8 Home Inspection Fails That May Require a Specialist

Home inspectors have the expertise and knowledge of home building to make sure that a house is going to be safe, livable, and worth the investment.

But even home inspectors have their limits. Some don’t have the qualifications to inspect certain aspects of the home, like the sewer drains and chimney, which is why homebuyers may want to call in specialists to review trouble zones.

Here are eight instances when Trulia recommends using a specialist if the general inspector indicates there’s a problem:

1. Roofs:  Since roof repairs are costly and can cause major problems if put off, home sellers and homeowners may want to prioritize roof repairs. For homes that have shingle roofs, a roof inspector will look for shingles that are cracked, loose, or curling, according to the Insurance Institute for Business & Home Safety, a nonprofit supported by property insurers and reinsurers. Inspectors will also look at off-ridge vents to see if they are loose and for roof leaks, which they can spot if there are water stains around the chimney and pipes. Also they will check for indications inside of leaks (such as ceiling stains or peeling wall paper).
2. Chimneys:  If the roof inspection reveals signs of damage around the chimney, a chimney specialist should give it a closer examination. This is done with the aid of a chimney inspection camera. Inspectors will also look at the exterior, interior, and accessible parts of the chimney, giving special attention to the strength of the chimney structure and the condition of the flue, according to the Chimney Safety Institute of America.
3. Geology:  A geological inspection of a property on a hill or in a flood zone will help catch issues like drainage problems or ground shifts. There are often two reports that come from these kinds of inspections: a natural hazard disclosure and a geologic environmental site assessment. The natural hazard disclosure includes a closer look at the maps of the area to hone in on areas that are vulnerable to earthquakes and landslides, according to George Dunfield of the California Board for Geologists and Geophysicists, in a 2005 interview with The Los Angeles Times. A geologic environmental site assessment (which can cost more than $1,000) looks at the soil quality of the property and assesses whether the site is susceptible to contaminants like fuels and solvents.
4. Sewers:  A sewer line is a heavily used piece of equipment in any home and can go as far down as 16 feet underneath a property to connect to a public sewer system. Home inspectors sometimes call on plumbers and specialty contractors to do a “sewer scoping” with a specialized camera. “A lot of clogging comes from bad installation of sewer pipes, even with brand-new homes,” Bob Ansel, owner of Drain Solvers in Longmont, CO, told The Denver Post. Plumbers can unclog the sewer pipe to get it operational again. But if a sewer pipe needs to be replaced, the price to do so can go upwards of $20,000.
5. Termite Damage:  Sellers often pay for termite inspection since many lenders require a full report on any termite-related issues before approving a loan.
6. Moisture, Mold, and Toxins:  Every last inch of a house needs to be checked for these potential deal killers. Inspectors will look for physical signs of mold and moisture and take temperature and moisture readings. Inspectors may also look at the property’s history to see if any previously reported problems may be an indication of mold, according to ABC News.
7. Asbestos:  If a house dates to 1975 or earlier, there’s a chance asbestos insulation was used around air ducts, water heaters, and pipes. This Old House recommends that homeowners who find asbestos that’s been significantly damaged should avoid touching the material. An industrial hygiene firm and an asbestos abatement contractor may be called in to assess, repair, and clean the property. If this can be easily done, Trulia suggests homebuyers ask the seller to pay for the inspection.
8. Proper Use:  Homeowners may not need to hire an extra inspector to manage this, but Trulia suggests that they may need to work with the real estate agent. Any major additions or alterations to a home need to have been properly permitted for the sale to be legal. The garage that was converted into a home office might be beautiful, but if the inspector finds out that the proper permits weren’t obtained it could negate the deal.

Home inspectors provide you with important information that can have a major impact on a sale, but they’re not the only ones who may need to get involved in the process.

Often paying the up-front costs for a full inspection today, or before you list your home for sale, can save future expenses and headaches further down the line.

courtesy of:  http://www.thehomestory.com/…

8 Surprising Predictors of Housing Prices

It’s no surprise that home buyers and owners like to know which way prices are heading. But when it comes to nailing the best deal in real estate, there are eight surprising indicators of change in home prices, according to realtor.com®. For instance, a study found that for every $1 decrease in gas prices, home prices increase by roughly $4,000 and the average time to sell a property decreases by 25 days. And it’s not just gas prices that are worth monitoring. Homes near a Trader Joe’s are worth 5 percent more than homes near a Whole Foods, according to RealtyTrac. Also, moving a residential housing unit one mile closer to a professional sports facility increases its value by $793. Other indicators include marijuana laws, casinos, temperature changes, trees on a street, and proximity to highways … read more —>  http://www.realtor.com/news/trends/

Which Home Improvements Payoff?

Filling An Empty HOA Board of Directors Position In CA

QUESTION:  If a board member resigns one full year before the end of her term, is her empty seat automatically open for election or does the board appoint her replacement?

