60 to 84 percent of buyers who were luckily already under contract at some new home communities.
Higher FHA loan costs
The rule comes prior to the FHA's hike in mortgage insurance premiums, due April 9.
Then, the FHA will increase its annual mortgage insurance premium by 0.10 percent. If the loan-to-value is 95 percent or less the rate will rise from 1.10 percent to 1.20 percent. If the loan-to-value is greater than 95 percent, the premium will rise from 1.15 percent to 1.25 percent. Upfront premiums will also increase by 0.75 percent from 1 percent to 1.75 percent.
The FHA has been hiking insurance premiums over the past 18 months, increasing a typical borrower's mortgage payment by $95 a month.
The new rules don't apply to certain special streamline refinance loans or reverse mortgages.
Last month, President Obama announced a lower-cost FHA streamlined refinancing program for certain homeowners with existing Federal Housing Administration (FHA) loans. Fees for the new FHA loan have been substantially reduced.
Effective June 11, 2012, for qualifying borrowers, the cost for the upfront mortgage insurance on FHA loans will be reduced to 0.01 percent of the loan amount, down from 1 percent, according to a White House fact sheet.
The annual mortgage insurance amount will be reduced from 1.15 percent to only 0.55 percent per year. Qualifying borrowers must be current on an existing FHA-insured mortgage signed on or before May 31, 2009.
FHA troubles
The FHA is making purchase mortgages more costly and tougher to get to raise $1 billion to help offset losses to its insurance fund. Congress mandated that the fund keep 2 percent of its portfolio in reserve. Last year, the level slipped to only a little more than 0.2 percent.
The fund is available on top of $29 billion the agency holds to pay expected claims. The FHA is also due another $1 billion from the National Mortgage Settlement.
FHA backs mortgages that cover as much as 96.5 percent of a home's value. The loans virtually replaced toxic subprime loans which were popular during boom times." [Read more]
Beginning April 1, the FHA began tossing home loan purchase applications in the circular file if the applicant had an ongoing credit dispute or collections action of $1,000 or more on his or her credit report.
To pass muster you must either pay off the outstanding balance of the disputed account or document a payment arrangement the lender must submit to the FHA before you close the deal.
You can't pay down a disputed amount to an amount below $1,000 to skirt the new rule.
The payments arranged for the accounts will be included in the calculations of your debt-to-income ratios.
You are exempt from the rule if the disputed amounts are less than $1,000 or more than two years old. Also exempt for the rule are disputes arising from identity theft, credit card theft or unauthorized use, provided you can produce proof you filed an identity theft or police report to dispute the fraudulent charges.
A similar existing rule applies to court-ordered judgments for debts you owe. You must pay them off or document a payment plan before closing.
Entry-level home builders told John Burns Real Estate Consulting the new rule would have disqualified 60 to 84 percent of buyers who were luckily already under contract at some new home communities.
Higher FHA loan costs
The rule comes prior to the FHA's hike in mortgage insurance premiums, due April 9.
Then, the FHA will increase its annual mortgage insurance premium by 0.10 percent. If the loan-to-value is 95 percent or less the rate will rise from 1.10 percent to 1.20 percent. If the loan-to-value is greater than 95 percent, the premium will rise from 1.15 percent to 1.25 percent. Upfront premiums will also increase by 0.75 percent from 1 percent to 1.75 percent.
The FHA has been hiking insurance premiums over the past 18 months, increasing a typical borrower's mortgage payment by $95 a month.
The new rules don't apply to certain special streamline refinance loans or reverse mortgages.
Last month, President Obama announced a lower-cost FHA streamlined refinancing program for certain homeowners with existing Federal Housing Administration (FHA) loans. Fees for the new FHA loan have been substantially reduced.
Effective June 11, 2012, for qualifying borrowers, the cost for the upfront mortgage insurance on FHA loans will be reduced to 0.01 percent of the loan amount, down from 1 percent, according to a White House fact sheet.
The annual mortgage insurance amount will be reduced from 1.15 percent to only 0.55 percent per year. Qualifying borrowers must be current on an existing FHA-insured mortgage signed on or before May 31, 2009.
FHA troubles
The FHA is making purchase mortgages more costly and tougher to get to raise $1 billion to help offset losses to its insurance fund. Congress mandated that the fund keep 2 percent of its portfolio in reserve. Last year, the level slipped to only a little more than 0.2 percent.
The fund is available on top of $29 billion the agency holds to pay expected claims. The FHA is also due another $1 billion from the National Mortgage Settlement.
FHA backs mortgages that cover as much as 96.5 percent of a home's value. The loans virtually replaced toxic subprime loans which were popular during boom times." [Read more]
Wednesday, April 4, 2012
Real Estate Outlook: Labor Market Improvements
"The health and recovery of the real estate market is closely related to the health of the labor market. This much has been seen since the beginning of the recession and continues today.
Will the labor market continue to improve or are the recent declines in the unemployment rate simply a temporary respite from an otherwise struggling jobs market?
Federal Reserve Chairman Ben Bernanke spoke last week on this subject at the National Association for Business Economics Annual Conference in Washington, D.C.
He noted that job creation has seen an uptick recently and layoffs in the public sector are moderating. He also made clear that today's job market may have seen improvements, but it is weak in relation to historical normal.
"The positive signs from the labor market have shown through to measures of labor utilization," he said. "After hovering around 9 percent for much of last year, the unemployment rate has moved down since September to 8.3 percent in February, and the share of employment represented by people working part time for economic reasons, an indicator of underutilization, has declined modestly."
The real question on most homeowners minds, however, is whether or not the recent improvements will lead to further declines in unemployment. The answer to continued labor market rises: more-rapid economic growth.
"A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed. Still, conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks, even without adjusting for growth in the labor force," he said. "Moreover, we cannot yet be sure that the recent pace of improvement in the labor market will be sustained." This means keep tuned, the market could have a few surprises left up its sleeve.
Pending homes sales continued to struggle as well, falling by 0.5 percent for the month of February. This rate is above February 2011 by a healthy 9.2 percent and leads us into a more hopeful Spring season.
Lawrence Yun, NAR chief economist, said we're seeing the continuation of an uneven but higher sales pattern. "The spring home buying season looks bright because of an elevated level of contract offers so far this year," he said. "If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that's what we're expecting with sales rising 7 to 10 percent in 2012."
Regional activity was mixed. The Northeast fell 0.6 percent, but is a whopping 18.4 percent above year ago levels. The South fell 3.0 percent and the West decline 2.6 percent. The Midwest, however, saw a large 6.5 percent jump in pending home sales and is now 19.0 percent above February 2011." [Read more]
Will the labor market continue to improve or are the recent declines in the unemployment rate simply a temporary respite from an otherwise struggling jobs market?
Federal Reserve Chairman Ben Bernanke spoke last week on this subject at the National Association for Business Economics Annual Conference in Washington, D.C.
