7 landscaping tips
These ideas offer some of the best returns for your renovation dollar. Plus, the payoff increases over time.
By Josh Garskof, Money Magazine contributing writer
June 22 2007: 9:57 AM EDT
NEW YORK (Money Magazine) -- If prospective buyers looked at your house today, what would they see outside? A giant evergreen that looks as if it might swallow the station wagon, perhaps, scraggly old foundation plants or maybe a kitchen-table view of the neighbors' kids' trampoline?
If so, you have a truly inexpensive opportunity to boost your home's curb appeal.
By spending $500 to $3,000 on plants and materials and a few hours of time, you can achieve a well-landscaped look without shelling out for professional help.
Besides the personal enjoyment you'll get from a prettier yard, landscaping adds more value than almost any other home renovation.
A recent Michigan State University study found that depending on where the house is located, high-quality landscaping adds 5 percent to 11 percent to its price.
If you have no immediate plans to move, all the better: Landscaping is the one home improvement that actually appreciates over time.
So how do you decide which projects to tackle? That depends on how long you think you'll be around to enjoy the results.
If you're selling in a year or less
Edge the beds Cutting fresh edges where grass meets mulch makes the lawn look well kept. A move as simple as curving the edge of your flower beds could increase the value of your home by 1 percent, says horticulture professor Bridget Behe, the lead researcher on the MSU study.
Also, if your foundation plants are overgrown, widening the beds by two feet will make the shrubs seem smaller.
Nourish the grass For truly lush turf, ideally you should start regular fertilizer treatments a year before listing the house. But you can green up the lawn with just a single application.
Spend $45 on a broadcast spreader, which quickly distributes fertilizer over a lawn, enabling you to nourish a quarter-acre lot in about 10 minutes.
For a yard that size, expect each monthly application to cost about $20 (for straight fertilizer) to $30 (with weed killer).
Scatter color throughout For about $1 a plant, you can blanket your yard with petunias, impatiens and other small annuals that will flower throughout the current growing season.
Also invest a few hundred dollars in some larger perennials and in shrubs that stand at least four feet high.
"A few good-size plants have more sex appeal than 20 little ones," says Chicago landscape architect Douglas Hoerr.
If you're improving for the long-term
Cut back the jungle Many everyday yard plants, such as azaleas, forsythia, hollies and rhododendrons, will fill out with new growth after a season or so even if you hack them down to stumps, says Christopher Valenti, a landscape contractor in Lewes, Del.
Be careful, though, of yews and junipers, which won't grow new leaves on old wood and may need to be removed altogether if they're severely overgrown.
Add drama with foliage A distinctive yard will make your home more appealing to buyers, says Los Angeles realtor Dana Frank. So replace plants that don't flower, or provide interesting foliage with eye-catching alternatives, like a patch of blackeyed Susans, a flowering crabapple or a cutleaf Japanese maple.
If you're planning to stay put, you don't need to spend hundreds of dollars for big plants. You'll save 50 percent or more by buying small ones and waiting a few seasons to get the full visual impact (when planting, make sure to space them based on the mature size listed on the label, not how they look now).
Consider new angles Most yards have almost all the plants along the foundation and the property lines. But if you place yours throughout different parts of the property, you'll create a depth of field that makes your home look farther away from the road, says architect Hoerr.
Try putting some near the house's corners to accentuate its shape, others near the street to define the yard, and some in between, where they can block unfortunate views and be admired from indoors. Many nurseries offer free design help to buyers.
Cover your rear It's nice to wave hello to your neighbors out front, but the backyard should be a private space. If yours feels overexposed, fencing can offer a quick fix.
For each eight-foot section, you'll pay about $100 (for a plain cedar stockade fence) to $300 (for an elaborate Victorian model), plus another $50 to $150 a section for installation.
You can also achieve the same effect at a much lower cost by planting small evergreen shrubs, although you'll have to wait a few seasons for full coverage.
Or, rather than pruning those hulking foundation plants, hire a landscaper to transplant them along the property line. As long as they're healthy and evergreen, it's a great way to maximize the value of the plants you already own.
Take your home outside: An open-air "room" adds inexpensive living space that may come in handy at resale. And it needn't have a price tag as big as the great outdoors.
Wednesday, March 26, 2008
Tuesday, March 25, 2008
Mortgage Pre-Approval versus Mortgage Pre-Qualification
Mortgage Pre-Approval versus Mortgage Pre-Qualification
Tue, Mar 11, 2008 Provided by RealtyTimes
Is there a difference between a Mortgage Pre-Qualification letter and a Mortgage Pre-Approval letter?
The reality is that most all buyers need to obtain a mortgage loan to purchase a home. Since mortgage approval is such an integral aspect of a home purchase, wouldn't it make sense that REALTORS® have a better understanding of the mortgage pre-approval process, since so few buyers are able to buy a home and pay cash.
These terms appear to be similar, but can be quite different. Not only do they cause confusion for home buyers, there seems to be many interpretations from those in the real estate and mortgage industry as well.
Speaking as a REALTOR®, the difference is in documentation and verification. In other words, is the buyer providing copies of income paystubs and bank account statements to the Mortgage Lender or is the Mortgage Lender simply relying on verbal information provided by the buyer? More often than not, the difference between the two terms is that one is issued without any verification of information and the other starts with the buyer providing written documentation of all information provided. While neither is a considered to be a mortgage commitment, nor a written mortgage guarantee, obtaining a Mortgage Pre-Approval letter is more preferred than obtaining a Mortgage Pre-Qualification letter.
Based upon my experiences in selling real estate since 1971, and helping buyers obtain mortgage financing, Mortgage Pre-Qualification is generally a process where a buyer contacts a Mortgage Lender/Mortgage Representative, often on the telephone, who then asks the buyer to provide some information. The information requested involves a current address and how long living there, a social security number and permission to order a credit report, annual income and hopefully the amount of down payment.
After the credit check is ordered and received by the Mortgage Lender, the Mortgage Rep then estimates the amount of mortgage the buyer can afford and sends (via fax or email) a letter to the buyer with the title Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ or Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ and a purchase price of $__. This is usually done within a half hour or so of the initial phone call, and at best can be described as an estimate of potential mortgage ability and purchasing power, and not Mortgage Pre-Approval.
The pre-qualification letter always includes varying type disclaimer information, such as: subject to a formal mortgage application and payment of an application fee, subject to verification of employment, subject to verification of assets, subject to credit review, subject to mortgage underwriting guidelines, interest rate to be the prevailing rate of interest for the mortgage type applied for, among many other subject to like statements. In other words, we will give you a mortgage when we see that the information you provided is correct and meets certain qualifying standards.
What problems could arise when a formal mortgage application is submitted by a buyer after they've obtained a Mortgage Pre-Qualification letter like that? The mortgage application process involves somewhat standard underwriting criteria and guidelines for each particular type mortgage, whether the mortgage is VA, FHA or Conventional. The varying underwriting criteria involves guidelines, whether Fannie Mae, Freddie Mac or the Lenders specific qualifying criteria, for verification of income, income qualifying ratios, verification of down payment, cash reserves after closing, credit check scores and work history, among others.
Yes, it is possible that the buyer provided correct information, and will obtain a mortgage commitment when a mortgage application is submitted. However, there are many circumstances where even though the information verbally provided is accurate, certain other details are not mentioned which may have a negative impact on the mortgage approval process. Details like income being received off the books, down payment being borrowed (not gifted from a family member), and savings for the down payment but no other assets for closing costs or inconsistency in work history, to name just a few situations that can cause problems in obtaining mortgage approval.
While Pre-Qualification letters like the previous example are common, not all Mortgage Lenders provide them in that manner. Many Mortgage Lenders require a more thorough process in providing Mortgage Pre-Approval. In addition to obtaining a credit report, many Lenders require the buyer to provide proof of two years of work history, pay-stubs or income tax forms, copies of bank statements for source of funds verification and copies of charge card statements.
When the documentation is provided, it is then submitted to the Mortgage Underwriter for review and approval. The Mortgage Pre-Approval letter is worded something like this: Congratulations, You Are Pre-Approved for a mortgage loan in the amount of $__ and a purchase price of $__ subject to a Contract of Sale and a satisfactory Bank Appraisal on the home being purchased. While more time consuming than the previous pre-qualification practice discussed above, it is more thorough and more reliable, shortens the formal mortgage application and approval process and provides the ability for a fast closing if one is desired.
Consider the advantages of this type Mortgage Pre-Approval. First of all, the buyer and REALTOR will have confidence in a price range and confidence in obtaining mortgage approval. In submitting offers, sellers will know they have a serious buyer who has taken the time to arrange for mortgage financing first. And just as important, the buyer will be more relaxed in spending money to hire an Attorney for contract review, providing the earnest money deposit, hiring a home inspector to perform the home inspection, termite inspection, radon inspection plus any other required inspections and paying for the mortgage application and appraisal fee. Why? They are concentrating on the home they have purchased, and not worrying about the mortgage approval process.
Needless to say, I can't even count the number of real estate transactions I've noticed fall apart after a buyer has paid all those fees for the home they hoped to purchase, only to find out they were not able to obtain mortgage approval, even with a Pre-Qualification letter. These are the financial ramifications for a buyer, but what about the ramifications for the others involved in a lost real estate transaction, the selling agent, the listing agent and the seller. Consider the time, energy, emotional strains and on and on. Real estate is a people business, a service business. Not much good can occur when a real estate transaction is cancelled for mortgage denial, especially when it occurs a month or so after contract acceptance.
Provide better service to your buyer clients, review their Mortgage Pre-Qualification letter with them, and don't be afraid to ask questions. Provide better service to your seller clients, read the Mortgage Pre-Qualification letter the selling agent is providing at the contract presentation, and don't be afraid to ask questions.
Tue, Mar 11, 2008 Provided by RealtyTimes
Is there a difference between a Mortgage Pre-Qualification letter and a Mortgage Pre-Approval letter?
The reality is that most all buyers need to obtain a mortgage loan to purchase a home. Since mortgage approval is such an integral aspect of a home purchase, wouldn't it make sense that REALTORS® have a better understanding of the mortgage pre-approval process, since so few buyers are able to buy a home and pay cash.
These terms appear to be similar, but can be quite different. Not only do they cause confusion for home buyers, there seems to be many interpretations from those in the real estate and mortgage industry as well.
Speaking as a REALTOR®, the difference is in documentation and verification. In other words, is the buyer providing copies of income paystubs and bank account statements to the Mortgage Lender or is the Mortgage Lender simply relying on verbal information provided by the buyer? More often than not, the difference between the two terms is that one is issued without any verification of information and the other starts with the buyer providing written documentation of all information provided. While neither is a considered to be a mortgage commitment, nor a written mortgage guarantee, obtaining a Mortgage Pre-Approval letter is more preferred than obtaining a Mortgage Pre-Qualification letter.
Based upon my experiences in selling real estate since 1971, and helping buyers obtain mortgage financing, Mortgage Pre-Qualification is generally a process where a buyer contacts a Mortgage Lender/Mortgage Representative, often on the telephone, who then asks the buyer to provide some information. The information requested involves a current address and how long living there, a social security number and permission to order a credit report, annual income and hopefully the amount of down payment.
After the credit check is ordered and received by the Mortgage Lender, the Mortgage Rep then estimates the amount of mortgage the buyer can afford and sends (via fax or email) a letter to the buyer with the title Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ or Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ and a purchase price of $__. This is usually done within a half hour or so of the initial phone call, and at best can be described as an estimate of potential mortgage ability and purchasing power, and not Mortgage Pre-Approval.
The pre-qualification letter always includes varying type disclaimer information, such as: subject to a formal mortgage application and payment of an application fee, subject to verification of employment, subject to verification of assets, subject to credit review, subject to mortgage underwriting guidelines, interest rate to be the prevailing rate of interest for the mortgage type applied for, among many other subject to like statements. In other words, we will give you a mortgage when we see that the information you provided is correct and meets certain qualifying standards.
What problems could arise when a formal mortgage application is submitted by a buyer after they've obtained a Mortgage Pre-Qualification letter like that? The mortgage application process involves somewhat standard underwriting criteria and guidelines for each particular type mortgage, whether the mortgage is VA, FHA or Conventional. The varying underwriting criteria involves guidelines, whether Fannie Mae, Freddie Mac or the Lenders specific qualifying criteria, for verification of income, income qualifying ratios, verification of down payment, cash reserves after closing, credit check scores and work history, among others.
Yes, it is possible that the buyer provided correct information, and will obtain a mortgage commitment when a mortgage application is submitted. However, there are many circumstances where even though the information verbally provided is accurate, certain other details are not mentioned which may have a negative impact on the mortgage approval process. Details like income being received off the books, down payment being borrowed (not gifted from a family member), and savings for the down payment but no other assets for closing costs or inconsistency in work history, to name just a few situations that can cause problems in obtaining mortgage approval.
While Pre-Qualification letters like the previous example are common, not all Mortgage Lenders provide them in that manner. Many Mortgage Lenders require a more thorough process in providing Mortgage Pre-Approval. In addition to obtaining a credit report, many Lenders require the buyer to provide proof of two years of work history, pay-stubs or income tax forms, copies of bank statements for source of funds verification and copies of charge card statements.
When the documentation is provided, it is then submitted to the Mortgage Underwriter for review and approval. The Mortgage Pre-Approval letter is worded something like this: Congratulations, You Are Pre-Approved for a mortgage loan in the amount of $__ and a purchase price of $__ subject to a Contract of Sale and a satisfactory Bank Appraisal on the home being purchased. While more time consuming than the previous pre-qualification practice discussed above, it is more thorough and more reliable, shortens the formal mortgage application and approval process and provides the ability for a fast closing if one is desired.
Consider the advantages of this type Mortgage Pre-Approval. First of all, the buyer and REALTOR will have confidence in a price range and confidence in obtaining mortgage approval. In submitting offers, sellers will know they have a serious buyer who has taken the time to arrange for mortgage financing first. And just as important, the buyer will be more relaxed in spending money to hire an Attorney for contract review, providing the earnest money deposit, hiring a home inspector to perform the home inspection, termite inspection, radon inspection plus any other required inspections and paying for the mortgage application and appraisal fee. Why? They are concentrating on the home they have purchased, and not worrying about the mortgage approval process.
Needless to say, I can't even count the number of real estate transactions I've noticed fall apart after a buyer has paid all those fees for the home they hoped to purchase, only to find out they were not able to obtain mortgage approval, even with a Pre-Qualification letter. These are the financial ramifications for a buyer, but what about the ramifications for the others involved in a lost real estate transaction, the selling agent, the listing agent and the seller. Consider the time, energy, emotional strains and on and on. Real estate is a people business, a service business. Not much good can occur when a real estate transaction is cancelled for mortgage denial, especially when it occurs a month or so after contract acceptance.
Provide better service to your buyer clients, review their Mortgage Pre-Qualification letter with them, and don't be afraid to ask questions. Provide better service to your seller clients, read the Mortgage Pre-Qualification letter the selling agent is providing at the contract presentation, and don't be afraid to ask questions.
Monday, March 24, 2008
Existing Home Sales Rise In February
Existing Home Sales Rise In February
WASHINGTON, March 24, 2008 - Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.
Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.
Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.
Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.
Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.
In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #
(1) The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
(2) The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
(3) Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
(4) Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for March will be released April 22. The next Forecast / Pending Home Sales Index is scheduled for April 8.
-Realtor.org-
WASHINGTON, March 24, 2008 - Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.
Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.
Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.
Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.
Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.
In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #
(1) The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
(2) The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
(3) Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
(4) Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for March will be released April 22. The next Forecast / Pending Home Sales Index is scheduled for April 8.
-Realtor.org-
Lawmakers Plan Another Housing-Related Stimulus Bill
Lawmakers Plan Another Housing-Related Stimulus Bill
by Sarah Lueck - Sun, Feb 17, 2008 Provided by RealEstateJournal.com
A tax break for home builders and higher caps on state mortgage-revenue bonds are among the proposals Senate Democrats plan to take up this month to address the troubled housing market.
With one economic-stimulus bill now signed into law, top Democrats said they intend to turn to a second package focused on housing-related matters -- a potent political issue this election year.
It is unclear how far the bill might get, although it may at least provide fodder for political finger-pointing. Despite the bipartisan aura that sped passage of the first stimulus bill, some parts of this one are likely to draw criticism from Republicans, especially a change in bankruptcy law that would allow judges to alter the terms of certain mortgages. The House Judiciary Committee passed a similar proposal late last year, and the banking industry has lobbied hard against it. The White House has resisted a second stimulus bill.
The first stimulus bill "was absolutely necessary, but it isn't sufficient," said Sen. Richard Durbin (D., Ill.), the majority whip. Senate Majority Leader Harry Reid of Nevada said he would bring the bill to the Senate floor the week after next.
In the House, nonhousing measures such as an extension of unemployment benefits have drawn interest. "We all have our ideas," said House Speaker Nancy Pelosi (D., Calif.) when asked about the Senate proposal. "But I don't think we should confine it to just that tactic."
Some of Senate Democrats' proposals are popular in both parties, such as a tax break allowing companies with operating losses this year or the two previous years to apply them to past years for a refund. That could please home builders, who attacked the first bill. "As far as we are concerned, Congress hasn't done enough to help the housing market," said Jerry Howard, chief executive of the National Association of Home Builders. This week the group cut off congressional campaign donations.
The group is also pushing for a tax credit for home buyers. A similar measure in the 1970s helped clear a glut of unsold new homes, said David Seiders, its chief economist. Sen. Johnny Isakson (R., Ga.) is pushing a tax-credit proposal, but it doesn't yet have traction with Democrats.
In a move that could help attract Republicans, Mr. Reid said the revenue lost to the tax break wouldn't be offset, as normally required under House and Senate budget rules. He said he hoped to get Republican support for the package.
A spokesman for Senate Minority Leader Mitch McConnell (R., Ky.), said Republicans "look forward to this discussion" and want to make sure "we don't tax and spend our economy into a dangerous slowdown."
Another provision would allot an additional $10 billion in bond authority so housing-finance agencies can give more help to people refinancing subprime loans or first-time buyers. President Bush recently backed this idea.
The bill also includes $4 billion in block grants so localities with high foreclosure rates can buy and rehabilitate unoccupied property and $200 million for pre-foreclosure housing counselors
Please Let Me Know Your Thoughts On This One.
Do We Need More?
by Sarah Lueck - Sun, Feb 17, 2008 Provided by RealEstateJournal.com
A tax break for home builders and higher caps on state mortgage-revenue bonds are among the proposals Senate Democrats plan to take up this month to address the troubled housing market.
With one economic-stimulus bill now signed into law, top Democrats said they intend to turn to a second package focused on housing-related matters -- a potent political issue this election year.
It is unclear how far the bill might get, although it may at least provide fodder for political finger-pointing. Despite the bipartisan aura that sped passage of the first stimulus bill, some parts of this one are likely to draw criticism from Republicans, especially a change in bankruptcy law that would allow judges to alter the terms of certain mortgages. The House Judiciary Committee passed a similar proposal late last year, and the banking industry has lobbied hard against it. The White House has resisted a second stimulus bill.
The first stimulus bill "was absolutely necessary, but it isn't sufficient," said Sen. Richard Durbin (D., Ill.), the majority whip. Senate Majority Leader Harry Reid of Nevada said he would bring the bill to the Senate floor the week after next.
In the House, nonhousing measures such as an extension of unemployment benefits have drawn interest. "We all have our ideas," said House Speaker Nancy Pelosi (D., Calif.) when asked about the Senate proposal. "But I don't think we should confine it to just that tactic."
Some of Senate Democrats' proposals are popular in both parties, such as a tax break allowing companies with operating losses this year or the two previous years to apply them to past years for a refund. That could please home builders, who attacked the first bill. "As far as we are concerned, Congress hasn't done enough to help the housing market," said Jerry Howard, chief executive of the National Association of Home Builders. This week the group cut off congressional campaign donations.
The group is also pushing for a tax credit for home buyers. A similar measure in the 1970s helped clear a glut of unsold new homes, said David Seiders, its chief economist. Sen. Johnny Isakson (R., Ga.) is pushing a tax-credit proposal, but it doesn't yet have traction with Democrats.
In a move that could help attract Republicans, Mr. Reid said the revenue lost to the tax break wouldn't be offset, as normally required under House and Senate budget rules. He said he hoped to get Republican support for the package.
A spokesman for Senate Minority Leader Mitch McConnell (R., Ky.), said Republicans "look forward to this discussion" and want to make sure "we don't tax and spend our economy into a dangerous slowdown."
Another provision would allot an additional $10 billion in bond authority so housing-finance agencies can give more help to people refinancing subprime loans or first-time buyers. President Bush recently backed this idea.
The bill also includes $4 billion in block grants so localities with high foreclosure rates can buy and rehabilitate unoccupied property and $200 million for pre-foreclosure housing counselors
Please Let Me Know Your Thoughts On This One.
Do We Need More?
Friday, March 21, 2008
A Better Way To Help Those Caught In The Mortgage Crisis?
A Better Way To Help Those Caught In The Mortgage Crisis? by Phoebe Chongchua - Fri, Mar 21, 2008 Provided by RealtyTimes
Millions of homeowners need help and are facing possible foreclosure but not many are reaching out for it. In fact, it's estimated that 60 percent of borrowers will never establish communication with their lender prior to losing their homes.
In an effort to understand why, I contacted Todd Buckner, President of National Housing Solutions, NHS. According to Mr. Buckner, "The servicer needs to accept the responsibility for this problem. Servicers today still use the same outdated heavy-handed collection tactics that they've used for the last 30 years. The only difference is the incorporation of auto dialers and third world call centers in an effort to reduce cost. The question Wall Street's investors need to ask is, are the servicers being effective? I believe that it's easy to answer that question by looking at the numbers."
Why not collections, why shouldn't the servicer call the borrower and ask for payment? According to Buckner, "National Housing Solutions spent its first 15 months in business trying to answer that very question. Through the use of focus groups and speaking with more than 3,000 late-stage defaulted borrowers, we discovered that people don't respond to being called three times per day for 90 days straight. In fact, we found the typical outcome to be borrower alienation."
Instead, Buckner says, fostering a relationship early on with the borrowers and gaining information about their ability to pay creates a more successful outcome for everyone.
NHS, has created a proprietary Loss Mitigation model that helps reduce mortgage defaults. Buckner refers to it as a "Hyper-Escalation" strategy that starts with using Home Retention Counselors who contact defaulted borrowers within the first 30 days of default. By building a high-trust relationship, with no cost to the borrower, counselors are able to learn about the borrowers' financial situation and their ability to pay.
The second phase of the model involves gathering verified borrower financial data including income, cost of debt servicing, debt serviced, and cost of living. NHS then completes a Borrower Financial Statement with accurate net income.
Buckner says mortgage servicers don't verify cost of living and that is a large part of the reason for the majority of borrowers not being able to perform in their servicer-sponsored mortgage repayment plan "workouts".
Instead, Buckner says servicers trying to collect on the debt verify borrowers' income and run credit reports. "The servicers' workout failure is due to their use of statistical data from the Department of Labor and the Census Bureau to account for the borrower's cost of living. This method heavily skews the servicers' perception of the borrowers' ability to pay by showing positive net income when there is an obvious monthly deficit. Servicers are offering workouts based on the equivalent of stated information. Basic accounting principals tell you that if one number in an income statement is stated, they might as well all be stated. Furthermore, debt-to-income ratios don't matter because it's the borrowers' cost of living that is causing the default." explains Buckner.
The solution then comes back to NHS's model -- early intervention, open communication, verified financial data which accurately accounts for borrower net income.
According to Buckner, a government bailout is not the solution. Families need homes they can afford, and this shouldn't come at the cost of property values. Instead, let's fix the underlying problem. If borrowers' positive net income can be verified, NHS introduces borrowers to their servicers' loss mitigation department. The company stays engaged and helps ensure that the workout is realistic for the borrowers to perform as well as beneficial to the investor.
"If disposition of the home is the only way in which the borrowers can once again obtain positive net income, we support the borrowers in quickly and painlessly relocating to homes they can afford." says Buckner.
NHS is compensated by the mortgage security investor. Service to the borrower is provided at no cost.
For more information, visit nationalhousingsolutions.net.
Millions of homeowners need help and are facing possible foreclosure but not many are reaching out for it. In fact, it's estimated that 60 percent of borrowers will never establish communication with their lender prior to losing their homes.
In an effort to understand why, I contacted Todd Buckner, President of National Housing Solutions, NHS. According to Mr. Buckner, "The servicer needs to accept the responsibility for this problem. Servicers today still use the same outdated heavy-handed collection tactics that they've used for the last 30 years. The only difference is the incorporation of auto dialers and third world call centers in an effort to reduce cost. The question Wall Street's investors need to ask is, are the servicers being effective? I believe that it's easy to answer that question by looking at the numbers."
Why not collections, why shouldn't the servicer call the borrower and ask for payment? According to Buckner, "National Housing Solutions spent its first 15 months in business trying to answer that very question. Through the use of focus groups and speaking with more than 3,000 late-stage defaulted borrowers, we discovered that people don't respond to being called three times per day for 90 days straight. In fact, we found the typical outcome to be borrower alienation."
Instead, Buckner says, fostering a relationship early on with the borrowers and gaining information about their ability to pay creates a more successful outcome for everyone.
NHS, has created a proprietary Loss Mitigation model that helps reduce mortgage defaults. Buckner refers to it as a "Hyper-Escalation" strategy that starts with using Home Retention Counselors who contact defaulted borrowers within the first 30 days of default. By building a high-trust relationship, with no cost to the borrower, counselors are able to learn about the borrowers' financial situation and their ability to pay.
The second phase of the model involves gathering verified borrower financial data including income, cost of debt servicing, debt serviced, and cost of living. NHS then completes a Borrower Financial Statement with accurate net income.
Buckner says mortgage servicers don't verify cost of living and that is a large part of the reason for the majority of borrowers not being able to perform in their servicer-sponsored mortgage repayment plan "workouts".
Instead, Buckner says servicers trying to collect on the debt verify borrowers' income and run credit reports. "The servicers' workout failure is due to their use of statistical data from the Department of Labor and the Census Bureau to account for the borrower's cost of living. This method heavily skews the servicers' perception of the borrowers' ability to pay by showing positive net income when there is an obvious monthly deficit. Servicers are offering workouts based on the equivalent of stated information. Basic accounting principals tell you that if one number in an income statement is stated, they might as well all be stated. Furthermore, debt-to-income ratios don't matter because it's the borrowers' cost of living that is causing the default." explains Buckner.
The solution then comes back to NHS's model -- early intervention, open communication, verified financial data which accurately accounts for borrower net income.
According to Buckner, a government bailout is not the solution. Families need homes they can afford, and this shouldn't come at the cost of property values. Instead, let's fix the underlying problem. If borrowers' positive net income can be verified, NHS introduces borrowers to their servicers' loss mitigation department. The company stays engaged and helps ensure that the workout is realistic for the borrowers to perform as well as beneficial to the investor.
"If disposition of the home is the only way in which the borrowers can once again obtain positive net income, we support the borrowers in quickly and painlessly relocating to homes they can afford." says Buckner.
NHS is compensated by the mortgage security investor. Service to the borrower is provided at no cost.
For more information, visit nationalhousingsolutions.net.
What Do I Need to Know about the Plumbing?
What Do I Need to Know about the Plumbing?
by Brett Kayzar - Thu, Mar 20, 2008 Provided by RealtyTimes
As a home inspector I am often asked, "What do I need to know about the plumbing?" The answer can be rather long and rather complex, but in the simplest of terms, the plumbing of a home consists of two major parts:
Supply System – the plumbing that brings fresh water into the home, a connection of sealed pipe sections and valves under pressure, which are intended to bring a continuous flow upon demand
Drainage System – the plumbing that safely removes used water and waste products from within the home through a series of vented pipe sections which flow downward to allow discharge via gravity
Well, that is about as simple as the explanation gets, water in, and waste out. But there is much more to the story, such as the types of piping used, "are the pipes made of plastic, copper, or galvanized steel"?
And, "what types of connectors are used, brass fittings, soldered connectors, or adhesive materials?" And then, "what other types of fixtures or accessories are found within the system; are there well pumps, storage tanks, pressure regulators, treatment systems, water heaters, and so on?"
And, "what types of traps or clean-outs are provided for the toilets, sinks, and tub/showers"? Wow, so many things to covers, and so many locations for possible leaks. After all, plumbing systems in good service are those that deliver the inbound potable water upon demand, and then take the contaminated waste water outbound, and without any leakage along the way!
Let's talk about the supply piping first. Prior to the early 1960's, most homes built in the last century used inbound water pipes made of galvanized steel, galvanizing being a process of coating raw steel pipes through a corrosion resistant chemical process. Galvanizing worked well, but typically this coating material began to breakdown over time, which then left the steel piping exposed to water which in turn began the process of decay.
Usually galvanized piping had a life expectancy of approximately 40 years, maybe a bit longer depending upon their use, maintenance, or original installation methods. If the home you are purchasing has galvanized piping, it may be getting up in age and therefore this system may need to be replaced at some future point in time. Signs of corrosion or visible signs of rust detected during an inspection may suggest that the system has areas of decay, and that further evaluation may be advised.
Some other older supply systems to watch out for are various forms of flexible plastics. Only a few types of plastic piping are recommended for use within supply systems by the International Residential Code and the Uniform Plumbing Code, and these uses are very specific in nature. If you have any plastic supply piping, this should be given special attention as these are not common, and some plastic systems have been prone to have problems. Expert advice should be sought under these conditions.
Now fast forward in time just a bit. After the 1960's construction methods began using copper piping almost exclusively. With the exception of some weaker versions of the first copper pipes (there are various grades K,L,M), extruded copper plumbing has become the gold standard. Almost all supply piping installed today in residential construction is made of copper. This type of material is largely resistant to corrosion from water, is easier to install and/or repair than steel products, and in most cases copper has become the most cost effective material overall.
The only concerns with copper piping are with respect to its softer material which is subject to puncture if struck, by a nail for example, or it may rupture if bent by accident or not supported properly. Copper piping is also subject to galvanic oxidization if connected to galvanized steel piping. Meaning that if a steel connector or section of galvanized steel pipe is attached to a copper pipe, a corrosive reaction develops slowly, usually at the point where the two sections meet.
And remember, corrosion then ultimately leads to decay and leakage. If you have copper piping, keep the entire system made of copper and all will be fine (brass fittings may also be used with copper piping as an alternative material). There are special dielectric connectors that may also be used to if a steel pipe is to be connected to a copper pipe.
