What is Bungalow style?

Bungalow-

These narrow, rectangular one and one-half story houses originated in California during the 1880s as a reaction to the elaborate decoration of Victorian homes. The style then moved eastward to the Midwest in the early 20th century, where it remained popular until the Great Depression. Bungalows have low-pitched gabled or hipped roofs and small covered porches at the entry. The style became so popular that you could order a bungalow kit from Sears and Roebuck catalog. The name "bungalow" had its origins in India, where it indicated a small, thatched home.

-Realtor Magazine Online-

What is Art Deco?

Art Deco

The 1925 Paris Exhibition Internationale des Arts Decoratifs launched the Art Deco style, which echoed the Machine Age with geometric decorative elements and a vertically oriented design. This distinctly urban style was never widely used in residential buildings; it was more widespread in public and commercial buildings of the period.

Towers and other projections above the roofline enhance the vertical emphasis of this style, which was popularized by Hollywood movies of the 1930s. Flat roofs, metal window casements, and smooth stucco walls with rectangular cut-outs mark the exteriors of Art Deco homes. Facades are typically flush with zigzags and other stylized floral, geometric, and "sunrise" motifs. By 1940 the Art Deco style had evolved into "Art Moderne," which features curved corners, rectangular glass-block windows, and a boat-like appearance. Popularized in the United States by Finnish architect Eliel Saarinen, the style enjoyed a revival in the 1980s.


-Realtor Magazine Online-

NAR President on Mortgage Relief Bill

Statement on President Bush's Signing of Mortgage Forgiveness Debt Relief By NAR President Richard F. Gaylord


WASHINGTON, December 20, 2007 - “On behalf of the many individuals and families who would have been burdened by a tax after losing their home, the National Association of Realtors® thanks President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. Today the president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.

“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.

“Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Found on Realtor.org

New Home Construction. What are the costs?

How Much Will it Cost to Build Your New Home?
From Jackie Craven

Dreaming of building a new home, but worried about the expense? If you have detailed blueprints, your builder can give you a close estimate. But long before you draw up the final plans, it pays to do some "guesstimating." Knowing how much the project might cost will help you modify your plans to meet your budget. Here are tips from a building plans pro.

"Guesstimate" the Cost of Your New Home
Guest Feature by Ken Katuin

1. Contact Local Builders
Meet with builders who construct houses that are similar in size, quality, and features to the home you want. Builders will tell you how much per square foot they usually charge for home construction. They can also give you a ballpark idea of what your dream home might cost. However, it is important to know exactly what is included in the price. If you ask, some builders will provide you a list showing the materials they will use.

2. Count the Square Footage
Look at newly constructed homes that are similar in size, style, quality, and features to the home you want. Take the price of the home, deduct the price of the land, and divide that amount by the square footage of the home.

For example, if the home is selling for $230,000 and the land costs $30,000, then the construction cost is around $200,000. If the home is 2,000 square feet, then the cost per square foot is $100.

Use several new homes in your area to get an approximate square footage price. After you have calculated an average square footage cost, you can multiply that cost by the finished square footage of your house plan to get a ballpark estimate.

3. Expect Some Features to Cost More
The most expensive areas in a home are usually the bathrooms and the kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.

The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a furnace or kitchen) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage. This is because a two-story home will have a smaller roof and foundation. Plumbing and ventilation are more compact in two-story homes.

Small details in the design of your home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints. Here are important factors to consider:

Size of Home
When building a home, it's best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it's most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive.

Shape of Home
Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labor and materials needed to build a home. Dome shaped homes also make efficient use of materials and tend to cost less than other shapes.

Site Preparation
Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.

Cost Overruns
Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes, and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10% to cover unexpected costs.

Inflation and Market Conditions
Usually the cost of building a home increases around 3% to 6% per year. If it will be several years before you begin construction, remember to include inflation into the cost estimate for your home. When using other homes to compare prices, try to use homes that have been built within the last six months.
~ By Ken Katuin

Why use a GRI?

Why Choose a REALTOR® With a GRI designation?

