5 Home Remodeling Trends for the New Year
Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul.
Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:
* Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
* Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
* Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
* Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
* Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.
Source: Orlando Sentinel, Jean Patteson (12/26/2009) and Kansas City Star, Stacy Downs (12/27/2009)
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4 out of 10 Recent Buyers Used FHA Loans
According to the most recent REALTORS® Confidence Index, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. REALTORS® who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.
“FHA helps provide affordable mortgage financing to home owners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,” said NAR President Vicki Cox Golder. “These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.”
Distressed Sales, HVCC Concerns
The RCI results also indicated that distressed sales increased to 33 percent of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers’ perceptions of other homes for sale. REALTORS® report that many buyers have pricing expectations that treat every property as if it were in foreclosure.
In addition, REALTORS® expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.
“As the first, best source for real estate information, REALTORS® have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today’s real estate market,” Golder said. “We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.”
—NAR
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Why Rent When Buying is Cheaper?
The foreclosure crisis has knocked down prices so much in some parts of the country that it’s cheaper or only slightly more expensive to own than it is to rent.
BusinessWeek, with help from research firm Reis, calculated ownership costs assuming a fixed-rate, 30-year mortgage for 100 percent of the purchase price with no down payment. [...]
Ten New Tax Breaks for Homeowners
Congress’ inclusion of home energy incentives in the $787 billion stimulus plan it passed in February has a steady stream of customers heading to Manhattan’s Green Depot, a nationwide chain that carries environmentally friendly and sustainable housewares such as LED light bulbs and cork flooring. Most popular? Solar products, says Brian Tereza, the store’s general manager.
That could be because as part of the plan, buyers of solar water systems are eligible for a 30% tax credit for the initial purchase and installation cost. That’s good news; systems often run between $6,000 and $10,000. The credit is available through 2016, a sizable window to cash in on the benefits of lower-cost energy, and is available to those who use the solar system to heat their home’s water, not that of hot tubs or pools. Full story.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Ten New Tax Breaks for Homeowners.
Congress’ inclusion of home energy incentives in the $787 billion stimulus plan it passed in February has a steady stream of customers heading to Manhattan’s Green Depot, a nationwide chain that carries environmentally friendly and sustainable housewares such as LED light bulbs and cork flooring. Most popular? Solar products, says Brian Tereza, the store’s general [...]
Hard-Pressed Owners Cut Back on Lawns
Sales of fertilizer and insect and weed-control products fell 15 percent last year after topping out in 2007 at $13.6 billion, according to a survey from the National Gardening Association.
“When housing sales fell, lawn care was one of the first things to go,” said Allen James, president of Responsible Industry for a Sound Environment (RISE), an advocacy organization funded by the pesticide and fertilizer industry.
Bruce Butterfield, research director of the National Gardening Association, says mowing conservatively – maintaining grass at two or three inches – goes a long way toward keeping it healthy without spending a lot of money.
Source: The Wall Street Journal, Neal Templin (06/18/2009)
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5 Maintenance Issues Owners Shouldn’t Ignore
Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family’s health at risk.
The magazine identifies five crucial maintenance issues:
* Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.
* Inspect the roof: Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.
* Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.
* Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.
* Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.
Source: Consumer Reports (05/04/2009)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
When your mortgage application is rejected.
Don’t be surprised if your friendly lender, the one who invites you to sit down and apply for a mortgage, ushers you politely out the door empty-handed after you’ve chatted a bit.
The sudden chill isn’t personal. The Mortgage Bankers Association, or MBA, in Washington, D.C., estimates that about half of all mortgage applicants are now being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications suffered a 10 percentage-point drop, from 63 percent in the first half of 2007 to 53 percent in the first half of last year, according to mortgage data tracked semi-annually by the association. Since then, further tightening of credit standards means at least half of mortgage-seeking consumers can’t squeeze through to acceptance, says MBA spokeswoman Carolyn Kemp. Full Story.
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Scammers Target Troubled Borrowers.
Scam artists are proliferating, attempting to make money off troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan.
The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the home owners’ money – often more than $1,000 – and do nothing.