Okay, we are getting a bit beyond the simple explanations we promised. Just remember:
copper = good, this is the most common material used today
galvanized steel = fine, but regular inspection advised due to older materials
plastic = okay, but for specific uses only in supply systems
Now before we leave the supply piping discussion we need to revisit "what does corrosion on piping really mean?" Corrosion is a process whereby external materials or very small amounts of water are making their way to the surface. Put another way, this could mean that the threads or connections where two sections of piping come together are not completely sealed tight, and therefore tiny amounts of water can get through any small gaps, thus making their way to the outside of the connection. Remember these supply water pipes are under pressure, so any weakness will give water a place to escape.
Now in this example of threaded piping, if the threads are not damaged, cleaning them with a wire brush and then adding Teflon-tape or other piping compounds to the threads might be all that is required to stop further corrosion or leakage. Repairs are not always this simple, but the point here is that corrosion is the first indication that something is not right, so any mention of corrosion on pipes/connectors or fixtures should be taken seriously as this is the plumbing systems "early warning" that repairs are needed. Left unattended, corrosion becomes a leak, and although this process may take months or weeks before a leak appears, it WILL lead to a leak at some point in time. So like most things, the sooner the problem is addressed the better!
Now let us talk about the waste or outbound drainage plumbing systems. Before the 1960s most residential applications were of clay tiles or cast iron piping (and a few less common uses of lead, brass, etc). Clay tiles didn't last very long, only 25-40 years typically, so any clay piping still in use would be suspect to cracks and leakage. Cast iron on the other hand could last up to 80-100 years by some estimates, but also noting that there have been reports of cast piping failures as early as 40-60 years of use.
Since most of a home's waste plumbing may be buried under a floor/slab or within the soil, it is hard to really know the true condition of the entire waste system. However that being said, an inspection of the visible sections is a great placed to start, and this visual inspection can provide an indication of how the rest of the system may be functioning. Additionally, in the case of concealed areas within the soil for example, visual inspections for wet areas can also be an indication of an active leak.
Or if the water flow out from toilets/tub/showers appears to be slower than usual, this could be an indication of a break or blockages within the waste lines. If problems such as these are evident, further evaluation by a licensed plumber might be recommended, whereby these professionals could send a camera scope through the waste lines to visually inspect then from the inside out. As previously stated, the aim of any initial inspection is to detect possible warning signs, to give a general assessments, and then to recommend next steps accordingly.
If we look beyond early waste systems of clay tiles and cast iron, we move to today's almost exclusive use of ABS plastic piping (Acrylonitrile-Butadiene-Styrene schedule 40, typically black in color). Okay, that was a mouthful, but one word to remember: "Plastics."
Unlike supply systems, for waste systems the use of plastics has appeared to have been a huge success! ABS plastic is smooth (unlike the sand-paper texture of cast iron) so clogs due paper getting caught inside the waste lines, this has been drastically reduced. Plastic is also rigid, meaning that unlike clay pipes that crack if struck or squeezed by tree roots, plastic piping is more likely to withstand these external forces. And did we mention that installing or repairing ABS plastic waste lines is much easier and less costly than the other materials.
Now no discussion of waste systems would be complete without a brief mention of the many connections and fixtures used. Remember that every connecting point is an opportunity for leaks. Every toilet, sink, shower, and water using appliance should be thoroughly checked. This starts with a visual inspection to determine if the parts were assembled properly. Then further assessments are taken to look for corrosion, stains, and leaks … these steps all begin the process of "early warning" and detection! And then of course, running water through the system can be a final measure of the waste system's current condition.
A standard inspection process may look at literally hundreds of connection points in an average home. And in addition to determining the types of materials installed, the inspection process will try to weed-out any potential problem areas. Remember, no matter what type of system you have, the key is to keep a watch out for the signs of corrosion or leakage! Plumbing system problems can be serious and costly concerns, but the home inspection can help make the process of detection and analysis a little less of a concern.
And that completes today's course of Plumbing 101.
by Brett Kayzar - Thu, Mar 20, 2008 Provided by RealtyTimes
As a home inspector I am often asked, "What do I need to know about the plumbing?" The answer can be rather long and rather complex, but in the simplest of terms, the plumbing of a home consists of two major parts:
Supply System – the plumbing that brings fresh water into the home, a connection of sealed pipe sections and valves under pressure, which are intended to bring a continuous flow upon demand
Drainage System – the plumbing that safely removes used water and waste products from within the home through a series of vented pipe sections which flow downward to allow discharge via gravity
Well, that is about as simple as the explanation gets, water in, and waste out. But there is much more to the story, such as the types of piping used, "are the pipes made of plastic, copper, or galvanized steel"?
And, "what types of connectors are used, brass fittings, soldered connectors, or adhesive materials?" And then, "what other types of fixtures or accessories are found within the system; are there well pumps, storage tanks, pressure regulators, treatment systems, water heaters, and so on?"
And, "what types of traps or clean-outs are provided for the toilets, sinks, and tub/showers"? Wow, so many things to covers, and so many locations for possible leaks. After all, plumbing systems in good service are those that deliver the inbound potable water upon demand, and then take the contaminated waste water outbound, and without any leakage along the way!
Let's talk about the supply piping first. Prior to the early 1960's, most homes built in the last century used inbound water pipes made of galvanized steel, galvanizing being a process of coating raw steel pipes through a corrosion resistant chemical process. Galvanizing worked well, but typically this coating material began to breakdown over time, which then left the steel piping exposed to water which in turn began the process of decay.
Usually galvanized piping had a life expectancy of approximately 40 years, maybe a bit longer depending upon their use, maintenance, or original installation methods. If the home you are purchasing has galvanized piping, it may be getting up in age and therefore this system may need to be replaced at some future point in time. Signs of corrosion or visible signs of rust detected during an inspection may suggest that the system has areas of decay, and that further evaluation may be advised.
Some other older supply systems to watch out for are various forms of flexible plastics. Only a few types of plastic piping are recommended for use within supply systems by the International Residential Code and the Uniform Plumbing Code, and these uses are very specific in nature. If you have any plastic supply piping, this should be given special attention as these are not common, and some plastic systems have been prone to have problems. Expert advice should be sought under these conditions.
Now fast forward in time just a bit. After the 1960's construction methods began using copper piping almost exclusively. With the exception of some weaker versions of the first copper pipes (there are various grades K,L,M), extruded copper plumbing has become the gold standard. Almost all supply piping installed today in residential construction is made of copper. This type of material is largely resistant to corrosion from water, is easier to install and/or repair than steel products, and in most cases copper has become the most cost effective material overall.
The only concerns with copper piping are with respect to its softer material which is subject to puncture if struck, by a nail for example, or it may rupture if bent by accident or not supported properly. Copper piping is also subject to galvanic oxidization if connected to galvanized steel piping. Meaning that if a steel connector or section of galvanized steel pipe is attached to a copper pipe, a corrosive reaction develops slowly, usually at the point where the two sections meet.
And remember, corrosion then ultimately leads to decay and leakage. If you have copper piping, keep the entire system made of copper and all will be fine (brass fittings may also be used with copper piping as an alternative material). There are special dielectric connectors that may also be used to if a steel pipe is to be connected to a copper pipe.
Okay, we are getting a bit beyond the simple explanations we promised. Just remember:
copper = good, this is the most common material used today
galvanized steel = fine, but regular inspection advised due to older materials
plastic = okay, but for specific uses only in supply systems
Now before we leave the supply piping discussion we need to revisit "what does corrosion on piping really mean?" Corrosion is a process whereby external materials or very small amounts of water are making their way to the surface. Put another way, this could mean that the threads or connections where two sections of piping come together are not completely sealed tight, and therefore tiny amounts of water can get through any small gaps, thus making their way to the outside of the connection. Remember these supply water pipes are under pressure, so any weakness will give water a place to escape.
Now in this example of threaded piping, if the threads are not damaged, cleaning them with a wire brush and then adding Teflon-tape or other piping compounds to the threads might be all that is required to stop further corrosion or leakage. Repairs are not always this simple, but the point here is that corrosion is the first indication that something is not right, so any mention of corrosion on pipes/connectors or fixtures should be taken seriously as this is the plumbing systems "early warning" that repairs are needed. Left unattended, corrosion becomes a leak, and although this process may take months or weeks before a leak appears, it WILL lead to a leak at some point in time. So like most things, the sooner the problem is addressed the better!
Now let us talk about the waste or outbound drainage plumbing systems. Before the 1960s most residential applications were of clay tiles or cast iron piping (and a few less common uses of lead, brass, etc). Clay tiles didn't last very long, only 25-40 years typically, so any clay piping still in use would be suspect to cracks and leakage. Cast iron on the other hand could last up to 80-100 years by some estimates, but also noting that there have been reports of cast piping failures as early as 40-60 years of use.
Since most of a home's waste plumbing may be buried under a floor/slab or within the soil, it is hard to really know the true condition of the entire waste system. However that being said, an inspection of the visible sections is a great placed to start, and this visual inspection can provide an indication of how the rest of the system may be functioning. Additionally, in the case of concealed areas within the soil for example, visual inspections for wet areas can also be an indication of an active leak.
Or if the water flow out from toilets/tub/showers appears to be slower than usual, this could be an indication of a break or blockages within the waste lines. If problems such as these are evident, further evaluation by a licensed plumber might be recommended, whereby these professionals could send a camera scope through the waste lines to visually inspect then from the inside out. As previously stated, the aim of any initial inspection is to detect possible warning signs, to give a general assessments, and then to recommend next steps accordingly.
If we look beyond early waste systems of clay tiles and cast iron, we move to today's almost exclusive use of ABS plastic piping (Acrylonitrile-Butadiene-Styrene schedule 40, typically black in color). Okay, that was a mouthful, but one word to remember: "Plastics."
Unlike supply systems, for waste systems the use of plastics has appeared to have been a huge success! ABS plastic is smooth (unlike the sand-paper texture of cast iron) so clogs due paper getting caught inside the waste lines, this has been drastically reduced. Plastic is also rigid, meaning that unlike clay pipes that crack if struck or squeezed by tree roots, plastic piping is more likely to withstand these external forces. And did we mention that installing or repairing ABS plastic waste lines is much easier and less costly than the other materials.
Now no discussion of waste systems would be complete without a brief mention of the many connections and fixtures used. Remember that every connecting point is an opportunity for leaks. Every toilet, sink, shower, and water using appliance should be thoroughly checked. This starts with a visual inspection to determine if the parts were assembled properly. Then further assessments are taken to look for corrosion, stains, and leaks … these steps all begin the process of "early warning" and detection! And then of course, running water through the system can be a final measure of the waste system's current condition.
A standard inspection process may look at literally hundreds of connection points in an average home. And in addition to determining the types of materials installed, the inspection process will try to weed-out any potential problem areas. Remember, no matter what type of system you have, the key is to keep a watch out for the signs of corrosion or leakage! Plumbing system problems can be serious and costly concerns, but the home inspection can help make the process of detection and analysis a little less of a concern.
And that completes today's course of Plumbing 101.
Wednesday, March 19, 2008
Housing affordability at its highest point in five years.
Buyers spring for falling home prices
Housing affordability at its highest point in five years
Minneapolis, Minnesota (March 12, 2008) – Aggressive seller pricing and steadily improving buying opportunities continue to be the hallmarks of the 2008 Twin Cities housing market so far, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
The substantial corrective price declines first seen in January were further fleshed out in February, as the median sales price for the month of $195,060 is a decrease of 12.5 percent from the same month last year. With builders, banks and traditional home sellers facing a challenging environment, they have priced their product to move. And, at least in February, prospective home buyers are taking notice of the opportunities available.
Pending and closed sales posted relatively robust figures in February compared to the tepid showings of the recent past. There were 3,087 purchase agreements signed and 2,009 sales closed—down only 10.2 and 13.6 percent from last year, respectively. This is a lesser decline than seen in recent months.
"It feels like the pendulum is finally starting to make the big swing," said Kevin Knudsen, MAAR President. "The price corrections we need are working alongside great inventory selection. And the recent FHA loan limit increase is going to have a dramatic and positive effect on buyers searching for secure financing."
The MAAR Housing Affordability Index (HAI) shot up eight points from last month to 157. That's good for 16 points in the last two months and the healthiest HAI figure since 2003.
Additionally, the number of homes for sale continues to post record levels despite a drop-off in new listing supply. At the end of February, there were 29,842 homes for sale, which amounts to 8.72 homes for each buyer expected during the upcoming month.
"This is arguably the most attractive buying environment we've seen in the Twin Cities in a decade," said Knudsen.
A note to those scouting the market for rock-bottom prices: The decline in median sales price is just as much a function of what kinds of properties are being sold as it is a slashing of listing prices. According to MAAR's February Housing Supply Outlook, there recently has been a large increase in the sales of properties priced under $150,000, which does have the effect of skewing the overall median sales price downward.
"We don't want to sugarcoat the news of declining prices," said Steve Havig, MAAR President-Elect. "Yet we have to keep perspective as to what these prices mean and recognize that they represent the kind of correction that we need."
-MAAR-
Housing affordability at its highest point in five years
Minneapolis, Minnesota (March 12, 2008) – Aggressive seller pricing and steadily improving buying opportunities continue to be the hallmarks of the 2008 Twin Cities housing market so far, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
The substantial corrective price declines first seen in January were further fleshed out in February, as the median sales price for the month of $195,060 is a decrease of 12.5 percent from the same month last year. With builders, banks and traditional home sellers facing a challenging environment, they have priced their product to move. And, at least in February, prospective home buyers are taking notice of the opportunities available.
Pending and closed sales posted relatively robust figures in February compared to the tepid showings of the recent past. There were 3,087 purchase agreements signed and 2,009 sales closed—down only 10.2 and 13.6 percent from last year, respectively. This is a lesser decline than seen in recent months.
"It feels like the pendulum is finally starting to make the big swing," said Kevin Knudsen, MAAR President. "The price corrections we need are working alongside great inventory selection. And the recent FHA loan limit increase is going to have a dramatic and positive effect on buyers searching for secure financing."
The MAAR Housing Affordability Index (HAI) shot up eight points from last month to 157. That's good for 16 points in the last two months and the healthiest HAI figure since 2003.
Additionally, the number of homes for sale continues to post record levels despite a drop-off in new listing supply. At the end of February, there were 29,842 homes for sale, which amounts to 8.72 homes for each buyer expected during the upcoming month.
"This is arguably the most attractive buying environment we've seen in the Twin Cities in a decade," said Knudsen.
A note to those scouting the market for rock-bottom prices: The decline in median sales price is just as much a function of what kinds of properties are being sold as it is a slashing of listing prices. According to MAAR's February Housing Supply Outlook, there recently has been a large increase in the sales of properties priced under $150,000, which does have the effect of skewing the overall median sales price downward.
"We don't want to sugarcoat the news of declining prices," said Steve Havig, MAAR President-Elect. "Yet we have to keep perspective as to what these prices mean and recognize that they represent the kind of correction that we need."
-MAAR-
Tuesday, March 18, 2008
Fed Cuts Rate 0.75% !!!!!
FOMC Slices Key Interest Rate by 0.75%; Fed Funds Rate Now 2.25%
Dunstan Prial, Ken Sweet
FOXBusiness
The Federal Reserve on Tuesday continued its determined efforts to ward off a recession or worse by slashing three-quarters of a point off a key interest rate.
The move clearly reflects the Fed’s belief that it needs to do all it can to help alleviate fears that the economy has fallen and can’t get up.
