The Realtor Rambles

Renting May Soon Get Pricier

2011-03-20T15:35:00.000-07:00

REALTOR® Magazine-Daily News-Renting May Soon Get Pricier

Mortgage Rates Drop Again This Week

2011-03-05T09:58:00.000-08:00

For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey.

The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year.

The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent.

The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.

"Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds.

First-Time Buyers prefer “move-in” Ready Homes

2011-02-28T16:46:00.000-08:00

A new survey by Coldwell Banker finds that 87 percent of first-time homebuyers who purchased their home within the past year preferred a move-in ready home to one that would require some work.

A home’s location to area amenities was also important to first-time buyers. Nearly four out of five buyers (78 percent) say it was important to find a home close to retail shops and services while three-fourths wanted to be close to their jobs and nearly two-thirds wanted to be near highly-rated schools.

Many buyers were surprised by the immediate benefits they received once they purchased their first home. For example, 67 percent said the market conditions provided them the opportunity to buy a home sooner than they expected, half said they found a home in a more desirable location than they expected, and 61 percent got a home for a better price than expected.

Dallas-Fort Worth Homes and Real Estate - Danny Force

2011-02-26T19:55:00.000-08:00

Dallas-Fort Worth Homes and Real Estate - Danny Force

Housing Starts Jump 14.6% in January

2011-02-22T07:34:00.000-08:00

Housing starts in January reached their highest rate in four months, increasing more than analysts expected, the Commerce Department reports. Housing starts jumped 14.6 percent to a seasonally adjusted annual rate of 596,000 units.

Housing starts in January were helped by a 77.7 percent jump in multi-family homes. Single-family home construction, on the other hand, fell 1 percent.

Meanwhile, new home completions dropped to a record low of 512,000 units in January, falling 9.5 percent from the previous month.

And after housing permits surged in December by 15.3 percent, housing permits for future housing projects sank in January. New building permits dropped 10.4 percent to a 562,000-unit pace in January--mostly pulled down by a drop in multi-family and single-family unit permits.

Tarrant County foreclosure postings down 7 percent

2011-02-12T16:26:00.000-08:00

Residential foreclosure postings dropped 7 percent in Tarrant County for the March 1 auction, while the Dallas-Fort Worth area saw a 9 percent decline, the Foreclosure Listing Service said Thursday.

In Tarrant County, 1,697 foreclosures were posted, compared with 1,834 a year earlier. March postings were also down 10 percent from February.

For the region, which includes Tarrant, Dallas, Denton and Collin counties, 5,071 foreclosures were posted, down from 5,548 a year earlier. The Addison-based real estate research firm said postings in the four counties have topped 4,000 for 30 consecutive months.

"Residential posting activity has been on the high end of the scale for some time now," said George Roddy Sr., the firm's president. "Posting activity tends to fluctuate at least some each month.

"The fact that postings filed for the upcoming auctions in March were about 9 percent lower than both this time last year and compared to last month does not elicit much excitement."

In the year's first quarter, Tarrant County postings increased 4 percent, to 5,439 from 5,234 a year earlier. It was the second-highest quarter, trailing only the fourth quarter of 2009, when 5,535 postings were filed, Roddy said.

Quarterly postings for the region were flat. From January to March, 16,194 postings were filed, a slight increase from 16,137 postings a year earlier. Collin County saw a 4 percent decline in the quarter, and Dallas County a 1 percent drop.

The auctions are held on the steps of the Tarrant County Courthouse. Postings must be filed with the county at least 21 days before the auction.

Generally, 25 percent to 40 percent of postings result in an actual foreclosure. In many of the other cases, homeowners are able to make up the arrears.

Mortgage Rates Hold Mostly Steady This Week

2011-02-04T14:58:00.000-08:00

Mortgage rates mostly remained steady for the week, according to Freddie Mac’s weekly report on average mortgage rates.

The average 30-year fixed mortgage rate increased just slightly this week to 4.81 percent from 4.80 percent the week prior. Mortgage rates have been steadily inching upward since reaching a 40-year low in November of 4.17 percent. Meanwhile, 15-year rates dropped to 4.08 percent this week from 4.09 percent last week.

Five-year adjustable-rate mortgages also fell slightly to 3.69 percent from 3.7 percent last week.

"Mortgage rates held relatively stable this week on news that the economy improved and inflation remained in check at the end of 2010,” says Frank Nothaft, chief economist at Freddie Mac.

Source: “Mortgage Rates Show Mixed Results This Week,” Freddie Mac (Feb. 3, 2011)

Mortgage Applications Bounce Back

2011-02-02T11:49:00.000-08:00

U.S. mortgages were back on the rise last week after a holiday-related slowdown in mid-January, the Mortgage Bankers Association reported.

Mortgage applications gained 11.3 percent in the week ended Jan. 28, according to MBA’s seasonally adjusted index. In the week prior, applications had fallen nearly 13 percent.

Meanwhile, refinancing applications rose 11.7 percent. Loan requests for home purchases also increased 9.5 percent.

Source: “U.S. Mortgage Applications Rose Last Week,” Reuters News (Feb. 2, 2011)

2011-02-01T10:58:00.001-08:00

http://ping.fm/WBoVO

Mortgage Rates Continue to Climb

2011-02-01T10:56:00.000-08:00

Mortgage rates are continuing their gradual climb upwards after reaching record lows. The 30-year fixed mortgage rate rose to 4.8 percent from 4.74 percent the previous week, Freddie Mac reports. The average on 15-year mortgage rates also rose slightly from 4.05 percent to 4.09 percent for the week.

In November, 30-year loans had reached a 40-year low at 4.17 percent and the 15-year mortgage rate was at 3.57 percent.

The average on the five-year adjustable-rate mortgages this week increased to 3.7 percent from 3.69 percent the previous week.

Meanwhile, the Mortgage Bankers Association says it expects mortgage lending to drop considerably in 2011, due to high unemployment, borrowers’ diminished credit coming out of the recession, and more lenders not willing to take on a high risk.

MBA says it expects new loans this year to decrease by 36 percent to its lowest level in more than a decade, falling to $966 billion in 2011 from $1.5 trillion this year.

Earlier in the week, MBA reported a drop in mortgage applications to the slowest refinancing activity in more than a year. Mortgage applications dropped 12.9 percent in the week ended Jan. 21, according to MBA’s seasonally adjusted index.

The index dropped 15.3 percent, which is the lowest level since January 2010. Refinancing activity has continued to decline since October from rising interest rates and tighter underwriting standards.

2011-01-31T15:07:00.001-08:00

http://ping.fm/QBDrA

Tips for Buying Foreclosures

2011-01-25T09:20:00.000-08:00

Tips for buying foreclosures!

Here are some tips to consider:

1. Work with an agent who has access to foreclosure information.
Many home buyers assume that all agents have access to foreclosure listings. It's important to ask.

2. Bank-owned properties generally close faster than short sales.
While short sales can be bargains, they also can take a lot longer. Some banks will negotiate in a timely manner on short sales, but most will prioritize properties they have already repossessed.

3. Always offer less than the asking price.
Don't assume that banks are firm on their price. For example, asset managers responsible for liquidating bank-owned Marco Island, Florida condos are often willing to consider a lower offer.

4. Ask the bank to pay your closing costs.
The worst that can happen is that they say no. Sometimes buyers are surprised to find that banks can be quite accommodating when they want to.

5. Get pre-approved from the right bank.
When making an offer on a short sale, it's often strategically helpful to be pre-approved by the same bank. During negotiations, this may tip the scales in your favor.

RISMEDIA, January 25, 2011.

The Top Ten Packing Tips for your Next Move

2011-01-24T10:08:00.000-08:00

Packing is not an activity that many people enjoy or gladly anticipate. In fact, packing can be downright laborious and stressful. However, with the right amount of planning and forethought, this dreaded activity can actually be completed without too many headaches.

Here is your game plan for easing up your packing stress:

1. Start early – The absolute best thing to do is start packing early. Even if the move is several months away, there are a number of tasks you can begin taking on regarding packing so that you don’t find yourself short on time and in over your head packing at the last minute.
2. Take it slow – Starting early gives you the opportunity to take the packing process slowly. Tackling one room each week, for example, is a sensible goal, as you can really take the time to sort through your belongings and decide what stays and what goes.
3. Hold a garage sale – Speaking of things that go, consider holding a garage sale to get rid of unwanted belongings and housewares. A garage sale is also a great idea for earning extra cash to cover your moving costs and expenses!
4. Consider what you can’t take with you – One of things that every seller should consider is where they are moving and what they can and cannot take with them. For example, it may make sense to take measurements of the rooms in your new home to get a better idea of how your furniture will fit into the space. If you can’t accommodate all your furniture, it makes more sense to get rid of it now and avoid taking it with you.
5. Donate or gift – If you can’t bring all your belongings with you, consider gifting or donating them.
6. Use a dot system – Head to your local office supply store and pick up different colored dot stickers. Allocate a color for each room and stick it on the appropriate box. The stickers will be easily seen so you can be sure you are directing the packed boxes to the appropriate area of your new home.
7. Hit your local liquor store – Liquor stores have loads of boxes and, because they are constructed to hold heavy liquor bottles, you can be sure they are strong enough for your packing needs.
8. Keep your valuables safe – Instead of packing up your belongings and leaving them for the movers, ask a close friend or family member to hold onto your valuables until you move.
9. Avoid overpacking – If you can’t pick up a box once it is packed, it is overpacked!
10. Consider what to not pack – Don’t forget that you and your family will need a certain number of personal effects during the move, so make sure you don’t accidentally pack them.

December Existing-Home Sales Jump

2011-01-20T12:50:00.000-08:00

Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.

Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” he said. “The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”

The national median existing-home price for all housing types was $168,800 in December, which is 1.0 percent below December 2009. Distressed homes rose to a 36 percent market share in December from 33 percent in November, and 32 percent in December 2009.

“The modest rise in distressed sales, which typically are discounted 10 to 15 percent relative to traditional homes, dampened the median price in December, but the flat price trend continues,” Yun explained.

2011 Mortgage Trends: Jumbo Loans, Cash Buys

2011-01-18T10:06:00.000-08:00

The number of mortgage applications for home purchases is expected to become a bigger part of the mortgage market in 2011 as home prices stabilize, predicts the Mortgage Bankers Association. Refinancing has mostly dominated in recent months as home owners looked to lock-in low interest rates, but experts predict refinancing to slow as new mortgage shoppers dominate.

Real estate analysts predict the other following trends in the mortgage market for 2011:

Rates on the rise. The Mortgage Bankers Association predicts mortgage rates to rise slightly in 2011 and hover around 5 percent. They expect rates to increase to about 6 percent in 2012.

Jumbo loans become more attractive. Jumbo loans (loans over $417,000 in most housing markets and above $729,750 in high-cost housing markets) are expected to pick up pace in the next few months. Jumbo loans often have higher mortgage rates than conforming loans. However, with mortgage rates on jumbo loans dropping, experts predict a hike in refinancing and purchase applications for high-end housing.

All-cash purchases. All-cash purchases represented about a quarter of all existing home purchases in the last four months of 2010, according to Lawrence Yun, chief economist of the National Association of REALTORS®. He expects all-cash purchases to continue to represent a big part of the real estate landscape in 2011.

Slow and complex mortgage loan process. The time between application and closing can take as much as 60 days and that’s not expected to get any faster, experts say. Lenders often recommend borrowers lock in a loan 60, 75, or 90 days to help ensure the loan process will be completed within that lock-in period. The industry's new levels of documentation and verification that is now required is causing lengthy delays in the loan process, experts say.

Mortgage Rates Drop Slightly

2011-01-14T07:11:00.000-08:00

Mortgage rates didn’t fluctuate too much this week, dropping only slightly in some cases while the conforming 30-year fixed mortgage rate held unchanged at 4.94 percent for the week, Bankrate.com reports.

Bankrate.com reports the following average rates:
• 15-year fixed mortgages fell to 4.29 percent.
• Large jumbo 30-year fixed rates dropped slightly to 5.57 percent.
• 5-year adjustable rate mortgages fell to 3.88 percent.

“The average 30-year fixed mortgage rate has been particularly docile, with the average rate fluctuating less than one-tenth of a percentage point over the past month,” according to Bankrate.com. “A heavy dose of economic data and ongoing debt issuance by the U.S. Treasury have the potential to introduce some volatility to mortgage rates over the next week.”

Mortgage rates have remained at historic lows for several years. The last time mortgage rates were above 6 percent was November 2008.

Source: “Bankrate: Mortgage Rates Mostly Lower,” Bankrate.com (Jan. 13, 2011)

Mortgage Rates Drop Slightly for the Week

2011-01-10T14:11:00.000-08:00

Interest rates took a slight dip this week as economic uncertainty continued to plague the market, according to Bankrate.com’s national survey of large lenders.

The average 30-year fixed rate mortgages dropped slightly to 4.94 percent for the week. Meanwhile,15-year fixed rate mortgages were 4.32 percent for the week, while 5-year adjustable-rate mortgages held nearly steady at 3.99 percent.

The drop in rates suggests the financial market may have overreacted to the inflation fears that had originally pushed rates higher in late December, according to Bankrate.com.

"Unemployment is starting to stabilize. Housing is stabilizing, although there are still soft pockets. Stocks are up, and there are inflationary fears with energy prices going up, so directionally and logically, we're in for potentially higher interest rates," predicts Anthony Hsieh, chief executive of loanDepot.com, a direct mortgage lender in Irvine, Calif.

Resolving to buy a home in 2011? Resolve now to do it right

2011-01-09T06:36:00.000-08:00

Many people start the new year with resolutions about losing weight, starting a new physical fitness routine, or getting their financial house in order. How many of you are making resolutions about buying a home?

All resolutions are only achievable if you start with realistic expectations. The resolution's goal may be very short-term (think … I will finish mailing my Christmas cards by January 15) or longer-term (think … I will fit into my old high school dress in time for the reunion). The experts agree there are two keys to success in achieving your goals. First, commit the goal to paper. Second, tell a friend who will hold you accountable for progress toward the goal. The same keys are critical to achieving success when resolving to purchase a new home.

Buying a new home doesn't just happen. Most homebuyers spend considerable time, effort, and thought when searching for their next house to call "home." Buying your next house is not as simple as going to the store and buying a loaf of bread. You can't see through the wrapper, you don't know how the house is going to fit your lifestyle or budget and, until you talk to a lender, you don't even know what kind, style, or size of home you can afford. Like all resolutions, buying a house requires commitment and effort.

For 2011, it's more important than ever to have a homebuying plan. In the last month or so, interest rates on home loans have gone up about one-half point. That means that the $150,000, 4% fixed-rate, 30-year home loan you might have secured in November will cost about $50 more per month in January just to pay the extra one-half percent interest on the loan. You'll have to pay an extra $600 a year to live in the exact same house. And, you will need about $1,500 additional income each year just to qualify for the home loan. Most financial gurus are predicting mortgage interest rates will rise in the foreseeable future. Even if the price of your dream home does not go up, the monthly payment could rise dramatically if the gurus are right and interest rates continue to rise.

