Monday, October 29, 2012

Pine Beetles Affect Prices in the Housing Market

Interesting snippet of info...

"New-home construction has picked up momentum in recent months after years of contraction. But the industry is facing a fresh challenge: building costs are going through the roof," says Robbie Whelan of the Wall Street Journal in today's article, "High Costs Bedevil Builders." The rise of construction costs is due to 3 main factors: labor, land, and lumber.

"Between 2007 and 2011, more than 2.1 million construction workers lost their jobs and many switched to jobs in other industries." Because of this, the amount of skilled construction labor has dwindled. With a surge of new construction projects, the trick is getting those experienced workers to come back to the work site.

"Land is also in short supply, at least in the places where consumers want to live, near jobs, and good schools." In the spring of 2001, an acre of land in a development known as The Bridges in Gilbert, AZ cost $77,763. Now, developers are paying between $126,00 and $150,000 per acre for the same land.

The cost of framing lumber has risen 21% in the last year. This is largely due to a supply problem. In a small sub-article, Whelan writes that, "the lumber harvest in British Columbia could decline 50% for the next half-century because of the pine beetle." These tiny beetles, as many Colorado residents are aware, eat through pine and kill the trees. The current infestation started in Colorado in the late 90's and spread rapidly throughout the region over the last 10 years due to mild winters.

All of these factors have increased the overall prices of new homes. According to the Census Bureau, the average price for a new home was $242,400 this September, an increase of 11.5% from September 2011.

Wednesday, October 17, 2012

Denver ranks 12th in home affordability in the U.S.

Interesting Denver Post Article... 
Denver ranks 12th among the 25 largest U.S. metropolitan areas in terms of home affordability, according to research released Wednesday by Interest.com, a Bankrate company.
The median household income in the Denver area exceeds the income required to purchase a median-priced home in the Denver area by four percent, according to the report.
The top five most affordable areas are Detroit, Atlanta, Minneapolis, Phoenix and St. Louis. The least affordable are Los Angeles, Miami, San Diego, New York and San Francisco.
Mike Sante, managing editor of Interest.com, said that despite all of the talk "about how homes are more affordable than they have been in decades, buying a home is still a big challenge for many American households.
"Dealing with rising expenses and stagnant wages is a struggle. Even after years of declining home prices and record-low mortgage rates, median-income households are unable to afford a median-priced home in nearly half of the metropolitan areas," he said.
The research showed that a median income household can only afford a median-priced home in 14 of the 25 largest metropolitan areas.
Data from the U.S. Census Bureau, the National Association of Realtors, National Association of Insurance Commissioners and Experian, one of the three major credit reporting agencies, contributed to the analysis.

Monday, October 15, 2012

Tips for Preparing Your Home for Winter


 

Foundation - Masonry - Exterior

* Check foundation walls, floors, concrete and masonry for cracking, heaving or deterioration

* Check chimneys for loose, deteriorated or missing mortar

* Check gutters

 

Roofs

* Check flashings around all vents, skylights and other openings

* Trim back all tree limbs and vegetation away from home

 

Heating and Cooling

* Lubricate fan and motor bearings

* Check fan belt tension

 

Plumbing

* Have well water tested and checked for safety

* Winterize any exterior plumbing connections

 

Doors and Windows

* Check for loose or missing glazing putty

* Check caulking for deterioration of all openings and joints between wood and masonry

* Check weather-stripping

Friday, October 12, 2012

8 home upgrades people want most

WHICH UPGRADES ARE PEOPLE MOST EAGER TO DO?

A recent survey of home magazine readers revealed the eight upgrades people want most:

1. Added storage space, walk-in closets and built-ins.
Homeowners want smart spaces that maximize every square foot and help keep the home organized.

2. Separate laundry room. People want the convenience and practicality of a laundry room out of the basement and integrated into other home spaces to allow for more multitasking. It doesn't even have to be that big.


3. Additional bedroom with its own bath. This could be for an older parent, a guest suite or a retreat for teens, but it needs to be nicely sized.

4. Casual dining spaces in or near the kitchen. People are looking for an extended kitchen/family room area with up to three or four places to gather, have a bite and multitask.

5. Family computing and work spaces. All family members need a place to park their electronics and have some fun or do some work. That space can be created by expanding an existing kitchen or family room, or by adding a whole new room.