RESPONSE:  I know Clint Eastwood had trouble filling an empty chair three years ago but it’s fairly routine for boards of directors. The mechanism depends on two things: (i) how the vacancy was created and (ii) the language in your governing documents.

Recall. Vacancies caused by the membership’s removal of a director (a recall) cannot be filled by the board. It must be filled by the membership at a special election (Corp. Code §7224(a)). That should be done on the same ballot as the recall.

Death & Resignation. Vacancies created by death or resignation of a director are filled by approval of a majority of the remaining directors, unless the governing documents expressly provide otherwise. (Corp. Code §7224(a), Robert’s Rules, 11th ed., p. 467.) Most bylaws follow the Corporations Code and give the board the authority to fill the seat.

Failure to Appoint. If the board fails or refuses to fill an empty position, the membership can call for a special election. (Corp. Code §7224(b).) The process is initiated by filing a petition with the board for a special meeting to fill the seat.

RECOMMENDATION: Check your articles of incorporation and bylaws to see if they address the subject. If they are silent, then follow the Corporations Code as described above.

courtesy of:  http://www.davis-stirling.com/Newsletters/

Understanding Smart Home Technology

The Internet of Things is quickly becoming a reality, and there’s no place where this is more obvious than in our homes. According to predictions from market researcher MarketsandMarkets, the global smart home market will grow to about $58.7 billion by 2020, fueling a 17 percent compound annual growth rate and creating a significant consumer market for smart homes. Buyers know the benefits that come with these systems, and they want them in their homes …

Smart Thermostats

Smart thermostats are one of the quickest and cheapest ways to upgrade a home. A smart thermostat like Nest learns from the homeowner’s habits and preferences and adjusts its settings accordingly. It can also pull the weather forecast from the Internet to set the optimal temperature and create monthly reports, all of which help the home be energy-efficient and save the homeowner money.

Homeowners who use a smart thermometer can save between 10 and 12 percent on heating and 15 percent on cooling bills, according to the company website. Show potential buyers an example of the monthly report that Nest generates to demonstrate how much money they can save with this smart device …

Smart Lighting

Being able to control your lights with your mobile device is a wonderful smart home feature. Philips Hue is probably the most popular example of this type of smart lighting. Homeowners can use a smartphone app to turn the lights on and off as well as change the colors and brightness of the lights. If you have a potential buyer with young children, you could light up one of the bedrooms with a bright pink light to make it feel fun and youthful. If you’re trying to show off a home theater experience in the living room, put LED light strips behind the TV and sync them to music or a video for an immersive experience. This is especially great for highlighting a movie or entertainment room …

Smart Appliances

While getting a new appliance is a good way to increase the value of a home, going one step further with smart appliances makes it a selling point. Whirlpool has developed washers, dryers and kitchen appliances that monitor energy costs and delay or start their cycles when it is most energy-efficient time. Users control these appliances with an app, which enables alerts and remote commands from anywhere there is a data connection …

courtesy of:  http://realtytimes.com/consumeradvice/

Condos Outpacing Single-Family Homes in Appreciation

Condos are appreciating faster than single-family homes in markets across the U.S., especially where job markets are thriving or urban renewal is underway, according to the third quarter Zillow September Real Estate Market Report. Condos in the U.S. are appreciating at a rate of 5.1 percent, compared to the 3.7 percent appreciation among single-family homes.

Condo values crashed hard during the housing bust that kicked off the Great Recession. From the pre-recession peak to the lowest value, the median U.S. single-family home lost 20 percent of its value; from peak to bottom, the typical U.S. condo lost 33.2 percent of its value.

The housing market has since bounced back, and condos have finally caught up to other homes. In September, according to Zillow’s data, they are appreciating faster than single-family homes in nearly two-thirds of the top 35 most populated housing markets … read more —> http://zillow.mediaroom.com/

Does It Make Sense to Buy Energy-Efficient Appliances?

4 Tips for Replacing Appliances With Energy-Efficient Models

Buying appliances that use less power can be a smart thing to do, but figuring out when to swap an existing model for what’s often a more expensive version can be tough. The payback for new, energy-saving appliances can vary greatly depending on the age of existing models and your usage habits, as well as the cost of electricity in your area.

The National Resources Defense Council suggests you consider a more efficient model for any appliance that’s more than 12 years old. Here are some shopping guidelines to help you do that:

Choose certified appliances. If you remember only one thing when you shop, make it this: Look for the government-backed Energy Star label. This blue and white logo indicates models that have been certified as using less energy.

Go beyond purchase price. Price shouldn’t be the only factor you consider. Find the EnergyGuide label — a yellow and black tag required on most appliances — and look for the estimated annual cost of operating the appliance. Use both figures to make your decision.

Buy only as big as you need. Bigger isn’t necessarily better. Extra-large appliances require more energy, and they run at reduced efficiency when they’re not operating at full capacity.

