real estate news by deasy/penner&road

Great New Listing in Pasadena!

2012-01-17T14:43:00.000-08:00

Listing Detail #22160004 - Residential:

'via Blog this'

642 Woodward Blvd, Pasadena CA - Michillinda Park Colonial For Sale

2012-01-06T16:28:00.000-08:00

Michillinda Park Colonial Listed at $878,000

New high-end realty offices opening despite real estate downturn

2011-12-29T11:11:00.000-08:00

Though I am not entirely in agreement with the article it is nice to see our company in there!
New high-end realty offices opening despite real estate downturn

Calculators - Go Solar California

2011-09-01T12:10:00.000-07:00

Solar Advantage Value Estimator (SAVE) is a tool designed to estimate the Present Value of a solar photovoltaic (PV) system including the estimated value in annual energy savings.

Calculators - Go Solar California:

'via Blog this'

314 Monterey Road #2 - South Pasadena - 2 bedroom condo for sale

2011-08-09T17:27:00.000-07:00

A great opportunity in South Pasadena. This stylish condo features newer flooring, large living room, dining area, eating counter, kitchen with bay window, large closets and sliding glass doors to the huge private patio. Bathroom includes 2 adjoining vanity rooms with sinks and separate entrances. This is a well thought out floorplan with high ceilings and ample storage. Amenities include: Pool, spa, laundry room, gated parking, 2 side by side parking spaces and ample guest parking. Association has done recent improvements making this an updated and stylish building - in South Pasadena!

Listed at $325,000

314montereyroad.com

642 Woodward Blvd, Pasadena, CA - For Sale for $899,000

2011-07-29T12:00:00.000-07:00

An amazing opportunity to purchase a home with a guest house on a large lot in Michillinda Park! The main residence features a classic two story home with 3 bedrooms including a study with a 3/4 bath, family room, living room, formal dinning room and private upstairs suite. This flexible floor-plan is begging to be remodeled to your taste and lifestyle! Additional features include steel casement windows, central A/C (in both the main house and guest house), 2 car plus 1 golf cart garage and discrete rear parking entrance. The large detached 1 bedroom guest house features a large kitchen, living room, 3/4 bath and additional storage room with a separate entrance. The spacious grounds include large mature trees, huge grassy front yard, ample parking and a large backyard for entertaining. Don't miss this rare opportunity!

Listed at $899,000

642woodward.com

S&P | Fourth-Quarter Shadow Inventory Update: Drop In Liquidations, Stable Cure Rates Indicate Increased Foreclosure Timelines | Americas

2011-02-10T11:41:00.000-08:00

S&P | Fourth-Quarter Shadow Inventory Update: Drop In Liquidations, Stable Cure Rates Indicate Increased Foreclosure Timelines | Americas

674 Manzanita Avenue, Sierra Madre, CA 91024 - For Sale for $799,000

2010-08-15T16:48:00.000-07:00

An amazing fixer opportunity in a great area of Sierra Madre! This unique Spanish style home on a huge lot needs the right buyer to bring it back to its former beauty. Great bones with many original fixtures and touches just begging to be showcased. The exterior is fantastic with walls made of a unique indented block giving the home a rare texture, large front windows, front patio and arched auto entry. The interior flows nicely with a large living room, dining room, den/breakfast room, and 3 roomy bedrooms. The floor plan would work nicely without adding square footage to expand the current kitchen and add another bathroom. The grounds are spacious with 17,000 sq ft lot of mature oak, fruit, fern and other beautiful plants and trees. This is a truly a diamond begging to be polished!

California won't tax forgiven home debt - Sacramento Business, Housing Market News | Sacramento Bee

2010-04-15T15:09:00.001-07:00

California won't tax forgiven home debt - Sacramento Business, Housing Market News | Sacramento Bee

Posted using ShareThis

Loft Style Penthouse in the South Lake District, Pasadena CA

2010-03-16T18:29:00.001-07:00

Loft Style Penthouse in the heart of the South Lake District, Pasadena, CA

Listed for $815,000

A penthouse unit with both south & north facing windows offering a light filled experience with lush trees, city lights & even a shot of the mountains to the north & a dramatic city view to the south. This sophisticated loft style penthouse is the only penthouse unit with a south facing window as well as having a great view from the floor to ceiling windows opening to the balcony. Features include: a dramatic 2 story high large living area, balcony, walls of windows, wood floors, 4 large closets, inside laundry, exposed concrete walls & ceiling, granite countertops, eating bar & slate backsplash in the kitchen. Enjoy the best amenities only the Prado has to offer such as: lounges, premier fitness center, gourmet kitchen, resort style pool, BBQ, coffee & tea bar, internet cafe, 20 seat movie theatre, concierge service, controlled access/security & side by side subterranean parking for you & your guests. Close to theatres, shops, & restaurants! This location is unbeatable!

Loft in Pasadena For Sale

2010-02-10T16:12:00.000-08:00

Newly Listed : Pasadena Loft Style Condo

To learn more click here

New rule affects homeowners in foreclosure avoidance program - latimes.com

2010-02-05T12:33:00.000-08:00

New rule affects homeowners in foreclosure avoidance program - latimes.com

Posted using ShareThis

New rule affects homeowners in foreclosure avoidance program

Those seeking to ease their mortgage terms must now document their finances before a trial modification will be granted, the Obama administration says. Loan servicers must adopt the policy by June 1.

By E. Scott Reckard

January 29, 2010

Taking borrowers at their word for how much they earn was a major cause of the mortgage meltdown. That practice may also be why an Obama administration program has struggled to convert temporary loan modifications into permanent ones.

The government said Thursday that it would overhaul the program by requiring homeowners to document their incomes before trial modifications are granted. Borrowers previously could have their interest rates lowered and the terms of their loans extended on a trial basis without providing pay stubs or other financial documents.

Banks and other mortgage service providers were supposed to collect those documents during a three-month trial period, with the modification becoming permanent if the borrower made three reduced monthly payments and submitted the required paperwork. But the program yielded few permanent modifications.

Last year, servicers extended nearly 1.2 million offers of trial modifications -- but just 66,465 troubled home loans were modified permanently.

Loan servicers said large numbers of borrowers failed to turn in the proper documents, and homeowners complained that the banks were unreasonable and lost paperwork.

The new procedure, to be adopted by servicers by June 1, would require three documents upfront: a formal application including a description of the hardship created by the mortgage; proof of income, which would mean at least two pay stubs or the most recent profit and loss statement for self-employed borrowers; and a form authorizing the Internal Revenue Service to release tax data to the servicer.

Under the plan, servicers will be required to respond within 10 days to an initial request for a modification. Once documents are provided, the servicer will have one month to tell borrowers whether they qualify for a trial modification.

If a borrower makes three payments at the modified rate, the modification will automatically be made permanent.

In an attempt to address a large backlog of incomplete modifications, the Treasury Department said it would allow servicers some discretion in making loans permanent if only minor paperwork was missing.

Phyllis Caldwell, chief of the department's Homeownership Preservation Office, said in a statement that the shift in policy "represents our commitment to more efficiently move qualified homeowners into permanent modifications."

Some lending groups and banks praised the changes, which they said would reduce the high volume of attempted modifications that end in disappointment for borrowers.

The changes should help borrowers better understand the process and their chance of getting a loan modified, said Kevin Waetke, a spokesman for Wells Fargo & Co., the second-largest loan servicer. Wells Fargo will adopt the new procedures March 1, he said.

John Taylor, president of the National Community Reinvestment Coalition, called the changes mere "tweaks" and said lenders should cut loan balances to avoid losing even more money on foreclosures. The government, Taylor said, should use its control of Fannie Mae and Freddie Mac to start writing down the principal on mortgages owned or insured by them "and demand that the private sector do the same."

