Buying New Home Construction from Builders

a great snippet from about.com...on why it's in your best interest to hire an agent that only works for you... New home buyers don't want a used house when only a new home will do. They don't want to inherit somebody else's worn carpeting, personal taste in kitchen appliances or look at some kid's initials scrawled into once-wet cement that they didn't put there. The home must be brand spankin' new, fresh and clean without so much as a finger print on the walls. If this describes you, and you have always fantasized about buying a brand new home of your dreams, here are a few tips that can help you to protect yourself -- to make the process a pleasant experience. Hire Your Own Agent •The builder's sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder's agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood. •Hire a Buyer's Agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent's fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, and it would be worth it because a good negotiating buyer's agent can save you thousands more than the commission. •Your own agent will represent you, be your fiduciary and is required to disclose the positives as well as the negatives about the transaction. Builder's agents don't discuss drawbacks. •If your contract contains a contingency to sell your existing home before buying, again, hire your own seller's agent to list your home. Be aware that buying before selling is not always in your best interest because hard bargaining goes out the window when you've emotionally moved out of your home.

In a sellers' market: 3 ways for buyers to win a bidding war

Great information in today's seller's market...from Sun-Times Media..applicable to the Denver Market as well... Barely 12 months ago, buyers could confidently peruse piles of listing sheets before making a lowball offer and getting a nice discount off the list price. Not anymore. Last month, there were about 44% fewer homes on the market in Chicago than in February of last year, according to Midwest Real Estate Data. The city had only a 3.8-month supply of housing units, compared to an 8.9-month supply a year ago. Surprise: it's a seller's market. And that means many homebuyers are likely to find themselves in a bidding war. I've seen it more than a few times over the last year. You hunt and you search and you think you've found a winner. You and your agent pour over comps and market stats. You figure out what the seller paid for the home and what they owe on it. Your agent grills the listing agent to find seller hot buttons. You construct the perfect negotiation strategy, and submit your offer, ready to get the deal of a lifetime. Then you get the call, and hear the crushing news that more buyers are hearing these days: "We have received multiple offers. Please submit your highest and best offer by tomorrow at 5 p.m." So now what? A good listing agent won't tell you much about the other offer. It could be $20,000 less than yours or $20,000 higher. There could be one other offer or four. You're going to have to put your best foot forward. Here are three tips to help you fight for your new home and win: #1 Remember: It's not all about money Sometimes it is about timing. Pick a closing date advantageous to the sellers. Can you close quickly, saving the sellers money? Or can you close later, giving them time to find a new home? Find out what matters to them. Have your agent select a brief (five days or less) attorney review and inspection period. This will minimize the amount of market time a seller could potentially lose if you were to back out of the contract as a result of something found during the inspection. It will also give the seller more time to confidently search for a new home. Important: This requires you to have your act together. Who's your inspector? Who's your attorney? Call both of them before you put the contract in so you still have time to do your due diligence. Finally, make a large earnest money deposit - say 5 to 10 percent of price - to show the sellers you're serious. They know a buyer with some skin in the game is less likely to jerk them around and then bail on a contract. #2 Make the seller like you An offer with a well-written cover letter stands out, and it never hurts to try to relate to a seller. Are you newlyweds buying your first condo? Are the sellers moving out because they just had their first child and need more space? Great. Play up the nostalgia. Have your agent tell the sellers a bit about yourself and why you like their property. When evaluating multiple offers as a listing agent, I find this is a nice touch. Agents often fire off contracts with no cover letter and little presentation. This gives the impression that their clients aren't as committed to buying the property, and I'm likely to convey that to a seller. Then, go back to #1 and make sure your agent emphasizes those points in the cover letter. Tell them what you do for a living and how thoroughly your lender has pre-qualified you (Tip: get thoroughly pre-qualified). Sellers should get the impression that you are a buyer with no potential financing issues who is committed to buying their property. #3 Pay what the property is worth to you This one should go without saying, but sometimes buyers get caught up in the emotions of the process. Overpaying for a property isn't winning, and neither is stubbornly sticking to a lowball offer. Have your agent put together a detailed comparative market analysis to determine the fair market value of the property. From there, as I always say: "add love, subtract fear." It's okay to pay a touch more if you really love the place, especially if you've been looking for awhile. But keep in mind, the property will need to appraise for this price if you're getting financing. And it's okay to bid a bit less if you feel you have other strong options. I took a buyer to see three condos that each had been on the market for three months. That was a Thursday. My buyer left for the weekend to go skiing. When he came home, all three had offers in on them, and two of them had multiple offers. That's the residential housing market in Chicago right now. My final word of advice: "buyer be ready." Get all your homework done before you make that offer. If you want to survive in this sellers' market, you have to be ready.