Prior to the announcement, economists and Wall Street traders were in disagreement over the size of the Fed’s move. But few believed the Fed would swerve from its aggressive approach toward righting the recent economic downturn.
“Fed officials are in full crisis mode and are striving to prevent a collapse,” said Maury N. Harris, chief economist at UBS.
The 75 basis point cut will translate immediately into lower rates for consumers and businesses as banks cut their prime lending rate by a similar amount.
Interest rate cuts are designed to prompt spending and push a stagnant economy toward growth.
“We’re in the middle of the worst part of the recession,” said John Silvia, chief economist for Wachovia.
The federal funds rate, the interest that banks charge each other on overnight loans, now stands at 2.25%, down from 4.25% at the beginning of the year.
That was before global market turmoil in January prompted an emergency three-quarter-point cut on Jan. 22 and a half-point move eight days later, the biggest reductions in a single month in more than a quarter-century.
Stock markets, which had surged earlier Tuesday in anticipation of the cut and on decent earnings from two high profile banks – Lehman Brothers (LEH: 43.04, +11.29, +35.55%) and Goldman Sachs (GS: 170.96, +19.94, +13.20%), pulled back.
Financial markets have see-sawed in recent days, jarred by the collapse of Bear Stearns Cos. (BSC: 6.47, +1.66, +34.51%), the nation's fifth largest investment house, which was undone primarily by bad bets on investments tied to now toxic subprime mortgages.
Good news came in the form of JPMorgan Chase & Co. (JPM: 42.05, +1.74, +4.31%) decision to purchasing Bear Stearns at a fire-sale price on Sunday in a deal helped along with a pledge that the Fed would supply a $30 billion line of credit to back up Bear Stearns' assets.
That offer over the weekend was the latest move by a central bank that has been pulling out all of the stops, including using Depression-era procedures, to pump cash into the financial system.
"There is no reason for the Fed not to be aggressive," Mark Zandi, chief economist at Moody's Economy.com told the Associated Press. "The economy is in a recession, the financial system is in disarray and inflation is low."
In other moves, the Fed last week announced that it would lend up to $200 billion of Treasury securities that it owns to investment banks starting March 27 for a period of up to 28 days in return for a like amount of the investment banks' shunned mortgage-backed securities. The Fed also announced recently that it was boosting the size of special loans it has been making since December to commercial banks.
The scale of these actions underscored the threat facing the economy from a severe credit squeeze that began with a wave of defaults on subprime mortgages last year but has now spread to other parts of the credit markets, triggering multibillion-dollar losses by some of the country's largest financial institutions.
Since last fall, when the first rate cuts occurred, the Fed has shown an increasing willingness to move swiftly and broadly to offset crumbling markets. Tuesday’s action might not be its last.
“I don’t know where the floor is and I don’t think the Fed knows either,” said Stuart Hoffman, chief economist with PNC Financial Services Group.
Dunstan Prial, Ken Sweet
FOXBusiness
The Federal Reserve on Tuesday continued its determined efforts to ward off a recession or worse by slashing three-quarters of a point off a key interest rate.
The move clearly reflects the Fed’s belief that it needs to do all it can to help alleviate fears that the economy has fallen and can’t get up.
Prior to the announcement, economists and Wall Street traders were in disagreement over the size of the Fed’s move. But few believed the Fed would swerve from its aggressive approach toward righting the recent economic downturn.
“Fed officials are in full crisis mode and are striving to prevent a collapse,” said Maury N. Harris, chief economist at UBS.
The 75 basis point cut will translate immediately into lower rates for consumers and businesses as banks cut their prime lending rate by a similar amount.
Interest rate cuts are designed to prompt spending and push a stagnant economy toward growth.
“We’re in the middle of the worst part of the recession,” said John Silvia, chief economist for Wachovia.
The federal funds rate, the interest that banks charge each other on overnight loans, now stands at 2.25%, down from 4.25% at the beginning of the year.
That was before global market turmoil in January prompted an emergency three-quarter-point cut on Jan. 22 and a half-point move eight days later, the biggest reductions in a single month in more than a quarter-century.
Stock markets, which had surged earlier Tuesday in anticipation of the cut and on decent earnings from two high profile banks – Lehman Brothers (LEH: 43.04, +11.29, +35.55%) and Goldman Sachs (GS: 170.96, +19.94, +13.20%), pulled back.
Financial markets have see-sawed in recent days, jarred by the collapse of Bear Stearns Cos. (BSC: 6.47, +1.66, +34.51%), the nation's fifth largest investment house, which was undone primarily by bad bets on investments tied to now toxic subprime mortgages.
Good news came in the form of JPMorgan Chase & Co. (JPM: 42.05, +1.74, +4.31%) decision to purchasing Bear Stearns at a fire-sale price on Sunday in a deal helped along with a pledge that the Fed would supply a $30 billion line of credit to back up Bear Stearns' assets.
That offer over the weekend was the latest move by a central bank that has been pulling out all of the stops, including using Depression-era procedures, to pump cash into the financial system.
"There is no reason for the Fed not to be aggressive," Mark Zandi, chief economist at Moody's Economy.com told the Associated Press. "The economy is in a recession, the financial system is in disarray and inflation is low."
In other moves, the Fed last week announced that it would lend up to $200 billion of Treasury securities that it owns to investment banks starting March 27 for a period of up to 28 days in return for a like amount of the investment banks' shunned mortgage-backed securities. The Fed also announced recently that it was boosting the size of special loans it has been making since December to commercial banks.
The scale of these actions underscored the threat facing the economy from a severe credit squeeze that began with a wave of defaults on subprime mortgages last year but has now spread to other parts of the credit markets, triggering multibillion-dollar losses by some of the country's largest financial institutions.
Since last fall, when the first rate cuts occurred, the Fed has shown an increasing willingness to move swiftly and broadly to offset crumbling markets. Tuesday’s action might not be its last.
“I don’t know where the floor is and I don’t think the Fed knows either,” said Stuart Hoffman, chief economist with PNC Financial Services Group.
How to Avoid Being a Victim of Fraud.
How to Avoid Being a Victim of Fraud
by Jim Adair - Tue, Mar 18, 2008 Provided by RealtyTimes
A popular series of television commercials asks, "What's in your wallet?" The answer is, probably too much. Identity theft is a serious problem in Canada, and sometimes leads to real estate title fraud, says title insurance provider First Canadian Title.
Identity theft occurs when someone uses your personal information to open credit card and bank accounts, set up cell phone accounts, rent accommodation or equipment, or even to get a job in your name. Someone can use your information to forge a transfer deed and register title to a property in his own name, then forge a discharge of an existing mortgage and borrow against the clear title. By the time you realize there's a fraudulent mortgage on the property, the money and the bad guy are long gone.
"Although real estate title fraud is far less frequent than other forms of fraud involving identity theft, it is a violation that can have devastating and long-lasting effects on its victims," says Gary Ford, vice-president of First Canadian Title. "And one of the great injustices about this type of fraud is that perpetrators are rarely caught."
One of the first things to do to prevent being a victim of identity theft is clean unnecessary cards out of your wallet. Social insurance cards and birth certificates should be kept in a secure place such as a safety deposit box. You should also carefully guard your account numbers for your bank accounts, health card, driver's license and credit card. Don't let your mail pile up in your mailbox, and shred any receipts, copies of credit applications, insurance or medical forms and credit offers that you receive in the mail, First Canadian advises.
Title insurance covers all legal expenses related to restoring title. First Canadian also offers identity theft coverage when you obtain a title insurance policy.
The Canadian Association of Accredited Mortgage Professionals (CAAMP) says some other ways to avoid becoming a victim of real estate title fraud include keeping up-to-date with your credit and financial reports, and making sure there are no unauthorized transactions. Ask credit bureaus for your credit rating and review it regularly. CAAMP says you should rely on a real estate professional when buying or selling a home, and choose someone you trust. When arranging a mortgage, make sure you understand what you are signing.
In addition to various email and telephone scams designed to pry your personal information from you, the Competition Bureau recently commissioned a survey that assessed 12 types of mass marketing fraud that targets Canadians. It found that 58 per cent of Canadians reported they had been targeted, and that one million Canadians have fallen victim to a mass marketing fraud. The bureau says the total amount that Canadians have lost is at least $450 million.
"The survey results debunk the myth that the usual mass-marketing fraud victim is older and poorly educated," says the study. "In fact, anyone can be a victim … younger Canadians, including people 18 to 29 years of age, are highly susceptible to being victimized by mass marketing fraud operators, as are Canadians 30 to 44 years of age, reinforcing the fact that seniors are not disproportionately targeted by fraud artists in the country."
The 12 types of consumer frauds studied were chosen based on common complaints to the Canadian Anti-Fraud Call Centre. They were:
Prize, lottery and sweepstakes fraud – The victim is told he won something, but has to purchase something or pay an advance fee to get the prize. There is no prize.
West African or 419 fraud – The victim is asked to help transfer a large sum of money from another country to Canada, and asked to pay a fee before the "fortune" can be released. There is no fortune.
Employment/work from home fraud – The victim is offered a job or a chance to work at home, but must pay an advance fee to obtain materials. The materials are never sent.
Cheque cashing/money transfer fraud – The victim is given cheques or funds to cash and transfer, but they are counterfeit or stolen.
Overpayment for sale of merchandise – The target receives a counterfeit cheque or money order for more than the asking price of what they are selling, and asked to cash the cheque and send back the difference to the sender.
Advance fee loan – The victim is offered a loan, but first they must pay an advance fee. The loan never happens.
Upfront fee for credit card – The victim must pay an advance fee for a credit card, which never arrives.
Bill for unsuitable merchandise – The victim orders something from the Internet or a mail-order catalogue and pays up front, but never receives the goods.
Health products and cures – The victim buys a health product or cure that doesn't work.
Advance fee vacation – The victim is promised a free or discounted vacation as long as they pay a fee up front. There is no vacation.
High-pressure sales pitch vacation fraud – The target is offered a free gift or reward to attend a sales presentation, where he is subjected to high-pressure sales tactics and/or misleading offers.
Investment fraud – The victim is offered an investment opportunity promising higher than normal returns, but loses most of the money.
Remember the golden rule: if it sounds too good to be true, it probably is.
March is Fraud Prevention Month in Canada and around the world, which has prompted the Competition Bureau and more than 100 partners to launch the Fraud Prevention Forum Page. It includes lots more information about fraud in Canada, along with interactive Web tools and updated fraud warnings.
by Jim Adair - Tue, Mar 18, 2008 Provided by RealtyTimes
A popular series of television commercials asks, "What's in your wallet?" The answer is, probably too much. Identity theft is a serious problem in Canada, and sometimes leads to real estate title fraud, says title insurance provider First Canadian Title.
Identity theft occurs when someone uses your personal information to open credit card and bank accounts, set up cell phone accounts, rent accommodation or equipment, or even to get a job in your name. Someone can use your information to forge a transfer deed and register title to a property in his own name, then forge a discharge of an existing mortgage and borrow against the clear title. By the time you realize there's a fraudulent mortgage on the property, the money and the bad guy are long gone.
"Although real estate title fraud is far less frequent than other forms of fraud involving identity theft, it is a violation that can have devastating and long-lasting effects on its victims," says Gary Ford, vice-president of First Canadian Title. "And one of the great injustices about this type of fraud is that perpetrators are rarely caught."
One of the first things to do to prevent being a victim of identity theft is clean unnecessary cards out of your wallet. Social insurance cards and birth certificates should be kept in a secure place such as a safety deposit box. You should also carefully guard your account numbers for your bank accounts, health card, driver's license and credit card. Don't let your mail pile up in your mailbox, and shred any receipts, copies of credit applications, insurance or medical forms and credit offers that you receive in the mail, First Canadian advises.
Title insurance covers all legal expenses related to restoring title. First Canadian also offers identity theft coverage when you obtain a title insurance policy.
The Canadian Association of Accredited Mortgage Professionals (CAAMP) says some other ways to avoid becoming a victim of real estate title fraud include keeping up-to-date with your credit and financial reports, and making sure there are no unauthorized transactions. Ask credit bureaus for your credit rating and review it regularly. CAAMP says you should rely on a real estate professional when buying or selling a home, and choose someone you trust. When arranging a mortgage, make sure you understand what you are signing.
In addition to various email and telephone scams designed to pry your personal information from you, the Competition Bureau recently commissioned a survey that assessed 12 types of mass marketing fraud that targets Canadians. It found that 58 per cent of Canadians reported they had been targeted, and that one million Canadians have fallen victim to a mass marketing fraud. The bureau says the total amount that Canadians have lost is at least $450 million.
"The survey results debunk the myth that the usual mass-marketing fraud victim is older and poorly educated," says the study. "In fact, anyone can be a victim … younger Canadians, including people 18 to 29 years of age, are highly susceptible to being victimized by mass marketing fraud operators, as are Canadians 30 to 44 years of age, reinforcing the fact that seniors are not disproportionately targeted by fraud artists in the country."
The 12 types of consumer frauds studied were chosen based on common complaints to the Canadian Anti-Fraud Call Centre. They were:
Prize, lottery and sweepstakes fraud – The victim is told he won something, but has to purchase something or pay an advance fee to get the prize. There is no prize.
West African or 419 fraud – The victim is asked to help transfer a large sum of money from another country to Canada, and asked to pay a fee before the "fortune" can be released. There is no fortune.
Employment/work from home fraud – The victim is offered a job or a chance to work at home, but must pay an advance fee to obtain materials. The materials are never sent.
Cheque cashing/money transfer fraud – The victim is given cheques or funds to cash and transfer, but they are counterfeit or stolen.
Overpayment for sale of merchandise – The target receives a counterfeit cheque or money order for more than the asking price of what they are selling, and asked to cash the cheque and send back the difference to the sender.
Advance fee loan – The victim is offered a loan, but first they must pay an advance fee. The loan never happens.
Upfront fee for credit card – The victim must pay an advance fee for a credit card, which never arrives.
Bill for unsuitable merchandise – The victim orders something from the Internet or a mail-order catalogue and pays up front, but never receives the goods.
Health products and cures – The victim buys a health product or cure that doesn't work.
Advance fee vacation – The victim is promised a free or discounted vacation as long as they pay a fee up front. There is no vacation.
High-pressure sales pitch vacation fraud – The target is offered a free gift or reward to attend a sales presentation, where he is subjected to high-pressure sales tactics and/or misleading offers.
Investment fraud – The victim is offered an investment opportunity promising higher than normal returns, but loses most of the money.
Remember the golden rule: if it sounds too good to be true, it probably is.
March is Fraud Prevention Month in Canada and around the world, which has prompted the Competition Bureau and more than 100 partners to launch the Fraud Prevention Forum Page. It includes lots more information about fraud in Canada, along with interactive Web tools and updated fraud warnings.
Monday, March 17, 2008
Going green can save you green in the long run.
It Doesn't Take That Much Green To Go Green
by Blanche Evans - Mon, Mar 17, 2008 Provided by RealtyTimes.com
Greenbuilding is going to be part of our homes and businesses from now on. We all want to help the environment, but what can the individual homeowner do that will make a difference? The answer is plenty, and it doesn't have to cost you a lot of green to go green.
Whether you are remodeling, building a new home, or simply staying put, you can learn how to choose green by visiting a few websites.
Buy Green -- EnergyStar.gov
Start with EnergyStar.gov, a public service from the U.S. Department of Energy and The Environmental Protection Agency.
This site shows consumers how to buy green.