The program, launched last spring, was designed to provide billions of dollars in subsidies to encourage lenders to forestall foreclosures by reducing mortgage payments to 31% of the borrowers' household income. The goal was to offer modifications to 3 million to 4 million Americans.

To obtain the subsidies, servicers must take a series of steps to reach an affordable payment: reduce the interest rate, extend the loan's term to 40 years and suspend payments on part of the amount owed. A permanent reduction of the loan balance is optional.

But the servicers also must calculate whether the lender or current owner of the loan will come out ahead by doing the modification or by foreclosing. If the loan owner comes out ahead with a modification, the servicer is required to make it. By documenting the borrowers' financial situation before offering a trial modification, servicers can make this calculation upfront and inform borrowers whether they qualify.

"Increasing the number of borrowers receiving permanent modifications . . . is critical to our efforts to preserve affordable and sustainable homeownership," said William Apgar, a Harvard University housing expert on leave to help the Department of Housing and Urban Development deal with the foreclosure crisis.

scott.reckard@latimes.com

Green Tip: Rechargeable batteries

2009-12-16T17:17:00.000-08:00

Want an alternative to using disposable batteries, which leak toxic wastes into landfills and ground water? Switch to USB rechargeable AA batteries that do not require adapters or cables, but instead can be inserted into your laptop’s USB port—or other USB port—and be recharged hundreds of times. Visit http://www.usbcell.com/ for more info.

Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) - C.A.R. Newsline

HOMEBUYER TAX CREDIT

2009-12-07T15:14:00.000-08:00

Q: Existing homeowner credit: How is the amount of the tax credit determined?
A: The tax credit is equal to 10 percent of the homes purchase price, up to a maximum of $6,500.
Purchases of homes priced above $800,000 are not eligible for the tax credit.
Source: National Association of Home Builders (NAHB)

Extension and expansion of federal tax credit

2009-11-05T17:55:00.000-08:00

The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.

C.A.R.’s Market Matters - 11/5/09

Loan limit extensions signed into law

2009-11-04T12:25:00.000-08:00

President Obama late Friday signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. The resolution was part of a broader piece of budgetary legislation that will prevent a government shutdown.

Both C.A.R. and NAR have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits. Last week’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.

The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Green Tip of the Week: Thanksgiving grease

2009-11-04T12:19:00.001-08:00

Recycling cooking grease, especially if you're a fan of those giant turkey fryers, is a better option than clogging sinks and sewers. One use for it is powering biodiesel vehicles. To find recycling centers, visit www.earth911.com and type in “cooking oils.”

From C.A.R Newsline - Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Where to find an Energy Auditor

2009-10-21T17:44:00.000-07:00

These three organizations train and credential Energy Auditors:

• California Home Energy Efficiency Rating Services (CHEERS®):www.cheers.org

• calCERTS Inc.: https://www.calcerts.com/

• California Building Performance Contractors Association (CBPCA ):http://www.cbpca.org/
According to Shipman, CBPCA is considered the “super raters,” in that they can perform an energy audit and give an estimate of the cost to fix or repair defects. Approximately 20 percent of a CBPCA auditor’s work is verified by a follow-up inspection. If an auditor’s recommended repairs are found unnecessary on three occasions by a follow-up inspector, the auditor is removed from the list CBPCA-endorsed auditors.

C.A.R. Green Blog - Friday, August-21-2009

Homebuyer Tax Credit

2009-04-22T16:36:00.000-07:00

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

2009-04-15T12:16:00.001-07:00

Green: Easy Does It

2008-02-19T17:30:00.000-08:00

Think of a house as a consumer — and a greedy one at that. About 21 percent of U.S. greenhouse gas emissions are generated from household energy use, according to the U.S. Energy Information Administration.

A house that consumes less energy reduces greenhouse gases because less fossil fuel is required to operate it. Energy and water savings mean financial savings, too.

Here are some simple greening options, along with more advanced approaches, that you can pass along to your clients and customers.

Improve Energy Efficiency

Easy: Replace incandescent bulbs with compact fluorescent bulbs. Compact fluorescent bulbs produce the same amount of light as incandescent bulbs yet require 75 percent less energy, produce 75 percent less heat, and last up to 10 times longer. Switching out just the five most frequently used lights in your house can save as much as 0.3 kilowatts of energy a day, which translates into a savings of at least $30 per bulb over the lifetime of the CFLs.

Advanced: Switch to solar power. This clean energy source generates no air pollution and no noise. Panels installed today will produce energy for about 20 years with minimal maintenance. The federal government offers a tax credit of 30 percent of the installation cost, to a maximum of $2,000, for certain solar power features, and many states and municipalities offer additional incentives.

Reduce Drafts

Easy: Plug leaks. Caulk and add weather-stripping to windows and doors to stop heat and air conditioning losses. Use expanding foam to fill gaps, especially between the living space and unheated areas such as the attic and garage. Leaky air ducts can decrease energy efficiency by as much as 20 percent.

Advanced: Add insulation. Homes more than 10 years old probably have insufficient insulation, and even newer houses typically can use some improvement. Properly insulated houses not only use less energy, they also have better moisture control, meaning roofs and walls last longer. In addition to insulating outside walls and attics, owners should install insulation in basement walls, floors above unheated garages or porches, cathedral ceilings, and crawl spaces.

Appliance Excesses

Easy: Unplug chargers, power adapters, and appliances when they’re not in use. According to the U.S. Department of Energy, about 75 percent of the electricity used to power electronics such as VCRs, televisions, stereos, computers, and kitchen appliances is consumed while the products are turned off.

Advanced: Switch out older appliances — including dish and clothes washers, refrigerators, lighting fixtures, televisions, room air conditioners, and even cordless phones — with energy-saving models. Appliances with the government-rated Energy Star label use 25 percent to 75 percent less energy than unrated appliances.

Avoid Super-Hot Water

Easy: Lower your water heater temperature. The average tank style water heater uses about 5 percent less energy for every 10 degrees Fahrenheit you reduce the temperature, according to the Department of Energy. A lower temperature also slows mineral buildup and corrosion, which helps your water heater perform more efficiently over a longer time.

Advanced: Install tankless water heaters. These so-called “on-demand” heaters warm water only when required, reducing energy losses associated with maintaining water temperatures in a traditional storage tank. Tankless heaters range from $200 for an under-sink faucet unit to $1,500 for a high-capacity unit, but according to the Energy Department, they use 45 percent to 60 percent less energy than traditional heaters and last twice as long.

Realtor Magazine Online - BY MAGGIE SIEGER

5 Simple Ways to Increase a Home's Value

2007-12-31T20:49:00.000-08:00

Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers.

Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety . Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance . Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy . Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green . Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort . Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Source: The Associated Press, James and Morris Carey (12/29/07)
— REALTOR® Magazine Online

Solid fundamentals despite noticeably slower real estate investment activity since August...

2007-12-31T20:14:00.000-08:00

Three trends in commercial real estate have dominated the last quarter. First, the credit crunch that is still impacting the residential sector began to influence the ability of many commercial property investors to get funding. Second, while investment activity has fallen off noticeably since August of this year, the fundamentals have remained relatively healthy. Third, both the Commercial Leading indicator (CLI) and the SIOR Index clearly point to a general slowing in the pace of commercial real estate activity.

While the pace of investment has fallen since August/September, first and second quarter activity was brisk. By the end of October, a record $325 billion worth of commercial real estate had traded hands nationwide, with over half involving office properties. As a comparison, $306.8 billion worth of commercial properties traded hands in all of 2006, and $267.6 billion was traded in 2005 – both yearly totals surpassing the $150 billion that traded hands in 2004.