Without a strong commitment to your house-buying resolution, you could miss out on the home of your dreams or the "buy of the year." It's about as easy to begin a diet tomorrow, as it is to begin your home search tomorrow. There's always an excuse to put off starting something important; that piece of pie looks tasty and the diet will just have to wait. The same is true with a house purchase. You buy the new shoes, get the new car, or spend extra money on a nice dinner out. The next thing you know, the month is gone, the year is gone, the money is gone, and you are no closer to homeownership.

So, how do you make a commitment to buying a home? First, follow the expert advice and commit your plans to paper. Don't just make a mental note about buying a house, actually write down your goal: "I will buy a house in 2011." Once you write your goal, take the time to write down exactly what items are important to you about your next home. Do you want three bedrooms or four? It's important to have a yard (big or small), or perhaps you want "country property" on one or more acres? What is more important, a gourmet kitchen or a large family room for entertaining? How far are you willing to commute to work? If you have children, is it important that the home be located in a specific school district? As you begin thinking about your next home, many more "wants" for your next house will come to mind.

The next step in the resolution process is to tell a friend. I recommend when committing to purchasing a house that you don't tell just any friend but rather, tell a knowledgeable friend. Tell someone who knows the "ins & outs" of the homebuying process. Tell someone who has first-hand experience with the entire process – what houses are for sale, how home financing works, what to expect from a home inspector, the meaning of title insurance, what did other houses in the neighborhood sell for? I strongly recommend the friend you select to help you keep your resolution and achieve your goal of homebuying be a Texas REALTOR®.

A Texas REALTOR®, under state law and the National Association of REALTORS® Code of Ethics, is obligated to look out for your best interests. The term REALTOR® has come to connote competency, fairness, and high integrity, resulting from adherence to a lofty ideal of moral conduct in business relations. When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly.

As a Texas REALTOR®, I would be glad to help you keep your resolution to purchase a house in 2011.

Sellers … let go (while taking control)

2011-01-05T06:57:00.000-08:00

As a seller, you have no control over some things that homebuyers factor into their purchase decisions. Location comes to mind. You can't do much about the quality of schools in your area or the nearby shopping options. My first house had no attic.

On the other hand, there are many things you can do to make your property more attractive to buyers. You could take care of long-needed repairs. You could tackle a remodeling project or spruce up your landscaping. You could "stage" your home to increase its appeal. And then there's the biggie … you have control over the
asking price.

These decisions and others will affect how long your home is on the market and how much you sell for. The key is to figure out which changes will be most successful in helping you meet your goals.

As a Texas REALTOR®, I can help you understand what actions will make the biggest difference to buyers. Once you know more about these factors, you can make good decisions about how to proceed with the sale of your house.

Marty Kramer | Consumer columnist

10 Real Estate Predictions for the New Year

2011-01-03T06:29:00.000-08:00

The start of a new year is often a time of reflection, as well as a time of anticipation for the future. It’s no different for real estate professionals, many of whom have weathered the recession and are now optimistic about 2011. From the return of new construction to the creation of healthier homes, the following are 10 residential real estate trends they see for the coming year:

1.) Building is back: After three years of little to no new development, John Wozniak of Wheaton, Illinois-based J. Lawrence Homes said the builder is excited about 2011. “After a couple of very challenging years, the market for new-construction housing is showing signs of life. Slowly but surely, homes are selling and new properties are breaking ground, such as the two communities we opened this year in Lynwood and North Aurora,” he said. “We’ve had encouraging sales and I believe they point to an uptick for 2011.”

2.) Apartments continue to thrive: If there has been one bright spot over the past few years in the real estate industry, it has been the rental market.

“People have realized the many benefits of renting, from having more flexibility with your housing commitments to a higher level of finishes and amenities. And, this demand will continue to outpace supply,” said Steve Fifield, president of Fifield Cos. “Appraisal Research reports that Chicago’s Class A downtown apartments are at a nearly 95 percent occupancy rate, and those numbers will continue to stay very strong for 2011.”

3.) Opting for established: The mega-communities in the exurbs are a thing of the past, said Brian Brunhofer of Meritus Homes. Instead, 2011 will see builders move toward smaller neighborhoods or pockets of homes in established communities. “Close-knit communities with respected homeowner associations, mature landscaping and neighbors waiting to greet you – that attractive quality of life is going to appeal to buyers much more in 2011.”

Seconding the movement toward established communities is Jeff Benach of Lexington Homes. “Buyers are looking for a safer investment for their home purchase,” he said. “We won’t see them roll the dice like in the past on a fast-growing town in a far-out suburb. They want a proven area with access to retail development and employment corridors. They don’t want to wait for the surrounding area to be built. They want everything already in place,” he said.

4.) Make it modern: Chalk it up to “Mad Men” or simply a pendulum swing in taste, but either way transitional and warm-modern design will be prevalent in 2011, said Brian Goldberg, a partner in LG Development Group. “Our clients are looking for a cleaner approach to the style of their homes – more mid-century and less traditional with a warm and tailored aesthetic,” he said.

Ray Hartshorne, principal of Hartshorne Plunkard Architecture, agrees. “From the single-family side, our clients are gravitating toward modern design instead of strictly traditional, that is simple, clean line exteriors and open floor plans that are comfortable for the family and versatile for entertaining,” he said. “In the multi-family sector, now more than ever, we are seeing an interest in contemporary-themed and luxurious interior design for lobbies and common areas.”

5.) Buying for the long term: The Census shows the average person moves about 11 times, but Jim Chittaro, president of Smykal Homes, predicts that number will slowly decrease. “Thankfully, the idea of a home as a short-term moneymaker is essentially gone, so when people do buy, they’ll do it with the intention of staying put for closer to 10 years rather than two to three,” he said

This means people will be studying floor plans more closely, to ensure the home will grow with them, Chittaro continued. “Buyers want to be sure the home will suit their needs not only now, but down the road, whether they plan to expand their family or prepare for kids to leave the nest,” he said. “Floor plans that can adapt to lifestyle changes with flexible features like second family rooms should do well in 2011.”

Brunhofer agrees that more buyers will be looking for a home for the long haul. “It’s not just floor plans that buyers are going over with a fine-tooth comb,” Brunhofer said. “Our buyers are very careful about school districts. They want to know they can send all of their children to a school with a proven track record and not have to relocate a few years down the road to ensure a good education.”

The shift to long-term buyers will also put long-term builders in the spotlight. “People are hesitant to buy a home from a builder or secure a mortgage from a lender they don't perceive to be well-established,” said Benach. “Buyers want to know their builder is committed to them and the community, and that it’s not about making a quick buck or boosting a shareholder’s financial interest. That personal connection is really important.”

6.) Upping the ante on amenities: In 2011, developers will continue to create new and exciting amenities to differentiate their properties and keep them relevant in the marketplace, said Tony Rossi, president of RMK Management Corp. “Renters are looking for something special, like an outdoor grilling area or special events like dance lessons,” he said.

But it’s not just enhanced outdoor spaces in apartments that will matter in 2011. Benach thinks condo and townhome buyers will also place a higher importance on outdoor space in the coming year, especially those who live in an urban setting.

“People may realize they don’t need to live with as much square footage inside their home, so to compensate they’ll want a place to call their own outside their home,” said Benach.

7.) High-tech takes over: Running your home entertainment system, appliances and lighting from a centralized control panel is old news. Going forward, we’ll see more homeowners want a smart phone app that can control their residence remotely, noted Goldberg.

“Each year, the demand increases for home technology that makes homeowners’ lives easier,” he said. “We’ll get to a point, and some of our clients are almost there, where homeowners can leave work and by activating an app on their phone have all of their home electronics queued up when they walk in the door – the oven is preheated, lights come on and a TV show turns on when motion sensors recognize they’ve walked into the room. It may sound like a movie, but some of this technology we can build into homes now.”

8.) Smaller homes stay the course: The average size of a new home decreased for the first time in decades from 2008 to 2009, and that trend will continue into 2011, said Benach.

“This trend is fueled by first-time buyers with smaller budgets, requiring smaller homes,” he said. “New buyers will have to be more conservative with their mortgages and will need to pay a higher percentage for a down payment, which means they’ll need a home with a smaller price,” he said. “People won’t be buying more than they need. So to meet their needs, we’ll see builders continue to trim the size of their homes and look for new ways to make square footage work harder.”

9.) Green and gorgeous: As the green movement continues to grow, high-end builders and developers have found ways to make homes both green and gorgeous. “The old mind set was that a green home couldn’t also be stylish and sophisticated. It was as if the two concepts were mutually exclusive,” said Hartshorne. “But new products and forward-thinking design have proved that today’s homeowners can have both. Also, building a green home doesn’t have to break the bank. We are constantly being introduced to attractive, sustainable building materials that are more cost effective than in the past.”

10.) Healthy homes: When you consider a study by the National Institutes of Health that found the number of people with allergies is as much as five times higher than 30 years ago, the trend toward building homes with a healthier environment will also gain ground in 2011, said Goldberg.

“Indoor air quality, low VOC paints and adhesives, and all-around healthier materials are becoming more and more of a concern for people building homes – especially for those with children,” he said.

Rick Croce, from Wheaton-based Smykal Renovations, said this trend applies to existing homes, too. “Due to the economy, many people have decided to stay put in their existing home, which means they’ll be investing in changes to make it look better and live healthier,” he said. “We expect to be pricing out more jobs that include installing HVAC systems with better filtration, using low-VOC materials and even replacing old doors and windows to safeguard against exterior pollutants.”

Housing Starts Predicted to Hit 3-Year High

2011-01-02T09:10:00.000-08:00

Housing starts will probably reach a three-year high of 739,000 in 2001, creating about 500,000 jobs and helping trim the unemployment rate to 9.1 percent, said David Crowe, chief economist for the National Association of Home Builders, in an interview with Bloomberg.

“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”

Job growth in other sectors, as well as population growth, will also likely have an effect. The number of U.S. households will rise 0.7 percent to 118.7 million in 2011, the largest annual gain since the beginning of the housing crisis in 2007. Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, N.J., expects jobs to rise by an average of 200,000 per month in 2011.

The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”

Source: Bloomberg, Joshua Zumbrun and Kathleen M. Howley (12/28/2010)

2011: The Year a House Again Becomes a Home

2010-12-29T08:05:00.000-08:00

by THE KCM CREW on DECEMBER 29, 2010

For almost a decade now, every time we talked about real estate we immediately discussed money. We didn’t talk about the value of a home but instead about the price of the house. We didn’t worry about a roof over our heads but instead the ceiling on our interest rate. We didn’t care as much about where we raised our family as we cared about how much we increased our family’s net worth.

That will change in 2011. The KCM Crew believes very strongly that real estate will return to what it has been for the 200+ year history of this country: a place for us and our families to live comfortably. It will also prove to be a great long term investment as it always has been.

Our parents and our grandparents didn’t buy their homes as a short term financial investment. They bought it so they had a place of their own to come home to at the end of the day; a place to raise their family; a place they could feel safe.

Sure they dreamed of a ‘mortgage-burning’ party. They realized it was a form of forced savings. They were taught that, if they paid their mortgage every month, they would wind up with a little retirement account decades later.

And, they realized that wouldn’t happen if they rented.

However, in the last decade, we somehow forgot that the financial aspect was the serendipity not the major reason to buy. We believe that 2011 will be the year that people return to the historic reasons families purchased a home. This is the year when we again remember that homeownership is a major part of the American Dream.

What about the challenges to a housing recovery? Let’s look at them.

The Economy

Most reports are showing that the economy is doing better than expected. This shopping season provided additional proof of this point. As the economy recovers, so will consumer confidence. This will be great news for housing.

Unemployment

There is much talk about a ‘jobless recovery’. We agree that unemployment will continue to be a challenge. However, when you talk about housing, it is not the unemployment rate that is all telling. Instead, it is the change in the rate. As unemployment skyrocketed, people started to worry about their own job. Any change creates concern. Unabated concern turns to fear. Fear causes paralysis. The spike in unemployment has plateaued. People no longer have the felling that ‘they are next’. The fear will diminish and people will start moving on with their lives. This too will be great news for housing.

Interest Rates

It seems the bottomless pit in which rates have been falling does have a floor after all. And it seems we have found it. Those purchasers who had been waiting for the best interest rate may have already missed it.

Prices

Economists are projecting that prices will not see any appreciation in 2011. Sellers who had been waiting for 2006 to return will come to the realization that waiting any longer makes little sense. They will instead decide to get on with their lives and sell this year.

Prices probably will soften further. However, the possible savings to potential buyers will be minimized by a rise in interest rates.

Bottom Line

This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value.

Tax Deal Has Home Owner Benefits

2010-12-24T09:01:00.000-08:00

Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are:

Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.

Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.

Source: USA Today, Sandra Block (12/21/2010)

Four Steps to Sustainable Homeownership

2010-12-22T08:33:00.000-08:00

Purchasing a home is an exciting step in anyone’s life, but there is more to the process than just getting approved for a loan. In fact, it is even more important to make certain you are ready to keep your home for the long term. To that end, here is a look at 4 things you can do to make your homeownership sustainable.

Step #1: Increase Your Knowledge

The first step you need to take is to learn as much about your mortgage loan options as possible. This way, you can be certain to apply for the best type of loan to meet your personal needs. In addition to learning about the pros and cons of various loan options, you need to learn more about how credit scores, discount points and other factors affect the overall cost of a loan. As part of this process, you should contact your local HUD housing counselors to learn more about special buyer programs that might be available in your area.

Step #2: Get Your Finances Under Control

Before you can purchase a home, you need to be certain you will qualify to buy it. If your credit score is below 620, you will be better off taking some time to bring up your score before you make a purchase. This way, you can keep your interest rates down, which will help keep your mortgage payments down and will make it easier for you to keep up with your monthly payments. Of course, by getting your finances under control before you buy, you will also be more likely to be able to stay on top of your bills after you make a purchase.

Step #3: Create a Budget

In order to remain safely within your means, your mortgage payments should never be more than 28 to 33 percent of your total monthly gross income. If you have other debts, such as car payments, student loans, credit cards or child support payments, the total cost of these debts and your mortgage payment should not exceed 36 to 40 percent of your monthly gross income. Therefore, before you make a purchase, carefully analyze your debts and create a budget that will ensure your monthly payments remain below this figure while also leaving enough money available to put toward a savings plan.

Step #4: Get to Saving

Before you start looking for a home, you should have plenty of money saved up to apply toward the purchase of your home. In most cases, Earnest money, which is a deposit provided to the seller, will be required when making an offer. Earnest money requirements can range anywhere from $500 to two percent of the purchase price. In addition, depending upon the type of loan you get, you might need to make a substantial down payment or closing costs. In addition, by establishing good saving habits now, you will be better prepared to handle your finances effectively in the future.

Growing Economy Big Factor for Buyers

2010-12-21T08:43:00.000-08:00

Economists are surprisingly positive about the impact of rising interest rates on home sales.

The consensus is that while rates are up from where they were, they are still at historically low levels and rock bottom rates are only a part of what encourages people to buy homes. More important factors could be jobs and other financial issues, which appear to be improving.

“Since the recent rate increases have essentially just undone the declines from earlier months, it is hard to see why sales should drop significantly further from current levels,” wrote Goldman Sachs economist Ed McKelvey in a research note published Thursday evening.