Buying property is a complex and stressful task. In fact, it's often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.

New technology, laws, procedures and the increasing sophistication of buyers and sellers require real estate practitioners to perform at an ever-increasing level of professionalism.

So it's more important than ever that you work with an agent who has a keen understanding of the real estate business. The GRI program has helped the best and the brightest in the industry achieve that level of understanding.

GRIs are:

Nationally recognized as top performers in the real estate industry


Professionally trained


Knowledgeable


Dedicated to bringing you quality service
A GRI can make a difference

When you see the letters "GRI" after an agent's name, you can count on receiving the knowledge and guidance you need to make your transaction go smoothly. In short, you can count on getting the best service available from a real estate professional.

Don't you deserve the best?

Another great Lawrence Yun article

New-home sales recovery unlikely before 2009, says NAR chief economist

Nashville Business Journal
Monday, December 10, 2007



Existing-home sales are projected to trend upward in 2008 but a recovery for new-home sales is unlikely before 2009, according to the National Association of Realtors' chief economist, Lawrence Yun.

"The unusual mortgage disruptions that peaked in August were clearly seen in lower home sales that were finalized in September and October, so the market was underperforming," Yun says in a release today, adding the worst part of the credit crunch has already worked its way through the data.

"Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels," he says.

Among Yun's assertions:

Improvement in the Northeast housing market reaffirms a trend of recovery.
Existing-home sales are likely to total 5.67 million this year, the fifth-highest on record, and rise to 5.70 million in 2008.
Home price growth in the affordable midsection of America will help raise the national median existing-home price slightly in 2008 and price appreciation will return to more normal patterns in 2009.
Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash.
"We can't emphasize enough how much local conditions vary, even within a given area," Yun says. "So it's important for consumers to make decisions based on local market conditions."

Best Home Selection Ever

Hey All-

Great cbburnet.com article:


Best Home Selection. Ever.

Forget the negative hype about the housing market. There is an excellent inventory of homes for sale. If you are wondering whether you should purchase a home, consider these facts:

• As of Dec. 3, 2007 there were 33,146 homes for sale in the Twin Cities metropolitan area compared to only 30,183 homes for sale at this same time last year, according to the Minneapolis Area Association of REALTORS ® . That’s 9.8 percent more choice for home buyers!

• There is a wide variety of high quality homes available in all price ranges and communities in the Twin Cities. You can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, town homes, and lofts.

• The greatest opportunities are with single-family detached homes. In November of this year, there were 12.9 percent more single-family homes for sale than in November 2006.

• First-time homebuyers looking for a great starter home will be pleased with the numerous choices. This November compared to last November, there were 100.4 percent more homes priced under $120,000, 47.5 percent more homes priced from $120,001 to $150,000, and 19.7 percent more homes priced from $150,001 to $190,000.

• The inventory of homes priced at $1 million and above was 18.5 percent more this November than last November. This provides tremendous opportunities for consumers interested in purchasing upper-bracket homes.

• Real estate is one of the best and safest long-term investments. Over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. Compare that to a 10 percent down payment on a $200,000 home at a normal appreciation rate of 5 percent, which would return nearly five times the stock market return--$110,000.

• Homeowners benefit from favorable tax laws, including deductions on mortgage interest and property taxes and up to $500,000 in capital gains tax exemptions on personal residences at the time of sale.

President Bush's Plan

President Bush Announces Plan to Freeze Some Subprime Interest Rates



Associated Press

Hundreds of thousands of strapped homeowners could get some relief from a plan negotiated by the Bush administration to freeze interest rates on subprime mortgages that are scheduled to rise in the coming months.

"There is no perfect solution," President Bush said Thursday as he announced an agreement hammered out with the mortgage industry. "The homeowners deserve our help. The steps I've outlined today are a sensible response to a serious challenge."

Seeking to counter criticism he is violating his free-market principles, Bush said the private-sector plan does not represent the imposition of a government solution to the mortgage crisis.

"We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford," Bush said after meeting with industry leaders at the White House. "But there are some responsible homeowners who could avoid foreclosure with some assistance."

