good housekeeping from homegates.sfgate.com
One advantage for a homeowner with a mortgage is that mortgage payments are made for the month prior. In other words, your Jan. 1 mortgage payment actually covers December, meaning there's a potential tax advantage. Typically, homeowners receive their mortgage payment statements several weeks before those payments are due. By making your Jan. 1 mortgage payment early -- which is for the previous December -- you can deduct its mortgage interest portion.
Deducting Mortgage Interest
You must itemize your tax return to deduct any mortgage interest. Deducting mortgage interest from an extra payment is as simple as paying your December mortgage bill -- it's for the previous November -- first. Once you've paid your December mortgage bill, pay your January bill prior to the first of that month. Making an extra mortgage payment prior to Jan. 1 is a relatively simple way to obtain 13 months worth of mortgage interest deductions.
Early Payment Rationale
By making your January mortgage payment in December, your lender is able to carry that payment on its prior year books. With exceptions, mortgage interest payments made in a current tax year -- even if made the day before the new year -- are usually deductible. The Internal Revenue Service looks at mortgage interest deductions carefully, but a single extra end-of-year payment normally is allowed. Deducting an extra mortgage payment's interest is made easier with an IRS Form 1098, too.
IRS Form 1098
IRS Form 1098 shows interest on debt you're paying to a lender. If you've paid more than $600 in interest on a debt you legally owe, you'll receive Form 1098 from that lender. Although you still can deduct your extra mortgage payment's interest portion without a 1098 in hand, a 1098 makes things easier. When you itemize deductions, such as mortgage interest, you do so using Form 1040, Schedule A.
Reducing Interest Deductions
Deducting extra mortgage interest in one tax year might reduce your deduction amount for the next year. For example, by making your January mortgage payment in December, you'd remove January's mortgage interest deduction for the next year. Making an early mortgage payment in one tax year will give you 13 months worth of interest deductions. However, the extra month's mortgage interest deduction you take one year could reduce your mortgage interest deductions by one month the following year.
Sunday, December 11, 2016
Colorado's Most Expensive Home
from Colorado.OurCommunityNow.com
Bill Koch’s $100 Million Aspen mansion has been given the title of Colorado’s most expensive home. Come take a peek at how the other half lives.
You know your house is more than just a home when it’s given the title “compound.” Bill Koch recently listed his mountain compound, Elk Mountain Lodge Properties, near Aspen, for $100 million. Making the estate Colorado’s most expensive home.
What exactly makes this Aspen compound worth $100 million? With the laundry list of amenities and overall amazingness, it’s not hard to see. According to Zillow, the property stretches 82.6 acres, and includes a log-and-stone main lodge, as well as many single family homes and historic cabins. The resounding 43,229 square feet home(s) include amazing features:
•28 bedrooms
•25 bathrooms
•Five half-baths
•An entertainment hall
•A fitness room
•An indoor basketball court
•Multiple spas
•A four-car heated garage
•A carriage house
•A walk-in, temperature and humidity controlled wine room
•An mind blowing mountain view
Bill Koch himself is an avid art, wine, and maritime memorabilia collector. While the price of this huge ski retreat does include all of the furnishings, you’d be on your own to add in the artwork, because his collectables are not included.
Check out Colorado’s most expensive home for yourself and cry over your ramen and Comcast bills.
Bill Koch’s $100 Million Aspen mansion has been given the title of Colorado’s most expensive home. Come take a peek at how the other half lives.
You know your house is more than just a home when it’s given the title “compound.” Bill Koch recently listed his mountain compound, Elk Mountain Lodge Properties, near Aspen, for $100 million. Making the estate Colorado’s most expensive home.
What exactly makes this Aspen compound worth $100 million? With the laundry list of amenities and overall amazingness, it’s not hard to see. According to Zillow, the property stretches 82.6 acres, and includes a log-and-stone main lodge, as well as many single family homes and historic cabins. The resounding 43,229 square feet home(s) include amazing features:
•28 bedrooms
•25 bathrooms
•Five half-baths
•An entertainment hall
•A fitness room
•An indoor basketball court
•Multiple spas
•A four-car heated garage
•A carriage house
•A walk-in, temperature and humidity controlled wine room
•An mind blowing mountain view
Bill Koch himself is an avid art, wine, and maritime memorabilia collector. While the price of this huge ski retreat does include all of the furnishings, you’d be on your own to add in the artwork, because his collectables are not included.
Check out Colorado’s most expensive home for yourself and cry over your ramen and Comcast bills.
18 Tips For Living In Your Home While It’s For Sale
good advice from lightersideofrealestate.com
It’s one of the largest and most expensive assets most of us will ever own. It’s where we lay our head down at night, the place we make memories and call home. Selling it can be one of the most overwhelming and stressful experiences you may ever go through. So here are 18 tips for living in your home while it’s for sale to help you through the process:
1.Yes, make the beds every day!
2.If you smoke, don’t do it in the house! And if you’ve smoked in the house it would pay to have a restoration company come try to treat it or consider having it completely painted to rid the smell.
3.Dishes up. :)
4.Keep closets and storage areas organized, the larger they appear the better!
5.Keep it smelling nice. If you cook something strange, air it out!
6.Keep the temperature comfortable and season appropriate.
7.Fresh flowers inside and out are always a nice touch.
8.Keep your refrigerator clean and organized in case they look.
9.Keep your trash cans emptied.
10.Keep the floors vacuumed.
11.Keep the yard tidy.
12.Leave whenever possible and take pets with you; it makes the buyers feel more at ease. You want them to take the time to appreciate your home, right?
13.Don’t talk to the other agent or buyer directly more than you have to. You hired your agent for a reason, so let them do their job.
14.Be prepared for lights to be left on, doors left unlocked, and heaven knows what else I’ve had happen over the years. It’s not often but it’s also not the exception to the rule unfortunately these things happen sometimes.
15.Wait patiently for feedback from your agent. Sometimes it takes a few days to hear back from the other agent and the buyer.
16.Be as patient as you can throughout the process and try not to blame your Realtor if it doesn’t sell right away. If you chose the right agent, they have no reason in the world not to do everything they can to get your home sold as soon as possible and for that matter, for as much money as possible. They don’t get paid unless and until you get paid.
17.Remove any really valuable items. Consider taking them to a safety deposit box or storage unit just to be safe.
18.Breathe. When it’s meant to sell, that right buyer will come along. :)
It’s one of the largest and most expensive assets most of us will ever own. It’s where we lay our head down at night, the place we make memories and call home. Selling it can be one of the most overwhelming and stressful experiences you may ever go through. So here are 18 tips for living in your home while it’s for sale to help you through the process:
1.Yes, make the beds every day!
2.If you smoke, don’t do it in the house! And if you’ve smoked in the house it would pay to have a restoration company come try to treat it or consider having it completely painted to rid the smell.
3.Dishes up. :)
4.Keep closets and storage areas organized, the larger they appear the better!
5.Keep it smelling nice. If you cook something strange, air it out!
6.Keep the temperature comfortable and season appropriate.
7.Fresh flowers inside and out are always a nice touch.
8.Keep your refrigerator clean and organized in case they look.
9.Keep your trash cans emptied.
10.Keep the floors vacuumed.
11.Keep the yard tidy.
12.Leave whenever possible and take pets with you; it makes the buyers feel more at ease. You want them to take the time to appreciate your home, right?
13.Don’t talk to the other agent or buyer directly more than you have to. You hired your agent for a reason, so let them do their job.
14.Be prepared for lights to be left on, doors left unlocked, and heaven knows what else I’ve had happen over the years. It’s not often but it’s also not the exception to the rule unfortunately these things happen sometimes.
15.Wait patiently for feedback from your agent. Sometimes it takes a few days to hear back from the other agent and the buyer.
16.Be as patient as you can throughout the process and try not to blame your Realtor if it doesn’t sell right away. If you chose the right agent, they have no reason in the world not to do everything they can to get your home sold as soon as possible and for that matter, for as much money as possible. They don’t get paid unless and until you get paid.
17.Remove any really valuable items. Consider taking them to a safety deposit box or storage unit just to be safe.
18.Breathe. When it’s meant to sell, that right buyer will come along. :)
Denver is nation's No. 2 market for rising housing prices
interesting article from bizjournals.com
Home prices are rising with impressive vigor across much of the South — especially Texas — as well as in pockets of the West and the industrial Northeast.
Other parts of the country are having a tougher time. Home values remain depressed today in several California, Florida and Nevada cities that were hit especially hard by the Great Recession of 2007-2009, according to an American City Business Journals (ACBJ) analysis of new federal data.
The current national pacesetter is Texas’ capital city, Austin, where the value of a typical home has soared by 64.9 percent since 2006.
Second place belongs to Denver, whose real-estate values have increased by an average of 45.5 percent in 10 years. Rounding out the top five is a trio of Texas metropolitan regions: Houston (up 45.2 percent), Dallas (43.6 percent) and San Antonio (35.9 percent). Scroll to the bottom of this page for a database with the latest numbers for 124 major markets.
At the opposite end of the national scale are seven metros where home prices are at least 25 percent lower than they were in 2006. The sharpest decline has occurred in Las Vegas, which is down 31.8 percent for the decade.
ACBJ, the parent company of Business First, compared local house prices in the third quarters of 2006 and 2016, using data compiled by the Federal Housing Finance Agency (FHFA). The 10-year span encompasses the final run-up of home values prior to the Great Recession, followed by the downturn itself and the subsequent economic recovery.
FHFA converts each market’s housing prices to a quarterly all-transactions index, which is pegged to a 1995 value of 100 points. Any rise in the index corresponds to an overall increase in local prices. Any drop indicates that values are declining.
ACBJ calculated the 10-year changes for all 124 metropolitan areas and divisions whose current populations are larger than 500,000. Austin’s index, for example, shot up from 178.24 points in the third quarter of 2006 to 293.88 points in the corresponding period this year, yielding a gain of 64.9 percent in the value of a typical home.
Home prices are rising with impressive vigor across much of the South — especially Texas — as well as in pockets of the West and the industrial Northeast.
Other parts of the country are having a tougher time. Home values remain depressed today in several California, Florida and Nevada cities that were hit especially hard by the Great Recession of 2007-2009, according to an American City Business Journals (ACBJ) analysis of new federal data.
The current national pacesetter is Texas’ capital city, Austin, where the value of a typical home has soared by 64.9 percent since 2006.
Second place belongs to Denver, whose real-estate values have increased by an average of 45.5 percent in 10 years. Rounding out the top five is a trio of Texas metropolitan regions: Houston (up 45.2 percent), Dallas (43.6 percent) and San Antonio (35.9 percent). Scroll to the bottom of this page for a database with the latest numbers for 124 major markets.
At the opposite end of the national scale are seven metros where home prices are at least 25 percent lower than they were in 2006. The sharpest decline has occurred in Las Vegas, which is down 31.8 percent for the decade.
ACBJ, the parent company of Business First, compared local house prices in the third quarters of 2006 and 2016, using data compiled by the Federal Housing Finance Agency (FHFA). The 10-year span encompasses the final run-up of home values prior to the Great Recession, followed by the downturn itself and the subsequent economic recovery.
FHFA converts each market’s housing prices to a quarterly all-transactions index, which is pegged to a 1995 value of 100 points. Any rise in the index corresponds to an overall increase in local prices. Any drop indicates that values are declining.
ACBJ calculated the 10-year changes for all 124 metropolitan areas and divisions whose current populations are larger than 500,000. Austin’s index, for example, shot up from 178.24 points in the third quarter of 2006 to 293.88 points in the corresponding period this year, yielding a gain of 64.9 percent in the value of a typical home.
Seller's housing market could flip to buyers soon
considerations from consumeraffairs.com
Seller's housing market could flip to buyers soon
As inventory builds and rates rise, sellers will have less leverage
Over the last couple of years the U.S. housing market has transformed into something of a seller's market, especially in fast growing cities favored by Millennials.
Declining inventory of homes for sale has increased competition for the remaining homes on the market, driving up prices. So it's been good for sellers but not so good if you are trying to buy a home.
Real estate marketplace Zillow has found fewer than half of buyers successfully close on the first home they make an offer on.
But Zillow's market experts now predict the situation is about to change, but it won't do so overnight. However, with home values expected to slow to 3% next year, buyers could be back in the driver's seat by 2018 or 2019.
"Sellers in the current housing landscape often have the luxury of listing their home 'as-is' without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low,” said Zillow Chief Economist Dr. Svenja Gudell. “It's common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price, but these conditions will change in the future. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years."
Hot markets the last to flip
Of course, that might not be the case everywhere. Red hot housing markets will be the last to flip to a buyer's market. Zillow reports Portland, Seattle, and Dallas had the largest increase in appreciation among the 35 largest metros across the country in October.
The value of homes in Portland rose almost 15% to a median value of $349,500. In Dallas and Seattle, the price of typical homes increased just over 12% since October 2015. Consumers hoping to buy there will likely face stiff competition for some time.
New home construction is key
Housing markets that see the greatest increase in new home construction will likely be among the first to flip to a buyer's market, since new housing developments are the fastest way to increase housing inventory. As things now stand, new home construction remains about half of what it was during the housing bubble, but the National Association of Home Builders (NAHB) says the trend is moving higher.
“Builders are adding to inventory based on consistent gains in sales, solid builder confidence and ongoing job and economic growth,” said NAHB Chief Economist Robert Dietz.
According to the association's October numbers, the inventory of new homes for sale in the U.S. was 246,000, a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $304,500.
Seller's housing market could flip to buyers soon
As inventory builds and rates rise, sellers will have less leverage
Over the last couple of years the U.S. housing market has transformed into something of a seller's market, especially in fast growing cities favored by Millennials.
Declining inventory of homes for sale has increased competition for the remaining homes on the market, driving up prices. So it's been good for sellers but not so good if you are trying to buy a home.
Real estate marketplace Zillow has found fewer than half of buyers successfully close on the first home they make an offer on.
But Zillow's market experts now predict the situation is about to change, but it won't do so overnight. However, with home values expected to slow to 3% next year, buyers could be back in the driver's seat by 2018 or 2019.
"Sellers in the current housing landscape often have the luxury of listing their home 'as-is' without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low,” said Zillow Chief Economist Dr. Svenja Gudell. “It's common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price, but these conditions will change in the future. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years."
Hot markets the last to flip
Of course, that might not be the case everywhere. Red hot housing markets will be the last to flip to a buyer's market. Zillow reports Portland, Seattle, and Dallas had the largest increase in appreciation among the 35 largest metros across the country in October.
The value of homes in Portland rose almost 15% to a median value of $349,500. In Dallas and Seattle, the price of typical homes increased just over 12% since October 2015. Consumers hoping to buy there will likely face stiff competition for some time.
New home construction is key
Housing markets that see the greatest increase in new home construction will likely be among the first to flip to a buyer's market, since new housing developments are the fastest way to increase housing inventory. As things now stand, new home construction remains about half of what it was during the housing bubble, but the National Association of Home Builders (NAHB) says the trend is moving higher.
“Builders are adding to inventory based on consistent gains in sales, solid builder confidence and ongoing job and economic growth,” said NAHB Chief Economist Robert Dietz.
According to the association's October numbers, the inventory of new homes for sale in the U.S. was 246,000, a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $304,500.
8 experts predict what the 2017 housing market has in store
interesting insight and excerpt from inman.com
8 experts predict what the 2017 housing market has in store
What will happen to mortgage rates, affordability, inventory and more
Key Takeaways
-Mortgage rates are likely to continue to increase throughout 2017.
-There will not be any easing in inventory, and affordability will still be a challenge in big markets.
-The potential is there for a large number of first-time buyers to enter the buying market, but they will face new challenges.
It’s been one unprecedented 2016, between the Brexit vote, the continued persistence of low mortgage interest rates and an election that seemed to temporarily throw markets for a loop.
What will the 12 months encompassing 2017 hold in store for housing?
Inman asked eight different experts to give their take:
Steve Cook, editor of Real Estate Economy Watch
Doug Duncan, senior vice president and chief economist at Fannie Mae
Mark Fleming, chief economist at First American
Matthew Gardner, chief economist at Windermere
Svenja Gudell, chief economist at Zillow
Ralph McLaughlin, chief economist at Trulia
Rodney Ramcharan, director of research at University of Southern California’s Lusk for Real Estate
Jonathan Smoke, chief economist at realtor.com
Here’s what they told us.
Mortgage rates
We’ve been spoiled with historically low interest rates, which haven’t risen despite threats to do just that over the past few years. No more. “The kind of rates we were getting earlier this year, down to 3.5 percent — those days are over,” said Cook.
Where will they go?
“We will likely still see volatility in mortgage rates over the next two, three, four months as [President-elect Donald] Trump unveils cabinet members and specific policies he wants,” said McLaughlin.