What will happen in 2008?

The NAR forecast for four major commercial sectors includes analysis of quarterly data for various tracked metro areas. The sectors include the office, industrial, retail and multifamily markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.

NATIONAL ASSOCIATION OF REALTORS®

'Roulette Economy' of 2007 Is Almost Over

2007-11-19T16:16:00.000-08:00

"2007 has been a year of challenge; 2008 will be a year of opportunity for serious buyers and for REALTORS®,” NAR Chief Economist Lawrence Yun told a packed house at the NAR Conference Tuesday.

What Yun characterized as “the roulette economy” of 2007, fueled by subprime greed and then buyers’ fear, is almost over. With a favorable economy, pent-up home demand, and Wall Street “fessing up to its losses and cleaning up its underwriting,” 2008 will be a healthy market for serious buyers, he said.

Home prices nationally have declined by some 1.5 percent in 2007, which is "no big deal" after years of rapid appreciation, said Yun. In addition, he noted, there are still many markets such as Utah, North Carolina, and Tennessee that are appreciating and may even be undervalued.

Remind Clients That Markets Are Local

“REALTORS® have to educate their clients that all markets are local and that problems in a few areas aren’t meaningful," he said. "A national picture of the real estate market is just about as valuable as giving a national high temperature for the day." Yun also noted that while the credit crunch slowed deals in 2007, much of the pain is being felt in the subprime area, while other mortgage sectors are stabilizing. Subprime constitutes only about 10 percent of mortgage loans, but accounts for some 40 percent of current foreclosures. Going forward, proposed federal legislation that would increase FHA loan limits should help moderate-income buyers, said Yun. Yun expects GDP growth of 2.8 percent and job growth of 1.1 percent in 2008. Inflation should also remain under 3 percent, and interest rates should rise only slightly, he predicts. “For buyers who are into home ownership for the long term, housing still remains the best investment,” he concluded. Strong Fundamentals Bode Well for HousingOther national sales downturns in the last 30 years were spurred by broad economic problems, Yun said. This year, by contrast, economic fundamentals remain solid, with the U.S. gross domestic product expected to grow by a respectable 2 percent, supported by 2 million job gains in the last two years and continuing low interest rates. Yun said 2007 existing-home sales will exceed 5.5 million, close to the level in 2002, a record-setting year. At the same time, home prices remain near record highs despite drops in a few markets.

Get Ready for the New Generation

Following Yun’s presentation, former NAR economist John Tuccillo gave attendees a preview of what the next real estate market would look like. When recovery comes, said Tuccillo, most clients will be Gen X and Gen Y. These younger buyers don’t want relationship selling; instead they want the best bottom line deal you can find and the one-stop shopping to make the deal faster so they can get on with their lives. Other big buyers in the next decade will be retiring boomers, who will want homes in 24-hour cities and college towns. “Real estate practitioners have traditionally worked with first-time buyers. Think of these people as last-time buyers,” he quipped. It’s hard to predict when any local market will begin to improve, but there are three indicators, said Tuccillo. First would be a drop in new listings, indicating sellers are withdrawing from the market. Second, days on market will fall. And third, the gap between listing price and sales price will narrow.

— REALTOR® Magazine Online

ACTION TIP: CFL RECYCLING

2007-10-05T09:34:00.000-07:00

As you no doubt know, if every American home replaced just one light bulb with an ENERGY STAR qualified compact fluorescent bulb (CFL), we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.

But we need to recycle CFLs properly, as they contain a small amount of mercury.

IKEA, the world's largest home furnishings retailer, understands the value of CFL lights, as well as the need for recycling them. The company offers a simple solution: a 'Free Take Back' program offering recycle bins for CFLs in all IKEA stores. Just take your used CFLs to IKEA for proper disposal.
If you'd like more info on lamp disposal for your state, please go to lamprecycle.org to obtain more information.

For more information regarding mercury in CFLs, including proper disposal options and what to do if a bulb breaks, click here for the PDF report from Energystar.gov.

Source: Laurie David, Founder - StopGlobalWarming.org

Ways to Save Money (Without Really Trying)

2007-09-25T15:50:00.000-07:00

Never go grocery shopping without a list.
Avoid buying non-food items such as laundry detergent, shampoo, napkins, and tissues at the grocery store. Usually you can get these items much cheaper at warehouse or discount stores.
To save money on mileage as well as your time, pick one day a week to do all of your shopping and errands.
If you have the storage space, stock up on staples when they are on sale.
See movies in the afternoon when prices are often cheaper.
Go out to eat for lunch instead of dinner.
Visit the library and borrow books and videos for free.
Plan a picnic in a scenic areas for a low cost outing.
Look for coupons in the paper each week for restaurants and save them in a folder for future use.
Develop inexpensive hobbies such as bike riding or hiking that allow you to get exercise and fresh air.
For vacations, go camping instead of staying at hotels.
If possible, travel off season when the rates are lower.
Buy airlines tickets in advance and pay for them right away.
If you delay, the price will usually increase the closer it gets to your trip time.

10 Tips for Creating a Household Budget

1. MAKE GOALS - Goals can be as short-term as buying a new pair of shoes next week, or as long-term as going on vacation next spring.

2. INVOLVE YOUR ENTIRE HOUSEHOLD - If it's just you, great. But if you have a spouse and/or children, create a budget together, and explain to everyone that they may be asked to make sacrifices.

3. BUDGET IN FUN - A budget that leaves no money for an occasional dinner out or for a family outing at an amusement park is designed to fail. Your budget should help you, not put you in a bind.

4. MAKE THE EFFORT TO SAVE - Most people look at saving as putting away money for a rainy day. But a better way to look at it is putting away money for a nice vacation.

5. TAKE INVENTORY - If you don't know where your money goes, how do you expect to manage it?

6. DISTINGUISH BETWEEN WANTS AND NEEDS - Buy what you need first. The wants belong in the "what's left over" category.

7. EXPECT CHANGES - Look down the road, and get into the habit of thinking ahead.

8. GET RID OF HIGH-INTEREST DEBT- Focus on identifying high interest-rate debt and work on paying that debt off.

9. FIND A SYSTEM THAT WORKS FOR YOU - It could be the envelope system, a bank or a credit union. If it works for you, use it.

10. STICK TO IT - Creating and sticking to a budget that works won't be easy, but in the end it will help you make the most of your hardearned money.

Source: unknown

It’s Easier Than You Think To Be Green

2007-09-17T15:24:00.000-07:00

Home improvements don’t have to be epic to relieve utility costs.

Here are ideas to jump start your thinking green:

∙ Turn up the air conditioner thermostat.
∙ Change air filters often.
∙ Plant trees on the south and west sides of the home to provide shade and reduce interior temperatures.
∙ Landscape with drought-resistant orindigenous plants, which retain more water.
∙ Add motion sensor lights, to save electricity.
∙ Install a gas fireplace in an addition, such as a den or sunroom, which will extend heat to that room.
∙ Replace appliances with Energy Star–rated versions. Energy Star appliances exceed government energy-efficiency standards by 10 percent to 25 percent.
∙ Invest in new, more efficient heating and cooling systems.
∙ Paint your home’s exterior a light color. Darker colors retain more heat.
∙ Plug up air leaks, which are the equivalent of leaving a window open all year. Sealing leaks can save more than 10 percent on energy bills.
∙ Install double-glazed windows with low-emission glass, which allow maximum light while keeping out heat and cold.
∙ When replacing roofing, install light-colored shingles made of metal or tile to reflect heat.
∙ Add insulation in walls.
∙ If new-home buyers like a lot that faces the afternoon sun, encourage them to design the house with a shading porch and windows that are higher up on the wall than normal—near the overhangs—to minimize the sun’s heat. The windows will be shaded by the overhang and will allow more desirable reflected, rather than direct, light to penetrate.