Bush said 1.2 million people could be eligible for help. But only a fraction will be subject to the rate freeze. Others would get assistance in refinancing with their lenders and moving into loans secured by the Federal Housing Administration, Bush said.

Also, the aid will only come to those who ask for it, he said. Thousands of borrowers who are falling behind on their payments have been sent letters about the options, and Bush also urged people to call a new hot line: 1-888-995-HOPE.

The announcement followed news earlier Thursday that home foreclosures surged to an all-time high in the July-September period. The Mortgage Bankers Association reported that the percentage of all mortgages that started the foreclosure process in the third quarter jumped to a record 0.78%. That top the mark of 0.65% of all mortgages in the second quarter.

The administration's effort is aimed at stemming a further wave of foreclosures in coming years as 2 million subprime mortgages -- loans provided to borrowers with spotty credit histories -- reset from their introductory rates of around 7% to 8% to levels as high as 11%. That would add hundreds of dollars to the typical monthly payment.

Treasury Secretary Henry Paulson, who led the negotiations with the mortgage industry, said that the effort is "not a silver bullet. We face a difficult problem for which there is no perfect solution."

Bush originally gave the wrong number for the hot line; the White House later corrected him.

The president mentioned other steps to prevent foreclosures. The FHA has greater flexibility to offer refinancing to homeowners with good credit histories. It is expected that this eventually will help 300,000 families, officials said.

The Federal Reserve is announcing stronger lending standards this month, while the Housing and Urban Development Department and federal banking regulators are acting to improve disclosure requirements, he said.

Ten Ways That Your New Dream Home Can Be Greener

Hey all-

This is a great article by Calum MacKenzie:



Are you building your dream home? If your dream of the future includes a brand new home, you are in a position to make your dream house one that is good to the environment. Here are ten choices that can make your new construction home a lean green machine.


Select a site that is handy to public transportation or otherwise reduces your dependence on automobile travel.
If you're like most people, your biggest contribution to pollution and energy use is driving. When you choose a home site that reduces your need to use an automobile, you'll be reducing the amount of carbon based fuel that you use as well as reducing the amount of air pollution that you personally contribute. Many of the newest subdivisions and communities are designed to put everything that you need within walking distance of your front door.


Choose a design that makes use of natural features and lighting to reduce energy use.
The design plan of your home can make use of passive solar design to make the most of natural light and shade to reduce the amount of energy you use to heat and cool your home. A southern facing roof, for instance, is ideal for installing solar water heating panels. Shade trees on the east and west sides of your house can keep the entire house cooler without the need for air conditioning.


Pick energy efficient windows and doors.
If you're going to splurge somewhere, splurge on the most energy efficient doors and windows you can find. Low-e glass can make it possible to have those gorgeous floor-to-ceiling windows you want in the study without completely destroying your energy profile. Energy efficient doors and windows provide the seal that you need to keep your inside air in and outside air out. They'll cut down on heat transfer between the indoors and out. Break resistant glass in your windows will increase the ability of your dream home to resist hurricane force winds (which, btw, will lower your insurance costs).


Use high efficiency lighting systems.
Lighting is about more than light bulbs and fixtures. When you choose your lighting systems, consider using programmable timers to turn lights on and off using a sensor, dimmable lighting controls and task lighting areas that will reduce the amount of overhead light that you need. Outdoors, use motion sensors for landscape lighting rather than lights that stay on all night long. You'll see the overall result in lower utility bills and less light pollution.


Use a properly sized heating/cooling system - and be sure that it's Energy Star compliant.
Over and undersized heating and cooling systems waste energy. Choose the right size system for your home.


Use sustainable building materials for floors, countertops, cabinets and other surfaces in your home.
Bamboo floors are all the rage in the building trade right now, but bamboo is not the only sustainable, green material out there. You may actually be more green using local wood than importing bamboo from the other side of the world. Consider concrete, which is surprisingly versatile and stylish in the right hands, and is extremely green.