Source: The Wall Street Journal, Nick Timiraos (12/17/2010)

Home Building Edged Up in November

2010-12-20T09:06:00.000-08:00

Housing starts increased 3.9 percent last month from October, the U.S. Department of Commerce reports.

Despite the gain, activity remains 45 percent below the threshold — 1 million units annually — that is considered healthy. And permits, which gauge future demand, slid 4 percent to the lowest level since April 2009.

In November, builders broke ground on 555,000 units, fueled by a 6.9 percent jump in construction of single-family homes; multifamily projects, conversely, declined 9.1 percent.

Source: Boston Globe (12/17/10)

Rising Rates Could Get Buyers Moving

2010-12-14T10:20:00.000-08:00

Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.

While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.

Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.

The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.

Source: Fortune, Nin-Hai Tseng (12/10/2010)

Advocacy Group Urges FHA Reform

2010-12-13T06:10:00.000-08:00

The Center for Responsible Lending on Thursday called on the Federal Housing Administration to take further action to protect consumers from what it characterized as “Wild West lending.”

"The FHA was created to make mortgages accessible, affordable, and sustainable. Without clear rules to prevent overcharging, abuses are inevitable. That undercuts the reason the program was created in the first place," said Evan Fuguet, senior policy counsel for the center, in a statement.

The CRL recommended that the FHA adopt the following policies:

· Immediately apply pending Federal Reserve rules that, come April, will ban kickbacks and other incentives to overcharge for mortgages.
· Establish reasonable limits on loan costs to prevent inconsistent and abusive pricing.
· Maintain a strong focus on access to fair and affordable credit for all families regardless of race.
· Continue to strengthen efforts to enforce FHA rules.

Source: Center for Responsible Lending (12/09/2010)

How Home Prices, the Economy, and Your Attitude Are Connected

2010-12-11T08:13:00.000-08:00

Home prices are tied to the economy very closely. When the economy is running smoothly, home prices and sales are soaring and people feel more secure with their money and their stability. But when one of these things changes, they all change with it.

If the economy starts to turn, people begin to lose jobs and want to leave the area searching for different work. Because there is less work, less people want to move to the area, leaving sellers stuck. As the housing market begins to lower, home prices drop and people aren’t worth as much money as they were before. They begin to feel poorer and stop making big ticket purchases. The loss of that cash flow hurts the economy more, and the spiral continues.

Housing Market

If the housing market begins to turn, then homes lose value, people feel poorer and the economy suffers. If people begin to feel poorer without either the economy or the Dallas housing market turning, they can drag the whole thing down. Sometimes politicians or other interest groups want people to feel poorer to sway public opinion, so it is possible for this to occur, and it has occurred in the past.

You can do your part to help the economy and the housing market by remaining calm about your finances. Focus on making smart economic decisions and stay calm. It’s important to prepare for a down-turned economy, and keep as level as possible. If you practice this when the market is high, it will be easier on your family when the market is low.

Easier Said

This advice is easier said than done, especially with job loss, the rise of foreclosure rates, and increasing Dallas short sales. The light at the end of the tunnel is getting closer. It will be a long battle to get there, but we will be seeing relief.

Rising Interest Rates Stall Some Home Sales

2010-12-10T07:32:00.000-08:00

Rising interest rates have closed the door on $1 trillion in loans, said Scott Buchta, an investment strategist at Braver Stern Securities in Chicago.

As rates on loans guaranteed by FHA rise above 5 percent, fewer and fewer buyers qualify. LendingTree Chief Economist Cameron Findlay pointed out that a 30-basis-point rise in the 10-year Treasury note's yield would typically add about $45 per month to the payments on a $250,000 mortgage.

"Should rates rise higher from here, you'll start to have an impact on a purchase market that is just starting to recover," said Buchta.

Source: Reuters News, Al Yoon and Daniel Trotta (12/08/2010)

Holiday Decor Can Catch a Buyer's Eye

2010-12-09T07:08:00.000-08:00

Tastefully done holiday decorations can be the eye candy that captures a buyer’s interest, says Lee Ralph, an associate with Coldwell Banker North Tampa (Fla.).

“We even negotiated a contract on Christmas Day last year,” Ralph says.

Ralph suggests using elegant themes and warns against over-decoration. “That may keep the buyer from being comfortable and able to visualize the home as their own,” Ralph says.

Designer Rick Davies, co-owner of Lafayette & Rushford Home, a home decor store in Dunedin, Fla., makes these suggestions:

· Work with what can’t be changed. Work carefully with the color, style, and age of the home.

· Consider proportions. Don’t put a huge wreath on a tiny door.

· Light the way. Simple pathway lights are a gracious way to greet potential buyers.

· Be subtle. Choose contemporary colors, including bright greens, lemongrass, golds, and ambers.

· Natural is in. Natural-look and organic materials are in vogue, including berries, artichokes, moss, twigs, acorns, and feathers.

Source: St. Petersburg Times, Terri Bryce Reeves (12/04/2010)

Things to Consider Before Doing a Remodel

2010-12-07T14:05:00.000-08:00

Because contractors continue to have difficulty finding work in many parts of the country, many home owners are enjoying home-remodeling bargains.

Before signing a contract, here are some things Tara-Nicholle Nelson, author of "The Savvy Woman's Homebuying Handbook" urges people to consider:

· When the market is flooded with properties, buyers are frequently unwilling to pay for upgrades, although an upgraded home may sell more quickly than a dated one.
· Sellers concerned about guaranteeing a remodeling return on investment should focus on preserving the value and the likelihood of resale instead of on aesthetics.
· Don’t overbuild. McMansions have fallen out of fashion.

Source: Boston Globe, Tara-Nicholle Nelson (12/06/2010)

Mortgage Rates Continue Upward Climb

2010-12-06T11:49:00.000-08:00

Freddie Mac reported that fixed-rate mortgages rose for a third consecutive week during the period ended Dec. 2.

· Interest on 30-year loans inched up to 4.46 percent from 4.4 percent.

· Rates on 15-year mortgages averaged 3.81 percent, an increase from 3.77 percent a week ago.

Adjustable-rate mortgages were slightly higher as well:

· One-year ARM rose up to 3.25 percent from 3.23 percent

· Five-year ARM moved up to 3.49 percent compared to 3.45 percent.

Source: Inman News (12/03/10)

Hurdles to Buying A Home

2010-12-04T07:48:00.000-08:00

A lot of hype out there right now about the time being right for buying a home because home prices are down and mortgage rates are near all time lows – making home ownership very affordable. But, so many people are sitting on the sidelines according to NAR as home sales are 25% less than figures from 2009.

So what has people sitting on the sidelines if NAR’s figures are accurate?

First off, the $8000 home buying tax credit that the Bush administration started and the Obama administration renewed and extended has expired (except for Vets – yes Vets can still take advantage of low VA rates and 100% financing using the tax credit until April 2011). Many real estate and mortgage experts suggest this has had an impact on the market slow down. Ok, I buy it. Next reason…

Credit Scores – Mortgage guidelines are the toughest they have been in years. It seems like every month we get a notice saying that FICO score requirements for mortgage programs go up. Currently many lenders are requiring credit scores of 640 or greater to qualify. Some predict that with this sole requirement, at least 1/3 of all possible US based home buyers cannot qualify because their scores are less than 640. Ouch for a housing market turnaround.

Income and Assets – mortgage qualifications have tightened their analysis of job history, income, and assets. Bank statements, for example, are looked at more closely than ever with even the slightest elevated deposits questioned. A shaky job history could lend itself to you getting the thumbs up or thumbs down in the case where an underwriter has some discretion about approving your mortgage. And for income, you must be able to solidly prove it with pay stubs, W-2′s and tax returns, etc. If you are self employed be prepared for an even tougher road.

Appraisals – Perhaps one of the most frustrating thing is the continued weakness in the housing market caused by foreclosures and short sales. Perfectly good homes where the owners are not in financial trouble are facing diffculty in being fairly valued because they are surrounded by now substandard foreclosure and short sale homes. Sellers can’t agree on price with buyers and home values are not matching up with sales contract prices. According to some, the business of appraising is just a mess.

And finally, the fear of the unexpected – With the economy in the state that it is in, many people have little confidence in job security or that the economy has made a turn for the better. With job security at question as well as fears that home prices are still not at the bottom it is no wonder why so many people are waiting.

One proactive thing you can do if you are looking to buy a home is to get yourself pre approved with a mortgage lender. At the very least you can take care of your credit scores and personal finance hurdles in the mean time if you also have fears about the economy and housing prices.

4 Reasons To Buy A Home During The Holidays

2010-12-03T07:58:00.000-08:00

Real estate sales and mortgage loan transactions tend to slow way down during the winter holidays. This phenomenon is certainly understandable – there is enough going on with holiday shopping, traveling, parties, cooking, and decorating without adding a move. But before you pack it in and close up shop until after New Years consider these reasons to buy a home during the holidays:

1) Get A Great Deal – Anxious sellers with homes on the market are likely thinking their chances of selling during November or December are slim. You may be able to get an even lower price accepted at this time of year. Consider the cost of 2 – 3 additional mortgage payments and maintaining the home for that time. There is also the added value of the peace of mind for the sellers that comes with closing before the new year.

2) Undivided Attention – Because home sales decline during the holidays both real estate agents and mortgage professionals are less busy and will be able to devote more time and energy to the deals they are working on. It is good to consider holiday closings and vacations that may be scheduled and to be up front about how this might affect the time line of the purchase.

3) Available Contractors – If a home requires some work before it can be moved into this is an ideal time of year to have it done. Most general contractors and specialists such as electricians, painters, roofers, and plumbers are not very busy around the holidays. Most home owners don’t want to undertake a home improvement project with the holidays looming and risk serving Thanksgiving dinner with a torn up kitchen, or having work done on the house while the in-laws are in town for Hanukkah. Have the pick of the professionals in the area and possibly a discount as well by getting projects started now.

4) Time Off – While moving might not be the most relaxing way to spend the time around the holidays it is convenient in that it’s a time when many people have vacation from work and school. If the office is closed for a few days around the holidays it could be an ideal time to move and start the new year in the new house! For moves scheduled before the holidays homeowners with children should be sure to head off their kids’ fears and include Santa when updating everyone with the new address.

Bankrate: Mortgage Rates Dip Down

2010-12-02T07:14:00.000-08:00

Mortgage rates retreated last week, following two consecutive weeks climbing higher. The average conforming 30-year fixed mortgage rate decreased to 4.58 percent, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage decreased to 3.97 percent, and the larger, jumbo 30-year fixed rate dipped as well to 5.18 percent. Adjustable rate mortgages dropped as well, with the average 5-year ARM at 3.66 percent and the average 7-year ARM falling to 3.97 percent.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58 percent, the monthly payment for the same size loan would be $1,022.90, a savings of $219 per month for a homeowner refinancing now.

SURVEY RESULTS

* 30-year fixed: 4.58% -- down from 4.62% last week (avg. points: 0.37)
* 15-year fixed: 3.97% -- down from 4.02% last week (avg. points: 0.32)
* 5/1 ARM: 3.66% -- down from 3.71% last week (avg. points: 0.38)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

Employment growth helps Texas economy outpace nation's

2010-12-01T06:54:00.000-08:00

By David S. Jones | columnist

Employment in the Texas private sector is keeping the state's job growth headed in the right direction.

In his Monthly Review of the Texas Economy for October, Ali Anari, Ph.D., says the state added 166,000 jobs during the fiscal year ending in September.

"That's an annual growth rate of 1.6%," says the Real Estate Center research economist. "Over the same period, the U.S. economy gained 321,000 jobs, an annual growth rate of 0.2%.

"The private sector posted an annual employment growth rate of 1.9%," reports Anari, "compared with 0.5% for the U.S. private sector during the year."

Texas' seasonally adjusted unemployment was 8.1% in September, unchanged from September last year. Meanwhile, the nation's September-to-September rate decreased from 9.8% to 9.6%.

"All Texas industries except trade, construction, and information had more jobs in September 2010 than they did 12 months earlier," Anari points out. "Mining and logging ranked first in job creation with an annual employment growth rate of 14.1%. The average number of active rotary rigs increased from 379.4 in October 2009 to 687.96 (in October 2010)."

The complete report is available online free at http://recenter.tamu.edu/econ/

Mortgage Purchase Applications Hit 6-Month High

2010-11-30T07:36:00.000-08:00

Mortgage applications to purchase homes increased 14.4 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.

The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.

On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.

“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.

“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.

Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.

Source: Mortgage Bankers Association (11/24/2010)

Dallas-area home prices are largely unchanged, a U.S. agency reports

2010-11-26T17:36:00.000-08:00

By STEVE BROWN / The Dallas Morning News

Dallas-area home prices were basically unchanged from a year ago in the third quarter, according to the latest U.S. government estimate.

The Federal Housing Finance Agency also said that Fort Worth-area prices were down 1.15 percent from a year ago in its report released Wednesday.

Nationally, prices were down 3.2 percent from third quarter 2009, the agency said. That compares with a 0.3 percent gain in the Dallas area.

The federal home price index is based on mortgages issued by government-sponsored mortgage companies – Freddie Mac, Fannie Mae and FHA. That makes the data different from price reports that use a broader measure.

The National Association of Realtors reported recently that Dallas-Fort Worth area home prices were up 1.6 percent in the third quarter based on sales through the local Multiple Listing Service.

Texas, with its overall 1.1 percent rise, was one of the top states for home price gains in the third quarter, the FHFA said.

The biggest declines were in Idaho , which was down 9.8 percent, and Arizona, down 9.3 percent.

Among individual cities, Deltona-Daytona Beach, Fla., topped the list of losers at 15.68 percent, followed by Bend, Ore., with a 13.73 percent annual price drop.

The largest annual price increases were in Battle Creek, Mich., up 4.39 percent, and San Jose, Calif., 4.10 percent.

Mortgage Rates Rise Significantly

2010-11-24T07:53:00.000-08:00

Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.

Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.

The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.

Why I'm jealous of today's homebuyers

2010-11-23T09:44:00.000-08:00

By: Marty Kramer | Consumer columnist

When I bought my current home, nobody was talking about real-estate-market woes or foreclosure troubles or a struggling national economy. And yet, I'm a little jealous of buyers today.

The big story back then was the insane seller's market we were in. Time after time, my wife and I would look at a home hours after it came on the MLS only to learn it was already under contract.

Many houses sold before ever making it to the MLS. Bidding wars were common, and good properties fetched asking price or above. Seller concessions? Forget it.

My wife and I spent about seven minutes in the home we now own before telling our REALTOR® we would make an offer. Full price, of course. Even then, we worried someone would outbid us.

We asked the sellers if they could adjust the closing date so we wouldn't have to move twice. I don't know if they laughed at our request … they knew we had
zero leverage.

It all turned out well. My family is happy in our home, and we love our neighbor-
hood. Still, it would have been nice to have had more time, more choices.

Every real estate market has pros and cons. Right now, interest rates and housing inventory are extremely attractive. The market is pretty balanced, slightly favoring buyers in many locales. If your personal situation is favorable for purchasing a home, why hesitate? Hey, you probably can spend more than seven minutes in a home before deciding if you want to make an offer.