Look for energy-saving features. Some models or features can save you more money. For instance, a top freezer refrigerator will use 10 to 25 percent less energy than a side-by-side or bottom-mount model, and a natural gas-powered water heater will typically cost less to operate than an electric model.

New appliances are not only more efficient, but they’ve also been proven to perform the same as or better than older appliances, so you won’t have to sacrifice performance to gain energy savings.

courtesy of:  BrettMills@CFSonline.biz

Widespread Gains in Home Prices for August, 2015

Data released by S&P Dow Jones Indices for the S&P/Case-Shiller Home Price Indices for August 2015 show that home prices continued their rise across the country over the last 12 months.

The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a slightly higher year-over-year gain with a 4.7 percent annual increase in August 2015 versus a 4.6 percent increase in July 2015. The 10-City Composite increased 4.7 percent in the year to August compared to 4.5 percent in the prior month. The 20-City Composite’s year-over-year gain was 5.1 percent versus 4.9 percent in the year to July … read more —> https://www.spice-indices.com/

4 Reasons To Buy A Condo… And 4 Reasons Not To

If you’re buying your first place, moving to a city where high density is the deal, or perhaps moving down and looking for more of a lock-and-leave lifestyle, a condo probably seems like a good bet. And, for many, it is. But is it really right for you?

Condo living is a commitment – to close quarters with your neighbors, to elevator rides to walk the dog if you’re in a high rise, to muddled voice and footsteps from above if you don’t have great insulation. Which might all be a worthy tradeoff for letting someone else handle the maintenance and being able to go from renter to owner. Want to see if condo living is for you? Read on.

4 Reasons TO Buy a Condo

1. It’s less expensive than a house

One of the main draws of condo living is the affordability. Of course, that’s relative to the area, the square footage of the unit, the desirability, and a number of other factors.

“Obviously, the cost of a condo versus a house depends on the size of the home, the property values of the neighborhood and the cost of living in the area,” said US News. “But typically, you’ll spend less on a condo, ‘especially in higher-cost markets where condos can be the only alternative to high-priced, single-family homes,'” says Amy Tierce, a regional vice president with Wintrust Mortgage in Needham, Massachusetts.”

2. Lower maintenance

If you don’t want to have to water the flowers or mow the lawn, condo living can offer a distinct advantage. You generally won’t have outdoor space to worry about unless you purchase a detached condo, and, in most cases, the Homeowner’s Association takes care of any exterior and common area maintenance, including any landscaping in the front of your place.

“For busy home owners, not having to actually deal with the upkeep and looks of their home can be a very good thing,” said Street Directory. “You have the benefits of home ownership, without all the responsibilities that go along with owning property.”

3. It’s all yours

Yes, some condos can feel apartment-like. But it’ll feel much more like a home once you’ve put your personal spin on it. Your landlord may not have let you paint or change out fixtures, but in your own place, you’re only limited by your imagination – and your budget.

4. For the amenities

You may be looking at luxury hotel-like condos that offer a fitness center, doorman, or valet (or all of the above). Or perhaps you’d prefer a large pool, sundeck, and clubhouse. Amenities that are standard in many condos offer buyers the opportunity to enjoy a taste of the resort lifestyle—something they probably wouldn’t find in a single-family neighborhood.

4 Reasons NOT to Buy

1. Traditionally, condos appreciate more slowly than singe-family homes

Real estate buyers aren’t typically drawn to places that don’t offer a great value. But condos may not compare to single-family homes when it comes to building equity.

“Condominiums often appreciate in value much slower than single-family homes,” said Money Crashers. “This is because you don’t own any land, which is the biggest driver for appreciation. Instead, you only own the living space. There’s a big difference.”

2. Common walls

Have kids, dogs, a loud voice, or a late-night TV obsession? You may bug your neighbor to the point that it’s uncomfortable for you both to live there. Or, they may bug you! If you’re worried about common walls, do your research:

• Listen up – Ask your Realtor to schedule a visit during the dinner hour or on a weekend so you can get a good feel for the noise and activity level
• Ask around – The neighbors should be honest about the living conditions
• Inquire within – If it’s a newer community, you may be able to find out from the builder if the insulation is upgraded to your standards

3. You want a yard

You might be able to find a pocket of grass and a mini patio, but if you’re looking for ample outdoor space, single-family is the way to go.

4. It might actually be more expensive

With a condo, you may have higher interest rates depending on your loan, plus monthly HOA fees that can be hundreds of dollars. And, US News warns to beware of condos that don’t have their finances in order.