He noted that job creation has seen an uptick recently and layoffs in the public sector are moderating. He also made clear that today's job market may have seen improvements, but it is weak in relation to historical normal.
"The positive signs from the labor market have shown through to measures of labor utilization," he said. "After hovering around 9 percent for much of last year, the unemployment rate has moved down since September to 8.3 percent in February, and the share of employment represented by people working part time for economic reasons, an indicator of underutilization, has declined modestly."
The real question on most homeowners minds, however, is whether or not the recent improvements will lead to further declines in unemployment. The answer to continued labor market rises: more-rapid economic growth.
"A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed. Still, conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks, even without adjusting for growth in the labor force," he said. "Moreover, we cannot yet be sure that the recent pace of improvement in the labor market will be sustained." This means keep tuned, the market could have a few surprises left up its sleeve.
Pending homes sales continued to struggle as well, falling by 0.5 percent for the month of February. This rate is above February 2011 by a healthy 9.2 percent and leads us into a more hopeful Spring season.
Lawrence Yun, NAR chief economist, said we're seeing the continuation of an uneven but higher sales pattern. "The spring home buying season looks bright because of an elevated level of contract offers so far this year," he said. "If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that's what we're expecting with sales rising 7 to 10 percent in 2012."
Regional activity was mixed. The Northeast fell 0.6 percent, but is a whopping 18.4 percent above year ago levels. The South fell 3.0 percent and the West decline 2.6 percent. The Midwest, however, saw a large 6.5 percent jump in pending home sales and is now 19.0 percent above February 2011." [Read more]
Thursday, March 29, 2012
Curb Appeal For Rental Properties
"When it comes to common-knowledge approaches to curb appeal, first impressions are lasting impressions, and property managers can build on that axiom to boost love-at-first-sight interest in rental properties.
"You never get a second chance to make a good first impression. No matter how great the service is, or how great the programs are, if the property doesn't look good, you'll never get the chance to go further with," a potential tenant, says Cris Sullivan, senior vice president and executive director of operations at Gables Residential, a Atlanta, GA-based real estate acquisition, development and management company for multifamily properties and mixed-use communities.
Potential tenants expect a manicured property, a tamed yard, fresh paint and an overall neat presentation, but, as niche or more unique properties become more popular, a creative curb appeal strategy with a personal touch can add value.
Jared Meadors, owner of Medusa Properties in Houston, TX says property owners should expect to make an investment that enhances the appeal of the property from the outside in because the effort will pay for itself over time.
"That's the thing about improvements in general. They pay for themselves five to 10 times over," says Meadors who specializes in resorted, older properties.
"It took me a decade before I learned that competing on price alone is a race to the bottom. Apple products are the most expensive in every category where they compete, but they dominate those categories, and make more money than everyone else while doing it," he added.
Meadors also says curb appeal investments allow him to charge slightly higher rent and they reduce vacancy periods because nicer looking properties rent faster than their less appealing competitors.
Meadors' first addresses a property's character to add curb appeal.
He often selects properties that may appear to look "boring," because the property was built in the 1920s or 1930s and may have been stripped of its character over time due to shifting attitudes about style. These architecturally-stripped properties are like a blank canvas. He selects the most appealing qualities of an era and restores them to the property. This often means modifying the facade with renewed architectural detail.
"The style of the building itself is really important. From an architectural approach, I take the coolest elements of an era and apply them to a building," Meadors says.
Meadors also says fencing can serve as a multi-functional addition to a property. Fencing frames a property's boundaries, it's a friendly bonus for pet owners, it acts as a backdrop for landscaping and it acts as a buffer between the front door and the street a major benefit in high traffic areas.
"In a really dense urban environment, any kind of buffer you can give your tenants from the street is really nice. Rather than having a big, open yard, add a cool fence or wall and a private patio. Now they have a buffer from the street and private space," Meadors said.
Meadors also encourages creative landscaping.
Appealing foliage is an eye-catching addition to a property, but it doesn't have to be high-maintenance or an expensive addition. Climbers, for example, require little attention and they add a colorful flair to a rental property and the benefit of added privacy." [Read more]
"You never get a second chance to make a good first impression. No matter how great the service is, or how great the programs are, if the property doesn't look good, you'll never get the chance to go further with," a potential tenant, says Cris Sullivan, senior vice president and executive director of operations at Gables Residential, a Atlanta, GA-based real estate acquisition, development and management company for multifamily properties and mixed-use communities.
Potential tenants expect a manicured property, a tamed yard, fresh paint and an overall neat presentation, but, as niche or more unique properties become more popular, a creative curb appeal strategy with a personal touch can add value.
Jared Meadors, owner of Medusa Properties in Houston, TX says property owners should expect to make an investment that enhances the appeal of the property from the outside in because the effort will pay for itself over time.
"That's the thing about improvements in general. They pay for themselves five to 10 times over," says Meadors who specializes in resorted, older properties.
"It took me a decade before I learned that competing on price alone is a race to the bottom. Apple products are the most expensive in every category where they compete, but they dominate those categories, and make more money than everyone else while doing it," he added.
Meadors also says curb appeal investments allow him to charge slightly higher rent and they reduce vacancy periods because nicer looking properties rent faster than their less appealing competitors.
Meadors' first addresses a property's character to add curb appeal.
He often selects properties that may appear to look "boring," because the property was built in the 1920s or 1930s and may have been stripped of its character over time due to shifting attitudes about style. These architecturally-stripped properties are like a blank canvas. He selects the most appealing qualities of an era and restores them to the property. This often means modifying the facade with renewed architectural detail.
"The style of the building itself is really important. From an architectural approach, I take the coolest elements of an era and apply them to a building," Meadors says.
Meadors also says fencing can serve as a multi-functional addition to a property. Fencing frames a property's boundaries, it's a friendly bonus for pet owners, it acts as a backdrop for landscaping and it acts as a buffer between the front door and the street a major benefit in high traffic areas.
"In a really dense urban environment, any kind of buffer you can give your tenants from the street is really nice. Rather than having a big, open yard, add a cool fence or wall and a private patio. Now they have a buffer from the street and private space," Meadors said.
Meadors also encourages creative landscaping.
Appealing foliage is an eye-catching addition to a property, but it doesn't have to be high-maintenance or an expensive addition. Climbers, for example, require little attention and they add a colorful flair to a rental property and the benefit of added privacy." [Read more]
Wednesday, March 28, 2012
The Changing Landscape of Single-Family Homes
"As household spending and income adapt to meet the needs of today's economic conditions, new single-family home have followed suite. In a surprise divergence from recent trends, homes seem to be on a growth spurt again.
According to the latest Census Bureau data homes for the first half of 2011 new home being built were following this surprising trend. Data found that in comparison to 2010 the average size of homes grew along with the number of four+ bedroom homes.