Install plumbing that conserves and reuses water.
Choose plumbing fixtures that reduce water use without compromising water pressure. These are some of the least expensive choices you can make - aerators in all of your faucets, low flow shower heads, low water use toilet tanks. A new and increasingly popular option is a plumbing system that harvests rain water and reuses "gray water" - water that has been used for washing up, laundry and dishwashing, for instance. Gray water can be used for any purpose that doesn't require potable water - your washing machine, flush toilets, showers, etc. By reusing water, you cut down on the amount of water going through the municipal wastewater treatment and reduce your need for fresh water.


Choose low maintenance landscaping options.
Drought resistant grass and native plants can virtually eliminate your need for an irrigation system because they rely on Mother Nature for their water needs. But there are other options that can make your landscape an active part of your greener strategies. Including a roofed porch or patio adds shade to your property and reduces your energy use by providing an outdoor space to escape the heat. If you choose a pool or spa, look for features like an integral cover to prevent evaporation, timers that turn filters off and on and filtration systems that reduce the need for harmful chemicals like chlorine.


Choose low VOC materials and supplies for floors, finishes, carpets, cabinets and paints.
Volatile organic compounds are gasses that are given off constantly by many of the materials and finishes used in building homes. VOCs can cause allergic reactions, respiratory problems, skin irritation and other health problems. They're also damaging to the environment because they contribute to smog. Look for paints, adhesives and other supplies that are labeled low VOC. Opt for light colors when you paint (light colors are usually lower VOC than darker pigments), and avoid carpet and vinyl flooring. Low VOC products are usually comparable price-wise to their conventional counterparts.


Select appliances and mechanical systems that are in the top 20% of their category in the DOE Energy Guide labels.
The Department of Energy labels appliances and mechanical systems for your home with an energy rating. Choose appliances that meet or exceed the standards for Energy Star compliance whenever possible. Consider a tankless hot water heater instead of the standard hot water tank heater, and pick Energy Star compliant appliances for your kitchen, laundry and heating/cooling systems.



Calum MacKenzie is Owner of Real Living Southern Homes a leading residential real estate brokerage serving the Wesley Chapel real estate market. Calum and his wife Kathleen have lived and worked in the New Tampa area for eleven years and have extensive knowledge of the New Tampa real estate and Land O' Lakes real estate markets.

Great Home Staging Tips

Home Staging Tips for Home Sellers: "Get Ready To Move -- Start Packing"




Try looking at your house "THROUGH THE BUYER'S EYES" as though you've never seen it or been there before. Any time or money invested on the following will bring back more money in return, and hopefully a faster sale.

INSIDE:
1. Clear all unnecessary objects from furniture throughout the house. Keep decorative objects on the furniture restricted to groups of 1, 3, or 5 items.
2. Clear all unnecessary objects from the kitchen countertops. If it hasn't been used for three months... put it away! Clear refrigerator fronts of messages, pictures, etc. (A sparse kitchen helps the buyer mentally move their own things into your kitchen.)
3. In the bathroom, remove any unnecessary items from countertops, tubs, shower stalls and commode tops. Keep only your most needed cosmetics, brushes, perfumes etc., in one small group on the counter. Coordinate towels to one or two colors only.
4. Rearrange or remove some of the furniture if necessary. As owners, many times we have too much furniture in a room. This is wonderful for our own personal enjoyment, but when it comes to selling we need to thin out as much as possible to make rooms appear larger.
5. Take down or rearrange certain pictures or objects on walls. Patch and paint if necessary.
6. Review the inside of the house room by room, and:

Paint any room needing paint.

Clean carpets or drapes that need it.

Clean windows.
7. If you need room to store extra possessions use the garage or rent a storage unit.
8. Leave on certain lights during the day. During "showings" turn on all lights and lamps.
9. Have stereo FM on during the day for all viewings.

