Around the world, governments promote home ownership

interesting article from pewresearch.org on how the USA compares to other countries when it comes to homeownership worldwide....




High on Congress’ long to-do list is deciding what to do about Fannie Mae and Freddie Mac, the two giant government-run companies that dominate the nation’s mortgage market (together they accounted for 78% of all mortgage-backed securities issued in the first quarter of this year). Which is another way of saying, Congress has to decide how involved the federal government should be in supporting the nation’s housing industry.

Earlier this summer, Sens. Mark Warner and Bob Corker released a proposal to gradually wind down Fannie and Freddie, though their plan would retain a government mortgage guarantee. Rep. Jeb Hensarling’s plan would go further, leaving mortgage financing entirely to the private sector. President Obama, in a speech Tuesday in Phoenix, outlined his own vision for a post-Fannie and Freddie future.

The two entities — and, more specifically, their guarantees against mortgage defaults — have long been considered key to making homes widely affordable to Americans (along with other policies such as the mortgage-interest deduction). Home ownership, in turn, has for decades been perceived as a central part of the American dream — though not so much lately, as a Pew Research Center survey last year demonstrated.

Most developed countries use tax policies, interventions in the financial markets, or other methods to encourage home ownership, according to a 2011 report from the Organization for Economic Cooperation and Development. So much so, in fact, that the United States had one of the lowest home ownership rates among 42 countries we examined (all the members of the OECD and the European Union, plus Singapore).

One thing that stands out from this list is the number of countries in central and eastern Europe with extraordinarily high home ownership levels. A 2007 paper attributed this to two forces: relatively large rural populations, who typically either built their own homes or inherited them; and the rapid privatization of public rental housing in the 1990s following the collapse of state socialism. In addition, the building boom of the 2000s likely contributed to high ownership rates in countries such as Spain and Portugal.

But even the housing bubble didn’t move the needle much on U.S. home ownership. The ownership rate peaked in 2004 at 69.2%, according to the Census Bureau — not far above its long-term average of about 65%.

Trivia: What percentage of Americans Under Age 35 Own A Home?

Answer: US Census Bureau States that only 36% of American under the age of 35 own a home. This is the lowest Level since 1980.

How to Approach Homeownership Based on Age

interesting article from realtor.com

Homeownership is a crucial component of building wealth, as seen in recent research, but it means different things for different age groups.

For example, seniors who are in the best financial situation to handle expenses after retirement are homeowners who have no remaining mortgage—they have the value of their home as a cushion in their household wealth, and they spend less on housing than seniors who rent.

Although owning a home can benefit consumers of all ages, specific homeownership strategies should differ based on your stage of life.

Here’s a summary of guidelines for approaching homeownership applied to today’s biggest generations.

Millennials

Understand the advantages of owning a home. Save for your down payment. Work on your credit score. See what you can afford to buy. Seek the advice of a local REALTOR® to advise on local demand and supply to ensure you can get a home that fits your needs at an appropriate market price. Time is on your side.

Forecasts for the economy and housing are positive, but even if there are down years in the future, your investment should outpace inflation and help you build wealth—in addition to enjoying your own home while avoiding ever-escalating rents.

To benefit most from the compounding gains of homeownership, it is best to start sooner rather than later, assuming you can afford to buy today and qualify for a mortgage.

Gen X-ers

Ensure you have a game plan to pay off your mortgage by the time you intend to retire. If you refinance to lock in lower rates, make sure you get a shorter term than 30 years.

If you were a victim of the foreclosure crisis, work on your game plan for re-entering the property ladder. You also still have time to reap the longer-term benefits—plus you are approaching your peak earning years such that shorter-term mortgages like a 15-year or 20-year loan would work. Shorter-term mortgages would enable you to retire while owning your home free and clear.

Boomers

Think about your plans for retirement and if that aligns with the remaining term on any mortgages you hold. You may also be considering retirement homes and second homes. Buying sooner rather than later will help you lock in today’s lower prices and mortgage rates while enabling you to enjoy your dream home sooner.

Plus, those young millennials you raised, taught, coached and now manage may want to buy your existing home: It’s a great time to sell.

Know the Facts Before Selling Your Home to Investors

interesting article on something I'm seeing more of in the Denver area with low rental vacancy rates....

When your home goes up for sale, you likely envision a happy family or young couple putting in their offer and living happily ever after in your former house.

However, individual buyers aren’t the only ones who may make an offer on your property.

You may receive offers early on from investors: Firms and individuals often buy residential homes to use as rentals, to resell at a profit or to build up a property portfolio.

And as with most transactions, there are upsides and downsides in selling your home to investors. Make sure you know everything you can before you act.

Advantages

Selling to an investor over a traditional buyer has some key advantages:
◾A regular buyer typically needs to wait for financing. This delay can slow down closing, and you may have to wait longer to finish the deal. Investors often buy in cash and are ready to close immediately, which is a huge perk if you’re looking to sell quickly.
◾Many investors are willing to offer flexible arrangements. For example, an investor might be willing to take over your mortgage, which is great if you’re underwater and struggling to find a buyer.
◾Most investors buy a property “as is”: If you haven’t kept up with home repairs or if your kitchen needs an upgrade, this is an attractive option.

Disadvantages

Working with an investor isn’t always better than working with a traditional buyer. Consider these factors before you make a deal:
◾You won’t know who is buying your house. Investors aren’t legally required to tell you who is making the offer or why they want to buy your home. Some buyers may wonder if an investor only is interested because they know they can flip the property for more money.
◾You may not get the best deal. Most investors only buy properties that are below market value, while a buyer might pay your asking price.
◾You’ll have to do extra research to vet the investor and make sure you’re not being scammed.

Making a Deal With an Investor

Finding an investor might not be easy. Investors typically look for properties they can get cheap in great locations. For example, a home that’s under market value in an area popular for renters is a great deal for an investor.

Usually, investors identify properties through their own research. However, you can increase your chances by working with a REALTOR® who’s worked with investors in the past and can reach out to these firms to promote your property.

Once you have an offer, look over the deal carefully. If the investor put in a low offer on a home you just listed, taking the deal might not make sense. But if your home has been on the market for months with no nibbles, working with an investor may make sense.

If you’re struggling to decide, remember to work with a REALTOR®: They can point you in the right direction.

REALTORS® Expect Modest Price Growth in Next 12 Months-2015

interesting article from economist outlook blog from National Association of Realtors...

With rising inventory and modest expectations of demand growth, REALTORS® responding to the October 2014 survey expected home prices to increase modestly in the next 12 months, according to data gathered from the October 2014 REALTORS® Confidence Index Survey: http://www.realtor.org/reports/realtors-confidence-index[1]. Local conditions vary with expectations anchored on factors such as the level of inventory, the state of the local job market, and credit conditions.

The median expected price increase is about 3 percent. The map shows the median expected price change in the next 12 months based on the August – October 2014 surveys[2]. No state had a median expected price growth above 5 percent. States with the most upbeat price expectations (orange) include California, Washington, North Dakota, Texas, Florida, Georgia, the District of Columbia, and Massachusetts–states with strong housing markets, job growth, and economies.


[1] The median expected price change is the value such that 50 percent of respondents expect prices to change above this value and 50 percent of respondents expect prices to change below this value. A median expected price change is computed for each state based on the respondents for that state. The graph shows the range of these state median expected price change. To increase sample size, the data is averaged from the last three survey months.


[2] In generating the median price expectation at the state level, we use data for the last three surveys to have close to 30 observations. Small states such as AK,ND, SD, MT, VT, WY, WV, DE, and the D.C. may have less than 30 observations.

Purchasing 'Air Rights' part of Dowtown Penthouse Landscape

interesting article from aspendailynews.com

Buyer of most expensive per-square-foot condo paid more to ensure keeping view

Even Aspen’s air space is worth a hefty price in the lucrative world of real estate.

The price on the record-breaking downtown penthouse sale that occurred last month was driven partly by the buyer purchasing the “air rights” above an adjacent building to ensure views of Aspen Mountain in perpetuity.

The sale of the 5,053-square-foot condo on top of the Muse building located at 625 E. Hyman Ave. for $15.8 million was the most expensive per-square-foot downtown penthouse ever sold. It pencils out to $3,126 a square foot.

“That is a record for a downtown penthouse for sure,” said Tim Estin, a residential real estate broker at Aspen Snowmass Sotheby’s Real Estate who writes a blog called Estin Report about Aspen homes and the market.

