September Real Estate Trivia:
What Colorado Ski Resort gets the most annual snowfall on average?
Answer: Wolf Creek Ski Area
Tuesday, September 24, 2013
14 Things to Consider Before Buying a Home
great buying article on realtor.com
14 Things to Consider Before Buying a Home
When you’re buying a home, it’s easy to let emotions get in the way of reality. “Sometimes we want something so badly, we’re not willing to ask all the questions we should,” says Leslie Levine, author of “Will This Place Ever Feel Like Home?” To make sure your dream home isn’t a mirage, follow these 14 tips:
1. Visit at various times of day.
The windows that let in so much light during the day may be a peeping Tom’s dream at night. That seemingly quiet residential street may be a noisy, highway-feeder street during morning or evening rush hour. The adjacent school may seem like a nice perk if you’re buying in the summer, but during the school year, daily playground noise and extra traffic may be more than you bargained for.
2. Research recent local news.
You need to look at more than the house: Examine the factors you can’t see. For example, perhaps the municipal water well has high levels of contaminants, or a perhaps a high-voltage power line may soon be coming through your back yard. You can also check with the city or county to see if there are any proposed projects.
3. Talk to neighbors.
How many people in the neighborhood own their homes? What do neighbors say are the pros and cons of the area?
4. Ask if the neighborhood has an association.
“Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” Levine asks. “The fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house.”
5. Quiz the sellers about house problems.
What past problems are the sellers aware of? Even if the issues have been fixed, it’s good to know that the house may be prone to, say, ice dams or water leaks so that you can take preventive measures rather than find out the hard way. If you know that the basement flooding was solved by building up the landscaping in a particular area, you won’t level the ground there.
6. Get a home inspection.
Virtually all houses have defects. Some are obvious, and most are curable. But knowing what needs repair can help you negotiate a lower price — or at least prepare you for costs you’ll soon incur. Strongly consider getting inspections for lead paint, radon and wood-eating pests, too.
7. Get detailed records on past improvements.
This isn’t always possible. But if you’re told the house’s exterior was painted two years ago — and then see a receipt noting the whole project cost just $1,000 — then you’re forewarned that cheaper materials were used and that you may be looking at repainting sooner than you thought.
8. Don’t assume remodeling will be easy.
If you voice your ideas to the sellers, you may glean valuable insights. For instance, perhaps that shower is in an odd location because, when the previous owners remodeled 10 years ago, they discovered a costly structural impediment to putting a shower where it would seem more appropriate.
9. Consider the view.
“So many neighborhoods now have teardowns,” Levine notes. “So look at the two houses on either side of you.” Do the adjacent houses look like they might be candidates for a teardown? Is the next lot empty? Does the neighborhood or town have restrictions about what your prospective neighbors can build there? “They may build some behemoth structure that affects your light or the way your house looks or your view,” Levine says.
10. Ask for utility bills.
You may adore the Cape Cod architectural style or the high ceilings and glass walls in a modern home, but those winter heating and summer cooling bills may not fit your monthly budget. Ditto for the water bills that come with maintaining a pristine landscape.
11. Pay close attention to taxes.
Don’t just ask about the seller’s most recent tax bill; ask the amounts for several recent tax bills. In some areas, houses are re-appraised — and taxed at higher rates — frequently. That great deal and good investment may not seem quite so grand if the property taxes skyrocket year after year. Look at local news and talk to your Realtor about how taxes are used in this area. In some cities, schools are substantially funded through property taxes, which means you can count on yours increasing regularly.
12. Check with city hall.
Look into the property’s and the neighborhood’s zoning, as well as any potential easements, liens or other restrictions relating to your property. The seller should disclose these facts, but it’s better to be proactive. If you’re using a buyer’s agent, they should be able to help.
13. Reconsider the bells and whistles.
Are you sure you can live with a one-car garage, or a detached garage, or on-street parking? The pool may be a nice bonus, but can you afford the upkeep?
14. Explore the surrounding area.
If you’re new to the area, you may not know that only three blocks away, this pretty neighborhood backs up to a dumpy commercial zone or a less-than-savory part of town. If the home is near an airport, fire station, police station, hospital or railroad track, expect to hear trains, planes or ambulances throughout the day and night. Make sure you’re not too close to an agricultural area that may generate odors or kick up dust or other airborne problems.
