If you’re a first-time buyer who just nabbed your first place, you’re likely in one of the scarier places in the real estate transaction. After weeks or months of looking, your new home is becoming a reality.
But before you can pick out the paint colors and decide how you’ll redo the basement, the property needs to be inspected.
A property inspection
is one of the most important parts of the purchasing process, yet many
buyers don’t know what to expect from the various players involved.
Here’s a guide to the roles and responsibilities each of the players has
during a typical property inspection.
You, the buyer
You’re there to learn as much about the property as possible. But you should have already done your homework before the big day.
Prior to the inspection, review the seller’s property disclosures and
know up front what questions you have for the inspector. Things may
have come up during the marketing or during a walk-through that
concerned you. Or maybe the seller disclosed that some unpermitted work
was done in the basement years ago. Before you release your inspection
contingency, know exactly what you’re getting into and that there aren’t
any surprises down the road.
Block out a few hours on the day of the inspection, depending on the
size of the home. Nearly everyone from the transaction will be present,
and these few hours can be critical. Most inspections go smoothly, but
some can be the beginning of tough negotiations.
The buyer’s agent
Your agent
should be standing by your side to walk you through the inspection.
Good agents have been through dozens of inspections and know how they
work. They should have basic knowledge of what to look for. Most
importantly, they know what’s important and what matters in the big
picture. If you’re getting a really good price on the home, your agent
would likely advise you not to bother the seller for small fixes. If
you’re paying top dollar and discover serious flaws, your agent can
guide you on how to best proceed after the inspection.
The listing agent
For many reasons, the seller won’t be present during the inspection. But the seller’s listing agent will be front and center as the eyes and ears of the property inspection.
By this point, the listing agent should be familiar with the property
and is there to address anything that comes up. For the seller and the
listing agent, the inspection is one of the last hurdles to get through
and a big unknown. Issues, questions or concerns could arise during the
inspection, which could kill the sale or affect the property’s value.
That’s why many agents advise sellers to get a property inspection
before going on the market, to prevent any last-minute unknowns or red
flags.
Sometimes, it seems as though the listing agent is there to “defend”
the property against the buyer, her agent and their chosen inspector.
Some feel the inspection is a “three against one” situation. It
shouldn’t be.
Though the listing agent is there to be an advocate for the seller,
everyone should come with the same goal in mind: to facilitate a clean
sales transaction.
The inspector
As the buyer, you hire the property inspector, who should be licensed
by the state. You sign an agreement with and pay the inspector. Most
buyers get a referral for an inspector from their real estate agent.
The inspector is not a contractor, though some inspectors were
contractors in their previous careers. While they may be able to shed
light on what you can or can’t do to a property and its potential costs,
their main purpose is to inspect the property, its systems and the
overall state of the home.
A good inspector will remain impartial and not be an alarmist, though
they will point out things to be addressed. The inspector isn’t a part
of the transaction and shouldn’t get into the nitty-gritty of your deal,
nor would they want to.
The inspector should look around, make notes and provide you with a
detailed report as well as some feedback on future maintenance. Be sure
to walk through the property with the inspector. Whenever possible, go
where the inspector goes. Get on the roof, go into the basement, venture
into the crawlspace. It will be helpful for the inspector to point
things out to you in real-time and demonstrate where the systems are and
how they work. Also, some things are better understood in person than
read about in a report later.
Your Uncle Bob
Finally, it’s important to understand why having Uncle Bob on hand
during the inspection isn’t necessarily a good idea. While it may seem
logical to bring a relative or close friend who is a contractor, be
mindful that these people aren’t licensed property inspectors.
Sometimes, the most well-intended people can end up causing harmful
consequences. Uncle Bob may feel it’s important to point out as many
negative things as possible, just to seem helpful. He’s far from
impartial, however, and you run the risk of raising red flags when they
don’t need to be.
