Wednesday, November 22, 2017
Colorado Real Estate Trivia: What was the first permanent building built in Denver? (Answer Below)
The first permanent building built in Denver was a saloon, which continues to be fitting because Denver brews more beer on a daily basis than any city in the United States.
House That Straddles US/Canada Border-Live in 2 Countries at the same time
fun story from cbsnews.com
BEEBE PLAIN, Vt. -- Brian DeMoulin inherited a home 30 years ago and is reluctantly putting it on the market.
"Have a look at my stone house," he told CBS News. "There's the border post."
He also showed us what makes the residence so special.
"This is the stairway that leads to the Canadian apartments," DeMoulin said.
You heard him right. His house is literally in two places at once: Beebe Plain, Vermont, and Stanstead, Quebec, Canada.
The tape on the floor in the upstairs room indicates approximately where the border runs through it. Selling a home that straddles two countries is proving to be quite a challenge.
Realtor Rosemary Lalime spoke with CBS News. She said her ideal homeowner has dual citizenship.
"It makes it more difficult because I have to make sure they have the right customs papers to own the property," she said. "I've had calls from Lebanon, I've had calls from Cuba, L.A. Most of the people are interested in a restoration project."
The historic home was built in the early 1800s as a place to ease commerce between both countries. The nine-bedroom, five-bath estate is listed at $109,000 dollars.
There is one sticking point.
DeMoulin says one door in the residence has to absolutely stay bolted shut at all times.
"You step out that door and you're in Canada off the property and subject to be arrested," DeMoulin said.
Border patrol offices for both nations are right across the street. U.S. Customs and Border Patrol Agent Troy Rabideau spoke with CBS News.
"It's always something we need to be cognizant of who's coming in who's going out. We do a pretty good job of monitoring it," Rabideau said.
"I have a wonderful relationship with both sides," DeMoulin told us. "I feel equally U.S. and Canadian."
DeMoulin has dual citizenship, but that perk won't come along with the deed.
And there is no avoiding property taxes. Both the U.S. and Canada will come calling.
BEEBE PLAIN, Vt. -- Brian DeMoulin inherited a home 30 years ago and is reluctantly putting it on the market.
"Have a look at my stone house," he told CBS News. "There's the border post."
He also showed us what makes the residence so special.
"This is the stairway that leads to the Canadian apartments," DeMoulin said.
You heard him right. His house is literally in two places at once: Beebe Plain, Vermont, and Stanstead, Quebec, Canada.
The tape on the floor in the upstairs room indicates approximately where the border runs through it. Selling a home that straddles two countries is proving to be quite a challenge.
Realtor Rosemary Lalime spoke with CBS News. She said her ideal homeowner has dual citizenship.
"It makes it more difficult because I have to make sure they have the right customs papers to own the property," she said. "I've had calls from Lebanon, I've had calls from Cuba, L.A. Most of the people are interested in a restoration project."
The historic home was built in the early 1800s as a place to ease commerce between both countries. The nine-bedroom, five-bath estate is listed at $109,000 dollars.
There is one sticking point.
DeMoulin says one door in the residence has to absolutely stay bolted shut at all times.
"You step out that door and you're in Canada off the property and subject to be arrested," DeMoulin said.
Border patrol offices for both nations are right across the street. U.S. Customs and Border Patrol Agent Troy Rabideau spoke with CBS News.
"It's always something we need to be cognizant of who's coming in who's going out. We do a pretty good job of monitoring it," Rabideau said.
"I have a wonderful relationship with both sides," DeMoulin told us. "I feel equally U.S. and Canadian."
DeMoulin has dual citizenship, but that perk won't come along with the deed.
And there is no avoiding property taxes. Both the U.S. and Canada will come calling.
Should I Sell My Home Now or Wait Until the Spring?
considerations for timing the marketing of your home sale....
from RISMedia.com
There are many questions homeowners ask themselves during the selling process. "How much will my home sell for?" "How much should I list my home for?" "Who should I select as a real estate agent to sell my home?" "What if the real estate agent overprices my home?" Last but not least, "Is this a good time to be selling a home?" is also a very common question that real estate agents are asked.
As with every decision in life, there are pros and cons, and choosing when to sell a home is no different. There are many factors that need to be taken into consideration before deciding when to sell a home. Many homeowners believe selling a home during the fall or winter months is not a good idea and that the spring is the only time a house should be sold. This is the furthest from the truth. Certainly most real estate markets across the United States experience a "spring market rush" every year. There is no doubt that the "spring market" is a great time to be selling and buying real estate, however, the fall and winter seasons may be the best fit for you for many reasons.