14 Things to Consider Before Buying a Home
When you’re buying a home, it’s easy to let emotions get in the way of reality. “Sometimes we want something so badly, we’re not willing to ask all the questions we should,” says Leslie Levine, author of “Will This Place Ever Feel Like Home?” To make sure your dream home isn’t a mirage, follow these 14 tips:
1. Visit at various times of day.
The windows that let in so much light during the day may be a peeping Tom’s dream at night. That seemingly quiet residential street may be a noisy, highway-feeder street during morning or evening rush hour. The adjacent school may seem like a nice perk if you’re buying in the summer, but during the school year, daily playground noise and extra traffic may be more than you bargained for.
2. Research recent local news.
You need to look at more than the house: Examine the factors you can’t see. For example, perhaps the municipal water well has high levels of contaminants, or a perhaps a high-voltage power line may soon be coming through your back yard. You can also check with the city or county to see if there are any proposed projects.
3. Talk to neighbors.
How many people in the neighborhood own their homes? What do neighbors say are the pros and cons of the area?
4. Ask if the neighborhood has an association.
“Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” Levine asks. “The fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house.”
5. Quiz the sellers about house problems.
What past problems are the sellers aware of? Even if the issues have been fixed, it’s good to know that the house may be prone to, say, ice dams or water leaks so that you can take preventive measures rather than find out the hard way. If you know that the basement flooding was solved by building up the landscaping in a particular area, you won’t level the ground there.
6. Get a home inspection.
Virtually all houses have defects. Some are obvious, and most are curable. But knowing what needs repair can help you negotiate a lower price — or at least prepare you for costs you’ll soon incur. Strongly consider getting inspections for lead paint, radon and wood-eating pests, too.
7. Get detailed records on past improvements.
This isn’t always possible. But if you’re told the house’s exterior was painted two years ago — and then see a receipt noting the whole project cost just $1,000 — then you’re forewarned that cheaper materials were used and that you may be looking at repainting sooner than you thought.
8. Don’t assume remodeling will be easy.
If you voice your ideas to the sellers, you may glean valuable insights. For instance, perhaps that shower is in an odd location because, when the previous owners remodeled 10 years ago, they discovered a costly structural impediment to putting a shower where it would seem more appropriate.
9. Consider the view.
“So many neighborhoods now have teardowns,” Levine notes. “So look at the two houses on either side of you.” Do the adjacent houses look like they might be candidates for a teardown? Is the next lot empty? Does the neighborhood or town have restrictions about what your prospective neighbors can build there? “They may build some behemoth structure that affects your light or the way your house looks or your view,” Levine says.
10. Ask for utility bills.
You may adore the Cape Cod architectural style or the high ceilings and glass walls in a modern home, but those winter heating and summer cooling bills may not fit your monthly budget. Ditto for the water bills that come with maintaining a pristine landscape.
11. Pay close attention to taxes.
Don’t just ask about the seller’s most recent tax bill; ask the amounts for several recent tax bills. In some areas, houses are re-appraised — and taxed at higher rates — frequently. That great deal and good investment may not seem quite so grand if the property taxes skyrocket year after year. Look at local news and talk to your Realtor about how taxes are used in this area. In some cities, schools are substantially funded through property taxes, which means you can count on yours increasing regularly.
12. Check with city hall.
Look into the property’s and the neighborhood’s zoning, as well as any potential easements, liens or other restrictions relating to your property. The seller should disclose these facts, but it’s better to be proactive. If you’re using a buyer’s agent, they should be able to help.
13. Reconsider the bells and whistles.
Are you sure you can live with a one-car garage, or a detached garage, or on-street parking? The pool may be a nice bonus, but can you afford the upkeep?
14. Explore the surrounding area.
If you’re new to the area, you may not know that only three blocks away, this pretty neighborhood backs up to a dumpy commercial zone or a less-than-savory part of town. If the home is near an airport, fire station, police station, hospital or railroad track, expect to hear trains, planes or ambulances throughout the day and night. Make sure you’re not too close to an agricultural area that may generate odors or kick up dust or other airborne problems.
A SkyScraper Reflection that Melts Cars, Cooks Eggs, & Burn Floors
A SkyScraper Reflection that Melts Cars, Cooks Eggs, & Burn Floors
London isn't famous for hot weather, but
that may change soon, and not because of global warming: The design of a new
skyscraper in the city is melting cars and setting
buildings on fire.
"It's absolutely ruined," Martin Lindsay
told the BBC, referring to his Jaguar XJ. Lindsay had
the misfortune of parking his luxury car across the
street from the office building for an hour; the Jaguar now has melted panels,
mirrors and other parts. "You can't believe something like this would happen.
They've got to do something about it."
Local shopkeepers have complained about
carpets catching fire and smoldering front doors. A restaurant owner told London
news site City A.M. that slate tiles on his doorstep had
shattered in the heat.