The Muse penthouse buyers bought the property from developer Nikos Hecht, who included the air rights above the building at 602 E. Cooper Ave., which is home to the Mezzaluna restaurant and is located south of the residential property. The penthouse’s rooftop deck is taller than the Mezzaluna building and has direct views of Aspen Mountain.

The deal for the air rights means that, in effect, no vertical development can occur on the Cooper Avenue property, which according to county assessor records is called Hunter Plaza. It is owned by downtown landlords Tony Mazza and Frank Woods who reportedly sold the air rights above their building to Hecht.

Craig Morris, the Sotheby’s International Realty broker who represented the buyer in the penthouse sale, said the deal also is known as buying a “view plane easement.” The dollar value of those air rights is not disclosed but Morris said it was “a lot,” and it was part of the purchase price. He also noted that it’s the first time he has seen or heard about such a deal.

City of Aspen community development director Chris Bendon said he has heard of buying an easement to a view plane but “it’s not common.”

It’s not just the air rights that contribute to the penthouse’s high price tag in terms of square footage — it’s also the size and layout.

“It’s a unique layout,” said Brandon Blocker, a Sotheby’s International Realty agent who also represented the buyer. “It’s 5,000 square feet all on one level and a deck ... and they bought the air rights so their view can’t be blocked.”

It is a four-bedroom, four-and-a-half bathroom penthouse with a rooftop deck and pool.

Bigger is better

The Muse penthouse is one of a handful of residential units in the commercial core that is larger than what the city code allows for, which is a maximum of 2,500 square feet.

“It’s a very special and unique property; it’s almost one-of-a-kind,” Blocker said. “It’s really hard to find in the core because of the square footage.”

Also a contributing factor is the fact that penthouses are no longer permitted in the commercial core as a result of legislation passed in 2012.

Before Aspen City Council passed that ordinance, several building owners submitted land-use applications that include the development, allowed by right, of up to 2,500-square-foot penthouses. These properties include the old Aspen Athletic Club, Charles Cunniffe Architects offices, the Garfield & Hecht law office, Zocalito and the Red Onion annex.

Two penthouses are under construction — at the corner of Spring Street and Hopkins Avenue by developer Greg Hills, and the other on Hyman Avenue which also is owned by Hecht, along with his father, Andy. The Aspen Core building, at the corner of Hyman and Hunter, will house two penthouse units at 1,500 square feet and 6,000 square feet. They are not allowed to be combined, Bendon noted.

Both Hyman Avenue penthouses — at the Muse and Aspen Core buildings — were borne out of negotiations with the city of Aspen. The Muse building, located next to the Aspen Art Museum, was allowed after Nikos Hecht sued the city for denying an earlier development proposal at the council table. The settlement resulted in two top-floor residences that were allowed to be combined, Bendon said, as well as the next-door Aspen Art Museum. The Aspen Core penthouses were negotiated in exchange for the Hechts not knocking down two now historically designated properties next door — the Tom Benton building and Little Annie’s Eating House.

“Penthouses are a diminishing asset in town,” Estin said, adding that as the number of those types of properties continues to dwindle their value goes up.

Bendon agreed.

“Fundamentally, the biggest factor is there are many more people who want that product,” he said. “That is the market solution for folks.”

More competition in the marketplace

Estin said the 14 townhomes approved on South Aspen Street, which are the alternative to a failed hotel development on the same site, are in direct competition with downtown penthouses.

“The OneAspen townhomes have added a wrinkle,” he said, adding the price per square foot for them hovers between $1,700 and $2,900.

Maureen Stapleton, a broker for Sotheby’s International Realty, confirmed that eight of the 14 townhomes have been reserved with a refundable $250,000 deposit. They went on the market in July and range between $8.5 million and $16.2 million. Their sizes are between 4,067 square feet and 5,722 square feet. They are expected to begin construction in the spring and be completed by June of 2016.

She noted that the townhomes are in the last prime location — not only walking distance to the downtown core but also at the base of Aspen Mountain. The site is also located near two city parks.

“We are so limited by growth and our surroundings,” she said. “That neighborhood is going to be fantastic.”

Moving and Buying a Home in Winter

from moving.about.com

So real estate wisdom tells us that spring and summer are the prime seasons for house hunting. People are more likely to get out and shop when the weather is nice. It is a more pleasant time of year, and sellers know their yards look better when not covered in snow. Yet there are some very logical and compelling reasons for going shopping for a house in the winter as well.

As we know, Moving and Real Estate often go hand in hand, and though we'd like to dictate when we move and when we buy a house, very often other circumstances can emerge and force us to sell, buy and move anytime of year. But having to buy a house in the winter is not the worst thing that can happen. In fact, here are some advantages that show how you could benefit from house hunting in the winter.

Fewer Buyers to Compete With

The most obvious plus is exactly because real estate wisdom says to shop spring and summer. As a result of this popular piece of real estate advice, there will be fewer buyers in competition during the winter months. It's simple economics - the low demand will work in your favor. So for the investor looking to swoop for a good deal in the house market, the winter can be prime time.

Prices Will Be Lower

When you have fewer buyers in the market, supply exceeds demand. This usually results in prices will being lower than during the hot season.

Sellers Will Be Motivated

All the low activity in the winter will result in sellers being far more motivated to sell. Real estate agents know that the slow winter months are when sellers are more willing to negotiate, whether it is on selling price, closing costs, closing date or even terms of the sale, including what household appliances and items are included in the sale. And these are all the very reasons that many real estate agents recommend that their clients delay listing their homes till at least the spring. The winter is not a great time for sellers, in general.

Furthermore, there are the circumstances hinted at above when sellers are forced to sell during the winter. Perhaps a job offer has dictated a winter move, or the seller may have personal issues that are dictating his/her actions - financial woes, divorce, etc. Again, this may work to the buyer's advantage for the seller will be very motivated.

Fewer Chances That There Will Be Multiple Offers on the House You Want

Another reason that winter can be such a buyer's market for real estate is that the fewer number of buyers competing for homes means that the chances of there being multiple offers on a single property are greatly reduced. This again translates to buyers having the upper hand over sellers in the negotiations.

Your Real Estate Agent Will Work Harder For You

Low activity during the winter months also means you will have the undivided attention of your realtor, and he or she will be working harder for you. These lean months of low sales volume encourage realtors to try just that little bit harder to negotiate a sale.

So brave the cold, pull on a winter coat, and get out there and house hunt. Remember that in the U.S., it is still a great time to invest in real estate. Prices are low and so are interest rates. Check out these Tips For Buying a Home.

Top 5 Market Insights

from Denver Metro Association of Realtors

TOP 5 Market Insights:

1. Hottest price range for Single Family Homes: $200,000 to $299,999
2. Hottest price range for Condos: $100,000 to $199,999
3. The Condo market remains hot
4. Top three counties for transactions: Denver, Arapahoe and Jefferson
5. High rent prices and desirability of Denver area driving Millennials into the market

Top 10 Tips for Selling Your Home During the Holidays

from FrontDoor.com

Attract homebuyers even during the holidays with these useful tips!
The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you've committed to the challenge, don your gay apparel and follow these tips from FrontDoor.

•Deck the halls, but don’t go overboard.
Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.


•Hire a reliable real estate agent.
That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.


•Seek out motivated buyers.
Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.


•Price it to sell.
No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.


•Make curb appeal a top priority.
When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.


•Take top-notch real estate photos.
When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.


•Create a video tour for the Web.
You'll get less foot traffic during the holidays thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm.


•Give house hunters a place to escape from the cold.
Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.


•Offer holiday cheer in the form of financing.
Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.


•Relax — the new year is just around the corner.
The holidays are stressful enough with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don't sell now, there's always next year, which, luckily, is only a few days away

You Can Buy This Abandoned CT Town For Less Than A Brooklyn Apartment

from gothamist.com

This cute, abandoned town in Connecticut is basically Stars Hollow from Gilmore Girls, and it's currently being sold off at auction with a starting bid of $800,000. That's less than a brownstone in Brooklyn. That's less than some studio apartments here. It's a whole goddamn town! That's 62-acres, plus plenty of homes and General Store type structures that may or may not be haunted by cool, historic ghosts. Here's the deal:

"Why are they selling an entire town? Well, for starters, it’s been vacant for more than 20 years and through its history, has been abandoned not once, not twice, but three times
Dating back to the 1830s, Johnsonville was once a thriving mill town and popular recreation spot set along the Moodus River, with amenities including a restaurant called the Red House Restaurant, a general store and a one-room schoolhouse.