How Many Rooms are in the White House?

There are 132 Rooms in the White House.

America's Fastest Shrinking Cities

interesting article on population growth and decline trends in varying parts of the US....from 247wallst.com The U.S. population rose by just 0.72% in 2013, the lowest growth rate in more than 70 years. Not only has the country become less-attractive to immigrants than in years past, with net immigration down from nearly 1.2 million as of 2001 to 843,145 last year, but also the U.S.’s domestic birth rate has dropped to a multi-decade low. While the population of most of the country’s metro areas grew at a low pace in recent years, in a small number of metro areas the population actually shrank. Looking at the most recent years, the U.S. population rose by just 2.4% between April 2010 and July 2013, but in 30 metro areas the population shrank by at least 1%. The population in Pine Bluff, Arkansas, fell a nation-leading 4.4% in that time. Based on recently released U.S. Census Bureau estimates, 24/7 Wall St. examined the cities with shrinking populations. Most of the metro areas with the largest declines in populations have been shrinking for decades.The total population of Cambria County, Pennsylvania — which makes up the Johnstown metro area — has fallen 34% between 1940 and 2013. Allegany County, Maryland — the central county of the Cumberland, Maryland metro area — peaked in population during the 1950 Census. The county’s population has since fallen by 18%, according to the Census Bureau’s 2013 population estimates. In many of these areas, long-term drops in manufacturing jobs are tied to specific industries. The Youngstown, Ohio; Weirton, West Virginia; and Johnstown, Pennsylvania metro areas were all once home to major employers in the steel industry. Each of these areas lost many of the jobs these businesses once supported. Similarly, automotive factory closures have hurt the Saginaw, Michigan and Mansfield, Ohio metro areas. Kenneth M. Johnson, senior demographer at the Carsey Institute at the University of New Hampshire, told 24/7 Wall St. that industry declines and job losses can lead to population declines. “It’s entirely plausible that the loss of jobs in a specific industry sector could be be the driving force in that kind of decline,” he said. Of course, manufacturing jobs have declined nearly 30% in the U.S. between 2001 and 2013. However, in eight of the areas with shrinking populations, the number of jobs in the manufacturing sector fell by more than the nationwide decline, according to figures produced by Economic Modeling Specialists Intl. (EMSI). Flint, Michigan, lost the most jobs in the sector as manufacturing employment declined 57% from 2001 to 2013. In general, these areas suffered from weak job markets overall. In Pine Bluff, the metro area with the single greatest loss of residents, the unemployment rate at the end of last year was more than 10%, among the highest in the country. Similarly, Flint, Saginaw, and Carson City, Nevada, all had unemployment rates of at least 9% in December 2013, well above the national rate of 6.7% According to Johnson, young people leaving the area in order to look for work have driven the population decline for many industrial metro areas in the Midwest. “As a result, you would lose not only the young adults themselves but, over time, the children they would have produced.” The loss in younger residents has also lead to a higher median age in these areas. “You would have a higher death-to-birth ratio because there aren’t as many births, but also because an aging population has higher mortality risk,” said Johnson. In 2012, six of the metro areas with the largest declines had populations with a median age of at least 40 years, older than the national median age of 37.4. A typical Johnstown resident was 44 years old. While most of these areas had long-term, steady declines in population, the decline in Carson City and Farmington was more recent. Since 1940, San Juan County, New Mexico, the central county in Farmington, and Carson City, Nevada have grown 639% and 1,585%, respectively. “I think its important to make a distinction between these shorter-term population trends in the 2010 to 2013 period and these longer-term trends that have hurt these older, industrial areas in the Midwest,” noted Johnson. Based on recent U.S. Census Bureau estimates, 24/7 Wall St. examined changes in population for 381 metropolitan statistical areas from April 2010 through July 2013. We also considered figures from the Census Bureau’s 2012 American Community Survey. We reviewed population figures from each decennial Census since 1940, using each area’s largest county as a proxy for the metro area. Data on incomes and price levels, current as of 2012 and 2011, respectively, are from the Bureau of Economic Analysis (BEA). Figures on home price changes are from the Federal Housing Finance Agency’s (FHFA) House Price Index and are current as of the end of 2013. Seasonally adjusted unemployment rates for December of each year from 2010 to 2013 are from the Bureau of Labor Statistics. Estimates for gross metropolitan product are from IHS Global Insight. EMSI data on changes in total jobs, as well as manufacturing and construction jobs, between 2001 and 2013 were also considered. These are America’s shrinking cities. 