The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
* Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
* Don’t agree to pay a fee before you are provided with the promised service.
* Beware of people offering “guaranteed” results.
* Don’t sign blank forms or documents you haven’t read.
Source: The Wall Street Journal, James R. Hagerty (03/11/2009)
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Eight Insider Tips For Home Buyers
1. Be a Pre-Approved Buyer: A pre-approved buyer always has the advantage in an offer situation. Becoming pre-approved is very easy: you complete your loan application with a credit check prior to beginning your home search process. Pre-approval means that you have actually been approved for the purchase by a lender, which gives you the edge in home purchase negotiating.
2. Beat The Competition to The Best New Listings: The search process can be both fun and trying. You will notice that some homes sell very fast and others hang around for long periods of time. The best homes at the best prices sell fast. Keeping on top of this is essential. Connect with a professional Real Estate agent that knows the market and keeps you updated. More info.
How Much House Can You Afford?
Determining how much home you can afford, or what payment you feel comfortable with, can be a trying process. Calling lenders, looking at mortgage loan programs and interest rates can be confusing, to say the least. There is an easy way to get started, and give yourself an idea of where you stand.
The first step is to find out what mortgage interest rates are at the current time. You can typically do this with a couple of phone calls to lenders or some quick looking on the internet. Get your rates on conventional fixed rate loans. Now use this handy table to see what your payment would be at different price ranges and interest rates. Payments might be higher or lower than those shown in the chart depending on current interest rates.More info.
Zillow Report Shows Homeowners Facing Reality, Sort Of.
When it comes to real estate, more Americans are moving from denial to acceptance. Zillow.com, a Web site that provides housing-market information, says it found in a recent survey that 57% of participants believe their homes lost value during the past year. That was up from just 38% in a similar survey during last year’s second quarter.
Zillow estimates that values declined on 76% of all U.S. homes during 2008. Full Story
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First time buyers could receive a $7,500 tax credit if they purchase soon.
NEW YORK (CNNMoney.com) — If you’re thinking of buying a home, there could be a big bonus for you in the economic stimulus bill that’s now before Congress.
Among its many provisions is a $7,500 tax credit for first time home buyers. The House passed the $819 billion stimulus plan, including this tax credit, in a vote late Wednesday. The Senate may vote on its version of the bill some time next week. Full Story.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Fed moves to help distressed homeowners.
WASHINGTON (AP) — With home foreclosures spiking, the Federal Reserve is taking steps to try to keep some distressed borrowers in their homes.
Under the program, the Fed has a number of options to provide relief, including lowering the amount the homeowner owes on the mortgage, reducing the interest rate or lengthening the term of the loan. Full story
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Who needs flood insurance?
CNNMoney: Protect your home from a flood
Flooding isn’t just a problem in the Midwest. In fact, it’s one of the most common hazards in the United States. Here are some tips on how you can protect your home from a flood.
Beating old man winter!
CNNMoney: Keeping your home warm and cozy
Heating your home this winter is going to cost you a lot more according to Energy Information Administration. In fact, Americans will spend $977 to heat their homes this year, 10% more than last year. But insulating your home you can help keep shave those costs. Here’s the best way to do so.
Jack Frost
CNNMoney: Preparing your home for big freezes
From frozen oranges in California to deadly winter storms across the country, extreme weather has taken a very expensive toll. We tell you how to protect your most important assets from the wrath of Mother Nature.
Time away.
CNNMoney: Protecting your home while away
The Holidays were right around the corner, but before you take off for the holiday weekend, make sure your home is safe when you’re not there. Here are some guidelines to keep your home protected.
Now it’s here!?
CNNMoney: Protecting your home from the Big Freeze
Bitter cold and bone-chilling winds across the Northern Plains and the eastern United States have left many homeowners wondering how they can protect their homes – and their families – from the big freeze.
How much is too much?
CNNMoney: Insuring your home
The deadly tornados in the South are a stark reminder of how important it is that we have enough insurance on our homes. Here are some top tips on making sure our homes are covered.