Victorian and colonial-style houses with fireplaces and pillared porches were built by the families of the mill-owners where they lived contently up until the 1950s. All the historic buildings still remain. But then modernization crept up on the quaint community, work dried up and Johnsonville became a ghost town for the first time."


According to the auction site, the buyer will be in a unique opportunity to redevelop the town by combining "the historic value of the 19th century village with 21st century living as permitted uses include: single family, multifamily housing to include market rate and affordable, senior housing, arts/entertainment center, B&B’s, inn, restaurant/banquet facility, retail shops and schools." And just think, you'd be like a 40 minute drive to all that pizza.

It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money - that's all. When you pay too little, you sometimes

great quote from Jon Ruskin

"It's unwise to pay too much, but it's worse to pay too little. When
you pay too much, you lose a little money - that's all. When you pay
too little, you sometimes lose everything, because the thing you
bought was incapable of doing the thing it was bought to do. The
common law of business balance prohibits paying a little and getting a
lot - it can't be done. If you deal with the lowest bidder, it is well
to add something for the risk you run, and if you do that you will
have enough to pay for something better."

Home Inspection Nightmares

Home Inspection Nightmares XXVII from thisoldhouse.com

Shocking electrical work, dangerous decking, and more questionable building practices found by the home inspectors in The ASHI Reporter

"How ingenious is this: To reduce the chance of electrocution from the circuit breaker panel, we simply lowered the shower head!"



"Duct-tape siding: I wonder if the paint voids the warranty."



"While inspecting a 120-plus-year-old home, I found this attic stairway opening directly outside the door from an attic bedroom. I sure hope the people sleeping here don't sleepwalk."



"This house comes with mature trees!!"



"This is a welcome mat covering a hole in the roof. Welcome to my roof!"



"I found this at a recent inspection. Don't worry, the cardboard will protect you from the deadly shock awaiting you behind the sign."

Home Upgrades with the Lowest ROI

from houselogic.com...interesting article...

Life is a balancing act, and upgrading your home is no different. Some upgrades, like a kitchen remodel or an additional bathroom, typically add value to your home. Others, like putting in a pool, provide little dollar return on your investment.


Of course, home owning isn’t just about building wealth; it’s also about living well and making memories — even if that means outclassing your neighborhood or turning off future buyers. So if any of these six upgrades is something you can’t be dissuaded from, enjoy! We won’t judge. But go in with your eyes wide open. Here’s why:

1. Outdoor Kitchen

The fantasy: You’re the man — grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen.

The reality: For what it costs — on average $12,000-$15,000 — are you really gonna use it? Despite our penchant for eating alfresco, families spend most leisure time in front of some screen and almost no leisure time outdoors, no matter how much they spend on amenities, according to UCLA’s Life At Home study. And the National Association of Home Builders’ 2013 What Home Buyers Really Want report says 35% of mid-range buyers don’t want an outdoor kitchen.

The bottom-line: Instead, buy a tricked out gas grill, which will do just fine when you need

to char something. If you’re dying for an outdoor upgrade, install exterior lighting — only 1% of buyers don’t want that.

2. In-Ground Swimming Pool

The fantasy: Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer.

The reality: Pools are money pits that you’ll spend $17,000-$45,000-plus to install (concrete), and thousands more to insure, secure, and maintain. Plus, you won’t use them as much as you think, and when you’re ready to sell, buyers will call your pool a maintenance pain.

The bottom-line: If your idea of making it includes a backyard swimming pool, go for it. But, get real about:
How many days per year you’ll actually swim.
How much your energy bills will climb to heat the water ($760-$1,845 depending on location and temperature).
What you’ll pay to clean and chemically treat the pool ($20-$100/month in-season if you do it yourself; $75-$165/month for a pool service).
The fact that you’ll likely need to invest in a pool fence. In fact, some insurance carriers require it.

If you do put in a pool, you can save money by installing a solar heater.

3. In-Ground Spa

The fantasy: Soothing aching muscles and sipping chardonnay with friends while being surrounded by warm water and bubbles.

The reality: In-ground spas are nearly as expensive ($15,000-$20,000) as pools and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50-$400) to keep children, pets, and leaves out. And, like in-ground pools, in-ground spas’ ROI depends solely on how much the next homeowner wants one.

The bottom-line: Unless you have a chronic condition that requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000-$2,500, and you can take it with you when you move.

4. Elevator

Your fantasy: No more climbing stairs for you or for your parents when they move in.

The reality: Elevators top the list of features buyers don’t want in the NAHB “What Buyers Really Want” report. They cost upwards of $25,000 to install, which requires sawing through floors, laying concrete, and crafting high-precision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons.

The bottom-line: If you truly need help climbing stairs, you can install a chair lift on a rail system ($1,000-$5,000). Best feature: It can be removed.

5. Backup Power Generator

Your fantasy: The power in your area goes kaput, but not for you. You were smart enough to install a backup power generator. While the neighbors eat cold hot dogs by a flashlight beam, you’re poaching salmon in your oven and pumping out Red Hot Chili Peppers tunes.

The reality: Power outages may seem to go on forever, but they don’t. Fifty dollars worth of batteries can power portable lights, radios, and TVs; a car adaptor will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days.

The bottom-line: If you live in areas where power shortages are the rule, not the exception, spend the money for reliable backup power: Your still-frozen steaks, home office fax, and refrigerated medicine will thank you. But if the power goes out rarely, then installing a standby generator is overkill.

Nationwide, homeowners recouped 67.5% on their average $11,742 investment in a backup generator — one of the lowest ROIs on the annual Cost vs. Value Report. If you need occasional emergency power, a gasoline-powered portable generator ($200-$650) probably will suffice.

Related: What I Learned About Portable Generators One Dark and Stormy Night

6. New Windows

The fantasy: Brand new windows that don’t stick, and slash energy bills.

The reality: A $10,000 vinyl window replacement project will recoup about 70% of your investment at resale, and if they’re Energy Star-qualified, they can save you around $300 in energy bills per year. So, plan to live in your house about another 10 years to recoup the cost of new windows.

The bottom-line: We get it — new windows are sturdy, pretty energy savers. But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs. And if you spend about $1,000 to update insulation, caulking, and weather-stripping, you’ll save 10%-20% on your energy bill.

10 Interior Design Trends That Turn Off Home Buyers

good article from realtor.com

You want your home to look its best, and maybe you’ve been inspired by the interior design trends you’ve seen in magazines, on TV or on design websites.

But following some of the hottest home remodeling and interior design trends can backfire when it comes time to sell your home.

Buyers want to picture themselves in a home, and highly individualistic touches can get in the way of that.

When you’re ready to sell your home, it’s best to put things in pristine, move-in condition and remove all of the individual touches that made your house a home.

After all, your goal is to get potential buyers to picture themselves in the home—and they won’t be able to do that if your decorating style still dominates.

Check out the caveats that go along with these home interior design trends.

1. Boldly Painted Walls

Decorators often tout black or another bold paint color as the perfect backdrop to metallic accessories or appliances in modern home design.

The reality is that people prefer the exterior and interior walls of a home to be neutral. Even though repainting is cheap and relatively easy to do, it’s still a pain and buyers might not want to bother.

When decorating, your best bet is to stick to an appeasing hue for the walls and use accessories to provide pops of color.

2. Wallpaper

Bold, graphic patterns increasingly are being incorporated into interior design, often in the form of wallpaper.

But wallpaper—even if it’s only on one wall—is an extremely personal choice and time-consuming to remove if it doesn’t appeal to the buyer

Consider replacing wallpaper with a neutral paint for broader appeal.

3. Lavish Light Fixtures

While potential buyers want rooms that seem airy and bright, beware of installing a showpiece light fixture that is too modern or ornate.

Fixtures should enhance your home—not steal the spotlight.

4. Gleaming Gold

Designers may be mixing silver and gold to give homes star quality, but it might be wise to change out fixtures if they have the wrong metallic sheen.

Gold can give a home an outdated, ’80s feel. Switching out the faucet and door handles with a more appealing finish—such as brushed nickel—is relatively inexpensive and can help make your home appear sleek rather than out of style.