10. Saginaw, Mich. > Net population change, 2010 to 2013: -1.81% (tied, 10th highest) > Population change from peak (1980): -13.8% > Unemployment: 9.0% (42nd highest) > GMP change, 2013: -1.2% (25th lowest) The Saginaw metro area’s population fell by 1.8% between 2010 and 2013, largely due to people leaving the area. A net total of 4,393 people moved out of the area during those years. The area’s auto manufacturing sector and supporting industries have shrank in recent decades. A number of General Motors factories in the county have closed down over the years with only one remaining today, Saginaw Metal Casting Operations. While manufacturing employment has recovered slightly in recent years, Saginaw’s unemployment rate of 9% at the end of last year was still well above the national rate of 6.7%. Incomes were also quite low in the area, where per capita personal income was slightly more than $33,000 in 2012, versus more than $45,000 nationwide. 9. Youngstown-Warren-Boardman, Ohio-Penn. > Net population change, 2010 to 2013: -1.81% (tied, 10th highest) > Population change from peak (1970): -22.9% > Unemployment: 8.1% (tied-75th highest) > GMP change, 2013: -0.4% (tied, 57th lowest) Mahoning County, Ohio, the largest in the Youngstown metro area, lost 23% of its population since its peak in 1970. The metro area’s population was decimated when a major source of jobs, the steel industry, began to get leaner and shut down factories in the 1970s and 1980s. Sections of the city became so sparsely populated over the past three decades that, in 2002, the administration revealed a plan to move residents from low-population areas to other neighborhoods within the city — although many residents were unwilling to move. Jobs in manufacturing have continued to diminish in recent years as well, falling by 37% between 2001 and 2013 — although manufacturing continued to account for an outsized portion of all jobs. Recently, the area’s economy has struggled, with GMP shrinking by 0.4% last year, even as the U.S. economy grew 1.9%. 8. Weirton-Steubenville, W. Va.-Ohio > Net population change, 2010 to 2013: -1.98% > Population change from peak (1960): -31.5% > Unemployment: 8.9% (45th highest) > GMP change, 2013: -2.6% (5th lowest) From 1960 to 2013, the population in Jefferson County, Ohio, the largest county in the Weirton metro area, declined by 31.5%. Like many of the fastest shrinking areas in the U.S., the Weirton metro area’s population once relied on the U.S. steel industry for jobs. In 2007, Weirton Steel Corp. plant was closed, ending the production of steel at a company that had once been a major part of the city’s identity. In 2012, 19% of the area’s population were senior citizens, and the median age was 43.8 years old, making the area one of the oldest in the U.S. From 2010 to 2013, the area lost nearly 2% of its population, largely due to natural factors, as deaths outnumbered births by more than 1,800. 7. Cumberland, Md.-W. Va. > Net population change, 2010 to 2013: -2.0% > Population change from peak (1950):-17.9% > Unemployment: 7.1% (141st lowest) > GMP change, 2013: +0.5% (141st lowest) Factories run by Pittsburgh Plate Glass (PPG), Allegany Munitions and Kelly Springfield Tire once employed many Cumberland area residents. While PPG is still a Fortune 500 company, it ceased manufacturing in Cumberland in 1981, and the Kelly Springfield Tire plant closed in 1987. Allegany Munitions, now called Alliant Technologies, still employed more than 1,400 people in the area as of 2012. Not surprisingly, a weak economy may contribute to the area’s population decline. The area’s GMP grew by only an estimated 0.5% in 2013, well below the 1.9% national GDP growth. Cumberland city officials have initiated a plan to construct multi-family housing as an attempt to reverse the decline. The plan includes upgrades to the city’s infrastructure, including schools and roads. 6. Carson City, Nev. > Net population change, 2010 to 2013: -2.16% > Population change from peak (2000): +3.1% > Unemployment: 9.5% (28th highest) > GMP change, 2013: -1.3% (22nd lowest) The Carson City metro area experienced considerable outward migration between 2010 and 2013. In that time, nearly 1,000 residents left the area, which had a population of slightly more than 54,000 last year. Natural population growth was also negative, as deaths outnumbered births in every year from 2010 onward. The significant population decline was likely due in part to the area’s poor economy. The area’s unemployment rate was among the worst in the country, at 9.5%, as was the decline in home prices over the five years prior to the end of 2013. Also, personal income barely grew between 2010 and 2012, rising just 2.2% a year, among the lowest growth rates in the nation.Still, people may return to the area if the economy improves. An October 2013 report by the Nevada State Demographer’s Office projects that Carson City’s population will begin growing in the future. 