And the Federal Reserve is due to hike rates, too, which often puts pressure on mortgage rates one way or another. “I think in December we’ll see the Fed raising rates and we’ll see more Fed hikes in 2017, and with that, I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent,” said Gudell.
“I don’t believe we’ll see any pullback until after the inauguration, but even the best-case scenario suggests that the historically low rates that have been in place for the last few years are firmly in the rear-view mirror,” said Gardner. “My forecast is for the 30-year fixed rate to rise above 4.5 percent by year’s end, and worst case scenario, knock on the door of 5 percent.”
What does it mean?
Whether or not the rate increase will affect homebuyers (and especially first-time homebuyers) remains to be seen, but Duncan believes it’s at least partially contingent on income growth.
“If income growth picks up, then the rise in interest rates will affect refinancing, but not the home purchase activity. If incomes start to grow more strongly, it probably won’t affect buying as much as refinancing,” he said.
Rodney Ramcharan
“Just looking at the pricing data in terms of interest rates, the spike in interest rates should definitely slow things down,” said Ramcharan.
Fleming said that if mortgage rates get closer to 5 percent by the end of 2017, he would expect home sales to decline by about 4 percent from First American’s original projection — or by about 200,000 sales.
At what point would rising mortgage rates start to significantly dampen buyer demand?
“When I’ve looked at this topic historically in the past, what you tended to see was an absolute level that the market reacted to, and in years past that absolute level was closer to 6.5 and 7 percent,” said Smoke.
“But there are plenty of people who believe that because we’ve had a decade of historically low rates that the new threshold for that might be in the mid 5’s or even as low as 5 percent. So if we see them jump more than we’re anticipating, getting into the 5s, then we start to run into that issue.”
However, Smoke thinks that in the meantime, there’s a lot that buyers can do to mitigate the effects of rising rates, including looking for lower-priced homes, putting more money down or changing term lengths on a mortgage’s fixed-rate component.
“If Trump goes ahead with his infrastructure plan, which is probably a smart thing to do and a no-brainer as far as Congress is concerned, it will stimulate the economy and probably increase pressure on rates,” added Cook.
Inventory
Housing inventory — or the lack thereof — was a big deal in 2016, and it will continue to be a problem next year, experts believe.
“Historically, you’d want to be much closer to a million homes built or sold, and we’re roughly at half of that, so I don’t think builders are going to have an easy time magically ramping up,” said Gudell.
Inventory will likely fluctuate by market and price point, too. “For people at high ends and expensive properties you may very well see a surge, and the expectation is that tax cuts will come,” said Ramcharan. “Prior to Trump being President-elect, there was a slowdown at the top end.”
How mortgage rates will influence inventory
Because most housing inventory comes from the existing market (as opposed to new construction), what potential sellers decide do in 2017 will have an impact on the market as a whole — and rising mortgage rates might not be great for sales.
“We’ve had effectively a 30-year tailwind run of declining mortgage rates,” said Fleming. “At this point in time, maybe they go up or down a little bit, but the long-term trend over the past 30 years has been lower and lower and lower mortgage rates.” Consequently, existing homeowners with low mortgage interest rates might not be able to afford to move into a bigger house if it also comes with a higher rate. “How do we address the fact that the existing homeowner, the largest single source of housing supply, has a built-in financial disincentive to make that supply move?” asked Fleming. “You’re making that decision to supply as a function of what you can afford to buy, but all else held equal, because you lose that low rate and have to get a new mortgage at a higher rate, you might not be able to buy your own home back from yourself without an increased monthly payment.”
Where’s the entry-level housing?
“The thing that’s missing is entry-level housing available for sale, but also, all of the apartment-building that is going on is all class A properties, which is the most expensive — no one is building class C properties,” said Duncan.
Sellers unwilling to budge
“Household psychology has affected people; they’re willing to take less risk than they were in the past,” said Duncan. “You can see that in the remodeling data. People are staying in place and remodeling their existing homes with a higher probability than in the past.” “The median tenure in homes is at an all-time high,” noted Jonathan Smoke. “Part of [that] is … the reasons people are purchasing tie into life events.
“Where this can be particularly important is with retiring baby boomers,” he added. “There’s a cohort of baby boomers who might think it’s in their best interest to stay put and make improvements so they can age in place.”
Affordability
A basic economics lesson: When inventory (supply) is thin on the ground, and demand is unchanged, you can expect prices to go up.
“Home construction is at full tilt and it’s still not filling the bill, particularly affordable housing,” noted Cook. “The average price of a new home is increasing still; we’re not serving the mid to lower-tier market with new home construction. So you’re not going to see much relief in affordability.”
Mortgage rates and ability to buy
“If you’re located in San Francisco, Los Angeles, Seattle, New York or Miami, rising mortgage rates might very well have an impact on you because you’re already stretching your budget as it is to get into a home that you can barely afford at historically low mortgage rates,” Gudell added. “In these places where affordability is already an issue, seeing these small bumps will already have a slight dampening effect, and we’ll see that effect not on all buyers but specifically first-time homebuyers or lower income folks. “People who are repeat buyers or buying higher-end homes won’t feel it so much.”
The big picture
“We still think affordability is going to be a challenge in some of the largest markets in the U.S. — L.A., the San Francisco Bay Area, the Pacific Northwest — but that said, the U.S. is still a very affordable place to buy a home,” said McLaughlin.
“Outside the big metros, things look pretty rosy for homebuyers. In many places, buyers wouldn’t have to spend more than 20 percent of their income to buy a home. “In some of the unaffordable markets, we may see pressures alleviate somewhat, but at the same time, nationally we are starting to see wages pick up, and we think that benefits those on the lower income distribution more than middle or upper income.” Still, “we are going to have to see many months or even years of solid wage gains to make up for price gains,” he added. “In general, home values will slow their climb next year,” said Gudell. “Currently we’re looking at 6-percent-ish annual appreciation; next year it’ll probably be half that, so a little bit of relaxation there, which will also feed into being more of a buyer’s market by the time we reached 2018.”
Millennial and first-time buyer trends
The biggest pool of potential homebuyers didn’t make huge strides toward homeownership in 2016 — so what will millennials be doing in 2017? “Our surveys of the prime first-time homebuying age people suggests a very high, 90 percent-plus, want to eventually own a home,” said Duncan. “What has tended to be the case is that they’re saying ‘just not right now,’ and that’s driven by the fact that their incomes haven’t risen as far as they need to and they’ve delayed getting married and having a baby relative to prior groups at this age point.” Duncan added that he thinks we might be at the bottom of the decline in the homeownership rate.
“Builders are seeing millennials, whose first home they are purchasing used to be the first move-up home, sort of leapfrogging that entry-level, and part of that may be there simply isn’t sufficient supply of the starter homes; they’ve just delayed buying until they could get the house that they wanted, the more midsized or first move-up house.”
Matthew Gardner
And Gardner thinks there is big potential for first-time buyers in 2017. “Although we have seen modest improvement in this buyer sector, I believe that the possibility of continued interest rate increases, in concert with a tightening labor market, will get many would-be buyers off the fence and into homeownership.”
8 experts predict what the 2017 housing market has in store
What will happen to mortgage rates, affordability, inventory and more
Key Takeaways
-Mortgage rates are likely to continue to increase throughout 2017.
-There will not be any easing in inventory, and affordability will still be a challenge in big markets.
-The potential is there for a large number of first-time buyers to enter the buying market, but they will face new challenges.
It’s been one unprecedented 2016, between the Brexit vote, the continued persistence of low mortgage interest rates and an election that seemed to temporarily throw markets for a loop.
What will the 12 months encompassing 2017 hold in store for housing?
Inman asked eight different experts to give their take:
Steve Cook, editor of Real Estate Economy Watch
Doug Duncan, senior vice president and chief economist at Fannie Mae
Mark Fleming, chief economist at First American
Matthew Gardner, chief economist at Windermere
Svenja Gudell, chief economist at Zillow
Ralph McLaughlin, chief economist at Trulia
Rodney Ramcharan, director of research at University of Southern California’s Lusk for Real Estate
Jonathan Smoke, chief economist at realtor.com
Here’s what they told us.
Mortgage rates
We’ve been spoiled with historically low interest rates, which haven’t risen despite threats to do just that over the past few years. No more. “The kind of rates we were getting earlier this year, down to 3.5 percent — those days are over,” said Cook.
Where will they go?
“We will likely still see volatility in mortgage rates over the next two, three, four months as [President-elect Donald] Trump unveils cabinet members and specific policies he wants,” said McLaughlin.
And the Federal Reserve is due to hike rates, too, which often puts pressure on mortgage rates one way or another. “I think in December we’ll see the Fed raising rates and we’ll see more Fed hikes in 2017, and with that, I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent,” said Gudell.
“I don’t believe we’ll see any pullback until after the inauguration, but even the best-case scenario suggests that the historically low rates that have been in place for the last few years are firmly in the rear-view mirror,” said Gardner. “My forecast is for the 30-year fixed rate to rise above 4.5 percent by year’s end, and worst case scenario, knock on the door of 5 percent.”
What does it mean?
Whether or not the rate increase will affect homebuyers (and especially first-time homebuyers) remains to be seen, but Duncan believes it’s at least partially contingent on income growth.
“If income growth picks up, then the rise in interest rates will affect refinancing, but not the home purchase activity. If incomes start to grow more strongly, it probably won’t affect buying as much as refinancing,” he said.
Rodney Ramcharan
“Just looking at the pricing data in terms of interest rates, the spike in interest rates should definitely slow things down,” said Ramcharan.
Fleming said that if mortgage rates get closer to 5 percent by the end of 2017, he would expect home sales to decline by about 4 percent from First American’s original projection — or by about 200,000 sales.
At what point would rising mortgage rates start to significantly dampen buyer demand?
“When I’ve looked at this topic historically in the past, what you tended to see was an absolute level that the market reacted to, and in years past that absolute level was closer to 6.5 and 7 percent,” said Smoke.
“But there are plenty of people who believe that because we’ve had a decade of historically low rates that the new threshold for that might be in the mid 5’s or even as low as 5 percent. So if we see them jump more than we’re anticipating, getting into the 5s, then we start to run into that issue.”
However, Smoke thinks that in the meantime, there’s a lot that buyers can do to mitigate the effects of rising rates, including looking for lower-priced homes, putting more money down or changing term lengths on a mortgage’s fixed-rate component.
“If Trump goes ahead with his infrastructure plan, which is probably a smart thing to do and a no-brainer as far as Congress is concerned, it will stimulate the economy and probably increase pressure on rates,” added Cook.
Inventory
Housing inventory — or the lack thereof — was a big deal in 2016, and it will continue to be a problem next year, experts believe.
“Historically, you’d want to be much closer to a million homes built or sold, and we’re roughly at half of that, so I don’t think builders are going to have an easy time magically ramping up,” said Gudell.
Inventory will likely fluctuate by market and price point, too. “For people at high ends and expensive properties you may very well see a surge, and the expectation is that tax cuts will come,” said Ramcharan. “Prior to Trump being President-elect, there was a slowdown at the top end.”
How mortgage rates will influence inventory
Because most housing inventory comes from the existing market (as opposed to new construction), what potential sellers decide do in 2017 will have an impact on the market as a whole — and rising mortgage rates might not be great for sales.
“We’ve had effectively a 30-year tailwind run of declining mortgage rates,” said Fleming. “At this point in time, maybe they go up or down a little bit, but the long-term trend over the past 30 years has been lower and lower and lower mortgage rates.” Consequently, existing homeowners with low mortgage interest rates might not be able to afford to move into a bigger house if it also comes with a higher rate. “How do we address the fact that the existing homeowner, the largest single source of housing supply, has a built-in financial disincentive to make that supply move?” asked Fleming. “You’re making that decision to supply as a function of what you can afford to buy, but all else held equal, because you lose that low rate and have to get a new mortgage at a higher rate, you might not be able to buy your own home back from yourself without an increased monthly payment.”
Where’s the entry-level housing?
“The thing that’s missing is entry-level housing available for sale, but also, all of the apartment-building that is going on is all class A properties, which is the most expensive — no one is building class C properties,” said Duncan.
Sellers unwilling to budge
“Household psychology has affected people; they’re willing to take less risk than they were in the past,” said Duncan. “You can see that in the remodeling data. People are staying in place and remodeling their existing homes with a higher probability than in the past.” “The median tenure in homes is at an all-time high,” noted Jonathan Smoke. “Part of [that] is … the reasons people are purchasing tie into life events.
“Where this can be particularly important is with retiring baby boomers,” he added. “There’s a cohort of baby boomers who might think it’s in their best interest to stay put and make improvements so they can age in place.”
Affordability
A basic economics lesson: When inventory (supply) is thin on the ground, and demand is unchanged, you can expect prices to go up.
“Home construction is at full tilt and it’s still not filling the bill, particularly affordable housing,” noted Cook. “The average price of a new home is increasing still; we’re not serving the mid to lower-tier market with new home construction. So you’re not going to see much relief in affordability.”
Mortgage rates and ability to buy
“If you’re located in San Francisco, Los Angeles, Seattle, New York or Miami, rising mortgage rates might very well have an impact on you because you’re already stretching your budget as it is to get into a home that you can barely afford at historically low mortgage rates,” Gudell added. “In these places where affordability is already an issue, seeing these small bumps will already have a slight dampening effect, and we’ll see that effect not on all buyers but specifically first-time homebuyers or lower income folks. “People who are repeat buyers or buying higher-end homes won’t feel it so much.”
The big picture
“We still think affordability is going to be a challenge in some of the largest markets in the U.S. — L.A., the San Francisco Bay Area, the Pacific Northwest — but that said, the U.S. is still a very affordable place to buy a home,” said McLaughlin.
“Outside the big metros, things look pretty rosy for homebuyers. In many places, buyers wouldn’t have to spend more than 20 percent of their income to buy a home. “In some of the unaffordable markets, we may see pressures alleviate somewhat, but at the same time, nationally we are starting to see wages pick up, and we think that benefits those on the lower income distribution more than middle or upper income.” Still, “we are going to have to see many months or even years of solid wage gains to make up for price gains,” he added. “In general, home values will slow their climb next year,” said Gudell. “Currently we’re looking at 6-percent-ish annual appreciation; next year it’ll probably be half that, so a little bit of relaxation there, which will also feed into being more of a buyer’s market by the time we reached 2018.”
Millennial and first-time buyer trends
The biggest pool of potential homebuyers didn’t make huge strides toward homeownership in 2016 — so what will millennials be doing in 2017? “Our surveys of the prime first-time homebuying age people suggests a very high, 90 percent-plus, want to eventually own a home,” said Duncan. “What has tended to be the case is that they’re saying ‘just not right now,’ and that’s driven by the fact that their incomes haven’t risen as far as they need to and they’ve delayed getting married and having a baby relative to prior groups at this age point.” Duncan added that he thinks we might be at the bottom of the decline in the homeownership rate.
“Builders are seeing millennials, whose first home they are purchasing used to be the first move-up home, sort of leapfrogging that entry-level, and part of that may be there simply isn’t sufficient supply of the starter homes; they’ve just delayed buying until they could get the house that they wanted, the more midsized or first move-up house.”
Matthew Gardner
And Gardner thinks there is big potential for first-time buyers in 2017. “Although we have seen modest improvement in this buyer sector, I believe that the possibility of continued interest rate increases, in concert with a tightening labor market, will get many would-be buyers off the fence and into homeownership.”
Tuesday, November 15, 2016
Winter Preparation Checklist
good reminders from Bob Vila...
from bobvila.com
Winter Preparation Checklist
Conduct a thorough inspection before the season’s first cold snap as part of your winter preparation.
Give your home a once-over and tend to winter preparation tasks and repairs before the year’s first frost. “Getting the exterior of the home ready for the cold winds, snow and ice is critical for keeping Old Man Winter out and keeping it warm and toasty inside,” says Reggie Marston, president of Residential Equity Management Home Inspections in Springfield, VA. By being proactive, you’ll lower your energy bills, increase the efficiency and lifespan of your home’s components, and make your property safer.
Windows and Doors
•Check all the weatherstripping around windows and doorframes for leaks to prevent heat loss. Replace weatherstripping, if necessary.
•Replace all screen doors with storm doors.
•Replace all window screens with storm windows.
•Examine wooden window frames for signs of rot or decay. Repair or replace framing to maintain structural integrity.
•Check for drafts around windows and doors. Caulk inside and out, where necessary, to keep heat from escaping.
•Inspect windows for cracks, broken glass, or gaps. Repair or replace, if needed.
Lawn, Garden, and Deck
•Trim overgrown branches back from the house and electrical wires to prevent iced-over or wind-swept branches from causing property damage or a power problem.
•Aerate the lawn, reseed, and apply a winterizing fertilizer to promote deep-root growth come spring.