“Some condos are underfunded and therefore have no money in reserves to pay for capital improvements such as concrete and wood repair, painting or roofing,” they said. That could create a situation where each of the owners is assessed to pay for the repairs.

courtesy of:  http://realtytimes.com/consumeradvice/

Easy Architectural Details You Can Add To Your Home

Newer homes, especially those geared toward first-time buyers, are often devoid of the level of architectural detail you would find in older or more expensive homes. If you’re not a fan of the big, boring box look, you can easily add in some detail to up the charm factor. And, many of these projects can be done yourself with minimal skill and money.

“Nothing jump-starts design envy more than walking into a home with stunning architectural details like interesting ceilings, textured walls, charming stained glass and more,” said Apartment Therapy. “Don’t despair if you don’t have any built-in architectural details in your home; there are some ideas you can try that just might give your space a similar feel as those bursting with architectural character and charm.”

Arches …

Crown molding …

Ceiling Beams …

Panel moldings …

Tin ceilings …

read more, see pics —>  http://realtytimes.com/consumeradvice/

 

How Expensive Was The California Gold Rush?

Back in 1849, a dozen eggs would cost you the equivalent of $90

If you have ever wondered how California’s modern-day rush for riches in Silicon Valley compares with the Gold Rush of 1849, look no further than the cost of buying a home.

Glenn Kelman, CEO of real estate startup Redfin, recently warned of an exodus of tech-specialists from Silicon Valley as the average price of property there topped $1 million – more than double the averages in Seattle, Boston or Portland.

It would be fair to say that property prices rose during the Gold Rush too, but that is where the comparison would have to end. Because back in 1849, they climbed to levels that would make modern Californians weep.

The writer Bayard Taylor arrived in San Francisco by ship in the summer of 1849 and feared that nobody would believe him when he wrote about the Gold Rush economy in his dispatches for the New York Tribune.

When the average wage for a laborer in New York might be one or two dollars a day, he was astounded to discover that individual hotel rooms were rented to professional gamblers for upwards of $10,000 a month – the equivalent today of about $300,000. (All inflation estimates are courtesy of Westegg.com.)

Taylor wrote —> read more:  www.smithsonianmag.com/history/

Pros and Cons of Alternative Countertops

Looking for something more unique than granite in your kitchen and bathrooms?  These beautiful alternatives are sure to make a statement.

Wood

The Pros

Wood is readily available, sustainable, comes in a wide variety of colors and finishes, and is fairly affordable.

The Cons

Natural finishes require oiling and you must also be vigilant to keep the surface dry.

Marble

The Pros

Softer stone than granite, easier to cut and work with, heat resistant, durable, sustainable, and beautiful.

The Cons

Easily scratched and stained.

Soapstone

The Pros

Durable, dense, ages well, and cost effective.

The Cons

Rough texture, requires maintenance, and doesn’t come in a wide range of colors.

Quartz

The Pros

Extremely durable and very scratch, stain, and heat resistant.

The Cons

Can discolor over time if in direct sunlight, may not look as seamless as granite when covering a large space since they are usually manufactured in pre-determined sizes.

Ceramic Tile

The Pros

Heat resistant, comes in every color imaginable.

The Cons

Grout can become easily stained, counter surface is uneven, and tiles can often crack.

Concrete

The Pros

Very durable if sealed, heat resistant, and a wide variety of textures.

The Cons

Can be easily stained with water or heat damage if not stained, not many color options, can seem outdated.

Glass

The Pros

Heat, stain, and germ resistant, and very customizable.

The Cons

Can chip or break depending on tempering, may show fingerprints.

Stainless Steel

The Pros

Heat and germ resistant, modern.

The Cons

Will show scratches and fingerprints, can be very noisy.

courtesy of:  http://www.homecarebuzz.com/

 

FICO Scores and Mortgage Interest Rates

If you want to take advantage of today’s low interest rates, you must qualify for your rates with attractive credit scores. High credit scores are earned through on-time credit payments, carefully managing debt, and keeping accounts in good standing, among other means.

Back in the 1980s, The Fair Isaac Company developed software that issues credit scores, a number that indicates your level of creditworthiness based on data gathered from creditors, landlords, tax bases, student loan lenders, and child support agencies, savings institutions, lack of credit and much more.

All three credit-reporting bureaus, Experian, TransUnion and Equifax use the software to determine your credit “FICO” score. It’s possible to have three different credit scores because the credit bureaus either have inconsistent data about you or they weigh your data a little differently.

Credit scores are a major short-hand tool bankers use to manage risk. They want to learn how much credit you use and how wisely, your debt-to-income, and if you have any defaults, liens, bankruptcies, judgments, etc. They look at your monthly obligations such as child support or alimony.

According to MyFICO.com, FICO scores range from 300 to 850, the higher the better.

• Payment History — 35%
• Total Amounts Owed — 30%
• Length of Credit History — 15%
• New Credit — 10%
• Type of Credit in Use — 10%

When you apply for a mortgage, the bank uses your social security number to look up your credit reports and scores. They base their decision to lend to you, plus how much interest they charge you, on your scores.