This data is surprising considering that many potential homebuyers have been sidelined by high unemployment and weak economic growth. Fed Chairman Ben Bernanke spoke recently about the slow economic recovery at the 2012 National Association of Homebuilders International Builders' Show in Orlando, Florida.
He noted that "although some progress has been made in reversing the losses in jobs and income sustained during the recession, the pace of expansion has been frustratingly slow and the unemployment rate remains very high by historical standards. The state of the housing sector has been a key impediment to a faster recovery."
Does this Census Bureau data mean we are on the road back to McMansions? The NAHB is asking the same questions, "These facts lead to an interesting question: how can the average home be getting bigger, more expensive, and have more amenities when the housing market remains weak and the overall economy is yet to see a robust recovery?"
They key difference in these early 2011 findings is who is building homes as well as the number of new housing starts. There were only 429,000 new housing starts in the first half of last year.
Because of recent crackdown on mortgage lending, many would-be buyers of new homes are instead waiting on the sidelines. Today's buyers need excellent credit as well as at least 20 percent to put down. This has changed the pool of buyers and these buyers are building bigger.
Other key findings of the study were as follows:[Read more]"
According to the latest Census Bureau data homes for the first half of 2011 new home being built were following this surprising trend. Data found that in comparison to 2010 the average size of homes grew along with the number of four+ bedroom homes.
This data is surprising considering that many potential homebuyers have been sidelined by high unemployment and weak economic growth. Fed Chairman Ben Bernanke spoke recently about the slow economic recovery at the 2012 National Association of Homebuilders International Builders' Show in Orlando, Florida.
He noted that "although some progress has been made in reversing the losses in jobs and income sustained during the recession, the pace of expansion has been frustratingly slow and the unemployment rate remains very high by historical standards. The state of the housing sector has been a key impediment to a faster recovery."
Does this Census Bureau data mean we are on the road back to McMansions? The NAHB is asking the same questions, "These facts lead to an interesting question: how can the average home be getting bigger, more expensive, and have more amenities when the housing market remains weak and the overall economy is yet to see a robust recovery?"
They key difference in these early 2011 findings is who is building homes as well as the number of new housing starts. There were only 429,000 new housing starts in the first half of last year.
Because of recent crackdown on mortgage lending, many would-be buyers of new homes are instead waiting on the sidelines. Today's buyers need excellent credit as well as at least 20 percent to put down. This has changed the pool of buyers and these buyers are building bigger.
Other key findings of the study were as follows:[Read more]"
Friday, March 23, 2012
First-Time Buyer Tips
"Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have." [Read more]
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have." [Read more]
Thursday, March 22, 2012
Spring Marketing Tips For Agents
"This Spring presents some incredible opportunities for selling homes. It's time your market knew this! The Federal Reserve has committed itself to keeping rates low and now that employment levels have risen more buyers are finding themselves ready to make a purchase.
Many buyers and sellers, however, are wholly unaware of the opportunities that exist thanks to today's conditions.
While home prices may be on the decline, homeowners who have been in their current properties for a decade or more will likely have built a substantial amount of equity. They should be educated on what doors this opens. When their home is staged and marketed correctly they can sell in today's market and open up a world of bigger and better properties. Now could very well be prime time to move into their dream home.
Additionally, Spring is a wonderful time to market a home. Many families love to buy during this season so that they can make the move at the end of the school year. Staging a home during this season is so easy. Green lawns and fresh flowers make for great curb appeal and that equals stellar first impressions.
Yet, instead of focusing on these great positives about this season for selling, homeowners read the headlines splashed across major media news sites and let worry keep them on the sidelines.
What are some ways that you get the word out about Spring and selling?" [Read more]
Many buyers and sellers, however, are wholly unaware of the opportunities that exist thanks to today's conditions.
While home prices may be on the decline, homeowners who have been in their current properties for a decade or more will likely have built a substantial amount of equity. They should be educated on what doors this opens. When their home is staged and marketed correctly they can sell in today's market and open up a world of bigger and better properties. Now could very well be prime time to move into their dream home.
Additionally, Spring is a wonderful time to market a home. Many families love to buy during this season so that they can make the move at the end of the school year. Staging a home during this season is so easy. Green lawns and fresh flowers make for great curb appeal and that equals stellar first impressions.
Yet, instead of focusing on these great positives about this season for selling, homeowners read the headlines splashed across major media news sites and let worry keep them on the sidelines.
What are some ways that you get the word out about Spring and selling?" [Read more]
Tuesday, March 20, 2012
Builders ready for home construction rebound
"Home builders are getting ready for a stronger construction season, filing for the most building permits in more than three years, in another sign of recovery in the long-battered housing market.
The government reported builders filed for permits at an seasonally adjusted annual rate of 717,000 in February, the strongest reading since October 2008, which was the month after the meltdown in financial markets. It marked a 5.1% rise from January and a 34.3% increase from year-earlier levels.
Actual starts of new homes slipped slightly from a very strong start to the building season in January, down 1.1% to 698,000. Still, that was 35% ahead of starts in February 2011.
The starts are more affected by weather factors. But the permits are generally seen as an indication of builders' confidence in the market and the demand they are seeing. Mortgage rates near record lows and an improving jobs market both are feeding stronger demand.
The construction and permitting of apartments and condos continue to be particularly strong. Permits for buildings with more than one housing unit rose 61% from prior-year levels, and starts of buildings with five or more units jumped 29% from January and were more than double year-earlier levels." [Read more]
The government reported builders filed for permits at an seasonally adjusted annual rate of 717,000 in February, the strongest reading since October 2008, which was the month after the meltdown in financial markets. It marked a 5.1% rise from January and a 34.3% increase from year-earlier levels.
Actual starts of new homes slipped slightly from a very strong start to the building season in January, down 1.1% to 698,000. Still, that was 35% ahead of starts in February 2011.
The starts are more affected by weather factors. But the permits are generally seen as an indication of builders' confidence in the market and the demand they are seeing. Mortgage rates near record lows and an improving jobs market both are feeding stronger demand.
The construction and permitting of apartments and condos continue to be particularly strong. Permits for buildings with more than one housing unit rose 61% from prior-year levels, and starts of buildings with five or more units jumped 29% from January and were more than double year-earlier levels." [Read more]
Friday, March 16, 2012
Moving Made Simple: Tips to Help You Relocate
"It's the least favorite thing for many sellers, packing up their homes and relocating to a new home or even a new state.
Most people associate moving with stress but it doesn't have to take the thrill of moving into a new home away. Preparation and careful planning can not only ward off the stress but also save you money.
Here are some quick tips to help you move out of your old home and into your new one with ease and comfort.
Get organized. Moves are often a chaotic mess. Very often the sale goes through and sellers scramble to get their belongings packed up and loaded into the trucks. Then when they get to their new home, there isn't a trace of organization.