The building — designed by internationally
renowned architect Rafael Viñoly — is a dramatic edifice with curved exterior
walls. Built at 20 Fenchurch Street in London's financial center, the 38-story
skyscraper is known locally as "the Walkie-Talkie" for its unusual shape.
But that curvilinear shape is exactly
what's causing the problem: The south-facing exterior wall is covered in
reflective glass, and because it's concave, it focuses the sun's rays onto a
small area, not unlike the way a magnifying glass directs sunbeams onto a
superhot pinpoint of light.
James Keaveney of the University of Durham's
Atomic and Molecular Physics department told City A.M. that the inward curve of
the wall is an inherent flaw in the building's design. "It's a concave shape, so
it's going to have a focusing effect on the light that is reflected from
it."
That same concave shape has been used in
the design of solar power plants. A solar dish in New Mexico
contains 82 mirrors that focus sunlight onto an engine that contains hydrogen.
As the gas expands and contracts from heating and cooling, that motion drives
pistons that power a generator that creates electricity.
"There's [also] a power station in Spain
that works on this principle," Keaveney said. "They have an array of mirrors
that focuses light into a central pillar — if it's 60 degrees Celsius [140
degrees Fahrenheit], you could get solar panels and get some energy out of
it."
This isn't the first time Viñoly's
architecture has raised eyebrows as well as temperatures: His Vdara Hotel in Las
Vegas has been criticized for directing sunbeams onto the swimming pool deck
that are hot enough to melt plastic and singe people's hair. The hotspot became
known as the "Vdara death ray."
The Vdara mitigated the "death ray" with
larger sun umbrellas, but fixing the problem in London might take a lot more
work. "There are examples in the past where an architect has had to rebuild the
façade," Philip Oldfield, an expert in tall buildings at the University of
Nottingham's Department of Architecture, told City A.M. "If this is serious,
then I dread to think how expensive it will be."
from dailymail.co.uk website...
House Flipping is on the Rise in the US
Interesting article from nuwireinvestor.com
Home Flipping Makes Comeback
“Home flipping,” a term used to describe buying a home
at a discount, refurbishing it and then selling it at a profit, is making a
comeback thanks to the recovery in the U.S. housing market. Experts say the time
is ideal for flipping because properties are still available for a bargain in
many areas, but are rising quickly in value. Reality TV made the practice look
easy for a time, but many found out it was harder than it looked after the
financial crisis led to a housing market tumble. Now, analysts say the best
places to flip homes are those areas that suffered the most during the crash,
like Arizona, Florida and Nevada. For more on this continue reading the
following article from TheStreet.
The rebounding U.S. real-estate market is leading to a
renaissance in "home flipping" -- the investment strategy in which you buy
distressed houses, make minor upgrades and resell the properties a few months
later for quick gains.
"Right now is an ideal [time] for flipping, because we're
seeing home prices bounce off of the bottom," says Daren Blomquist of
RealtyTrac.com, which recently named the 25 Top U.S. Markets for
Flipping Homes -- including some that offer more than 50% gross returns.
Made popular by reality-TV shows such as Flip This
House>, home flipping looked easy during the housing boom when prices
kept rising. The strategy became decidedly harder during the real estate bust
that followed.
Now, flipping is enjoying a comeback because home prices
have bottomed out in many U.S. locales and begun to rebound.
Blomquist says today's best markets for flippers soared
during the boom and collapsed during the bust. Many are also in the so-called
"Sand States" of Arizona, Florida and Nevada, which suffered through some of the
nation's highest foreclosure rates in recent years.
"These markets all crashed pretty hard, so they've got
lots of available distressed properties," Blomquist says. "But they're also
perpetually popular with consumers because they're located in the warmer
climates that many people want to move to."
Here's a look at the five metro areas RealtyTrac believes offer today's best opportunities for
home flips (defined as buying and selling the same property within six
months).
The site ranked each city based on how much gross profit
local home flippers enjoyed in percentage terms on the average 2012
single-family sale, excluding renovations and other expenses beyond what
investors initially paid for properties. All cities also had at least 500 home
flips during 2012, as well as 9% or higher average annual home-price
appreciation during 2013's first quarter.
Fifth-best U.S. city for home flippers: Memphis, Tenn.
Average gross profit on 2012 deals: 42%
Average gross profit on 2012 deals: 42%
Memphis is unusual among the markets at the top of
RealtyTrac's list that it's not in a Sand State, nor did it have the massive
housing boom and bust other cities saw in recent years.
Still, Blomquist says the 1.3-million-person metro area
is hot among flippers because it's got lots of older houses that cost little to
buy and lend themselves to quick fix-ups and resales.