OUTSIDE:
1. Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., into the garage.
2. Check gutters for roof moss and dry rot. Make sure they are swept and cleaned.
3. Look at all plants... prune bushes and trees. Keep plants from blocking windows. "YOU CAN'T SELL A HOUSE IF YOU CAN'T SEE IT." Plants are like children -- they grow so fast!!
4. Weed and then mulch all planting areas. Keep lawn freshly cut and fertilized. Remove and dead plants or shrubs.
5. Clear patios or decks of all small items. such as small planters, flower pots, charcoal, barbecues, toys. etc. (Put them in the garage or a storage unit.)
6. Check paint condition of the house -- especially the front door and trim. "CURB APPEAL REALLY WORKS!"


Barb Schwarz - ASPMTM, CASPT, CSP, RLS, ABR, AB
President of Stagedhomes.com - Creator Of the Home Staging® Industry

Stage® is a Federally Registered Trademark of Stagedhomes.com
Accredited Staging® ProfessionalTM is a Trademark of Stagedhomes.com

The Peak of Afforability is Now

Hey All-
Great blip from cbburnet.com that I thought sums things up nicely.:


Forget the negative hype about the housing market. Homes in our area are more affordable than ever. If you are wondering whether you should purchase a home, consider these facts:

• The Minneapolis Area Association of REALTORS® (MAAR) recently reported that we are experiencing a "massive upswing in housing affordability" in our area. The MAAR Housing Affordability Index grew seven points in November to 138, the highest November mark since 2004.

• Forbes magazine recently ranked Minneapolis-St. Paul the number one "Most Affordable Place to Live Well" out of the 50 largest metropolitan areas in the country. The ranking was based on housing affordability; cost of living; access to arts and leisure activities; and a quality of life index that measures the strength of the schools, quality of health care, and crime and poverty rates. Forbes noted that the most important criteria in the number one ranking was housing affordability. In the last quarter, 61 percent of the area’s homes that were sold were available to the median household earner, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. Compare that to one of the least affordable cities San Francisco where only 5.7 percent of the area’s homes are available to the median income earner.

• Today’s historically low interest rates, which are currently under 6 percent, are another important factor contributing to improved housing affordability. .

• In addition, home prices in the Twin Cities metropolitan area are moderating, with more and more motivated sellers willing to make positive adjustments to their original asking prices.

• Rents are increasing, and first-time homebuyers’ mortgage payments may be only slightly more than their apartment rent after considering tax advantages. In addition, studies show that homeowners accumulate significantly more wealth than renters. A study by the Federal Reserve found that homeowners had a median net worth of $184,400 compared to renters’ median net worth of $4,000 in 2004.

• Real estate is one of the best and safest long-term investments. Over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. Compare that to a 10 percent down payment on a $200,000 home at a normal appreciation rate of 5 percent, which would return nearly five times the stock market return--$110,000.

• Homeowners benefit from favorable tax laws, including deductions on mortgage interest and property taxes and up to $500,000 in capital gains tax exemptions on personal residences at the time of sale.

• There is a wide variety of high quality homes available in all price ranges and communities in the Twin Cities. You can choose from new construction, existing homes, starter homes, move-up homes, luxury properties, condominiums, co-ops, town homes, and lofts. With the best home selection ever, you’ll wish you bought today. The peak of affordability is now.

Great Article from Lawrence Yun (Chief Economist, NAR Research)

Hey All-
Thought this article was great. Let me know what you think.


The "Local" Forecast
by Lawrence Yun, Chief Economist, NAR Research


This upcoming winter's national weather forecast will be closely monitored. Retailers will be assessing potential sales of warm coats. Utility companies need to anticipate heating fuel usage. Scientists will look at the latest climate and environmental data and debate the pace of the planet’s warming trends.

For most of us "everyday" people, however, the national weather forecast of an average of 46 degrees or 38 degrees is equally as useful – or not. Who cares! We need local weather information.

What a Difference Location Makes!
Real estate works similarly. National housing market trends are important for economists to assess their impact on the national economy. The country’s monetary policy at times is determined in relation to overall national housing market conditions.