5. Mansfield, Ohio > Net population change, 2010 to 2013: -2.17% > Population change from peak (1980): -7.2% > Unemployment: 8.1% (tied-75th highest) > GMP change, 2013: -0.4% (tied-57th lowest) Mansfield was hit hard by the bankruptcy of General Motors in 2009 when GM closed its plant in the area. The plant was the area’s biggest employer at the time with more than 400 workers. Nearly 3,000 more people moved out of the area than people moved in between 2010 and 2013, one of the largest outward migrations in the country over that time frame. The area’s unemployment rate was 8.1% in December 2013, higher than the U.S. unemployment rate of 6.7%. Mansfield’s economy shrank by 0.4% in 2013, even as national output grew by 1.9%. The area’s poor economy and the city’s inability to generate sufficient funds from taxes, led the Mansfield city school district to declare a state of fiscal emergency in December. 4. Johnstown, Penn. > Net population change, 2010 to 2013: -2.21% > Population change from peak (1940): -34.2% > Unemployment: 8.1% (tied-75th highest) > GMP change, 2013: -1.1% (29th lowest) A falling population is hardly a new trend in the Johnstown area, which consists of Pennsylvania’s Cambria County. Since 1940, when the county’s population topped 213,000 people, the number of residents in Cambria County has dropped in every decade. Johnstown’s population fell from 143,677 in 2010 to less than 140,500 last year. A portion of this was attributable to migration, as net 1,600 residents moved out of the area during that time. As of 2012, Johnstown’s population was among the nation’s oldest, with a median age of 44.1, while more than 19% of the population were senior citizens, among the highest in the U.S. The area was once a major steel maker, and before that it was a major source of coal. Bethlehem Steel alone accounted for more than 11,000 jobs in the area during the 1970s, according to the Johnstown Area Heritage Association. The Fortune 500 company, which no longer exists, permanently closed its Johnstown plant in 1992. 3. Flint, Mich. > Net population change, 2010 to 2013: -2.45% > Population change from peak (1980): -7.8% > Unemployment: 9.8% (25th highest) > GMP change, 2013: +1.4% (135th highest) Flint — known for its manufacturing industry — is still feeling the effects of General Motor’s 2009 bankruptcy. While the company was rescued by the government, numerous, less profitable GM facilities were still liquidated, many of which were located in Flint. Nearly 10% of the workforce was unemployed as of December 2013, among the worst rates in the nation. The poor work climate may be contributing to the city’s exodus. Flint’s population was 415,376 last year, down 2.45% from April 2010, most of which can be explained by migration. Much of this decline occurred between mid 2011 and mid 2012, when the city’s population dropped by nearly 4,000, the largest nominal decline nationwide over that time. 2. Farmington, N.M. > Net population change, 2010 to 2013: -2.72% > Population change from peak (2010): -2.8% > Unemployment: 6.4% (163rd lowest) > GMP change, 2013: -1.4% (18th lowest) While most metro areas with declining populations have been shrinking for a while, Farmington’s population was actually growing until recently. Nearly 7,000 more people moved out of Farmington than moved in between 2010 and 2013, among the highest outward migrations in the nation over that period. While the area’s 6.4% unemployment rate at the end of 2013 was below the U.S. unemployment rate, the area’s per capita personal income was $33,092 in 2012, among the lowest in the country. The area’s economy has also contracted for two consecutive years, shrinking 2.2% in 2012 and 1.4% in 2013 — both among the largest drops in the nation. However, the area is experiencing a spike in oil investment. This could provide a boost to the Farmington economy and lure people to the area. 1. Pine Bluff, Ark. > Net population change, 2010 to 2013: -4.43% > Population change from peak (1980): -19.3% > Unemployment: 10.2% (21st highest) > GMP change, 2013: -1.7% (17th lowest) Pine Bluff’s population fell by more than 4.4% between 2010 and 2013, or by more than 1,000 people per year in each of the last three years.Most of this decline can be attributed to outward migration. Nearly 5,000 people left the area in that time, as Pine Bluff’s population fell from just over 100,000 to less than 96,000. County officials remain unsure about what has caused the drop in population, although high crime rates are believed to be one possibility. Another contributing factor may be the lack of good area jobs — Pine Bluff’s unemployment rate topped 10% at the end of last year, among the highest rates of any metro area. Despite substantial recent gains, per capita personal income in Pine Bluff was just $32,776 in 2012, among the lower incomes in the country and well below the per capita national income of $45,188. The area’s economy has also been struggling, shrinking 1.7% last year, among the largest declines in the country.