6. Better bathrooms. This year baths are getting more attention than kitchens, as people look for more personalized features and nicer finishes.

7. Kitchens. Even though they now trail bathrooms in upgrade popularity, kitchens are still a focal point of many upgrade projects.

8. Outdoor living areas. People no longer want those huge outdoor kitchens and over-the-top fireplaces, just nicely sized spaces that create outdoor living areas with a connection to the home.

7 tips to make your home picture-perfect for a sale


Today, good pictures are essential to selling a home. Most buyers do their home searches online, where they see slide shows and virtual tours with soundtracks. National Association of Realtors research revealed 98% of buyers looking for a home online said photos were among the most useful features of real estate websites.

High quality photos make your home look more spacious and attractive and they create that important first impression. Great pictures get people to say, "Wow, we HAVE to see this house!" Here are some tips to get a picture-perfect listing:

1. Evaluate agents by their listing pictures. When picking a listing broker, look at the property photos on their current listings.

2. Did they use compelling shots? Do the photos make you want to visit the home? Do they look like they're from a magazine? Those are the kind of pictures that appeal to prospective buyers.

3. Did they post the right number of shots? How many photos should the agent post with a listing? Two or three aren't enough, but 30 are too many.

4. Did they put the pictures in the best sequence? The first photos are the most important. They should include a front shot, main living area, kitchen, master bedroom and bath, plus one more attractive feature.

5. Insist the broker use a professional. Research shows listings with home photos taken by professionals have about 61% more views than listings photographed by amateurs. And that's across all price tiers! Ask the agent for the photographer's credentials.

6. Suggest some views. Give the photographer a list of shots to consider. Include favorite views outside and in.

7. Be the final approval. Ask to review the photos before they're posted and compare them to listings similar to yours. If substandard, ask for a reshoot with another photographer.

Wednesday, October 10, 2012

One of America's Most Haunted Houses


Myrtles Plantation

St. Francisville, La.
Touted as "one of the most haunted houses in America," the Myrtles Plantation in St. Francisville is one of the creepiest places in the South.  The house was built in 1797.  Visitors and former residents claim to have witnessed many strange occurrences: disappearing jewelry; waking to find themselves completely tucked into their beds; furniture that moves on its own; a grand piano that plays by itself; mysterious handprints; and objects and people appearing and disappearing randomly in photographs.

From FrontDoor.com

Tuesday, October 9, 2012

James Bond 50 Year Anniversary Property

One of the most famous bond film locations is Buckingham Palace...

 


From www.jamesbondmm.co.uk

Buckingham Palace
SW1A 1AA
London
United Kingdom

Bond connections

Buckingham Palace is mentioned in Moonraker and Goldeneye, but is perhaps better known for its appearance in Die Another Day.  In Moonraker after Bond and Dr Holly Goodhead's sucessful mission, a NASA technican tells M and Sir Frederick Gray that the video will be patched directly to Buckingham Palace, no doubt Her Majesty finding out more that what she bargained for  Alec Trevelyan decides to take his revenge against London and the Queen in Goldeneye, by attempting to use the 'Mischa' satellite to electomagenticaly fry London, and to put right past wrongs done to his family. Luckily his plan fails.  The palace re-appears in Die Another Day as Sir Gustav Graves makes his showy entrance by jumping out of a plane and landing safetly by parachute in front of the palace gates to an impressed crowd of journalists and press.

Inside Buckingham Palace, there are a total of 775 rooms, including state rooms (19), guest rooms (52), offices (92), staff rooms (188), and bathrooms (78). The Palace is home to a huge collection of art. London Buckingham Palace, also known as London Palace, is used for various royal occasions such as state visits and investitures. The State Dining room is an important state room. The other state rooms include the ballroom, music room, and the Bow Room.

Monday, October 8, 2012

Seven Costly Mistakes Sellers Make

Great Realtor.com article...
 
There are plenty of pitfalls before you seal the deal.  There are always appropriate steps to investing in real estate and hopefully, you've garnered many of them right on these pages. However, there are also inappropriate steps sellers can walk down when it comes time to put their house on the market.
For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it -- and did -- for thousands of dollars, just so he could get it on the market the "right way." His hang-up may have settled some deep-seated emotional need for him, but it didn't draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.
 