However, for the 75 million home owners and millions of home buyers and sellers, the only meaningful information is local market conditions. Home prices have been rising strongly in Utah and large parts of North Carolina. Home sales have been clicking at a near-record pace in Dallas. The Boston market, which had been very soft with falling home prices in the past two years, has begun to show early signs of recovery. Stress signs have been rising in some parts of California, yet the Bay Area – already home to the highest home prices in the country – could experience a nice appreciation due to a strong job market turnaround after the dot-com bust of few years ago. And watch out for Wichita: exceptionally fast local job growth combined with the very affordable home prices will likely result in a “pop” in home price growth in that Kansas metro.

In other words, there are significant local variations in the housing climate. National housing market data can be as meaningless for consumers as national weather data.

Yet, recent discussions of housing market conditions have centered predominantly around national data. The media have been frequently reciting the first national annual price decline since the Great Depression, and then associating current housing market conditions to those back in the 1930s. While that may be factually correct, it is highly misleading for a casual audience as such comparison often neglects to provide proper context.

The Ratings Game
Our forecast calls for about a 1.7-percent decline in the national median price, but this will come on the heels of a more-than- 50-percent rise in home values during the recent market boom. A price decline of 1.7 percent is not very significant in the wider context. And there are a great many local variations in the figures that the media often neglect as well. Why?

The easy answer is viewer and listener ratings. There seems to be a desire to “sensationalize” the news in hopes of retaining an audience in an ever-expanding information age. Fortunately,
time and time again American consumers have proven to be smart (smarter than most media give them credit for perhaps) if given informational choices. Consumers will get tired of spoon-fed “sensationalized” news and will seek out relevant news.

It's Not Just About Money
The fact is that homeownership brings immense benefits over the long-term. Aside from near-certain housing equity gains over a typical holding period of 6 years, homeownership provides a great place to live and raise a family. Homeowners in Providence, Los Angeles, and Houston will attest to the long-term benefits even though they had encountered a volatile market swings some 15 to 20 years ago. In addition, academic studies have demonstrated many social benefits of homeownership such as higher student test scores, higher educational attainment and lifetime income, higher civic participation, higher self-esteem from perceived self-control, and even better health conditions.

It is important to note that the benefits of ownership do not mean that households should be pushed into buying a home if they are not ready to do so or misled into taking out a loan with teaser rate mortgages. Home buying is a serious decision and needs to be examined thoroughly.

It would be shame, nonetheless, if a household that is financially able did not buy a home due to excessive fear in the marketplace brought on by sensationalized national news. And while it would be irresponsible to assign all the blame to the media or try to muzzle it in any way, it is important when looking at housing market conditions that all forms of free speech are embraced – including information from bloggers as well as conversations consumers have with their neighbors, lenders, and even housing industry economists! Consumers will, in the end, discover the facts, and serious buyers will recognize a unique opportunity to own a piece of America: there is a vast inventory of homes to choose from in many local markets and a variety of safe mortgage products at historically low interest rates.

Of course, one of the best sources of information about local real estate markets are the REALTORS® who serve those markets. Though there are more than half million additional REALTORS® in the business today compared to 2000, serious REALTORS® understand the true value-added service they provide their clients. Results from the recently released 2007 NAR Profile of Home Buyers and Sellers show that 87 percent of home buyers and 81 percent of home sellers would use the same real estate agent again or recommend that agent to others.

Serious REALTORS® also understand the need to serve the long-term benefits of home ownership and that all real estate is intensely local. For consumers considering buying or selling a home, there is no one better informed than a local neighborhood REALTOR®.

Top Ten Reasons to List Your Property during the Holidays

Top Ten Reasons to List Your Property during the Holidays


1. Houses “show better” when decorated for the holidays.

2. The seller can restrict showings during family events and still take advantage of their spruced up and decorated “show ready” property.

3. Holiday buyers are serious buyers and are more ready to make a decision.

4. Many people want to buy before the end of the year for financial and tax reasons.

5. Buyers have fewer houses to choose from during the holidays, so the property has less competition.

6. By selling during the winter, the seller gives themselves the opportunity to buy during the spring.

7. Buyers have more time to look for a house during the holidays because they have time off from work.

8. January is traditionally the month for transfers. Transferees can’t wait until the spring and houses must be on the market to capture these buyers.