Boxes that were hurriedly jammed with stuff are in disarray and unpacking them seems like more work than it's worth. This is often how people end up with duplicate irons, toasters, coffeemakers. In their frustration of being unable to locate a necessary item from the boxes, some opt to just purchase another.
Instead, color-code the boxes and mark in bold pen their contents. Start with one room and fill the box with only items from that room, for instance, the kitchen. Then, even if the box isn't stuffed, move to another room and use a new color-coded box to fill with its belongings.
If you're using movers, give them instructions to place the color-coded and marked boxes in the appropriate rooms. This saves so much time, energy, and hassle when unpacking or searching for items for that particular room.
It may seem like a lot of work to do this in the beginning, but unpacking and moving boxes that you have no idea what's inside, is far worse and a much longer process.
Sell what you don't need.
A common mistake sellers make in moving is to bring with them the stuff that they plan to get rid of in the future. If you're using professional movers, this will cost you more. If you're doing it yourself, it's just plain silly to haul that which you intend to get rid of into a new home.
Again, this requires some planning. But you know that you're selling your home, so start going through the rooms and setting up piles of the items that you plan to get rid of. Garage sales can help you unload some unwanted materials quickly. Also, sites like eBay or even shops that place your items on consignment can be worth it. Then, of course, you can simply make a deduction to a non-profit charity and just take the tax deduction.
The main point here is to use the move to unload the clutter. Do this before you list your home and your real estate agent will thank you. Clearing out the stuff helps buyers see the real beauty and value of your home. And, when it comes time to move, you'll be glad you're not simply taking unwanted stuff over to clutter your new home.
Appliance handling tips. If you're moving big appliances like refrigerators and dishwashers, be sure to wipe them down and clean them out carefully. These items can get very smelly in the move. If you use a damp cloth and vinegar, it can help keep the refrigerator smelling fresh. Make sure you dry the inside completely before moving the refrigerator." [Read more]
Most people associate moving with stress but it doesn't have to take the thrill of moving into a new home away. Preparation and careful planning can not only ward off the stress but also save you money.
Here are some quick tips to help you move out of your old home and into your new one with ease and comfort.
Get organized. Moves are often a chaotic mess. Very often the sale goes through and sellers scramble to get their belongings packed up and loaded into the trucks. Then when they get to their new home, there isn't a trace of organization.
Boxes that were hurriedly jammed with stuff are in disarray and unpacking them seems like more work than it's worth. This is often how people end up with duplicate irons, toasters, coffeemakers. In their frustration of being unable to locate a necessary item from the boxes, some opt to just purchase another.
Instead, color-code the boxes and mark in bold pen their contents. Start with one room and fill the box with only items from that room, for instance, the kitchen. Then, even if the box isn't stuffed, move to another room and use a new color-coded box to fill with its belongings.
If you're using movers, give them instructions to place the color-coded and marked boxes in the appropriate rooms. This saves so much time, energy, and hassle when unpacking or searching for items for that particular room.
It may seem like a lot of work to do this in the beginning, but unpacking and moving boxes that you have no idea what's inside, is far worse and a much longer process.
Sell what you don't need.
A common mistake sellers make in moving is to bring with them the stuff that they plan to get rid of in the future. If you're using professional movers, this will cost you more. If you're doing it yourself, it's just plain silly to haul that which you intend to get rid of into a new home.
Again, this requires some planning. But you know that you're selling your home, so start going through the rooms and setting up piles of the items that you plan to get rid of. Garage sales can help you unload some unwanted materials quickly. Also, sites like eBay or even shops that place your items on consignment can be worth it. Then, of course, you can simply make a deduction to a non-profit charity and just take the tax deduction.
The main point here is to use the move to unload the clutter. Do this before you list your home and your real estate agent will thank you. Clearing out the stuff helps buyers see the real beauty and value of your home. And, when it comes time to move, you'll be glad you're not simply taking unwanted stuff over to clutter your new home.
Appliance handling tips. If you're moving big appliances like refrigerators and dishwashers, be sure to wipe them down and clean them out carefully. These items can get very smelly in the move. If you use a damp cloth and vinegar, it can help keep the refrigerator smelling fresh. Make sure you dry the inside completely before moving the refrigerator." [Read more]
Thursday, March 15, 2012
Foreclosures Fall, But There's a 'Rising Tide' Ahead
"The number of homes entering foreclosure dropped in February, but a new up-turn may soon be on its way.
The reason? The $26 billion settlement between 5 major banks and state attorneys general over past foreclosure practices.
Cases could go forward after sitting in limbo for months -- even years -- with their delinquent owners squatting on the properties.
The banks involved are Bank of America, (BAC, Fortune 500) JPMorgan Chase (JPM, Fortune 500), Citibank (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Ally Financial.
"The pig is starting to move through the python," said Daren Blomquist, director of marketing for RealtyTrac, which released its foreclosure report for February on Thursday.
Homeowners on the mortgage settlement: 'This stinks'
Though filings for the month were down 8%, there were indications that the foreclosure pipeline was beginning to unclog.
Foreclosures had dropped much more in January -- 19%. And 21 states posted increases in filings in February, the most since November 2010. Plus, half of the nation's 20 largest metro areas reported increases as well, led by Tampa, Fla. (up 64%) and Miami (53%)." [Read more]
Wednesday, March 14, 2012
Foreign Buyers are Snapping up U.S. Homes
“Reporting from Washington— Because of the housing market meltdown, foreign governments and banks are shying away from bonds backed by American home loans. But individual foreign buyers are taking advantage of the crash to snap up U.S. bargains at a record clip.
When housing was flying high, foreign entities were buying the lion’s share of the mortgage-backed securities packaged by Fannie Mae and Freddie Mac, the two quasi-government agencies that help keep the housing finance system flush with cash by buying mortgages from Main Street lenders.
Now, with Fannie Mae and Freddie Mac in conservatorship and their futures in question — and with millions of homeowners underwater on loans held by Fannie Mae and Freddie Mac — the foreign share of the mortgage-backed securities market is just a fraction of what it once was. Instead, foreigners are gobbling up individual properties.
Foreign clients bought $41 billion worth of stateside houses and apartments during the 12-month period that ended in March 2011, according to the latest tally by the National Assn. of Realtors. That’s roughly the same as the previous year.
But add in the $41 billion spent by immigrants who moved here within the last two years and individuals with visas of more than six months, and the total is $82 billion worth of U.S. residential real estate taken off the market by international buyers, up from $66 billion the year before.
The demand for American real estate is so strong that last fall, the Realtors association launched an international version of its listing website. Now, the 4.4 million properties displayed on Realtor.com can be viewed more easily by buyers from practically any place in the world, and in almost a dozen languages.
In the 1980s, when investors from Japan and other countries were buying large amounts of commercial real estate, including such iconic properties as the Pebble Beach golf club and Rockefeller Center in New York, there was fear in some quarters that the U.S. was for sale to foreigners.