Time for a huddle
After the inspection, you and your agent will likely huddle to talk
about what went on and to strategize next steps. Hopefully, the
inspection was flawless and you are one step closer to picking out your
new paint colors.
Or some additional negotiations may be needed after the inspection.
Either way, it helps to know what to expect going in and to be prepared for anything.
Thursday, December 27, 2012
Tuesday, December 18, 2012
What the "Fiscal Cliff" Means for Real Estate
The “fiscal cliff” has quickly become a commonly used term, but
exactly what it means isn’t all that clear, especially for real estate.
At it’s most basic level, it refers to sweeping tax cuts enacted a
decade ago that will expire at year’s end, so tax rates will
automatically rise to where they were before, while at the same time
automatic spending cuts—the sequestration enacted when the government’s
borrowing limit was raised a year ago–will take effect. Thus, the
economy faces a two-pronged hit: taxes going up while federal fiscal
spending goes down.
If Congress does nothing, that double hit would mean a negative economic impact of about $650 billion, enough to shrink the economy by 4 percent and push the country back into recession, says NAR Chief Economist Lawrence Yun.
For real estate, that has the potential to derail the recovery that’s been slowly taking hold. Foreclosures would rise, home values would drop, hurting households but also hurting FHA, which could get hit with another wave of bad loans. That could put FHA into financial trouble.
Against this background, the federal government will be looking at a lot of options for averting the cliff while also lowering the federal budget deficit for the long-term. That puts the mortgage interest deduction in the spotlight. But is it a good idea to make changes to that tax provision?
Without a doubt, changing the rules of the game on MID now would mean a tremendous hit on real estate markets and household finances, and it could deal a blow to the broader economy, says Yun.
He and NAR economist Danielle Hale look at the different pieces in play under the fiscal cliff debate and also the economic impact of changing MID in the 9-minute video above. The information is intended to be helpful as you try to put the fiscal cliff conversation into perspective.
http://speakingofrealestate.blogs.realtor.org/2012/12/11/fiscal-cliff-whats-at-stake-for-real-estate/
If Congress does nothing, that double hit would mean a negative economic impact of about $650 billion, enough to shrink the economy by 4 percent and push the country back into recession, says NAR Chief Economist Lawrence Yun.
For real estate, that has the potential to derail the recovery that’s been slowly taking hold. Foreclosures would rise, home values would drop, hurting households but also hurting FHA, which could get hit with another wave of bad loans. That could put FHA into financial trouble.
Against this background, the federal government will be looking at a lot of options for averting the cliff while also lowering the federal budget deficit for the long-term. That puts the mortgage interest deduction in the spotlight. But is it a good idea to make changes to that tax provision?
Without a doubt, changing the rules of the game on MID now would mean a tremendous hit on real estate markets and household finances, and it could deal a blow to the broader economy, says Yun.
He and NAR economist Danielle Hale look at the different pieces in play under the fiscal cliff debate and also the economic impact of changing MID in the 9-minute video above. The information is intended to be helpful as you try to put the fiscal cliff conversation into perspective.
http://speakingofrealestate.blogs.realtor.org/2012/12/11/fiscal-cliff-whats-at-stake-for-real-estate/
Tuesday, December 11, 2012
2013: Home Prices Set to Skyrocket!
Don’t be surprised if home prices begin to appreciate rapidly. Why? The ratio of homeownership costs to income is at an all-time low, and people are not going to continue renting homes at a monthly cost that exceeds a mortgage payment.
In fact, home prices need to rise 38%, or mortgage rates need to rise to 7.9%, for us to get back to the normal ratio of homeownership costs to income. It doesn’t matter how you define homeownership costs. As long as you use a consistent definition, homeownership is cheap!
Assuming our leaders in DC come to some sort of agreement that keeps the economy growing and interest rates low, which seems like the most reasonable assumption, here is what will happen:
The Big Picture is:
Don’t be surprised if home prices begin to appreciate rapidly. Why? The ratio of homeownership costs to income is at an all-time low, and people are not going to continue renting homes at a monthly cost that exceeds a mortgage payment.