•Ensure rain or snow drains away from the house to avoid foundation problems. The dirt grade — around the exterior of your home — should slope away from the house. Add extra dirt to low areas, as necessary.
•Clean and dry patio furniture. Cover with a heavy tarp or store inside a shed or garage to protect it from the elements.
•Clean soil from planters. Bring pots made of clay or other fragile materials indoors. Because terra cotta pots can swell and crack, lay them on their sides in a wood carton.
•Dig up flower bulbs, brush off soil, and label. Store bulbs in a bag or box with peat moss in a cool, dry place for spring replanting.
•Remove any attached hoses and store them away for the winter to prevent cracks, preserve their shapes, and prolong their life. Wrap outside faucets with covers to prevent water damage.
•Shut off exterior faucets. Drain water from outdoor pipes, valves, and sprinkler heads to protect against pipe bursts.
•Inspect decks for splintering, decay, or insect damage and treat, if needed, to prevent further deterioration over the winter.
•Clean leaves, dirt, and pine needles between the boards of wooden decks to thwart mold and mildew growth.
•Inspect outdoor lighting around the property. Good illumination will help minimize the chance of accidents on icy walkways at night.
•Check handrails on exterior stairs to make sure they’re well secured.
Tools and Machinery
•Bring all seasonal tools inside and spray them with a coating of lightweight oil to prevent rust.
•Weatherize your lawn mower by cleaning off mud, leaves, grass, and debris.
•Move your snow blower and shovels to the front of the garage or shed for easy access.
•Prepare the snow blower for the first snowfall by changing the oil and replacing the spark plug.
•Sharpen ice chopper and inspect snow shovels to make sure they’re ready for another season of work.
•Make sure you have an ample supply of ice melt or sand on hand for steps, walkways, and the driveway.
Heating, Ventilating, and Air Conditioning
•Inspect the firebox and flue system to ensure that they’re clean of any soot or creosote and that there aren’t any cracks or voids that could cause a fire hazard.
•Check fireplace for drafts. If it’s cold despite the damper being closed, the damper itself may be warped, worn, or rusted. Consider installing a Chimney Balloon into the flue to air seal the area tightly.
•Clean or replace the air filter in your furnace for maximum efficiency and improved indoor air quality.
•Clean your whole house humidifier and replace the evaporator pad.
•Bleed valves on any hot-water radiators to increase heating efficiency by releasing air that may be trapped inside.
•Check that smoke alarms and carbon monoxide detectors are in working order.
•Remove air conditioners from windows or cover them with insulated liners, to prevent drafts.
•If you have an older thermostat, replace it with a programmable unit to save on heating costs.
•Install foam-insulating sheets behind outlets and switch plates on exterior walls to reduce outside airflow.
•Make sure fans are switched to the reverse or clockwise position, which will blow warm air down to the floor for enhanced energy efficiency and comfort.
•Flush a hot water heater tank to remove sediment, and check the pressure relief valve to make sure it’s in proper working order.
•Examine exposed ducts in the attic, basement, and crawl spaces, and use a sealant to plug up any leaks.
Gutters, Roof, and Drains
•Check for missing, damaged or warped shingles and replace, as necessary before you get stuck with a leak.
•Check for deteriorated flashing at the chimney, walls, and skylights and around vent pipes. Seal joints where water could penetrate, using roofing cement and a caulking gun.
•Check the gutters and downspouts for proper fastening, and re-secure if loose or sagging. The weight of snow and ice can pull gutters off the house.
•Clean gutters of any debris. Make sure downspouts extend away from the house by at least 5 feet to prevent flooding of the foundation and water damage from snowmelt.
•Clean leaves and debris from courtyard and pool storm drains to prevent blockages.
•Ensure all vents and openings are covered to prevent insects, birds, and rodents from getting inside to nest in a warm place.
Done? Congratulations! You’re officially ready for winter.
from bobvila.com
Winter Preparation Checklist
Conduct a thorough inspection before the season’s first cold snap as part of your winter preparation.
Give your home a once-over and tend to winter preparation tasks and repairs before the year’s first frost. “Getting the exterior of the home ready for the cold winds, snow and ice is critical for keeping Old Man Winter out and keeping it warm and toasty inside,” says Reggie Marston, president of Residential Equity Management Home Inspections in Springfield, VA. By being proactive, you’ll lower your energy bills, increase the efficiency and lifespan of your home’s components, and make your property safer.
Windows and Doors
•Check all the weatherstripping around windows and doorframes for leaks to prevent heat loss. Replace weatherstripping, if necessary.
•Replace all screen doors with storm doors.
•Replace all window screens with storm windows.
•Examine wooden window frames for signs of rot or decay. Repair or replace framing to maintain structural integrity.
•Check for drafts around windows and doors. Caulk inside and out, where necessary, to keep heat from escaping.
•Inspect windows for cracks, broken glass, or gaps. Repair or replace, if needed.
Lawn, Garden, and Deck
•Trim overgrown branches back from the house and electrical wires to prevent iced-over or wind-swept branches from causing property damage or a power problem.
•Aerate the lawn, reseed, and apply a winterizing fertilizer to promote deep-root growth come spring.
•Ensure rain or snow drains away from the house to avoid foundation problems. The dirt grade — around the exterior of your home — should slope away from the house. Add extra dirt to low areas, as necessary.
•Clean and dry patio furniture. Cover with a heavy tarp or store inside a shed or garage to protect it from the elements.
•Clean soil from planters. Bring pots made of clay or other fragile materials indoors. Because terra cotta pots can swell and crack, lay them on their sides in a wood carton.
•Dig up flower bulbs, brush off soil, and label. Store bulbs in a bag or box with peat moss in a cool, dry place for spring replanting.
•Remove any attached hoses and store them away for the winter to prevent cracks, preserve their shapes, and prolong their life. Wrap outside faucets with covers to prevent water damage.
•Shut off exterior faucets. Drain water from outdoor pipes, valves, and sprinkler heads to protect against pipe bursts.
•Inspect decks for splintering, decay, or insect damage and treat, if needed, to prevent further deterioration over the winter.
•Clean leaves, dirt, and pine needles between the boards of wooden decks to thwart mold and mildew growth.
•Inspect outdoor lighting around the property. Good illumination will help minimize the chance of accidents on icy walkways at night.
•Check handrails on exterior stairs to make sure they’re well secured.
Tools and Machinery
•Bring all seasonal tools inside and spray them with a coating of lightweight oil to prevent rust.
•Weatherize your lawn mower by cleaning off mud, leaves, grass, and debris.
•Move your snow blower and shovels to the front of the garage or shed for easy access.
•Prepare the snow blower for the first snowfall by changing the oil and replacing the spark plug.
•Sharpen ice chopper and inspect snow shovels to make sure they’re ready for another season of work.
•Make sure you have an ample supply of ice melt or sand on hand for steps, walkways, and the driveway.
Heating, Ventilating, and Air Conditioning
•Inspect the firebox and flue system to ensure that they’re clean of any soot or creosote and that there aren’t any cracks or voids that could cause a fire hazard.
•Check fireplace for drafts. If it’s cold despite the damper being closed, the damper itself may be warped, worn, or rusted. Consider installing a Chimney Balloon into the flue to air seal the area tightly.
•Clean or replace the air filter in your furnace for maximum efficiency and improved indoor air quality.
•Clean your whole house humidifier and replace the evaporator pad.
•Bleed valves on any hot-water radiators to increase heating efficiency by releasing air that may be trapped inside.
•Check that smoke alarms and carbon monoxide detectors are in working order.
•Remove air conditioners from windows or cover them with insulated liners, to prevent drafts.
•If you have an older thermostat, replace it with a programmable unit to save on heating costs.
•Install foam-insulating sheets behind outlets and switch plates on exterior walls to reduce outside airflow.
•Make sure fans are switched to the reverse or clockwise position, which will blow warm air down to the floor for enhanced energy efficiency and comfort.
•Flush a hot water heater tank to remove sediment, and check the pressure relief valve to make sure it’s in proper working order.
•Examine exposed ducts in the attic, basement, and crawl spaces, and use a sealant to plug up any leaks.
Gutters, Roof, and Drains
•Check for missing, damaged or warped shingles and replace, as necessary before you get stuck with a leak.
•Check for deteriorated flashing at the chimney, walls, and skylights and around vent pipes. Seal joints where water could penetrate, using roofing cement and a caulking gun.
•Check the gutters and downspouts for proper fastening, and re-secure if loose or sagging. The weight of snow and ice can pull gutters off the house.
•Clean gutters of any debris. Make sure downspouts extend away from the house by at least 5 feet to prevent flooding of the foundation and water damage from snowmelt.
•Clean leaves and debris from courtyard and pool storm drains to prevent blockages.
•Ensure all vents and openings are covered to prevent insects, birds, and rodents from getting inside to nest in a warm place.
Done? Congratulations! You’re officially ready for winter.
Top 5 Reasons to Buy a Home During the Holidays
more food for thought on real estate and buying during the holidays...
from moneytips.com
Few people like to uproot their family and go through the stresses of home buying and moving during the holidays, but for those who do not mind, the holiday season may provide home buying bargains. Here are a few of the reasons why.
•Less Market Activity – Lots of family, school, and work activities, combined with the weather in many locations, lead to fewer real estate transactions over the holidays. Since fewer people overall are looking to buy houses, you will have less competition for your preferred house – and this gives you leverage.
Holiday home sellers often have to adjust their price downward or make other concessions if they want to sell. Keep this in mind as you search for homes. Bargains may be available, and listed prices may be more open to negotiation.
•Motivated Sellers – People who are selling their homes over the holidays often have great incentive to sell, such as an upcoming job relocation. If a house has already been on the market for some time, that incentive is multiplied.
You may be able to use this urgency to your advantage (assuming you are not in a similarly urgent need to buy). Negotiate fairly but firmly with sellers and you should be able to extract a lower price and/or other concessions like paying part of the closing costs.
•Potential Tax Advantages – If you itemize your taxes, you can deduct any points you paid upon closing, as well as property taxes and mortgage interest. Whether it is to your advantage to buy before or after year’s end depends on factors such as how many other deductions you have this year and expect to have next year.
It is best to consult with a tax professional before purchase. Even though you do not want to make a decision on a home purchase strictly for tax reasons, it could be to your benefit to close before the end of the year.
•Better Interest Rates – Within the general trend of interest rates, there is often a cyclical trend of lower interest rates during the holidays – not from the generosity of lenders but due to limited demand forcing greater competition among lenders.
There are plenty of factors that can obscure or swamp this cycle, but in general, you should see preferable interest rates around the holidays compared to the times immediately before or after.
•Faster Closings – Generally, all parties involved have incentive to complete transactions toward the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before the year closes, sellers want to move on to their new home and settle in for the holidays – and just like the sellers, you want to settle in as well.
Since all parties are motivated and there are fewer transactions taking place during this time, it should be easier to put everything in place for a smooth and rapid closing.
These factors do not always apply. For example, if you are trying to buy a home in a winter ski resort area or similar high-demand winter destination, these dynamics may be reversed – except for the tax implications. However, for the majority of Americans, the holidays represent an opportunity to buy a home under mostly favorable economic conditions.
The weather may still be frightful, but your opportunities to buy a home around the holidays may be just as delightful. Enjoy the holiday season as you explore your options. Don’t forget to give Santa your forwarding address!
from moneytips.com
Few people like to uproot their family and go through the stresses of home buying and moving during the holidays, but for those who do not mind, the holiday season may provide home buying bargains. Here are a few of the reasons why.
•Less Market Activity – Lots of family, school, and work activities, combined with the weather in many locations, lead to fewer real estate transactions over the holidays. Since fewer people overall are looking to buy houses, you will have less competition for your preferred house – and this gives you leverage.
Holiday home sellers often have to adjust their price downward or make other concessions if they want to sell. Keep this in mind as you search for homes. Bargains may be available, and listed prices may be more open to negotiation.
•Motivated Sellers – People who are selling their homes over the holidays often have great incentive to sell, such as an upcoming job relocation. If a house has already been on the market for some time, that incentive is multiplied.
You may be able to use this urgency to your advantage (assuming you are not in a similarly urgent need to buy). Negotiate fairly but firmly with sellers and you should be able to extract a lower price and/or other concessions like paying part of the closing costs.
•Potential Tax Advantages – If you itemize your taxes, you can deduct any points you paid upon closing, as well as property taxes and mortgage interest. Whether it is to your advantage to buy before or after year’s end depends on factors such as how many other deductions you have this year and expect to have next year.
It is best to consult with a tax professional before purchase. Even though you do not want to make a decision on a home purchase strictly for tax reasons, it could be to your benefit to close before the end of the year.
•Better Interest Rates – Within the general trend of interest rates, there is often a cyclical trend of lower interest rates during the holidays – not from the generosity of lenders but due to limited demand forcing greater competition among lenders.
There are plenty of factors that can obscure or swamp this cycle, but in general, you should see preferable interest rates around the holidays compared to the times immediately before or after.
•Faster Closings – Generally, all parties involved have incentive to complete transactions toward the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before the year closes, sellers want to move on to their new home and settle in for the holidays – and just like the sellers, you want to settle in as well.
Since all parties are motivated and there are fewer transactions taking place during this time, it should be easier to put everything in place for a smooth and rapid closing.
These factors do not always apply. For example, if you are trying to buy a home in a winter ski resort area or similar high-demand winter destination, these dynamics may be reversed – except for the tax implications. However, for the majority of Americans, the holidays represent an opportunity to buy a home under mostly favorable economic conditions.
The weather may still be frightful, but your opportunities to buy a home around the holidays may be just as delightful. Enjoy the holiday season as you explore your options. Don’t forget to give Santa your forwarding address!
Top 10 Tips for Selling Your Home During the Holidays
from hgtv.com
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.
1.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.
2.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.
3.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.
4.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.
5.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.
6.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.
7.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.
8.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.
9.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.
10.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.
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.
1.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.
2.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.
3.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.
4.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.
5.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.
6.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.
7.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.
8.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.
9.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.
10.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.
Colorado Chateau in the Sky
from denverpost.com
$17.5 million Chateau V in Evergreen is a mansion modeled after the historic Biltmore Estate
Windows and terraces in the 16,817-square-foot castle take full advantage of Mount Evans views
A Massive Castle in Colorado Seeks $17.5 Million
WHAT: 600 Chateau V Road is a six-bedroom mansion with six full bathrooms and two half baths. It’s situated on 35 acres in Evergreen, near the Clear Creek County line.
PRICE: At $17.5 million — $1,041 per square foot — it is the “largest residential undertaking” in the Evergreen/Conifer area, according to LIV Sotheby’s International‘s listing. The taxes alone are around $30,000 a year.
SIZE: 16,817 square feet
LOCATION: The drive to this location from Evergreen Lake winds up historic estate-lined Upper Bear Creek Road. After about 5 miles of creek-hugging curves, the road opens up to a valley of soft green meadows and a postcard-perfect view of Mount Evans, which seems so close that you could touch it. The area has historically included a mix of ranches, cabins and modest homes, but newly built, sprawling mansions have made Upper Bear Creek one of the most desirable locations on the Front Range. Access to the 74,000-acre Mount Evans Wilderness is just up the road, a true Rocky Mountain destination for hunters, anglers, hikers and backcountry campers. This property is on the edge of the Jefferson County/Clear Creek County line.
ABOUT THE HOUSE: Completed in 2015 after nine years of construction, this limestone Châteauesque mansion was modeled after the 19th century Biltmore House in Asheville, N.C. Chateau V has all the accoutrements of a real castle: stained and diamond-cut glass at every turn, wrought iron accents, 126 chandeliers, 25-foot ceilings in the great room, four fireplaces (including one enjoyable from an outdoor deck), a wine cellar, a library, bubble balconies, a porte-cochere and an in-law suite. But the most jaw-dropping feature is the view to the west of Mount Evans, visible from every elegant terrace.
$17.5 million Chateau V in Evergreen is a mansion modeled after the historic Biltmore Estate
Windows and terraces in the 16,817-square-foot castle take full advantage of Mount Evans views
A Massive Castle in Colorado Seeks $17.5 Million
WHAT: 600 Chateau V Road is a six-bedroom mansion with six full bathrooms and two half baths. It’s situated on 35 acres in Evergreen, near the Clear Creek County line.
PRICE: At $17.5 million — $1,041 per square foot — it is the “largest residential undertaking” in the Evergreen/Conifer area, according to LIV Sotheby’s International‘s listing. The taxes alone are around $30,000 a year.
SIZE: 16,817 square feet
LOCATION: The drive to this location from Evergreen Lake winds up historic estate-lined Upper Bear Creek Road. After about 5 miles of creek-hugging curves, the road opens up to a valley of soft green meadows and a postcard-perfect view of Mount Evans, which seems so close that you could touch it. The area has historically included a mix of ranches, cabins and modest homes, but newly built, sprawling mansions have made Upper Bear Creek one of the most desirable locations on the Front Range. Access to the 74,000-acre Mount Evans Wilderness is just up the road, a true Rocky Mountain destination for hunters, anglers, hikers and backcountry campers. This property is on the edge of the Jefferson County/Clear Creek County line.