5. Converted Garages

People want a covered parking space so that they have a safe place for their car—especially in areas where street parking is at a premium. Additionally, people often use their garage as storage space.

If you convert your garage into a space tailored your specific needs, such as a music practice room, it may not suit your potential buyers.

6. Converted Bedrooms

Like with the garage, people want rooms built for their original purpose.

If you’ve converted an unused bedroom to an office, walk-in closet, or a game room, make sure you can easily convert it back to a bedroom when you’re ready to sell.

7. Carpets

While designers love to play with the texture of shag carpeting as it feels soft underfoot, the majority of home buyers prefer hardwood floors.

People assume carpets trap dirt, germs and odors, and they don’t want to go through the hassle of steam cleaning their home before they can move in. Potential buyers also don’t want to spend time removing carpet to expose hardwood floors.

If someone really loves carpet, it’s much easier for them to add it themselves—after the purchase.

8. Too-Lush Landscaping

The “outdoor living room” is all the rage, and you may be tempted to build out your backyard into a lavish wilderness of flowers.

But potential buyers may be hesitant to buy a home with an overly landscaped property requiring a lot of maintenance.

Focus on creating or maintaining a nice and neat outdoor space that people can enjoy without too much fuss.

9. Pools and Hot Tubs

A pool may seem like a luxurious feature, but it can be a big turnoff for buyers.

Pools are perceived to be expensive to maintain and potential safety hazards, especially for families with children. Above-ground pools are eyesores and can leave a dead spot in the backyard.

These sentiments extend to hot tubs, too. Many people see hot tubs as breeding grounds for bacteria, and they are not a feature easily removed from the deck or back yard.

10. Fancy (or Not) Pet Products

Sales of pet products are expected to increase nearly $3 billion from last year, and there’s an increasing market for luxury pet items.

But even animal lovers don’t want to see another family’s pet paraphernalia in a potential home. Even if your home is immaculate, the presence of pet-related items will give the impression that it’s dirty.

Be sure to remove all traces of your pet—including toys, food dishes and photos—before listing your home for sale.

Where Young College Graduates Are Choosing to Live

interesting article from nytimes.com

When young college graduates decide where to move, they are not just looking at the usual suspects, like New York, Washington and San Francisco. Other cities are increasing their share of these valuable residents at an even higher rate and have reached a high overall percentage, led by Denver, San Diego, Nashville, Salt Lake City and Portland, Ore., according to a report published Monday by City Observatory, a new think tank.

And as young people continue to spurn the suburbs for urban living, more of them are moving to the very heart of cities — even in economically troubled places like Buffalo and Cleveland. The number of college-educated people age 25 to 34 living within three miles of city centers has surged, up 37 percent since 2000, even as the total population of these neighborhoods has slightly shrunk.

Some cities are attracting young talent while their overall population falls, like Pittsburgh and New Orleans. And in a reversal, others that used to be magnets, like Atlanta and Charlotte, are struggling to attract them at the same rate.

Even as Americans over all have become less likely to move, young, college-educated people continue to move at a high clip — about a million cross state lines each year, and these so-called young and the restless don’t tend to settle down until their mid-30s. Where they end up provides a map of the cities that have a chance to be the economic powerhouses of the future.

As metropolitan areas vie for these residents, some are attracting them at a higher rate than the national average. The rate over the last dozen years does not necessarily reflect the current percentage. For example, Denver’s percentage in this age group is 7.5, higher than Houston’s and more than the national average of 5.2 percent, but lower than that of Washington, the Bay Area and Boston.


“There is a very strong track record of places that attract talent becoming places of long-term success,” said Edward Glaeser, an economist at Harvard and author of “Triumph of the City.” “The most successful economic development policy is to attract and retain smart people and then get out of their way.”

The economic effects reach beyond the work the young people do, according to Enrico Moretti, an economist at the University of California, Berkeley, and author of “The New Geography of Jobs.” For every college graduate who takes a job in an innovation industry, he found, five additional jobs are eventually created in that city, such as for waiters, carpenters, doctors, architects and teachers.

“It’s a type of growth that feeds on itself — the more young workers you have, the more companies are interested in locating their operations in that area and the more young people are going to move there,” he said.

About 25 percent more young college graduates live in major metropolitan areas today than in 2000, which is double the percentage increase in cities’ total population. All the 51 biggest metros except Detroit have gained young talent, either from net migration to the cities or from residents graduating from college, according to the report. It is based on data from the federal American Community Survey and written by Joe Cortright, an economist who runs City Observatory and Impresa, a consulting firm on regional economies.

Denver has become one of the most powerful magnets. Its population of the young and educated is up 47 percent since 2000, nearly double the percentage increase in the New York metro area. And 7.5 percent of Denver’s population is in this group, more than the national average of 5.2 percent and more than anywhere but Washington, the Bay Area and Boston.

Denver has many of the tangible things young people want, economists say, including mountains, sunshine and jobs in booming industries like tech. Perhaps more important, it also has the ones that give cities the perception of cultural cool, like microbreweries and bike-sharing and an acceptance of marijuana and same-sex marriage.

“With lots of cultural things to do and getting away to the mountains, you can have the work-play balance more than any place I’ve ever lived,” said Colleen Douglass, 27, a video producer at Craftsy, a start-up with online classes for crafts. “There’s this really thriving start-up scene here, and the sense we can be in a place we love and work at a cool new company but not live in Silicon Valley.”

Other cities that have had significant increases in a young and educated population and that now have more than their share include San Diego, Baltimore, Pittsburgh, Indianapolis, Nashville, Salt Lake City and Portland, Ore.

At the other end of the spectrum are the cities where less than 4 percent of the population are young college graduates. Among those, Detroit lost about 10 percent of this group, while Providence gained just 6 percent and Memphis 10 percent.

The population of young, educated people in Dallas, Charlotte and Raleigh is also growing more slowly than their populations as a whole.

The effects of the migration of the young and the restless are most vividly seen in urban cores. In 1980, young adults were 10 percent more likely than other people to live in these areas, according to the report from City Observatory, which is sponsored by the Knight Foundation. In 2010, they were 51 percent more likely, and those with college degrees were 126 percent more likely. The trend extends to all the largest metropolitan areas except Detroit and Birmingham, Ala.

Of the metropolitan areas with the most populous city centers, Washington and Philadelphia showed the largest increases of young adults living there, at 75 and 78 percent. Other cities that have made big gains in that category are Baltimore, Los Angeles, San Diego, Dallas, Miami and St. Louis. Washington also had the largest share of young college graduates over all, at 8.1 percent.

“They want something exciting, culturally fun, involving a lot of diversity — and their fathers’ suburban lifestyle doesn’t seem to be all that thrilling to many of them,” Mr. Glaeser said.

How many eventually desert the city centers as they age remains to be seen, but demographers predict that many will stay. They say that could not only bolster city economies, but also lead to decreases in crime and improvements in public schools. If the trends continue, places like Pittsburgh and Buffalo could develop a new reputation — as role models for resurgence.

10-Step Guide to Buying a House

some good advice from realtor.com

1. Are You Ready to Become a Homeowner?

Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a house is a financial and emotional decision that requires the experience and support of a team of reliable professionals.

2. Get a REALTOR®
In the maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

3. Get a Mortgage Pre-approval
Most first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the process. Find out how much you can afford before you begin your home search.

4. Look at Homes
A quick search on realtor.com® will bring up thousands of homes for sale. Educating yourself on your local market and working with an experienced REALTOR® can help you narrow your priorities and make an informed decision about which home to choose.

5. Choose a Home
While no one can know for sure what will happen to housing values, if you choose to buy a home that meets your needs and priorities, you’ll be happy living in it for years to come.

6. Get Funding
The cost of financing your home purchase is usually greater than the price of the home itself (after interest, closing costs and taxes are added). Get as much information as possible regarding your mortgage options and other costs

7. Make an Offer
While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value – or additional costs - for buyers

8. Get Insurance
No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. Real estate insurance protects owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

9. Closing
The closing process, which in different parts of the country is also known as “settlement” or “escrow”, is increasingly computerized and automated. In practice, closings bring together a variety of parties who are part of the real estate transaction

10. What’s Next?
You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process? Whether you’re a first-time buyer or a repeat buyer, you’ll want to take several more steps.