In fact, home prices need to rise 38%, or mortgage rates need to rise to 7.9%, for us to get back to the normal ratio of homeownership costs to income. It doesn’t matter how you define homeownership costs. As long as you use a consistent definition, homeownership is cheap!
Assuming our leaders in DC come to some sort of agreement that keeps the economy growing and interest rates low, which seems like the most reasonable assumption, here is what will happen:
- Investors: Investors and, yes, even flippers will continue to grow in numbers as they realize housing is the best risk-adjusted return on their money.
- Boomerang buyers: Foreclosed homeowners, who are currently renting homes, will come back in droves. In Phoenix, they are paying $1,300 in rent for a home whose mortgage payment would be $1,000. That situation is not sustainable. The Federal Housing Administration and Department of Veterans Affairs have low down payment programs with insurance premiums that push rates near 5.0%. Those payments are still very affordable.
- Entry-level buyers: First-time homeowners, who have been sitting on the sidelines waiting for a sign of the bottom, will hear about price increases in their desired neighborhood and rush to become homeowners.
- Move-down buyers: Empty nesters and retirees, who have plenty of equity in their existing home, will buy a home that is more suitable to their current lifestyle, which may or may not include adult children as well as their aging parents.
- Moveup buyers: The price appreciation that occurred in the last year has already lifted 1 million underwater homeowners above water, and future price appreciation will lift even more.
The Big Picture is:
- Housing is cheap
- People prefer to own
- Get ready for a surge in home prices!
Tuesday, November 27, 2012
It may be time to buy the home you have always dreamt about.
Luxury Housing Market Beginning to Surge
by The KCM Crew on November 27, 2012 · 0 comments
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The National Association of Realtors (NAR) in their last Existing Home Sales Report revealed that sales of homes over $1 million dollars in the country increased 44.1% over the same period last year. One of the reasons for this increase is that financing in the jumbo mortgage market is becoming more readily available.
In an article last week, The Wall Street Journal reported that sales of upper-end homes are increasing by a larger percentage than the rest of the housing market. They came to this conclusion by looking at mortgages in this sector. Here is the breakdown:
- Home sales using a jumbo mortgage* had year-over-year growth of 7.9% through September, compared with 2.7% for non-jumbo sales
- Homes sold in major metro areas with a loan of $1 million or more were up almost 28% through September compared with the same period last year. Similar sales with loans of less than $1 million rose 8.5%.
*Defined as $417,000 and up in most places ($625,500 and up in high-cost areas).
http://www.kcmblog.com/2012/11/27/luxury-housing-market-beginning-to-surge/
Friday, November 23, 2012
Save $2000/Year With A Little Known Mortgage Credit
In certain areas of the United States, first-time home buyers can receive a tax credit designed to lessen the burden of a monthly mortgage. While the specifics can change from state to state, and even county to county, first-time homeowners may be able to participate in a Mortgage Credit Certificate program.
An MCC, however, can be complicated. To help digest the certificate program, Movoto Real Estate has broken down its pieces. With our state-by-state guide, you’ll be able to answer:
Purchasing a new home can be a daunting task. Worse, the idea of homeownership might seem out of reach to some families. Fortunately, there are means to make homeownership more reasonable, thus giving those with modest incomes a chance at the American Dream.
Let’s break this down with a common example:
A household with a loan amount of $100,000 at an interest rate of 6 percent for 30 years pays about $6,000 of interest in the first year. With a 30 percent MCC, the household would receive a direct federal income tax credit of $1,800 ($6,000 x 30 percent). This would translate into $150 of extra income each month.
MCCs are available to:
Most states will have clearly defined information on whether the home you are looking to purchase is inside a target area. Rules that limit an MCC to first-time home buyers can be waived for home buyers looking to purchase in a target area.