RealtyTrac found that the average Memphis home flipper
paid just $68,318 per house last year (the lowest price among the top five
cities in the rundown), but resold properties for $96,870. That's a 42% gross
gain.
Another plus: The average Memphis home price rose at a
13% annual rate in 2013's first quarter.
Fourth-best U.S. city for home flippers: Tampa, Fla.
Average gross profit on 2012 deals: 43%
Average gross profit on 2012 deals: 43%
The U.S. housing bust and foreclosure crisis slammed
Tampa, but Blomquist says that means the 2.9-million metro area has lots of
distressed properties for flippers to choose from.
The Cigar City also has an aging housing stock that's
ripe for renovation, plus a warm climate that's popular with consumers -- all of
which add up to great potential for home flips.
RealtyTrac found that the average Tampa property flipper
enjoyed a 43% gross return in 2012, paying $79,538 for a house but selling for
$113,676. Average Tampa home prices also rose at a 9% annual rate during the
three months ended March 31.
Third-best U.S. city for home flippers: Phoenix, Ariz.
Average gross profit on 2012 deals: 44%
Average gross profit on 2012 deals: 44%
Like the phoenix of Greek mythology, the Phoenix housing
market is rising from its own ashes.
One of the U.S. cities hardest hit by the housing bust,
Arizona's capital has recently seen real estate rebound sharply. Average
Phoenix-area home prices soared 33% between 2012's first quarter and 2013's
opening three months -- the strongest appreciation of any city atop RealtyTrac's
rankings.
All told, the typical 2012 Phoenix home flip generated a
44% gross return, with investors paying $146,528 on average per property but
selling for $210,290.
Still, Blomquist warns that Phoenix home values are
rising so fast that he sees "the biggest red flags among any of the top five
cities on our list. The market there might be overheating and a new bubble
forming."
Second-best U.S. city for home flippers: Las Vegas
Average gross profit on 2012 deals: 53%
Average gross profit on 2012 deals: 53%
Las Vegas had America's highest foreclosure rate for 60
straight months between mid-2007 and mid-2012, but Sin City's housing market is
rebounding faster than you can say "hit me."
Average home prices in the 2 million-population metro
area rose at a 24% annual clip during the first quarter, while the typical local
flipper paid $133,198 per home in 2012 but sold for $203,945. That works out to
a 53% gross return.
"Las Vegas had a very dramatic boom-and-bust cycle over
the past seven years, but prices probably overcorrected," Blomquist says.
"Investors finally realized that prices got too low, so it's made sense to them
to jump back in."
Best city for home flippers: Orlando, Fla.
Average gross profit on 2012 deals: 63%
Average gross profit on 2012 deals: 63%
Walt Disney World's (DIS) hometown has become a real Magic Kingdom for home
flippers.
Blomquist says that while Orlando had one of America's
worst foreclosure rates over the past five years, average local home prices
rebounded at a 12% annual rate during 2013's first three months.
RealtyTrac also found that flippers paid a modest
$103,701 on average per property in 2012 but sold for $168,677 -- a 63% gross
return.
Blomquist says Orlando homes have historically enjoyed
strong resale demand from retirees and warm-weather lovers. He adds that if you
can't successfully flip a home, you can usually turn it into a vacation rental
-- "a good, solid fallback plan."
Home Flipping About to Make a Comeback....
great snippet of an article from bigger pockets.com
How to flip a home like Al Capone...The 6 Essential House Flipping Capos You Must Have
Although Al Capone had far more than six team members on his gang of criminals, you really only need to start with the essential six. In most cases, there are usually more than just five team members, especially as you grow your business. But the big six are the base number you’ll need – depending on deal flow and scope of your house flipping career.1. Real Estate Attorney
Even Al Capone had his fair share of lawyers. Although he had a slew of criminal lawyer, he undoubtedly had some real state lawyers on his team as well. The guys did own Chicago after all…For you, although you hopefully will never need the services of a criminal lawyer, you should at least have one good real estate lawyer on your team who you trust implicitly. Although you won’t need him or her to get you out of grand jury subpoena (let’s hope), you need one on your house flipping team to make sure you stay within the confines of the real estate laws in your state and country.
Many new house flippers make the fatal mistake of refusing to hire an attorney. They know they need an attorney but decide instead to “go it alone” or hire some second rate Internet based legal service.
The bottom line is when it comes to finding an attorney; you get what you pay for. Don’t skimp here. Hire a qualified expert attorney who knows real estate law. Think of it as a wise investment instead of a cost; like car insurance. You certainly don’t like paying the premium, but when you get into that fender bender, you are sure glad did.