The best loan rates go to the borrowers with the best credit histories. As you can see from the FICO break-down, that most banks will be most interested in how much you owe and whether you pay on time.

You can get a loan with lower scores, but expect banks to require more money down, and to lower the amount they’ll loan you on a home so you can keep your debt-to-income ratio lower. And, they’ll charge you higher interest rates.

Rates that are advertised are typically for a benchmark 30-year, fixed-rate mortgage. These low-appearing rates are given to only the most credit-worthy homebuyers. What that means is that the rate is only available to those whose credit scores are high. High scores indicate high levels of responsibility, making the borrower a better candidate for a loan.

So if you want the best interest rate, take good care of your credit.

courtesy of:  http://realtytimes.com/consumeradvice/mortgageadvice1

 

U.S. Home Sales Approach 8-1/2 Year High

U.S. home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year.

The National Association of Realtors said on Wednesday existing home sales increased 3.2 percent to an annual rate of 5.49 million units, the highest level since February 2007.

“The economy really has the wind at its back now,” said Chris Rupkey, chief financial economist at MUFG Union Bank in New York.

Home resales this year are on track to record their biggest gain in eight years, the NAR said.

Economists had forecast sales rising to an annual rate of 5.40 million units last month. Sales were up 9.6 percent from a year ago.

June’s solid home sales report came on the heels of last week’s strong housing starts and building permits data. A tightening labor market is starting to push up wages, helping to boost demand for housing, especially among young adults.

But a tight supply of properties for sale remains a constraint. The string of strong housing reports indicate the economy continues to be on firmer footing despite a drop in retail sales and a slowdown in job growth last month.

read more —>  http://www.reuters.com

Returning Equity Boosts Real Estate Markets

Real estate equity is making a comeback, according to a blog post by RealtyTrac. While the market has not made a full recovery yet, there’s evidence that the housing market has become more attractive in most metro areas.

According to the Federal Reserve, homeowner equity peaked in 2005 when the value of U.S. homes — market value less debt — equaled a rosy $13.1 trillion. Unfortunately things went downhill from there as a result of the financial crisis, by 2011 homeowner equity had fallen to $6.4 trillion and millions of American homeowners saw half their real estate equity disappear.

This was not just an academic matter. Without equity, borrowers could not refinance as rates fell and they couldn’t sell without bringing cash to closing. The alternatives were short sales, foreclosures, and staying in place. In the end, more than 7 million homes were lost to foreclosure.

Now the good news: Between 2011 and 2014 homeowner equity went from $6.4 trillion to $11.3 trillion. That’s an increase of $4.9 trillion. With any luck it’s not unreasonable to believe that equity as measured on a cash basis might return to 2005 levels in the next year or so.

More equity means more homeowner options. Qualified owners can now borrow against their homes, borrow more than a few years ago or do nothing and avoid additional debt.

Read more —>  http://www.realtytrac.com/news/home-prices-and-sales/returning-equity-boosts-real-estate-markets/

5 Home Projects Only a Professional Should Do

It’s easy for homeowners to get caught up in the world of Pinterest and do-it-yourself blogs. While unique, custom projects can be a great way to personalize or spruce up your home, some projects are better left to professional contractors. Next time a friend or client has a brilliant idea to attempt one of these projects on their own, let them know why some things are best when left in the hands of pros.

1. Tree Removal

Whether it’s cutting down an overgrown tree or digging up a giant stump, this project can be an accident waiting to happen, especially if the tree is close to your house. Working from a height of 10 or 15 feet with large power tools can be dangerous enough, but add the factor of falling branches, and the risk of injury or damage to your car, house, or telephone lines increases even more. Removing a stump can be risky, too, as roots growing close to water or electrical pipes can cause serious damage as they are pulled up or moved.

2. Electrical and Plumbing Work

Not only can messing up electrical work in your home create much more serious issues, you also generally need a permit and inspection to do this kind of work. Bigger plumbing problems and projects like installing a shower or sink should only be attempted by professionals. Incorrect installation or repair can lead to damaged pipes or waterlogged walls, along with other expensive issues.

3. Pool Repair and Installation

Both above and in-ground pools are difficult to repair without special tools and products. While simple projects around the pool are fine to do yourself, repairing cracks in the foundation or remodeling your pool is something that a professional is better equipped for.

The same goes for pool installation. You may think you are saving a lot of money by installing a swimming pool by yourself, but as PoolProducts.com cautions, installing a vinyl or fiberglass pool is a very big job. A task of this magnitude requires some serious homework before you decide to it take on, plus you may have to rent or buy large construction equipment, or even hire help to do the job right. Measurements must be precise, permits and inspections must be passed, and you must consider how the ground and concrete will settle and shift over time.

4. Removing a Wall

It may seem like a good idea to knock down a small wall in your house to open up the kitchen or create a bigger living room, but it isn’t as easy as it may appear. If the wall is load-bearing or supports any part of the house, or if it holds electrical or plumbing, you could cause serious damage to the structure of your home.