A mortgage revenue bond loan is a loan where the cost of borrowing is partially subsidized by a mortgage revenue bond. These types of bonds, which can vary greatly, are designed to lower the cost of homeownership. In other words, MRBs help low- and middle-income first-time home buyers by offering long-term mortgages at below-market rates.
The benefit of an MRB loan is a low interest rate that can result in a smaller monthly mortgage payment. Some have pointed out that a smaller mortgage payment may increase a home buyer’s ability to qualify for a mortgage they might not have received otherwise.
In order to qualify, prospective home buyers must earn below stated threshold levels for annual income, and must financially qualify for a mortgage from a conventional lender.
Many mortgages that were funded by MRBs first originated through the Federal Housing Administration, Freddie Mac, and Fannie Mae.
MRB funding is not available throughout the entire country. The process is run on a state-by-state basis. In addition, a state program might target specific areas or neighborhoods based on the state’s demographics.
Furthermore, eligibility differs by program. Some common requirements include:
First-Time Home Buyer Benefits by State
First Time Home Buyer Incentives
What is a Mortgage Credit Certificate?
At its core, an MCC—as it’s commonly known—offers an income tax credit to first-time home buyers. Theoretically this frees up a household’s income to make mortgage payments. An MCC can save you up to $2,000 a year for the lifetime of your loan.An MCC, however, can be complicated. To help digest the certificate program, Movoto Real Estate has broken down its pieces. With our state-by-state guide, you’ll be able to answer:
- What is a tax credit?
- How does a Mortgage Credit Certificate work?
- Who is eligible?
Purchasing a new home can be a daunting task. Worse, the idea of homeownership might seem out of reach to some families. Fortunately, there are means to make homeownership more reasonable, thus giving those with modest incomes a chance at the American Dream.
What is a Tax Credit?
Understanding what a tax credit is goes a long way to demystifying an MCC. In layman’s terms, a tax credit is a sum of money that is deducted from the total amount you would pay to the government. A tax credit reduces how much you pay on your taxes. This means that if you have a $1,000 tax credit, you would pay $1,000 less on your taxes.How Does A Mortgage Credit Certificate Work?
As we just explained, the MCC reduces your federal income tax liability. With an MCC, first-time home buyers save money each month.Let’s break this down with a common example:
A household with a loan amount of $100,000 at an interest rate of 6 percent for 30 years pays about $6,000 of interest in the first year. With a 30 percent MCC, the household would receive a direct federal income tax credit of $1,800 ($6,000 x 30 percent). This would translate into $150 of extra income each month.
Who is Eligible?
As with the rest of the MCC, eligibility is less than clear. There are, however, basic requirements. We recommend you contact your local state government or housing authority to learn all the specifics. Nevertheless, we can offer basic guidelines.MCCs are available to:
- First-time home buyers (Something of a misnomer, this means a person could not have owned a home within the previous three years.)
- Those who complete a normal loan application process with a participating lender
- Those who are purchasing a home as a main residence
- Home buyers whose property falls within a specified price range
- Home buyers who meet income guidelines
Target Areas versus Non-Target Areas
Areas that are “targeted” by the federal government are locations where 70 percent of families who live there earn an income that is 80 percent or less than the statewide median income. Agencies utilize Census Tracts to determine whether an area is targeted. (If you do not know your Census Tract, and we are betting you don’t, you can find it here.)Most states will have clearly defined information on whether the home you are looking to purchase is inside a target area. Rules that limit an MCC to first-time home buyers can be waived for home buyers looking to purchase in a target area.
What is a Mortgage Revenue Bond Loan?
Not all states have an MCC program. Some areas instead utilize Mortgage Revenue Bond Loans to help first-time home buyers.A mortgage revenue bond loan is a loan where the cost of borrowing is partially subsidized by a mortgage revenue bond. These types of bonds, which can vary greatly, are designed to lower the cost of homeownership. In other words, MRBs help low- and middle-income first-time home buyers by offering long-term mortgages at below-market rates.