Since you have to replace lightbulbs once in a while, stop buying incandescent lightbulbs and go for the new compact fluorescent lightbulbs. They're about four to five times as expensive, but the savings is enormous -- about $30 in energy costs over the life of the bulb. They also put out 75 percent less heat, so that might save you even more money on your air conditioning this summer.
EnergyStar also rates appliances. Those that meet approval can save consumers as much as $80 a year in operating costs because they use 10 to 50 percent less energy and water.
To see what's hot in kitchens, baths and fixtures, go to CapitalDistributing.com. Senior designer Helene Terry suggests that if you're going to spend money on a single appliance, make it a good front-loading washing machine. "Your clothes come out cleaner and you'll find your drying time is cut to a fraction," she says.
Remodel Green -- CapitalDistributing.com
To update your home, you can go green with products that save you money without sacrificing style.
Wood products for cabinets and floors are in demand, but designers are turning to harvested woods that quickly regenerate themselves like Lyptus or Bamboo, so they're less expensive than oak hardwoods. Reconstituted Engineered Veneers made from poplar trees are imprinted with CAD technologis to look like exotic Zebrawood or Ebony and laminated for long wear.
Granite countertops are still fashionable, but they aren't environmentally friendly. Think of all the gas that's burned transporting them from place to place. What's de riquer today is engineered stone, made of particles of granite and quartz for a non-porous finish. Enviroglas is made from recycled glass.
"If you see brown particles, that's likely from a beer bottle that was recycled," laughs Terry.
Build Green -- NAHBgreen.org
What if you want to build? The National Association of Home Builders has a green site at www.nahbgreen.org.
"Greenbuilding is incorporating environmental considerations in the development, design and plan of a home," explains Callie Schmitt, director of environmental communications, NAHB. "It's water efficiency, xerioscaping (native landscaping), tankless water heaters, and trees that shade in summer and let in light in winter."
You can use the site to look for a green builder, someone trained in resource efficiency. And you can make your purchase decisions based on rebates and incentives from the federal government or your own state.
Start your greenbuilding with an Energy Efficient Mortgage -- available to those who are remodeling or building using green techniques. An EEM allows you to roll green consumer products into your mortgage loan, among other benefits.
Going green may cost a little more initially, but the backend savings are well worth it
by Blanche Evans - Mon, Mar 17, 2008 Provided by RealtyTimes.com
Greenbuilding is going to be part of our homes and businesses from now on. We all want to help the environment, but what can the individual homeowner do that will make a difference? The answer is plenty, and it doesn't have to cost you a lot of green to go green.
Whether you are remodeling, building a new home, or simply staying put, you can learn how to choose green by visiting a few websites.
Buy Green -- EnergyStar.gov
Start with EnergyStar.gov, a public service from the U.S. Department of Energy and The Environmental Protection Agency.
This site shows consumers how to buy green.
Since you have to replace lightbulbs once in a while, stop buying incandescent lightbulbs and go for the new compact fluorescent lightbulbs. They're about four to five times as expensive, but the savings is enormous -- about $30 in energy costs over the life of the bulb. They also put out 75 percent less heat, so that might save you even more money on your air conditioning this summer.
EnergyStar also rates appliances. Those that meet approval can save consumers as much as $80 a year in operating costs because they use 10 to 50 percent less energy and water.
To see what's hot in kitchens, baths and fixtures, go to CapitalDistributing.com. Senior designer Helene Terry suggests that if you're going to spend money on a single appliance, make it a good front-loading washing machine. "Your clothes come out cleaner and you'll find your drying time is cut to a fraction," she says.
Remodel Green -- CapitalDistributing.com
To update your home, you can go green with products that save you money without sacrificing style.
Wood products for cabinets and floors are in demand, but designers are turning to harvested woods that quickly regenerate themselves like Lyptus or Bamboo, so they're less expensive than oak hardwoods. Reconstituted Engineered Veneers made from poplar trees are imprinted with CAD technologis to look like exotic Zebrawood or Ebony and laminated for long wear.
Granite countertops are still fashionable, but they aren't environmentally friendly. Think of all the gas that's burned transporting them from place to place. What's de riquer today is engineered stone, made of particles of granite and quartz for a non-porous finish. Enviroglas is made from recycled glass.
"If you see brown particles, that's likely from a beer bottle that was recycled," laughs Terry.
Build Green -- NAHBgreen.org
What if you want to build? The National Association of Home Builders has a green site at www.nahbgreen.org.
"Greenbuilding is incorporating environmental considerations in the development, design and plan of a home," explains Callie Schmitt, director of environmental communications, NAHB. "It's water efficiency, xerioscaping (native landscaping), tankless water heaters, and trees that shade in summer and let in light in winter."
You can use the site to look for a green builder, someone trained in resource efficiency. And you can make your purchase decisions based on rebates and incentives from the federal government or your own state.
Start your greenbuilding with an Energy Efficient Mortgage -- available to those who are remodeling or building using green techniques. An EEM allows you to roll green consumer products into your mortgage loan, among other benefits.
Going green may cost a little more initially, but the backend savings are well worth it
Fed chairman dedicated to easing mortgage crunch.
Bernanke outlines mortgage help plan
Fed chief says central bank 'strongly committed' to easing mortgage crisis.
Federal Reserve chairman Ben Bernanke outlined the Fed's response to the subprime crisis Friday.
NEW YORK (CNNMoney.com) -- Federal Reserve chairman Ben Bernanke outlined the central bank's proposal Friday to stem the subprime meltdown.
In a speech at the National Community Reinvestment Coalition's annual meeting, Bernanke said that the Fed is working to curb unfair lending practices to protect borrowers of adjustable rate mortgages.
"The Federal Reserve is strongly committed to fully employing our authority, expertise, and resources to help alleviate [borrowers'] distress," Bernanke said in written remarks.
Bernanke outlined four responses the Fed is proposing to alleviate the crisis:
Prohibiting lenders from issuing loans that borrowers cannot repay. Much of the mortgage crisis was pegged to borrowers that took out loans with low initial rates that reset to much higher rates down the road. Many homeowners could not afford the higher rates and their loans resulted in foreclosure.
Make lenders verify the income and assets of the borrower. Often called "stated income" lending, lenders would issue credit approvals for borrowers with poor credit or insufficient income to repay a loan.
Require escrow accounts for higher-priced loans. For borrowers who do not understand the scope of repaying loans, the Fed suggests higher-priced loans have a separate account for real estate taxes and hazard insurance, which is standard in prime lending.
Ban repayment penalties including "loan-flipping." The Fed proposes to ban schemes in which lenders force borrowers to refinance at a higher rate that they cannot afford.
"Our goal was to produce clear and comprehensive rules to protect consumers from unfair practices while maintaining the viability of a market for responsible mortgage lending," said Bernanke.
President Bush also addressed the housing crisis Friday. Speaking before The Economic Club of New York, Bush acknowledged Friday the country was facing challenges both in the housing and financial markets, but said that the strength of the underlying economy would help it maneuver through this difficult period.
But he also called on Congress to take additional steps to help alleviate the woes resulting from the housing crisis, including reforming government-sponsored enterprises Fannie Mae and Freddie Mac. He also pushed lawmakers to modernize the Federal Housing Administration and to extend tax cuts on capital gains and set to expire in the coming years.
First Published: March 14, 2008: 1:03 PM EDT
Fed chief says central bank 'strongly committed' to easing mortgage crisis.
Federal Reserve chairman Ben Bernanke outlined the Fed's response to the subprime crisis Friday.
NEW YORK (CNNMoney.com) -- Federal Reserve chairman Ben Bernanke outlined the central bank's proposal Friday to stem the subprime meltdown.
In a speech at the National Community Reinvestment Coalition's annual meeting, Bernanke said that the Fed is working to curb unfair lending practices to protect borrowers of adjustable rate mortgages.
"The Federal Reserve is strongly committed to fully employing our authority, expertise, and resources to help alleviate [borrowers'] distress," Bernanke said in written remarks.
Bernanke outlined four responses the Fed is proposing to alleviate the crisis:
Prohibiting lenders from issuing loans that borrowers cannot repay. Much of the mortgage crisis was pegged to borrowers that took out loans with low initial rates that reset to much higher rates down the road. Many homeowners could not afford the higher rates and their loans resulted in foreclosure.
Make lenders verify the income and assets of the borrower. Often called "stated income" lending, lenders would issue credit approvals for borrowers with poor credit or insufficient income to repay a loan.
Require escrow accounts for higher-priced loans. For borrowers who do not understand the scope of repaying loans, the Fed suggests higher-priced loans have a separate account for real estate taxes and hazard insurance, which is standard in prime lending.
Ban repayment penalties including "loan-flipping." The Fed proposes to ban schemes in which lenders force borrowers to refinance at a higher rate that they cannot afford.
"Our goal was to produce clear and comprehensive rules to protect consumers from unfair practices while maintaining the viability of a market for responsible mortgage lending," said Bernanke.
President Bush also addressed the housing crisis Friday. Speaking before The Economic Club of New York, Bush acknowledged Friday the country was facing challenges both in the housing and financial markets, but said that the strength of the underlying economy would help it maneuver through this difficult period.
But he also called on Congress to take additional steps to help alleviate the woes resulting from the housing crisis, including reforming government-sponsored enterprises Fannie Mae and Freddie Mac. He also pushed lawmakers to modernize the Federal Housing Administration and to extend tax cuts on capital gains and set to expire in the coming years.
First Published: March 14, 2008: 1:03 PM EDT
Sunday, March 16, 2008
How to Profit From the Housing Downturn.
How to Profit From the Housing Downturn
by Peter McDougall
Tuesday, March 11, 2008
provided by TheStreet.com
The housing crisis has driven the economy to the brink of -- or possibly into -- a recession.
But there's a silver lining to the situation, particularly when it comes to real estate.
You can take advantage of the downturn, even if you are happy in your home.
Many analysts predict that home prices will stabilize this year, with improvements coming sometime in 2009.
Combined with high inventory of homes for sale and low prices in many areas of the country, these factors make now a particularly good time to buy, especially if you're in one of the following categories:
First-Time Buyer
The market downturn is a great opportunity to move from tenant to homeowner.
Some phenomenal bargains are available to prospective buyers who can secure the proper financing. Lenders have tightened restrictions, but they are still approving loan applications -- all it takes is good credit and a little extra paperwork.
You might be able to get an even better deal by taking advantage of incentives -- such as lower interest rates and smaller down payments -- that many states offer for first-time home buyers. Check the database of state and local housing programs compiled by the U.S. Department of Housing and Urban Development for programs in your area.
Upwardly Mobile Buyer
If you're staying in the same market, this could be a good time to trade up. Crunch the numbers to find out.
Say you're in a $300,000 home and want to upgrade to a $450,000 house. To do so in a stable market, you'd have to pay an extra $150,000 (ignoring the extra costs involved with moving). But if both houses suffer a 10% price decline, that difference drops to $135,000: Your home is down $30,000, but the new house drops $45,000.
And not all markets are created equal. The biggest decline in house prices occurred in cities that experienced the largest gains during the boom, such as Miami, San Diego and Las Vegas.
How to Take Advantage of the Current Market
The trick to getting a deal on the home of your dreams is to find a home currently owned by a motivated seller -- someone who desperately wants to offload their home, perhaps because of high mortgage payments, a job offer out of state or simply a deal that's about to close on a new house.
One key indicator of a motivated seller is the number of days a house has been on the market. Another hint is the number of times the sellers have dropped the price.
You'd be hard pressed to find this information on your own. For obvious reasons, sellers -- and their real estate agents -- prefer not to advertise the fact that they really want to sell.
As a result, your best bet for finding a deal is to hire a buyer's agent, who will have access to a wealth of data about the local market. Unlike a seller's agent, who represents the homeowner's interests, a buyer's agent looks out for you. Agents who belong to the National Association of Exclusive Buyer Agents have a fiduciary responsibility to their clients and agree to a code of ethics that prohibits conflicts of interests. Typically, the buyer's agent splits the standard 6% real estate commission -- paid for by the seller -- with the seller's agent.
Your agent's data, including information about what the current owners originally paid for the house, will help narrow your search down to the likeliest candidates.
As you look at houses, remember to take your time. If a house doesn't seem quite right, don't feel like you have to compromise.
With so many houses on the market, you've got plenty more to choose from.
by Peter McDougall
Tuesday, March 11, 2008
provided by TheStreet.com
The housing crisis has driven the economy to the brink of -- or possibly into -- a recession.
But there's a silver lining to the situation, particularly when it comes to real estate.
You can take advantage of the downturn, even if you are happy in your home.
Many analysts predict that home prices will stabilize this year, with improvements coming sometime in 2009.
Combined with high inventory of homes for sale and low prices in many areas of the country, these factors make now a particularly good time to buy, especially if you're in one of the following categories:
First-Time Buyer
The market downturn is a great opportunity to move from tenant to homeowner.
Some phenomenal bargains are available to prospective buyers who can secure the proper financing. Lenders have tightened restrictions, but they are still approving loan applications -- all it takes is good credit and a little extra paperwork.
You might be able to get an even better deal by taking advantage of incentives -- such as lower interest rates and smaller down payments -- that many states offer for first-time home buyers. Check the database of state and local housing programs compiled by the U.S. Department of Housing and Urban Development for programs in your area.
Upwardly Mobile Buyer
If you're staying in the same market, this could be a good time to trade up. Crunch the numbers to find out.
Say you're in a $300,000 home and want to upgrade to a $450,000 house. To do so in a stable market, you'd have to pay an extra $150,000 (ignoring the extra costs involved with moving). But if both houses suffer a 10% price decline, that difference drops to $135,000: Your home is down $30,000, but the new house drops $45,000.
And not all markets are created equal. The biggest decline in house prices occurred in cities that experienced the largest gains during the boom, such as Miami, San Diego and Las Vegas.
How to Take Advantage of the Current Market
The trick to getting a deal on the home of your dreams is to find a home currently owned by a motivated seller -- someone who desperately wants to offload their home, perhaps because of high mortgage payments, a job offer out of state or simply a deal that's about to close on a new house.
One key indicator of a motivated seller is the number of days a house has been on the market. Another hint is the number of times the sellers have dropped the price.
You'd be hard pressed to find this information on your own. For obvious reasons, sellers -- and their real estate agents -- prefer not to advertise the fact that they really want to sell.
As a result, your best bet for finding a deal is to hire a buyer's agent, who will have access to a wealth of data about the local market. Unlike a seller's agent, who represents the homeowner's interests, a buyer's agent looks out for you. Agents who belong to the National Association of Exclusive Buyer Agents have a fiduciary responsibility to their clients and agree to a code of ethics that prohibits conflicts of interests. Typically, the buyer's agent splits the standard 6% real estate commission -- paid for by the seller -- with the seller's agent.
Your agent's data, including information about what the current owners originally paid for the house, will help narrow your search down to the likeliest candidates.
As you look at houses, remember to take your time. If a house doesn't seem quite right, don't feel like you have to compromise.
With so many houses on the market, you've got plenty more to choose from.
Spring Checklist
A Spring Checklist for Your Home
by Marshall Loeb
Tuesday, March 11, 2008
provided by MarketWatch
Whether you're selling or not, check these 5 home trouble spots
Don't let problems around the house turn into money drains. To help you protect your most valuable asset -- your home -- Consumer Reports suggests you should be on the lookout for these five potential issues and learn how to fix them:
1. Hazardous deck. Look for water stains where the deck ties to the house. Ongoing water leakage can lead to wood decay, weakening the deck structure and the house. If you have any doubt about the structural integrity of the deck, call a professional to investigate. Rid your deck of moss and mold with the help of pressure washers. Remember, if you see wood damage, like raised fibers, increase the distance between the spray nozzle and the decking.