$680K vacation home built on wrong Florida lot

a big oops....an interesting article from 9news.com

$680K vacation home built on wrong Florida lot

What happens when you spend $680,000 to build a three-story dream house, complete with 5½ bathrooms, a home theater, game room and a screened-in pool — and it's put in the wrong place?

A 5,300 square-foot conundrum.

A Missouri couple must face negotiations and talks of resolution after the Florida home they commissioned was built on the wrong lot in the Ocean Hammock gated community, reports the Daytona Beach News-Journal.

The surveying mistake was discovered nearly six months after the home was complete.

Homeowners Mark and Brenda Voss are not new to the community -- they own a total of 19 residential lots (not including the lot this house was built on.) They planned to use the new house as a vacation rental, according to the News-Journal.

The parties have hired lawyers and are currently trying to negotiate a settlement.

6 Reasons Your Home is Still on the Market

6 Reasons Your Home is Still on the Market

good food for thought from trulia.com

Nothing’s more frustrating for a seller than having your home sit on the market. And sit… and sit… and sit some more.

Maybe buyers are touring your house, but not making offers. Or maybe buyers aren’t visiting your home at all. Either way, you’re starting to feel rejected, like the last kid to be picked in dodge ball.

Have no fear. Often, the reason a home sits on the market for longer than expected boils down to a few easy-to-fix issues. Here are six of the big ones.

1. You’ve priced it too high.

No matter what you feel your home should be worth, the truth is it’s only worth what people are willing to pay for it. Get a feel for what the comps — or comparable homes in your area — are going for and listen to buyer feedback. If people are consistently telling you the price is an issue, it’s time to pay attention.

Trust your real estate agent to inform you about a fair price for the current market, and if you’re truly dead-set on getting your ideal asking price, take an honest look at whether you need to make upgrades to your home or wait for a market uptick.

2. No one knows it’s for sale.

Simply sticking a “for sale” sign in the lawn won’t cut it. Today’s buyers do the majority of their home searching online, which means you need to get your home listed on major real estate sites (like Trulia) and on the MLS, or the multiple listing service, used by realtors and brokers. You’ll also want to make sure your online listing includes plenty of high-quality, well-staged photos.

3. It’s got glaring issues.

It could be a big issue (like a failing roof or wonky foundation), or it could be a small but obnoxious issue that buyers just can’t get past (like your beloved wall-to-wall pink carpeting). Either way, the fact that your home isn’t selling means buyers are consistently finding something wrong with it. Ask potential buyers for feedback after you conduct showings; their answers may help clue you in to the problem.

Some buyers are willing to accept a a lower price or a closing credit for a home with a sticking-point issue, but others are turned off from the start and figure it’s not worth the hassle of fixing it themselves or trying to negotiate a concession.

4. It doesn’t show well.

Make sure that when prospective buyers tour your home, there’s nothing stopping them from falling in love with it.

Open those blinds and curtains to let the natural light in and put lamps in areas that are especially dim. Remove any bulky furniture that makes the rooms hard to navigate. Take care of those small items you’ve been putting off, like fixing sticky drawer pulls or that leaky faucet. Small updates like these could be turning off buyers.

5. Buyers can’t picture themselves living there.

The more you enable buyers to picture their own life in your house, the more likely they’ll be to make an offer.

Clean and remove clutter and get rid of overly personal items like those family photos along the stairway and your kids’ artwork on the fridge. If your home is currently empty, near-empty, or your furnishings aren’t to most buyers’ tastes, you may want to consider hiring someone to professionally stage your rooms.

6. You’ve neglected the curb appeal.

More than one buyer has pulled up to a house whose listing they liked, taken one look at the exterior, and driven away. It doesn’t matter how gorgeous your home is on the inside; if buyers aren’t willing to step in the door, then you’ve lost them.

A few simple fixes can make your curb appeal irresistible. Weed and mulch the flowerbeds, trim the hedges, clear the walkways, and repaint any flaking siding. Consider adding some “homey” touches like a wreath on the door or a bench on the porch. You don’t need to spend a ton on landscaping; just making the outside look presentable and welcoming can make all the difference.

Tiny Home On Drina River In Serbia Sits On Rock Surrounded By Water

interesting house article from huffingtonpost.com

The Drina River in the Balkans is possibly one of the most beautiful bodies of water to ever exist. And what sits atop of a rock in the middle of this scenic place is a tiny home that has stood the test of time, adding to the area's intrigue.

For over 40 years, this small structure has survived the unpredictable Serbian weather and has become a hot spot for tourists lucky enough to take a dip. But how did the unusual home come to be?

Well, according to CNTV, the home was built in 1969, a year after a group of young boys were looking for a spot to sunbathe and discovered that the rock was an ideal place for a tiny shelter. Since they constructed it, the one bedroom dwelling has survived multiple floods and extreme winds, proving that tiny homes are sometimes unbelievably strong.

The home has gained international fame after photographer Irene Becker's stunning photo depicting it was featured last year as National Geographic's "Photo of the Day," heightening curiosity about this exotic house. It now has its own Facebook album and blog.

We have come across many American tiny homes, but we have to say, the story behind this particular one has us dreaming of picking up and traveling to Europe to see this amazing example of architecture.

Selling This Fall? Court Millennials and Empty-Nesters

some factors to consider from bobvila.com

Looking to make a quick sale before winter arrives? Target the types of buyers who drive the market in autumn.

If you’re planning on putting your house on the market this fall, be aware that folks at different stages of life enter the market at different times of the year. For example, the lively spring real estate season thrives on families wishing to relocate while their kids are on break from school. Home sales in autumn, however, are driven mainly by millennials and empty-nesters. As we near the end of the summer, many would-be home sellers are wondering whether either of those populations can be counted on to be active in the coming months.

Millennials. What’s keeping millennials from moving out of their parents’ basements? Only money. To scrape up a down payment, young and financially insecure house hunters are likely to seek loans either from family members or the federal government. But are they actually going to obtain those loans?

Watch the stock market for clues. If investment returns are strong, waffling parents might feel rich enough to subsidize their adult children’s dreams of homeownership. Less vulnerable to uncertainty are government home loans, namely those offered by the Federal Housing Administration. As we’ve reported in the past, the FHA makes loans that combine purchase and improvement expenses. Mention those programs in all of the materials you prepare to market your property. Hey, it’s a worth a shot: You might end up informing a potential buyer of something he doesn’t already know.

Here are a few tips to help you court millennials:

• If someone visits your open house with parents in tow, pay as much attention to the parents as you do to the apparent buyer himself.

• Supplement the listing with a document that highlights the amenities that millennials view as must-haves (for example, wireless Internet infrastructure).

• Allow plenty of time for the loan to be approved. The average millennial’s credit history lacks a landlord’s verification of his ability to meet payments.

Empty-Nesters. Having already raised children, empty-nesters understand the value of good school districts, but nowadays they are more interested in amenities that suit their child-free lifestyle. If you have a hunch your house may appeal to empty-nesters, here’s how to play up that attraction:

• Emphasize multipurpose space—for instance, stage one bedroom as a home office-cum-hobby room—because empty-nesters crave flexibility for the future.

• Provide a map to points of interest within walking distance. To the extent possible, aging baby boomers wish to integrate exercise into their daily habits.

• Showcase quality. Without teenagers around, empty-nesters can enjoy more delicate finishes and fine details, so give them something to brag about. They want to upgrade as they downsize.

Buying a Home in The Fall

from realtor.com, interesting article on buying in fall....

The real estate market is open 365 days a year – yes, even on holidays – but there are cyclical trends to the marketplace. Some of those ups and downs are based on mortgage interest rates and housing availability, but some are based on season.

Next to spring, fall is the busiest season for home buying and selling. Autumn offers certain benefits to home buyers, including year-end tax breaks, pleasant weather conditions for moving and a wide selection of homes for sale. Read on to learn the advantages of buying in the fall.

Year-End Tax Breaks

Come September and October, people start to think about what year-end tax breaks they might be eligible for. Fortunately for home buyers, owning a home can yield great dividends in tax returns. For example, both mortgage interest and property taxes are deductible from gross income. Furthermore, if you have prepaid some interest before the due date of your first payment, and if you close your loan before the year’s end, that interest can also be deducted.

Getting Ahead of Mother Nature
Buying a house before the deep freeze of winter sets in is very appealing to most home buyers. No one wants to worry about icy roads, snowstorms or blackout conditions on moving day, nor is it fun to move in sweltering summer heat.