The benefit of an MRB loan is a low interest rate that can result in a smaller monthly mortgage payment. Some have pointed out that a smaller mortgage payment may increase a home buyer’s ability to qualify for a mortgage they might not have received otherwise.
In order to qualify, prospective home buyers must earn below stated threshold levels for annual income, and must financially qualify for a mortgage from a conventional lender.
Many mortgages that were funded by MRBs first originated through the Federal Housing Administration, Freddie Mac, and Fannie Mae.
MRB funding is not available throughout the entire country. The process is run on a state-by-state basis. In addition, a state program might target specific areas or neighborhoods based on the state’s demographics.
Furthermore, eligibility differs by program. Some common requirements include:
- The home must be the primary residence
- The prospective buyer must have not owned a home in the past three years
Tuesday, November 13, 2012
If A Starbucks Opens In A New Neighborhood, It's Time To Buy A Home There
By Meredith Galante, businessinsider.com
Read more: http://www.businessinsider.com/starbucks-signals-a-rising-neighborhood-2012-11#ixzz2C87rSUeo
"Wake up and smell the coffee," writes Michael Corbett, Trulia's real estate expert and and host of NBC's "Extra's Mansions & Millionaires!" in his book Before you Buy! The Homebuyer's Handbook for Today's Market.
He's talking about big chains such as Starbucks and Whole Foods. If you see them opening in a new neighborhood, it's a sign that the neighborhood is up-and-coming, and therefore a smart real estate bet.
In his book he writes:
One of the best ways to stretch your
buying dollar is to find a neighborhood that is in transition. Called
fringe or transitional neighborhoods, they are typically close to major
metropolitan areas and were once neglected and less desirable. Is there a
trendy restaurant where a tattoo parlor used to be? These neighborhoods
are now beginning to enjoy a new life and your goal is the find them.
...
Has a Starbucks just opened on the corner or maybe a Whole Foods Market?
These are all good signs that a neighborhood is on the upswing. You can
bet that big chains like Starbucks spend a lot of money and time
analyzing neighborhood potential before they open up a new store. So go
ahead, tap into their market research and be their neighbor.
Friday, October 26, 2012
Top 5 Questions That Plague Buyers Today
1. How do I boost my credit rating?
Financing is often the most confusing part of the buying process; it also happens to be the most important. At the basis of this process is the credit rating. You may know the importance of your credit rating, but are often at a loss for how to interpret or improve it.
First - find out your credit score. There are many free resources to get access to your personal FICO score, like freecreditscore.com orannualcreditreport.com. Once you have that in hand, then work to develop a plan for finding a mortgage broker or improving the score.
If you need to boost your score, start with the low-hanging fruit, such as closing out old accounts, and disputing anything on the report that looks suspicious. From there, we can help with more advanced strategies, such as paying off certain high-interest debts.
2. How much home can I afford?
Next to credit, the next most common worry of buyers is home price.
Buyers need to know how much home they can afford before they start looking seriously. If they don’t, both buyer and agent run the risk of wasting a ton of time.
To help answer this question you don’t need to be a mortgage expert. You can offer estimates on the spot if you have the right tools like the Trulia Mortgage iPhone App, which will not only give buyers a good idea of how much home they can afford, but also help connect them with respected lenders who can help them begin the mortgage process instantly.
3. What neighborhoods are best for me?
Once credit and price are squared away, the next thing that’ll be on your mind is one of the trickiest of them all: What neighborhood is best for me?
One great place to start is Trulia Local, which offers data on crime, schools, commute and other topics important to buyers. In addition, find out if there are neighborhood Facebook pages or online social groups in your area to give your buyers insight into what people who live in the areas actually think of it.
4. Is now really the best time to buy?
YES! Contact us today for data and information about the market conditions in your local area.
5. Which agent should I use?
The Fissori Real Estate Team!
You can visit our website at www.FissoriHomes.com to check out our bios, recommendations and testimonials.
These are our top 5 buyers worries and questions. What worries would you add to the list? What’s the biggest worry that you may have?