An attorney may appear expensive at first (especially after you get your first bill) – and especially if the attorney charges a retainer to take you on as a client, but in the end it will cost you a lot more if you hire an incompetent attorney or try using one of those other services.
2. CPA (Certified Public Accountant)
Unlike the accountant (the book keeper as they called him) in The Untouchables who eventually sang like a bird to the authorities and led to Capone’s eventual prosecution on tax evasion charges, your accountant will be your best insurance in keeping you out of trouble with the IRS. This is especially true with the more cash you make.
Like an attorney, hiring the right CPA can save you a lot of money whereas hiring the wrong CPA can cost you a lot of money. In the process of finding a top notch CPA, it may be frustrating to hear so many different kinds of answers regarding real estate and house flipping accounting issues. This is not uncommon as the U.S real estate tax code can be interpreted in many different ways.
Finding an accountant who is extremely familiar with U.S. tax laws for house flipping and real estate investing is best. But the bottom line is you want a CPA who meshes with works for you and does all he can to legally apply good accounting strategies both to keep your taxes as low as possible and not have to worry about the IRS.
Your CPA should also be involved with your business structure from a tax advantage standpoint, so consult with your attorney and make sure they talk with each other to pick a business structure that’s best for you.
3. Insurance Agent
It was probably tough for Al to get an insurance company to back his multi-million dollar bootlegging empire, but you should have no problem getting insurance for your flips. How you handle your insurance largely depends on how you set up your business structure. Make sure you hire and insurance agent that understands your business and can give you good advice on how to insure different types of properties.Different kinds of house flips require different types of insurance, so make sure you ask him or her about homeowners, builder’s risk, and liability and although they won’t be responsible for it at the closing, make sure you get title insurance as well. Your house flipping insurance agent should be a one stop shop for you here.
4. General Contractors
Capone had lots of “trigger men” to do all his dirty work. And although he did brutally murder Albert Anselmi in “batter up” – most times he never pulled the trigger himself. As Ive written here before, there are pros and cons to doing your own rehab work. But mostly, I like to get dirty only in the research phases and let my contractors do the rest.There are a couple of different ways you can handle how to hire contractors to do the renovations on your properties. This can make or break any deal so it is so important you hire the best ones you can. And the best ones you can really trust.
A general contractor is a singular company who runs the entire project; they are responsible for hiring all subcontractors as well. The subcontractors are tradesman like plumbers, electricians and carpenters. The general contractor is responsible for the entire scope of work, works within your budget and makes sure all the subcontractors perform their jobs well – on time and on budget.
If you can find a general contractor that can work with in your budget you set forth on the project this may be the way to go initially. Having a good contractor will especially help you if you are just learning how to get started flipping houses.
5. Real Estate Agents
Capone had many new business development people looking for new deals to grow his empire. And when it comes to flipping homes, you need people to be on the lookout for you as well, which is why real estate agents are such an integral part of your house flip team.
When it comes to real estate agents, you can search out an agent with experience who already is familiar with house flipping or you can train an agent yourself. You may end up working with a few in different territories that they specialize in.
Also, there are a number of REO (real estate owned) agents. These are agents that specialize in selling bank foreclosures. There are also real estate agents that specialize in short sales. These are agents that work with banks to sell a property for the seller before it goes to foreclosure. No matter which one you choose, this team member is vitally important for your deal flow.
6. Wholesalers
Capone of course dealt with some pretty shady characters…and with wholesalers there’s no shortage of them. However, there are some extremely good ones as well who can be a tremendous source of house flip deals for you. Like anything in flipping houses, you get the good with the bad.
Although wholesalers have and probably will continue to have an uphill battle with their real estate reputations, I find that wholesalers are a great source for house flips.
You can find wholesalers everywhere. These are the “I buy houses” and “we pay cash for houses” signs you may see around town. Despite any reservations many house flippers might have on wholesalers, if the numbers make sense, then it’s worth it for both of you. They make money and you make money, everyone wins.
You can also meet wholesalers at REIA meetings, through a quick Google search as well as calling the numbers on those signs. Once you contact them, build the relationship and see what happens. You have no obligation to do a house flip with them, but they may be a great source of new house flips for you.
Selling your home? The cards are in your favor
interesting article from CNN Money.com
Sellers who stage their homes -- rearranging or replacing furniture to bolster appearance -- usually do so just before an open house. The better time to glamorize: right before you post your listing online, where 90% of buyers look first. Says Realtor.com president Errol Samuelson: "Web appeal is the new curb appeal."
Use a professional photographer and get tight shots of fixtures and other details. The cost: $200 to $500 for a gallery of 30 to 40 photos. Homes between $300,000 and $400,000, shot professionally, sold for about $3,000 more than those with amateur images, Redfin found recently.