Here are several reasons why choosing to sell your home now may be a better decision than waiting until the spring:
Less Competition
One way that you can tell the spring real estate market has arrived is by driving down a street in your local community. In all likelihood there will be For Sale signs up all over the neighborhood! One great reason to sell your home now and not wait until the spring market is there is sure to be less competition. The fewer number of comparable homes for sale, the greater the probability that a buyer will look at your home.
Simply put, it’s the supply and demand theory. If there are less homes for sale, there are less homes that a potential buyer can choose from, therefore increasing the demand for your home. Not only will less competition increase the probability for showings, but it will also increase the probability that an offer will be received and you will get the maximum amount of money for your home.
Serious Buyers Are Out There
Homes are sold and bought 365 days a year, period! Many homeowners believe that buyers aren't out there during the fall and winter months. This simply is not the case. Serious buyers are always out there! Some buyers may stop their home search because it is the fall or winter, but serious buyers will continue to look at homes, no matter what time of year it is.
The fall and winter months are also a great time for a potential buyer to see what a specific neighborhood is like. Do your neighbors have pumpkins on their front step? Are there lots of Trick-or-Treaters wandering the neighborhood on Halloween? Do any of your neighbors have any light displays for the holidays? There are buyers out there who will look at these types of things when determining whether your home is in the right neighborhood for them or not.
The Best Agents Are Always Up To The Challenge
Any real estate agent who tells you that the fall or winter months are a bad time to sell is not someone you want selling your home! A great real estate agent will know how to adapt to the current season and market their listings to reflect that. A great real estate agent can make suggestions and give some of their tips on how to sell a home during the fall or winter seasons. If a real estate agent doesn't have any suggestions on making your home more desirable for the current season, you should be concerned about the creativity they are going to use when marketing your home.
Staging For The Holiday Season
Many sellers believe staging a home is the main reason a home sells. While staging certainly helps sell homes, some buyers have a difficult time envisioning themselves in a home no matter what you do. However, there are some buyers who can easily be "sold" on a home because it is staged. Simple “seasonal” staging such as adjusting the color of the decor or having an aroma in the air that is relative to the time of year can go a long way with some potential buyers and possibly be the difference between a home selling or not.
Mortgage Rates Are Low
If you've read about real estate in the past year, it's likely you've read that the mortgage rates are very low. You also probably read that there is an expectation that the rates will increase very soon. Since mortgage rates are so low right now, buyers are able to afford more expensive homes. If mortgage rates increase over the fall and winter months while you're waiting for the spring market, it could cost you thousands of dollars as it could eliminate many buyers from the real estate marketplace! Less demand for your home will mean less money. Bottom line: take advantage of selling your home while the rates are this low.
Quicker Transactions
Right now, there are fewer real estate transactions than there will be in the spring. The fewer number of transactions means the mortgage lenders have less loans to process, attorneys have less closings to do, and home inspectors have fewer inspections to do. All of these factors should lead to a quicker transaction and closing for all the parties involved. One of the most frustrating things for a seller to deal with while selling their home is not getting answers in a reasonable amount of time. A quicker transaction is going to be less stress for you.
By considering all of the reasons above, you will be able to determine whether now is a good time to sell or if you should wait until the spring.
from RISMedia.com
There are many questions homeowners ask themselves during the selling process. "How much will my home sell for?" "How much should I list my home for?" "Who should I select as a real estate agent to sell my home?" "What if the real estate agent overprices my home?" Last but not least, "Is this a good time to be selling a home?" is also a very common question that real estate agents are asked.
As with every decision in life, there are pros and cons, and choosing when to sell a home is no different. There are many factors that need to be taken into consideration before deciding when to sell a home. Many homeowners believe selling a home during the fall or winter months is not a good idea and that the spring is the only time a house should be sold. This is the furthest from the truth. Certainly most real estate markets across the United States experience a "spring market rush" every year. There is no doubt that the "spring market" is a great time to be selling and buying real estate, however, the fall and winter seasons may be the best fit for you for many reasons.
Here are several reasons why choosing to sell your home now may be a better decision than waiting until the spring:
Less Competition
One way that you can tell the spring real estate market has arrived is by driving down a street in your local community. In all likelihood there will be For Sale signs up all over the neighborhood! One great reason to sell your home now and not wait until the spring market is there is sure to be less competition. The fewer number of comparable homes for sale, the greater the probability that a buyer will look at your home.