School Year and Holidays

By wintertime, kids have settled into school, established friendships and become involved in extracurricular activities. Moving in summer would be least disruptive to your children’s schooling or social calendar, but autumn is next best. Also, by moving in fall, you’ll be settled snugly into your new home before Thanksgiving and the winter holidays.

More Home Choices

While home demand is not as keen in fall as it is in spring, it’s still high, so competition can be high, too. Fall buyers and sellers tend to be motivated to move, unlike the window-shoppers who sometimes come out in spring.

You may experience pressure to buy, due to the quick turnaround of houses on the market, but you’ll also benefit from the broad selection of homes available. In fact, between September and December, you may be able to visit several open houses in a single day, and listings will be updated frequently. Therefore, to make sure you don’t miss out on your dream house, it’s a good idea to regularly check listings and check in with your Realtor.

Fall Home-Buying Tips
Given the home-buying competition and the short, pre-holiday timetable in autumn, you may be tempted to place a bid that is out of your price range, for fear of losing the home. Before you make an offer, know what kind of house you need and what you can realistically afford, and stick to your budget. You may want to explore prequalifying for a loan so that you’ll be ready to act when you find the home you want. And as always, whatever season you buy in, buy at the best time for you and your family, and hold out for the right house - there are always more homes to see and to choose among.

5 Tips to Stage Your Home for the Fall Season

some interesting advice to consider with a fall home sale....from www.money.usnews.com

If you've had your home on the market throughout the spring and summer seasons and it still hasn't sold, you might be starting to sweat. The heat and pressure are on, and it's probably hard to believe that fall is already here. Once the cold sets in, the number of buyers out there starts sinking like a weight in water. Most people just don't want to shop for a home when it's 10 degrees out.

You still have some time, but you can't ignore the fact that the clock is ticking. Don't waste these days. You need to take advantage of this last buying hurrah before winter sets in, and a major part of your strategy should be to stage your home effectively, regardless of whether you're using a real estate agent or selling your house yourself by owner.

Follow these top five staging tips for autumn planning:

1. Focus on Fall Curb Appeal. When your house is on the market, your top priority should be your home's curb appeal. Unfortunately, however, keeping an attractive-looking yard gets tougher in the fall. Your summer flowers will have already come and gone, so make sure you dress up your front steps with pots of brightly colored mums, and a few pumpkins as soon as they're available.

You'll also want to make sure your yard and beds are kept clean of falling leaves. Keeping up with falling leaves can be a chore, especially when they start falling during peak season. Raking is no job for a perfectionist, and a few leaves here and there are okay. Overall, however, you need to be sure that potential buyers see your yard and home, not dim shapes covered up by three inches of leaves.

Lastly, realize that as your lawn plants, shrubs, and trees start to go dormant for the winter, paint chips and dirty siding will become even more noticeable. You don't want these little issues to become big problems, and you definitely don't want to do repairs in the colder months. It's a good idea to pressure wash your home before it gets too cold.

2. Don't Go Overboard. Now that we've covered priority No. 1, remember the importance of moderation. As important as staging is, the key to success is to keep yourself in check and know when to stop. You don't want to break your personal budget, and you don't want to over-decorate your home. Between the weather, fall sports, and holidays, autumn is full of tempting reasons to decorate too much.

It's easy to go overboard, and plenty of people will make this mistake. Don't be one of them. Put a simple wreath on the door, grab a few potted mums for inside, and leave it at that. Remember, you want your buyers to remember the house, not your great fall or Halloween decorations. You just want some accents that make potential buyers realize what they could do if they owned your home.

3. Focus on Comfort. As the days get chilly, we all want to be in a cozy home. Once you've drawn potential buyers in, make them realize how comfortable they'd be during fall--and year-round. Highlight the coziness of your home. Stack firewood in the fireplace so it's "ready to go," at least in your buyers' minds. Add some comfy touches like laying out your favorite blanket (e.g. drape lush afghans over the side of the couch). Put out a few decorative candles, but don't light them. Remember, some potential buyers might have allergies or dislike certain smells.

Set up a small table with hot coffee and fresh-baked cookies, cider donuts, or any other local treats that will warm up your home and stick in buyers' minds. Finally, make sure every room is very clean.

4. Brighten up Your House. Autumn days get shorter and shorter, and the early sunset can weigh down emotions and lead to some tired house shoppers coming to your home experiencing seasonal affective disorder symptoms. So brighten your home, and their day.

Make sure you have bright, warm light bulbs in all of your lamps and fixtures. If it's even a little dark outside or getting slightly dim in a room, turn on your lamps. If you have a room that gets strong afternoon sun or has a great angle at sunset, make sure the shades are wide open at the right time. No matter what time it is, your home should look bright, clean, and open.

5. Change Your Bedding. Don't let the warm and cozy theme stop on the main floor of your home. Your shoppers will be upstairs checking out the bedroom, so make sure it's just as cozy as every other room - if not more.

If your quilt is old and battered, change it for a new one. You can still sleep under your favorite quilt, but show off with a thick and luxurious one, even if it's just temporary. The bed is the focal point of the room, and the comforter sets the tone and establishes how the room will feel. It's crucial for you to make it warm, relaxing, and inviting.

Final Thoughts. I've listed my own home during the fall season, so I know firsthand how challenging it can be. It's a special time of year, and it's especially challenging for home sellers. You may have a distinct advantage, however, when you list in the fall. You'll probably be competing with fewer other homes on the market. And while it's tough to combat falling leaves and do repairs on chilly days, you have the benefit of wonderful fall foliage to make your home look picture perfect.

[See Real Estate Bargaining: An Expert Opinion.]

Fall is a season of change, and if your home is still on the market, it just means you need to switch up your plan. Change the feel of your home by making it feel warm and cozy for the fall season, and you'll be more likely to draw interest from potential buyers.

Have you had success selling your home in the fall season? What are some of the methods you used to prepare your home and dress it up for prospective buyers?

15 Things for Fall Home and Maintenance Checklist

good reminder article from Kiplinger.com

1. Tune up your heating system.For about $80 to $100, a technician will inspect your furnace or heat pump to be sure the system is clean and in good repair, and that it can achieve its manufacturer-rated efficiency. The inspection also measures carbon-monoxide leakage.

If you act soon, you’ll minimize the chance of being 200th in line for repairs on the coldest day of the year. Look for a heating and air-conditioning contractor that belongs to the Air Conditioning Contractors of America and employs technicians certified by the North American Technician Excellence (NATE) program. The contractor should follow the protocol for ACCA’s "national standard for residential maintenance" (or the QM, short for “quality maintenance").

2. Reverse your ceiling fans. If your ceiling fan has a reverse switch, use it to run the fan’s blades in a clockwise direction after you turn on your heat. Energy Star says the fan will produce an updraft and push down into the room heated air from the ceiling (remember, hot air rises). This is especially helpful in rooms with high ceilings -- and it might even allow you to turn down your thermostat by a degree or two for greater energy savings.

3. Prevent ice dams.If your home had lots of icicles last winter -- or worse, ice dams, which can cause meltwater to back up and flow into your house -- take steps to prevent potential damage this year. A home-energy auditor or weatherization contractor can identify and fix air leaks and inadequate insulation in your home’s attic that can lead to ice dams. If you have the work done before December 31, 2011, you can claim the federal energy-efficiency tax credit for 10% of the cost (excluding installation), up to $500. Your state or utility may offer a rebate, too.

4. Hit the roof.Or at least scan it closely with binoculars. Look for damaged, loose or missing shingles that may leak during winter’s storms or from melting snow. If need be, hire a handyman to repair a few shingles ($95 to $1275, according to www.costhelper.com) or a roofer for a larger section ($100 to $350 for a 100-square-foot area). Check and repair breaks in the flashing seals around vent stacks and chimneys, too.

If your roof is flat and surfaced with asphalt and pebbles, as many are in the Southwest, rake or blow off fall leaves and pine needles, which hold moisture, says Bill Richardson, past president of the American Society of Home Inspectors, in Albuquerque. (Don’t sweep aside the pebbles; that will expose the asphalt to damaging sunlight.)