Implement as many of these suggestions as possible.

The biggest savings come from a holistic approach to green.

Sources: Fred Evans, RE/MAX Gold Coast, REALTORS®, Ventura, Calif.; Doris Iklé, Home Energy Tune-up Corp., Bethesda, Md.; Peter L. Pfeiffer, Barley & Pfeiffer Architects, Austin, Texas.

Getting The House Ready To Sell

2007-09-05T11:52:00.000-07:00

Ceilings, Walls, and Painting :

Check all the ceilings for water stains, whether the leak is caused by plumbing or a faulty roof. Find the leak and repair it and make sure a proper job is done. Nothing irritates a buyer more than finding out - after the fact - about plumbing or roofing leaks. They will be talking about calling a lawyer faster than your car engine starts when you turn the ignition key.If a water stain is left after something you have already repaired, do the cosmetic work necessary to improve the desirability of your home. That means painting.You may have to paint anyway, especially if dirt has accumulated in spots or you have an outdated color scheme.

Painting makes a home look fresh and new on the inside and never fails to impress. Painting can be your best investment when selling your home. It is not a very expensive operation and often you can do it yourself. Do not choose colors based on your own preferences, but based on what would appeal to the widest possible number of buyers. You should almost always choose an off-white color because white helps your rooms appear bright and spacious.

Carpet and Flooring :

Unless your carpet appears old and worn, or it is definitely an outdated style or color, you probably should do nothing more than hire a good carpet cleaner. If you do choose to replace it, do so with something inexpensive in a fairly neutral color.Repair or replace broken floor tiles, but do not spend a lot of money on anything. Remember, you are not fixing up the place for yourself. You want to move. Your goal is simply to have few negative impressions upon those who may want to purchase your property.

Source: http://www.realestateabc.com/

Why Is Home Inspection Important?

2007-08-28T11:14:00.000-07:00

What is a home inspection?

A home inspection is a comprehensive and objective visual examination of the condition of a house, its overall physical structure, major systems and components, from the roof to the foundation. The standard home inspector's report will cover the heating system, central air conditioning system, interior plumbing and electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.

Before you buy a home, sell a home or do a renovation on a home, you should seriously consider hiring a certified home inspector. A home inspector can provide you with important information you need to know about the condition of the house. More information means an informed decision which means fewer surprises. You may save from unexpected costs.

When buying a home:

If you are buying a home, an inspection report will tell you what repair and maintenance need to be done on the property. With this information you will be able to negotiate the cost of fixing the problems in the purchase price.

When selling a home:

You may ask why do a home inspection if you are selling your home. It does cost you a couple hundred dollars but the benefit is that a prospective buyer will appreciate that you have nothing to hide about the condition of the house. This voluntary disclosure of facts by a professional licensed inspector will help the buyer make a quicker and informed decision whether or not to buy the property. The quicker you sell the house and receive the money the more you save on interest. The interest saving will more than cover your inspection fee.

source: Gerard Yeu - www.articledashboard.com

4 Tips for Cooling Down Your Energy Bills

2007-08-17T14:46:00.000-07:00

You know August is approaching when temperatures are heating up and air conditioners seem to be constantly humming — and staying cool is on everyone's mind.

But many home owners are equally concerned about how they can cut down on their energy consumption and reduce their monthly cooling bills.

The American Council for an Energy Efficient Economy (ACEEE) has a few suggestions:

1. Clean or replace air filters in air-conditioning units to keep cool air moving and to reduce electricity consumption.

2. Have an air conditioner tune-up performed by a qualified contractor.

3. Make sure your attic, which traps a lot of hot air, is adequately insulated.

4. Replace old equipment. A new high-efficiency unit not only pares down utility bills; it can help you qualify for a federal income tax credit. But before you buy something new, do your research. “Often people are so desperate to replace their equipment that they don’t take the time to research the investment, locking themselves into high cooling bills and less comfort,” says ACEEE researcher Katie Ackerly.

For more information log on to www.energytaxincentives.org/consumers.

By Camilla McLaughlin for REALTOR® Magazine Online

More Buildings Go Green

2007-08-09T10:50:00.000-07:00

Energy efficient homes might still be the exception, but green building is gaining momentum, according to the U. S. Green Building Council and the National Association of Home Builders.

In fact, green building has become a $12 billion industry, according to USGBC estimates. A decade ago, USGBC says, its value was “negligible.”

A survey of local home building associations shows that more than 97,000 homes have been built and LEED-certified since the mid-1990s using voluntary, builder-supported green building programs nationwide. That’s a 50 percent increase since 2004 when the last survey was conducted, according to NAHB.

And the increase doesn't show any signs of slowing. The U.S. Green Building Council recently welcomed its 10,000th member into the organization, which encompasses builders, universities, government agencies, and nonprofit organizations devoted to green construction.

Both NAHB and USGBC are in the process of developing its own set of standards and guidelines for sustainable residential green construction and to further promote the green industry.

—By Camilla McLaughlin for REALTOR® Magazine Online

Adding Curb Appeal: 6 Ways to Spruce Up the Yard

2007-07-30T12:07:00.000-07:00

When a house for sale looks good outside, buyers are more likely to want to come inside, says Barb Schwarz, founder of the International Association of Home Staging Professionals.

Here are some of Schwarz’s suggestions for tidying up the yard.

Make it neat and clutter-free. Get rid of children’s toys and limit the number of hanging flower baskets and yard art. "It's far better to have fewer bigger pots than the clutter of smaller hanging pots," Schwarz says. "They just weigh down the house."

Mow, weed and edge. “If the yard doesn't look well-manicured, then [potential buyers] feel the home hasn't been well maintained," Schwarz says. If the dog urinated on the yard and killed a portion of it, Schwarz recommends painting it.

Trim the greenery. Trim trees from the bottom so they create a canopy but don’t block the view. Trim foundation plantings from the top, so they don’t impede views of the windows.

Add color. If there’s no color in the yard, plant something like brightly blooming impatiens along the walkway.

In winter, place two small potted evergreen trees on either side of the door to brighten up the entrance. Also, make sure the walkways are clear of ice and snow.

Buy a new welcome doormat to dress up the front door.

Source: Newsday, Jessica Damiano (07/27/07)

What's the Cost of Going Solar?

2007-07-16T13:32:00.000-07:00

The cost of solar panels has fallen by half in the past 15 years, cutting the cost of a system capable of powering a home to about $30,000. Analysts expect the cost to fall even more rapidly in the next few years.

Throw in tax breaks and other incentives offered in some states, and the systems can often pay for themselves within a decade. To find out if there are incentives available in your area, check out the online Database of State Incentives for Renewables & Efficiency.

What other costs can you expect when going solar? Setup costs can include as much as $1,500 for upgrading your fuse box. Another issue is the roof, which might be unable to support the solar panels. Eliminating shade from trees on the property also has a cost beyond sentimental reluctance.

However, the hefty costs pay off when it's time to sell. According to a study by ICF consulting, every $1 reduction in annual fuel bills increases a home’s resale value by $10 to $25.

Source: SmartMoney, Daren Fonda (07/01/2007)Source: SmartMoney, Daren Fonda (07/01/2007)

Passing the Sniff Test in Selling the Home

2007-06-29T10:20:00.000-07:00

In addition to depersonalizing and decluttering, experts say home sellers need to be concerned about odors.