Simply put, it’s the supply and demand theory. If there are less homes for sale, there are less homes that a potential buyer can choose from, therefore increasing the demand for your home. Not only will less competition increase the probability for showings, but it will also increase the probability that an offer will be received and you will get the maximum amount of money for your home.
Serious Buyers Are Out There
Homes are sold and bought 365 days a year, period! Many homeowners believe that buyers aren't out there during the fall and winter months. This simply is not the case. Serious buyers are always out there! Some buyers may stop their home search because it is the fall or winter, but serious buyers will continue to look at homes, no matter what time of year it is.
The fall and winter months are also a great time for a potential buyer to see what a specific neighborhood is like. Do your neighbors have pumpkins on their front step? Are there lots of Trick-or-Treaters wandering the neighborhood on Halloween? Do any of your neighbors have any light displays for the holidays? There are buyers out there who will look at these types of things when determining whether your home is in the right neighborhood for them or not.
The Best Agents Are Always Up To The Challenge
Any real estate agent who tells you that the fall or winter months are a bad time to sell is not someone you want selling your home! A great real estate agent will know how to adapt to the current season and market their listings to reflect that. A great real estate agent can make suggestions and give some of their tips on how to sell a home during the fall or winter seasons. If a real estate agent doesn't have any suggestions on making your home more desirable for the current season, you should be concerned about the creativity they are going to use when marketing your home.
Staging For The Holiday Season
Many sellers believe staging a home is the main reason a home sells. While staging certainly helps sell homes, some buyers have a difficult time envisioning themselves in a home no matter what you do. However, there are some buyers who can easily be "sold" on a home because it is staged. Simple “seasonal” staging such as adjusting the color of the decor or having an aroma in the air that is relative to the time of year can go a long way with some potential buyers and possibly be the difference between a home selling or not.
Mortgage Rates Are Low
If you've read about real estate in the past year, it's likely you've read that the mortgage rates are very low. You also probably read that there is an expectation that the rates will increase very soon. Since mortgage rates are so low right now, buyers are able to afford more expensive homes. If mortgage rates increase over the fall and winter months while you're waiting for the spring market, it could cost you thousands of dollars as it could eliminate many buyers from the real estate marketplace! Less demand for your home will mean less money. Bottom line: take advantage of selling your home while the rates are this low.
Quicker Transactions
Right now, there are fewer real estate transactions than there will be in the spring. The fewer number of transactions means the mortgage lenders have less loans to process, attorneys have less closings to do, and home inspectors have fewer inspections to do. All of these factors should lead to a quicker transaction and closing for all the parties involved. One of the most frustrating things for a seller to deal with while selling their home is not getting answers in a reasonable amount of time. A quicker transaction is going to be less stress for you.
By considering all of the reasons above, you will be able to determine whether now is a good time to sell or if you should wait until the spring.
5 Surprisingly Smart Reasons to Buy a Home During the Holidays
some considerations on buying during the holidays...from realtor.com
5 Surprisingly Smart Reasons to Buy a Home During the Holidays
Turkeys and tinsel, dreidels and pumpkin pie. Yes friends, the holidays are here again, and it's the perfect time for ... house hunting? OK, we know you're busy enough planning family feasts and much-needed vacations while dealing with blustery weather, but hear us out. While it might seem counterintuitive to put a big-ticket item like a home on your holiday shopping list, it really does make sense.
Don't believe us? Check out these surprisingly smart reasons to let everyone else hit the mall to buy half-off sweaters while you make the purchase of a lifetime: a new house to ring in the New Year.
1. Less competition from home buyers
Most buyers take the month off to celebrate the holidays, attend parties, host out-of-town guests and, quite frankly, avoid trudging around in inclement weather to look at houses. Or, maybe they’ve heard that this is a lousy time to buy a house. Whatever the reason, shopping for real estate at a time when fewer buyers are in the market can pay off big.
That’s because competing with multiple offers is one of the most stressful parts of the home-buying process, says Brian Wasson, a real estate broker with Center Coast Realty in Chicago.
2. Motivated (OK, desperate) home sellers
The December seller is likely to be serious and motivated—and therefore more open to negotiation. So what you might lack in choice of available homes could be balanced out by dealing with a more flexible seller.