ABOUT THE HOUSE: Completed in 2015 after nine years of construction, this limestone Châteauesque mansion was modeled after the 19th century Biltmore House in Asheville, N.C. Chateau V has all the accoutrements of a real castle: stained and diamond-cut glass at every turn, wrought iron accents, 126 chandeliers, 25-foot ceilings in the great room, four fireplaces (including one enjoyable from an outdoor deck), a wine cellar, a library, bubble balconies, a porte-cochere and an in-law suite. But the most jaw-dropping feature is the view to the west of Mount Evans, visible from every elegant terrace.
How Trump's Presidency Could Impact Real Estate
food for thought from forbes.com
How will the real estate market be impacted by Donald Trump’s victory and Republicans controlling both chambers of Congress? Though Mr. Trump is a real estate man, his policy platform has been largely vague on real estate proposals. Here is Forbes thoughts on how certain real estate issues may play out under President Trump and of their potential impact to consumers.
1. There will no doubt be a short-term stimulus to the economy. A combination of tax cuts and government spending in the form of upgrading nation’s infrastructure and for national defense will provide a short boost to the economy in the first half of 2017. Inflation will likely kick a bit higher from a faster GDP growth and that will lead to modestly higher interest rates. Accompanying gains in consumer confidence will further move the economy higher. Should the faster GDP growth be sustained and arise out of higher productivity, then inflation will be manageable. Moreover, more jobs will automatically mean more tax revenue, which will lessen budget deficit. Should, however, the stimulus impact give only a short term boost and not be durable then a much larger budget deficit will force interest rates notably higher. The future generation will be saddled with more debt.
2. The trade deficit will surely rise in 2017. That’s because a growing economy will allow Americans to drink more Italian wine, drive German sports cars, watch Korean dramas, and play Japanese game consoles. More vacation trips to Cancun and London are also likely. These activities always happen when consumers regain confidence about their financial well-being. Should tariffs be raised to lessen the trade deficit, consumers will face higher prices. If exports and imports significantly decline, then history has repeatedly shown that recession and job cuts soon follow. Most economists believe job training and re-training via community colleges are much better ways to help those who lose jobs from technological automation and from international trade.
3. There will be more gyrations in the stock market. Wall Street will cheer because of less government regulation but will frown on restrictive international trade policies. The current leader of the Federal Reserve, Janet Yellen, may be asked to step down and this perceived intrusion into what should be an independent institution may be viewed by the financial market as unsettling. Perhaps Mr. Trump relishes in his unpredictability. But the rise of uncertainty in the financial market will hold back corporate investment spending decisions. History says that economic dynamism thrives on the rule of law and not on whims of policy uncertainty. Institutions of law matter much more than any one person or a group of people.
4. Changes to Dodd-Frank financial regulation will occur in some form. A clear positive would be the lifting of compliance costs imposed on small-sized banks. Around 10,000 local and community banks have traditionally been the source of funding for construction and land development loans. With less regulatory burden, these small banks can make more loans and will boost home building activity – something that is needed in the current housing shortage situation. But changes to financial regulations on large banks like Goldman Sachs and Wells Fargo could again lead us back to the days of cowboy capitalism and consequent exposure to a massive taxpayer bailout.
5. There could be a move away from stringent mortgage underwriting to more normal lending. Credit is still tight for mortgages as evidenced by very high credit scores among those who are getting approved. An important reason for overly-conservative lending is due to the exposure of random lawsuits by the government on lending institutions in recent years. To the degree that the Trump Administration makes it very clear as to what is and what is not an infraction then more mortgages will be provided to consumers. Should the Trump Administration create an environment of “we will sue you” then the lending institutions will retrench and shut off mortgage access to many consumers.
6. There could be less regulatory land-use and zoning burden for home construction, and thereby lower the cost of building. In recent years, newly constructed home prices have been much higher than existing home prices. Homebuilders say that is due to all the extra cost of regulation and not necessarily from higher input cost of lumber, cement, and worker wages. President Obama’s economists in fact wrote a white paper on the topic of lifting this burden. President Trump will likely try to move this issue – though jurisdictional issues of federal versus local will be contested.
7. Fannie Mae and Freddie Mac may not survive. This would be most unfortunate. Let me be clear, these two institutions made horrendous business decisions in the past to buy subprime mortgages, create an internal hedge fund, and be led by political players in an attempt to serve political goals. That mistake cost hundreds of billions of taxpayer dollars. Fortunately, after management changes Fannie and Freddie today are led by technicians providing a government guarantee on soundly-written mortgages. As a result, they have repaid all the taxpayer bailout money. Moreover, they are doing so well financially given the very low mortgage default rates, that the U.S. Treasury is getting added revenue on the backs of responsible homeowners. If anything, the guarantee fees are too high and should be reduced. If Washington’s instinct is to eliminate Fannie and Freddie because of their past sins from past managers, then mortgages will be much more expensive with 30-year fixed rate products disappearing from the market place. Consider: mortgage lending on commercial real estate collapsed by over 90% a few years ago during the financial market crisis because there are no government guarantees for this product. Imagine what the housing market would be like if there was an equivalent crash of 90% reduction in home buying. We should view supporting Fannie and Freddie in the same way as we view supporting FDIC deposit government guarantee at banks – to help smooth the financial market.
8. Community colleges are likely to get more help. That is because we need more workers with trade skills such as welders, plumbers, bricklayers, electricians, nurse assistants, and x-ray technicians. Some of these graduates will go into building homes and commercial real estate development. Interestingly, even though Mr. Trump and Secretary Clinton refused to shake hands, they both agreed on the greater role of community colleges in today’s economy.
9. Homeowners in flood zones and who suffer through natural disasters may get much less relief from the government. Currently this federal program to assist in wild fires, hurricanes, earthquakes, and other natural disasters is $24 billion in the hole. The government instinct could be to reduce government’s role and have homeowners pay more. All risks should no doubt be properly priced. But the current flood map for federal insurance coverage is totally outdated and not useful. Rather than lessen the coverage on federal insurance more efforts should be made on updating the maps so a better risk assessment can be made.
10. There will be active discussions on tax reform. The goal would be to simplify. Currently, the U.S. tax code is said to be thicker than the Bible – but without any of the good news. In simplifying, there could be a trimming of the mortgage interest deduction, reducing property tax deduction, and cutting of exemptions on capital gains from the sale of a home. Moreover, for commercial real estate practitioners, the like-kind exchange tax deferral (also known in the industry as 1031) could easily be on the chopping block. Research has consistently shown how valuable these tax preferences are for homeownership, in protecting private property rights, and for economic growth. People in real estate and property owners across the country should therefore be on alert about any policy discussion on these matters.
One particular aspect of the tax code of note with President Trump will be about commercial real estate depreciation. That is because Mr. Trump has said he used this depreciation to not pay any taxes. How exactly one gets such a bigly write-off to be able to not pay personal income for many years is not clear and will likely be never be known because his tax filings will not be disclosed. But the attention to this depreciation will be there. In long days past, many wealthy doctors, lawyers, and other high income professionals bought real estate at the recommendation of their tax advisors to lower their tax obligation. But in 1986, a new tax code prevented these “passive losses” of depreciation. It initially also tried to limit depreciation to real estate investors who are active in the real estate business. That would have been equivalent to not being able to depreciate expensive medical equipment by doctors in their business. Makes no sense. That is why the National Association of REALTORS made it known that depreciation should be allowed as an “active loss” for those who practice real estate as their profession. The current tax code makes this distinction, and is unlikely to be on the chopping block in the tax reform discussion.
There will plenty of other issues in discussion that will also impact real estate. What to do about the tripling in student debt over the past decade? Immigration restrictions on home buying? EPA’s policy on land use? Drones? Lead paint? The Fair Housing Act? Stay tuned. In the meantime, let’s hope that Mr. Trump can surprise positively as only he can do. If he can somehow unite and rouse the country of “Making America Great Again” and significantly alter confidence and behavior then the economy can grow just from the positive outlook and will not cost taxpayer an ounce of extra penny. That would be the best scenario.
How will the real estate market be impacted by Donald Trump’s victory and Republicans controlling both chambers of Congress? Though Mr. Trump is a real estate man, his policy platform has been largely vague on real estate proposals. Here is Forbes thoughts on how certain real estate issues may play out under President Trump and of their potential impact to consumers.
1. There will no doubt be a short-term stimulus to the economy. A combination of tax cuts and government spending in the form of upgrading nation’s infrastructure and for national defense will provide a short boost to the economy in the first half of 2017. Inflation will likely kick a bit higher from a faster GDP growth and that will lead to modestly higher interest rates. Accompanying gains in consumer confidence will further move the economy higher. Should the faster GDP growth be sustained and arise out of higher productivity, then inflation will be manageable. Moreover, more jobs will automatically mean more tax revenue, which will lessen budget deficit. Should, however, the stimulus impact give only a short term boost and not be durable then a much larger budget deficit will force interest rates notably higher. The future generation will be saddled with more debt.
2. The trade deficit will surely rise in 2017. That’s because a growing economy will allow Americans to drink more Italian wine, drive German sports cars, watch Korean dramas, and play Japanese game consoles. More vacation trips to Cancun and London are also likely. These activities always happen when consumers regain confidence about their financial well-being. Should tariffs be raised to lessen the trade deficit, consumers will face higher prices. If exports and imports significantly decline, then history has repeatedly shown that recession and job cuts soon follow. Most economists believe job training and re-training via community colleges are much better ways to help those who lose jobs from technological automation and from international trade.
3. There will be more gyrations in the stock market. Wall Street will cheer because of less government regulation but will frown on restrictive international trade policies. The current leader of the Federal Reserve, Janet Yellen, may be asked to step down and this perceived intrusion into what should be an independent institution may be viewed by the financial market as unsettling. Perhaps Mr. Trump relishes in his unpredictability. But the rise of uncertainty in the financial market will hold back corporate investment spending decisions. History says that economic dynamism thrives on the rule of law and not on whims of policy uncertainty. Institutions of law matter much more than any one person or a group of people.
4. Changes to Dodd-Frank financial regulation will occur in some form. A clear positive would be the lifting of compliance costs imposed on small-sized banks. Around 10,000 local and community banks have traditionally been the source of funding for construction and land development loans. With less regulatory burden, these small banks can make more loans and will boost home building activity – something that is needed in the current housing shortage situation. But changes to financial regulations on large banks like Goldman Sachs and Wells Fargo could again lead us back to the days of cowboy capitalism and consequent exposure to a massive taxpayer bailout.
5. There could be a move away from stringent mortgage underwriting to more normal lending. Credit is still tight for mortgages as evidenced by very high credit scores among those who are getting approved. An important reason for overly-conservative lending is due to the exposure of random lawsuits by the government on lending institutions in recent years. To the degree that the Trump Administration makes it very clear as to what is and what is not an infraction then more mortgages will be provided to consumers. Should the Trump Administration create an environment of “we will sue you” then the lending institutions will retrench and shut off mortgage access to many consumers.
6. There could be less regulatory land-use and zoning burden for home construction, and thereby lower the cost of building. In recent years, newly constructed home prices have been much higher than existing home prices. Homebuilders say that is due to all the extra cost of regulation and not necessarily from higher input cost of lumber, cement, and worker wages. President Obama’s economists in fact wrote a white paper on the topic of lifting this burden. President Trump will likely try to move this issue – though jurisdictional issues of federal versus local will be contested.
7. Fannie Mae and Freddie Mac may not survive. This would be most unfortunate. Let me be clear, these two institutions made horrendous business decisions in the past to buy subprime mortgages, create an internal hedge fund, and be led by political players in an attempt to serve political goals. That mistake cost hundreds of billions of taxpayer dollars. Fortunately, after management changes Fannie and Freddie today are led by technicians providing a government guarantee on soundly-written mortgages. As a result, they have repaid all the taxpayer bailout money. Moreover, they are doing so well financially given the very low mortgage default rates, that the U.S. Treasury is getting added revenue on the backs of responsible homeowners. If anything, the guarantee fees are too high and should be reduced. If Washington’s instinct is to eliminate Fannie and Freddie because of their past sins from past managers, then mortgages will be much more expensive with 30-year fixed rate products disappearing from the market place. Consider: mortgage lending on commercial real estate collapsed by over 90% a few years ago during the financial market crisis because there are no government guarantees for this product. Imagine what the housing market would be like if there was an equivalent crash of 90% reduction in home buying. We should view supporting Fannie and Freddie in the same way as we view supporting FDIC deposit government guarantee at banks – to help smooth the financial market.
8. Community colleges are likely to get more help. That is because we need more workers with trade skills such as welders, plumbers, bricklayers, electricians, nurse assistants, and x-ray technicians. Some of these graduates will go into building homes and commercial real estate development. Interestingly, even though Mr. Trump and Secretary Clinton refused to shake hands, they both agreed on the greater role of community colleges in today’s economy.
9. Homeowners in flood zones and who suffer through natural disasters may get much less relief from the government. Currently this federal program to assist in wild fires, hurricanes, earthquakes, and other natural disasters is $24 billion in the hole. The government instinct could be to reduce government’s role and have homeowners pay more. All risks should no doubt be properly priced. But the current flood map for federal insurance coverage is totally outdated and not useful. Rather than lessen the coverage on federal insurance more efforts should be made on updating the maps so a better risk assessment can be made.
10. There will be active discussions on tax reform. The goal would be to simplify. Currently, the U.S. tax code is said to be thicker than the Bible – but without any of the good news. In simplifying, there could be a trimming of the mortgage interest deduction, reducing property tax deduction, and cutting of exemptions on capital gains from the sale of a home. Moreover, for commercial real estate practitioners, the like-kind exchange tax deferral (also known in the industry as 1031) could easily be on the chopping block. Research has consistently shown how valuable these tax preferences are for homeownership, in protecting private property rights, and for economic growth. People in real estate and property owners across the country should therefore be on alert about any policy discussion on these matters.
One particular aspect of the tax code of note with President Trump will be about commercial real estate depreciation. That is because Mr. Trump has said he used this depreciation to not pay any taxes. How exactly one gets such a bigly write-off to be able to not pay personal income for many years is not clear and will likely be never be known because his tax filings will not be disclosed. But the attention to this depreciation will be there. In long days past, many wealthy doctors, lawyers, and other high income professionals bought real estate at the recommendation of their tax advisors to lower their tax obligation. But in 1986, a new tax code prevented these “passive losses” of depreciation. It initially also tried to limit depreciation to real estate investors who are active in the real estate business. That would have been equivalent to not being able to depreciate expensive medical equipment by doctors in their business. Makes no sense. That is why the National Association of REALTORS made it known that depreciation should be allowed as an “active loss” for those who practice real estate as their profession. The current tax code makes this distinction, and is unlikely to be on the chopping block in the tax reform discussion.
There will plenty of other issues in discussion that will also impact real estate. What to do about the tripling in student debt over the past decade? Immigration restrictions on home buying? EPA’s policy on land use? Drones? Lead paint? The Fair Housing Act? Stay tuned. In the meantime, let’s hope that Mr. Trump can surprise positively as only he can do. If he can somehow unite and rouse the country of “Making America Great Again” and significantly alter confidence and behavior then the economy can grow just from the positive outlook and will not cost taxpayer an ounce of extra penny. That would be the best scenario.
Sunday, October 16, 2016
8 Surprising Factors That Can Affect Your Home’s Value
another interesting article from trulia.com
Besides the obvious factors, there are some quirky elements that can affect your home’s value. Find out what they are.
Surprise! You might know more about real estate than you think. For example, you know that square footage, number of bedrooms and bathrooms, lot size, and location determine home value: A 4,000-square-foot, five-bed, five-bath beachfront home for sale in Miami, FL, will almost always be worth more than a 2,000-square-foot, two-bed, two-bath home on a quarter-acre lot 20 miles inland.
But those obvious factors aren’t everything you need to calculate your home’s property value estimate. Other, less obvious features can negatively or positively come into play — features you might not have considered. Here are eight frequently overlooked (and not always fixable) things that, for better or for worse, can impact the value of your home.
1. The name of your street (really!)
People typically prefer the street they live on to have a name versus a number. It’s true nationwide (with the exceptions of New York, NY, and Atlanta, GA, where there is no difference, and Denver, CO, where numbers are favored). According to a study by Trulia, “street” is the least expensive address suffix by price per square foot, and “boulevard” is the most expensive.