Guard against low appraisals.
While rapidly rising prices may attract more buyers, the upswing can make it harder to close a deal. One-third of realtors polled in December reported setbacks from low appraisals, including delays in closing, lowered prices, and cancellations.
The problem: Appraisals can come in low because they're based on transactions as old as six months -- out of date, perhaps, in today's market.
Solution: Have your agent personally oversee the process, accompanying the appraiser to point out improvements and supplying data about the latest comparable sales.
Help investors find what they're looking for.
Investors amounted to one-fifth of all homebuyers in January, but are a much larger share of some markets; 38% of deals in Sacramento and 45% in Orlando, for example, involved absentee buyers. Signs of an investor market: a steady stream of resales of foreclosed homes (you can find that info at zillow.com/local-info) and the conversion of many homes in your neighborhood into rentals.
If your area fits the bill, choose an agent experienced in investor sales; she should create a flier that highlights how easy it is to attract tenants, the rents that nearby homes command, and other pertinent bottom-line info. Says Charlotte Sears, president of Coldwell Banker Residential Brokerage in Atlanta: "All investors want to know is what their margins look like."
Renovate your home before you sell
Selling your home? In most parts of the country, you have finally regained the upper hand.
To get your best price, though, you need to finesse your timing, list competitively and match your marketing strategy to local conditions. Lower your sights to make more money.
Rising prices breed rising hopes: In a recent poll, brokers complained that 75% of homeowners think their agent's recommended listing price is too low. Pricing your property above recent sales to cash in on the momentum may slow down deals, and sitting on the market too long can stigmatize a house.
Catch buyers' attention -- and get multiple offers -- by pricing your home in line with comparable sales, says Rick Turley, president of Coldwell Banker San Francisco: "Then let the market take it higher."
Trading up? Move fast. Downsizing? Go slow.
It's tempting to postpone selling to hold out for a better price. But if you want to move to a larger place, act sooner rather than later. True, higher-end homes aren't rising as quickly, but the gap is small. So while you'll be able to sell your home for more if you wait, the appreciation on the trade-up home will be greater.
When you're downsizing, the math works the other way, so it pays to wait.
The case for these strategies should strengthen as gains slow for cheaper homes. "Investors are driving the lower end of the market, and there is a point when the investor opportunity becomes less attractive," says Richard Green, director of the University of Southern California's Lusk Center for Real Estate.
Smooth out your home's rough patches.
Repair that leaky roof and address other obvious structural problems, or you'll have to subtract the cost of doing so from your price. "In today's economy, many buyers don't have as much savings left over after their down payment for improvements," says Teri Herrera, a broker in Bellevue, Wash.
Smaller fixes that pay off the most, according to a HomeGain poll of real estate professionals and consumers: cleaning and decluttering, brightening (adding lamps and clearing window obstructions), and solving electrical and plumbing problems.
Rising prices breed rising hopes: In a recent poll, brokers complained that 75% of homeowners think their agent's recommended listing price is too low. Pricing your property above recent sales to cash in on the momentum may slow down deals, and sitting on the market too long can stigmatize a house.
Catch buyers' attention -- and get multiple offers -- by pricing your home in line with comparable sales, says Rick Turley, president of Coldwell Banker San Francisco: "Then let the market take it higher."
Trading up? Move fast. Downsizing? Go slow.
It's tempting to postpone selling to hold out for a better price. But if you want to move to a larger place, act sooner rather than later. True, higher-end homes aren't rising as quickly, but the gap is small. So while you'll be able to sell your home for more if you wait, the appreciation on the trade-up home will be greater.
When you're downsizing, the math works the other way, so it pays to wait.
The case for these strategies should strengthen as gains slow for cheaper homes. "Investors are driving the lower end of the market, and there is a point when the investor opportunity becomes less attractive," says Richard Green, director of the University of Southern California's Lusk Center for Real Estate.
Smooth out your home's rough patches.
Repair that leaky roof and address other obvious structural problems, or you'll have to subtract the cost of doing so from your price. "In today's economy, many buyers don't have as much savings left over after their down payment for improvements," says Teri Herrera, a broker in Bellevue, Wash.
Smaller fixes that pay off the most, according to a HomeGain poll of real estate professionals and consumers: cleaning and decluttering, brightening (adding lamps and clearing window obstructions), and solving electrical and plumbing problems.
Use a professional photographer and get tight shots of fixtures and other details. The cost: $200 to $500 for a gallery of 30 to 40 photos. Homes between $300,000 and $400,000, shot professionally, sold for about $3,000 more than those with amateur images, Redfin found recently.