There’s no such outcry this time around, if only because the foreign share of the domestic housing market is but a small sliver of a $1.07-trillion pie. And in markets where foreign buyers are most active, their pesos, pounds and rupees are being welcomed with open arms because they are helping unclog the logjam of unsold and foreclosed houses, a jam-up many believe must be cleared before residential real estate can regain its equilibrium.” [Read more]
When housing was flying high, foreign entities were buying the lion’s share of the mortgage-backed securities packaged by Fannie Mae and Freddie Mac, the two quasi-government agencies that help keep the housing finance system flush with cash by buying mortgages from Main Street lenders.
Now, with Fannie Mae and Freddie Mac in conservatorship and their futures in question — and with millions of homeowners underwater on loans held by Fannie Mae and Freddie Mac — the foreign share of the mortgage-backed securities market is just a fraction of what it once was. Instead, foreigners are gobbling up individual properties.
Foreign clients bought $41 billion worth of stateside houses and apartments during the 12-month period that ended in March 2011, according to the latest tally by the National Assn. of Realtors. That’s roughly the same as the previous year.
But add in the $41 billion spent by immigrants who moved here within the last two years and individuals with visas of more than six months, and the total is $82 billion worth of U.S. residential real estate taken off the market by international buyers, up from $66 billion the year before.
The demand for American real estate is so strong that last fall, the Realtors association launched an international version of its listing website. Now, the 4.4 million properties displayed on Realtor.com can be viewed more easily by buyers from practically any place in the world, and in almost a dozen languages.
In the 1980s, when investors from Japan and other countries were buying large amounts of commercial real estate, including such iconic properties as the Pebble Beach golf club and Rockefeller Center in New York, there was fear in some quarters that the U.S. was for sale to foreigners.
There’s no such outcry this time around, if only because the foreign share of the domestic housing market is but a small sliver of a $1.07-trillion pie. And in markets where foreign buyers are most active, their pesos, pounds and rupees are being welcomed with open arms because they are helping unclog the logjam of unsold and foreclosed houses, a jam-up many believe must be cleared before residential real estate can regain its equilibrium.” [Read more]
Friday, March 9, 2012
As spring home-buying season begins, real estate agents see promise in housing market
"The first two months of the year are usually the slowest for Mark Prather’s real estate agency.
Not in 2012.
“On Jan. 5, the phones started to ring” with would-be buyers and sellers hoping to make a deal, says Prather, whose ERA Buy America Real Estate Services is in La Palma, Calif., on the border between Los Angeles and Orange counties. That quickly lifted the mood at his agency, where business plunged when the housing market collapsed.
“I’ve come to work with people who have optimism in their eyes as opposed to people who look like they’re coming to the morgue,” Prather says.
It looks like the prolonged dry spell at real estate agencies is finally ending. The housing market peaked in 2005, fell in 2006 and by “2007, the wheels fell off,” Prather said. Agents got a respite in early 2010, when the government was giving first-time homebuyers tax credits of up to $8,000. But sales immediately plunged when the credits expired on April 30 of that year.
Business started gaining some momentum in late 2011. The National Association of Realtors has said that the number of people who signed home sales contracts rose in the last three months of 2011 after dropping for three straight months. In January, they hit the highest level since April 2010. Meanwhile, sales of previously occupied in homes in January were at the highest level since May 2010.
Reports from the field back the headlines. Prather, who also is a mortgage broker, says his company closed 50 loans in February. More than half of them were for purchases. A year ago, it was closing 25 to 30 loans a month.
Chappy Adams, president of Illustrated Properties in central and South Florida, says the number of sales contracts his agents have handled this year is up 50 percent from a year ago. Florida was one of the hardest-hit markets when sales and prices plunged." [Read more]
Not in 2012.
“On Jan. 5, the phones started to ring” with would-be buyers and sellers hoping to make a deal, says Prather, whose ERA Buy America Real Estate Services is in La Palma, Calif., on the border between Los Angeles and Orange counties. That quickly lifted the mood at his agency, where business plunged when the housing market collapsed.
“I’ve come to work with people who have optimism in their eyes as opposed to people who look like they’re coming to the morgue,” Prather says.
It looks like the prolonged dry spell at real estate agencies is finally ending. The housing market peaked in 2005, fell in 2006 and by “2007, the wheels fell off,” Prather said. Agents got a respite in early 2010, when the government was giving first-time homebuyers tax credits of up to $8,000. But sales immediately plunged when the credits expired on April 30 of that year.
Business started gaining some momentum in late 2011. The National Association of Realtors has said that the number of people who signed home sales contracts rose in the last three months of 2011 after dropping for three straight months. In January, they hit the highest level since April 2010. Meanwhile, sales of previously occupied in homes in January were at the highest level since May 2010.
Reports from the field back the headlines. Prather, who also is a mortgage broker, says his company closed 50 loans in February. More than half of them were for purchases. A year ago, it was closing 25 to 30 loans a month.
Chappy Adams, president of Illustrated Properties in central and South Florida, says the number of sales contracts his agents have handled this year is up 50 percent from a year ago. Florida was one of the hardest-hit markets when sales and prices plunged." [Read more]
Tuesday, March 6, 2012
Friday, March 2, 2012
Buyers or sellers…who has the advantage?
"Determining whether it is a buyer’s or seller’s marketplace can sometimes be a bit daunting, especially if you are a first-time buyer or seller in the real estate arena.
There are many factors to consider, and these can be anything from fluctuations in the economy to whether a given neighbourhood is suddenly considered ‘hot.’
More often than not it can simply come down to overall supply and demand in the market place. As a rule of thumb, when there are more homes for sale than there are buyers, house prices drop and it becomes a buyer’s market. Alternately, when there are fewer houses on the market than there are buyers, house prices climb and it becomes a seller’s market. The market is considered ‘balanced’ when the numbers of buyers and sellers in the market have equalized and inventory seems ‘normal’ in comparison to months in previous years.
In a seller’s market, properties move quickly, usually within a few days of being listed. There can be multiple offers and sellers may receive more than the original asking price.
In the case, where the market changes and property values go up, the asking price can be significantly affected. For the buyer, this can limit your choices in a house and you may have to move quickly with your decision to put in an offer.
In a buyer’s market, the supply of homes usually exceeds the market demand and your home may take longer to sell. For the house hunter, this can mean significant savings, since sellers may have to reduce their original asking price. Just as when the market is in a balanced state, conditional offers can be common in a buyer’s market.
You, the buyer, can expect to pay less for more house and have the option to take longer to make your decision. In the early stages of shopping for a home, it can be helpful to have your REALTOR® provide you with market statistics specific to the area and type of home that interests you." [Read more]
There are many factors to consider, and these can be anything from fluctuations in the economy to whether a given neighbourhood is suddenly considered ‘hot.’