2. Your house number
Ever heard of house numerology? This is the practice of assigning a single-digit number to your home based on its address. Let’s say your address is 1219 Main St. Add 1 + 2 + 1 + 9 to get 13. Then add 1 + 3. Your house would be 4: good for investments and security but bad for adventure and excitement. While this type of house numerology may be passed off as a superstition, buyers who subscribe to this theory may overlook potential homes because of their numerology calculations. However, whether or not you’re into numerology, house numbers do matter. If your address is 13 (a universally unlucky number), you might choose to price your home slightly less than your neighbor at number 12 did.
3. Sketchy neighbors
The closer you live to your neighbor, the more important it will be for your tastes, habits, and personalities to jibe with theirs. “In a condo, the last thing a potential buyer wants is to purchase a unit where the neighbors above are noisy or inconsiderate,” says Thomas Miller, who specializes in Washington, DC, real estate. Owners of single-family homes can thank fastidious neighbors with good taste to increase the values of all nearby homes. But, of course, the opposite is also true: “I know a homeowner who had great difficulty selling their home because their next-door neighbors constructed a giant memorial dedicated to Michael Jackson on the front lawn,” says Miller. The next time you want to complain about your homeowners’ association, picture that image.
4. Mature trees
Tree-huggers and environmentalists unite! It’s common practice for developers to cut down most of (or all!) the trees on a property to build homes. But mature trees almost always enhance property values. Still don’t believe it? Check out the National Tree Benefit Calculator to see the full benefits of planting specific types of trees. If you have the space, make a trip to your local nursery to discuss the best tree options for your home.
5. Crown moldings
If you’ve worked hard to select just the right neutral and serene paint color scheme that will probably attract the most buyers, you’re doing yourself a disservice if you neglect one important element: crown moldings. “People love crown moldings,” says Alexander Boriskin, a New York, NY, agent. “Of course, everyone loves high ceilings too,” he says. Although you can’t do anything about how high your ceilings are, you can put in crown moldings — even with lower ceilings. Just make sure they work with the scale of the room, and don’t veer too far into the trend zone.
6. Yankees paraphernalia
Yankees fans, relax. We’re not picking on just you. Although this anecdote from New Jersey real estate agent Kevin Lawton happens to be about the New York baseball team, you could insert any team here. “Everything in the home was Yankees,” he says. “[The sellers] even had carpeting in the family room that had baseballs on it.” The verdict? Many people were turned off, especially Red Sox fans. If you don’t want to alienate a potential buyer, you might want to stash the fan gear away while your home is on the market.
7. Starbucks
And Trader Joe’s and Whole Foods. If you have any of those establishments close by, typically within a mile, up goes your property’s value. “Homes near Trader Joe’s have increased in value by an average of 40% since purchased,” says Chris Leavitt, a South Florida and New York, NY, agent and past star of the TV series Million Dollar Listing Miami. “Nearby Starbucks and Whole Foods Markets also enjoyed double-digit gains on home value.”
8. A death on the property
In some states, such as California, sellers must disclose whether there was a death on the property, which can be a deal breaker for some buyers. California agent Tracey Hampson once showed a home where a fatal drug overdose had occurred in the master bedroom. “On average, once the buyers found out there had been a death on the property, two out of five buyers that were interested suddenly said, ‘Thanks, but no thanks.’”
There’s even a name for a home someone died in: stigmatized. “It refers to a home that has been the site of a murder, suicide, or paranormal activity or haunting,” says Michigan agent Kelly Jo Choate. But even if your state doesn’t have a death disclosure requirement, certainly if someone asks, you should fess up. It’s the right thing to do.
Besides the obvious factors, there are some quirky elements that can affect your home’s value. Find out what they are.
Surprise! You might know more about real estate than you think. For example, you know that square footage, number of bedrooms and bathrooms, lot size, and location determine home value: A 4,000-square-foot, five-bed, five-bath beachfront home for sale in Miami, FL, will almost always be worth more than a 2,000-square-foot, two-bed, two-bath home on a quarter-acre lot 20 miles inland.
But those obvious factors aren’t everything you need to calculate your home’s property value estimate. Other, less obvious features can negatively or positively come into play — features you might not have considered. Here are eight frequently overlooked (and not always fixable) things that, for better or for worse, can impact the value of your home.
1. The name of your street (really!)
People typically prefer the street they live on to have a name versus a number. It’s true nationwide (with the exceptions of New York, NY, and Atlanta, GA, where there is no difference, and Denver, CO, where numbers are favored). According to a study by Trulia, “street” is the least expensive address suffix by price per square foot, and “boulevard” is the most expensive.
2. Your house number
Ever heard of house numerology? This is the practice of assigning a single-digit number to your home based on its address. Let’s say your address is 1219 Main St. Add 1 + 2 + 1 + 9 to get 13. Then add 1 + 3. Your house would be 4: good for investments and security but bad for adventure and excitement. While this type of house numerology may be passed off as a superstition, buyers who subscribe to this theory may overlook potential homes because of their numerology calculations. However, whether or not you’re into numerology, house numbers do matter. If your address is 13 (a universally unlucky number), you might choose to price your home slightly less than your neighbor at number 12 did.
3. Sketchy neighbors
The closer you live to your neighbor, the more important it will be for your tastes, habits, and personalities to jibe with theirs. “In a condo, the last thing a potential buyer wants is to purchase a unit where the neighbors above are noisy or inconsiderate,” says Thomas Miller, who specializes in Washington, DC, real estate. Owners of single-family homes can thank fastidious neighbors with good taste to increase the values of all nearby homes. But, of course, the opposite is also true: “I know a homeowner who had great difficulty selling their home because their next-door neighbors constructed a giant memorial dedicated to Michael Jackson on the front lawn,” says Miller. The next time you want to complain about your homeowners’ association, picture that image.
4. Mature trees
Tree-huggers and environmentalists unite! It’s common practice for developers to cut down most of (or all!) the trees on a property to build homes. But mature trees almost always enhance property values. Still don’t believe it? Check out the National Tree Benefit Calculator to see the full benefits of planting specific types of trees. If you have the space, make a trip to your local nursery to discuss the best tree options for your home.
5. Crown moldings
If you’ve worked hard to select just the right neutral and serene paint color scheme that will probably attract the most buyers, you’re doing yourself a disservice if you neglect one important element: crown moldings. “People love crown moldings,” says Alexander Boriskin, a New York, NY, agent. “Of course, everyone loves high ceilings too,” he says. Although you can’t do anything about how high your ceilings are, you can put in crown moldings — even with lower ceilings. Just make sure they work with the scale of the room, and don’t veer too far into the trend zone.
6. Yankees paraphernalia
Yankees fans, relax. We’re not picking on just you. Although this anecdote from New Jersey real estate agent Kevin Lawton happens to be about the New York baseball team, you could insert any team here. “Everything in the home was Yankees,” he says. “[The sellers] even had carpeting in the family room that had baseballs on it.” The verdict? Many people were turned off, especially Red Sox fans. If you don’t want to alienate a potential buyer, you might want to stash the fan gear away while your home is on the market.
7. Starbucks
And Trader Joe’s and Whole Foods. If you have any of those establishments close by, typically within a mile, up goes your property’s value. “Homes near Trader Joe’s have increased in value by an average of 40% since purchased,” says Chris Leavitt, a South Florida and New York, NY, agent and past star of the TV series Million Dollar Listing Miami. “Nearby Starbucks and Whole Foods Markets also enjoyed double-digit gains on home value.”
8. A death on the property
In some states, such as California, sellers must disclose whether there was a death on the property, which can be a deal breaker for some buyers. California agent Tracey Hampson once showed a home where a fatal drug overdose had occurred in the master bedroom. “On average, once the buyers found out there had been a death on the property, two out of five buyers that were interested suddenly said, ‘Thanks, but no thanks.’”
There’s even a name for a home someone died in: stigmatized. “It refers to a home that has been the site of a murder, suicide, or paranormal activity or haunting,” says Michigan agent Kelly Jo Choate. But even if your state doesn’t have a death disclosure requirement, certainly if someone asks, you should fess up. It’s the right thing to do.
Can You Buy With Cash And Then Get A Mortgage?
interesting article from Trulia.com on how to buy cash in a competitive market...
Take a cue from creative buyers who flip the traditional home financing process by generating enough cash to purchase their home — and then going to a lender for a mortgage. Here’s how they do it.
In competitive markets, cash is king. But coming up with the full purchase price of a home for sale in Baltimore, MD, or anywhere else isn’t easy to do. That’s why some buyers are turning to a unique solution to better compete when multiple offers are on the table: paying with cash now, then getting a mortgage later. Sound complicated? It is. Here’s how it works and what you should consider.
Why cash is still king in competitive real estate markets
Here’s the strategy: Buyers liquidate their assets, amass enough cash to purchase the home outright, and then put in an offer as an all-cash buyer. For sellers, all-cash offers are more attractive than ones from buyers who need to finance the purchase. Cash deals mean fewer contingencies — mainly, the sale of the home is contingent upon the buyer getting the mortgage, and there’s no guarantee that will happen. For instance, the sale could fall through if something goes wrong during the underwriting process. The sale is also contingent upon a home inspection and appraisal if the buyer finances the purchase, and again, a number of issues could come up that may make your lender (and you) pause. Plus, all-cash deals tend to close more quickly and with fewer overall complications than a sale that depends on financing.
A new buying strategy: cash first, mortgage later
Buyers are using the cash first, mortgage later strategy to circumvent these contingencies. They still finance their home with a mortgage, but they delay that process until after the sale is final. “With prior proper planning, a buyer could conceivably offer a 24-hour closing,” says Dennis Crowley, principal of Vitruvius Capital Consultants. Before opening his own firm, Crowley served as a private banker and helped buyers use this strategy to purchase homes.
There are downsides, however, to this tactic. “You’re using marketable securities as collateral,” Crowley warns. “This means that the buyer and lender have agreed that the collateral is worth a certain amount, and that amount can change without notice.”
What to consider before liquidating your assets
This buying strategy isn’t right for everyone. “Use the same wisdom you’d apply to any other purchase,” Crowley advises. “Make decisions with facts and not emotions and understand your options thoroughly.” Instead of liquidating your assets and putting a lot of pressure on yourself to purchase a home, consider a new timeline for your homeownership goal — perhaps set a goal to buy in five years instead. By then, you’ll have saved up more cash and may not need to liquidate existing investments. Second, the real estate market could change during that time — making these extreme measures unnecessary.
But if you do your research and determine cash first, mortgage later is something you want to do, you need to know how it actually works. After all, not many buyers are trying the strategy, simply because they don’t know it’s an option.
How to buy with cash first and get your mortgage later
Some buyers take money out of their retirement savings. Others liquidate other investment accounts and various assets like other property or use cash savings. Buyers also turn to (generous) relatives to help gather the amount needed to cover the purchase price. Once you have enough cash, you purchase the home (woohoo!). Then you get a mortgage, using that loan amount to refill the accounts you depleted and pay back anyone who helped you gather the cash you needed to buy.
Of course, you need to be careful when dipping into retirement savings, like 401(k) and IRA accounts — it’s not always a wise move. You’ll be penalized for withdrawing funds before retirement age, so include those fees in the total cost of your mortgage if you want to fully pay back those accounts. And an important note: Crowley points out that trying to use your existing assets this way is not for people who want to borrow money they don’t have. The cash first, mortgage later option is intended for people who want to employ capital that they already have in the most efficient way, he says.
More factors to consider
Remember to evaluate your situation (and your assets) to determine whether buying this way is even an option. “A buyer with roughly 150% of their proposed purchase price in marketable securities brings these options into play,” Crowley says. “Failing that, a buyer who has at least 200% of a required down payment might consider these.”
An understanding of marketable securities is a prerequisite for this buying strategy. Crowley recommends finding the right lender too. Most mass-market lenders won’t be able to support the level of complexity required to help with the process from start to finish. “Most major brokerage firms offer these options. Some smaller firms do as well,” Crowley says. “Even some independent financial planners have access to such channels.”
The bottom line? Liquidating your assets to purchase a home with cash and delaying financing by taking out a mortgage after you buy is an interesting strategy — but not one that’s right for everyone. It can help keep your offer competitive when you’re trying to purchase a home, but you shouldn’t just liquidate all your assets to become a cash buyer. Use money you already have as leverage, and don’t try this strategy simply because you don’t currently have enough cash to put money down on a home or to buy a home outright.
Take a cue from creative buyers who flip the traditional home financing process by generating enough cash to purchase their home — and then going to a lender for a mortgage. Here’s how they do it.
In competitive markets, cash is king. But coming up with the full purchase price of a home for sale in Baltimore, MD, or anywhere else isn’t easy to do. That’s why some buyers are turning to a unique solution to better compete when multiple offers are on the table: paying with cash now, then getting a mortgage later. Sound complicated? It is. Here’s how it works and what you should consider.
Why cash is still king in competitive real estate markets
Here’s the strategy: Buyers liquidate their assets, amass enough cash to purchase the home outright, and then put in an offer as an all-cash buyer. For sellers, all-cash offers are more attractive than ones from buyers who need to finance the purchase. Cash deals mean fewer contingencies — mainly, the sale of the home is contingent upon the buyer getting the mortgage, and there’s no guarantee that will happen. For instance, the sale could fall through if something goes wrong during the underwriting process. The sale is also contingent upon a home inspection and appraisal if the buyer finances the purchase, and again, a number of issues could come up that may make your lender (and you) pause. Plus, all-cash deals tend to close more quickly and with fewer overall complications than a sale that depends on financing.
A new buying strategy: cash first, mortgage later
Buyers are using the cash first, mortgage later strategy to circumvent these contingencies. They still finance their home with a mortgage, but they delay that process until after the sale is final. “With prior proper planning, a buyer could conceivably offer a 24-hour closing,” says Dennis Crowley, principal of Vitruvius Capital Consultants. Before opening his own firm, Crowley served as a private banker and helped buyers use this strategy to purchase homes.
There are downsides, however, to this tactic. “You’re using marketable securities as collateral,” Crowley warns. “This means that the buyer and lender have agreed that the collateral is worth a certain amount, and that amount can change without notice.”
What to consider before liquidating your assets
This buying strategy isn’t right for everyone. “Use the same wisdom you’d apply to any other purchase,” Crowley advises. “Make decisions with facts and not emotions and understand your options thoroughly.” Instead of liquidating your assets and putting a lot of pressure on yourself to purchase a home, consider a new timeline for your homeownership goal — perhaps set a goal to buy in five years instead. By then, you’ll have saved up more cash and may not need to liquidate existing investments. Second, the real estate market could change during that time — making these extreme measures unnecessary.
But if you do your research and determine cash first, mortgage later is something you want to do, you need to know how it actually works. After all, not many buyers are trying the strategy, simply because they don’t know it’s an option.
How to buy with cash first and get your mortgage later
Some buyers take money out of their retirement savings. Others liquidate other investment accounts and various assets like other property or use cash savings. Buyers also turn to (generous) relatives to help gather the amount needed to cover the purchase price. Once you have enough cash, you purchase the home (woohoo!). Then you get a mortgage, using that loan amount to refill the accounts you depleted and pay back anyone who helped you gather the cash you needed to buy.
Of course, you need to be careful when dipping into retirement savings, like 401(k) and IRA accounts — it’s not always a wise move. You’ll be penalized for withdrawing funds before retirement age, so include those fees in the total cost of your mortgage if you want to fully pay back those accounts. And an important note: Crowley points out that trying to use your existing assets this way is not for people who want to borrow money they don’t have. The cash first, mortgage later option is intended for people who want to employ capital that they already have in the most efficient way, he says.
More factors to consider
Remember to evaluate your situation (and your assets) to determine whether buying this way is even an option. “A buyer with roughly 150% of their proposed purchase price in marketable securities brings these options into play,” Crowley says. “Failing that, a buyer who has at least 200% of a required down payment might consider these.”
An understanding of marketable securities is a prerequisite for this buying strategy. Crowley recommends finding the right lender too. Most mass-market lenders won’t be able to support the level of complexity required to help with the process from start to finish. “Most major brokerage firms offer these options. Some smaller firms do as well,” Crowley says. “Even some independent financial planners have access to such channels.”
The bottom line? Liquidating your assets to purchase a home with cash and delaying financing by taking out a mortgage after you buy is an interesting strategy — but not one that’s right for everyone. It can help keep your offer competitive when you’re trying to purchase a home, but you shouldn’t just liquidate all your assets to become a cash buyer. Use money you already have as leverage, and don’t try this strategy simply because you don’t currently have enough cash to put money down on a home or to buy a home outright.
Eighty Nine Percent of Investors Want to Invest in Real Estate
from rismedia.com
Could real estate be the hottest trend in investing? While the concept itself isn’t new, confidence and intrigue in this investment strategy are high according to recent findings from a national survey of U.S. investors by Better Homes and Gardens® Real Estate, which found 89 percent of U.S. investors surveyed are interested in incorporating real estate into their investment strategies. The results also revealed that 80 percent of U.S. investors surveyed believe a real estate portfolio is one of the best financial legacies they could leave for their family, so what could this mean for the real estate industry?