Sales associates polled informally by REALTOR® Magazine Online a few years ago said the lingering presence of pets, tobacco, mildew, and decay in the air are major deal-breakers.
Given that not everyone smells the same odors and that people can become accustomed to a particular smell over time, it is important for property sellers to have their sales associates or another objective party inform them about unpleasant scents in their homes.

According to Joan Cromwell, a Chevy Chase, Md.-based Long & Foster practitioner, if buyers "can't imagine clearing the smell, they can't imagine occupying that space."
In particular, the smell of cat urine is especially difficult to remove. Chris Coffin of the Alexandria, Va.-based branch of the cleaning company ServiceMaster estimates that spot-cleaning carpets and replacing the carpet pad would cost home buyers upwards of $400; removing and replacing saturated floors would cost much more.
Coffin says that it often takes three cleanings to remove nicotine odors from walls, and some cases involve the replacement of insulation.

Experts urge home buyers to be wary of air fresheners, candles, and other scents when touring homes, as they could be used to conceal offensive odors.

A better solution for sellers, they say, is to clean drapes, sheets, and pet bedding as well as to air out the house.

How To Hire A Contractor

2007-05-11T12:03:00.000-07:00

We have all heard the nightmare story or some version of it: an unsuspecting homeowner pays tens of thousands of dollars to contractors only to be left with an unfinished kitchen or bad pipes. The homeowner then spends the next couple of months trying to recover financially so that they can hire a new contractor to redo or patch the faulty work. Here are a few tips to help protect yourself:

DON’T BE AFRAID TO ASK QUESTIONS!

1. Do you have a license for that?
You will want to see a copy of that license or a license number so that you can verify it with the state licensing board. Have the contractor fax or email a copy, if you are conducting a face to face walk through of the area, instruct them to bring a copy to the "interview." Then, contact the state to find out whether the contractor is validly licensed and in good standing. A contractor is typically required by the state to be licensed if they perform jobs above a certain amount. Having a license enables contractors to get insured for their business. The more insured they are, the less likely it is you will have to pay out of pocket for injuries. If they are not insured, but they damage your property, you may bear the expense of fixing the damage because reimbursement is not required by the contractor. So right around this time, some contractors skip out on paying for damages even if it is there fault. Second, if the contractor damages someone else's property or, even worse, another human being, you would be responsible for payment of damages.
2. Have you had any complaints issued against your company?
Use the phone call you make to the state licensing agency to find out if anyone has lodged a complaint against the contractor. With one call, you will find out about the contractor' quality of work and customer service. If you are still unsure, you can always call the Better Business Bureau to find out if there have been any complaints lodged there.
3.Do You Have References?
As with most companies offering products or services, references and word-of-mouth are powerful indications of quality and reputation. When screening contractors, ask for references to previous clients for whom the contractor has worked.

Here is a checklist of questions to ask these references:
-Was the client happy with the completed project?
-Would he or she have wanted anything changed or done differently? What specifically?
-Was the contractor easy to work with? What was his or her relationship like with the crew?
-Was the job performed and completed on time? If not, what were some of the delays?
-Was the job completed on budget? If not, what put the job over-budget?
-If you are feeling really bold, you may want to ask the client if you can either see the completed work or the before and after pictures of the task.
-Do You Have Workmen's Compensation Insurance?

Now that you may have narrowed down your choices as to the contractor you want to hire, your next step is to make sure that the contractor you hire will limit your personal liability for injuries that occur on the job site. The best way to do so is to make sure that the contractor has workmen's compensation insurance to cover the injuries of his own employees or independent contractors working at your home. You will want to make sure that the insurance is current and the policy is large enough to cover everyone working including the contractor and his employees. A licensed contractor is also required by the state to be bonded which means he or she has to give a certain amount of money to cover the cost of damage. The only problem is that many states only require small sums, think $10,000. So if the job is fairly big, the ten thousand may not cover the actual costs. The best way to protect yourself is to make sure that the contractor is insured above the required bond amount.
-Do Your Homework
Prior to screening potential contractors, become familiar with the task you need completed on your property and learn about applicable building codes and possible permits and inspections required in order to perform the task. Then, when screening a potential contractor, don't be afraid to quiz the contractor and make sure he or she is completely knowledgeable about building codes, required inspections and any applicable permits that he or she would have to obtain before beginning any work. If the contractor brushes off the importance of obtaining all necessary permits or tries to persuade you that it's not a necessary step, move on to the next contractor.
-Keep in Touch
Be sure to get a physical address and phone number. A reputable contractor should not be afraid to give you an address or permanent telephone number if he or she has nothing to hide. Most contractor scam artists and fraudulent operations only give out a cell phone number, beeper number, answering service or other untraceable number, along with a post office box and no traceable street address. This makes it very easy to disappear (along with your money) and become almost impossible to locate or trace.
-Get it in Writing Before He or She Starts The Job
Be sure that all terms of the agreement are covered in the contract, such as the start date, accurate description of the work to be completed, materials needed and used, labor and material costs, payment schedule, timetable, names of subcontractors, clean-up methods, completion date and any other arrangements that are agreed upon. The contract should also cover the policies regarding project cancellation and how extra materials or labor costs will be handled in case of a time delay or extension. A quality contractor should also be very willing to offer a warranty which lasts one year from the completion date, so make sure that the warranty is mentioned in the contract if one is agreed upon between you and the contractor.

GOOD LUCK!

Green BofA?

2007-03-07T10:12:00.000-08:00

Charlotte, N.C.-based Bank of America Corp. has announced a 10-year, $20 billion "green" program, under which it will promote eco-conscious business practices.

BofA will offer mortgage incentives to buyers of homes that satisfy environmentally friendly standards.The bank also indicated that it would earmark $1.5 billion for green construction of its own office and banking buildings and for conservation efforts at its existing real estate.

The bulk of the investment — $18 billion — will be spent on helping commercial borrowers finance the production and use of new green tools, services, and technologies.

Source: The Wall Street Journal (03/07/07) - Realtor.com

And you think LA is expensive?!

2007-03-06T12:10:00.000-08:00

The most-expensive city in the world is Oslo, Norway, according to a survey conducted for The Economist Group.

Oslo was followed by Paris; Copenhagen, Denmark; London; Tokyo, which claimed the top spot in 2005; and Osaka Kobe.

The survey compared prices in more than 130 cities worldwide. The survey made the United States look affordable. New York, the most expensive U.S. city, is No. 28. Chicago finished at No. 36 and Los Angeles was at No. 41. Atlanta, at No. 84, was the least-expensive U.S. city.

Source: The Associated Press, J.W. Elphinstone (03/05/07)

Taxes: Don't Forget to Deduct Rental Depreciation

2007-02-16T12:41:00.000-08:00

Tax time is nearly here. Anyone renting out a property to a tenant — either as an investor or as a reluctant owner who can’t find a buyer — shouldn’t forget to deduct depreciation expenses from income taxes.

The idea is that property loses value as it ages, so the IRS lets landlords subtract some of the value of their property every year for 27.5 years and use it to reduce the income received from the tenant. That reduces the landlord’s tax bill.

Depreciation is complicated — and calculating it often requires professional help, experts say. Some people are overwhelmed by a depreciation schedule and opt to ignore it.

But that’s a mistake, experts caution. The government assumes landlords deduct depreciation whether they do or not. Landlords who don’t claim depreciation will pay higher taxes while they own the property. And when they finally sell the property, the IRS demands that they recapture depreciation — that is pay back a portion — whether they took the original deduction or not.