Well-Kept Yards Most Important Factor in Determining Neighborhood Safety

2010-11-22T10:40:00.000-08:00

A new survey conducted by Relocation.com finds that 75 percent of Americans believe the most important factor in determining a neighborhood's safety is the up-keep of surrounding homes, especially the conditions of the front lawns, which trumps even Googling neighborhood statistics to get a feel for a community.

The latest Relocation.com survey finds that 74 percent of respondents indicated they would select a neighborhood based on "word-of-mouth" or its local reputation over any other reason, while 67 percent of the respondents say they pay attention to local crime reports and statistics as reported in the local media. Less compelling, according to the survey, are "a gated community with security patrols" and "proximity to a police or fire station" when determining the safety of a neighborhood.

"It's interesting to see how home buyers determine neighborhood safety based on the neighborhood's appearance and not as much based on police statistics or crime reports," says Relocation.com Chairman and Founder Sharon Asher. "Our findings suggest that some home sellers who are struggling to generate interest may want to go the extra mile and help their neighbors with landscaping needs in order to create buyer interest."

The Relocation.com survey was conducted in mid-October, 2010, in a continuing effort to provide information on lifestyle factors that drive moving and relocation decisions in the U.S.

Danny Force with Keller Williams Real Estate

2010-11-21T09:42:00.000-08:00

Danny Force with Keller Williams Real Estate

Mortgage Rates Back on the Rise

2010-11-20T06:01:00.000-08:00

Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac.

Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.

Source: Chicago Sun-Times (11/19/10)

Top Tips to Winter-Proof Your Home

2010-11-19T06:20:00.000-08:00

As winter sets in, there's nothing better than hibernating on the sofa with a good book or classic film. But having this spoiled by a home emergency can add a real chill to your winter warmth, especially if it's preventable.

We're all familiar with the issues winter forces upon us: the boiler breaking, pipes bursting or a break-in, which can make the harsh effects of winter far more severe.

Planning ahead now can help protect you against these potential problems. Here are some simple tips from John Lewis Insurance to prevent home emergencies from happening. Many of them are relatively quick and easy to do.

Quick fixes:
* Change the battery in your smoke detector or install them if you don't have any - it's a simple task that can save your life. And make sure you test them regularly.

* Inspect your roof for missing or cracked tiles. If repairs are needed, get them done as soon as you can.

* Vacuum the coils on the back of the fridge. This will help your fridge work more efficiently and will help you save money on your power bills.

* Turn your mattress regularly. We all spend more time in bed over winter - turning your mattress regularly will extend its life and ensure a more comfortable night's sleep.

* Get your boiler serviced. If you haven't had your boiler serviced this year, now is the ideal time to ensure it's in good working order.

More time needed:
* Oil your power tools and if you have a gas-powered lawn mower, drain the gas from it. They will survive the winter better and be in top shape for spring.

* Check all taps for leaks and locate the main pipe to the water mains. Pipes can burst if they freeze so if you leave home for more than a few days, ideally you should turn off the water and drain the pipes.

* Bleed your radiators by opening the valve until water appears - they will work more efficiently.

* The cold doesn't deter burglars so be sure to inspect your locks and any burglar alarms - and consider using lighting timers for that lived in appearance.

Worth the effort:
* It may take a day or two to sort out but cleaning your gutters properly will guarantee they won't get blocked or overflow.

* Trimming back trees is always recommended in the autumn.

* Clean out the garage before anything is stored that can get spoiled by the cold.

Finally, preparing an emergency kit is a great way to make those small and big emergencies as easy to handle as possible. This is what you should have at hand's reach:

* A small tool bag containing a torch, a roll of insulation tape, spare fuses, spare batteries and a screwdriver

* A radiator key

* A fire extinguisher if you have one, checked or recently replaced

* Important telephone numbers like the police, a trusted plumber, electrician, etc.

Mortgage Activity Logs Biggest Drop of the Year

2010-11-18T07:07:00.000-08:00

Home loan demand fell 14 percent last week, as higher interest rates sent refinancing down 17 percent. This was the biggest drop of the year, according to the Mortgage Bankers Association weekly survey.

Applications for mortgages to purchase homes fell 5 percent last week compared to the previous week on an adjusted basis. On an unadjusted basis, purchase applications decreased 8.2 percent compared with the previous week and were 11.3 percent lower than they were the same week a year ago.

Purchase applications had been on the rise for the previous three weeks, but “rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed’s QE2 program. Mortgage applications … dropped in response,” said Michael Fratantoni, MBA’s vice president of research and economics.

Here are the average rates:

▪ 30-year fixed-rate mortgages increased to 4.46 percent from 4.28 percent.

▪ 15-year fixed-rate mortgages increased to 3.87 percent from 3.64 percent.

Source: Mortgage Bankers Association (11/17/2010)

NAR Praises FHA's Increased Stability

2010-11-17T08:19:00.000-08:00

The latest independent audit of the Federal Housing Administration shows the agency’s financial condition has improved from last year, when it announced its capital reserve fund had fallen below the 2 percent level mandated by Congress. The annual audit shows that the capital ratio for the single-family portfolio rose from 0.42 percent to 0.79 percent over the past year.

The audit, which calculates the financial condition of the agency’s insurance fund, also showed the mortgage insurance fund grew more than $1 billion in 2010 and reserves are expected to remain above $9.9 billion even if home prices were to fall further. The audit indicates that FHA will most likely not require a bailout now or in the future.

“As the leading advocate for home ownership, the NATIONAL ASSOCIATION OF REALTORS® strongly supports FHA’s mortgage insurance programs,” NAR President Ron Phipps said. “FHA announced major changes earlier this year and took critical steps to strengthen and ensure its long-term financial soundness, and those efforts have paid off.”

FHA’s audit reflected a change in home values, and was not tied to excessive increases in defaults or unsound underwriting practices. In fact, the credit quality of FHA borrowers has increased significantly in the last several years; the average credit score for FHA customers has grown to 693, and less than 8 percent of the agency’s purchase borrowers this year had FICO scores below 620. The capital reserves are not FHA’s only reserve fund; FHA also has a cash reserve account separate from the capital reserve – and actual total reserves have grown to $33 billion.

“The future health of FHA’s reserve funds depends heavily on the direction of home values in the coming years. Home values have shown patterns of stabilization over the past 18 months, and in a recent independent survey, most economists expect modest home price gains over the next 3 years, so FHA’s reserves should steadily improve,” Phipps said.

FHA has played a key role in providing mortgage liquidity to qualified home buyers in recent years and has greatly increased its market share; according to the agency, FHA guaranteed nearly 40 percent of home purchases in the past year.

NAR is working closely with FHA to reassess and amend their lending policies so even more qualified home buyers can become home owners.

Source: NAR

3 Reasons to Sell a Home Soon

2010-11-16T07:39:00.000-08:00

What do you tell a client who asks whether to sell a house now or wait? Steve McLinden, real estate adviser with Bankrate.com, offers these three good reasons not to wait, even though the holidays are approaching:

1. The market is improving. Most markets have either turned or are close to turning.

2. All real estate is local. Homes in great locations are always in demand.

3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.

Source: Bankrate.com, Steve McLinden

Commercial real estate outlook improving

2010-11-15T08:28:00.001-08:00

By STEVE BROWN / The Dallas Morning News

North Texas commercial real estate experts expect further recovery next year and say they hope the market will be mostly righted by 2012.

The same can be said of the economy.

“We made it through 2009 and are still here,” D’Ann Petersen, business economist with the Federal Reserve Bank of Dallas, said Friday. “We are starting to see some positive signs.”

Petersen predicted “moderate economic growth next year” for the Dallas-Fort Worth area at a breakfast meeting sponsored by The Dallas Morning News.

The commercial property business will follow the economy’s lead. “It will lag any rebound,” Petersen said.

Moody Younger, who manages Grubb & Ellis Co.’s Dallas office, said he’s already seen a great change in business.

“In 2009, you could not find a deal,” he said. “Our revenues are twice what they were last year. In 2011, we will see a lot more.”

Office tenants are more willing to step up and sign a lease, he said.

“Office is leading us out of it this time,” said Younger, who predicts that D-FW office occupancies will be back in shape by 2012. “I think we will take off pretty fast.

“If you are a developer, by the end of 2011 you need to think about building.”

Petersen said jobs in the professional and business service sector have been among the fastest-growing, which will help the local office market and its 23 percent vacancy.

“We are starting to see some export growth, and that will help the industrial building sector,” she said.

The apartment market is considered the country’s strongest real estate industry. And Addison-based Behringer Harvard has been one of the top nationwide apartment investors over the last couple of years.

“When we started buying multifamily in 2008, we would be the only bidder,” Behringer Harvard president Robert Aisner said. “We are now seeing a huge amount of money that believes multifamily will lead the rebound.”

Aisner said his firm is looking at additional property buys.

“Hotels are getting an awful lot of interest,” he said. “If you can buy hotels now, you assume you are at the bottom.”

Total U.S. commercial property investment last year was about $50 billion, Aisner said. That’s down from $500 billion in 2007.

“It’s coming back but coming back slowly this year,” he said.

Herbert Weitzman, chairman and founder of Dallas-based Weitzman Group, said it will be “three years on the outside” before the D-FW shopping center market recovers from the recession.

North Texas has about 190 empty big box stores with more than 3 million square feet of space, he said. But the overall vacancy rate is still significantly less than it was in the late 1980s downturn.

“We think we are stabilized, and retail sales are getting better,” Weitzman said. “If you are creative and stay in business long enough, there will be some great opportunities.”

With retail construction at a virtual standstill, merchants are slowly filling up empty space – even sites that might have once been passed over. “We are filling up centers today that we couldn’t fill up in better times,” he said.

Most of the retailers that have made it through the down economy will survive, Weitzman said.

“We have bottomed out – that’s the good news.”

Realtors' report says Dallas-Fort Worth home prices rose slightly in third quarter

2010-11-14T07:35:00.000-08:00

Dallas-Fort Worth home prices were up by a small margin in the third quarter, and most of the increase was probably due to more sales of higher-priced homes.

The National Association of Realtors reported Thursday that median home sales prices in the D-FW area were up 1.6 percent from third quarter 2009.

The small gain here came as nationwide prices were basically flat, the Realtors said.

"Even with swings in home sales, prices this year have been changing very little from year-ago readings," Realtors' chief economist Lawrence Yun said in the report. The Realtors are forecasting flat home prices in the year ahead.

The just-released national data lines up with local figures that show median home prices in North Texas are up 1 percent year-to-date.

Of the 155 metropolitan areas that the Realtors track each quarter, 76 markets showed price declines.

Home sales in North Texas have slowed dramatically since federal housing tax credits expired at the end of April. But the bulk of the decline has been for lower- and moderate-priced homes. High-end home sales are still rising in many neighborhoods.

"Now that the tax credits have expired, we have seen a real drop-off in the activity at the lower end of the price spectrum," said Ted Wilson, a housing analyst with Dallas-based Residential Strategies Inc. "As a result, the median price has climbed."

David Brown of MetroStudy Inc. agreed: "The average and median prices have increased over the last year because of the surge in sales of homes priced over $500,000."

Consumers are Paying Less on Monthly Payments Than Three Years Ago

2010-11-12T13:42:00.000-08:00

Experian, a leading global information services company, released its insights on average monthly payments* of the top 25 metropolitan areas. The study found that nationally, consumers are paying $903 per month on their bills, which could include a combination of credit cards, auto loans and leases, and mortgages—a decrease of two percent in the last three years.

The study also reveals that Washington D.C., Seattle and Baltimore top the list with the highest average monthly payments with Washington D.C. coming in at 42 percent higher than the national average. Cities with the lowest payments include Cleveland, Tampa and Pittsburgh .

"The trend we're seeing is that consumers have lower payments, indicating both proactive deleveraging by consumers and tighter limits from lenders and certainly consumers are making fewer major purchases than they were a few years ago," said Michele Raneri, senior director of analytics, Experian. "There are many ways to manage and develop a positive credit score and good payment habits. Paying bills on time is generally the single most important contributor."

Below are some tips for your clients to take into consideration when making a major purchase:

* Get your credit report. Before approving your request for a home loan, mortgage lenders review your credit report. If you review your credit report in advance, you'll see yourself from a lender's perspective.
* Be prepared. When lenders review your credit report, they evaluate how much you already owe, how much unused credit you have available, how prompt you are in paying your debts and whether you've recently applied for new credit.
* Count your savings. To buy a house, you generally need a down payment in the range of 5 percent to 20 percent of your new home's purchase price, depending on your credit risk. You also need money for closing costs and be sure to set aside extra funds for emergencies. If you spend everything on your down payment, you're statistically more likely to lose your new home to foreclosure sometime in the future.
* Make your payments. How much you borrow, how much you owe and when you pay become a part of your credit history. When you apply for new credit purchases, other lenders will review this history. Late payments can stay on your credit report for up to seven years, can keep you from buying another house or can make it more expensive to buy a car. A good credit history proves that you manage your finances well. It lets you enjoy using credit at your convenience and at a lower cost.

Mortgage Applications Rise

2010-11-11T08:28:00.000-08:00

Applications to purchase homes rose 5.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchases increased 3.1 compared over the previous week. This was the third consecutive week that purchase applications rose. They are at the highest level since May.

“The increases in purchase applications we have seen over the past couple of weeks align with the better than expected news from October’s employment report and other data indicating some improvement in the economy’s growth prospects,” says Michael Fratantoni, MBA’s vice president of research and economics.

Mortgage rates held steady:

· 30-year fixed-rate mortgages remained unchanged at 4.28 percent.
· 15-year fixed-rate remained unchanged at 3.64 percent.

Source: Mortgage Bankers Association

Real Estate Investing – Is It Possible To Still Make Money?

2010-11-09T09:58:00.000-08:00

By: Tina Feston, Atlanta Realtor

Some people may wonder if it is even possible anymore to make money from real estate. The answer is an emphatic “Yes!” Like any other investment, the goal is to buy low and sell high, and by finding foreclosed properties that banks are anxious to unload, you can certainly do the “buy low” part.

The skill you need is to know how little you can pay, and know ways you can purchase distressed real estate while risking little or none of your own money. When people default on their mortgages, the process of foreclosure isn’t instant, or even quick. It is a long, protracted affair during which many legal steps must be followed. Look at it from the bank’s point of view: a borrower has defaulted on his or her loan, has stopped making payments, and pretty soon the bank is going to be stuck with a piece of property that they’re probably going to have a hard time selling. It is far from ideal for the lenders.

When lenders are buried in repossessed real estate and cars, it is a losing situation for them. Every day that a foreclosed house sits empty is a day that the grass grows, the mice get in, and the property values of surrounding real estate drop a little due to blight. Banks are faced with owning an undesirable property whose desirability will most likely continue to drop.

That’s why savvy real estate investors can step in and purchase property from lenders. Even if you only offer a fraction of the asking price, they may consider it, because they have a lot to lose by hanging onto the asset and not much to gain unless real estate in that particular area experiences some unexpected boost, such as a retail or industrial operation locating nearby.