Great Denver Cleanup: Recycle Home & Yard Stuff

Great Denver Cleanup info from milehighonthecheap.com Denver embraces spring cleaning in a big way with the Great Denver Cleanup. On Saturday, April 26, Denver residents (bring proof of Denver residency) can clean their property or neighborhood and take the unwanted items to a number of drop-off locations between 9 a.m. and 2 p.m. Organizers say they will accept mattresses, carpet, rigid plastic (such as lawn furniture, plastic shelving, laundry baskets, buckets), scrap metal, electronics (no TVs), appliances (without freon), indoor & outdoor furniture, bikes, toys, yard waste, BBQ grills, books, linens, housewares, clothing, shoes, sports equipment and lawn mowers (without oil or gas). Reusable items will be collected (at all sites) by Goodwill Industries. On the no-no list: televisions, tree stumps or large branches, hazardous waste like paint or batteries, BBQ ashes, tires, auto parts and construction materials. You can bring the following to North High School only: reusable building materials, cabinetry, electrical & lighting, windows and doors. They will be collected by Habitat ReStore. For more information or a list of acceptable items, call 311 or check here. Drop-off locations include: •Cherry Creek Transfer Station – 7301 E. Jewell Ave. & S. Quebec St. •Fred Thomas Park – E. 26th Ave & Quebec St. •East High School – E. 16th Ave. & Josephine St. •North High School – W. 32nd Ave. & Clay St. •South High School – E. Louisiana & S. Gilpin St. •Evie Dennis Campus – 4800 Telluride St. •Focus Points Denver – 2501 E. 48th Ave. at Columbine St. •Colorado Driver’s License Office – 1865 W. Mississippi •Greenlee Elementary School – 12th Ave. & Kalamath St. •Lincoln High School – S. Federal Blvd. & Iliff Ave.

New Homes are Less Expensive to Maintain

one thing to consider from eyehousing.org April is new homes month. And one of the virtues of a newly constructed home is the savings that come from reduced energy and maintenance expenses. In a previous analysis, we used data from the 2009 American Housing Survey (AHS) to offer proof. The AHS classifies new construction as homes no more than four years old. For routine maintenance expenses, 26% of all homeowners spent $100 or more a month on various upkeep costs. However, only 11% of owners of newly constructed homes spent this amount. In fact, 73% of new homeowners spent less than $25 a month on routine maintenance costs. Similar findings are available for energy expenses. According to the 2011 AHS, on a median per square foot basis, homeowners spent 81 cents per square foot per year on electricity. Owners of new homes spent less: 68 cents per square foot per year. For homes with piped gas, homeowners spent on average 50 cents per square foot per year. Owners of new homes spent just 34 cents per square foot per year. The 2011 data show similar results for various other utilities. For water bills, homeowners averaged 28 cents per square foot per year, while owners of new homes averaged 22 cents. For trash bills, the median for all homeowners was 15 cents per square foot per year, while for new construction the median was 13 cents per square foot per year. These data highlight that a new home offers savings over the life of ownership due to reduced operating costs. And in fact, these reduced costs result in lower insurance bills as well. The median cost for all homeowners of property insurance is 39 cents per square foot, while it is only 31 cents per square foot for owners of new homes. These reduced expenditures represent one of the many reasons that the current system of appraisals needs updating to reflect the flow of benefits that come from features in a new home.