Most sellers have a compelling reason for putting their house on the market during the holidays. (Let’s face it: It’s no holiday party for them to have strangers wandering through their house.) They might be facing a relocation and want to get their kids settled before the new term. Or they might just be feeling some stress if they listed their home in the fall and it’s still languishing post–Turkey Day, making them just a little more desperate and anxious to deal.
Many sellers might also want a contract in hand for tax advantages. If it's a rental property on which they incurred a loss, they are likely to want to take the deduction this calendar year, Wasson says.
Another tax-related reason: If sellers are likely to make a hefty profit and have a salary raise set to kick in on Jan. 1, they might be subject to a higher capital gains tax on their home sale in the coming year. In this scenario, sellers may want to unload a property before the new year.
Sellers are exempt from paying capital gains tax on the first $250,000 in proceeds from a home sale for a single person, or $500,000 for a couple. After that, the capital gains tax kicks in, based on their income bracket.
3. Tax advantages
In case you weren't aware, the tax benefits go both ways, notes Realtor® Al Cannistra with Texas Premier Realty in San Antonio. Buying now can help you save in April and beyond. Homeownership brings numerous tax perks, from deducting mortgage interest to property taxes. (Update: The House of Representatives just passed its version of the GOP proposed tax plan, which would cap the property tax deduction at $10,000. The House bill also would only allow homeowners to deduct the interest on mortgages up to $500,000, down from the current $1 million.)
Some states also might have a homeowner’s tax exemption, says Cannistra: “If your state does, closing the deal by Dec. 31 rather than waiting for the first week of the new year can make a year’s difference in whether or not you get that valuable tax savings.”
Also, many closing fees are tax-deductible if you itemize—although you should always double-check with your accountant about any tax questions.
4. A realistic picture of the house
What house doesn’t look amazing in the typical spring buying season, with newly planted flowers and plenty of sunlight streaming through the windows? Checking it out during the miserable winter season, on the other hand, might give you a more accurate idea of what you might be living with the rest of the year.
In addition to seeing the house, warts and all, you can check for issues that you'd notice only during cold weather.
“Maybe there's a bedroom in the home that doesn't get sufficient heat, or the front door gets jammed in icy conditions," says Wasson. "Inspectors are less likely to catch these issues with the home when they check them out of season."
Of course, don’t forget that issues that crop up more during summer will be less accessible—such as how well the air conditioning works or what the roof really looks like under all that snow and ice—so make sure that your home inspector does a thorough job on those fronts, too.
5. Greater accessibility to professionals
“Since December is usually a slower month all around, you will have easier access to movers, inspectors, and mortgage brokers,” says Jennifer Sommers with Sotheby's International Realty in Boca Raton, FL.
In addition, motivated real estate agents will bend over backward to provide service with fewer client demands and will share your desire to get it done and in the books before the new year rolls around. Ditto on your mortgage broker, who is bound to speed your closing through.
5 Surprisingly Smart Reasons to Buy a Home During the Holidays
Turkeys and tinsel, dreidels and pumpkin pie. Yes friends, the holidays are here again, and it's the perfect time for ... house hunting? OK, we know you're busy enough planning family feasts and much-needed vacations while dealing with blustery weather, but hear us out. While it might seem counterintuitive to put a big-ticket item like a home on your holiday shopping list, it really does make sense.
Don't believe us? Check out these surprisingly smart reasons to let everyone else hit the mall to buy half-off sweaters while you make the purchase of a lifetime: a new house to ring in the New Year.
1. Less competition from home buyers
Most buyers take the month off to celebrate the holidays, attend parties, host out-of-town guests and, quite frankly, avoid trudging around in inclement weather to look at houses. Or, maybe they’ve heard that this is a lousy time to buy a house. Whatever the reason, shopping for real estate at a time when fewer buyers are in the market can pay off big.
That’s because competing with multiple offers is one of the most stressful parts of the home-buying process, says Brian Wasson, a real estate broker with Center Coast Realty in Chicago.
2. Motivated (OK, desperate) home sellers
The December seller is likely to be serious and motivated—and therefore more open to negotiation. So what you might lack in choice of available homes could be balanced out by dealing with a more flexible seller.
Most sellers have a compelling reason for putting their house on the market during the holidays. (Let’s face it: It’s no holiday party for them to have strangers wandering through their house.) They might be facing a relocation and want to get their kids settled before the new term. Or they might just be feeling some stress if they listed their home in the fall and it’s still languishing post–Turkey Day, making them just a little more desperate and anxious to deal.