Popular Mechanics recommends consulting with a building engineer before attempting to knock down a wall. A building engineer can give you advice on the best way to remove the wall and let you know if any special permits are needed.

5. Flooring

Homeowners might want to call a professional if they plan to rip up carpet or lay new tile. You might not know what’s underneath your carpet and if the subfloor is damaged or rotten, you could wind up spending thousands in extra costs just to repair it. Laying tile is another delicate and very precise project—if the tiles aren’t cut perfectly, laid completely straight, or if one of them cracks, you may have to start all over. If you’re not experienced in flooring, it may be best to leave it to a flooring expert.

courtesy of:  http://realtytimes.com/consumeradvice/homeownersadvice1/item/32023-20141218-5-home-projects-only-a-professional-should-do

Existing Home Sales to Finish 2015 at Record Level

Existing home sales are expected to finish the year at their highest level since 2006, the National Association of Realtors’ economic forecast forum revealed at its 2015 Legislative Meetings & Trade Expo.

However, accelerating price growth and rising mortgage rates have the potential to change this.

Both Lawrence Yun, chief economist of NAR, and Robert Dietz, vice president of tax and market analysis at the National Association of Home Builders, shared their perspective on what’s going on in the housing market.

In the most recent existing-homes sales report, sales surged to their highest annual rate in 18 months, showing a promising beginning to the spring homebuying season.

read more —>  http://www.housingwire.com/articles/33912

How to Choose the Right Bathroom Sink

CLICK LINK OR PIC BELOW FOR DETAILS!

How to Choose the Right Bathroom Sink

courtesy of:  http://www.houzz.com/ideabooks/48175580/list/how-to-choose-the-right-bathroom-sink w=620

Small Home Upgrades Offer Big Returns

A recent release by the Appraisal Institute advises homeowners to choose upgrades instead of major remodeling projects to see the greatest potential return on investment.

“In general, simpler, less expensive projects have the best cost-to-value ratio,” says Appraisal Institute President M. Lance Coyle, MAI, SRA. “Homeowners should invest in projects that are most likely to preserve the value of their homes.”

According to Remodeling magazine’s most recent Cost vs. Value report, only five projects saw their cost-to-value ratios rise over the past year: roofing replacement, garage door replacement, 20-gauge steel entry door replacement, vinyl siding replacement and fiberglass entry door replacement. Among projects with the biggest declines were two-story additions, composite deck additions, master suite and kitchen remodels.

Other minor projects with potential major payoffs, says the Cost vs. Value report, are mid-range and upscale garage door replacements, manufactured stone veneer, mid-range window replacements and minor kitchen remodels.

“It’s possible that consumers won’t be able to recoup the cost of the upgrade when the home is sold, so it’s important to meet, not exceed, what’s standard for the neighborhood, and to also consider expected length of time in the property,” Coyle says.

Making routine home repairs is essential to maintaining a home’s value. A house that has been well-maintained will likely have a higher value than a similar house that is in disrepair, Coyle says. For example, replacing worn out trim boards may in certain situations not add any additional value to the home. However, the home’s value is preserved when compared to similar homes in the area without worn-out trim boards.

For an unbiased analysis of what their home would be worth both before and after an improvement project, a homeowner can work with a qualified real estate appraiser to conduct a feasibility study. During this study, the appraiser will analyze the homeowner’s property, weigh the cost of rehabilitation and provide an estimate of the property’s value before and after the improvement.

Some green and energy-efficient renovations – such as adding Energy Star appliances and extra insulation – are likely to pay the homeowner back in lowered utility bills relatively quickly. Lower utility costs are also a draw for potential homebuyers. Use that to your client’s advantage.

Overall, making minor home improvements increases the likelihood that home sellers will get the best return on their investment. Research similar houses in the area to decide which upgrades will best benefit their home’s value.

courtesy of:  http://blog.realestatebook.com/2015/05/14/minor-home-improvements-for-the-best-return/

The 3 Most Important Responsibilities Home Buyers Have

The American dream of owning a home is something everyone should have if they want it. You should be able to live where you want and enjoy the features of your environment that help you relax, entertain, play, and do more of the things you enjoy without the restrictions imposed by a landlord.

You can own a pet, build a treehouse, paint the walls your favorite color, and play music and videos as loud as you like without disturbing your neighbors. That’s the essence of the dream — independence.

For most first-time buyers, it’s better to accept that for dreams to come true, you have to do the groundwork. Yes, you will be far more independent than you would as a renter, but you will still have some very real responsibilities to make homeownership work. Here are the top three responsibilities you’ll have as a homeowner.

Financial Responsibilities

You owe your lender timely payments. Paying on time helps you build your credit. With great credit, you can take on more projects such as remodeling, or you’ll be able to buy furniture, cars or other things you want with lower interest on your payments.