In a slow housing market, obviously people are reluctant to buy real estate. But people still need a place to live, and real estate is the one of the few assets that we have a finite amount of. While some neighborhoods may not like having a rental property down the street, they’d much rather have a rental property than an abandoned, boarded up house that looks worse by the day.

If you are able to buy a foreclosed house for a great price at a decent interest rate, once you make any necessary repairs, you can rent it to one of those people who are averse to buying, and they will most likely cover your monthly mortgage payment and then some with their rent. You’ll be rescuing an undesirable property, making the neighbors happy, you’ll be providing someone a home, making them happy, and you’ll be taking the albatross of undesirable property off the neck of the mortgage lender, which will make them happy.

Successful investing in real estate doesn’t just happen when the market is going up rapidly. In fact, a stagnant or contracting real estate sector is a great time to get in on the ground floor of this type of investment. Business cycles come and go, there is only a finite amount of real estate on the planet, and the world’s population continues to grow. The question isn’t so much “if” real estate investments will pay off as “when” real estate investments will pay off. Successful investment in real estate, like any other worthwhile endeavor, will require brains and hard work, but done right, an investment in real estate can be a sound, long term asset that continues to pay off.

Home Sales Could Enter 'Virtuous Cycle'

2010-11-07T07:02:00.000-08:00

Consumer confidence and business spending are key to whether the U.S. housing market will move into a virtuous or a vicious cycle in 2011, NAR Chief Economist Lawrence Yun told a packed audience at the Residential Economic Outlook Forum Friday in New Orleans.

After the downturn, the housing market has clawed its way back to a point of near stability, Yun said, with the pace of new foreclosures easing, sales moving toward historically normal levels and prices on a national basis gaining modestly.

At the same time, affordability remains strong. He said all of the price excesses from the housing bubble have been squeezed out. In San Diego, for example, buyers today would pay $1,564 a month in mortgage payments for a house that at the height of the boom would have cost them $2,833 a month.

The broader economy is also showing positive signs, with businesses enjoying strong profits, sitting on huge cash reserves, and even adding jobs. Yun predicts this positive trend to continue into 2011, with existing home sales reaching 5.5 million units, prices rising a modest 1 percent, and the U.S. gross domestic product increasing to about 2.5 percent.

“We are entering a virtuous cycle,” he said. But for the positive trend to continue, he added, businesses will have to start spending some of their cash to fuel job growth at a far greater pace than they’re doing now. Currently, businesses are adding jobs at a pace of about 100,000 a month. That needs to grow to about 400,000 a month for unemployment
to start shrinking.

The scenario will be far more negative if businesses continue to sit on their cash. In that case, sales will fall, inventories will rise, the high rate of foreclosures will resume, and the cost to the federal government of bailing out Fannie Mae and Freddie Mac will surge.

Federal Reserve Governor Thomas Koenig, who shared the data with Yun, said the Fed’s continued effort to spur the economy, most recently through a $600 billion bond buying program, is understandable given concerns over the slow pace of growth. But the continued subsidization of the market could unleash inflationary forces.

Yun said he sees possible evidence of inflation building, but it’s not visible now because the housing-cost portion of inflation measurements is holding down prices.

30-Year Mortgage Rates Inch Up

2010-11-06T16:07:00.000-07:00

Freddie Mac confirms that average interest for 30-year fixed mortgages rose for the third consecutive week, bumping up to 4.24 percent from 4.23 percent a week ago.

The average 15-year rate for the week ended Nov. 4 was 3.63 percent, a drop from 3.66 percent.

Scott Brown, chief economist at Raymond James & Associates Inc., says this week's Federal Reserve actions "aren't going to change the economy right away, but they should help keep mortgage rates low for quite some time."

Source: St. Louis Post-Dispatch (11/05/10)

Preparing Your Home for the Cooler Months

2010-11-05T07:59:00.000-07:00

This year has certainly flown by, and now, with the fall in full swing, it’s a great time to start prepping your home before winter strikes. From water leaks to the chimney, it’s better to be ready for the cold season…before it hits.

Here, State Farm offers up some fall maintenance tips for your home:

Check all window and door locks for proper operation
* Windows that can be opened by breaking the glass and unlocking them, are less effective deterrents to criminals. Check with the hardware store for window lock alternatives.
* All exterior doors should have deadbolt locks.

Make sure there are working nightlights at the top and bottom of all stairs
Other safety ideas for stairs:
* Tile and painted wood or concrete stairs can be slippery when wet or when a person's shoes are wet. Resurface the treads with slip-resistant strips near the stair nosing.
* All stairs of at least three risers should have a handrail.
* Do not store items on the stairs.

Have a heating professional check your heating system every year
Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.

Replace your furnace filter
Furnace filters need to be replaced frequently to allow your heating and cooling systems to operate properly.

Run all gas-powered lawn equipment until the fuel tank is empty
By doing this, you are removing flammable liquid storage from your garage. At the same time, make sure you aren't storing dirty, oily rags in a pile. They can ignite spontaneously.

Have a certified chimney sweep inspect and clean the flues and check your fireplace damper
Soot and creosote, which build up inside the chimney, can ignite when a fire is lit in the fireplace.

Remove bird nests from chimney flues and outdoor electrical fixtures
Bird nests on top of light fixtures are a fire hazard. Bird nests in chimney flues can prevent a proper venting of combustion gases and can catch fire from sparks. You should exercise great caution when working on your roof or consider hiring a qualified professional to take care of any work that needs to be done.

Make sure the caulking around doors and windows is adequate to reduce heat/cooling loss
Check glazing for loose or missing putty or glazing compound. This will also help reduce water damage to the windows and door frames.

Make sure that the caulking around your bathroom fixtures is adequate to prevent water from seeping into the sub-flooring

Check for cracked or missing caulk around the base of your toilet, bath tub, and bathroom cabinets. Properly sealing gaps between your bathroom fixtures and flooring material can prevent damage.

Mortgage Purchases Rise

2010-11-04T13:32:00.000-07:00

Applications to purchase homes rose 1.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchases increased 0.2 percent last week compared to the previous week, but were down 28 percent compared to the same week a year ago.

Overall, mortgage application volume declined 5 percent over the last week on a seasonally adjusted basis because refinances decreased 6.4 percent.

Interest rate changes were mixed.
Average 30-year fixed-rate mortgages increased to 4.28 percent from 4.25 percent, while the average rate for 15-year fixed-rate mortgages decreased to 3.64 percent from 3.67 percent.

Source: Mortgage Bankers Association (11/03/2010)

Housing Starts Rise in September

2010-11-03T08:24:00.000-07:00

Spending on construction rose 0.5 percent in September with home building and government projects leading the way, the U.S. Commerce Department reported Monday.

Spending on home building rose 1.8 percent, but the increase was offset by spending on commercial construction, which dropped 1.6 percent. Overall, non-residential construction was at the lowest level since January 2005.

Housing starts rose 0.3 percent in September, the Commerce Department said, to a seasonally adjusted annual rate of 610,000 units – still low, but improving.

Source: Bloomberg, Courtney Schlisserman (11/01/2010)

3 New Anti-Foreclosure Strategies

2010-11-02T07:25:00.000-07:00

Here are three programs that are considered promising replacements for the government’s Home Affordable Modification Program (HAMP), which has failed to stop foreclosures.

· Fannie Mae and Freddie Mac would be encouraged to refinance loans for some 30 million borrowers with high-interest rate mortgages. The new mortgages would be folded into a new round of mortgage-backed securities issued by the government-sponsored finance firms.

· The right-to-rent plan would offer delinquent borrowers an option of renting their foreclosed homes at a market rate for five years. At that point, owners turned renters would have another chance to buy their homes at market value. It’s a compromise. Borrowers lose their homes, but lenders have to accept lower payments.

· Mortgage cramdowns give a bankruptcy judge the right to consider all of a borrower’s debts and create a solution that would force all interested parties, including holders of mortgage debt, to compromise.

Sales volume of Texas homes down in third quarter, flat year-to-date

2010-11-01T08:45:00.000-07:00

According to the Texas Quarterly Housing Report released today, the volume of real estate sales in Texas decreased in the third quarter of 2010, but was essentially flat year-to-date, due to an early peak in the market driven by the expiration of federal homebuyer tax credits.

For the period of July through September 2010, sales of existing single-family homes decreased 20% to 48,625 compared to the same quarter of the prior year. Year-to-date, home sales are esentially flat at 158,699, down less than one percent compared to 2009. The median price home in Texas remained virtually unchanged in 2010-Q3 at $152,000, and the months of inventory of Texas homes edged upwards to 8 months.

Bill Jones, chairman of the Texas Association of REALTORS®, commented on the results, "If you view these results only within the third quarter, they appear discouraging. However, the expiration of homebuyer tax credits distorts the picture. When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value."

Chairman Jones continued, "This year, Texas is withstanding the economic storm that has ravaged other parts of the country, in large part because the leaders of our state made the protection of private-property rights a priority. As we approach the upcoming legislative session, it's important for lawmakers to continue to support public policies that keep Texas on the leading edge of the economic recovery."

The Texas Association of REALTORS® works in partnership with lawmakers to promote policies that protect property rights and homeowners throughout the state. Currently, Texas ranks 41st out of 50 states in homeownership. Electing lawmakers who advocate on behalf of Texas homeowners is crucial to opening the path of homeownership — and the wealth-building opportunities it creates — for more Texans.

Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, noted, "This is a difficult time to compare statistics because we're comparing two very different markets — one with substantial support from the federal government in the form of tax credits and one without that support. Thus, year-to-date sales volume is a more meaningful figure to evaluate the current condition and that is still on pace with 2009."

Gaines added, "Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall."

The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University.

Majority of Americans: Buying a Home Is a Good Decision

2010-10-30T09:06:00.000-07:00

Despite the continuing challenges facing the U.S., nearly eight out of 10 respondents believe buying a home is a good financial decision, according to NAR's eighth annual Housing Opportunity Pulse Survey.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program.

Some key results:

* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the future is either one of their highest priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.

13 Tips for a Safe Halloween

2010-10-29T07:38:00.000-07:00

Halloween is a wonderful time to dress up, let loose and, of course, eat lots of candy.

However, there are a number of things to be cautious about when it comes to costumes, candy and parties. Here are the “lucky 13” guidelines from FDA, Consumer Product Safety Commission and the Centers for Disease Control and Prevention:

1. Wear costumes made of fire-retardant materials; look for “flame resistant” on the label. If you make your costume, use flame-resistant fabrics such as polyester or nylon.
2. Wear bright, reflective costumes or add strips of reflective tape so you’ll be more visible; make sure the costumes aren’t so long that you’re in danger of tripping.
3. Wear makeup and hats rather than masks that can obscure your vision.
4. Test the makeup you plan to use by putting a small amount on your arm a couple of days in advance. If you get a rash, redness, swelling, or other signs of irritation where you applied it, that’s a sign you may be allergic to it.
5. Check FDA’s list of color additives to see if additives in your makeup are FDA approved. If they aren’t approved for their intended use, don’t use it.
6. Don’t wear decorative contact lenses unless you have seen an eye care professional and gotten a proper lens fitting and instructions for using the lenses.

Safe Treats
Eating sweet treats is also a big part of the fun on Halloween. If you’re trick-or-treating, health and safety experts say you should remember these tips:

7. Don’t eat candy until it has been inspected at home.
8. Trick-or-treaters should eat a snack before heading out, so they won’t be tempted to nibble on treats that haven’t been inspected.
9. Tell children not to accept—or eat—anything that isn’t commercially wrapped.
10. Parents of very young children should remove any choking hazards such as gum, peanuts, hard candies, or small toys.
11. Inspect commercially wrapped treats for signs of tampering, such as an unusual appearance or discoloration, tiny pinholes, or tears in wrappers. Throw away anything that looks suspicious.

For partygoers and party throwers, FDA recommends the following tips for two seasonal favorites:
12. Look for the warning label to avoid juice that hasn’t been pasteurized or otherwise processed, especially packaged juice products that may have been made on site. When in doubt, ask! Always ask if you are unsure if a juice product is pasteurized or not. Normally, the juice found in your grocer’s frozen food case, refrigerated section, or on the shelf in boxes, bottles, or cans is pasteurized.
13. Before bobbing for apples—a favorite Halloween game—reduce the amount of bacteria that might be on apples by thoroughly rinsing them under cool running water. As an added precaution, use a produce brush to remove surface dirt.

5 Traits of Today's Home Buyers

2010-10-28T07:10:00.000-07:00

A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:

· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.

Source: Inman News, Mary Umberger (10/27/2010)

Simple Tips to Take the Stress Out of the Home-Buying Process - Focus on the Positives

2010-10-27T07:07:00.000-07:00

For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.

Here are some tips to help you keep your cool as you begin the process of a buying a home.

-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.

-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.

-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.

-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.

-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.

-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.

-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.

-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.

-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.

-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.

Get Credit Score in Order Before Applying for Credit

2010-10-26T14:39:00.000-07:00

If your mailbox is starting to fill up again with credit card offers and you're tempted to apply, be realistic about your chances of qualifying.

Increased credit card solicitations are an indication that things have gotten much better for card issuers, with declines in defaults and delinquencies, said Bill Hardekopf, CEO of LowCards.com and author of "The Credit Card Guidebook."

"They are once again aggressively pursuing new customers, but this time around, they seem to really be focusing on those with good or excellent credit scores," he said.

Consumers may have to jump through more hoops than before to get a credit card today. But it's not impossible to get a card.

Before you apply for a credit card, get a copy of your credit report and your FICO credit score, the dominant score used by lenders, which uses a score range of 300 to 850.

Use your credit score as a guide to what kind of credit card you should apply for.

If your score is lower than you expected, check your credit report for errors and correct them before you apply for credit. If your score is too low, be prepared to pay.

"If your FICO score is 750 or above, you should apply for the cards specifically offered for excellent credit," Hardekopf said. "A score of 720 or above is considered good credit; 660 to 720 is acceptable."

If your score is below 650, you could find yourself in the subprime category, and you could have a tough time getting approved, he said.

"Anything below a 650 FICO score seems to be the dividing line between prime and subprime," agreed John Ulzheimer, president of consumer education at Credit.com.

The scary thing is that as of April, 35.2 percent of consumers had FICO scores below 650, according to the company that produces the influential number.

"Scores below 650 are there for a reason," Ulzheimer said. "It's negative information, such as late payments, foreclosures, bankruptcy, tax liens, hitting your credit report and excessive credit card debt."

According to Hardekopf, "consumers should not waste their time and apply for a card for which they are not qualified. If you apply for too many credit cards at once, this is a red flag and may actually cause your score to drop."

Some credit card issuers will give you some guidance as to what your credit level is.

For example, Capital One considers you to have excellent credit if you've had a loan or credit card for at least five years, have a credit limit of more than $10,000, have never been more than 60 days late on a credit card, medical bill or loan payment and have never declared bankruptcy.

You have average credit in Capital One's eyes if you have a credit card limit of less than $5,000 or you may have been late on more than one credit card, medical bill or loan payment in the past six months.

How you pay your credit card bill also should determine what kind of card you apply for.

If you pay off your card each month, you should look for a card with a good rewards program, Hardekopf said.

But if you carry a balance each month, you want a card with the lowest annual percentage rate and then work your tail off to pay off the card as quickly as possible.