Vacation Home Sales Surge in 2013; Investment Property Declines

interesting article from realtor.com Vacation home sales rose strongly in 2013, while investment purchases fell below the elevated levels seen in the previous two years, according to the National Association of REALTORS®. NAR’s 2014 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2013, shows vacation-home sales jumped 29.7 percent to an estimated 717,000 last year from 553,000 in 2012. Investment-home sales fell 8.5 percent to an estimated 1.1 million in 2013 from 1.21 million in 2012. Owner-occupied purchases rose 13.1 percent to 3.7 million last year from 3.27 million in 2012. The sales estimates are based on responses from households and exclude institutional investment activity. NAR Chief Economist Lawrence Yun expected an improvement in the vacation home market. “Growth in the equity markets has greatly benefited high-net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” he said. “However, vacation-home sales are still about one-third below the peak activity seen in 2006.” Vacation-home sales accounted for 13 percent of all transactions last year, their highest market share since 2006, while the portion of investment sales fell to 20 percent in 2013 from 24 percent in 2012. Yun said the pullback in investment activity is understandable. “Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year,” he said. “In 2011 and 2012, investment property was a no-brainer because home prices had sharply overcorrected during the downturn in many areas, creating great bargains that could be quickly turned into profitable rentals. With a return to more normal market conditions, investors now have to evaluate their purchases more carefully and do their homework,” Yun added. The median investment-home price was $130,000 in 2013, up 13 percent from $115,000 in 2012, while the median vacation-home price was $168,700, up 12.5 percent from $150,000 in 2012. All-cash purchases remained fairly common in the investment- and vacation-home market: 46 percent of investment buyers paid cash in 2013, as did 38 percent of vacation-home buyers. Of buyers who financed their purchase with a mortgage, large downpayments continued to be the norm in 2013. The median down payment for investment buyers was 26 percent, while vacation-home buyers typically put 30 percent down. Forty-seven percent of investment homes purchased in 2013 were distressed homes, as were 42 percent of vacation homes. Lifestyle factors remain the primary motivation for vacation-home buyers, while rental income is the main factor in investment purchases. The typical vacation-home buyer was 43 years old, had a median household income of $85,600, and purchased a property that was a median distance of 180 miles from his or her primary residence; 46 percent of vacation homes were within 100 miles and 34 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 6 years, down from 10 years in 2012. Five percent of vacation-home buyers had already resold their property, while another 9 percent plan to sell within a year. “This reflects the 28 percent of recreational property buyers who said they purchased to diversify investments or saw a good investment opportunity,” Yun said. Buyers listed many reasons for purchasing a vacation home: 87 percent want to use the property for vacations or as a family retreat, 31 percent plan to use it as a primary residence in the future, 28 percent wanted to diversify their investments or saw a good investment opportunity, 23 percent plan to rent to others, and 22 percent intend it for use by a family member, friend, or relative. Forty-one percent of vacation homes purchased last year were in the South, 28 percent in the West, 18 percent in the Northeast and 14 percent in the Midwest. Investment-home buyers in 2013 had a median age of 42, earned $111,400, and bought a home that was relatively close to their primary residence – a median distance of 20 miles. Fifty percent of investment buyers said they purchased for rental income, 34 percent wanted to diversify their investments or saw a good investment opportunity, and 22 percent bought for a family member, friend, or relative to use – often to house a son or daughter while attending college. Seven percent of homes purchased by investment buyers last year have already been resold, and another 10 percent are planned to be sold within a year. Overall, investment buyers plan to hold the property for a median of 5 years, down from 8 years in 2012. Thirty-eight percent of investment properties purchased last year were in the South, 25 percent in the West, 18 percent in the Northeast, and 19 percent in the Midwest. More than eight out of 10 second-home buyers, both for vacation and investment homes, said it was a good time to buy. Approximately 43.4 million people in the U.S. are ages 50-59 – a group that dominated second-home sales in the middle part of the past decade and established records. An additional 42.7 million people are 40-49 years old, which is the historic prime age range for purchasing second homes, while another 40.4 million are 30-39 years of age. NAR’s analysis of U.S. Census Bureau data shows there are 8.0 million vacation homes and 43.7 million investment units in the United States, compared with 74.7 million owner-occupied homes. The 2014 Investment and Vacation Home Buyers Survey, conducted in March 2014, includes answers about 2,203 homes purchased during 2013 from a representative panel of 2,008 U.S. households. The survey controlled for age and income, based on information from the larger 2013 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents. The 2014 Investment and Vacation Home Buyers Survey can be ordered by calling 800-874-6500 or online by visiting www.realtor.org/prodser.nsf/Research. The report is free to NAR members and costs $149.95 for nonmembers.

Who Pays America's Highest and Lowest Property Taxes?

interesting data as always from nbc.com The second biggest cost of home ownership — following the mortgage — is usually property taxes. In 2012, U.S. homeowners paid an average of about $2,800 in property taxes, according to a recent Zillow study. And if you live in New York, New Jersey or Colorado your taxes were in some cases five times more than the national average. The numbers are based on an average of real estate taxes paid on single family housing in 2012. The residents of Westchester County in New York pay more in property taxes than the typical resident of any other major American county. The average property tax bill for a single family home in Westchester County comes to $14,829 a year. Want to know how your county stacks up against the rest of the country? Check out the rankings below. Adjusting for the average cost of single-family homes in each county, homeowners in Allegany County, N.Y., win the award for the highest property tax burden. The average tax obligation of $2,549 in Allegany County amounts to 3.8 percent of the average single family home value; in Westchester County, the average tax obligation is slightly lower, at 2.5 percent of the county’s average home value. Nationally, the typical homeowner is spending approximately 1.4 percent of their home’s value on annual property taxes. See the full rankings below. Highest Property Taxes as a Percent of Home Value 1.Allegany County, N.Y. (3.76%) 2.Milwaukee County, Wis. (3.68%) 3.Kendall County, Ill. (3.57%) 4.Sullivan County, N.Y. (3.56%) 5.Orleans County, N.Y. (3.49%) Lowest Property Taxes as a Percent of Home Value 1.Caroline County, Va. (0.17%) 2.Catahoula County, La., and Randolph, Ark. (0.2%) 3.Iberville County, La., and Cumberland County, Tenn. (0.21%) 4.Butler County, Pa., and Maui County, Hawaii (0.22%) 5.Elmore County, Ala., and De Soto County, La. (0.23%)