2. Dirty air conditioner. Disconnect electric power to the outdoor condenser on your air conditioner and clear it of leaves and debris with a vent brush, power blower, garden hose or the brush attachment on your vacuum cleaner. If the cooling fins are exposed, be careful not to bend them. (If your yard has lots of trees and plants, wrap fiberglass mesh around the condenser coil to capture pollen and leaves. Replace the mesh as needed. Don't allow debris to block airflow.) Vacuum the grille and register inside the home to ensure good airflow. And change your furnace filter.
3. Foundation fissures. Hairline cracks in foundation walls might be the result of concrete curing or minor settling and aren't automatically cause for alarm. Mark them with tape and check them again in a few months. If they've worsened, call a structural engineer. If they're stable, fill them with an epoxy-injection system. Also, fill in holes in siding and foundation walls with expandable foam. Check that the ground around the foundation slopes away from the house (about 1 inch per foot). Look for pellet-shaped droppings or shed wings from termites. Clear the area of leaves, in which rodents can nest.
4. Faulty garage-door opener. To check that the door is balanced, release it into the manual mode and lift it by hand. The door should lift easily and smoothly and stay open on its own about 3 feet off the ground. If it doesn't, hire a garage-door technician to counterbalance its overhead spring . Next, set the reversing force on the opener as low as possible. Place a 2x4 board on the ground under the door, wide side down. The door should pop back up when it hits the 2x4. If it doesn't, call a garage-door pro. Test the photoelectric eyes by holding the 2x4 between them. The door should reverse direction. If it doesn't, have it checked by a pro.
5. Leaky roof. Leaks typically occur around an inadequately flashed chimney, skylight or other opening. They're easiest to spot in the attic; inspect the rafters for water stains. Patching leaks is best left to a professional. While the contractor is on the roof, have him clean leaves from roof valleys. Examine the siding under roof eaves, and the ceilings in the rooms below, for water or discoloration, indications that ice dams might have created leaks along the roof edge.
Inspect the roof for cracked, curled or missing shingles. Asphalt shingles typically last 20 years.
by Marshall Loeb
Tuesday, March 11, 2008
provided by MarketWatch
Whether you're selling or not, check these 5 home trouble spots
Don't let problems around the house turn into money drains. To help you protect your most valuable asset -- your home -- Consumer Reports suggests you should be on the lookout for these five potential issues and learn how to fix them:
1. Hazardous deck. Look for water stains where the deck ties to the house. Ongoing water leakage can lead to wood decay, weakening the deck structure and the house. If you have any doubt about the structural integrity of the deck, call a professional to investigate. Rid your deck of moss and mold with the help of pressure washers. Remember, if you see wood damage, like raised fibers, increase the distance between the spray nozzle and the decking.
2. Dirty air conditioner. Disconnect electric power to the outdoor condenser on your air conditioner and clear it of leaves and debris with a vent brush, power blower, garden hose or the brush attachment on your vacuum cleaner. If the cooling fins are exposed, be careful not to bend them. (If your yard has lots of trees and plants, wrap fiberglass mesh around the condenser coil to capture pollen and leaves. Replace the mesh as needed. Don't allow debris to block airflow.) Vacuum the grille and register inside the home to ensure good airflow. And change your furnace filter.
3. Foundation fissures. Hairline cracks in foundation walls might be the result of concrete curing or minor settling and aren't automatically cause for alarm. Mark them with tape and check them again in a few months. If they've worsened, call a structural engineer. If they're stable, fill them with an epoxy-injection system. Also, fill in holes in siding and foundation walls with expandable foam. Check that the ground around the foundation slopes away from the house (about 1 inch per foot). Look for pellet-shaped droppings or shed wings from termites. Clear the area of leaves, in which rodents can nest.
4. Faulty garage-door opener. To check that the door is balanced, release it into the manual mode and lift it by hand. The door should lift easily and smoothly and stay open on its own about 3 feet off the ground. If it doesn't, hire a garage-door technician to counterbalance its overhead spring . Next, set the reversing force on the opener as low as possible. Place a 2x4 board on the ground under the door, wide side down. The door should pop back up when it hits the 2x4. If it doesn't, call a garage-door pro. Test the photoelectric eyes by holding the 2x4 between them. The door should reverse direction. If it doesn't, have it checked by a pro.
5. Leaky roof. Leaks typically occur around an inadequately flashed chimney, skylight or other opening. They're easiest to spot in the attic; inspect the rafters for water stains. Patching leaks is best left to a professional. While the contractor is on the roof, have him clean leaves from roof valleys. Examine the siding under roof eaves, and the ceilings in the rooms below, for water or discoloration, indications that ice dams might have created leaks along the roof edge.
Inspect the roof for cracked, curled or missing shingles. Asphalt shingles typically last 20 years.
Fed Cuts Rate Again
Fed Cuts Lending Rate to Financial Institutions to 3.25%
Associated Press
WASHINGTON -- Federal Reserve Chairman Ben Bernanke said new steps announced by the central bank Sunday should help squeezed financial institutions get cash infusions-- a fresh effort to provide relief to a spreading credit crisis that threatens to plunge the economy into recession.
The central bank approved a cut in its lending rate to financial institutions to 3.25% from 3.50%, effective immediately, and created another lending facility for big investment banks to secure short-term loans.
"These steps will provide financial institutions with greater assurance of access to funds," Bernanke told reporters in a brief conference call Sunday evening.
The new lending facility will be available to financial institutions on Monday.
It will be in place for at least six months and "may be extended as conditions warrant," the Fed said. The interest rate will be 3.25% and a range of collateral -- including investment-grade mortgage backed securities -- will be accepted to back the loans.
The steps are "designed to bolster market liquidity and promote orderly market functioning," the Fed said in a statement. "Liquid well-functioning markets are essential for the promotion of economic growth."
The Fed also approved the financing arrangement announced Sunday in which JPMorgan Chase & Co. (JPM: 36.54, -1.57, -4.11%) will acquire rival Bear Stearns Cos. (BSC: 30.00, -27.00, -47.36%) The deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks. The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
Treasury Secretary Henry Paulson said he was pleased by Sunday's developments.
"Last Friday, I said that market participants are addressing challenges and I am pleased with recent developments. I appreciate the additional actions taken this evening by the Federal Reserve to enhance the stability, liquidity and orderliness of our markets," he said.
The Fed's actions are the latest in a recent string of unconventional steps to deal with a worsening credit crisis that has unhinged Wall Street. And, the action comes just two days before the central bank's scheduled meeting on Tuesday, where another big cut to a key interest rate that affects millions of people and businesses is expected to be ordered.
The "discount" rate cut announced Sunday covers only short-term loans that financial institutions get directly from the Federal Reserve.
Even with the Fed's aggressive moves, economic and financial conditions keep deteriorating.
The Fed in recent days has taken extraordinary steps to help banks and Wall Street investment firms survive the stresses of the credit crisis. Financial institutions have racked up multibillion-dollar losses when mortgage-backed investments soured with the collapse of the housing market.
The Fed this past week also said it would pour as much as $200 billion into big Wall Street banks and investment houses and allow them to put up risky home-loan packages as collateral. This maneuver was intended to bring sorely needed relief in the market for mortgage securities. The Fed also has offered as much as $200 billion in short-term loans to banks and large financial institutions.
Associated Press
WASHINGTON -- Federal Reserve Chairman Ben Bernanke said new steps announced by the central bank Sunday should help squeezed financial institutions get cash infusions-- a fresh effort to provide relief to a spreading credit crisis that threatens to plunge the economy into recession.
The central bank approved a cut in its lending rate to financial institutions to 3.25% from 3.50%, effective immediately, and created another lending facility for big investment banks to secure short-term loans.
"These steps will provide financial institutions with greater assurance of access to funds," Bernanke told reporters in a brief conference call Sunday evening.
The new lending facility will be available to financial institutions on Monday.
It will be in place for at least six months and "may be extended as conditions warrant," the Fed said. The interest rate will be 3.25% and a range of collateral -- including investment-grade mortgage backed securities -- will be accepted to back the loans.
The steps are "designed to bolster market liquidity and promote orderly market functioning," the Fed said in a statement. "Liquid well-functioning markets are essential for the promotion of economic growth."
The Fed also approved the financing arrangement announced Sunday in which JPMorgan Chase & Co. (JPM: 36.54, -1.57, -4.11%) will acquire rival Bear Stearns Cos. (BSC: 30.00, -27.00, -47.36%) The deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks. The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
Treasury Secretary Henry Paulson said he was pleased by Sunday's developments.
"Last Friday, I said that market participants are addressing challenges and I am pleased with recent developments. I appreciate the additional actions taken this evening by the Federal Reserve to enhance the stability, liquidity and orderliness of our markets," he said.
The Fed's actions are the latest in a recent string of unconventional steps to deal with a worsening credit crisis that has unhinged Wall Street. And, the action comes just two days before the central bank's scheduled meeting on Tuesday, where another big cut to a key interest rate that affects millions of people and businesses is expected to be ordered.
The "discount" rate cut announced Sunday covers only short-term loans that financial institutions get directly from the Federal Reserve.
Even with the Fed's aggressive moves, economic and financial conditions keep deteriorating.
The Fed in recent days has taken extraordinary steps to help banks and Wall Street investment firms survive the stresses of the credit crisis. Financial institutions have racked up multibillion-dollar losses when mortgage-backed investments soured with the collapse of the housing market.
The Fed this past week also said it would pour as much as $200 billion into big Wall Street banks and investment houses and allow them to put up risky home-loan packages as collateral. This maneuver was intended to bring sorely needed relief in the market for mortgage securities. The Fed also has offered as much as $200 billion in short-term loans to banks and large financial institutions.
Thursday, March 13, 2008
Real Estate Outlook: Positive Trends
You might assume from the steady drumbeat of bad news about housing and real estate that there's nothing encouraging out there in the economy.
But you'd be wrong. And you might just be missing some positives in the market equation that you could put to work for you.
So amid the gloom and doom, here are a few examples of trends that are at least slightly hopeful … and might even be helpful:
Number One: New mortgage applications nationwide jumped last week for the first time in more than a month, according to the Mortgage Bankers Association.
New applications for loans to purchase houses -- a very important indicator of home buying in the months ahead -- were up by 1.4 percent on a seasonally-adjusted basis. But they rose by a surprising 14 and a half percent on an unadjusted basis -- that's the raw numbers last week compared with the week before.
Why the sudden increase? Probably because 30-year fixed rates dropped by a third of a percentage point … down to 5.98 percent from 6.27 percent the week before. Home shoppers have been watching mortgage rates bounce around for the last month -- sometimes getting as high as the mid 6 percent range. So when they saw rates plummet, they put in their loan applications -- and locked.
Number Two: You might smile at this, but the fact is this. The pending home sales index didn't decline last month as many economists had predicted after months of negative numbers. It just stayed flat.
In a market that's been going negative, "flat" looks pretty good -- a sign that maybe -- just maybe -- two years plus of sales declines might be bottoming out, or could do so soon.
Number Three: The Federal Reserve is expected to keep turning the dial down on short-term interest rates -- whatever it takes to kick-start the U.S. economy back into growth mode. Look for another quarter point cut in rates next week -- and maybe more in the weeks ahead.
Now, we're the first to admit that these could be just bright, momentary specks in a real estate economy that otherwise looks pretty dark. But the cost of money is critically important to home buying … and as long as rates stay low, at some point they intersect with declining home prices and consumers begin to say: "Hey! There are some attractive deals out there."
And they'll be right. And the market will have bottomed out, even though no one saw it coming because the rest of the economic news sounded so bad.
-Yahoo/Realty Times-
But you'd be wrong. And you might just be missing some positives in the market equation that you could put to work for you.
So amid the gloom and doom, here are a few examples of trends that are at least slightly hopeful … and might even be helpful:
Number One: New mortgage applications nationwide jumped last week for the first time in more than a month, according to the Mortgage Bankers Association.
New applications for loans to purchase houses -- a very important indicator of home buying in the months ahead -- were up by 1.4 percent on a seasonally-adjusted basis. But they rose by a surprising 14 and a half percent on an unadjusted basis -- that's the raw numbers last week compared with the week before.
Why the sudden increase? Probably because 30-year fixed rates dropped by a third of a percentage point … down to 5.98 percent from 6.27 percent the week before. Home shoppers have been watching mortgage rates bounce around for the last month -- sometimes getting as high as the mid 6 percent range. So when they saw rates plummet, they put in their loan applications -- and locked.
Number Two: You might smile at this, but the fact is this. The pending home sales index didn't decline last month as many economists had predicted after months of negative numbers. It just stayed flat.
In a market that's been going negative, "flat" looks pretty good -- a sign that maybe -- just maybe -- two years plus of sales declines might be bottoming out, or could do so soon.
Number Three: The Federal Reserve is expected to keep turning the dial down on short-term interest rates -- whatever it takes to kick-start the U.S. economy back into growth mode. Look for another quarter point cut in rates next week -- and maybe more in the weeks ahead.
Now, we're the first to admit that these could be just bright, momentary specks in a real estate economy that otherwise looks pretty dark. But the cost of money is critically important to home buying … and as long as rates stay low, at some point they intersect with declining home prices and consumers begin to say: "Hey! There are some attractive deals out there."
And they'll be right. And the market will have bottomed out, even though no one saw it coming because the rest of the economic news sounded so bad.
-Yahoo/Realty Times-
Wednesday, March 12, 2008
Reviving the Real Estate Market
Robert J. Samuelson / Newsweek
Mar 5, 2008
Reviving the Real Estate Market
Why lower home prices are the only true solution to the housing collapse.
Gloom. Doom. Calamity. Home prices are tumbling. We're bombarded by somber reports. But wait—this is actually good news, because lower home prices are the only real solution to the housing collapse. The sooner prices fall the better. The longer the adjustment takes, the longer the housing slump (weak sales, low construction, high numbers of unsold homes) will last.
It's elementary economics. Pretend that houses are apples. We have 1,000 apples, priced at $1 each. They don't sell. We can either keep the price at $1 and watch the apples rot or cut the price until people buy. Housing is no different.
Even many economists—who should know better—describe the present situation as an oversupply of unsold homes. True, there is about 10 months' supply of existing homes, as opposed to four months a few years ago. But the real problem is insufficient demand. There aren't more homes than there are Americans who want homes; that would be a true surplus. There's so much supply because many prospective customers can't buy at today's prices.
By definition, the "housing bubble" meant that home prices got too high. Easy credit, lax lending standards and panic buying raised them to foolish levels. Weak borrowers got loans. People with good credit borrowed too much. Speculators joined the circus.
Look at some numbers from the National Association of Realtors. From 2000 to 2006 median family income rose almost 14 percent, to $57,612. Over the same period the median-price of an existing home increased about 50 percent, to $221,900. By other indicators the increase was even greater.
But home prices could not rise faster than incomes forever. Inevitably the bust arrived. Credit standards have been tightened, and the (false) hope of perpetually rising home prices—along with the possibility of always selling at a profit—has evaporated. For many potential buyers prices have to drop for housing to become affordable.