"You really need to decide before you apply for a card what kind of credit card customer you are," Hardekopf said.

(c) 2010, The Dallas Morning News.

What You Should Know Before Buying a Home

2010-10-24T12:33:00.000-07:00

There are so many things to understand as you embark on purchasing a home, especially if it's your first purchase. Learn the basics as you get started and understand everything you need to know as it relates to financing.

Here are 10 tips about financing:

1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.

3. You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.

4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:

* Escrow fees charged by the company handling the transaction
* Title policy issuance fees charged by the title insurance company
* Mortgage insurance fees
* Fire and homeowners insurance
* County Recorder fees for recording your deed
* Loan origination fees

Consult your lender for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs

5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.

6. Should you select a mortgage with a fixed rate or an adjustable rate? The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.

7. Be aware of the two main types of loan categories.

* Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
* Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan

8. If you are a low or moderate income home buyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.

9. Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.

10. Many organizations offer home loan counseling to prospective home buyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time home buyer programs require homebuyers to attend this type of class to be eligible for selected programs.

Survey: Economy Driving People Out of the Housing Market

2010-10-23T06:31:00.000-07:00

Nearly two-thirds of Americans say the current economic situation is making them less likely to buy a house, according to a new national survey by FindLaw.com (http://www.findlaw.com), a popular legal information website.

Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.

In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.

"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."

Free Internet resources such as the FindLaw Real Estate center (http://realestate.findlaw.com/) can provide helpful information on buying, selling and owning a home, including obtaining a loan, borrowers' rights, finding the best mortgage, homeowners' rights, avoiding foreclosure and more. It also has useful information for renters, including negotiating a lease, tenants' rights, and fair housing and discrimination laws.

The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.

Fannie Mae Announces New Incentives for HomePath Properties

2010-10-22T07:44:00.000-07:00

Fannie Mae announced a seller assistance incentive on Fannie Mae-owned properties listed on the company’s REO website, www.HomePath.com, and expands the initiative to offer an incentive to real estate agents and brokers. Qualified homebuyers who will be owner-occupants can receive up to 3.5 percent of the final sales price that can be used toward closing cost assistance, including a home warranty, if desired and available. In addition, selling agents representing owner-occupants will receive a $1,500 bonus. Eligible offers must be submitted on or after September 23, 2010, and must close by December 31, 2010. The sale must close within 60 days of the offer being accepted.

“More than eighty-seven thousand families have purchased HomePath® properties in the first half of 2010—nearly double the number of Fannie Mae foreclosed properties sold in the first half of 2009,” said Terry Edwards, Executive Vice President of Fannie Mae’s Credit Portfolio Management. “We continue to look for ways to stabilize neighborhoods and offer incentives to qualified buyers who will occupy these properties over the long-term and help support their communities."

HomePath properties are owned by Fannie Mae and include a wide selection of homes, including single-family homes, condominiums, and town houses. HomePath properties may also be eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing.

Fewer Homes Pushed into Foreclosure

2010-10-21T07:14:00.000-07:00

Big banks pushed fewer U.S. households into foreclosure for the seventh consecutive month in August, a real estate firm reported, though repossessions of properties already ensnared in the process hit a record.

The continued convergence of the two trends — fewer notices of default filed on homes but more properties sold at courthouse steps — indicates that major lenders are meting out foreclosures in a systematic way so as not to flood the housing market with a wave of steeply discounted properties, RealtyTrac said.

RealtyTrac Chief Executive James J. Saccacio called the trends "a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."

A total of 94,469 properties received default notices in August, a 1 percent decrease from July and a 30 percent decrease from August 2009. On the other end of the process, lenders seized 95,364 properties in August, the highest monthly total in the history of RealtyTrac's report, an increase of 3 percent from July and a 25 percent jump from August 2009.

Lenders are working through a backlog of properties that developed last year after many foreclosures were frozen by moratoriums and slowed by trial mortgage modification attempts.

(c) 2010, Los Angeles Times.

100 Dollars Can Go a Long Way for a Great Looking Yard

2010-10-20T15:17:00.000-07:00

Got a hundred bucks and a free weekend? Then you've got what it takes to invest in some yard care improvements.

"Some of the best upgrades to your yard can be done with a few dollars and a few hours," says Trey Rogers, Ph.D., the Briggs & Stratton Yard Doctor. "When budgets are tight, get creative and do it yourself."

What can you do for $100 right now?

-- Mow the right way. Don't scalp your lawn. Instead, let it grow a little longer, which is healthy for the lawn. When you mow, cut only one-third the length of the grass blade. Cost: About $3.00 for a month of mowing.
-- Apply bark mulch. Few things dress up a yard more than mulch around flowerbeds and trees. Cost: About $3.00 per bag.
-- Fertilize naturally. When you mow, leave a light layer of grass clippings on the lawn as a natural fertilizer. Cost: $0.
-- Maintain your mower. Once a year, change the oil, replace the spark plug and change the filter. Tune-up kits are available and make it\ easy. Cost: $10-14 for a walk-behind mower.
-- Let nature water your lawn. If water is costly where you live, let nature handle irrigation. If too little rain falls, your lawn may go dormant, but unless you are in a drought situation, it will green up
again when the rain falls. Cost: $0.

With the rest of your $100 bill, splurge on some annual flowers to dress up your front doorway, patio or deck.

6 Reasons it Pays to Shop Around Before Choosing a Mortgage

2010-10-18T08:14:00.000-07:00

You wouldn’t buy a house without shopping around first, right? Then why would you commit to the loan you use to buy that house without making sure you’re getting the best deal possible? From the experts at LendingTree, here are six reasons why it’s essential to take a few minutes to browse before you borrow:

1. To get the best interest rate possible
Over the life of a $200,000, 30-year fixed rate loan, a one-tenth of a point difference in interest rate could save or cost you thousands of dollars.

2. To pay lower loan fees
Once your loan application is accepted, the lender will get back to you with a good-faith estimate (GFE), including an itemized list of all the costs associated with the loan. If there are any parts of the GFE that you don’t understand, don’t be afraid to ask the lender to explain each fee that is listed.

3. To avoid a prepayment penalty
In these transient times, it seems no one stays in their home long enough to pay down their mortgage the old fashioned way: in monthly increments over a period of decades. So you’ll want to be clear on whether the terms of your loan include a penalty if you pay off your mortgage early—either because you move or refinance.

4. To find a lender you feel comfortable with
You don’t want any surprises popping up at closing time. Get a lender who is responsive to your questions and is willing to give you the details in writing.

5. To find a lender that specializes in your situation
Recent volatility in the mortgage markets means that people with bad credit or little money for a down payment might have to look a little harder to find a lender.

6. To get the rate lock period you want
Once you’ve found the lender offering the best mortgage rate and terms, you’ll want to get a written commitment, known as a “lock” that puts in writing that the lender will make the loan to you at that the specified interest rate. The length of the lock can vary from 30-90 days, but many lenders will charge a fee for a rate commitment of longer than a month. Negotiate the lock period that is right for you, depending on when you plan to close on your new home and if interest rates are expected to creep higher during that time.

Vacant Homes Pose Insurance Risks

2010-10-17T15:27:00.000-07:00

As the U.S. housing market struggles to rebound, many homeowners are stuck with hard-to-sell properties longer than expected. Some frustrated home sellers who must relocate for a new job opportunity, want to downsize or simply want to buy a new place have left homes empty. Vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance, according to the National Association of Insurance Commissioners (NAIC).

The Pending Home Sales Index, released today by the National Association of Realtors, dropped 2.6 percent to 75.7 based on contracts signed in June from 77.7 in May, and is 18.6 percent below June 2009 - another sign of the stagnant housing market.

"In many cases, people who have been trying to sell their homes for awhile have moved forward with their plans regardless, leaving a vacant home on the market," said NAIC President and West Virginia Insurance Commissioner Jane L. Cline. "Having an unoccupied home can create several insurance implications that typically are not covered under a standard homeowners policy."

The Added Risks of Vacant Homes
Homeowners policies are meant to insure homes that are occupied, so they generally include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days.

In insurance terms, a vacant home is one the resident has moved out of and taken his/her belongings with him/her. An unoccupied home is one where the resident is not staying at the home, but the furniture and other belongings remain.

Because vacant and unoccupied homes pose a higher risk for damage than occupied homes, insurance companies insure these properties differently and usually at a higher price. These risks include:

-- Break-ins: When a home has been unoccupied for awhile, it can show signs that nobody is around - unkempt lawn, full mailbox, no lights on - that can tip off burglars to an easy target.

-- No emergency response: Without anyone home to call 911 or respond to emergencies, a manageable problem - such as a small electrical fire - can turn into a much larger, more costly disaster.

-- Property liability: There is no one present to prevent others from entering the property or to supervise activity, which could increase the likeliness of an accident on the premises or property damage when the owner is not there.

Keeping A Vacant Home Properly Insured
The definition of vacancy and unoccupancy can vary from policy to policy. Some insurers may not pay claims if a home is vacant for 60 days or more. Some policies might automatically shift to a different amount of coverage (e.g. liability insurance only) after a specific number of days unoccupied.

Many homeowners policies have a "vacancy clause" that can be triggered if the homeowner is gone for an extended period of time. If this happens, the homeowner could violate the terms of their contract and some or all of their coverage may not apply in the event of a loss.

"Before you decide to leave a home vacant or unoccupied for a long period of time, talk to your insurance agent or company to learn how they define vacancy and unoccupancy, and whether the company will pay claims if a house is unoccupied," said Cline. "Be honest about your situation, because while an extra policy might cost more, it could save you money down the road should there be an accident or damage to the home."

Many insurance companies offer an endorsement that will provide coverage for a dwelling that is unoccupied for an extended period of time. Vacancy policies can also be purchased for different term lengths to cover a few months to a year, depending on the need.

The cost of vacancy coverage depends on the company and state in which the property is located, but costs usually are higher than a typical homeowners policy due to the overall increase in risk.

School Performance Can Increase Home Values, Buyer Interest

2010-10-16T18:21:00.000-07:00

Because proximity to a quality school is such a high priority for some families as they search for their next home, buyers and sellers in cities with top ranked schools or school districts can often expect to see higher median list prices as compared to the statewide median list price, sometimes as much as 10 to 28 percent higher.

"Without a doubt the 'right' school district increases value by 12 to 14 percent in my area even in today's market," said Maria Picardi-Kenyon, a longtime Realtor located in New Jersey. "I've spoken with many clients who are convinced that a preferred school district provides as much as 20 percent or more value to a home."

To help families as they search for academic excellence and affordable housing during this year's back to school season, Move, Inc., a leader in online real estate, today releases median list prices in ten communities ranked with high education quality scores, along with tips on how to expedite this season's real estate search before the school bell rings.

In an April 2010 review of 17,377 cities and towns in 49 states, Ohio, Pennsylvania, Indiana and Kentucky led the review with the highest ranking school districts in terms of educational quality scores and median list prices under $200,000. The review took into consideration K-12 public school enrollment data, student test scores, and population data that determined average education quality scores, among other data.

Data from the same April 2010 review also indicated the highest ranking school districts in terms of educational quality scores with median list prices between $200,000 and $345,270 today can be found in Vermont, Wisconsin, Indiana, and Minnesota.

Factors Associated With Selecting Housing Near Quality Schools
While the National Education Association's study on student achievement reports the proximity of affordable housing in stable neighborhoods remains a key component to a student's success, buyers also often consider location to jobs, shopping, freeways, and property taxes among other things when searching areas with high ranked school districts.

"Clients focused on a particular school district are often inclined to favor neighborhoods that have great accessibility to community facilities like parks, pools, tennis courts, running/biking trails, as well as access to retail and restaurants," said Tom Thornton, an EcoBroker with Realty Austin of Austin, Texas. "In Austin, popular neighborhoods with good schools can have an average negotiation range of two to three percent from list price, while the resale advantage can be as much as a five or 10 percent premium compared to neighborhoods without popular amenities."

Is Bigger Better?
The ability to live, earn and learn often comes with a price in communities that serve larger student populations. According to The United States Department of Education, three states - California, Florida and Texas - account for 45 of the nation's largest public school districts with an average of 169 school choices per district.

Median list prices for single-family homes listed for sale on the Move Network in California, Florida and Texas in July 2010 were $335,000, $215,000, and $179,900 respectively, while the national media price was $212,900 during the same time period.

Average active list prices for single-family homes listed for sale on the Move Network in the nation's top three largest school districts in July 2010 were $816,545 in New York, $879,743 in Los Angeles, and $425,869 in Chicago.

Community Information, School Data and More Available online 24/7
Regardless of the time of year, consumers searching for a property on the Move Network can easily find local community information at the bottom of each listing detail page including school name, distance from the home of interest, type of school, grades taught, Great Schools Rating, parent rating; and the location of the home on a map that can be viewed in road, aerial or bird's eyes views.

Additional information on these listing detail pages includes: cost of living; climate; distinctive community characteristics such as the closest airport, colleges, closest major sports team, and general community information such as population statistics; household information including number, size and family make up of recorded households; general housing information such as pricing, dwelling age and annual residential turnover; available transportation types; income, net worth and employment by industry and occupation.

Appraisals Continue to Be Low and Sink Some Deals

2010-10-15T06:30:00.001-07:00

With foreclosures a large share of property sales in some areas, appraisers continue to factor in the sale price of foreclosed properties when setting values of regular properties. Appraisers are aware the practice isn't ideal, but in some markets they're left with little choice because of the large number of foreclosed properties.

Bill Geiger Jr., an appraiser in Cocoa Beach, Fla., told a local magazine that when he has to use a distressed property while doing an appraisal, he contacts the real estate practitioners involved in the sale and reviews computerized listings for the property to find out as much as he can about the condition of the home when it sold. He adjusts the appraisal value accordingly.

There are other factors at work in holding down valuations. Rob Johnson, vice president of lending at San Diego Funding, says lenders demand greater scrutiny of a property if the buyer has a credit score on the low end or a high debt level relative to income. That extra scrutiny can impact whether the lender decides whether to make a loan at the originally appraised value

A third factor is the fluctuation of the market, with some sellers reluctant to let go of their previous expectations.

Industry professionals had hoped that repeal of unpopular appraisal standards would help address concerns with low valuations, but repeal by itself doesn't change the conditions appraisers face. The repeal of the standards, called the home valuation code of conduct, was enacted into law as part of the big Wall Street reform bill passed a few months ago.

Source: UPI, Steve Cook (09/28/2010)

10 Low-Cost Tips to Improve Your Home's Appeal

2010-10-14T11:40:00.000-07:00

When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.

Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.

Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.

Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.

Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.

Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.

Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.

Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.

Five Smart Reasons to Buy a Home Now

2010-10-13T07:16:00.000-07:00

The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.

ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.

2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.

5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.

8 Tips to Getting Your Loan Modification Application Reviewed

2010-10-10T19:59:00.000-07:00

Many homeowners seeking a loan modification to lower their monthly mortgage payments and avoid foreclosure continue to find the application process a complex web, often causing them to give up before their application is ever reviewed by their mortgage company.

Certified housing counselors for CredAbility, a national nonprofit credit counseling and education agency, speak daily with hundreds of homeowners seeking a loan modification or other solutions to keep their homes. The organization has several tips for people that will help them increase the chances that their application is reviewed as quickly as possible.

