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.
Sunday, October 16, 2016
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.
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