Real estate broker and author Sid Davis has identified in his book "A Survival Guide to Selling a Home," another seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I've seen each one of these mistakes played out and it just makes me shake my head as to why, sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.
The 7 Costly Mistakes
Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the work done before marketing the property.
 
Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community.
 
Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. Make sure you're hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure he has a mentor to keep your deal from going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later -- it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. There are plenty of resources (like this publication) and professionals, who are there to help you step over the pitfalls. Do the research early, and listen to that voice in your head (it's probably the whispers of the finance, real estate, insurance person who's warning you of a hole you're about to step into). Sell well.

US Consumer Confidence at 7 Month High

positive article heading in the right direction....

From the Denver Post
 
U.S. consumer confidence jumped this month to the highest level since February, bolstered by a brighter hiring outlook.
 
The Conference Board said today that its Consumer Confidence Index rose to 70.3. That's up from 61.3 in August, which was revised higher. And it's the highest reading since February, when the economy added 259,000 jobs.
The indicator is watched closely because consumer spending drives nearly 70 percent of economic activity. The reading is still below 90, a level that indicates a healthy economy. Since the beginning of the year, the index has fluctuated sharply.
The survey was conducted from Sept. 1 through Sept. 13. It showed consumers were more optimistic about the current availability of jobs and their outlook over the next six months.
Their confidence in the job market is higher, even though employers added just 96,000 jobs in August. That's down from 141,000 in July and too few to keep up with population growth.
The unemployment rate fell to 8.1 percent from 8.3 percent, but only because many people gave up their job search, so they were no longer counted as unemployed.
A measure of how consumers feel now about the economy rose to 50.2, up from 46.5 last month. And they are even more optimistic about the next six months.
 
The upbeat report on confidence comes as a widely watched index on home prices offered more evidence of a housing recovery. According to the Standar & Poor's/Case Shiller Index, home prices kept rising in July across the U.S., buoyed by greater sales and fewer foreclosures.

National home prices increased 1.2 percent in July, compared to the same month last year, according to the index. That's the second straight year-over-year gain after two years without one.

Steady price increases and record-low mortgage rates are helping drive a housing recovery.

Those stating jobs are "plentiful" rose to 8.3 percent from 7.2 percent, while those claiming jobs are "hard to get" edged down to 39.9 percent from 40.6 percent.

Those expecting more jobs in the months ahead increased to 18.5 percent from 15.8 percent, while those anticipating fewer jobs declined to 18.5 percent from 23.7 percent.

The proportion of consumers expecting an increase in their incomes edged up to 16.3 percent from 16 percent.

4 questions to ask before following the homebuying herd

Good Article from Inman News

Compromise, due diligence required to make wise purchase decision

Many pundits believe that now is a good time to buy a home. Interest rates are low and are predicted to be higher by the end of next year. Home prices are still low in many places. And, there are indications that prices are starting to rise, at least in major metropolitan areas. From June to July, the S&P/Case-Shiller Home Price Index rose 1.6 percent in 20 big cities in the nation.

Although buyers are clamoring to buy, don't make the mistake of buying now just because many people are house hunting. Before jumping into the fray, ask yourself the following questions:

1. Are you prepared for the responsibilities and risks of homeownership?

Unlike renting, where the landlord usually pays for maintaining the property, you are responsible for repairs when you own. And, it's ongoing.

Most buyers don't factor in the cost and time of maintenance into their homebuying decision. It's a must to keep up on maintenance for your personal enjoyment of the property and to protect its value. Deferred maintenance can diminish your net proceeds when you sell.

HOUSE HUNTING TIP: Buying is a more permanent commitment than renting. Real property is not a liquid asset. You can't cash in a home like you can a bond or stocks. You shouldn't buy if you don't plan on staying in your home for a reasonable period of time, say five to 10 years. If you're not forced to sell your home in a down market, you can avoid a loss.

2. Can you afford to buy a home with the amenities you need in a location where you want to live?

Contact a mortgage broker or loan agent to find out how much you can afford to pay. Then, consider your personal financial situation and determine how much you feel comfortable paying. In some places, it's actually less expensive to own than to rent a home because rents have skyrocketed. And, there are tax benefits associated with owning your home that aren't available to renters.

Once you know how much you are able and willing to pay, find out what sort of housing is available in neighborhoods where you'd like to live. You can do some of this research on the Internet. Search by area to see what's available in your price range. Attend Sunday open houses to get a feel for what kind of home you can expect to buy.