Source: Chicago Tribune, Gail Marks Jarvis (02/11/07) From Realtor.org

2006 Is Third-Highest Sales Year on Record

2007-01-26T14:04:00.000-08:00

Existing-home sales eased but prices stabilized as inventories tightened in December, according to the NATIONAL ASSOCIATION OF REALTORS®. Nevertheless, 2006 marked the third highest sales year on record. NAR began tracking home sales in 1968.
David Lereah, NAR’s chief economist, says home sales remain historically high. “Despite all of the doom-and-gloom stories and dire predictions over the last year, 2006 was the third strongest year on record for existing-home sales,” he says. “It looks like we’re moving beyond the low for the housing cycle last fall, and buyers are responding to historically low interest rates and competitive pricing by home sellers. In addition, a tightening inventory of homes on the market is supporting prices.”
Total existing-home sales — including single-family, townhomes, condominiums, and co-ops — eased 0.8 percent to a seasonally adjusted annual rate of 6.22 million units in December compared with 6.27 million in November. Sales were 7.9 percent lower than a 6.75 million-unit pace in December 2005.There were 6,480,000 existing-home sales in 2006, down 8.4 percent from a record of about 7,075,000 in 2005. The second highest total was 6,779,000 in 2004. A

Closer Look at the Numbers
Total housing inventory levels fell 7.9 percent at the end of December to 3.51 million existing homes available for sale, which represents a 6.8-month supply at the current sales pace — down from a 7.3-month supply in November.
The national median existing-home price for all housing types was $222,000 in December, which is unchanged from December 2005. The median is a typical market price where half of the homes sold for more and half sold for less. The 2006 median price was also $222,000, up 1.1 percent from a median of $219,600 in 2005.
Meanwhile, the national average commitment rate for a 30-year conventional, fixed-rate mortgage was 6.14 percent in December, down from 6.24 percent in November, according to Freddie Mac. The December rate was the lowest since October 2005 when it averaged 6.07 percent.
Furthermore, single-family home sales slipped 1.3 percent to a seasonally adjusted annual rate of 5.44 million in December from 5.51 million in November, and were 7.2 percent lower than the 5.86 million-unit pace in December 2005. In 2006, single-family sales declined 8.1 percent to 5.68 million, the third strongest total on record. The median existing single-family home price was $221,600 in December, which was unchanged from a year ago. The median single-family price for 2006 was $222,000, up 1.4 percent from 2005.
Existing condominium and cooperative housing sales rose 2.1 percent to a seasonally adjusted annual rate of 777,000 units in December from an upwardly revised level of 761,000 in November. Last month’s sales activity was 12.2 percent lower than the 885,000-unit pace in December 2005. After setting 10 consecutive annual records, condo sales in 2006 fell 10.4 percent to 803,000 units, the third highest year on record. The median existing condo price was $227,000 in December, which was 0.3 percent above a year ago. The median 2006 condo price was $221,800, down 0.9 percent from 2005.

By Region
Here’s what happened regionally in December:
Existing-home sales in the Midwest rose 4.3 percent in December to a level of 1.47 million, but were 5.8 percent lower than December 2005. The median price in the Midwest was $167,000, which is 2.9 percent below a year ago.
Existing-home sales in the South increased 0.8 percent to an annual sales rate of 2.49 million in December, but were 7.1 percent below a year ago. The median price in the South was $182,000, unchanged from December 2005.
Existing-home sales in the Northeast declined 2.8 percent to a level of 1.04 million in December, and were 5.5 percent below December 2005. The median existing-home price in the Northeast was $283,000, up 3.7 percent from a year earlier.
Existing-home sales in the West fell 9.1 percent to an annual pace of 1.20 million in December and were 15.5 percent lower than a year ago. The median price in the West was $349,000, up 1.5 percent from December 2005.

Expect Steady Gains
NAR President Pat Vredevoogd Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, says the market has clearly settled with some minor monthly fluctuations. “We expect home sales to rise modestly over the course of this year,” Combs says. “Although local markets vary, price appreciation will be below normal in most of the country this year, but we’re looking for slow, steady gains in both home sales and prices through 2008.”
— REALTOR® Magazine Online

Greenspan Says the Worst is Over for Housing

2006-11-29T10:59:00.000-08:00

Former Federal Reserve Chairman Alan Greenspan says that the worst of the housing adjustment is over and “sales figures have stabilized.” He predicted that inventory levels will come down at a "reasonably rapid pace.”

Greenspan also announced he is preparing to publish an analysis of the effect of mortgage wealth on consumer spending. The paper will include data on gross equity extraction dating to 1968 and a more detailed analysis of data from 1991 to the present. The thesis, he says, is whether extracted equity is "acting as a proxy for all types of financing of goods that would've been bought anyway." Greenspan didn’t say when the analysis will be available.

-- Associated Press, Vinnee Tong (11/28/2006)

Study Pinpoints Best U.S. Markets to Invest In

2006-11-28T12:24:00.000-08:00

Daily Real Estate News November 28, 2006

The top U.S. markets for real estate investment prospects next year are global gateway metros such as New York, Washington, D.C., Los Angeles, Seattle, and San Francisco, says the Urban Land Institute and Pricewaterhouse Coopers in Emerging Trends in Real Estate 2007,an annual outlook for U.S. real estate investment and development trends. In spite of real estate’s unusually long run up in prices and sales, interest from investors hasn’t waned."

Real estate is still viewed favorably as an asset class and there’s still a lot of money — especially from private funds and institutional investors — looking for the right opportunity," says William Croteau, U.S. real estate practice leader for Pricewaterhouse Coopers. "Although we don't expect any major downturn in the marketplace, it's likely that real estate's overall performance will be more modest in 2007."

Location Still Rules
Most promising? The report says it’s “investment Meccas on both coasts,” noting that “location becomes even more important in real estate investing as the transforming global economy increasingly determines where companies and people need and want to be.”In addition to being located along “global pathways” with international airports and harbor ports, top markets are characterized by:

24-hour features
Attractive settings in reasonably comfortable climates
Geographic barriers limiting sprawl

Brainpower jobs attracting an affluent, highly educated workforceAlthough a number of cities in the South and Southwest, including Atlanta, Dallas, Houston, and Phoenix, are described as “development magnets,” because of the amount of current new construction, the report says “their tendency toward oversupply compromises their standing with investors."

Sunbelt development havens consistently fall behind global gateways for investment prospects, even as their economies continue to grow, the report says. They remain relatively affordable, but these areas lack strong 24-hour cores and mass transit systems. In addition, their locations away from coasts "make them secondary destinations for international business.”

— By Camilla McLaughlin for REALTOR® Magazine Online

Typical home buyer now an Internet buyer, according to the “2006 Internet Versus Traditional Buyer Survey”

2006-11-21T13:10:00.000-08:00

Use of Internet by all home buyers rises to 70 percent

LOS ANGELES (May 18) – The Internet buyer has become the “typical” home buyer over the last few years, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ “2006 Internet Versus Traditional Buyer Survey,” released today. Since 2001, the share of home buyers using the Internet as an integral part of the home-buying process has nearly doubled to 70 percent. While the characteristics of Internet buyers and their traditional counterparts have started to converge, important distinctions between the two segments remain. According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) report, Internet buyers were younger, wealthier, better educated and more likely to be married than traditional buyers. Internet buyers also reported greater satisfaction with the home-buying process compared with traditional buyers.

C.A.R.’s “2006 Internet Versus Traditional Buyer Survey” will be distributed by the First American Family of Companies in booth #316 during the NATIONAL ASSOCIATION OF REALTORS® 2006 REALTORS® Conference & Expo, running from May 17-19 in Washington, D.C. First American also will distribute the report at the California REALTOR® Showcase, June 7-10 at the Sacramento Convention Center.