9. Buyers are more sentimental during the holidays and are inclined to make a decision because of the warmth they feel when viewing a home.

10. Sellers can sell now – but specify a delayed closing or extended occupancy until early next year if it is agreeable within the negotiations of the contract.

The Sky Is Falling !!!!

Hey All-

Everywhere you look someone is telling you how bad the real estate market is. Just watch the news once and you’ll see what I mean. Home prices are down. Sellers can’t seem to get their homes sold, and even if they do it takes what seems like forever. Inventory is high. Rates are increasing. Bad Bad Bad Negative Negative Negative How can anyone make sense of it all?

Let me try to put things in perspective.

First let’s take this from the Buyers side since it’s the more obviously advantageous position to be in right now. It is a “buyers market” right now, but what does that mean. First let’s take a look at the inventory on the market right now. With about 35,000 homes on the market in the twin cities metro area there has never been a better selection to pick from. If you can’t find your dream home in this inventory, you’re just not looking. Not only do you have this great selection, but you can get them for a steal. Sellers are not only dropping their prices, but they are paying closing cost too. There has never been a better time for first time homebuyers or investors. Yes, some of the zero down mortgage programs have disappeared but FHA programs have also recently been redesigned allowing more people to qualify. Now what about those pesky interest rates? Interest rates are at an all time low!! I repeat, interest rates are at an all time low!! This is not a gimmick. When my parents built there first new home their interest rate was around 18%!!!! And to make maters even worse, you didn’t even think about buying a home until you had 20% to put down. I really believe that we have been spoiled by temporary 4%-5% rates we saw in early 2000’s. The fact of the matter is that historically the norm is much closer to what my parents paid. I have a graph showing historic rates by year I love to show clients. The looks of astonishment are predictable and priceless. You can’t argue with the facts.

What about the sellers Ben? You can’t argue this market is terrible for a seller.

Well hold on now. Let’s think about this for a second. Most of the time when you are selling a home you’re going to turn right around and buy another, right. Yes you’re going to have to give a deal on the property you’re selling, but you’re going to get a deal on your new home. Yes you had to pay your buyers closing costs, but you will most likely have your new closing costs paid for. To make matters even better the odds are your new home will be more expensive. Most people move up in the size and/or quality of their home. This means the closing costs you pay out will be less than the closing costs you have being paid for you. Let’s take this one step further. Let’s say the home you sold had a market value of $300,000. Now let’s say your new home has a market value of $400,000. For the most part real estate appreciates (gains value) at a consistent rate across the board. For the sake of argument let’s say this rate is a modest 4%. Would you rather have 4% of $300,000 or 4% of $400,000? I think we would all pick the later. Your money has just made a lateral move but you are now collecting $4,000 more in appreciation. Unless you come to the closing table with extra cash you will most likely also get to claim more interest as a deduction against your taxes. Bad market?, no you come out way ahead. So you might have to have a little patience while your agent is finding the buyer for your home. Even this inconvenience can be minimized if you stage and price your home properly.

So you see, in the end this not such a terrible market after all. Please help me spread the good word to all our “chicken littles” out there and calm all the fears. People will always need a place to live and the market is just fine. Let’s stop grumbling and start taking advantage of this once in a lifetime opportunity.

Hope this helps, God bless

Opt Out / Credit Problems

Hey All-

I was meeting with a client last week, discussing some discrepancies we had found in his credit report. As we spoke, I came to realize that he was unaware of a few simple steps he could use to protect his credit and identity. Normally that in itself would not be enough to inspire me to a "Jerry Maguire" moment, feverishly writing family and friends. The problem is, as I help people buy and sell their homes, I'm seeing this type of thing more and more often. I am concerned that what I thought was common knowledge, is really largely unknown. If this is affecting my clients, there's a chance it's hurting others I care about too. My conclusion was to write a quick e-mail to everyone, and offer some information as well as a couple of websites.