5. Caulk around windows and doors. Richardson says that if the gaps between siding and window or door frames are bigger than the width of a nickel, you need to reapply exterior caulk. (Check the joints in window and door frames, too.) Silicone caulk is best for exterior use because it won’t shrink and it’s impervious to the elements. Try GE’s Silicone II Window and Door product, which is “rain ready” in three hours ($6 at Home Depot). Check window-glazing putty, too (which seals glass into the window frame). Add weatherstripping as needed around doors, making sure you cannot see any daylight from inside your home.

Read more at http://www.kiplinger.com/article/real-estate/T029-C000-S001-fall-and-winter-home-maintenance-checklist.html#zkhoW6UjTdB8mmjG.99

6. Clean the gutters. If your gutters are full of detritus, water can back up against the house and damage roofing, siding and wood trim -- plus cause leaks and ice dams. You’ll typically pay $70 to $225 to clean gutters on a single-story house, depending on its size. Also look for missing or damaged gutters and fascia boards and repair them.

7. Divert water. Add extensions to downspouts so that water runs at least 3 to 4 feet away from the foundation, says David Lupberger, home-improvement expert for ServiceMagic, which connects consumers with service providers. For example, HomeDepot.com sells Amerimax Flex-a-Spout extension (which extends 25 to 55 inches) for $9.

8. Turn off exterior faucets. Undrained water in pipes can freeze, which will cause pipes to burst as the ice expands. Start by disconnecting all garden hoses and draining the water that remains in faucets. If you don’t have frost-proof faucets (homes more than ten to 15 years old typically do not), turn off the shut-off valve inside your home.

9. Drain your lawn-irrigation system. But call in a professional to do the job. Your sprinkler service will charge $75 to $150, depending on the size of the system. Draining sprinkler-system pipes, as with spigots, will help avoid freezing and leaks.

10. Mulch leaves when you mow. Mow your leaves instead of raking them, say studies at the University of Michigan and Purdue. The trick is to cut the leaves, while dry, into dime-sized pieces that will fall among the grass blades, where they will decompose and nourish your lawn over the winter. Use your lawn mower without its bag, and optionally swap the cutting blade for a mulching blade (about $15 to $20). The process may take several passes. For more information, see "Turn Over a New Leaf/Mulching Leaves in Place."

11. Prepare to stow your mower. As the mower sits through the winter, fuel remaining in its engine will decompose, "varnishing" the carburetor and causing difficulty when you try to start the engine in the spring. John Deere offers these preventive steps: If you've added stabilizer to your fuel to keep it fresh longer, then fill the gas tank to the top with more stabilized fuel and run the engine briefly to allow it to circulate. If not, wait until the tank is nearly empty from use and run the engine (outdoors) to use up the remaining fuel. Check your mower's manual for other cold-weather storage steps.

12. Don't prune trees or shrubs until late-winter. You may be tempted to get out the pruning shears after the leaves fall, when you can first see the underlying structure of the plant. But horticulturalists advise waiting to prune until late winter for most plants, when they've been long dormant and just before spring growth begins. To get advice specific to your plants and region, consult master gardeners at local nurseries or horticulturalists with your state university's cooperation extension department. One exception: You may need to hire an arborist to remove deadfall or trim limbs close to your home or power lines that could cause problems in a winter storm.

13. Test your sump pump. Slowly pour several gallons of water into the sump pit to see whether the pump turns on. You should do this every few months, but especially after a long dry season or before a rainy one. For more complete instructions for testing and maintenance, check your owner’s manual. Most sump pumps last about ten years, according to Chubb Personal Insurance.

14. Call a chimney sweep. Before you burn the Yule log, make sure your fireplace (or any heating appliance burning gas, oil, wood or coal), chimney and vents are clean and in good repair. That will prevent chimney fires and prevent carbon monoxide from creeping into your home. Search for a sweep certified by the Chimney Safety Institute of America. You can expect to pay $50 to $90 for an inspection to see if you need a cleaning, and $100 to $300 for the cleaning, according to www.costowl.com.

15. Avoid the rush. Don’t wait for the first winter storm to restock cold-weather essentials, such as salt or ice melt. If you can’t abide a snowblower’s roar or the back-breaking workout of shoveling, check out the Sno Wovel, a wheeled shovel that does much of the heavy-lifting for you ($150; go to www.wovel.com to locate retailers or Amazon.com to buy it online).

Read more at http://www.kiplinger.com/article/real-estate/T029-C000-S001-fall-and-winter-home-maintenance-checklist.html#zkhoW6UjTdB8mmjG.99

How Many Homes Fit on a Football Field

interesting article from eyeonhousing.org

Given that single-family homes have been generally getting larger, it may be tempting to assume that the lots they’re sitting on are getting larger as well. However, according to the Census Bureau’s Characteristics of New Single-Family Houses Sold, the opposite is closer to the truth. The median lot size of a new single-family detached home sold was an even 10,000 square feet from 1992 through 1995, then drifted downward until it reached 8,833 square feet in 2004.

After 2004, median lot size bounced back up to over 9,000 square feet for a few years before resuming a downward trend. By 2012, the median lot size of a new single-family detached home sold had fallen to 8,687 square feet, and in 2013 is was still only 8,720–the smallest two numbers in the historical Census series.

An acre is 43,560 square feet, so the above median lot size for 2013 is almost exactly one-fifth of an acre. Not everyone has a good sense of how big an acre is. To help visualize it, consider that, between the goal lines, a football field covers just about 1.1 acre. This means that, if you placed a median-sized lot for a single-family detached home sold that filled the width of the field (160 feet) on the goal line, it would reach just past the 18 yard line. And if you laid 5 of them side by side they would extend nearly to the opposite 9 yard line–leaving space for almost exactly half another median-sized lot before reaching the other end zone.

By definition, the single-family detached homes sold discussed above exclude “custom” homes built on the home owner’s land, either with the owner hiring a builder or serving as the general contractor him or herself. They also exclude single-family attached homes–that is, homes built side-by-side in a townhouse arrangement.

Lot sizes for custom homes tend to be larger. The median lot size for custom single-family detached homes started was exactly one acre (suggesting some rounding in the data) every year from 1999 through 2012. In 2013, it dropped 10 percent to 39,204 square feet. Custom homes don’t involve the work of a professional land developer subdividing a property, and some people may not think of them as sitting on lots in the conventional sense. Currently, custom homes account for a little under a quarter of the single-family market.

On the other hand, townhouses–currently a little over 10 percent of the single-family market–tend to have smaller lots. In 2013, median lot size for single-family attached homes sold was 2,984 square feet. Median lot size for all single-family homes sold in 2013–attached and detached combined–was 8,596 square feet.

So, although it becomes a little harder to visualize, if you had a normal mix of detached and attached single-family homes built for sale with the median lot size, about 5.6 of them would fit on a standard American football field between the goal lines, compared to almost exactly 5 and a half for single-family detached only.

Modscape's Cliff House Hangs Perilously Over a Cliff's Edge in Australia

from inhabitat.com





Australian prefab architecture specialists Modscape Concept have designed an exciting five story home that clings to a cliff’s edge. Aptly called Cliff House, the design was created in response to a growing number of clients exploring design options for living on extreme coastal plots in Australia. The modular home was inspired by the shape of barnacles clinging to a hull of a ship, and it extends off the side of a cliff, rather than sitting upon it.

Read more: Modular Cliff House Hangs Perilously Over a Cliff's Edge in Australia | Inhabitat - Sustainable Design Innovation, Eco Architecture, Green Building

DMAR September Market Update: Market Remains Strong Despite Market Slowing Due to Seasonality

from DMAR Market Trends...interesting...

Denver Metro Association of REALTORS® (DMAR) released its “September Denver Metro Real Estate Market Update” today, highlighting key data and market trends for the month of August 2014. DMAR’s report indicates Denver’s market conditions remain strong despite slowing due to seasonality adjustments. Now is a good time for buyers, as evidenced by lower interest rates, down to 4 percent last month, along with trending data showing an increase in home affordability and continued rise in consumer confidence.

The slowing trend is apparent though, as last month, single-family residential listings experienced an 11.35 percent dip in homes sold compared to the month prior, and the condo market experiencing a 7.87 percent decline as well. Notably, the average sold price for single-family and condos is up 5.77 percent year-over-year, and median price has increased 7.71 percent.

“Buyers had much less urgency about finding a home in August as they were in previous months during
the frenzy,” states Anthony Rael, Chairman of the Market Trends Committee for Denver Metro Association of REALTORS®. “As things slowed down and sellers jumped into the market late, some
were left wondering where the sea of buyers and multiple offers had gone. Many who priced at the top of the market found themselves with fewer requests for showings, were sitting on the market longer than expected, and eventually had to entertain lower-priced offers.”