Guard against low appraisals.
While rapidly rising prices may attract more buyers, the upswing can make it harder to close a deal. One-third of realtors polled in December reported setbacks from low appraisals, including delays in closing, lowered prices, and cancellations.
The problem: Appraisals can come in low because they're based on transactions as old as six months -- out of date, perhaps, in today's market.
Solution: Have your agent personally oversee the process, accompanying the appraiser to point out improvements and supplying data about the latest comparable sales.
Help investors find what they're looking for.
Investors amounted to one-fifth of all homebuyers in January, but are a much larger share of some markets; 38% of deals in Sacramento and 45% in Orlando, for example, involved absentee buyers. Signs of an investor market: a steady stream of resales of foreclosed homes (you can find that info at zillow.com/local-info) and the conversion of many homes in your neighborhood into rentals.
If your area fits the bill, choose an agent experienced in investor sales; she should create a flier that highlights how easy it is to attract tenants, the rents that nearby homes command, and other pertinent bottom-line info. Says Charlotte Sears, president of Coldwell Banker Residential Brokerage in Atlanta: "All investors want to know is what their margins look like."
Own vs. Rent Calculator
from Realtor.com
This calculator will help you to compare the
costs of renting to the costs of buying a home. Since there are all kinds of
forces at work behind the scenes (interest, property taxes, tax savings,
appreciation, opportunity costs, closing costs, selling costs, etc.), comparing
the cost of renting to the cost of buying is a lot more complicated than just
comparing the monthly mortgage payment to the monthly rent payment. This
calculator attempts to forecast the net effects of all the hidden forces so you
can make an informed decision...
Home prices in 20 US cities rise by most in 7 years
Banner year for 2013...
|
Home prices in 20 US cities
rise by most in 7 years
Denver Post
|
WASHINGTON
— Home prices in 20 U.S. cities rose in the 12 months through July by the most
in more than seven years, helping boost owner equity.
The S&P/Case-Shiller index of property values in 20 cities increased 12.4 percent from July 2012, matching the median projection of 31 economists surveyed by Bloomberg and the biggest year-to-year advance since February 2006, a report from the group showed Tuesday in New York.
Gains in home and stock values are contributing to increases in household wealth that are helping bolster consumer spending, the biggest part of the economy. Nonetheless, the appreciation in property values may cool over the rest of the year as mortgage rates close to a two-year high temper demand.
"Prices may come under a little downward pressure as demand slows," Lindsey Piegza, chief economist at Sterne, Agee & Leach Inc, said before the report. "There was a rush of activity as homebuyers anticipated mortgage costs may rise further," she said, and the recent jump in borrowing costs means "housing activity will slow from here."
Another home-price gauge also showed improvement. Values climbed 1 percent in July from the prior month after a 0.7 percent increase in June, according to figures from the Federal Housing Finance Agency.
Estimates in the Bloomberg survey ranged from gains of 10 percent to 13 percent. The S&P/Case-Shiller index is based on a three-month average, which means the July figure was also influenced by transactions in June and May.
Colorado flood victims face tight rental market-If you have any available housing please try and help flood victims how you can...
If you have any available housing please try and help flood victims how you can...
Denver Post
As if flood victims didn't have enough to worry about, they face extremely tight rental markets in Boulder, Weld and Larimer counties.
"It is going to be a challenge because this is not happening at a time when there is a bunch of rental housing," said Ryan McMaken, an economist with the Colorado Division of Housing.
Apartment vacancy rates ranged from an average of 5.1 percent in Fort Collins to 3.6 percent in Longmont, 3.4 percent in Boulder and a rock-bottom 1.4 percent in Greeley, according to the most recent state tallies.
Allowing for the natural turnover in apartments, about 3 percent is considered a fully rented market, McMaken said.
"Prior to the flood ... the Greeley- Evans area had one of the lowest vacancy rates in the state," said Tom Teixeira, executive director of the Weld County Housing Authority.
Exacerbating the situation is a mismatch between what flood victims want and what the market is offering, said Tom Orlando, director of relocation at Housing Helpers in Boulder.
Flood victims want month-to-month leases, proximity to their damaged homes and yards for their pets. All of those requests are tough to fill in an already-tight market, he said.
Robust resales this summer shrank the supply of condos, townhomes and detached homes for rent. Vacancy rates for those properties metro-wide were 2.2 percent in the second quarter.
Orlando said he is steering flood victims down the U.S. 36 corridor to apartment communities in Westminster, Thornton and Northglenn, where average rents are about $350 a month lower than in Boulder and landlords are finding supply.