How much? No one really knows. There is no national housing market. Prices and family incomes vary by state, city and neighborhood. Prices rose faster in some areas (Los Angeles, Miami, Phoenix) than in others (Dallas, Detroit, Minneapolis). Some economists now expect an average national decline of about 20 percent. The Federal Reserve estimates that owner-occupied real estate is worth almost $21 trillion. A 20 percent reduction implies losses of about $4 trillion.
The largest part would be paper losses for homeowners: values that rose spectacularly will now fall less spectacularly, back to roughly 2004 levels. That's still 30 percent or so higher than in 2000. But hundreds of billions of dollars of other losses are already being suffered by builders (from the lower value of land and home inventories), mortgage lenders (from defaulting loans), speculators and homeowners (from lost homes). Mark Zandi of Moody's Economy.com estimates that mortgage defaults this year will exceed 2 million, up from 893,000 in 2006.
To be sure, all this weakens the economy. No one relishes evicting hundreds of thousands of families from their homes. Eroding real estate values make many consumers less willing to borrow and spend. Some economists fear a vicious downward spiral of home prices. More foreclosures depress prices, increasing foreclosures as people abandon houses on which the mortgage exceeds the value. Losses to banks and other lenders rise, and they curb lending further. Particularly vulnerable would be Fannie Mae and Freddie Mac, the two government-sponsored housing lenders. (Their vulnerability emphasizes the need for Congress to pass legislation strengthening regulation of Fannie and Freddie.)
Up to a point there's a case for providing relief to some mortgage borrowers. In many cases everyone would gain if lenders and borrowers renegotiated loan terms to reduce monthly payments. Losses to both would be less than if their homes went into foreclosure and were sold. The Treasury has organized voluntary efforts. Some measures being considered by Congress might help (for example: overhauling the Federal Housing Administration). But other proposals—particularly empowering bankruptcy judges to reduce mortgages unilaterally—would perversely hurt the housing market by raising the cost of mortgage credit. Lenders would increase interest rates or down payments to compensate for the risk that a court might modify or nullify their loans.
The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today's homeowners makes little sense if it penalizes tomorrow's homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.
© 2008
Mar 5, 2008
Reviving the Real Estate Market
Why lower home prices are the only true solution to the housing collapse.
Gloom. Doom. Calamity. Home prices are tumbling. We're bombarded by somber reports. But wait—this is actually good news, because lower home prices are the only real solution to the housing collapse. The sooner prices fall the better. The longer the adjustment takes, the longer the housing slump (weak sales, low construction, high numbers of unsold homes) will last.
It's elementary economics. Pretend that houses are apples. We have 1,000 apples, priced at $1 each. They don't sell. We can either keep the price at $1 and watch the apples rot or cut the price until people buy. Housing is no different.
Even many economists—who should know better—describe the present situation as an oversupply of unsold homes. True, there is about 10 months' supply of existing homes, as opposed to four months a few years ago. But the real problem is insufficient demand. There aren't more homes than there are Americans who want homes; that would be a true surplus. There's so much supply because many prospective customers can't buy at today's prices.
By definition, the "housing bubble" meant that home prices got too high. Easy credit, lax lending standards and panic buying raised them to foolish levels. Weak borrowers got loans. People with good credit borrowed too much. Speculators joined the circus.
Look at some numbers from the National Association of Realtors. From 2000 to 2006 median family income rose almost 14 percent, to $57,612. Over the same period the median-price of an existing home increased about 50 percent, to $221,900. By other indicators the increase was even greater.
But home prices could not rise faster than incomes forever. Inevitably the bust arrived. Credit standards have been tightened, and the (false) hope of perpetually rising home prices—along with the possibility of always selling at a profit—has evaporated. For many potential buyers prices have to drop for housing to become affordable.
How much? No one really knows. There is no national housing market. Prices and family incomes vary by state, city and neighborhood. Prices rose faster in some areas (Los Angeles, Miami, Phoenix) than in others (Dallas, Detroit, Minneapolis). Some economists now expect an average national decline of about 20 percent. The Federal Reserve estimates that owner-occupied real estate is worth almost $21 trillion. A 20 percent reduction implies losses of about $4 trillion.
The largest part would be paper losses for homeowners: values that rose spectacularly will now fall less spectacularly, back to roughly 2004 levels. That's still 30 percent or so higher than in 2000. But hundreds of billions of dollars of other losses are already being suffered by builders (from the lower value of land and home inventories), mortgage lenders (from defaulting loans), speculators and homeowners (from lost homes). Mark Zandi of Moody's Economy.com estimates that mortgage defaults this year will exceed 2 million, up from 893,000 in 2006.
To be sure, all this weakens the economy. No one relishes evicting hundreds of thousands of families from their homes. Eroding real estate values make many consumers less willing to borrow and spend. Some economists fear a vicious downward spiral of home prices. More foreclosures depress prices, increasing foreclosures as people abandon houses on which the mortgage exceeds the value. Losses to banks and other lenders rise, and they curb lending further. Particularly vulnerable would be Fannie Mae and Freddie Mac, the two government-sponsored housing lenders. (Their vulnerability emphasizes the need for Congress to pass legislation strengthening regulation of Fannie and Freddie.)
Up to a point there's a case for providing relief to some mortgage borrowers. In many cases everyone would gain if lenders and borrowers renegotiated loan terms to reduce monthly payments. Losses to both would be less than if their homes went into foreclosure and were sold. The Treasury has organized voluntary efforts. Some measures being considered by Congress might help (for example: overhauling the Federal Housing Administration). But other proposals—particularly empowering bankruptcy judges to reduce mortgages unilaterally—would perversely hurt the housing market by raising the cost of mortgage credit. Lenders would increase interest rates or down payments to compensate for the risk that a court might modify or nullify their loans.
The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today's homeowners makes little sense if it penalizes tomorrow's homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.
© 2008
Monday, March 10, 2008
What is the Victorian style home?
Victorian
Victorian architecture dates from the second half of the 19th century, when America was exploring new approaches to building and design.
Advancements in machine technology meant that Victorian-era builders could easily incorporate mass-produced ornamentation such as brackets, spindles, and patterned shingles. The last true Victorians were constructed in the early 1900s, but contemporary builders often borrow Victorian ideas, designing eclectic "neo-Victorians." These homes combine modern materials with 19th century details, such as curved towers and spindled porches. A number of Victorian styles are recreated on the fanciful "Main Street" at Disney theme parks in Florida, California, and Europe.
-Realtor Magazine-
Sunday, March 9, 2008
FHA mortgage limits increase!
FHA mortgage limits increase to $365,000 in the Twin Cities Metro
Minneapolis, Minnesota (March 7, 2008) – HUD announced the new FHA mortgage limits created by the Fed's economic stimulus plan and the winner is...the Minneapolis–St. Paul metro area!
Why is this good news? FHA programs are now the best option for many buyers who fall short of meeting the downpayment and/or qualifying ratios required by conventional financing.
With the amount that can be borrowed using an FHA mortgage increasing from $271,050 to $365,000, an additional 25 percent of the homes currently on the market are candidates for FHA financing. This means more than 77 percent of homes currently for sale could be purchased using FHA. This important financing option brings additional buyers into the market who could not otherwise afford to purchase these homes.
More good news: A recent court ruling allows for home buyers to continue to use certain downpayment assistance programs when purchasing a home using an FHA mortgage.
Years ago, a large percentage of metro area home sales involved FHA financing. With the advent of alternate subprime conventional programs, FHA lost much of its market share. Unfortunately, we all know too well the problems created by some of the alternate subprime conventional programs.
FHA is not the irresponsible, overly exuberant mortgage program that some of the subprime programs proved to be. FHA has a long-proven track record of putting qualified buyers who were not eligible for traditional conventional mortgage programs into homes.
If you are not familiar with FHA financing, now is the time to learn. Talk with your broker and contact your mortgage specialist to learn what new options are available for your buyers. More information can also be obtained at www.fha.gov.
-mplsrealtor.com-
Minneapolis, Minnesota (March 7, 2008) – HUD announced the new FHA mortgage limits created by the Fed's economic stimulus plan and the winner is...the Minneapolis–St. Paul metro area!
Why is this good news? FHA programs are now the best option for many buyers who fall short of meeting the downpayment and/or qualifying ratios required by conventional financing.
With the amount that can be borrowed using an FHA mortgage increasing from $271,050 to $365,000, an additional 25 percent of the homes currently on the market are candidates for FHA financing. This means more than 77 percent of homes currently for sale could be purchased using FHA. This important financing option brings additional buyers into the market who could not otherwise afford to purchase these homes.
More good news: A recent court ruling allows for home buyers to continue to use certain downpayment assistance programs when purchasing a home using an FHA mortgage.
Years ago, a large percentage of metro area home sales involved FHA financing. With the advent of alternate subprime conventional programs, FHA lost much of its market share. Unfortunately, we all know too well the problems created by some of the alternate subprime conventional programs.
FHA is not the irresponsible, overly exuberant mortgage program that some of the subprime programs proved to be. FHA has a long-proven track record of putting qualified buyers who were not eligible for traditional conventional mortgage programs into homes.
If you are not familiar with FHA financing, now is the time to learn. Talk with your broker and contact your mortgage specialist to learn what new options are available for your buyers. More information can also be obtained at www.fha.gov.
-mplsrealtor.com-
What is the Tudor style?
Tudor
This architecture style was popular in the 1920s and 1930s and continues to be a mainstay in suburbs across the United States. The defining characteristics are half-timbering on bay windows and upper floors, and facades that are dominated by one or more steeply pitched cross gables. Patterned brick or stone walls are common, as are rounded doorways, multi-paned casement windows, and large stone chimneys. A subtype of the Tudor Revival style is the Cotswold Cottage. With a sloping roof and a massive chimney at the front, a Cotswold Cottage may remind you of a picturesque storybook home.
-Realtor Magazine-
Saturday, March 8, 2008
Affordability at four-year high!
Home sellers price homes aggressively in January
Prices and interest rates fall, affordability at four-year high
Minneapolis, Minnesota (February 12, 2008) – Buoyed by buyer advantage and seller motivation, Twin Cities home prices continue their downward slope, resulting in improved affordability, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
The unignorable and ignoble news is that the January 2008 median sales price of $205,000 is a decrease of 8.9 percent from January 2007. While this is challenging news to a home owner banking on short-term value returns on their property, it's a hopeful sign of good times ahead for those who believe that the market needs accessibility before it can truly improve.
"In simplified terms, things need to go down before they can get up," said Kevin Knudsen, 2008 MAAR President. "Affordability will help kick-start the rebound. It's elementary supply and demand."
The MAAR Housing Affordability Index (HAI) shot up eight points from last month to 149, the healthiest HAI figure since 2004. Further, the number of homes for sale has tripled in the same time, creating what is arguably now the most attractive market for buyers this decade.
Despite the opportunities, home buyers remain relatively inactive. Newly signed purchase agreements (pending sales) posted 2,562 units in January, 20.7 percent behind one year ago. Similarly, closed sales declined by 21.3 percent for the same time period comparison.
Slowed sales means slowed inventory absorption, and the number of homes for sale continues to post record levels. At the end of January, there were 28,166 homes for sale, which amounts to 10.02 homes for each buyer expected during the upcoming month.
The number of new listings on the market is declining, posting 8,322 units in January. This is down 6.8 percent from January 2007, as sellers and builders continue to cut down on adding new supply.
"You can sense a change in the air," said Steve Havig, 2008 MAAR President-Elect. "Needed market corrections are accelerating, which will eventually bring buyers out of the woodwork."
-mplsrealtor.com-
Prices and interest rates fall, affordability at four-year high
Minneapolis, Minnesota (February 12, 2008) – Buoyed by buyer advantage and seller motivation, Twin Cities home prices continue their downward slope, resulting in improved affordability, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
The unignorable and ignoble news is that the January 2008 median sales price of $205,000 is a decrease of 8.9 percent from January 2007. While this is challenging news to a home owner banking on short-term value returns on their property, it's a hopeful sign of good times ahead for those who believe that the market needs accessibility before it can truly improve.
"In simplified terms, things need to go down before they can get up," said Kevin Knudsen, 2008 MAAR President. "Affordability will help kick-start the rebound. It's elementary supply and demand."
The MAAR Housing Affordability Index (HAI) shot up eight points from last month to 149, the healthiest HAI figure since 2004. Further, the number of homes for sale has tripled in the same time, creating what is arguably now the most attractive market for buyers this decade.
Despite the opportunities, home buyers remain relatively inactive. Newly signed purchase agreements (pending sales) posted 2,562 units in January, 20.7 percent behind one year ago. Similarly, closed sales declined by 21.3 percent for the same time period comparison.
Slowed sales means slowed inventory absorption, and the number of homes for sale continues to post record levels. At the end of January, there were 28,166 homes for sale, which amounts to 10.02 homes for each buyer expected during the upcoming month.
The number of new listings on the market is declining, posting 8,322 units in January. This is down 6.8 percent from January 2007, as sellers and builders continue to cut down on adding new supply.
"You can sense a change in the air," said Steve Havig, 2008 MAAR President-Elect. "Needed market corrections are accelerating, which will eventually bring buyers out of the woodwork."
-mplsrealtor.com-
Friday, March 7, 2008
What is the Stick style home?
Stick
A member of the Victorian family, the Stick house boasts a lot of detailing. However, few Stick homes incorporate all the possible features. Typical characteristics include gabled, steeply pitched roofs with overhangs; wooden shingles covering the exterior walls and roof; horizontal, vertical, or diagonal boards--the "sticks" from which it takes its name--that decorate the cladding; and porches.
You'll find traditional sticks in the Northeast and their sister, the Western Stick, in California. The Western Stick is rectangular with sliding glass doors, a small chimney, and large panes of glass.
-Realtor Magazine-
Wednesday, March 5, 2008
What is the Split Level home?
Split Level
A Modern style that architects created to sequester certain living activities--such as sleeping or socializing--split levels offered an multilevel alternative to the ubiquitous style in the 1950s. The nether parts of a typical design were devoted to a garage and TV room; the midlevel, which usually jutted out from the two-story section, offered "quieter" quarters, such as the living and dining rooms; and the area above the garage was designed for bedrooms.
Found mostly in the East and Midwest, split-levels, like their Ranch counterparts, were constructed with various building materials.
-Realtor Magazine-
What do all the letters & designations mean?
Accredited Buyer Representative (ABR)
With over 20,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 11,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.
--------------------------------------------------------------------------------
Accredited Buyer Representative Manager (ABRM)
Geared to real estate firm brokers, owners and managers that have or wish to incorporate buyer representation into their daily practice, designees have taken and passed both the ABR® and ABRM SM course and provided documentation of past management experience.
--------------------------------------------------------------------------------
Accredited Land Consultant (ALC)
Experts recognized in land brokerage transaction areas of five specialized types: (1) farms and ranches; (2) undeveloped tracts of land; (3) transitional land; (4) subdivision and wholesaling of lots; and (5) site selection and assemblage of land parcels.
--------------------------------------------------------------------------------
Certified Commercial Investment Member (CCIM)
CCIMs are recognized experts in commercial real estate brokerage, leasing, asset management valuation and investment analysis. The CCIM business network includes more than 5,000 designees and 5,000 candidates principally in North America.
--------------------------------------------------------------------------------
Certified International Property Specialist (CIPS)
Many REALTORS® work with buyers and sellers from different countries or cultures. CIPS designees have demonstrated their international experience and participate in international programs offered by the National Association of Realtors®.