Your debts should never be more than 40 percent of your income. If you get overextended, you’ll have problems meeting the minimum payments. Instead, limit the amount of credit you actively use and pay off balances every month. Don’t add new charges until you’ve paid off your balances.

You should also be in a position to save money, which you can do several ways. You can put money in your 401K, you can pay extra on your principal every month, or you can buy bonds or invest in the stock market, according to your tolerance for risk. You can put money in a safety deposit box or under the mattress as long as you are saving rather than overspending.

Common wisdom is to build six months of cash so you can continue to make your house payments if you lose your job or become ill. You need savings for emergencies, large expenses such as student debt, and retirement.

Neighborhood Responsibilities

When you buy a home, your household becomes part of the neighborhood. You can influence whether or not the neighborhood prospers or declines simply by the way you treat your neighbors and your home. It’s up to you to uphold or to set a higher standard for the neighborhood by keeping your lawn and trees trimmed, your home freshly painted, and toys and trash picked up from the entry.

This is the way you can protect your investment and those of your neighbors. It’s one of the reasons many neighborhoods have homeowners associations — to protect values by standardizing safety and maintenance for the community.

To get the benefits the HOA provides such as higher and consistent home values, you have to pay your dues and obey the covenants. You can volunteer to help or you’ll have to abide by the decisions others make. Before you buy a home in a HOA-managed community, read the covenants so you’ll know what you’re getting into. If not being able to use certain exterior paint colors bothers you, then don’t buy the home. Find something else.

Household Responsibilities

You owe yourself and the other members of your household the best life you can possibly provide. Buying a new home is a great time to step up your lifestyle and enjoy what your new home and the community has to offer.

Your home should help you be who you want to be. That’s the purpose of shaping your environment. You have control over whether you entertain like Martha Stewart, paint in your studio like the next Picasso, or grow a lawn as sleek as the Augusta fairways.

Choose a home that meets as many needs as you can within your means. Separate bedrooms for the kids may be doable, but you may have to compromise on a Jack and Jill shared bath. This is an excellent opportunity to teach your older children about prioritizing, delayed gratification, give and take and winning and losing gracefully.

Make sure the area you select offers amenities that your building doesn’t have. If you don’t have a yard for the kids and the dog, make sure there’s a park and playground nearby.

Think about how far and how long it will take you to get to shopping, work, and other friends and family. Think about how a long commute will affect your family. Would you rather be sitting in traffic or attending your son’s ball game?

You and your spouse may want the prestige of living in a certain area, but if your house-payment is too high, you’ll introduce problems into the relationship you don’t need. It’s about making choices that make sense. Better to buy a smaller home in a great neighborhood and keep the arguing down.

Buy the best home you can that’s within your means and it will see you through years of comfort.

courtesy of:  http://realtytimes.com/consumeradvice/

The Top 10 Features for New Homes

The outdoor kitchen and two-story foyers are starting to lose favor among new home shoppers, while energy efficiency and bigger closets are gaining in popularity, according to a new survey from the National Association of Home Builders. NAHB asked builders to rank home features from 1 to 5 on how likely they were to include them this year in single-family homes they build this year.

An increased interest in energy efficiency is decreasing interest in two-story foyers and rooms, Rose Quint, NAHB’s assistant vice president for survey research, told MarketWatch. “Consumers consider those spaces to be energy inefficient,” she says.

Here are some of the least likely features that builders say they will include in new homes this year:

1. Outdoor kitchen (cooking, refrigeration, and sink)
2. Laminate countertops in kitchen
3. Outdoor fireplace
4. Sunroom
5. Two-story family room
6. Media room
7. Two-story foyer
8. Walking/jogging trails in community
9. Whirlpool in master bathroom
10. Carpeting as flooring on main level

On the other hand, these home features, builders say, are most likely to be included in a new home this year:

1. Walk-in closet in master bedroom
2. Laundry room
3. Low-e windows
4. Guest room (kitchen-family-room-living room)
5. Energy-star rated appliances
6. 9-foot ceiling or more on first floor
7. Energy-star rated windows
8. Programmable thermostat
9. Two-car garage
10. Granite countertop in kitchen

courtesy of:  http://realtormag.realtor.org/daily-news/

MORE THAN 1 MILLION HOMEOWNERS REGAINED EQUITY IN 2014

Some 1.2 million borrowers regained equity in 2014, bringing the total number of mortgaged residential properties with equity at the end of Q4 2014 to approximately 44.5 million or 89% of all mortgaged properties, according to CoreLogic (CLGX).