3. Are you willing to compromise?

The perfect home does not exist. So, you will have to compromise to some extent. Make a list of the features you need and want in a home. Then prioritize the list. For example, you may want to have four bedrooms but can live with three if the home has the other essentials you need.

4. Are you willing to take the time and make the effort to carry out due diligence investigations in order to ensure that you make a wise purchase decision?

You can't delegate this important step to someone else. A good real estate agent will help you make good choices. However, you are the decision-maker.

In addition to having the property thoroughly inspected by qualified inspectors, you need to find out if there is any reason why you shouldn't buy a property you're considering. Is there any change in the neighborhood that will impact its value, like a freeway due to be built nearby that will create a noise nuisance? Try to keep your emotions in check and don't dismiss negative news about the home you love, or pay too much.

THE CLOSING: Homebuying is a lot of work and can be stressful. The benefit is that you will be master of your own domain, which could increase in value over time and improve your net worth when you sell.

10 ways to winterize your home

From MSN Real Estate...

You'll get a season's worth of savings and peace of mind by taking a few steps in the fall to get your
home ready for cold weather.  So you've pulled your sweaters out of mothballs and found your mittens at the bottom of the coat closet. But what about your house -- is it prepared for the cold months ahead?

You'll be a lot less comfortable in the coming months if you haven't girded Home Sweet Home for Old Man Winter.  With the help of several experts, we've boiled down your autumn to-do list to 10 easy tips:

1. Clean those gutters
Once the leaves fall, remove them and other debris from your home's gutters -- by hand, by scraper or spatula, and finally by a good hose rinse -- so that winter's rain and melting snow can drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house, the Insurance Information Institute says.
As you're hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house's foundation, where it could cause flooding or other water damage.
"The rule of thumb is that water should be at least 10 feet away from the house," says Michael Broili, the director of the Well Home Program for the Phinney Neighborhood Association, a nationally recognized neighborhood group in Seattle.

2. Block those leaks
One of the best ways to winterize your home is to simply block obvious leaks around your house, both inside and out, experts say. The average American home has leaks that amount to a nine-square-foot hole in the wall, according to EarthWorks Group.
First, find the leaks: On a breezy day, walk around inside holding a lit incense stick to the most common drafty areas: recessed lighting, window and door frames, electrical outlets.
Then, buy door sweeps to close spaces under exterior doors, and caulk or apply tacky rope caulk to those drafty spots, says Danny Lipford, host of the nationally syndicated TV show "Today's Homeowner." Outlet gaskets can easily be installed in electrical outlets that share a home's outer walls, where cold air often enters.
Outside, seal leaks with weather-resistant caulk. For brick areas, use masonry sealer, which will better stand up to freezing and thawing. "Even if it's a small crack, it's worth sealing up," Lipford says. "It also discourages any insects from entering your home."

3. Insulate yourself
"Another thing that does cost a little money -- but boy, you do get the money back quick -- is adding insulation to the existing insulation in the attic," says Lipford. "Regardless of the climate conditions you live in, in the (U.S.) you need a minimum of 12 inches of insulation in your attic."
Don't clutter your brain with R-values or measuring tape, though. Here's Lipford's rule of thumb on whether you need to add insulation: "If you go into the attic and you can see the ceiling joists you know you don't have enough, because a ceiling joist is at most 10 or 11 inches."
A related tip: If you're layering insulation atop other insulation, don't use the kind that has "kraft face" finish (i.e., a paper backing). It acts as a vapor barrier, Lipford explains, and therefore can cause moisture problems in the insulation.

4. Check the furnace
First, turn your furnace on now, to make sure it's even working, before the coldest weather descends. A strong, odd, short-lasting smell is natural when firing up the furnace in the autumn; simply open windows to dissipate it. But if the smell lasts a long time, shut down the furnace and call a professional.
It's a good idea to have furnaces cleaned and tuned annually. Costs will often run about $100-$125. An inspector should do the following, among other things:
Throughout the winter you should change the furnace filters regularly (check them monthly). A dirty filter impedes air flow, reduces efficiency and could even cause a fire in an extreme case. Toss out the dirty fiberglass filters; reusable electrostatic or electronic filters can be washed.