More often than not it can simply come down to overall supply and demand in the market place. As a rule of thumb, when there are more homes for sale than there are buyers, house prices drop and it becomes a buyer’s market. Alternately, when there are fewer houses on the market than there are buyers, house prices climb and it becomes a seller’s market. The market is considered ‘balanced’ when the numbers of buyers and sellers in the market have equalized and inventory seems ‘normal’ in comparison to months in previous years.
In a seller’s market, properties move quickly, usually within a few days of being listed. There can be multiple offers and sellers may receive more than the original asking price.
In the case, where the market changes and property values go up, the asking price can be significantly affected. For the buyer, this can limit your choices in a house and you may have to move quickly with your decision to put in an offer.
In a buyer’s market, the supply of homes usually exceeds the market demand and your home may take longer to sell. For the house hunter, this can mean significant savings, since sellers may have to reduce their original asking price. Just as when the market is in a balanced state, conditional offers can be common in a buyer’s market.
You, the buyer, can expect to pay less for more house and have the option to take longer to make your decision. In the early stages of shopping for a home, it can be helpful to have your REALTOR® provide you with market statistics specific to the area and type of home that interests you." [Read more]
Thursday, March 1, 2012
As Home Prices Fall Further, Is It Time to Buy?
"Nobody wants to catch a falling knife. It is as simple as that. If potential buyers see continued home price erosion, they will stay parked on the sidelines. But as with everything else in this unique and historic housing market, perhaps the usual logic doesn’t apply.
“Housing is one of the great investments right now. I tell people all the time when they come up to me, they say, "What should I do, Mr. Trump?" I say go buy a house,” said Donald Trump earlier today on CNBC.
“It wouldn’t be an obvious mistake to buy a house now,” hedged Robert Shiller, barely a few hours later.
Perhaps they were just jumping off Warren Buffett’s declaration yesterday that if he had a way to manage them, he would buy a couple of hundred thousand single family homes and rent them out.
Housing appears to be rated a “buy” these days, especially among investors, who see a ripe and rising rental market and big potential for income. But is it the right time yet for what I call “organic” buyers to get in? By this I mean people buying a home to actually live in it, raise a family in it, let the dog run around in the back yard. If prices are still falling, couldn’t an even better deal be waiting down the road a bit?" [Read more]
“Housing is one of the great investments right now. I tell people all the time when they come up to me, they say, "What should I do, Mr. Trump?" I say go buy a house,” said Donald Trump earlier today on CNBC.
“It wouldn’t be an obvious mistake to buy a house now,” hedged Robert Shiller, barely a few hours later.
Perhaps they were just jumping off Warren Buffett’s declaration yesterday that if he had a way to manage them, he would buy a couple of hundred thousand single family homes and rent them out.
Housing appears to be rated a “buy” these days, especially among investors, who see a ripe and rising rental market and big potential for income. But is it the right time yet for what I call “organic” buyers to get in? By this I mean people buying a home to actually live in it, raise a family in it, let the dog run around in the back yard. If prices are still falling, couldn’t an even better deal be waiting down the road a bit?" [Read more]
Friday, February 24, 2012
Home Resales Climb Higher
"Sales of previously owned homes in the U.S. rose last month to the highest level in nearly two years, and the inventory of unsold homes contracted to a level considered healthy by economists, positive signs for the housing market.
Existing-home sales increased 4.3% in January from a month earlier to a seasonally adjusted annual rate of 4.57 million, the National Association of Realtors said Wednesday. It was the third increase in the past four months and the highest level of sales since May 2010, when the housing market was lifted by federal tax credits. Compared with January a year ago, sales rose 0.7%.
Economists were generally encouraged by the report, which comes amid other signs that the housing market may have bottomed and is starting to heal. "We're slowly improving for the right reasons: more jobs, more credit availability and affordability of homes," said Stuart Hoffman, chief economist with PNC Financial Services Group.
Guy Berger, U.S. economist with RBS Capital Markets, wrote that some of the recent growth in home sales may have been the result of the mild winter. "But for the most part, it seems that the housing sector may have turned the corner," he wrote.
Some economists, however, said January's report wasn't as encouraging as it appeared because the size of the gain was due to a large downward revision in December's data. The revised reading for December was 4.38 million compared with an earlier estimate of 4.61 million.
"The number of sales in January was actually a touch lower than we had thought they were in December," wrote Paul Diggle, property economist at Capital Economics. Nevertheless, he said, "it's still the case that existing home sales are recovering, albeit only gradually."
Last month's median sales price was $154,700, down 2% from $157,900 a year earlier. The inventory of previously owned homes listed for sale fell to 2.31 million at the end of January, the lowest level since March 2005. That represented a 6.1-month supply at the current sales pace, a level economists consider healthy.
The Realtors' report said home sales rose last month from a month earlier in all four U.S. regions. Sales were up 8.8% in the West, 3.5% in the South, 3.4% in the Northeast and 1.0% in the Midwest.
The housing market has been one of the weakest parts of the U.S. economy, but there are signs it is starting to recover after a price collapse that began 5½ years ago. In 2011, about 4.26 million homes were sold, up 1.7% from 4.19 million in 2010." [Read more]
Existing-home sales increased 4.3% in January from a month earlier to a seasonally adjusted annual rate of 4.57 million, the National Association of Realtors said Wednesday. It was the third increase in the past four months and the highest level of sales since May 2010, when the housing market was lifted by federal tax credits. Compared with January a year ago, sales rose 0.7%.
Economists were generally encouraged by the report, which comes amid other signs that the housing market may have bottomed and is starting to heal. "We're slowly improving for the right reasons: more jobs, more credit availability and affordability of homes," said Stuart Hoffman, chief economist with PNC Financial Services Group.
Guy Berger, U.S. economist with RBS Capital Markets, wrote that some of the recent growth in home sales may have been the result of the mild winter. "But for the most part, it seems that the housing sector may have turned the corner," he wrote.
Some economists, however, said January's report wasn't as encouraging as it appeared because the size of the gain was due to a large downward revision in December's data. The revised reading for December was 4.38 million compared with an earlier estimate of 4.61 million.
"The number of sales in January was actually a touch lower than we had thought they were in December," wrote Paul Diggle, property economist at Capital Economics. Nevertheless, he said, "it's still the case that existing home sales are recovering, albeit only gradually."
Last month's median sales price was $154,700, down 2% from $157,900 a year earlier. The inventory of previously owned homes listed for sale fell to 2.31 million at the end of January, the lowest level since March 2005. That represented a 6.1-month supply at the current sales pace, a level economists consider healthy.
The Realtors' report said home sales rose last month from a month earlier in all four U.S. regions. Sales were up 8.8% in the West, 3.5% in the South, 3.4% in the Northeast and 1.0% in the Midwest.