"Surprisingly, there have been a lot of apartment communities that had availability come out of nowhere," he said.
McMaken also notes that a construction surge has apartment vacancies in downtown Denver at 6.9 percent, although monthly rents are also higher at an average of $1,537 in the second quarter.
Denver Post
As if flood victims didn't have enough to worry about, they face extremely tight rental markets in Boulder, Weld and Larimer counties.
"It is going to be a challenge because this is not happening at a time when there is a bunch of rental housing," said Ryan McMaken, an economist with the Colorado Division of Housing.
Apartment vacancy rates ranged from an average of 5.1 percent in Fort Collins to 3.6 percent in Longmont, 3.4 percent in Boulder and a rock-bottom 1.4 percent in Greeley, according to the most recent state tallies.
Allowing for the natural turnover in apartments, about 3 percent is considered a fully rented market, McMaken said.
"Prior to the flood ... the Greeley- Evans area had one of the lowest vacancy rates in the state," said Tom Teixeira, executive director of the Weld County Housing Authority.
Exacerbating the situation is a mismatch between what flood victims want and what the market is offering, said Tom Orlando, director of relocation at Housing Helpers in Boulder.
Flood victims want month-to-month leases, proximity to their damaged homes and yards for their pets. All of those requests are tough to fill in an already-tight market, he said.
Robust resales this summer shrank the supply of condos, townhomes and detached homes for rent. Vacancy rates for those properties metro-wide were 2.2 percent in the second quarter.
Orlando said he is steering flood victims down the U.S. 36 corridor to apartment communities in Westminster, Thornton and Northglenn, where average rents are about $350 a month lower than in Boulder and landlords are finding supply.
"Surprisingly, there have been a lot of apartment communities that had availability come out of nowhere," he said.
McMaken also notes that a construction surge has apartment vacancies in downtown Denver at 6.9 percent, although monthly rents are also higher at an average of $1,537 in the second quarter.
South
central Denver and southeast Aurora are other areas with vacancy rates above 6
percent and, in the case of Aurora, average rents below $1,000 a month.
U.S. home sales hit 6½-year high but could slow soon
I'm starting to see the same thing...
Denver Post
WASHINGTON — Sales of U.S. homes rose last month to the highest level since February 2007 as buyers rushed to close deals before mortgage rates increased further.
Yet the gain could represent a temporary peak if higher rates slow sales in coming months.
Sales of previously occupied homes rose 1.7 percent to a seasonally adjusted annual rate of 5.48 million in August, the National Association of Realtors said Thursday. That level is consistent with a healthy market.
August sales reflect contracts signed in June and July, when mortgage rates were rising steadily. The Realtors group cautioned that buyer traffic dropped off significantly in August. That points to fewer sales in the fall.
Higher rates could also depress homebuying next year, the Realtors said. The group forecasts that sales will average 5.2 million in 2014. That's still better than the 4.19 million sales in 2010, when the housing market bottomed.
"We should expect some giveback in sales over the next several months," said Thomas Feltmate, an economist at TD Economics.
Steady job gains and low mortgage rates have fueled a recovery in housing since early last year.
The average rate on a 30-year fixed mortgage was 4.57 percent last week, near a two-year high and more than a full percentage point higher than in May. That's when Federal Reserve Chairman Ben Bernanke suggested that the Fed could soon scale back its $85-billion-a-month bond purchase program, which is intended to keep interest rates low.
Denver Post
WASHINGTON — Sales of U.S. homes rose last month to the highest level since February 2007 as buyers rushed to close deals before mortgage rates increased further.
Yet the gain could represent a temporary peak if higher rates slow sales in coming months.
Sales of previously occupied homes rose 1.7 percent to a seasonally adjusted annual rate of 5.48 million in August, the National Association of Realtors said Thursday. That level is consistent with a healthy market.
August sales reflect contracts signed in June and July, when mortgage rates were rising steadily. The Realtors group cautioned that buyer traffic dropped off significantly in August. That points to fewer sales in the fall.
Higher rates could also depress homebuying next year, the Realtors said. The group forecasts that sales will average 5.2 million in 2014. That's still better than the 4.19 million sales in 2010, when the housing market bottomed.
"We should expect some giveback in sales over the next several months," said Thomas Feltmate, an economist at TD Economics.
Steady job gains and low mortgage rates have fueled a recovery in housing since early last year.
The average rate on a 30-year fixed mortgage was 4.57 percent last week, near a two-year high and more than a full percentage point higher than in May. That's when Federal Reserve Chairman Ben Bernanke suggested that the Fed could soon scale back its $85-billion-a-month bond purchase program, which is intended to keep interest rates low.
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