5. Get your ducts in a row
According to the U.S. Department of Energy, a home with central heating can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected and insulated, or if it must travel through unheated spaces. That's a huge amount of wasted money, not to mention a chilly house. (Check out this audit tool for other ideas on how to save on your energy bills this winter.)
Ducts aren't always easy to see, but you can often find them exposed in the attic, the basement and crawlspaces. Repair places where pipes are pinched, which impedes flow of heated air to the house, and fix gaps with a metal-backed tape (duct tape actually doesn't stand up to the job over time).
Ducts also should be vacuumed once every few years, to clean out the abundant dust, animal hair and other gunk that can gather in them and cause respiratory problems.

6. Face your windows
Now, of course, is the time to take down the window screens and put up storm windows, which provide an extra layer of protection and warmth for the home. Storm windows are particularly helpful if you have old, single-pane glass windows. But if you don't have storm windows, and your windows are leaky or drafty, "They need to be updated to a more efficient window," says Lipford.
Of course, windows are pricey. Budget to replace them a few at a time, and in the meantime, buy a window insulator kit, Lipford and Broili recommend. Basically, the kit is plastic sheeting that's affixed to a window’s interior with double-stick tape. A hair dryer is then used to shrink-wrap the sheeting onto the window. (It can be removed in the spring.) "It's temporary and it's not pretty, but it's inexpensive (about $4 a window) and it's extremely effective," says Lipford.

7. Don't forget the chimney
Ideally, spring is the time to think about your chimney, because "chimney sweeps are going crazy right now, as you might have guessed," says Ashley Eldridge, director of education for the Chimney Safety Institute of America.
That said, don't put off your chimney needs before using your fireplace, Eldridge advises. "A common myth is that a chimney needs to be swept every year," says Eldridge. Not true. But a chimney should at least be inspected before use each year, he adds. "I've seen tennis balls and ducks in chimneys," he says.
Ask for a Level 1 inspection, in which the professional examines the readily accessible portions of the chimney, Eldridge says. "Most certified chimney sweeps include a Level 1 service with a sweep," he adds.
Woodstoves are a different beast, however, cautions Eldridge. They should be swept more than once a year. A general rule of thumb is that a cleaning should be performed for every ¼ inch of creosote, "anywhere that it's found." Why? "If it's ash, then it's primarily lye -- the same stuff that was once used to make soap, and it's very acidic." It can cause mortar and the metal damper to rot, Eldridge says.
Another tip: Buy a protective cap for your chimney, with a screen, advises Eldridge. "It's probably the single easiest protection" because it keeps out foreign objects (birds, tennis balls) as well as rain that can mix with the ash and eat away at the fireplace's walls. He advises buying based on durability, not appearance.
One other reminder: To keep out cold air, fireplace owners should keep their chimney's damper closed when the fireplace isn't in use. And for the same reason, woodstove owners should have glass doors on their stoves, and keep them closed when the stove isn't in use.
Check out CSIA'S Web site for a list of certified chimney sweeps in your area.

8. Reverse that fan
"Reversing your ceiling fan is a small tip that people don't often think of," says Lipford. By reversing its direction from the summer operation, the fan will push warm air downward and force it to recirculate, keeping you more comfortable. (Here's how you know the fan is ready for winter: As you look up, the blades should be turning clockwise, says Lipford.)

9. Wrap those pipes
A burst pipe caused by a winter freeze is a nightmare. Prevent it before Jack Frost sets his grip: Before freezing nights hit, make certain that the water to your hose bibs is shut off inside your house (via a turnoff valve), and that the lines are drained, says Broili. In climes such as Portland, Ore., or Seattle, where freezing nights aren't commonplace, you can install Styrofoam cups with a screw attachment to help insulate spigots, says Broili.
Next, go looking for other pipes that aren't insulated, or that pass through unheated spaces -- pipes that run through crawlspaces, basements or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation, available at hardware stores. If you're really worried about a pipe freezing, you can first wrap it with heating tape, which is basically an electrical cord that emits heat.

10. Finally, check those alarms
This is a great time to check the operation -- and change the batteries -- on your home's smoke detectors. Detectors should be replaced every 10 years, fire officials say. Test them -- older ones in particular -- with a small bit of actual smoke, and not just by pressing the "test" button. Check to see that your fire extinguisher is still where it should be, and still works.  Also, invest in a carbon-monoxide detector; every home should have at least one.