The housing market has been one of the weakest parts of the U.S. economy, but there are signs it is starting to recover after a price collapse that began 5½ years ago. In 2011, about 4.26 million homes were sold, up 1.7% from 4.19 million in 2010." [Read more]
Wednesday, February 22, 2012
30-year mortgage rate stays at record 3.87 percent
"The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year home loan was unchanged at 3.87 percent. That's the lowest level since long-term mortgages began in the 1950s.
The average on the 15-year fixed mortgage was also unchanged at 3.16 percent. That's up from a record low of 3.14 percent reached two weeks ago.
The low rates have done little to boost the struggling housing market. Rates have been below 5 percent for all but two weeks in the past year. Yet few people can qualify for the rates and many of those who can have already done so.
And prospective buyers don't want to put money into a home that they fear could fall in price over the next few years.
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.
Builders are hopeful that the low rates could boost sales this year. But so far, they have had a minimal impact.
Frank Nothaft, Freddie Mac's chief economist, said mixed readings on consumer confidence underscore the fragile condition of the housing market.
Surveys of small business owner and homebuilder confidence rose in January and February, respectively. But the University of Michigan's consumer sentiment fell in February, breaking a five-month upward trend.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week." [Read more]
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year home loan was unchanged at 3.87 percent. That's the lowest level since long-term mortgages began in the 1950s.
The average on the 15-year fixed mortgage was also unchanged at 3.16 percent. That's up from a record low of 3.14 percent reached two weeks ago.
The low rates have done little to boost the struggling housing market. Rates have been below 5 percent for all but two weeks in the past year. Yet few people can qualify for the rates and many of those who can have already done so.
And prospective buyers don't want to put money into a home that they fear could fall in price over the next few years.
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.
Builders are hopeful that the low rates could boost sales this year. But so far, they have had a minimal impact.
Frank Nothaft, Freddie Mac's chief economist, said mixed readings on consumer confidence underscore the fragile condition of the housing market.
Surveys of small business owner and homebuilder confidence rose in January and February, respectively. But the University of Michigan's consumer sentiment fell in February, breaking a five-month upward trend.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week." [Read more]
Friday, February 17, 2012
Home buying: Most affordable in decades
"Buying a home is now more affordable than it has been in the last twenty years.
Thanks to continued declines in home prices and rock-bottom mortgage rates, the National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability.
According to the index, 75.9% of all new and existing homes sold during the three months ended Dec. 31 could have been comfortably purchased by families earning the national median income of $64,200.
That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.
Unfortunately, being able to afford a home and actually being able to buy one are two different matters entirely. According to Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla., potential home buyers are still finding it difficult to land mortgages." [Read more]
Thanks to continued declines in home prices and rock-bottom mortgage rates, the National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability.
According to the index, 75.9% of all new and existing homes sold during the three months ended Dec. 31 could have been comfortably purchased by families earning the national median income of $64,200.
That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.
Unfortunately, being able to afford a home and actually being able to buy one are two different matters entirely. According to Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla., potential home buyers are still finding it difficult to land mortgages." [Read more]
Wednesday, February 15, 2012
Homebuilders See Increasing Interest From Buyers
"U.S. homebuilders are gradually growing more optimistic about the depressed housing market and believe homes sales could pick up sharply when the spring buying season begins.
The National Association of Home Builders/Wells Fargo said Wednesday that its builder sentiment index rose for a fifth straight month in February to 29, up from 25 in January. The index has climbed 15 points since September and is now at its highest level since May 2007.
Builders have generally become more hopeful during that stretch about current sales, sales six months out and foot traffic, the report shows.
Even with the brighter outlook, the industry has a long way to go. Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached 50 since April 2006, the peak of the housing boom.
A key reason homebuilders are more optimistic is they are seeing more people express interest in buying a home. And rising interest has occurred alongside other improvements that suggest the troubled housing market could pick up after four weak years." [Read more]
Friday, February 10, 2012
It's Harder Buying a Bank Owned Home Than a Regular Home
"With so many bank-owned homes on the market, some home buyers are wondering about the differences between buying bank owned vs. a regular home.
And why wouldn't a buyer be tempted to buy a bank-owned home? The prices are attractive; plus, buyers are constantly hearing that banks are desperate to give away those homes. One of the problems with this unfounded premise is banks aren't desperate to dump inventory, not on the open market, anyway. To presume that banks will do anything to get rid of a home is magical thinking. Moreover, buyers who aren't careful or don't know what they are doing can find themselves in over their heads." [Read more]
And why wouldn't a buyer be tempted to buy a bank-owned home? The prices are attractive; plus, buyers are constantly hearing that banks are desperate to give away those homes. One of the problems with this unfounded premise is banks aren't desperate to dump inventory, not on the open market, anyway. To presume that banks will do anything to get rid of a home is magical thinking. Moreover, buyers who aren't careful or don't know what they are doing can find themselves in over their heads." [Read more]
Thursday, February 9, 2012
Single Family Home Buyers May Return
"Tuesday morning at the MBA CREF12 Conferencesaw predictions from two of the association’s research and economic gurus, including one in which the late spring and early summer sees a surge in single family home buyers. The two—chief economist and SVP, Research and Education Jay Brinkmann and VP, Commercial/Multifamily Research Jamie Woodwell—also touched on their overall predictions for the commercial and multifamily markets.
During this, the Second General Session, Brinkmann said that when fourth quarter 2011 numbers came in, “a lot of people were somewhat surprised and disappointed by how low they appeared,” but that the numbers were “right on top of” their forecast. “We weren’t expecting the growth in fourth quarter that some others were expecting.” Behind the slowdown, Brinkmann said, was a large buildup of inventory.
“We really expect to see that going into 2012 we’re going to have subpar growth for most of the year, increasing somewhat toward the end as certain tax provisions have their effect,” he said. “We don’t expect consumers to be back.” The unknowns, he said, driving the forecast were largely international. He hit on two major regions that he told the crowd would work their way out toward the latter part of the spring and early part of the summer: Europe and Iran.
“It’s not clear that the improvements that were seen in the job market will continue to the same degree that we’ve seen them over the last few months,” Brinkmann added. “It was good news, but not great news.”
A bright spot, however, emerged when Brinkmann turned to single-family owner occupied properties. “There are some signs that this spring buying session might be a little bit better than what we are forecasting,” he said. “There are some things out there that we see that make us think that this might be the time that people start coming back into the market in bigger numbers to buy owner-occupied homes than we were expecting.” [Read more]
Monday, January 30, 2012
Friday, January 27, 2012
Choices available for home buyers!
"Home buyers are always looking for the best home they can buy with the resources and time available with them. Now, more than ever, real estate prices are subdued and buyers are again active in the market.
Buying a home is the most exciting and at the same time, tedious task for people. While the excitement of owning your own home pushes you harder to expedite the process, the tedious task of going through enormous amount of details frustrates you. Going through the process is a necessity. Though the process is tedious and demanding, any negligence on the due diligence can cost us big in the future.