Friday, October 12, 2012
C.A.R. Predictions for 2013
California Home Sales Predicted to
Continue Gradual Climb in 2013
California’s housing market will
continue to recover in 2013, as home sales are forecast to increase for the
third consecutive year and the median price to rise for the second straight
year, according to C.A.R.’s “2013 California Housing Market Forecast,” released
Tuesday.
The C.A.R. forecast sees sales
gaining 1.3 percent next year to reach 530,000 units, up from the projected
2012 sales figure of 523,300 homes sold. Sales in 2012 will be up 5.1
percent from the 497,900 existing, single-family homes sold in 2011.
C.A.R.’s forecasts the average for
30-year fixed mortgage interest rates will edge up to 4 percent after six
consecutive years of declines, but will still remain historically low.
The statewide median home price is
forecast to increase a moderate 5.7 percent to $335,000 in 2013.
Following a decrease in 2011, the California median home price will climb
a projected 10.9 percent in 2012 to $317,000.
“The housing market momentum which
began earlier this year will continue into 2013,” said C.A.R. Vice President
and Chief Economist Leslie Appleton-Young. “Pent-up demand from
first-time buyers will compete with investors and all-cash offers on
lower-priced properties, while multiple offers and aggressive bidding will
continue to be the norm in mid- to upper-price range homes.”
“The actions of underwater
homeowners will play an important role in housing inventory next year, with
rising home prices inducing some to stay put and others to list and move
forward," she said.
Despite the overall outlook for the state, some regions are being hit
with low inventory:
“The market has improved moderately over the past year, and we expect
that to continue into 2013,” said C.A.R. President LeFrancis Arnold.
“Sales would be even higher if inventory were less constrained in REO-dominated
markets, particularly in the Central Valley and Inland Empire, where there is
an extreme shortage of available homes. Sales will be stronger in
higher-priced areas, where there are more equity properties and a somewhat
greater availability of homes for sale.”
Another study echoes the fact that some regions of the state aren’t
seeing any signs of improvement.
Fiserv, a real estate data company that recently evaluated 384 of the
largest housing markets, found that several Central Valley markets aren’t
showing signs of recovery because of high unemployment and foreclosure rates.
In fact, the top three markets are in California:
•
Merced. This Central Valley city experienced a 69.7 percent decrease
from the peak to the first quarter of 2012.
•
Modesto. A 64 percent decrease over the same time period.
•
Stockton. This city saw a 62.8 percent drop during the period.
Other markets that saw decreases more than 50 percent are
Vallejo-Fairfield, Bakersfield-Delano, and Riverside, San Bernardino, Ontario.
Michele Dawson is a freelance writer based in Phoenix, Arizona.
Friday, September 21, 2012
7 Steps For A Successful 1031 Tax Deferred Exchange
A 1031 exchange is a tax-deferred exchange which allows an owner of business or investment property to exchange that property for new property without incurring income tax on the gain.
The 1031 Exchange Process
Put your investment property on the market for sale with a Realtor that is familiar with the 1031 Exchange process. Prior to closing on the sale of the sold property:
Step 1: Consult with your tax advisor for a 1031 tax exchange
Step 2: The Agreement
Contact an 1031 exchange intermediary to reserve an account number to use on all the exchange documents. The owner of the property ("the Owner") should complete both an Exchange Agreement and a Qualified Exchange Trust Agreement.
Step 3: Assigning the Sold Property Contract
The Owner assigns rights but not obligations under the Sale Contract to a Qualified Intermediary and provides notice of the assignment to the Buyer. At the closing, title for the sold property is transferred directly from the Owner to the Buyer (known as direct deeding). A copy of the completed Assignment of sold property Contract and a copy of the Sale Contract should be sent to your intermediary.