“The Internet is changing the dynamics between buyers and their agents, as well as the way business is conducted throughout the real estate industry. However, while the Internet has become an important research tool for home buyers, it has only enhanced the REALTOR®’s role in the transaction,” said C.A.R. President Vince Malta. “Buyers continue to rely on their REALTOR® for help with interpreting the information gathered from the Internet and to guide them through the home-buying process.”

According to the survey, more than nine out of 10 Internet buyers indicated that the Internet helped them better understand the process of buying a home. Additionally, Internet buyers are accustomed to receiving more frequent communication and faster response times from their REALTORS®.
“More and more consumers have high-speed Internet access at home, enabling them to gather information on all types of products and services both quickly and easily,” said Malta. “This trend has carried over to the process of buying a home. As a result, home buyers are more informed, have a greater sense of control over the process, and hold high expectations concerning how quickly they receive information.”

Internet buyers and traditional buyers expressed significant differences in how they conducted their home-buying research. Internet buyers conducted more research at the onset of the home-buying process, while traditional buyers relied more on their agent as their source of information.
Other key findings from C.A.R.’s 2006 Internet Versus Traditional Buyer Survey include:

The median age of Internet buyers was 39 years compared with a median of 42 years for traditional buyers.
More than nine out of 10 Internet buyers were married, while nearly eight of 10 traditional buyers were married.
Seventy-three percent of Internet buyers had at least a four-year college degree and 11 percent completed post-graduate work. By comparison, 72 percent of traditional buyers held a college degree and 5 percent completed post-graduate work.
Internet buyers had an annual income of $184,900, compared with $148,910 for traditional buyers.
Internet buyers spent an average of 5.8 weeks considering buying a home before contacting a REALTOR®, nearly three times more than traditional buyers, who spent 2 weeks in this stage of the home-buying process.
Internet buyers spent 2.2 weeks looking for the home they ultimately purchased, compared with 7.1 weeks for traditional buyers.
Fifty-four percent of Internet buyers said the information that they gathered from the Internet was less useful than that provided by their REALTORS®; none considered the information gathered from the Internet to be more useful than that obtained from their REALTORS®.
All first-time buyers typically spent 5.3 weeks considering buying a home and 4.3 weeks investigating homes for sale before contacting a REALTOR®. They then spent 3.2 weeks previewing eight homes with their REALTOR®.
All repeat buyers spent 3.3 weeks considering buying a home and nearly three weeks investigating homes for sale on their own. They spent 5.4 weeks previewing 13 homes with their REALTOR®.

- CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org)

NAR Urges Buyers to Act Now

2006-11-06T11:39:00.000-08:00

The NATIONAL ASSOCIATION OF REALTORS® on Friday launched a national advertising campaign to urge potential home buyers who have been waiting on the sidelines to act now before prices gain traction.

The advertisement points out:

-Interest rates have fallen seven months in a row and are near 40-year lows.
-Inventories of existing homes are higher than they have been in decades.
-Home prices have stabilized.

But the perfect conditions for buyers are likely to change as sales pick up, prices increase, and conditions improve for sellers next year.

“Homeownership is a safe, secure way to build long-term wealth,” the ad reads. “The national median price of homes bought 10 years ago has increased 88 percent. The number of U.S. households is expected to increase 15 percent during the next decade, creating a continued high demand for housing.”

The ad also quotes Alan Greenspan, former Federal Reserve chairman, saying, “Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.”

Spreading the Message

NAR President Thomas M. Stevens of Vienna, Va., says the newspaper ads are the beginning of an NAR campaign to urge buyers and sellers to take advantage of the favorable market conditions. “The market is much better than you might hear or read,” Stevens says. “Consumers should take advantage of this perfect alignment of low rates and extraordinary inventory before market conditions change."

Where the Market Stands

Total housing inventory levels fell 2.4 percent at the end of September to 3.75 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace, according to NAR’s existing-home sales report. The national median existing-home price for all housing types was $220,000 in September, which is 2.2 percent below September 2005, when the median was $225,000. The median is a typical market price where half of the homes sold for more and half sold for less.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.40 percent in September, down from 6.52 percent in August.

— REALTOR® Magazine Online

September Homes Sales Ease, Inventory Tightens

2006-10-27T10:18:00.000-07:00

Existing-home sales eased last month, but so did the number of homes available for sale, showing that the market is stabilizing, according to the NATIONAL ASSOCIATION OF REALTORS®.

September existing-home sales — including single-family, townhomes, condominiums, and co-ops — dipped 1.9 percent from August to a seasonally adjusted annual rate of 6.18 million units. Compared with September 2005, which was the third strongest month on record, sales were down 14.2 percent.

“Considering that existing-home sales are based on closed transactions, this is a lagging indicator and the worst is behind us as far as a market correction,” says David Lereah, NAR’s chief economist. “When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market, and sales will be at more normal levels in the wake of the unsustainable boom that we saw last year.”

Inventory Gets Tighter
Total housing inventory levels fell 2.4 percent at the end of September to 3.75 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace. NAR President Thomas M. Stevens from Vienna, Va., says the numbers are encouraging to those in the real estate business.“It appears we have passed a cyclical peak in terms of the number of homes on the market,” says Stevens, senior vice president of NRT Inc. “

The good news is that fewer new listings are coming online.” He says a stable sales pace should draw down the number of listings to a supply balance that will support price growth within a few months. “Taking the long view is always the best way to approach housing decisions, and right now, buyers are in a very favorable market,” he says.

Median Home Price Down Just 2.2%
With the market in transition, the national median existing-home price for all housing types was $220,000 in September, 2.2 percent below September 2005 when the median was $225,000. The median is a typical market price where half of the homes sold for more and half sold for less.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.40 percent in September, down from 6.52 percent in August; the rate was 5.77 percent in September 2005.

Single-family home sales slipped 1.6 percent to a seasonally adjusted annual rate of 5.42 million in September from a pace of 5.51 million August, and were 13.8 percent below the 6.29 million-unit level in September 2005, which was the second highest month on record. The median existing single-family home price was $219,800 in September, down 2.5 percent from a year earlier.

Existing condominium and cooperative housing sales fell 3.2 percent to a seasonally adjusted annual rate of 763,000 units in September from 788,000 in August, and were 16.0 percent less than the 908,000-unit pace in September 2005. The median existing condo price was $219,800 in September, 2.8 percent lower than a year ago.

Regional Markets Vary
Regionally, existing-home sales in the South rose 0.4 percent to an annual sales rate of 2.52 million in September, but were 9.0 percent below September 2005. The median price in the South was $184,000, down 1.6 percent from a year ago.

Existing-home sales in the Midwest eased 2.8 percent in September to a level of 1.39 million, and were 13.7 percent lower than a year ago. The median price in the Midwest was $169,000, which is 2.3 percent below September 2005.

In the West, existing-home sales declined 3.1 percent to an annual pace of 1.25 million in September, and were 23.8 percent lower than a year earlier. The median price in the West was $332,000, down 4.3 percent from September 2005.

Existing-home sales in the Northeast fell 3.7 percent to a level of 1.03 million in September, and were 13.4 percent below September 2005. The median existing-home price in the Northeast was $259,000, down 5.1 percent from a year earlier.

— REALTOR® Magazine Online

Home Prices Correcting, Buyers Returning to the Market

2006-10-16T11:47:00.000-07:00

WASHINGTON, October 11, 2006 -
Home sales appear to be bottoming out with lower home prices attracting buyers in many areas of the country, according to the National Association of Realtors.
David Lereah, NAR’s chief economist, said the housing market is showing signs of life and that sales may be leveling out. “Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices,” he said. “Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year.”