Pitfalls of pocket listings for buyers and sellers outweigh potential upsides

great article from inman news.. The idea of selling a home without ever listing it can be appealing to many. Similarly, ringing the doorbell on the “perfect home” and finding an owner willing to sell can put a broad smile on a buyer’s face. The risks however, routinely make buying and selling “pocket listings” dangerous to a person’s financial well-being — particularly for sellers. The term pocket listing typically refers to an agreement between a seller and real estate broker that allows the broker to market the property outside of the multiple listing service. The property is advertised through the broker’s “network” and a buyer is targeted by what amounts to “word of mouth.” There are a number of caution points for any seller contemplating a pocket listing: •The home might sell for less than market value. How is the sale price being established? Is the seller depending on the agent to stipulate price? Don’t rely solely on a prelisting appraisal; there are many buyer and seller variables that cannot be accounted for by an appraiser. If the home isn’t exposed to the maximum number of potential buyers (usually accomplished via the MLS) how can the seller be confident that the best price was received? When a shortage of quality listings exist, multiple offers and bidding wars might be seen – which doesn’t happen without adequate exposure. •What are the motivations for a seller to consider a pocket listing? If the idea is to save on agent commissions, the expectation is often different than the reality. A 4 percent commission might be 1 or 2 percent less than market and appear like a bargain, but a seller should look at the big picture. Agents soliciting pocket listings typically already have a buyer lined up so the conventional agent split doesn’t apply. So while the total fee might be less than market, it’s more for the agent since they keep it all. It’s also not uncommon for pocket listings to have clauses that address fees due in the event a buyer’s agent is involved. It’s not uncommon for the end result to be a commission that approaches the norm and a selling price below market. •There is simply no suitable substitute for the exposure obtained by the MLS. A pocket listing – like homes offered for sale by owner – simply cannot compete with a traditionally listed home. The major public real estate sites pull information from the MLS. Facebook, Twitter, and Pinterest might get someone interested in a home, but home buyers look where the homes are. It’s worth noting that an estimated 45 percent of home buyers in 2013 found the home they bought on the Internet, not through their agent. •Sellers make have to make unnecessary repairs or concessions. Potential issues that plague a “normal” sale will be present with pocket listings as well. However, a competitive environment provides options to a seller. Repair issues, appraisal problems or other challenges can better be negotiated or ignored when there are multiple interested buyers. Homebuyers that go the pocket listing route also have concerns to address. Most, if not all negotiating power vanishes if the buyer shows great interest in a home. Buyers that ask agents to stuff mailboxes in a particular community enter the game at a significant disadvantage. Buyers should consider: Who represents the buyer’s interests? If the buyer is working under a buyer brokerage agreement will the commission split fully compensate their agent? If not, who is responsible for the short fall? Unrepresented buyers are walking into trouble; there are not many things dumber than buying a home without being represented by an experienced agent. Even with a pocket listing, the agent represents the seller. Is the price accurate? What research has been done and by whom to establish a reasonable market value for the home? Who is writing the offer? Is the seller’s agent setting the tempo for the deal and establishing the parameters? What stipulations, time frames and escape clauses are going into the offer? Can the buyer remove emotion from the transaction? When buyers directly approach owners to inquire about home or instruct their agents to canvas an area looking for owners interested in selling they hamper their ability to negotiate. This type of action places buyers in a position of perceived weakness almost immediately – the seller has something the buyer wants and there’s no doubt about that since the buyer initiated contact. The real estate industry is wrestling with many questions around pocket listings; the National Association of Realtors doesn’t have a formal policy at this time. Questions and issues on the table include the responsibility of the listing agent to ensure that the best interests of the seller are maintained and proper disclosure to all parties about dual agency. Many in the industry prefer to have as many listings in the MLS as possible to aid in the appraisal process; sales outside of the MLS are often neglected by appraisers. - There are homeowners who will demand the use of pocket or “non traditional” listing routes. Typically these occur with high profile sellers or when a seller simply doesn’t want the attention being listed in an MLS can bring. These owners can work with their agent to highly restrict access to the home; preserving privacy and still benefiting from the exposure an MLS can offer. Ultimately the seller makes the call. Pocket listings can present pitfalls to both sellers and buyers. Many consumer groups and advisors highly recommend avoiding them for the reasons noted. Basic business reinforces that maximum exposure to a targeted audience typically results in the best price for a product. Similarly, a buyer approaching the owner of an unlisted home immediately places themselves at a negotiating disadvantage. While pocket listings remain a popular topic of conversation, the disadvantages and potential pitfalls — especially for sellers — far outweigh the potential upsides.