Nationwide, borrower equity increased year over year by $656 billion in 4Q14. The CoreLogic analysis also indicates approximately 172,000 U.S. homes slipped into negative equity in the fourth quarter of 2014 from the third quarter 2014, increasing the total number of mortgaged residential properties with negative equity to 5.4 million, or 10.8% of all mortgaged properties …

… Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

… read more —>  http://www.housingwire.com/articles/33257

Fannie Mae Launches HomePath Ready Buyer Education Program for First-Time Homebuyers

Up to Three Percent Closing Cost Assistance Available Upon Completion of Online Education Course

Fannie Mae (FNMA/OTC) announced the HomePath^®Ready Buyer^™ program, qualifying first-time homebuyersto receive up to three percent of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course.  On a $150,000 home, this could result in up to $4,500 in savings for the buyer.  In addition, Fannie Mae will reimburse the $75 cost of the homebuyer education course at the time of closing.

“Purchasing your first home can be an overwhelming process,” said Jay Ryan, Vice President of REO Sales, Fannie Mae. “We developed the HomePath Ready Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process. Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership.”

Fannie Mae has partnered with Framework^®, a nonprofit created by the Housing Partnership Network and the Minnesota Homeownership Center, to offer homebuyers a homeownership education course that covers both the complexities of home buying and the responsibilities of owning a home. The course contains nine, thirty-minute sessions and is entirely online.

To be eligible for the closing cost assistance and the reimbursement of the training cost:

• Buyers must complete the full online HomePath Ready Buyer training course on www.homepath.com and receive the Certificate of Completion.
• The buyer must be a first-time homebuyer (did not own a property in the past three years) with plans to reside in the property as their primary residence. Auction, pool and investor sales are not eligible.
• The request for closing cost assistance must be made at the initial offer, submitted on or after April 14, 2015.

Those interested in becoming a homeowner are encouraged to take the course as soon as possible. The course must be completed before submitting an offer to qualify. For more information on the course and to sign up, visit https://www.homepath.com/ready_buyer.html.

courtesy of:  http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6236.html

New Homes Increasingly Offer Efficiency, Sustainable Features

During New Homes Month in April, the National Association of Home Builders (NAHB) is showing how new homes increasingly offer the energy-efficient features home buyers seek. Surveys indicate that efficiency is among the most-wanted features of home buyers and that builders are responding to this demand.

“Our builder members are telling us that more and more buyers are looking at new homes for their efficiency in design and functionality,” said NAHB chairman Tom Woods, a home builder from Blue Springs, Mo. “Whether it’s improved insulation or sustainable building materials, today’s new homes can reach higher energy performance and greater durability than was possible even 20 years ago. And programs like the National Green Building Standard help consumers achieve their efficiency needs.”

As more Millennials enter the housing market, they are sharing what features are most likely to affect their home buying decisions. An NAHB survey revealed that Energy Star certifications are a priority for these home buyers. In fact, 84 percent of this group is willing to pay 2-3 percent more for an energy-efficient home as long as they can see a return on their power bills.

NAHB also surveyed home builders about the features they are most likely to include in new homes they build this year. Four of the top 10 features focused on energy efficiency: low-E windows, Energy Star-rated appliances and windows and programmable thermostats.

Some home buyers are looking for even more sustainable features, prompting an increasing number of single-family and multifamily builders to deliver green homes. Green builders incorporate energy, water and resource efficiency; improved indoor environmental quality and sustainable and locally sourced products into their projects.

An NAHB survey of single-family home builders revealed that nearly 25 percent of builders installed alternative energy-producing equipment in new construction. This includes geothermal heat pumps and photovoltaic solar panels. The current 30-percent tax credit available for homeowners who install this equipment is set to expire at the end of 2016, which makes this a good time for interested buyers to consider purchases.

Home buyers can access home buying and home building information and resources at nahb.org/forconsumers.

courtesy of:  http://www.nahb.org/news_details.aspx?sectionID=122&newsID=17211

CFPB Launches “Know Before You Owe” Toolkit

The Consumer Financial Protection Bureau (CFPB) released a new toolkit that guides consumers through the process of shopping for a mortgage and buying a house. Developed as part of the CFPB’s “Know Before You Owe” mortgage initiative, the toolkit will help consumers take full advantage of the new Loan Estimate and Closing Disclosure forms that lenders are required to begin providing in August.

The toolkit provides a step-by-step guide to help consumers understand the nature and costs of real estate settlement services, define what affordable means to them, and find their best mortgage. The toolkit features interactive worksheets and checklists, conversation starters for discussions between consumers and lenders, and research tips to help consumers seek out and find important information.

The toolkit is designed to replace an existing booklet that creditors currently must provide to mortgage applicants, which was initially developed by HUD. The updated toolkit is designed to be used in connection with the new Loan Estimate and Closing Disclosure forms that will be effective on August 1, 2015. Creditors must provide the toolkit to mortgage applicants as a part of the application process, and other industry participants, including real estate professionals, are encouraged to provide it to potential homebuyers.
Electronic version of the toolkit

courtesy of:  CA Association of Realtors