--------------------------------------------------------------------------------
Certified Property Manager (CPM)
Acquire valuable real estate management skills through educational offerings leading to the CPM® designation. CPM® members have the competitive edge in every area of real estate management from residential to commercial to industrial.
--------------------------------------------------------------------------------
Certified Real Estate Brokerage Manager (CRB)
With more than 7,000 brokerage owners and managers nationwide enjoying the benefits of membership, the Real Estate Brokerage Managers Council is recognized throughout the industry as the professional peer organization for real estate's leaders. Real estate brokerage owners and managers will be ready to meet their personal and professional challenges when they earn the CRB designation.
--------------------------------------------------------------------------------
Counselor of Real Estate (CRE)
The Counselor of Real Estate - or CRE - is a member of the Counselors of Real Estate, an international group of recognized professionals who provide seasoned, objective advice on real property and land-related matters. Only 1,000 practitioners throughout the world carry the CRE designation. Membership is by invitation only.
--------------------------------------------------------------------------------
Certified Residential Specialist (CRS)
Agents will maximize their profit by joining this network of over 35,000 top professionals. CRS Designees complete advanced study in residential listing and selling and meet established production levels. There are different programs based on years of experience.
--------------------------------------------------------------------------------
e-PRO Internet Professional (e-PRO)
e-PRO Certification is a revolutionary new training program, presented entirely online, to certify real estate agents and brokers as Internet Professsionals. Comprehensive and educational, e-Pro is the only certification program of its kind that is recognized and endorsed by the NATIONAL ASSOCIATION OF REALTORS®.
--------------------------------------------------------------------------------
General Accredited Appraiser (GAA)
Certified general appraisers wishing to increase their visibility should consider pursuing the GAA designation. The GAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the National Association of Realtors®.
--------------------------------------------------------------------------------
Graduate, REALTOR® Institute (GRI)
Members primarily involved in residential real estate wanting to increase their knowledge and skills in a broad array of technical subjects and the fundamentals of real estate participate in the REALTOR® Institute, graduate program to earn the GRI designation. The program also provides opportunities to develop important business contacts. The GRI is a nationally recognized designation of the National Association of Realtors®.
--------------------------------------------------------------------------------
Performance Management Network (PMN) Designees have the skills, the experience and the tools to keep them out front and on top of the changing and competitive real estate market. Earning the PMN requires a blend of coursework in real estate business skills and networking experience, a performance mix that builds their careers and elevates the level of service they are able to provide their clients.
--------------------------------------------------------------------------------
Residential Accredited Appraiser (RAA)
Certified residential appraisers wishing to increase their visibility should consider pursuing the RAA designation. The RAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the National Association of Realtors®.
--------------------------------------------------------------------------------
REALTOR® Association Certified Executive (RCE)
Association executives interested in demonstrating commitment to the field of REALTOR® association management should pursue the RCE designation. AEs are recognized for their specialized industry knowledge and their academic and association achievements and experience.
--------------------------------------------------------------------------------
Society of Industrial and Office REALTORS® (SIOR)
Individuals certified with the SIOR designation are top producers in industrial and office real estate brokerage, representing more than 800 offices in over 350 cities worldwide. The Society's mandatory recertification requirement assures clients of the designee's excellence in the fast changing commercial brokerage field.
--------------------------------------------------------------------------------
-Realtor.Com-
With over 20,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 11,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.
--------------------------------------------------------------------------------
Accredited Buyer Representative Manager (ABRM)
Geared to real estate firm brokers, owners and managers that have or wish to incorporate buyer representation into their daily practice, designees have taken and passed both the ABR® and ABRM SM course and provided documentation of past management experience.
--------------------------------------------------------------------------------
Accredited Land Consultant (ALC)
Experts recognized in land brokerage transaction areas of five specialized types: (1) farms and ranches; (2) undeveloped tracts of land; (3) transitional land; (4) subdivision and wholesaling of lots; and (5) site selection and assemblage of land parcels.
--------------------------------------------------------------------------------
Certified Commercial Investment Member (CCIM)
CCIMs are recognized experts in commercial real estate brokerage, leasing, asset management valuation and investment analysis. The CCIM business network includes more than 5,000 designees and 5,000 candidates principally in North America.
--------------------------------------------------------------------------------
Certified International Property Specialist (CIPS)
Many REALTORS® work with buyers and sellers from different countries or cultures. CIPS designees have demonstrated their international experience and participate in international programs offered by the National Association of Realtors®.
--------------------------------------------------------------------------------
Certified Property Manager (CPM)
Acquire valuable real estate management skills through educational offerings leading to the CPM® designation. CPM® members have the competitive edge in every area of real estate management from residential to commercial to industrial.
--------------------------------------------------------------------------------
Certified Real Estate Brokerage Manager (CRB)
With more than 7,000 brokerage owners and managers nationwide enjoying the benefits of membership, the Real Estate Brokerage Managers Council is recognized throughout the industry as the professional peer organization for real estate's leaders. Real estate brokerage owners and managers will be ready to meet their personal and professional challenges when they earn the CRB designation.
--------------------------------------------------------------------------------
Counselor of Real Estate (CRE)
The Counselor of Real Estate - or CRE - is a member of the Counselors of Real Estate, an international group of recognized professionals who provide seasoned, objective advice on real property and land-related matters. Only 1,000 practitioners throughout the world carry the CRE designation. Membership is by invitation only.
--------------------------------------------------------------------------------
Certified Residential Specialist (CRS)
Agents will maximize their profit by joining this network of over 35,000 top professionals. CRS Designees complete advanced study in residential listing and selling and meet established production levels. There are different programs based on years of experience.
--------------------------------------------------------------------------------
e-PRO Internet Professional (e-PRO)
e-PRO Certification is a revolutionary new training program, presented entirely online, to certify real estate agents and brokers as Internet Professsionals. Comprehensive and educational, e-Pro is the only certification program of its kind that is recognized and endorsed by the NATIONAL ASSOCIATION OF REALTORS®.
--------------------------------------------------------------------------------
General Accredited Appraiser (GAA)
Certified general appraisers wishing to increase their visibility should consider pursuing the GAA designation. The GAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the National Association of Realtors®.
--------------------------------------------------------------------------------
Graduate, REALTOR® Institute (GRI)
Members primarily involved in residential real estate wanting to increase their knowledge and skills in a broad array of technical subjects and the fundamentals of real estate participate in the REALTOR® Institute, graduate program to earn the GRI designation. The program also provides opportunities to develop important business contacts. The GRI is a nationally recognized designation of the National Association of Realtors®.
--------------------------------------------------------------------------------
Performance Management Network (PMN) Designees have the skills, the experience and the tools to keep them out front and on top of the changing and competitive real estate market. Earning the PMN requires a blend of coursework in real estate business skills and networking experience, a performance mix that builds their careers and elevates the level of service they are able to provide their clients.
--------------------------------------------------------------------------------
Residential Accredited Appraiser (RAA)
Certified residential appraisers wishing to increase their visibility should consider pursuing the RAA designation. The RAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the National Association of Realtors®.
--------------------------------------------------------------------------------
REALTOR® Association Certified Executive (RCE)
Association executives interested in demonstrating commitment to the field of REALTOR® association management should pursue the RCE designation. AEs are recognized for their specialized industry knowledge and their academic and association achievements and experience.
--------------------------------------------------------------------------------
Society of Industrial and Office REALTORS® (SIOR)
Individuals certified with the SIOR designation are top producers in industrial and office real estate brokerage, representing more than 800 offices in over 350 cities worldwide. The Society's mandatory recertification requirement assures clients of the designee's excellence in the fast changing commercial brokerage field.
--------------------------------------------------------------------------------
-Realtor.Com-
Tuesday, March 4, 2008
What is the Spanish Eclectic style home?
Spanish Eclectic
Most common in the Southwest and Florida, Spanish-style architecture takes its cues from the missions of the early Spanish missionaries--such as the one at San Juan Capistrano in California--and includes details from the Moorish, Byzantine, Gothic, and Renaissance architectural styles. The houses usually have low-pitched tiled roofs, white stucco walls, and rounded windows and doors. Other elements may include scalloped windows and balconies with elaborate grillwork, decorative tiles around doorways and windows, and a bell tower or two.
-Realtor Magazine-
Article by NAR Chief Economist
Not All Markets Are Equal
by Lawrence Yun, NAR Chief Economist
Though the national headlines have been pounding out the news of a housing market meltdown, implosion, and collapse, all markets are not equal. In NAR’s latest metro price survey, roughly half of the country experienced a price increase. Upstate New York is one example. While folks in the area have been kicking through the snow, home prices in the final quarter of 2007 rose 9% in Buffalo, 8% in Rochester, and a whopping 15% in Binghamton. The Texas market has been also doing its two-step dance with Corpus Christi, Austin, and San Antonio experiencing price gains of 6%, 6%, 8%, respectively. Not to be outdone, Amarillo home prices soared 11% higher.
And yes, there were some areas that weren’t dancing. Price declines are occurring no doubt, and quite notably in some coastal states and in markets with a high prevalence of subprime loans. Prices fell 13% in Cape Coral, 14% in Detroit, and 19% in Sacramento.
Significant Variations Across Markets
What the data clearly illuminates is that there are significant variations across markets. As real estate practitioners know very well, there are further measurable differences across neighborhoods within a metro market. No doubt there are some people under great financial stress. Subprime products that should never have entered the marketplace have wreaked havoc on many communities around the country. Homeowners unable to meet payments are losing their homes and falling home values have cut the equity of those homeowners who make their mortgage payments on time. Investors taking a walk may not feel the same financial squeeze but they are getting hit on credit scores – that is, many investors using low documentation loans bought multiple properties and are now simply walking away from those properties in declining markets. The calculus was simple – heads I win and tails I don’t lose. Prices rise, get the profit. Prices decline, then walk away – and let the lenders take the loss.
As I travel around the country speaking with many REALTORS®, I hear their side of the state of housing. Now, anecdotal information should always be read with caution. However, what does it mean when several REALTORS® in Columbus, Ohio say they have never seen such an upturn in foot traffic in open houses after the New Year? One of them said he had over 30 visitors in January, when just a few months earlier he had about only one or two onlookers. A similar buzz was in evidence during my recent visits to Maryland, Virginia, and Arizona. What was lacking from the buzz was the actual eagerness to sign contracts. Buyers were looking -- but unwilling to commit. In other words, weakened confidence is evidently holding back buyers.
All markets are unequal in other ways. Consider a Microsoft engineer in Seattle with a great salary and a top-notch credit score. A good-sized home in an upper-middle class neighborhood is priced at about $800,000. A jumbo loan is required. But a jumbo loan in the current environment is very expensive. Fortunately, relief is on the way. Congress and the White House have realized the unequal treatment of loans to some consumers and have now decided to raise the loan limits on FHA and GSE loans (albeit temporarily). As a result, by late spring, home sales on higher-priced homes will pick up.
Skirting Recession
As for the economy, it will be close, but we will skirt recession. Job gains of around one million can be expected for all of 2008, though that would be down from the 2-million annual average gains over the past two years. Affordability will improve as well – NAR’s housing affordability index is expected to rise from 113 in 2007 to 129 in 2008. Job gains and rising affordability conditions are the right combination to induce buyers into the marketplace.
The current market cycle is unique because of significant local market variations. It is also unique because of buyer psychology factors – in spite of pent-up demand and improving affordability conditions. Our forecast is, therefore, more uncertain. Having said that, home sales in the second half of 2008 will be notably higher than in the first half of the year.
Finally, let me paraphrase Warren Buffet’s investment philosophy: when everyone is greedy, be scared; and when everyone is scared, be brave. Now, I am not an investment counselor and I do not encourage people to buy simply based on this logic. Rather, if people have the financial capacity and are looking for a home for the long haul, the fear factor should be put aside. Current situations in many local markets present a golden opportunity in attaining the American Dream with historically low interest rates.
by Lawrence Yun, NAR Chief Economist
Though the national headlines have been pounding out the news of a housing market meltdown, implosion, and collapse, all markets are not equal. In NAR’s latest metro price survey, roughly half of the country experienced a price increase. Upstate New York is one example. While folks in the area have been kicking through the snow, home prices in the final quarter of 2007 rose 9% in Buffalo, 8% in Rochester, and a whopping 15% in Binghamton. The Texas market has been also doing its two-step dance with Corpus Christi, Austin, and San Antonio experiencing price gains of 6%, 6%, 8%, respectively. Not to be outdone, Amarillo home prices soared 11% higher.
And yes, there were some areas that weren’t dancing. Price declines are occurring no doubt, and quite notably in some coastal states and in markets with a high prevalence of subprime loans. Prices fell 13% in Cape Coral, 14% in Detroit, and 19% in Sacramento.
Significant Variations Across Markets
What the data clearly illuminates is that there are significant variations across markets. As real estate practitioners know very well, there are further measurable differences across neighborhoods within a metro market. No doubt there are some people under great financial stress. Subprime products that should never have entered the marketplace have wreaked havoc on many communities around the country. Homeowners unable to meet payments are losing their homes and falling home values have cut the equity of those homeowners who make their mortgage payments on time. Investors taking a walk may not feel the same financial squeeze but they are getting hit on credit scores – that is, many investors using low documentation loans bought multiple properties and are now simply walking away from those properties in declining markets. The calculus was simple – heads I win and tails I don’t lose. Prices rise, get the profit. Prices decline, then walk away – and let the lenders take the loss.
As I travel around the country speaking with many REALTORS®, I hear their side of the state of housing. Now, anecdotal information should always be read with caution. However, what does it mean when several REALTORS® in Columbus, Ohio say they have never seen such an upturn in foot traffic in open houses after the New Year? One of them said he had over 30 visitors in January, when just a few months earlier he had about only one or two onlookers. A similar buzz was in evidence during my recent visits to Maryland, Virginia, and Arizona. What was lacking from the buzz was the actual eagerness to sign contracts. Buyers were looking -- but unwilling to commit. In other words, weakened confidence is evidently holding back buyers.
All markets are unequal in other ways. Consider a Microsoft engineer in Seattle with a great salary and a top-notch credit score. A good-sized home in an upper-middle class neighborhood is priced at about $800,000. A jumbo loan is required. But a jumbo loan in the current environment is very expensive. Fortunately, relief is on the way. Congress and the White House have realized the unequal treatment of loans to some consumers and have now decided to raise the loan limits on FHA and GSE loans (albeit temporarily). As a result, by late spring, home sales on higher-priced homes will pick up.
Skirting Recession
As for the economy, it will be close, but we will skirt recession. Job gains of around one million can be expected for all of 2008, though that would be down from the 2-million annual average gains over the past two years. Affordability will improve as well – NAR’s housing affordability index is expected to rise from 113 in 2007 to 129 in 2008. Job gains and rising affordability conditions are the right combination to induce buyers into the marketplace.
The current market cycle is unique because of significant local market variations. It is also unique because of buyer psychology factors – in spite of pent-up demand and improving affordability conditions. Our forecast is, therefore, more uncertain. Having said that, home sales in the second half of 2008 will be notably higher than in the first half of the year.
Finally, let me paraphrase Warren Buffet’s investment philosophy: when everyone is greedy, be scared; and when everyone is scared, be brave. Now, I am not an investment counselor and I do not encourage people to buy simply based on this logic. Rather, if people have the financial capacity and are looking for a home for the long haul, the fear factor should be put aside. Current situations in many local markets present a golden opportunity in attaining the American Dream with historically low interest rates.
Subscribe to:
Comments (Atom)
Posts