Inventory still remains an issue for Denver’s real estate market. The notable drop in the number of homes that went under contract in the month of August, indicates a decline in future sales, however, this is to be expected given typical seasonality adjustments. According to Rael, “Seller’s who wish to sell for topdollar will have to seriously consider making some updates such as carpet, granite and appliances, or have more realistic expectations on the price they are likely to receive without these updates.”

The hot price range for single-family homes continues to be $200k to $299k, and $100k to $199k for condos. In August, the average sale price was $330,245 (down 1.48 percent from July), while median sales price totaled $277,900 (down 1.80 percent from July). Year-to-date, sales of single-family homes is down 10.93 percent, but the condo market has experienced a 23.04 percent increase in sales.

“Despite the August trends showing a slowdown in the market, many brokers, including myself, remain confident the market will bounce back in September, and the selling season will remain strong heading into fall and throughout the holidays,” says Rael. “In addition, the drop in interest rates and boost in affordability, make this a great time for buyers who may have missed out during the frenzy to get back into the hunt for a great property, and perhaps even have a little negotiating power.”

Market Insights:
Market remains strong, despite market slowing due to seasonality.
Consumer confidence is up, which means purchases of large ticket items such as cars, vacations, and homes is increasing as well. Great for the local economy.
Traditionally, seasonality adjustment is largest in August, but for the last two years market activity, although slower, has continued through mid December.
Inventory is still an issue, but many REALTORS® sense there is more to choose from now, and buyers have 48 hours instead of 48 minutes to consider.
An increase in open houses reinforces the “frenzy” has subsided or at least is cooling. The market is still hot though.
Lack of showing activity has some seller’s worried.
Many properties still going under contract quickly, but we’re seeing a lot of deals fall through for various reasons.

Helping Your Child Buy A Home

interesting article from bankrate.com

Traditionally (and when they could afford to), parents have provided cash to their offspring for down payments on homes. But in these days of tightened credit guidelines, some parents take bigger steps to help their kids become homeowners at today's low interest rates.

Three factors determine whether it's financially smart for parents to help adult children buy homes: the parents' finances, the kids' finances and the real estate deal itself.

"The first rule of thumb is that parents should never get financially involved with their adult offspring unless they are adequately prepared to address their own needs and pending retirement, which may not be far down the road," says Guy Penn, principal and founder of G.M. Penn Wealth Management in O'Fallon, Mo.

Penn says while there's no one-size-fits-all answer to whether parents should help their offspring buy a home, it definitely is a bad idea to pull money from a retirement account to give assistance.

Jeffrey Ivory, a partner with Stonebridge Financial Partners in Bingham Farms, Mich., says, "If parents are giving their kids down payment money, they should be willing to lose that money and not get it back. If they are helping their kids by buying a home and renting it to them or by co-signing their loan, they need to have not only the liquidity for the down payment, but they also need to be certain they can pick up the mortgage payments if the kids cannot pay them."

Adult offspring finances

Parents should make sure they are helping their kids for the right reasons, Ivory says.

"If the kids can't get a loan on their own, the parents really need to know why not," says Ivory. "If the scenario is that your kids are going through a divorce or a job loss and you want to help them, tying them to a permanent location may not help. If they are dealing with the financial consequences of credit problems, helping them pay off their credit card debt may be more important than buying a home. But if you are helping a young couple with stable jobs who just haven't had time to save for a down payment, and you can easily afford to help, this could make sense."

Ivory says parents should ask their kids to pull their credit scores and show it to them, and ask to see their paychecks and credit card debt.

"If your kids are already struggling, then you are setting them up to struggle more if you get them into a house they can't afford," Ivory says.

Educating your kids

Ivory says parents should talk to their kids about the rules of thumb of homeownership, including keeping all total debt including housing costs to less than 38 percent of monthly income before taxes. Housing costs, including taxes, homeowners insurance, homeowners association dues, and principal and interest on the mortgage, should be less than 28 percent of gross monthly income.


"The No. 1 way a parent can help their children is to offer them the gift of knowledge," Penn says. "Parents rarely have serious money discussions with their children, and throwing money in their direction now may be doing more harm than good. Parents should be talking to their kids realistically about the hidden costs of homeownership like utility payments, maintenance and repairs."

The real estate deal

The simplest way parents can help their kids financially is with down-payment money.

"Lenders want to know if the money is a gift because if the parents are treating it as a loan, it will be considered a second loan on the home," says Dan Kruse, broker and president of Century 21 Affiliated in Madison, Wis.

Individuals can give $13,000 tax-free to another individual each year, Ivory says, so if two parents each give their offspring and their offspring's spouse the maximum, they can give a total of $52,000 tax-free.

Kruse says parents often buy a home as an investment and have their kids pay rent.

"The parents can then sell the home to the kids when they are ready, keep it as an investment property or sell it to someone else," Kruse says. "You can do this with two separate transactions, or you can make a rent-to-own arrangement with the parents giving the kids a rent credit toward the purchase."

Ivory says a lease-to-own arrangement requires consultation with a tax professional as well as a lender, and must include a written contract.

Even within the family, financial planners say it is crucial to have everything in writing to make sure there are no misunderstandings in the future about repayment plans or the consequences of a loan default.

Parents with enough cash can lend the entire mortgage to their offspring, but this too should be in writing and include a reasonable interest payment. "Everyone needs to pay attention to the law and to the tax consequences of any financial arrangement," says Ivory.

Most financial planners view co-signing a loan as the worst option because of potential damage to the parents' credit and cash flow if the kids cannot make the payments.

Selling My Home "As-Is".

interesting article from active rain blog...

Selling My Home "As-Is"

If you find yourself in the position of having to sell quickly, you need to let your agent know that up front so they communicate to you and prioritize what items need to be addressed. Also, the "As-Is" seller should be aware that FHA requires certain Minimum Property Standards that apply and therefore limits some of your market segment planning on an FHA loan.

Many sellers just want or need to sell their home and move quickly for a variety of reasons, still others don't have the financial ability to make a lot of necessary repairs and consider selling "As-Is". Selling As-Is may get your home sold, but the risk is inviting "low-ball" offers or no offers at all with many buyers wanting a "move-in ready home.

Success of selling your home "As-Is" depends on a few factors that are in my opinion tied to the market segment and economic conditions in a given area. In my experience it's always best for a seller to do as much as they possibly can to improve the condition and curb appeal of their home before listing it on the market for sale. Tasks that are not too expensive and provide a big bang for the buck such as; a fresh coat of paint, patching cracks in drywall and ceilings, repairing plumbing leaks and signs of leaks, broken fixtures and windows, perhaps removing or replacing old worn out carpet if the budget permits, but at least a good cleaning! The idea is to make your home as appealing as possible to a potential buyer and give them less to complain about, pick apart or use as a negotiating point! If there was a roof leak be sure to remove signs of a leak after making necessary repairs.

Also, pay attention to the outside of the home, a fresh coat of paint, replacing any rotted wood and landscaping will go a long way towards making a great first impression. Spend some time sprucing up the front entrance...paint that front door! When you think about it, that's where a buyer will spend a little time before the home is unlocked and they go inside.

What is the market segment interested in "As-Is" properties?

Investors

Investors or flippers want to purchase an "As-Is" home as cheaply as possible, make the needed repairs or cosmetic updates and sell the home quickly. Typically this buyer will make many very low offers in the hopes that one will work out.

DYI Buyers

Do it yourself buyers also want to get a great deal on a distressed property, but usually plan on living in the home while they make repairs and may make this their home.

First Time Home Buyers

First time home buyers either have never owned a home or have not owned one in the last three years. They may not have the cash to work with because of a previous distressed sale of their own, but might possess the skills of a DYI to take advantage of a lower priced "As-Is" sale.

Land or Location Buyer

Another type of buyer is one who sees the value in the land or location an "As-Is" property might provide. Rezoning, neighborhoods in transition or a run down property in a highly desirable area can get the interest of this type of investor who's plan most likely would be to demolish and rebuild...buying for location!

These types of buyers are out there and may be a source or buyer pool for your home, however, there is an expectation they have of getting a good deal and discounted price because of additional work and repairs they will have to make.