Step 4: Net Proceeds
Net proceeds from the sale must be payable to the Qualified Intermediary. Payment may be in the form of a check payable to them or a wire transfer. It is important that the Owner never have actual or constructive receipt of the funds from the sale. Once proceeds are received by them, they are invested for the benefit of the Owner.
Within 45 days following the sale and transfer of the sold property:
Step 5: Identifying Replacement Property
The Owner completes the Identification of Replacement Property form. Replacement property must be specifically and unambiguously identified. For real estate, this could be a valid street address or a legal description. Identification requirements for personal property may vary depending on the item, but make, model and year are usually sufficient. Delivery of the Notice to the intermediary may be by hand, fax, mail, or over-night courier and must be postmarked by or received by 11:59 p.m. on the 45th day. Prior to midnight on the 45th day, the Identification may be amended or revoked, but after the 45th day, no changes in the Identification will be accepted.
Within 180 days following the sale and transfer of the sold property:
Step 6: Assigning the Replacement Property Contract
The Owner assigns rights but not obligations under the Purchase Contract to the Qualified Intermediary and provides notice of the assignment to the Seller. A copy of the completed Assignment of Replacement Property Contract and a copy of the Purchase Contract should be sent to the intermediary.
Step 7: Disbursements
Owner sends a Direction to Disburse Funds from the Exchange Account. Funds are made payable to the Seller of the Replacement Property or to the Seller̢۪s agent. At the closing, title to the replacement property is transferred directly from the Seller to the Owner (direct deeding).
You can always check out what the IRS says about 1031 Exchanges prior to entering into a 1031 Exchange.
Thursday, September 6, 2012
Top 10 Things to Know About Real Estate Today
10. Distressed Properties: Short Sales and Bank Foreclosures (REOs) are not for everyone: Hurdles to Overcome:
- “As is” property condition
- Increased paperwork & complexity
- Increased chance for multiple offers
- Bank REO process is long & arduous
- Buyer probably is not getting a “steal”
- Buyer must be patient
9. “Aging in Place”
Did you know?
- Half of older women age 75+ live alone.
- Persons reaching age 65 have an average life expectancy of an additional 18.1 years.
- The 85+ population is projected to increase from 4.6 million in 2002 to 9.6 million in 2030.
- Median # of years home owners are staying in their homes has increased from 8 to 10 yrs.
8. Today’s Agent Must be Tech Savvy
Every source was used less except one – the Realtor!
7. Down Payments of 5% or Less Have NOT Disappeared
- Both first-time and repeat buyers are putting less than 20% down, even though a down payment of 20% will typically provide the best financing terms.
- 68% of first-time buyers and 28% of repeat buyers had a down payment of 5% or less in 2011.
6. Yes, it’s Still the Economy
- Employment will remain a challenge over the next few years, which impacts the market by tempering GDP and holding back demand for home buying.
- To get back to 6% unemployment, 13.3 million jobs need to be added over the next 3 years. That’s 400,000 jobs/month.
5. Condition is the Key for Serious Buyers
- Homes in better condition sold for an average of 96% of list price compared to 92% of list price for homes in poorer condition.
- The most common updates are: Paint (44%), Floorings (25%), and Lighting Fixtures (20%)
4. Home Staging is Well Worth the Effort
- Staged Homes sell faster.
- Staged homes get higher offers.
- Staged houses look better in the MLS pictures, getting more potential buyers to actually come see the house in the first place.
- Staged houses have an edge over competing properties, and the staging can often sway the final decision.
3. It’s Been a Great Market for First-Time Home Buyers
2. Price it Right the First Time!
- For the 48% of sellers who set their listing price according to their agent’s interpretation of the market value of their house:
• Sold faster – 56 days compared to 105
• Sold for 6.7% higher list
• Experienced fewer price reductions (4 to 6 weeks between price reductions of between $5,000 and $15,000)
1. The End is in Sight – We Have “Hit Bottom”
- We have been in a Buyer’s Market for the last 6 years because: home prices have been low, mortgage rates are at an all-time low, and inventory has been high.