Real Estate Investors of Today and Tomorrow
Nearly all (96%) of U.S. investors surveyed who have invested in real estate believe their decision has helped them achieve some form of financial success:
52% greater overall financial stability
51% greater long-term net worth
45% greater monthly cash flow
94% percent of those who have invested in real estate are interested in making a future investment of this kind
84% who have invested in real estate indicated that they willmake another real estate investment
2 in 5 planning to do so in less than a year
80% of investors surveyed who have never previously invested in real estate expressed an interest in making this financial commitment:
96% of Millennial investors are interested in making a real estate investment, showing greater interest than their Boomer counterparts (83%).
Millennials are more drawn to personal real estate investments (79%) than commercial (49%).
Family Motivations behind Real Estate Investment
Despite capturing the public’s fascination through reality TV, only a small portion of respondents (29%) view property flipping as a beneficial real estate investment. Rather, research revealed that family is a driving motivation behind real estate investments.
79% of investor respondents feel it is important to invest in a property that they could use for themselves or a family member at some point.
83% of parents who invest would consider buying a property for or with their child or grandchild to:
Co-manage and profit from together (40%)
Manage and profit from it themselves (39%)
Have their children or grandchildren live in the home during college (35%)
Fund college tuition in the future (35%)
Investing More than Money
Unlike many other investments that can be made with the click of a button, real estate investments are often complex and require careful consideration. In fact, 89 percent of investors who have made a real estate investment in the last five years feel it is important for a real estate investment property to be geographically close, so that they could either manage or use it themselves.
For non-investors, this commitment can be a deterrent. Eighty-nine percent of non-real estate investors surveyed who cited concerns about jumping in on an investment property, the top reason was that they don’t know enough about investing in real estate (42 percent), followed by it requires too much time (41 percent), demands too much starting capital (35 percent) and that it is “risky” (28 percent). There is a clear need for real estate professionals and their insights – 30 percent would be more likely to invest if they had access to a real estate investment professional for advice, or resources to explain how to get started.
This need translates into a set of expectations. Approximately 53 percent of respondents expect a real estate agent to advise on managing the investment, as well as provide guidance on terms (49 percent) and down payment advice (47 percent).
“To see consumer confidence of this magnitude is very promising,” says Sherry Chris, President and CEO, Better Homes and Gardens Real Estate. “Through this research, we’ve discovered that a majority of investors, including Millennials, Gen Xers and Baby Boomers, believe real estate is the best way to diversify an investment portfolio. What’s fascinating is that even when it comes to real estate investments, for many, there are still emotional drivers that accompany this type of transaction. Consumers are starting to look forward and see real estate as a viable investment strategy, and as an industry, we need to help educate and guide these individuals on the right path to achieve this goal.
“The aspiration to invest in real estate is there, yet it is up to real estate professionals to explain the fundamentals and help to serve as strategic sources throughout the process. Our hope is that this research empowers our industry to provide the resources and develop the necessary information to accelerate this opportunity for both current and future real estate investors.”
Could real estate be the hottest trend in investing? While the concept itself isn’t new, confidence and intrigue in this investment strategy are high according to recent findings from a national survey of U.S. investors by Better Homes and Gardens® Real Estate, which found 89 percent of U.S. investors surveyed are interested in incorporating real estate into their investment strategies. The results also revealed that 80 percent of U.S. investors surveyed believe a real estate portfolio is one of the best financial legacies they could leave for their family, so what could this mean for the real estate industry?
Real Estate Investors of Today and Tomorrow
Nearly all (96%) of U.S. investors surveyed who have invested in real estate believe their decision has helped them achieve some form of financial success:
52% greater overall financial stability
51% greater long-term net worth
45% greater monthly cash flow
94% percent of those who have invested in real estate are interested in making a future investment of this kind
84% who have invested in real estate indicated that they willmake another real estate investment
2 in 5 planning to do so in less than a year
80% of investors surveyed who have never previously invested in real estate expressed an interest in making this financial commitment:
96% of Millennial investors are interested in making a real estate investment, showing greater interest than their Boomer counterparts (83%).
Millennials are more drawn to personal real estate investments (79%) than commercial (49%).
Family Motivations behind Real Estate Investment
Despite capturing the public’s fascination through reality TV, only a small portion of respondents (29%) view property flipping as a beneficial real estate investment. Rather, research revealed that family is a driving motivation behind real estate investments.
79% of investor respondents feel it is important to invest in a property that they could use for themselves or a family member at some point.
83% of parents who invest would consider buying a property for or with their child or grandchild to:
Co-manage and profit from together (40%)
Manage and profit from it themselves (39%)
Have their children or grandchildren live in the home during college (35%)
Fund college tuition in the future (35%)
Investing More than Money
Unlike many other investments that can be made with the click of a button, real estate investments are often complex and require careful consideration. In fact, 89 percent of investors who have made a real estate investment in the last five years feel it is important for a real estate investment property to be geographically close, so that they could either manage or use it themselves.
For non-investors, this commitment can be a deterrent. Eighty-nine percent of non-real estate investors surveyed who cited concerns about jumping in on an investment property, the top reason was that they don’t know enough about investing in real estate (42 percent), followed by it requires too much time (41 percent), demands too much starting capital (35 percent) and that it is “risky” (28 percent). There is a clear need for real estate professionals and their insights – 30 percent would be more likely to invest if they had access to a real estate investment professional for advice, or resources to explain how to get started.
This need translates into a set of expectations. Approximately 53 percent of respondents expect a real estate agent to advise on managing the investment, as well as provide guidance on terms (49 percent) and down payment advice (47 percent).
“To see consumer confidence of this magnitude is very promising,” says Sherry Chris, President and CEO, Better Homes and Gardens Real Estate. “Through this research, we’ve discovered that a majority of investors, including Millennials, Gen Xers and Baby Boomers, believe real estate is the best way to diversify an investment portfolio. What’s fascinating is that even when it comes to real estate investments, for many, there are still emotional drivers that accompany this type of transaction. Consumers are starting to look forward and see real estate as a viable investment strategy, and as an industry, we need to help educate and guide these individuals on the right path to achieve this goal.
“The aspiration to invest in real estate is there, yet it is up to real estate professionals to explain the fundamentals and help to serve as strategic sources throughout the process. Our hope is that this research empowers our industry to provide the resources and develop the necessary information to accelerate this opportunity for both current and future real estate investors.”
A Nation United—and Divided—by Our Homes’ Architectural Styles
interesting trends in the US, architectural styles, and nationwide Median home prices by Architectural Style...from rismedia.com
2016 Median List Price of Architectural Styles vs 2012
It’s worth emphasizing now more than ever: Diversity is what the United States of America is all about. The country, of course, was cobbled together on this very idea—diversity of geography, beliefs, people. And even the homes they live in! We’ve got architectural styles rooted in the history of our nation before it was a nation (Colonial, Pueblo), a variety of imports (Spanish, French, Mediterranean) and lots of utterly contemporary styles.
So what is an American home, really? It might be easier to come up with a definitive answer to the question: What’s the ultimate American TV show or ’80s rock band? (For the record, “Breaking Bad,” and the Replacements, respectively). But just as with pop culture or food, there are some tastes that unite us and others that are regional preferences.
We thought it was the ideal time to dive deep into our own data to find the architectural home styles that best define our nation. We looked into realtor.com®’s listing descriptions to find out which types of homes are mentioned the most, where they are most popular, and whether their prices are going up or down as they fade in and out of vogue.
Here’s what we found: some seemingly ironclad regional preferences. Some changes. A few surprises. And one clear winner for the title of the American home.
Most regional architectural styles in the United States have their roots both in history and in the environment: They grew out of the types of building materials, such as stone, wood, or clay (for bricks), that were readily available during the early period of development, and the climates that these homes were constructed to withstand, says architect Mark Hogan of OpenScope Studio in San Francisco. They were also often reminiscent of popular styles in the regions where the builders and buyers hailed from—including European influences for Spanish, French, and Tuscan-style homes.
For those reasons, “when people were first settling the West Coast … it ended up looking very different than what was being built on the East Coast at the same time,” Hogan says. “They were very limited to what [materials] they could find nearby.”
And yet there is one style that has managed to conquer most of the nation. Drumroll, please. The most popular home style in 29 of the 50 states is….
The ranch home.
To housing experts, this is no surprise. Ranch houses can be built quickly and inexpensively and can be customized easily to suit the whims of buyers. Although the low-slung style is inspired by the Old West, it spread across the country with the rise of automobile culture in the 1960s. Able to accommodate one or two cars, the sprawling homes quickly populated the new suburbs.
“The ranch style signals a lifestyle change of that age. Front porches went away, and people are more into backyard living and protecting privacy,” says Tim Cannan, president of PreservationDirectory.com.
The second most popular architectural style is the “traditional,” a somewhat vague classification encompassing a variety of classic designs, defined by simple rooflines and symmetrical windows, along with the inclusion of formal living and dining rooms, a welcoming front porch, and often cozy fireplaces. Its popularity will come as no surprise to anyone who has visited the South, where it reigns supreme.
The maps above reflect a bit of American history as well. Colonial homes, unsurprisingly, remain popular in the Northeast, where British colonists originally settled. The rectangular or box-shaped homes typically have a decorative crown above the front door.
“They were easy to construct,” says Stephen Glasheen, architectural project manager at Polhemus Savery DaSilva, in East Harwich, Mass. “That’s why they’re so common on the East Coast. It’s where they started, and it has [continued] through the generations.”
Meanwhile, Victorians, most popular on the East Coast and into the Midwest, have a wealth of detail, with intricate moldings and ornate shapes carved into beams above, says Glasheen. The style originated when Queen Victoria ruled the British Empire, from the mid- to late 19th century.
“It has an iconic feel to it,” Glasheen says of the homes, best known for their signature pitched roofs, textured shingles, and long front porches. “It’s recognizable no matter where you are.”
Cape Cod homes, named for the strip of land defining Massachusetts Bay, where they first became popular, are plentiful as far west as the Mississippi River, but their presence remains strongest on their home turf of New England. And the prevalence of rustic cabins maps pretty well onto the locations of the Appalachian, Rocky, and Sierra Nevada mountain ranges.
At the state level—once you have filtered out all those ranch houses—some fascinating preferences emerged. Who knew that Illinois was so crazy about Georgian homes? Listings there cite the style more often than in any other state. (Come to think of it, one was featured in “Home Alone,” which took place in the Chicago suburbs.) Meanwhile, the Spanish style—another colonial legacy—rules in California, from average homes to its best-known state prison.
The architectural styles that’ll really cost you
In recent years, the Mediterranean or Tuscan style home has become the favorite among luxury builders. The median size of Mediterranean homes is 3,325 square feet—after all, it has to be big enough for breezes to flow freely through those open arches and verandas. Plus, you can’t have a Mediterranean home without an extravagant garden! Duh.
But in the past four years, the median price of a Mediterranean home stalled at $749,900. Could this love affair be growing stale? Meanwhile, the average home appreciated by 9 percent, and modern homes made the biggest gain since 2012, 37 percent.
“Modern homes are built to be more energy-efficient, and modern-looking,” says Cannan. “It’s easier to heat and cool them, and they’re cheaper to repair as opposed to Mediterranean or Spanish style—those red clay roofs could wind up costing much more. So it’s really the size and scope that determines what people can afford.”
The same case applies to Craftsman homes. You don’t just wander into the Home Depot and expect to find handmade doorknobs or hinges to go with your elaborately crafted home.
And at the other end of the price spectrum, affordable bungalows are looking good, as the lack of inventory drives up home prices nationwide. The median price of $134,000 represents a 28 percent increase since 2012.
“Bungalows typically have very large roof overhangs … which provides a whimsical aesthetic,” architect Glasheen says. They resonated with buyers because they were one of the first styles that allowed owners “to have their own unique style of home.”
Starter home, anyone?
2016 Median List Price of Architectural Styles vs 2012
It’s worth emphasizing now more than ever: Diversity is what the United States of America is all about. The country, of course, was cobbled together on this very idea—diversity of geography, beliefs, people. And even the homes they live in! We’ve got architectural styles rooted in the history of our nation before it was a nation (Colonial, Pueblo), a variety of imports (Spanish, French, Mediterranean) and lots of utterly contemporary styles.
So what is an American home, really? It might be easier to come up with a definitive answer to the question: What’s the ultimate American TV show or ’80s rock band? (For the record, “Breaking Bad,” and the Replacements, respectively). But just as with pop culture or food, there are some tastes that unite us and others that are regional preferences.
We thought it was the ideal time to dive deep into our own data to find the architectural home styles that best define our nation. We looked into realtor.com®’s listing descriptions to find out which types of homes are mentioned the most, where they are most popular, and whether their prices are going up or down as they fade in and out of vogue.
Here’s what we found: some seemingly ironclad regional preferences. Some changes. A few surprises. And one clear winner for the title of the American home.
Most regional architectural styles in the United States have their roots both in history and in the environment: They grew out of the types of building materials, such as stone, wood, or clay (for bricks), that were readily available during the early period of development, and the climates that these homes were constructed to withstand, says architect Mark Hogan of OpenScope Studio in San Francisco. They were also often reminiscent of popular styles in the regions where the builders and buyers hailed from—including European influences for Spanish, French, and Tuscan-style homes.
For those reasons, “when people were first settling the West Coast … it ended up looking very different than what was being built on the East Coast at the same time,” Hogan says. “They were very limited to what [materials] they could find nearby.”
And yet there is one style that has managed to conquer most of the nation. Drumroll, please. The most popular home style in 29 of the 50 states is….
The ranch home.
To housing experts, this is no surprise. Ranch houses can be built quickly and inexpensively and can be customized easily to suit the whims of buyers. Although the low-slung style is inspired by the Old West, it spread across the country with the rise of automobile culture in the 1960s. Able to accommodate one or two cars, the sprawling homes quickly populated the new suburbs.
“The ranch style signals a lifestyle change of that age. Front porches went away, and people are more into backyard living and protecting privacy,” says Tim Cannan, president of PreservationDirectory.com.
The second most popular architectural style is the “traditional,” a somewhat vague classification encompassing a variety of classic designs, defined by simple rooflines and symmetrical windows, along with the inclusion of formal living and dining rooms, a welcoming front porch, and often cozy fireplaces. Its popularity will come as no surprise to anyone who has visited the South, where it reigns supreme.
The maps above reflect a bit of American history as well. Colonial homes, unsurprisingly, remain popular in the Northeast, where British colonists originally settled. The rectangular or box-shaped homes typically have a decorative crown above the front door.
“They were easy to construct,” says Stephen Glasheen, architectural project manager at Polhemus Savery DaSilva, in East Harwich, Mass. “That’s why they’re so common on the East Coast. It’s where they started, and it has [continued] through the generations.”
Meanwhile, Victorians, most popular on the East Coast and into the Midwest, have a wealth of detail, with intricate moldings and ornate shapes carved into beams above, says Glasheen. The style originated when Queen Victoria ruled the British Empire, from the mid- to late 19th century.
“It has an iconic feel to it,” Glasheen says of the homes, best known for their signature pitched roofs, textured shingles, and long front porches. “It’s recognizable no matter where you are.”
Cape Cod homes, named for the strip of land defining Massachusetts Bay, where they first became popular, are plentiful as far west as the Mississippi River, but their presence remains strongest on their home turf of New England. And the prevalence of rustic cabins maps pretty well onto the locations of the Appalachian, Rocky, and Sierra Nevada mountain ranges.
At the state level—once you have filtered out all those ranch houses—some fascinating preferences emerged. Who knew that Illinois was so crazy about Georgian homes? Listings there cite the style more often than in any other state. (Come to think of it, one was featured in “Home Alone,” which took place in the Chicago suburbs.) Meanwhile, the Spanish style—another colonial legacy—rules in California, from average homes to its best-known state prison.
The architectural styles that’ll really cost you
In recent years, the Mediterranean or Tuscan style home has become the favorite among luxury builders. The median size of Mediterranean homes is 3,325 square feet—after all, it has to be big enough for breezes to flow freely through those open arches and verandas. Plus, you can’t have a Mediterranean home without an extravagant garden! Duh.
But in the past four years, the median price of a Mediterranean home stalled at $749,900. Could this love affair be growing stale? Meanwhile, the average home appreciated by 9 percent, and modern homes made the biggest gain since 2012, 37 percent.
“Modern homes are built to be more energy-efficient, and modern-looking,” says Cannan. “It’s easier to heat and cool them, and they’re cheaper to repair as opposed to Mediterranean or Spanish style—those red clay roofs could wind up costing much more. So it’s really the size and scope that determines what people can afford.”