With a recent correction in the market, the national median existing-home price is likely to rise 1.6 percent to $223,000 for all of 2006; it’s anticipated prices will remain slightly below year-ago levels before gaining positive traction in the first quarter of 2007. The median new-home price is projected to decline 0.2 percent to $240,500 – largely the result of builder price cuts to move unsold inventory.

NAR President Thomas M. Stevens from Vienna, Va., said this presents a unique opportunity for buyers. “The supply of homes on the market is the highest we’ve seen in over 13 years, and mortgage interest rates are experiencing an unexpected decline,” said Stevens, senior vice president of NRT Inc. “The 30-year fixed rate is hovering around 6.3 percent, and sellers in most of the country are now showing a willingness to negotiate. While this changing market is a great time to buy, it’s become increasing important for parties on both sides of the real estate transaction process to have professional representation.”

The 30-year fixed-rate mortgage will probably average 6.5 percent in the fourth quarter but will trend up modestly in 2007.
The unemployment rate should average 4.8 percent in the fourth quarter. Inflation, as measured by the Consumer Price Index, is expected to be 3.4 percent for all of 2006, while growth in the U.S. gross domestic product is forecast at 3.3 percent. Inflation-adjusted disposable personal income is likely to grow 3.4 percent for 2006.

4 Ways to Foster a Fast Sale in a Slow Market

2006-10-09T13:18:00.000-07:00

A tougher housing market means that real estate practitioners must take every opportunity to get their listings noticed. Here are some ways that sellers can work with their practitioners to foster a faster sale:

- Exposure, Exposure, Exposure. Sure, it may inconvenient to have buyers visit the home at unpredictable times. But limiting the times at which buyers can view the house may mean that they’ll look at other homes instead. “More showings equals greater interest equals greater likelihood for more money,” says David Martz, an associate with Re/Max Valley Properties near San Jose, Calif.

-Lookers Come; Sellers Go. Sellers should leave the house when buyers arrive; Having the sellers around can make buyers uncomfortable. “Their very presence can be contrary to the merchandising experience,” says John Dozier, owner of Cupertino Properties.

-Competitive Commissions. Make sure the commission being offered to the buyer's agent is competitive, even if the seller’s agent is offering to take a smaller than usual commission. Otherwise, buyers' agents could focus on other homes first.

-No Surprises. Don’t forget to mention things that could make a buyer or a buyer’s agent feel disappointed the first time they see the property: a bad roof, a foundation that needs major repairs. Disclose these flaws in the listing notes as well as the legal disclosures so buyer’s agents can prepare their clients before showing them the property.

Younger Home Buyers Showing An Increased Influence in Real Estate Markets

2006-10-04T17:42:00.000-07:00

WASHINGTON (September 15, 2006) – As they begin to enter the housing market, many consumers in their 20s are more likely to buy a home at a younger age than their older brothers and sisters as well as their baby boomer parents, and are not necessarily waiting for marriage or even a long-term relationship before becoming homeowners. “The next generation of homeowners is beginning to exert its influence on the housing market,” said Thomas M. Stevens, National Association of Realtors president from Vienna, Va., and senior vice president of NRT Inc. “Many younger buyers have seen the wealth-building effects of homeownership in their parents and understand the value of housing as a good long-term investment.”

The motivations, interests, and home buying approach of some younger buyers are chronicled in “Tomorrow’s Buyers: Who They Are and What They Want” in the September 2006 issue of REALTOR Magazine. The report integrates NAR research with the experiences and attitudes of real-life buyers who represent different demographic populations, putting a human face on statistical trends.

The percentage of first-time homebuyers under age 25 has been increasing in response to historically low interest rates and continued confidence in the long-term housing market, from 11 percent in 2001 to 14 percent in 2005, according to the 2005 NAR Profile of Home Buyers and Sellers. “Owning a home is no more burdensome than renting, and in the long term, it’s the better investment,” said Kristen Carreira, a 26-year-old homeowner in Pittsburgh.

Carreira is also part of a trend in single female home buyers. While married couples are still the norm, they represent a smaller share of the home buying public than they did just 10 years ago, from 70 percent of home buyers in 1995 to 61 percent today, says NAR. During that same time, the proportion of single women buying homes has increased, from 14 percent in 1995 to 21 percent today.Younger buyers are also likely to use technology and the Internet in their home buying search. In 2005, according to NAR research, the median age of buyers who used the Internet to search for homes was 11 years younger than those who did not, at 38 and 49, respectively.“Realtors have adapted to meet the needs of this growing population of young home buyers,” said Stevens. “More than one-third of NAR’s 1.3 million Realtor members have had special training and lots of experience in buyer representation and technology. That expertise is reflected in special designations and certifications, such as the Accredited Buyer Representative (ABR) designation and e-PRO certification. A commitment to understanding the demands of this changing marketplace is just one more way Realtors add value to the real estate transaction.”

Regulators to Get Tougher with Exotic Mortgages

2006-09-21T15:36:00.000-07:00

Banking regulators promised the Senate Banking committee yesterday that they would soon require lenders to provide greater disclosure to borrowers about the risks associated with alternative mortgages that allow interest-only payments or negative amortization.The risk is mainly a doubling or tripling of monthly payments once the low “teaser rate” expires and payments are reset to cover the growing principal, says Sandra Thompson, acting director of supervision and consumer protection at the Federal Deposit Insurance Corp.“The acceleration of the U.S. home price boom does appear to have been related to changes in the mortgage markets,” Thompson says. “The greater availability of flexible mortgage structures probably allowed price increases to outstrip growth in incomes to a greater extent than would otherwise have been the case.”Robert Broeksmit of the Mortgage Bankers Association defended exotic mortgages. “I strongly believe the market’s success in making these nontraditional products available is a positive development, not a cause for alarm,” Broeksmit testified.Source: Dow Jones Business News (09/20/06)

No 'Bust' in Sight for These Solid Markets

2006-09-01T16:55:00.000-07:00

Anyone reading the news would think the sky is falling in the housing market, but in many markets that’s definitely not the case.BusinessWeek.com screened data from the NATIONAL ASSOCIATION OF REALTORS® to identify markets with the highest home-price appreciation during the second quarter. To eliminate markets that were undervalued to begin with, the magazine only considered cities that had a median home price higher than the national average of $227,500.Nationally, home prices increased 3.7 percent in the second quarter. But these top 10 markets all saw prices climb at least three times faster than that:

Virginia Beach-Norfolk-Newport News (Va.-N.C.), up 23.6% from a year ago
Portland-Vancouver (Ore.), 19.1%
Tampa-St. Petersburg (Fla.), 18.8%
Eugene-Springfield (Ore.), 18.3%
Orlando (Fla.),17%
Los Angeles-Long Beach, 14.6%
Phoenix-Mesa (Ariz.),11.8%
Philadelphia-Camden-Wilmington (Pa.-N.J.-Del.), 11.4%
Hagerstown-Martinsburg (Md. -WVa.), 11.4%
Norwich-New London (Conn.), 11%

Source: Business Week Online, Christopher Palmeri and Douglas MacMillan (08/23/06)

Welcome!

2006-06-06T09:07:00.000-07:00

Welcome to Brandon & Sunnie's Blog. Our aim is to discuss Real Estate related information ranging from current market conditions to forcasts, buyer tips, seller tips and other items that we think will be of interest to our clients and guests. Please feel free to give input, suggestions or just say hi.

Thank you and let's help each other learn and keep in touch.

Brandon & Sunnie