Many sellers might also want a contract in hand for tax advantages. If it's a rental property on which they incurred a loss, they are likely to want to take the deduction this calendar year, Wasson says.
Another tax-related reason: If sellers are likely to make a hefty profit and have a salary raise set to kick in on Jan. 1, they might be subject to a higher capital gains tax on their home sale in the coming year. In this scenario, sellers may want to unload a property before the new year.
Sellers are exempt from paying capital gains tax on the first $250,000 in proceeds from a home sale for a single person, or $500,000 for a couple. After that, the capital gains tax kicks in, based on their income bracket.
3. Tax advantages
In case you weren't aware, the tax benefits go both ways, notes Realtor® Al Cannistra with Texas Premier Realty in San Antonio. Buying now can help you save in April and beyond. Homeownership brings numerous tax perks, from deducting mortgage interest to property taxes. (Update: The House of Representatives just passed its version of the GOP proposed tax plan, which would cap the property tax deduction at $10,000. The House bill also would only allow homeowners to deduct the interest on mortgages up to $500,000, down from the current $1 million.)
Some states also might have a homeowner’s tax exemption, says Cannistra: “If your state does, closing the deal by Dec. 31 rather than waiting for the first week of the new year can make a year’s difference in whether or not you get that valuable tax savings.”
Also, many closing fees are tax-deductible if you itemize—although you should always double-check with your accountant about any tax questions.
4. A realistic picture of the house
What house doesn’t look amazing in the typical spring buying season, with newly planted flowers and plenty of sunlight streaming through the windows? Checking it out during the miserable winter season, on the other hand, might give you a more accurate idea of what you might be living with the rest of the year.
In addition to seeing the house, warts and all, you can check for issues that you'd notice only during cold weather.
“Maybe there's a bedroom in the home that doesn't get sufficient heat, or the front door gets jammed in icy conditions," says Wasson. "Inspectors are less likely to catch these issues with the home when they check them out of season."
Of course, don’t forget that issues that crop up more during summer will be less accessible—such as how well the air conditioning works or what the roof really looks like under all that snow and ice—so make sure that your home inspector does a thorough job on those fronts, too.
5. Greater accessibility to professionals
“Since December is usually a slower month all around, you will have easier access to movers, inspectors, and mortgage brokers,” says Jennifer Sommers with Sotheby's International Realty in Boca Raton, FL.
In addition, motivated real estate agents will bend over backward to provide service with fewer client demands and will share your desire to get it done and in the books before the new year rolls around. Ditto on your mortgage broker, who is bound to speed your closing through.
Top 10 Tips for Selling Your Home During the Holidays
from hgtv.com....all things to take into consideration, of course each dependent upon your specific home sale situation...
Top 10 Tips for Selling Your Home During the Holidays
he 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.
Top 10 Tips for Selling Your Home During the Holidays
he 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.
How to Spot a Real Estate Bubble
general signs I'd agree with from Trulia.com, yet we're I'm not seeing as much happening for this area on points, 1,2,4, & 5...
Worried about the rise of a bubble? Watch out for these signs.
If you buy during a bubble, overpaying for your home, you might be forced to sell for less than the property is worth—either that or hunker down and stay put until you can build up enough equity to break even. So if you’re thinking of buying, it’s important to know the signs of a real estate bubble.
So, what is a bubble, exactly? “It’s when people aren’t basing their decisions on sound economic data,” explains Trulia’s Chief Economist, Ralph McLaughlin. “Instead, they’re acting because they get caught up in the excitement—or the panic—of the moment.” Here’s how it plays out: As more and more people frantically buy into a market with skyrocketing demand and prices, homebuyers stretch themselves too far financially. Then, when the bubble bursts and demand and prices plummet, you get foreclosures and faulty loans galore.
But don’t panic. McLaughlin says, “Though some markets are overheated at the moment, we don’t think any are in bubble territory. Prices are going up, but there’s a sound reason for it. Inventory is near historic lows and demand is solid—that’s a ripe environment for prices to increase. If the market were flooded with supply and prices still increased, that would be a sign we’re in a bubble. And that’s exactly what happened ten years ago.”
If you took a hit in the 2008 bursting of the housing bubble, you’re likely a little nervous about history repeating itself. Arm yourself with knowledge about signs that would indicate the real estate market is entering a bubble.