The same case applies to Craftsman homes. You don’t just wander into the Home Depot and expect to find handmade doorknobs or hinges to go with your elaborately crafted home.
And at the other end of the price spectrum, affordable bungalows are looking good, as the lack of inventory drives up home prices nationwide. The median price of $134,000 represents a 28 percent increase since 2012.
“Bungalows typically have very large roof overhangs … which provides a whimsical aesthetic,” architect Glasheen says. They resonated with buyers because they were one of the first styles that allowed owners “to have their own unique style of home.”
Starter home, anyone?
Denver, Boulder, Fort Collins predicted to top nation for housing appreciation
positive article from bizwest.com
SANTA ANA, Calif. — Denver, Boulder and Fort Collins will top the nation in terms of residential price appreciation over the next 12 months. That’s according to a new forecast by Veros Real Estate Solutions, a Santa Ana, Calif.-based company that provides tools for property valuation.
Veros predicts that eight of the Top 10 markets for appreciation will be in Colorado, Washington, Idaho and Oregon. Denver is projected to record the highest appreciation in the country, at 10.8 percent, followed by Boulder at 10.5 percent and Fort Collins at 10.3 percent. Three months ago, Denver was projected to place fifth nationwide in appreciation.
Rounding out the top five are Seattle, 10.2 percent, and Boise City, Idaho, 9.7 percent.
“These sizzling markets are characterized by strong market fundamentals (low unemployment rates, growing populations, and month’s supply of homes around 2.0 months or less),” according to a Veros press release.
The predictions come from Veros’ most recent VeroForecast, a national real estate market forecast for the 12-month period ending Sept. 1, 2017.
“In markets with this level of national appreciation it is most common to see a broad distribution of markets contributing to the rise,” said Eric Fox, vice president of statistical and economic modeling at Veros. “What is remarkable from where we stand today is the possible concentration risk when home price appreciation and market activity become highly clustered in only a few regional areas.”
SANTA ANA, Calif. — Denver, Boulder and Fort Collins will top the nation in terms of residential price appreciation over the next 12 months. That’s according to a new forecast by Veros Real Estate Solutions, a Santa Ana, Calif.-based company that provides tools for property valuation.
Veros predicts that eight of the Top 10 markets for appreciation will be in Colorado, Washington, Idaho and Oregon. Denver is projected to record the highest appreciation in the country, at 10.8 percent, followed by Boulder at 10.5 percent and Fort Collins at 10.3 percent. Three months ago, Denver was projected to place fifth nationwide in appreciation.
Rounding out the top five are Seattle, 10.2 percent, and Boise City, Idaho, 9.7 percent.
“These sizzling markets are characterized by strong market fundamentals (low unemployment rates, growing populations, and month’s supply of homes around 2.0 months or less),” according to a Veros press release.
The predictions come from Veros’ most recent VeroForecast, a national real estate market forecast for the 12-month period ending Sept. 1, 2017.
“In markets with this level of national appreciation it is most common to see a broad distribution of markets contributing to the rise,” said Eric Fox, vice president of statistical and economic modeling at Veros. “What is remarkable from where we stand today is the possible concentration risk when home price appreciation and market activity become highly clustered in only a few regional areas.”
People are still moving to Colorado, but fewer than in 2014, tax returns show
interesting article from Denverpost.com
Colorado’s great migration wave looks like it has crested, according to tax return counts the Internal Revenue Service released Friday.
The IRS counted 76,123 Colorado tax returns filed last year by households who had filed under an address in another state or abroad in 2014. That was down from the 97,185 tax returns filed in 2014 by someone who had moved into the state after filing their 2013 return.
That represents 21,062 fewer inbound filing households, a decline of 22 percent. Even though the numbers are down, the tax return counts show the same states still dominate in supplying Colorado with the most new residents — California, Texas, Florida, Arizona, Illinois, New York and New Mexico.
Arizona and New Mexico were among the sending states with percentage drops larger than the 22 percent average decline, while New York only showed a 16 percent drop.
The migration slow down occurred in both directions. There were 56,653 tax returns filed outside the state in 2015 by households who had lived in Colorado when they filed in 2014. That was a 28 percent decline of 21,594 returns from the 78,247 returns filed by once-time Colorado households who showed out-of-state addresses on their 2014 returns.
Texas, California, Florida, Arizona and Washington remain the most popular states for those leaving Colorado. As was the case in 2014, Washington, Oregon, Idaho and Montana are the only four states winning the migration tug-of-war for Colorado households, drawing more than they sent out.
Even the number of households moving across county lines within the state showed a big 22 percent drop. Last year, 89,984 Colorado households who filed their taxes had listed an address in another Colorado county on the previous return. But in 2014, there were 115,258 households who had moved across county lines based on the address reported in 2013.
The one category that experienced an increase, about 5 percent, were the filers who stayed put over the course of the year. There were 1.93 million Colorado tax filers who had no change in address outside their county last year versus 1.85 million in 2014.
Back in 2014, 10.3 percent of Colorado tax returns in Colorado came from migrating households as defined by the IRS, the highest ratio of any state in the country. Last year, a smaller 7.9 percent of returns were made by migrating households.
Colorado’s great migration wave looks like it has crested, according to tax return counts the Internal Revenue Service released Friday.
The IRS counted 76,123 Colorado tax returns filed last year by households who had filed under an address in another state or abroad in 2014. That was down from the 97,185 tax returns filed in 2014 by someone who had moved into the state after filing their 2013 return.
That represents 21,062 fewer inbound filing households, a decline of 22 percent. Even though the numbers are down, the tax return counts show the same states still dominate in supplying Colorado with the most new residents — California, Texas, Florida, Arizona, Illinois, New York and New Mexico.
Arizona and New Mexico were among the sending states with percentage drops larger than the 22 percent average decline, while New York only showed a 16 percent drop.
The migration slow down occurred in both directions. There were 56,653 tax returns filed outside the state in 2015 by households who had lived in Colorado when they filed in 2014. That was a 28 percent decline of 21,594 returns from the 78,247 returns filed by once-time Colorado households who showed out-of-state addresses on their 2014 returns.
Texas, California, Florida, Arizona and Washington remain the most popular states for those leaving Colorado. As was the case in 2014, Washington, Oregon, Idaho and Montana are the only four states winning the migration tug-of-war for Colorado households, drawing more than they sent out.
Even the number of households moving across county lines within the state showed a big 22 percent drop. Last year, 89,984 Colorado households who filed their taxes had listed an address in another Colorado county on the previous return. But in 2014, there were 115,258 households who had moved across county lines based on the address reported in 2013.
The one category that experienced an increase, about 5 percent, were the filers who stayed put over the course of the year. There were 1.93 million Colorado tax filers who had no change in address outside their county last year versus 1.85 million in 2014.
Back in 2014, 10.3 percent of Colorado tax returns in Colorado came from migrating households as defined by the IRS, the highest ratio of any state in the country. Last year, a smaller 7.9 percent of returns were made by migrating households.
8 Ways to Get Your Home Offer Accepted
some good advice from trulia.com
Get out of the house-hunt rat race by crafting an offer that can’t be refused.
In a hot real estate market where you keep losing out to other buyers, you might fantasize about taking a hint from The Godfather and making the next seller an offer they can’t refuse. But since you live on the right side of the law (and don’t want your next residence to be the slammer), you need to play fair. The good news is that you can submit an offer on that Columbia, SC, home that seals the deal … without breaking anyone’s legs. Learn how to make an offer on a house that gets the job done with these eight tips.
1. Be preapproved before making the offer
Being preapproved shows the seller that you have your financial ducks in a row. Even better is to have your lender pre-underwrite your file, a more thorough process in which you provide all pertinent documents to your lender. Doing this puts you in the same league as all-cash buyers. “This will allow you to offer a shorter time to close because you have already cleared all of the financing hurdles, aside from appraisal, before you write the offer,” says Morgan Franklin, a Lexington, KY, agent.
2. Don’t lowball
If you haggle for produce at the farmers market, offering asking price (or above) right out of the gate might not be in your DNA. But attempting to negotiate on a house probably won’t help you get to the closing table in a hot market. “I would go in at listing price or higher if the comparables support a higher offer price,” says Tracey Hampson, a California agent.
3. Decrease your contingencies
Although you should go in with a strong offer, money isn’t everything, and it doesn’t always buy a seller’s happiness. If money’s been your only focus until now, change your game plan by waiving some contingencies. If you’re preapproved for a mortgage and have — or can get a hold of — some extra cash, you can waive the financing contingency, an agreement that lets you out of the deal if you can’t get financing. “This is a strategy for those who have extra cash or are using banks that do not require repairs,” says Mark Ferguson, a Colorado real estate agent and investor. But keep in mind, “If the appraisal comes in low, you must come up with the difference in cash.”
Another contingency to consider waiving is the home inspection. This is typically not recommended, however, as it removes your ability to ensure that the home is sound. “This should only be done by experienced homebuyers who know what they are doing,” says Ferguson. A safer approach is to shorten the inspection period. “Don’t ask for 14 to 30 days,” says Alex Cwiakala, a Massachusetts real estate agent and investor. “Call inspectors and have them ready to go in 24 to 48 hours.”
4. Add an escalation clause
If you think a seller will get more than one offer, you can help ensure yours will be the one picked by having your offer automatically increase by a predetermined amount. Note that “if the escalation clause is triggered, sellers generally have to disclose the competing offer to keep things honest,” says Anne Miesen, a Texas agent. Let’s say you offer $400,000 for a home with an escalation clause of $5,000 capping at $430,000. If someone else offers $410,000, your offer will automatically escalate to $415,000, beating that other offer. But if another offer comes in higher, such as $450,000, and your cap is $430,000, you would be out.
5. Offer to pay for closing costs or home warranties
Negotiations can include more than just the sale price of the home. There are costs involved with the closing process, and in a hot market, you can use those costs to your advantage by offering to pay them yourself. And here’s another option: “Don’t ask for a home warranty,” says Tracey Hampson. “That is, on average, a $500 savings to the seller. And who wouldn’t appreciate that?”
6. Write a personal letter to the sellers
Even if the sellers have a bidding war on their hands, it can still be difficult for them to part with the home they love, the home where they have made many happy memories. Sellers with an emotional attachment often want to know that the new owners will cherish the home as much as they did. “Many times, buyers can appeal to the sellers on a personal basis, acknowledging the care the owners have taken with the home and expressing their desire to continue along that same path,” says Marc Carver, an Atlanta, GA, agent. “I’ve seen this done via handwritten letters, video testimonials, and face-to-face interactions.”
7. Get creative
When trying to get your offer accepted, it can pay to be creative. “Are you an artist? Maybe paint a picture of the house and give it to the seller with your offer,” says Jake Goodson, a Portland, OR, broker. “Out-of-the-box stuff always hits home. But at the end of the day, your offer has to stack up financially too.”
8. Be willing to wait
When you get too invested in one particular home, you might overbid. Sometimes it’s best to step back and evaluate the situation. “There are thousands of homes; there is not a perfect one,” says Bruce Ailion, an Atlanta, GA, real estate agent and attorney. Plus, if you wait for all the excitement to die down, you might just get the house anyway. “Many high bidders back out during inspection. The lower bidders may get a second chance at a more appropriate price,” says Ailion.
Get out of the house-hunt rat race by crafting an offer that can’t be refused.
In a hot real estate market where you keep losing out to other buyers, you might fantasize about taking a hint from The Godfather and making the next seller an offer they can’t refuse. But since you live on the right side of the law (and don’t want your next residence to be the slammer), you need to play fair. The good news is that you can submit an offer on that Columbia, SC, home that seals the deal … without breaking anyone’s legs. Learn how to make an offer on a house that gets the job done with these eight tips.
1. Be preapproved before making the offer
Being preapproved shows the seller that you have your financial ducks in a row. Even better is to have your lender pre-underwrite your file, a more thorough process in which you provide all pertinent documents to your lender. Doing this puts you in the same league as all-cash buyers. “This will allow you to offer a shorter time to close because you have already cleared all of the financing hurdles, aside from appraisal, before you write the offer,” says Morgan Franklin, a Lexington, KY, agent.
2. Don’t lowball
If you haggle for produce at the farmers market, offering asking price (or above) right out of the gate might not be in your DNA. But attempting to negotiate on a house probably won’t help you get to the closing table in a hot market. “I would go in at listing price or higher if the comparables support a higher offer price,” says Tracey Hampson, a California agent.
3. Decrease your contingencies
Although you should go in with a strong offer, money isn’t everything, and it doesn’t always buy a seller’s happiness. If money’s been your only focus until now, change your game plan by waiving some contingencies. If you’re preapproved for a mortgage and have — or can get a hold of — some extra cash, you can waive the financing contingency, an agreement that lets you out of the deal if you can’t get financing. “This is a strategy for those who have extra cash or are using banks that do not require repairs,” says Mark Ferguson, a Colorado real estate agent and investor. But keep in mind, “If the appraisal comes in low, you must come up with the difference in cash.”
Another contingency to consider waiving is the home inspection. This is typically not recommended, however, as it removes your ability to ensure that the home is sound. “This should only be done by experienced homebuyers who know what they are doing,” says Ferguson. A safer approach is to shorten the inspection period. “Don’t ask for 14 to 30 days,” says Alex Cwiakala, a Massachusetts real estate agent and investor. “Call inspectors and have them ready to go in 24 to 48 hours.”
4. Add an escalation clause
If you think a seller will get more than one offer, you can help ensure yours will be the one picked by having your offer automatically increase by a predetermined amount. Note that “if the escalation clause is triggered, sellers generally have to disclose the competing offer to keep things honest,” says Anne Miesen, a Texas agent. Let’s say you offer $400,000 for a home with an escalation clause of $5,000 capping at $430,000. If someone else offers $410,000, your offer will automatically escalate to $415,000, beating that other offer. But if another offer comes in higher, such as $450,000, and your cap is $430,000, you would be out.
5. Offer to pay for closing costs or home warranties
Negotiations can include more than just the sale price of the home. There are costs involved with the closing process, and in a hot market, you can use those costs to your advantage by offering to pay them yourself. And here’s another option: “Don’t ask for a home warranty,” says Tracey Hampson. “That is, on average, a $500 savings to the seller. And who wouldn’t appreciate that?”
6. Write a personal letter to the sellers
Even if the sellers have a bidding war on their hands, it can still be difficult for them to part with the home they love, the home where they have made many happy memories. Sellers with an emotional attachment often want to know that the new owners will cherish the home as much as they did. “Many times, buyers can appeal to the sellers on a personal basis, acknowledging the care the owners have taken with the home and expressing their desire to continue along that same path,” says Marc Carver, an Atlanta, GA, agent. “I’ve seen this done via handwritten letters, video testimonials, and face-to-face interactions.”
7. Get creative
When trying to get your offer accepted, it can pay to be creative. “Are you an artist? Maybe paint a picture of the house and give it to the seller with your offer,” says Jake Goodson, a Portland, OR, broker. “Out-of-the-box stuff always hits home. But at the end of the day, your offer has to stack up financially too.”
8. Be willing to wait
When you get too invested in one particular home, you might overbid. Sometimes it’s best to step back and evaluate the situation. “There are thousands of homes; there is not a perfect one,” says Bruce Ailion, an Atlanta, GA, real estate agent and attorney. Plus, if you wait for all the excitement to die down, you might just get the house anyway. “Many high bidders back out during inspection. The lower bidders may get a second chance at a more appropriate price,” says Ailion.
Monday, September 26, 2016
3 Tips to Sell Your House in the Fall
good reminders from realtor.com...
Although the real estate business tends to slow down in the fall, the season still can be an attractive time to put a home on the market. If you want to sell your house in the next few months, it can be done.
Potential buyers—such as empty nesters or millennials who aren’t worried about moving after the school year has started—will compete for fewer homes on the market and will likely want to seal a deal before the holiday season kicks into high gear.
Here are three tips to help make your home more attractive in autumn, so you can sell your house before winter comes.
1. Clean Up
As many regions slowly shift from a sellers’ market to a moderate or buyers’ market, you’ll want to do everything you can to make your house look its best.
Pay particular attention to eliminating clutter and safety hazards that can crop up with cooler weather:
•Make sure your yard, walkways and gutters are free of leaves and debris.
•Mow your lawn so it looks neat.
•Trim trees so unexpected winds don’t knock down branches that could damage your home or hurt anybody.
•If it is rainy, be sure you have a good doormat so visitors can wipe their feet and not traipse mud and water through the house.
•If you already have snow, be sure stairs and walkways leading to your front door are not icy.
•Wash decks and wipe down windows so they sparkle instead of appear streaked by rain.
•Vacuum and wash down the fireplace, especially if it hasn’t been used in months.
•If you live in a region where it’s still warm enough to use the patio, make sure the area is inviting and arranged with the views from indoors in mind.