Weather, Inventory Push Home Sales Lower, Prices Higher

From Re/Max Housing report...interesting trends... February home sales slowed in February, while prices increased by double digits over last year. The RE/MAX National Housing Report, a survey of MLS data in 52 metropolitan areas, found the February results to be nearly identical to January. Just like January, the median home price rose 11.6% compared to the same month in 2013, and is now at $180,450. Home sales dropped by 8.8%, compared to January’s year-to-year loss of 7.1%. Unusually harsh winter storms impacted appraisals, inspections and closings. Even though inventory losses have been shrinking, low inventories in many metro areas had a negative impact on sales. Even at the rate of February sales, the corresponding Months Supply of inventory of 5.1 isn’t significantly below the 6.0 level of a market balanced between buyers and sellers. When measured on a year-to-year basis, February became the 11th consecutive month with fewer inventory losses than the previous month.

The Kitchen Trends That Will Scratch That Renovation Itch

interesting article from realtytimes.com Spring brings that itch. You know the one. It's waking you up in the middle of the night with thoughts of French door refrigerators and self-closing drawers. It occupies your waking thoughts too, as you watch episode after episode of Love It or List It and Kitchen Crashers and spend just a little too much time haunting the local Home Depot, gazing longingly at cabinet glazes. You're obsessed with redoing your kitchen. We can relate. The itch to pretty up our homes in spring is no coincidence. Just take a look at the fact that Home Depot is hiring 80,000 new associates and Lowes 45,000 new associates for the spring busy season. That itch... it's contagious. But we can help. If you are looking to embark on a kitchen remodel, big or small, check out the newest trends. Cabinets After a foray into dark mahogany and even black cabinetry, light cabinets have been trending for several years. But lest you think the all-white kitchen is the only way to go, there are several hot options for keeping it light. "Neutral palates continue to dominate," said CBS News. "Most are still being painted white. Sandy tones and gray tones are also popular." Gray, undoubtedly the hottest color in home design right now, is showing up in kitchen cabinetry, as is blue, another of today's trending colors. There are also a number of structural trends in cabinetry, from open shelving that can bring a more industrial look and feel to a kitchen or can open up a small space, to built-in cabinetry that resembles furniture, according to Style At Home. Flooring Perhaps nothing will ever replace the popularity of wood or tile for floors, but tile that replicates the appearance of wood is coming close. Wood-look tile looks like the real thing, comes in an increasingly vast array of colors, styles, and sizes, is ideal for areas where water is present, and is often more affordable than wood. It's the overwhelming trend right now for floors throughout the home, and is also being seen in wall and backsplash applications. Appliances When it comes to appliances, there is no comparison. Stainless steel rules. A recent home trends survey showed that 65 percent of homeowners who are renovating their kitchens add stainless steel appliances. Presumably, the other 35 percent already have stainless steel appliances and don't need to add them. That's how pervasive this continued trend is. Energy-efficient appliances are also popular. "Homeowners are still opting for new appliances where the energy or financial savings is readily apparent, said CBS News. For example, homeowners are choosing high-efficiency dishwashers, and "touchless faucets have skyrocketed in popularity. Not only are they easier when you've got your hands covered in kitchen mess, but they significantly cut down on water use - a savings homeowners will notice in their water bills." Countertops The demise of granite has been whispered about for the past year, and now CBS News has all but proclaimed it dead. "Factory-engineered quartz is the new granite," they said. "While granite has held strong as the most popular countertop material for more than a decade now, quartz is starting to overtake it. Quartz has the same look and feel as granite, but it's more practical. Quartz is more durable, so it better resists cracking and chipping, and it is non-porous so it's easier to clean and resists staining. Freshome likes the timeless appeal of dark counters contrasted with light cabinetry. "Again, we're going natural black countertops here using black granite or quartz," they said. "Whether left glossy, or has a dull matte finish, in contrast with a cool white interior, oozes a timeless and clean cry of, 'I'm not new, but I'm here to stay, and I look GOOD!'" Backsplash It seems like every home with a renovated kitchen in the past five years has a backsplash fashioned from subway tile. And while this classic look that found its way home again in this century may never totally go out of style, backsplashes may be beginning to move into the same distinct configurations and graphic patterns that have been dominating textiles. "Kitchens are yearning for a sip of excitement and edge which is why interesting and colorful backsplashes will be popular in 2014," said Freshome. "Grand Designs magazine has placed this as the number 1 Kitchen trend for 2014 and we at Freshome believe it'll be a winner too. Look for tiles with interesting patterns, in colors (blue), colorful splashes of the rainbow or exotic designs. Style at Home predicts a move away from tile altogether, and instead toward large-scale design. This year, it's all about the beauty of nature's materials taking the forefront in the kitchen," they said. "With more open space surrounding range hoods and sinks, there's greater opportunity for large-scale backsplashes. To really showcase the backsplash and make it a focal point in your kitchen, opt for slabs of marble and limestone – their natural veining essentially creates a work of art."