"A homeowner needs to collect and send several documents that tell the mortgage company why you need a modification, and it needs to be done in a timely, organized manner," said Michelle Jones, senior vice president of counseling for CredAbility. "Once a homeowner has submitted these documents, they need to stay in regular contact with the company. With hundreds of thousands of applications under consideration, homeowners must take matters into their own hands to make sure their application gets to the right person at the company."

Here are CredAbility's recommendations for homeowners seeking a loan modification:

Speak With a Nonprofit Housing Counselor to Understand Investor Rules for Your Loan. Every homeowner's mortgage loan is different, so don't rely on information you may have heard from your neighbor or your sister-in-law, even if they received a loan modification. For example, if your 30-year, fixed interest rate loan is owned by one investor, and your neighbor's is owned by another investor, the rules governing a loan modification may be quite different. A certified counselor at a nonprofit credit counseling agency can help you find the investor who owns your mortgage and determine your options.

Submit All Documents That Prove Your Current Income. Income verification is critical, but homeowners sometimes don't provide their mortgage company with recent documents. If you lost a job in June, don't provide pay stubs from March. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income that is not easily verified. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan. The letter could also include income verifying that you have a roommate that pays rent.

Submit Current Bank Statements. Recent bank statements allow your mortgage company to verify your income and expenses. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.

Mail Your Documents to the Mortgage Company. Many people prefer to send all of their documents by fax or scan their documents and send them via email. However, postal mail is usually more reliable, especially if it's addressed to the person you spoke with at the mortgage company. Faxes often get lost.

Label Each Page With Your Name and Loan Number. One of the most common complaints among homeowners is that the mortgage company loses their documents. You can help your own cause by writing your name and loan number on each page of every document.

Fully Explain Any Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.

Include a Timeline in Your Hardship Letter. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. But the letter must have specific dates explaining when an income loss has occurred. If your spouse lost her job on July 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.

Call Your Mortgage Company Every Week. Many homeowners work extremely hard to submit all of their paperwork to the servicer - and then wait for weeks before picking up the telephone to call them about the status of their application. This is a mistake for several reasons: the person handling your application may quit; the application may be transferred to another person; the company may need more information. You get the picture.

10 Tips to Conserve Water

2010-10-09T12:21:00.000-07:00

Summer is on its way out and the rains may even slow. Still, it's more important that ever to conserve water. From checking the kitchen faucet to watching your laundry loads, there's plenty we can all do to save water.

Here are some tips from Pennsylvania American Water on how you can conserve water and reduce the environmental impact of water consumption both indoors and outside the home:

1. Water your lawn only when it needs it. An easy test to tell if your lawn needs water is to simply walk across the grass. If you leave footprints, it's time to water. (An added benefit of watering less often is that fewer, deep-soaking waterings encourage deep root growth and stronger turf.)

2. Water in the early morning. As much as 30 percent of water can be lost to evaporation by watering during midday.

3. Set your lawn mower one notch higher to make your lawn more drought-tolerant.

4. Use drip irrigation hoses to water plants, and water in the early morning or evening.

5. Use a broom instead of a hose to clean your sidewalk, driveway, or patio.

6. Forego the hose and wash your car with a bucket and sponge instead. According to EPA WaterSense, a hose left running can waste as much as six gallons per minute while a bucket and sponge uses only a few gallons to do the job.

7. Keep a bottle of cold tap water in the refrigerator. You'll avoid the cost and environmental impact of bottled water and you'll have cold water available in the summer without running the faucet.

8. Run dishwashers and clothes washers only when they are full. If you have a water-saver cycle, use it.

9. Adjust the water level of your clothes washer, so that it matches your load size.

10. Regularly check your toilet, faucets and pipes for leaks and have them fixed promptly. An easy test for toilet leaks from EPA WaterSense: Place a drop of food coloring in the tank. If the color tints the water in the bowl without flushing, there's a leak. Check your water meter before and after a two-hour period when no water is being used. If the meter changes at all, you probably have a leak.

A Little Bit of Organization Can Go a Long Way

2010-10-07T08:30:00.000-07:00

Sometimes all a home really needs is a littile bit of organization...in this case, not to sound cliche, but a little bit certainly does go a long way.

It's easy to get bogged down by clutter throughout our daily lives. And, if you're renovating, project remnants compound the problem. Here are some tips, courtesy of Lowe's, to help you stay clutter-free:

Daily Clean-up
If you stay on top of simple chores every day, the bigger organization projects won't appear as overwhelming. Keep the house tidy by doing the small stuff daily. Make your bed each morning. After meals, do the dishes. And keep dirty laundry off the floor and in the hamper.

Storage Under the Bed
A lot of people forget the amount of storage a bed (or any other raised furniture) provides. You can store a lot under your bed in storage containers and boxes. The same can apply for sofas and chairs that have ample clearance. Just make sure your storage is out of sight with skirts. Think outside of the closet. The underside of your bed is the perfect place to store comforters, bedspreads and pillowcases.

Give Your Shoes the Rack
Often, closet floors suffer from shoe infestations. A cobbler's clutter can be easily solved with a tiered shoe rack. A shoe rack organizes your footwear while keeping them readily available (a luxury not afforded if you're using stacked boxes). A rack also keeps shoes in better condition, as they are kept away from the dirt and dust that collect on the floor. As you begin organizing, remember to keep shoes grouped by type and color. Heels, flats and sneakers should have their own sections. If your collection exceeds a rack, hang additional pairs from the inside of your closet door.

Kitchen Zoning
Your kitchen will house a wide range of dinnerware, food, storage and cooking items. Create separate areas for each kitchen activity. Keep your baking utensils, appliances, pans and sheets grouped together. And designate a specific spot on the countertop or island for use. Do the same for your grilling, frying and juicing needs.

Food storage can also get messy. Make sure your plastic food containers are adequately stored by size and shape. And clean out your refrigerator regularly. Don't forget to keep an opened box of baking soda in the fridge's corner to help control odors.

Finally, set up a shelving system for your pantry, and group your foodstuffs accordingly. Remember, it's best to not mix your cereals with the kitty litter. Cans – separated by vegetable and fruits – go on one shelf, while grains go on another. Spices should get their own rack.

Manage Magazines and Mail
Keep your magazines stored in a specific location instead of sprawled throughout your house. Group your periodicals by title and date. Give your mail the same treatment. Group your bills separately from other important letters and announcements. And trash junk mail immediately. Remember to shred any mail that may contain personal information. Baskets and racks help control the printed pages, especially if you're an avid reader.

Tame the Toys
Keep toys stored in plastic bins or hampers that are low to the ground. You want to make sure toy storage is easily accessible for your child. As kids grow, they'll start cleaning on their own. You can even make tidying up another game to play (e.g. shoot hoops with stranded Legos). Like the rest of your belongings, try to specialize each container. Keep one for books and crafts, and another for larger toys like trains or stuffed animals.

In the Garage
Garages usually become a default space for sporting goods, garden supplies and tools. If poorly managed, a garage can quickly become an eyesore. Keep your garage organized with wall systems, cabinets, worktables and shelving units. There are also specialized containers for nails, screws, nuts and bolts to help minimize the mess. Keep sporting goods, like bicycles and skiing gear, on hooks hung from your garage's walls or ceiling. Gardening supplies, like fertilizer and pesticides, should be properly sealed and stored out of reach from children.

Like the organization projects inside, keep your garage's contents separated by their function: tools with tools, toys with toys, etc.

10 Value-Adding Home Improvement Projects

2010-10-06T07:20:00.000-07:00

If you are looking for ways to add value to your home, the following home improvements may be just what you’re looking for.

Tip 1: Remodel your kitchen
Kitchen updates are one of the best ways to increase the value of your home. Adding modern appliances and refacing your cabinets to give it a more modern look is well worth the investment.

Tip 2: Add a Garage
Homes with at least a two car garage are more attractive to potential home buyers. Having a home with a small garage is almost as bad as having no garage, so consider upgrading before putting your home on the market.

Tip 3: Remodel your bathroom
Bathrooms are very important to home buyers. Just as with the kitchen, home buyers look for modern conveniences. Adding a Jacuzzi bathtub, painting the walls and adding appropriate flooring will go a long way toward increasing your home’s value.

Tip 4: Install the right flooring material
Natural materials such as wood and ceramic are popular among home buyers today. Laminate flooring is a good option, as well, as it creates a natural look without the headaches associated with natural flooring materials.

Tip 5: Install granite counter tops
Granite counter tops are popular in both kitchens and bathrooms. These countertops are low maintenance and quite attractive and can add significant value to your remodel.

Tip 6: Increase curb appeal
Your home needs to grab a potential home buyer’s attention and look great as soon as he or she pulls in the driveway. Add flowers to the outside of your home and make sure it looks bright and cheery.

Tip 7: Add natural light
Home buyers like homes that are bright and cheery on the inside as well as the outside. Look for places to add windows or patio doors that will allow more natural light to come in.

Tip 8: Open up the space
Homes with an open floor plan are more valuable to home buyers than those that feel closed up. Knock out walls wherever possible and open your home up. A great place take out a wall is between your kitchen and your dining room.

Tip 9: Apply a fresh coat of paint
A fresh coat of paint makes a home look new again. When repainting walls, choose neutral colors that don’t stand out too much. Bold colors may be attractive to you, but they may be a turnoff to potential buyers.

Tip 10: Clean up clutter
A cluttered home appears small and dirty. Make certain all clutter is cleaned up on the inside and the outside of the home. Rearrange furniture or remove furniture in order to make the home feel less cramped.

The Right Decisions Can Save Money During a Move

2010-10-05T09:47:00.000-07:00

Moving a residence is often fraught with high emotions and involves a to-do list a mile long. So, it's tempting to give only passing attention to hiring a mover and the related incidental costs.

That could be a mistake — for your wallet and your peace of mind.

Moving can be quite expensive. A typical full-service interstate move costs about $4,300, while the same in-state move might cost about $2,500, according to the American Moving & Storage Association.

And while the moving industry has many fine companies, it is notorious for fraud and dirty tactics by so-called rogue movers.

Here are tips on making your move with lower costs and less hassle.

CHOOSE A TYPE OF MOVE: You have three basic choices: do-it-yourself, full service and a relatively new hybrid of the two. Going it alone is cheapest, costing the rental price of a truck, gasoline, packing materials and, perhaps, pizza and beer for friends you rope into helping.

With full-service moves, moving within a state is charged by the hour, while moving across state lines is charged by weight and mileage.

With a hybrid move, a mover will drop off a large container at your home for you to pack. It will then load the container onto a truck, drive the belongings to your new location and drop off the container for you to unload. Because you're doing the manual labor of packing and unpacking, it's far less costly than a full-service move.

HIRE A QUALITY MOVER: If you hire help, get at least three price quotes and do homework. Seek recommendations by talking with family and friends, even your Facebook circle. Investigate a company's reputation with the Better Business Bureau (bbb.org), Yelp.com and possibly the paid-membership site Angie's List (angieslist.com). Check a company's complaint history at the federal government site, ProtectYourMove.gov.

"People think a good reputation equals expensive, but that's not true," said Laura McHolm, co-founder of NorthStar Moving in Los Angeles. "You don't get a good reputation by overcharging people."

For interstate moves, a company's ProMover certification with the movers association is a good sign. The organization in January 2009 started screening movers based on seven criteria. It kicked out some 220 of 3,100 members over the past two years because they didn't measure up, said spokesman John Bisney. See "Find a ProMover" at Moving.org.

"The old rubric 'You get what you pay for' is true more often than not," Bisney said.

Look for two things: A full-service mover should visit your home in person, not give a quote over the phone or online, and should provide a written estimate, experts say.

DECLUTTER: No matter what type of move you're making, taking less stuff is cheaper and less hassle. Set up a staging area, perhaps in a garage, with various piles, such as throw out, recycle, donate and sell.

"If you really love those go-go boots from the 1960s but will never wear them again, take a picture of them and get rid of them," McHolm said. For many items, use the rule of thumb, "If you haven't used it in a year, you probably don't need it."

BE FLEXIBLE: Like airline fares, moving rates depend on when you book. The busiest time for movers, and thus the most expensive time for consumers, is summer weekends near the 15th and 30th of the month.

If you have time flexibility, ask what rates would be for different days or seasons. If you have extreme flexibility, ask about moving standby: waiting until the mover has extra space and needs to fill a truck.

SAVE ON BOXES: Buying new boxes from a moving company is the most expensive choice. Ask if you can buy used boxes from your moving company. NorthStar, for example, gives customers 25 percent off used boxes and then refunds 25 percent if they return boxes in usable condition.

Cheaper yet is finding free boxes, ideally from somebody who just moved. Ask your real estate agent to connect you with other clients who recently moved. Or look on Craigslist.org. Specialty boxes, such as wardrobe boxes, might be cheaper to purchase at a do-it-yourself moving store, such as U-Haul, than from your mover.

SAVE ON PACKING MATERIALS: If you're packing yourself, fill suitcases, laundry baskets and plastic containers with unbreakable items. Use pillows, scarves and towels to wrap fragile belongings. And you might as well empty your paper shredder into a box to add cushion.

MAIL BOOKS: If you have many books, pack them yourself and ship them at the postal media mail rate. It might be cheaper than paying a mover. A 70-pound box would cost less than $30. You can't send anything with advertisements, so magazines are out. Search USPS.com for "media mail."

CONSIDER CONSOLIDATION: For long-distance moves, ask about consolidating your stuff on a truck with other people's. Most homeowners can't fill a full-size moving van. You might have to be flexible on delivery dates and times, but consolidation can be cheaper. "Most times it's a huge price difference," McHolm said.

INSURE IT: Check your homeowner's or renter's insurance policy to determine whether it provides coverage for your belongings while in transit. If not, you'll probably want more than the basic free valuation coverage a full-service mover provides. The standard valuation is 60 cents per pound per item. That means breaking a 10-pound, $1,000 stereo system would net you $6. You'll want full replacement-value insurance, which reimburses you what it will cost to replace broken items. But don't necessarily buy that insurance from the moving company. Moving insurance is likely cheaper from a third party, such as MovingInsurance.com, McHolm said.

Be aware that you probably cannot get insurance on boxes you packed yourself. A mover must pack them.

BE PREPARED: Plot out where furniture and boxes will go. The less time movers spend rearranging, the less expensive it will be.

In urban areas, reserve a space or two in front of your new home for the moving truck by parking your own vehicle there ahead of time. If the movers have to park too far away to unload, you could incur a "long carry" surcharge, McHolm said.

STAKE YOUR CLAIM: If you're moving for a job, negotiate the best relocation package you can. Unreimbursed expenses might be tax-deductible. For details, see Publication 521 Moving Expenses at IRS.gov.

TIP: Tipping each mover $3 to $5 per hour is customary, said Stephen Coady, marketing manager for Gentle Giant Moving Co. in Somerville, Mass.

For in-depth information on choosing a mover, see the free, downloadable "Make a Smart Move" available at Moving.org.