•Above all, make sure your doorway and the rest of the house is clear from knick knacks, bicycles and toys that make your home appear cluttered.
2. Create Autumn Curb Appeal
If your house’s exterior looks drab, you may want to consider painting it a warm color, planting seasonal flowers, or placing pumpkins strategically along your walkup to accent your home’s appeal with instant color.
Potential buyers will make an instant judgment when they see your home, and you want to be sure it’s positive.
While you don’t want to go overboard with fall decorations that detract from the home itself, a few displays like a festive front-door wreath—and lighting so people can clearly see the path to your front door—can make your home feel fresh, even in the fall.
3. Keep the House Cozy
Entering a cold house could leave an unfavorable impression. So warm up your home with a fresh coat of paint and set the thermostat at a comfortable temperature.
Another way to warm up a home is with light, especially as days get shorter leading into winter. Be sure to open blinds and curtains so plenty of light illuminates the home’s interior.
A few embellishments like red, orange or golden yellow pillows can breathe new life into dull sofa—or a fall centerpiece can highlight a certain area of the home.
While you don’t want your home to look like the latest department store display, well-chosen embellishments that give potential buyers the impression you’ve paid attention to the fine details and taken care of any problems with the home will help you put your best face forward.
And remember, there’s nothing wrong with trying to sweeten the deal with the comforting aroma of a freshly-baked, cinnamon-laced apple pie or pumpkin cupcake to leave a lasting impression of your home as the potential buyer takes a bite.
Although the real estate business tends to slow down in the fall, the season still can be an attractive time to put a home on the market. If you want to sell your house in the next few months, it can be done.
Potential buyers—such as empty nesters or millennials who aren’t worried about moving after the school year has started—will compete for fewer homes on the market and will likely want to seal a deal before the holiday season kicks into high gear.
Here are three tips to help make your home more attractive in autumn, so you can sell your house before winter comes.
1. Clean Up
As many regions slowly shift from a sellers’ market to a moderate or buyers’ market, you’ll want to do everything you can to make your house look its best.
Pay particular attention to eliminating clutter and safety hazards that can crop up with cooler weather:
•Make sure your yard, walkways and gutters are free of leaves and debris.
•Mow your lawn so it looks neat.
•Trim trees so unexpected winds don’t knock down branches that could damage your home or hurt anybody.
•If it is rainy, be sure you have a good doormat so visitors can wipe their feet and not traipse mud and water through the house.
•If you already have snow, be sure stairs and walkways leading to your front door are not icy.
•Wash decks and wipe down windows so they sparkle instead of appear streaked by rain.
•Vacuum and wash down the fireplace, especially if it hasn’t been used in months.
•If you live in a region where it’s still warm enough to use the patio, make sure the area is inviting and arranged with the views from indoors in mind.
•Above all, make sure your doorway and the rest of the house is clear from knick knacks, bicycles and toys that make your home appear cluttered.
2. Create Autumn Curb Appeal
If your house’s exterior looks drab, you may want to consider painting it a warm color, planting seasonal flowers, or placing pumpkins strategically along your walkup to accent your home’s appeal with instant color.
Potential buyers will make an instant judgment when they see your home, and you want to be sure it’s positive.
While you don’t want to go overboard with fall decorations that detract from the home itself, a few displays like a festive front-door wreath—and lighting so people can clearly see the path to your front door—can make your home feel fresh, even in the fall.
3. Keep the House Cozy
Entering a cold house could leave an unfavorable impression. So warm up your home with a fresh coat of paint and set the thermostat at a comfortable temperature.
Another way to warm up a home is with light, especially as days get shorter leading into winter. Be sure to open blinds and curtains so plenty of light illuminates the home’s interior.
A few embellishments like red, orange or golden yellow pillows can breathe new life into dull sofa—or a fall centerpiece can highlight a certain area of the home.
While you don’t want your home to look like the latest department store display, well-chosen embellishments that give potential buyers the impression you’ve paid attention to the fine details and taken care of any problems with the home will help you put your best face forward.
And remember, there’s nothing wrong with trying to sweeten the deal with the comforting aroma of a freshly-baked, cinnamon-laced apple pie or pumpkin cupcake to leave a lasting impression of your home as the potential buyer takes a bite.
Pros and Cons: Buying a Property for a College Student
another good meat and potatoes article from rismedia.com
There’s no way around it, supporting a college student can be very expensive. Food, books, and most importantly, housing — all add a hefty expense on top of tuition. That’s why the idea of purchasing a property for a college student can be a good investment strategy for families and an alternative to paying rent for four years. If you have clients with children going off to college, use this list to help them weigh the financial pros and cons of buying their college student an off-campus home.
Pros:
•Offers possible tax benefits, appreciation in value, rental income, etc. Educate your clients on the area and demographics of the town in which they’re considering a purchase, as well as the current property values and typical rent prices.
•Provides a stable living situation for their child and helps avoid rising rent prices and security deposits.
•Eliminates any need to pay storage costs for furniture during summer breaks. In addition, they can rent the property out during the summer to make money.
Cons:
Creates homeowner costs such as a mortgage, insurance, and repairs. Have your clients determine a budget and create a list of estimated costs.
•Unlikely to turn a profit or even recoup the costs of buying and selling the property after their student graduates (e.g., 3-5 years).
•Must be prepared for the typical “college renter” consequences, i.e., the occasional party trashing, heedless roommate damage, etc. College students don’t have the best reputation when it comes to taking care of properties. Make sure your clients are financially prepared to cover possible repairs.
•Inherent risk: their student could decide to transfer to a different school, or move back home. Make sure your clients have thought about what they would do if something like this happened.
There’s no way around it, supporting a college student can be very expensive. Food, books, and most importantly, housing — all add a hefty expense on top of tuition. That’s why the idea of purchasing a property for a college student can be a good investment strategy for families and an alternative to paying rent for four years. If you have clients with children going off to college, use this list to help them weigh the financial pros and cons of buying their college student an off-campus home.
Pros:
•Offers possible tax benefits, appreciation in value, rental income, etc. Educate your clients on the area and demographics of the town in which they’re considering a purchase, as well as the current property values and typical rent prices.
•Provides a stable living situation for their child and helps avoid rising rent prices and security deposits.
•Eliminates any need to pay storage costs for furniture during summer breaks. In addition, they can rent the property out during the summer to make money.
Cons:
Creates homeowner costs such as a mortgage, insurance, and repairs. Have your clients determine a budget and create a list of estimated costs.
•Unlikely to turn a profit or even recoup the costs of buying and selling the property after their student graduates (e.g., 3-5 years).
•Must be prepared for the typical “college renter” consequences, i.e., the occasional party trashing, heedless roommate damage, etc. College students don’t have the best reputation when it comes to taking care of properties. Make sure your clients are financially prepared to cover possible repairs.
•Inherent risk: their student could decide to transfer to a different school, or move back home. Make sure your clients have thought about what they would do if something like this happened.
Do You Know the Best State for Homeownership?
interesting article from RISMedia.com...
Owning a home is usually considered part of living the American Dream. But becoming a homeowner is neither easy nor affordable for everyone. Even if you manage to make the leap to homeownership, having a house of your own could seem burdensome if you’re stuck with high property taxes and insurance costs. Moreover, as a homeowner, many factors that affect the real estate market – including interest rates and the economy – are entirely out of your control.
SmartAsset wanted to rank the best states in America for homeowners. To complete our analysis, we considered nine different factors.
We ranked all 50 states based on factors including foreclosure rates, burglary rates and property tax rates. We also looked at the median listing price per square foot, the annual change in home prices (per square foot), home affordability and the annual cost of property taxes and homeowners insurance.
Key Findings
• Watch out for Wyoming. For the second year in a row, Wyoming ranks as the state with the best environment for homeownership.
• The cost of homeownership is high in the Northeast. Owning a home can be expensive in places like Massachusetts and New York. When you consider that states like New Jersey and Connecticut have double-digit foreclosure rates and high housing costs, buying a home in this region might seem like a risky move.
1. Wyoming
Thanks to its relatively low property tax rate and low average closing costs, many folks in the state of Wyoming can afford to own a home.
Wyomingites enjoy quite a few perks, including clean air and gorgeous views. And with an average burglary rate of 289.1 per 100,000 people, residents barely need to worry about someone breaking into their homes.
2. South Dakota
If you own a home, you generally want its value to increase over time. That way, you can build equity and hopefully sell your house one day for a nice chunk of change.
Home values in South Dakota are on the rise. In 2015, the home price per square foot went up by 7.5 percent. In our 2015 analysis, we saw the home price per square foot appreciate by 6.3 percent. Data from the U.S. Census Bureau shows that the median home value in the state is still only $142,300.
3. Idaho
Conditions for homeowners in Idaho have improved since last year. In 2015, home prices increased by 9.8 percent on a per-square-foot basis, making Idaho the state with the highest rate of price appreciation. In 2014, home prices per square foot only increased by 1.7 percent.
Homeowners in the Gem State might also be happy to know that foreclosure and burglary rates have declined since 2015 by 31.5 percent and 12.7 percent, respectively. Annually, property taxes and insurance cost just $1,777. That means homeowners in Idaho pay less than their counterparts in all but three states.
4. North Dakota
North Dakota has the lowest foreclosure rate in America. Data from RealtyTrac shows that as of May 2016, there was only one foreclosure for every 162,356 homes. While that’s certainly something to celebrate, falling oil prices could cause problems for the housing market in the state. We will watch the foreclosure rate to see how it is impacted, as well as North Dakota’s overall ranking in next year’s study.
5. Utah
If you’re looking for an affordable place to purchase a home, you might want to consider moving to Utah. On average, homeowners in Utah pay fewer closing costs than those in all but three U.S. states. The cost of homeowners insurance remains low as well and it hasn’t changed since we last conducted our study in 2015. Folks who own homes pay just $580, on average, each year to protect their property.
6. Colorado
In our latest study on the best housing markets for growth and stability, three Colorado metro areas ranked in the top 10. Based on the data we pulled for this analysis, we concluded that Colorado as a whole was a great place for people wanting to own homes. The state’s average effective property tax rate (0.58 percent) is among the lowest rates in the nation. Plus, it has the second highest rate of home price appreciation (per square foot).
7. Minnesota
Minnesota ranks as the seventh best state for homeowners in 2016. While it didn’t rank as well as it did in our 2015 study, it still ended up in the top 10. In 2015, the home price per square foot climbed by 6.6 percent and the average price of a home is now just over three times the median household income.
In addition to its relatively healthy housing market, the state of Minnesota has a relatively low unemployment rate of 6.5 percent, according to 2014 data from the U.S. Census.
8. Montana
Montana is one of the least-densely populated states in the country. Recent data from the Census Bureau says that there are only 6.8 people per square mile. If you prefer to have plenty of breathing room, living in Montana might not sound like such a bad idea.
According to RealtyTrac, the state’s foreclosure rate is fairly low (there’s one foreclosure for every 5,142 homes). What’s more, its average effective property tax rate is 0.84 percent. That means that tax rates for Montanans are on average lower than those for their neighbors in North Dakota and South Dakota.
9. Iowa
According to 2014 data from the U.S. Census Bureau, there are over 3 million
people living in the state of Iowa. With a median home value of $133,100, the average home in the Hawkeye State costs 2.5 times the median income.
Census Bureau data also reports that just 22.4 percent of homeowners with mortgage debt are cost burdened, meaning that they spend at least 30 percent of their household income on housing costs.
On a national level, 2015 data from the Joint Center for Housing Studies of Harvard University shows that over 25 percent of homeowners spent more than 30 percent of their income on housing-related expenses.
10. Virginia
In our ranking of the best states for homeowners, Virginia was the only state on the east coast to make it into the top 10 in both 2015 and 2016. The ratio of the state’s median home price to its median income (3.82) hasn’t changed since last year, but our analysis shows that its foreclosure rate and burglary rate have fallen.
Owning a home is usually considered part of living the American Dream. But becoming a homeowner is neither easy nor affordable for everyone. Even if you manage to make the leap to homeownership, having a house of your own could seem burdensome if you’re stuck with high property taxes and insurance costs. Moreover, as a homeowner, many factors that affect the real estate market – including interest rates and the economy – are entirely out of your control.
SmartAsset wanted to rank the best states in America for homeowners. To complete our analysis, we considered nine different factors.
We ranked all 50 states based on factors including foreclosure rates, burglary rates and property tax rates. We also looked at the median listing price per square foot, the annual change in home prices (per square foot), home affordability and the annual cost of property taxes and homeowners insurance.
Key Findings
• Watch out for Wyoming. For the second year in a row, Wyoming ranks as the state with the best environment for homeownership.
• The cost of homeownership is high in the Northeast. Owning a home can be expensive in places like Massachusetts and New York. When you consider that states like New Jersey and Connecticut have double-digit foreclosure rates and high housing costs, buying a home in this region might seem like a risky move.
1. Wyoming
Thanks to its relatively low property tax rate and low average closing costs, many folks in the state of Wyoming can afford to own a home.
Wyomingites enjoy quite a few perks, including clean air and gorgeous views. And with an average burglary rate of 289.1 per 100,000 people, residents barely need to worry about someone breaking into their homes.
2. South Dakota
If you own a home, you generally want its value to increase over time. That way, you can build equity and hopefully sell your house one day for a nice chunk of change.
Home values in South Dakota are on the rise. In 2015, the home price per square foot went up by 7.5 percent. In our 2015 analysis, we saw the home price per square foot appreciate by 6.3 percent. Data from the U.S. Census Bureau shows that the median home value in the state is still only $142,300.
3. Idaho
Conditions for homeowners in Idaho have improved since last year. In 2015, home prices increased by 9.8 percent on a per-square-foot basis, making Idaho the state with the highest rate of price appreciation. In 2014, home prices per square foot only increased by 1.7 percent.
Homeowners in the Gem State might also be happy to know that foreclosure and burglary rates have declined since 2015 by 31.5 percent and 12.7 percent, respectively. Annually, property taxes and insurance cost just $1,777. That means homeowners in Idaho pay less than their counterparts in all but three states.
4. North Dakota
North Dakota has the lowest foreclosure rate in America. Data from RealtyTrac shows that as of May 2016, there was only one foreclosure for every 162,356 homes. While that’s certainly something to celebrate, falling oil prices could cause problems for the housing market in the state. We will watch the foreclosure rate to see how it is impacted, as well as North Dakota’s overall ranking in next year’s study.
5. Utah
If you’re looking for an affordable place to purchase a home, you might want to consider moving to Utah. On average, homeowners in Utah pay fewer closing costs than those in all but three U.S. states. The cost of homeowners insurance remains low as well and it hasn’t changed since we last conducted our study in 2015. Folks who own homes pay just $580, on average, each year to protect their property.
6. Colorado
In our latest study on the best housing markets for growth and stability, three Colorado metro areas ranked in the top 10. Based on the data we pulled for this analysis, we concluded that Colorado as a whole was a great place for people wanting to own homes. The state’s average effective property tax rate (0.58 percent) is among the lowest rates in the nation. Plus, it has the second highest rate of home price appreciation (per square foot).
7. Minnesota
Minnesota ranks as the seventh best state for homeowners in 2016. While it didn’t rank as well as it did in our 2015 study, it still ended up in the top 10. In 2015, the home price per square foot climbed by 6.6 percent and the average price of a home is now just over three times the median household income.
In addition to its relatively healthy housing market, the state of Minnesota has a relatively low unemployment rate of 6.5 percent, according to 2014 data from the U.S. Census.
8. Montana
Montana is one of the least-densely populated states in the country. Recent data from the Census Bureau says that there are only 6.8 people per square mile. If you prefer to have plenty of breathing room, living in Montana might not sound like such a bad idea.
According to RealtyTrac, the state’s foreclosure rate is fairly low (there’s one foreclosure for every 5,142 homes). What’s more, its average effective property tax rate is 0.84 percent. That means that tax rates for Montanans are on average lower than those for their neighbors in North Dakota and South Dakota.
9. Iowa
According to 2014 data from the U.S. Census Bureau, there are over 3 million
people living in the state of Iowa. With a median home value of $133,100, the average home in the Hawkeye State costs 2.5 times the median income.
Census Bureau data also reports that just 22.4 percent of homeowners with mortgage debt are cost burdened, meaning that they spend at least 30 percent of their household income on housing costs.
On a national level, 2015 data from the Joint Center for Housing Studies of Harvard University shows that over 25 percent of homeowners spent more than 30 percent of their income on housing-related expenses.
10. Virginia
In our ranking of the best states for homeowners, Virginia was the only state on the east coast to make it into the top 10 in both 2015 and 2016. The ratio of the state’s median home price to its median income (3.82) hasn’t changed since last year, but our analysis shows that its foreclosure rate and burglary rate have fallen.
Subscribe to:
Posts (Atom)
Posts