- Prices have stabilized (we’ve had our pricing correction), it doesn’t seem likely that interest rates can go any lower and we are reaching an inventory balance.
We are not fortune tellers, but we have been through enough up and down markets to recognize the signs of recovery…and we’re seeing a lot of them right now!
Saturday, September 1, 2012
40 Easy Ways To Go Greener At Home
There are many little things we can do in our homes to play a small part in reducing landfill waste, cleaning the air, and preserving the natural landscape. The thing we love most about practicing green alternatives in our homes is that nine times out of ten, they are the more frugal option. And we love to be frugal and help people save money! Being environmentally-friendly is just good economics - in our home and budget and with the earth.
Here are 40 Easy Ways to Go Greener ....
Here are 40 Easy Ways to Go Greener ....
1. Plant an herb garden. It’s good to have a reminder around of where our food originates, and this one is super easy.
2. Switch all your lightbulbs to CFLs (or at least switch a few).
4. Switch one appliance to an energy efficient model (look for the “energy star” label).
5. Stop using disposable bags. Order some reusable bags—one of our favorite can be found at Flip & Tumble. Or, make your own—they’re insanely easy.
6. Buy an inexpensive reusable water bottle, and stop buying plastic disposable bottles. Then watch The Story of Bottled Water, a short movie about the bottled water phenomena.
7. Wash laundry in cold water instead of hot.
8. Turn off lights when you leave the room.
9. Don’t turn on lights at all for as long as you can—open your curtains and enjoy natural light.
10. Drive the speed limit, and combine all your errands for the week in one trip.
11. Better yet, walk or ride a bike to your errands that are two miles or closer.
12. Support your local economy and shop at your farmer’s market.
13. Turn off your computer completely at night.
14. Research whether you can sign up for green power from your utility company.
15. Pay your bills online. Not only is it greener, it’s a sanity saver.
16. Put a stop to unsolicited mail — sign up to opt out of pre-screened credit card offers. While you’re at it, go ahead and make sure you’re on the “do not call” list, just to make your life more peaceful.
17. Reuse scrap paper. Print on two sides, or let your kids color on the back side of used paper.
18. Conduct a quick energy audit of your home.
19. Subscribe to good eco-friendly blogs. A couple of our favorites are Keeper of the Home, Kitchen Stewardship, Live Renewed, and of course, Simple Homemade.
20. Before buying anything new, first check your local Craigslist or Freecycle.
21. Support local restaurants that use food derived less than 100 miles away, and learn more about the benefits of eating locally.
22. Fix leaky faucets.
23. Make your own household cleaners. Here are quite a few recipes in this book.
25. Watch The Story of Stuff with your kids, and talk about the impact your household trash has on our landfills.
26. Learn with your kids about another country or culture, expanding your knowledge to other sides of the world.
28. Lower the temperature on your hot water heater.
29. Unplug unused chargers and appliances.
30. Repurpose something. It’s fun.
31. Collect rainwater, and use it to water your houseplants and garden.
32. Switch to cloth diapers – or at least do a combination with disposables. Even one cloth diaper per day means 365 fewer disposables in the landfill each year.
33. Switch to shade-grown coffee with the “Fair Trade” label.
34. Use a Diva Cup for your monthly cycles. At the risk of TMI, I’ve been using mine for more than five years now.
35. Use cloth instead of paper to clean your kitchen. Be frugal, and make these rags out of old towels and t-shirts.
36. Use cloth napkins daily instead of paper.
37. Read Animal, Vegetable, Miracle, and be utterly inspired.
38. Repurpose glass jars as leftover containers and bulk storage, especially in the kitchen.
39. Watch the myriad documentaries on Netflix about the food industry. Some of our favorites are Food Inc., Fresh, and What’s on Your Plate?.
40. Donate to—and shop at—thrift stores. You’ll be recycling perfectly usable items, you’ll be supporting your local economy, and you’ll be saving money.
Help from Tsh at Simple Living Media
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