MOVING RIPOFFS:

—Furniture nabbing. A mover essentially holds your belongings hostage, demanding a higher payment to release them.
—Lowballers. Beware of lowball price quote. They could end up costing you as the mover adds various surcharges.
—Instant quotes. Be wary of phone or Internet estimates. Get written, in-home estimates.
—Large down payment. Be suspicious of carriers seeking large deposits. They might take the money and run. Legitimate movers require no deposit or a small "good faith" down payment.

Kitchen Remodels on the Comeback Trail

2010-10-04T08:00:00.000-07:00

The explosion of remodeling shows on TV and makeover spreads in magazines has whetted America's appetite for glamorous rooms brimming with the latest furnishings, appliances and color schemes.

Kitchen remodels are among the most popular, according to a report in the just-published August issue of Consumer Reports and online at consumerreports.org. And the economic slowdown means there are outstanding deals on everything from cooktops to countertops. It also means kitchen designers and building contractors are eager for work and willing to negotiate.

But bargain prices and good looks aren't everything, said Celia Kupersmzid Lehrman, Consumer Reports' deputy home editor.

"When remodeling a kitchen, functionality is every bit as important as style. Fortunately there are many products that look good and work well," she said.

The design of your kitchen is every bit as important as what goes into it, said Jim Spence of Spence & Vaughn Fine Kitchen and Bath in Maitland, Fla.

The most functional design is based on the "work triangle" — the relationship between the prep area, the cooking area and the sink, he said. Ideally, the distance between them should never be less than four feet or more than nine feet. Of the three areas, the most-used is the sink.

When planning a remodel, determining your budget is one of the first steps. The National Kitchen & Bath Association calculates the average kitchen remodel costs between 10 percent and 20 percent of the home's value. But obviously, the extent of the makeover determines its cost. In its latest issue, Consumer Reports takes top-performing products and creates three design schemes: a do-it-yourself makeover for $5,000; a plan that costs $15,000 (the average spent on a kitchen remodel); and a full-scale renovation for $50,000.

Determining your priorities is another key step, said Phil Johnson, a partner at Spence & Vaughn and a certified kitchen designer.

"Do you love to cook? If so, now might be the time to consider professional-style appliances," he said. "Do you have a large family? Consider how best to accommodate them in your new space. Think about the things you love in your old kitchen — and the things you dislike."

In addition, Johnson recommends the following steps for a successful remodel:

—Do your homework. Watch TV remodeling programs, clip appealing pictures and articles from magazines, attend remodeling seminars, visit home shows and parades of homes. Consult with a kitchen designer who is a member of the NKBA, who has the training and experience to avoid many of the things that can go wrong with a remodeling project.

—Visit a showroom. Examine the options in cabinets, countertops, appliances, flooring, plumbing and lighting. Decide what you want — and can afford.

—Schedule a home visit. The designer/installer need to measure the kitchen and adjacent rooms, and make a note of existing walls, doors and windows, electrical supplies, ceiling height, attic access, type of wall construction, plumbing details, etc.

—Finalize the project. The design is refined, construction plans are completed, appliances and supplies are ordered — and the initial deposit is paid.

—Survive the dust, noise and workers. With proper supervision, the disruption can be kept to a minimum. Make sure materials are ordered and on the way before beginning the tear-out. Clear a space in the garage for workers' tools and supplies and items removed from the old kitchen. And communicate regularly with the designer/installer.

The August issue of Consumer Reports identifies these four rules for a successful kitchen remodel:

Don't rush. There are many kitchen products that combine value, performance and good looks. Take time to meet with professionals, browse the Internet and visit showrooms and home centers. Haste can be costly. Changing your mind after the project is started typically adds about $1,500 to the cost of a kitchen project.

Size matters. In addition to being expensive, oversized kitchens can be exhausting to work in and keep tidy. A more compact kitchen often functions better. The National Kitchen & Bath Association website, nkba.org, provides guidelines for optimal space between appliances, cabinets and islands.

Beware of budget busters. Leave a 10 percent to 15 percent cushion for surprises, such as unexpected structural repairs. Avoid settling for a cheap option, thinking someday you will replace it with something you really want. Chances are that will never happen.

Get it in writing. When using a professional for a remodel, the written contract should list each phase of the project; every product, including the model number; and copies of each contractor's license, and workers compensation and liability insurance to confirm they are current. Call references and, if possible, visit them.

Mortgages Can Help, Rather than Hinder, Finances

2010-10-03T10:17:00.000-07:00

While most financial-savvy consumers do their best to avoid debt, one debt that is unavoidable to many families is a mortgage. Because many of us feel more in control of our home and expenses without a mortgage, a common question is whether to pay it off as quickly as possible.

The answer depends on each person's financial situation. A mortgage can actually be a blessing to some.

For example, mortgage interest is tax-deductible. This deduction saves taxpayers about $103 billion a year, according to the U.S. Treasury. The benefit is less to owners of low- to moderate-valued homes who may not have much interest or enough to claim it by itemizing deductions. But for families with a higher net worth, it allows a tax savings and may encourage them to buy larger homes.

With tax brackets for the wealthy rising next year, this tax break becomes more valuable. When the break is included, a 6 percent mortgage could have a rate closer to 4 percent in reality. Calculate your mortgage's effective rate by subtracting your tax rate from 100 and multiplying that number by the interest rate. For example, a 28 percent tax bracket with a 6 percent mortgage would result in (.06 x 72) to equal the equivalent of a 4.32 percent mortgage rate after considering tax savings if itemized. That helps the interest look less daunting.

In addition, with the possibility of investing with a goal of a 5 or 6 percent return, instead of putting that money into a mortgage the homeowner could get a return higher than the effective rate, which could help grow net worth. On the other hand, if the effective rate is higher, it may make sense to pay down the mortgage.

Another situation that makes paying off a mortgage attractive is for someone at risk of bankruptcy. Many states offer protection from creditors seizing a home to pay debts. If a home is paid in full, it is more likely the owner could stay in it if he goes broke, providing he can pay for the upkeep.

Money taken out for a mortgage also could reduce net worth later in life. The potential for higher investment returns are gone; that money will not be able to grow if investments grow over the long term. Not to mention having too much invested in a house. That could be detrimental at retirement. While we can get a loan for a house, there are no loans to finance retirement.

10 Tips to Conserve Water

2010-10-01T10:34:00.001-07:00

Here are some tips from Pennsylvania American Water on how you can conserve water and reduce the environmental impact of water consumption both indoors and outside the home:

1. Water your lawn only when it needs it. An easy test to tell if your lawn needs water is to simply walk across the grass. If you leave footprints, it's time to water. (An added benefit of watering less often is that fewer, deep-soaking waterings encourage deep root growth and stronger turf.)

2. Water in the early morning. As much as 30 percent of water can be lost to evaporation by watering during midday.

3. Set your lawn mower one notch higher to make your lawn more drought-tolerant.

4. Use drip irrigation hoses to water plants, and water in the early morning or evening.

5. Use a broom instead of a hose to clean your sidewalk, driveway, or patio.

6. Forego the hose and wash your car with a bucket and sponge instead. According to EPA WaterSense, a hose left running can waste as much as six gallons per minute while a bucket and sponge uses only a few gallons to do the job.

7. Keep a bottle of cold tap water in the refrigerator. You'll avoid the cost and environmental impact of bottled water and you'll have cold water available in the summer without running the faucet.

8. Run dishwashers and clothes washers only when they are full. If you have a water-saver cycle, use it.

9. Adjust the water level of your clothes washer, so that it matches your load size.

10. Regularly check your toilet, faucets and pipes for leaks and have them fixed promptly. An easy test for toilet leaks from EPA WaterSense: Place a drop of food coloring in the tank. If the color tints the water in the bowl without flushing, there's a leak. Check your water meter before and after a two-hour period when no water is being used. If the meter changes at all, you probably have a leak.

Have You Thought About an Outdoor Kitchen?

2010-09-30T15:22:00.000-07:00

The outdoor kitchen is rapidly becoming the social hub of the home, much as the indoor kitchen is the favorite gathering place for family and friends. The trend is especially strong in areas where the climate favors outdoor living almost year-round.

"It's a hot item," said Scott Redmon, owner of Alfresco Living in Maitland, Fla. "And the outdoor kitchen is becoming a lot more than a grill and a sink in the corner of the porch. It's a whole entertainment system. People have a higher expectation for their exterior spaces since HGTV came around."

Outdoor kitchens are popular because they are fun to live with, said Russ Faulk, vice-president of product development at Kalamazoo Outdoor Gourmet in Kalamazoo, Mich. "They add to the quality of life for the homeowner. Preparing a meal outdoors is not a chore, it's an occasion, a reason to have friends over and enjoy the process."

In addition, an outdoor kitchen expands a home's living space and adds to its value, he said. "The return on your investment is comparable to an indoor kitchen redo."

Since the economic downturn, "People have been unable to sell their homes, so they are starting to upgrade with better landscaping and outdoor kitchens, spending more time at home," said Sue Fern, manager of the Florida chapter of the American Society of Landscape Architects.

The built-in grill was the start of the outdoor-kitchen trend, said Faulk. "Then came the sink, the refrigerator, a counter for food prep, cabinets for storage — pretty much what you'd have in an indoor kitchen."

As more equipment is added, outdoor "rooms" are becoming larger and more covered, he said. Seating areas are added, along with outdoor TV sets, fire pits and water features.

The grill — fired by gas, wood or charcoal — is still the heart of the outdoor kitchen. Especially popular are hybrid grills, which can be switched from gas to wood or charcoal, depending on what is being cooked, said Faulk. "There's nothing like grilling fish over an oak fire."

Pizza ovens are starting to threaten the grill's reign as king of the outdoor kitchen. Oven designs range from large, wood-fired brick and clay ovens that take several hours to heat up, to compact countertop models fired by gas that are ready for baking pizzas in 20 minutes.

Also gaining popularity in outdoor kitchens are keg-tappers, wine chillers, ice makers and warming cabinets.

When designing an outdoor kitchen, be sure to look for low-maintenance equipment, said Faulk, "or you defeat the purpose of carefree outdoor cooking."

Also, make sure any cabinetry is designed to keep the contents clean and dry in inclement weather; install good task and ambient lighting; and choose counter-top material that is stain- and grease-resistant and stays cool in direct sunlight.

"Get counter-top samples, leave them in the sun and see how hot they get," advised Faulk. "Heat-retention is not always related to color. Some light colors get hotter than some dark colors."

He also offers these cost-cutting tips. "Design the outdoor kitchen against the house to reduce the cost of getting utilities to the space. And buy the best grill you can afford."

When designing an outdoor kitchen, "Consider how the space will be used: as a personal refuge or a place to entertain and be social; as a place to cook and eat, or to drink and socialize," said Eduardo Xol, exterior designer on Extreme Makeover: Home Edition and celebrity designer for hayneedle.com.

And remember, he said, "Indoor-outdoor living helps balance the soul. It keeps you connected with nature and helps you become more aware of living green."

Tips to Help Secure Your Future Financial Health

2010-09-29T08:47:00.000-07:00

With so much uncertainty in the current economic climate, one thing’s for sure: protecting your financial health is a top priority. For some who may have lost their jobs—or may know someone who has—there’s a lot to consider.

From health insurance to your plans for retirement, read these tips from Family Wealth Management Group, LLC to help protect your assets and financial future.

-- Evaluate your financial health. Review your income, expenses, assets and liabilities. Don't wait until your savings is depleted to alter your spending habits. Even if you have an emergency fund, pinching pennies now will help ensure that money is there when you need it.

-- Review your health insurance options. If you have lost your job, some workers and their families (who might otherwise lose their health benefits) have the right to choose to continue group health benefits provided by their group health plan for limited periods of time under the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA).

-- Investigate unemployment benefits. Workers who are unemployed through no fault of their own and meet other state eligibility requirements, may be eligible to receive unemployment benefits under the Federal-State Unemployment Insurance Program.

-- Plan for retirement. Review your pension plan, 401 (k), IRAs, Social Security benefits and other savings plans to assess whether they meet your long-term retirement goals and will generate an income stream to meet your projected expenses.

-- Protect your assets. Review your life, disability and long-term care insurance coverage, especially if you are the primary breadwinner. Are they portable (i.e. can you continue the coverage at your present group rate), once you are no longer employed? Ask your financial advisor whether individual coverage is appropriate in lieu of the group coverage and/or to supplement the group coverage.

-- Analyze your spending habits. How much do you spend on trips to the market, afternoon lattes, video rentals or dry cleaning? Try to eliminate a portion of these expenses. Home-brewed coffee can shave four dollars a day from your food budget and save up to $120 a month.

-- Call your creditors before you fall behind. Don't let the default notices pile up before calling your lenders and credit card companies. These days, many companies are willing to defer or temporarily lower payments, while you look for employment.

-- Re-define your financial goals. Redefine where you see yourself in five, 10 or 15 years. You may not be able to retire when you expected to, or pay outright for a four-year college, but instead of saying, "I can't afford it" set new goals and ask, "How can I afford it?"

-- Meet with a licensed financial professional. Get professional advice about investment losses, financial products, insurance coverage and other important issues. Addressing your current situation and making choices based upon your new reality will help rebuild your self-confidence and your bottom line.

THE TOP 10 CREDIT DON’TS DURING THE LOAN PROCESS

2010-06-24T08:08:00.000-07:00

1. DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

2. DON’T APPLY FOR NEW CREDIT OF ANY KIND. Including those “You have been pre-approved” credit card invitations that you receive in the mail or online. Every time that you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from one to 20 points for one hard inquiry.

3. DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Unless you can negotiate a delete letter, paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow – at closing.

4. DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring your scores down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit at ALL times during the loan process. If you decide to pay down balances, do it across the board. Meaning, pay balances to bring your balance to limit ratio to the same level on each card (i.e. all to 30% of the limit, or all to 40% etc.)

5. DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above in 4. If you want to save money on credit card interest rates, wait until after closing.

6. DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, you will lose available credit, and it will appear to the FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you HAVE to close a credit card account, do it after closing.

7. DON’T PAY LATE. Stay current on existing accounts. Under the new FICO scoring model, one 30-day late can cost you anywhere from 50-100 points, and points lost for late pays take several months if not years to recover.

8. DON’T ALLOW ANY ACCOUNTS TO RUN PAST DUE --EVEN 1 DAY! Most cards offer a grace period, however, what they don’t tell you is that once the due date passes, that account will show a past due amount on your credit report. Past due balances can also drop scores by 50+ points.

9. DON’T DISPUTE ANYTHING ON YOUR CREDIT REPORT once the loan process has started. When you send a letter of dispute to the credit reporting agencies, a note is put onto your credit report, and when the underwriter notices items in dispute, in many instances, they will not process the loan until the note is removed and new credit scores are pulled. Why? Because in some instances, credit scoring software will not consider items in dispute in the credit score – giving false data to the lender.

10. DON’T LOSE CONTACT WITH YOUR MORTGAGE & REAL ESTATE PROFESSIONALS. If you have a question about whether or not you should take a specific action that you believe may affect your credit reports or scores during the loan process, your mortgage or real estate professional may be able to supply you with the resources you need to avoid making mistakes that could drop your credit scores or possibly, cause you to lose the loan.

Contact Me!

2010-06-21T20:56:00.000-07:00