I'm sure most of you are familiar with the three major credit-reporting agencies. They are Equifax, Experian, and TransUnion. Collectively they are called Consumer Reporting Agencies or the Consumer Credit Reporting Companies. What most people don't know is that under the Fair Credit Reporting Act, these companies and lenders are allowed to give/sell lists of consumers who have recently made credit inquiries, or what they call "firm offers". They sell these lists to other lenders, collection agencies, credit card companies, etc. They are allowed to do this under the guise of providing the consumer with options and choices.

Once these companies acquire lists, they start sending you "better offers" or offering junk you don't need. This includes those "preapproved" offers you get. (You must have the money to spend, right?) I have even heard of some credit card companies sending out offers that actually include the credit card. They only need to be activated.

The obvious danger in all this junk mail is, if it falls into the wrong hands it contains huge amounts of personal information. The more junk mail you receive, the higher the odds are that something will happen. In the case of the credit cards; someone activates it, maxes it out, and tosses it. Before you know what’s happened, you’re stuck with the damaged credit score and the bill. I even know of one case where the credit card company sent out one of these cards, the person ripped the envelope in half thinking it was junk mail, and threw it away. Almost a year later, they received a letter saying they were past due and their "privileges" were going to be revoked. They found they had been charged an annual fee. The annual fee had then incurred late payments. All while they never even knew they had the account. Even after they fought to get these charges reversed and the card canceled, the company never corrected it with the credit bureau.

Another danger is if one of these lists/reports falls into the hands of a collection agency, they can refresh a dormant collection account. Simply put, an account that has stopped hurting your credit will now start again.

The good news in all of this is that under the Fair Credit Reporting Act, there was also included a mandate to let people opt out of this. (Remember the ‘purpose’ of all this was to offer you options. If you don't want these options they can’t make you take them.) The Consumer Reporting Agencies were required to create a website to allow you to do this. That website is OptOutPrescreen.com. My wife Annie and I did this, and it cut our junk mail down to less than a quarter of what it was. It also helps stop some of the tele-offers you might get if you don't have your phone number blocked. It is extremely easy to do. It takes a little while to have an effect but is well worth it when it does.

Consumers are now also allowed to get free credit reports once a year. The best website to do this is AnnualCreditReport.com. It’s free, and it will help you catch discrepancies before they get out of hand. This way when you go to buy something like a house or car you are not surprised.

If you would like to monitor your credit report more often than that, there are also some great credit monitoring services. The one I recommend and use myself is FreeCreditReport.com. It's not perfect, but it's a good start. For $10/ month you can look at your credit report as many times as you want throughout the year, and they will alert you of any changes to your report via email as they happen. This includes any inquires, late payment infractions, address changes, etc.

My Real Estate Blog

Hi Everyone

My name is Benjamin Kruse. I am a real estate professional in the Minneapolis/Twin Cities metro area. This is my first attempt at a blog, so I hope everyone finds it fun and informative.

In my career as a realtor I have found there are many misconceptions about the real estate industry. Not only are there misconceptions about the industry, but there are also many misconceptions about the professionals who choose to work in it. One of my goals behind this blog is to help clear up these misconceptions and show the fun side of real estate. I desperately want to answer questions and take the stress and confusion out of real estate for people. (If you have any specific topics you would like me to cover, please email me with them at bakruse@cbburnet.com. Please put “potential blog topic” in the subject line.)

The first thing people usually think of when they hear the words real estate is their personal home. Home ownership has for a long time been a huge part of the American dream. Many consider it a marker of success. There is a certain level of pride that goes along with owning your own home. Shelter is a necessity of life. It feels good to have a sense of control over such an important part of our lives.

Real estate is also a huge part of our economy. Just think of all the jobs that revolve around the industry. You start with the people who make the materials and actually do the building of the home. You have agents, lenders, closers, etc who specialize in the sale of these homes. Then we fill our homes with all kinds of stuff: furniture, appliances, etc. Once we fill our homes with this stuff we need people to help us keep our homes nice. We hire carpet cleaners, cleaning people, designers, decorators, landscapers, and so on.

These are just a few of the reasons I love real estate and am so interested in it. I hope to share many more with you in the future. It is truly a passion for me and I’m excited about the opportunity to share that with everyone.

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