In this article, we will take a look at some options that home buyers have and how they can choose the best one based on their requirement.
Buying an under-construction home
This is the most popular way of buying a home. A builder announces a new housing complex through newspapers, TV, or any other media. Agents start going around the market, companies, malls, and even homes of people to advertise the same. The goal of the builder is to sell as many as possible before the housing complex is built. In fact more than 75% of the flats of known builders are booked even before a brick is laid.
The advantage
Cheaper - Buying an under-construction home is cheaper compared to buying the one that is already built or about to be built. The cost difference is significant. In the Delhi and NCR region, a ready to move flat with 2 bedrooms that costs home buyers about 40-50 lakhs can be bought anywhere in the range of 30-40 lakhs while under-construction, depending on the location. On an average, the difference is anywhere between 20% and 40%. This is a big difference for majority of the home buyers.
Low EMI - The EMI is paid as the work progresses hence the initial EMIs are low in the case of an under construction home.
Win-win situation for buyers and sellers - Buying an under construction home is a win-win situation for both buyer and seller. The seller gets a ready set of customers even before he starts laying the foundation while buyers get the cost benefit." [Continue reading]
Wednesday, January 25, 2012
Is Your Kitchen Making You Fat?
"Dieters beware: Your dream kitchen remodel may be your biggest nightmare. Experts say that big and attractive kitchens contribute to big and unattractive waistlines.
Just shoot us now.
“If a kitchen gets you there and keeps you there, you’re going to increase your consumption,” says Mark Blegen, an associate professor at St. Catherine University in Minnesota, who studies why people eat. “Even if you add only 10 extra calories a day, you’re going to gain weight over the long term.”
You mean remodeling a small and dreary kitchen into a big and fabulous one is hazardous to our health?
“Getting people to think that this kitchen may be causing me to gain weight is a huge shift,” Blegen says. “But if people want to take an honest look at their weight, they ought to take a look at every aspect of their environment.”
Weight management depends on many things — genetics, metabolism, running shoes that live under your bed. But calories-in and calories-out also depend on increasing and decreasing barriers to food. Kitchen size, design, storage, and appliances all erect or destroy those physical and psychological barriers. Here’s how." [Continue reading...]
Monday, January 23, 2012
Six Tax Breaks Every Homeowner Should Know
"Regardless of the current state of our economy and the housing market, buying a home is still a great investment. However, the resulting taxes that accompany owning a home can lead to confusion and uncertainty.
In most cases, you need to itemize your taxes in order to take advantage of all the tax breaks that accompany home ownership. This might seem overwhelming, but the benefits of completing this process make up for the inconvenience.
Homeowner Tax Breaks:
1. Mortgage Interest Deduction
Mortgage Interest Deduction (MID) is a top tax break for homeowners, which can save you a significant amount of money. In the beginning, the majority of your monthly mortgage payments go toward loan interest, and you can deduct all the interest from your mortgage on your taxes. Keep Form 1098, issued by your lender, with your important records. This form explains exactly how much you can deduct and serves as proof if you are audited by the IRS." [Continue reading...]
Friday, January 13, 2012
Take the Fear out of Homebuying
"With the current low mortgage interest rates and available homebuyer programs, some renters are deciding taking the plunge into homeownership. Are you one of them?
The complexity of the transaction and the increased financial obligations can make buying a home seem a little scary, but you can arm yourself with information. A little research and some help from your Texas realtor can reduce stress and increase your satisfaction with the homebuying process. Here are some tips to help you avoid making common first-time homebuyer mistakes.
Finding the right realtor – Whether you find your Texas realtor on the internet, through a yard sign, a newspaper ad, or a referral, make sure you openly communicate your concerns and expectations. As a first-time buyer, you have specific needs and may need a little more guidance. Your realtor will guide you through the process, from determining your criteria during the home search to walking you through the paperwork at closing.
What can you afford? – Many first-time homebuyers are apprehensive about the mortgage lending process. Don’t let that prevent you from asking questions. If you fail to ask a question that arises, you may miss out on the best deals you qualify for or a key piece of information. From below-market interest rates to down-payment and closing-cost assistance, there are a variety of affordable-housing programs available to first-time homebuyers. Failing to investigate them or assuming you won’t qualify would be a big mistake.
Think about resale – A common mistake that many first-time homebuyers make is not thinking about the property’s resale value before they buy. It might seem a little odd to consider what the home will sell for before you’ve even decided to buy it, but it’s a big factor. The average first-time homebuyer stays in the home less than 10 years, so it makes sense to analyze the home’s resale value from the beginning. Your Texas realtor can help you identify factors that contribute to a property’s resale value.
Find the balance – Buying your first home may require a little bit of compromise on your part. For example, you may have to choose between a new home in a new subdivision and an older home with a big yard and established trees. Since you may have to compromise on one or more features or details, it’s important to narrow down what criteria are most important to you.
Start out by prioritizing your wants and needs and don’t let the emotional component steer you away from those goals. I don’t mean that you should settle …it’s good to be picky, but don’t be unrealistic. You’ll never entirely remove your emotions from the process; just make sure your rational brain steers your decisions, too." [Continue reading...]
Thursday, January 12, 2012
5 Important Steps Before Selling
"Before you start making repairs, before selling your home or marking dates on your calendar for an open house, it's smart to prepare a home selling plan. Of course, you want top dollar, but you could make costly home selling mistakes along the way if your enthusiasm for quickly selling causes you to run out and stick a for sale sign in the yard before you're fully prepared to sell.
Explore your reasons for selling. Everybody has a reason to sell. If you aren't truly motivated or committed to selling -- if it just struck you one morning that you should move to the other side of town and you haven't completely thought through the process -- you could be setting yourself up for disappointment.
Buying a New Home
Most people who sell do so to buy another home. Put together a list of neighborhoods where you may want to live and drive them. Go to open houses. Check out pricing between newer homes vs. older homes. Weigh your options. You might find you prefer to stay where you are.
Call Real Estate Agents
Interview real estate agents, talk to at least three neighborhood specialists. Ask each listing agent to give you a marketing plan that explains what they will do to market your home. In addition, ask the agents to prepare a comparative market analysis for you and ask each for advice about:" [Continue reading...]
Friday, January 6, 2012
Buying a Home Could Be Cheaper Than Renting
"New statistics show that depending on your location, buying a home could be cheaper than renting.
KREM 2's Chris Nguyen spoke to local realtors who say in Spokane, falling home prices and record-low mortgage rates are enticing more people to become buyers, instead of renters.
Officials say homes in Washington State are the most affordable they've been since the 1980's.
Joe Mann with the Spokane Association of Realtors says it's a good time to buy because the average home price in Spokane right now is about $178,000.
Real estate website Trulia.com says that in most parts of the country, buying a home can be cheaper than renting." [Continue reading...]
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