5 Signs of a Real Estate Bubble
1. Shaky loans become the norm.
Subprime lending—lending to anyone, regardless of how qualified they are—is considered one of the main culprits of the 2008 housing crash. As we learned from the vast number of foreclosures that followed, the bursting of a real estate bubble exposes the risks of approving buyers for loans they normally wouldn’t qualify for and ultimately cannot afford.
Sep Niakan, an agent with HB Roswell Realty in Miami, Florida, says a rise in this type of “creative lending” is one indicator of an impending bubble.
But Jason Reed, an agent for Remax Results in Minneapolis, Minn., points out that things are different this time around: “The loose-lending practices—like interest-only loans and ARMs—that fueled price increases and created artificial demand in the years before 2008 either no longer exist or are no longer popular.”
2. Homes are leveraged to the hilt.
When you take out a mortgage, you’re leveraging your money—the smaller your down payment, the more you’re leveraging the deal with a lender’s money. “And a bubble means lots of leverage,” says Jonathan Miller, president of Miller Samuel Inc., a New York City real estate appraisal company.
When buyers stretch themselves financially to buy into a hot market, they turn to financing with little to no money down. This can spell doom down the road, explains Niakan: “Once prices adjust downward, many homeowners are left with a home with zero or even negative equity.”
McLaughlin says he’s watching this closely: “If down payments decrease, my anxiety over the possibility of a bubble will increase.”
3. Living expenses rise faster than salaries.
One thing that gets people talking about a bubble is “a rapid run-up in prices that isn’t matched by wage growth,” says Miller. But he points out that as long as credit conditions from bank lenders are tight, there won’t be runaway price inflation.
According to Phillip Lang, COO of Triplemint, a New York brokerage firm, “fast-growing cities are the first place to look for the next bubble.” Right now, for example, Austin and Nashville are experiencing record growth in home prices, so keep an eye on the market in burgeoning cities like that.
4. Real estate investors and flippers are everywhere.
“When you see average people with little real estate experience suddenly becoming ‘real estate investors,’ that can be a sign that the end of the up cycle is near,” says Niakan. “The same goes when more people are buying to flip a place or lease it out than to live in it.”
This scenario played out during the 2008 crash—house investing and flipping became the norm, especially in the areas where housing prices were shooting up. In a report released by MIT Management Sloan School, finance professor Antoinette Schoar argues that these fix-and-flip homebuyers with high credit ratings and lots of leverage contributed to the crash just as much as the subprime lending we hear so much about.
5. Interest rates start to rise.
Low interest rates make mortgages more affordable for buyers and help keep demand high. For many would-be buyers, the interest rate is the deciding factor between continuing to rent and jumping into the local real estate market. For this reason, when interest rates rise, demand for housing tends to fall.
“If interest rates increase by 1 percent, all the houses will suddenly become much less affordable, and you’ll see lower demand and a sinking housing market,” says Juan Diaz, a Northern California real estate investor. This can spell the beginning of the end of a housing market boom.
Worried about the rise of a bubble? Watch out for these signs.
If you buy during a bubble, overpaying for your home, you might be forced to sell for less than the property is worth—either that or hunker down and stay put until you can build up enough equity to break even. So if you’re thinking of buying, it’s important to know the signs of a real estate bubble.
So, what is a bubble, exactly? “It’s when people aren’t basing their decisions on sound economic data,” explains Trulia’s Chief Economist, Ralph McLaughlin. “Instead, they’re acting because they get caught up in the excitement—or the panic—of the moment.” Here’s how it plays out: As more and more people frantically buy into a market with skyrocketing demand and prices, homebuyers stretch themselves too far financially. Then, when the bubble bursts and demand and prices plummet, you get foreclosures and faulty loans galore.
But don’t panic. McLaughlin says, “Though some markets are overheated at the moment, we don’t think any are in bubble territory. Prices are going up, but there’s a sound reason for it. Inventory is near historic lows and demand is solid—that’s a ripe environment for prices to increase. If the market were flooded with supply and prices still increased, that would be a sign we’re in a bubble. And that’s exactly what happened ten years ago.”
If you took a hit in the 2008 bursting of the housing bubble, you’re likely a little nervous about history repeating itself. Arm yourself with knowledge about signs that would indicate the real estate market is entering a bubble.
5 Signs of a Real Estate Bubble
1. Shaky loans become the norm.
Subprime lending—lending to anyone, regardless of how qualified they are—is considered one of the main culprits of the 2008 housing crash. As we learned from the vast number of foreclosures that followed, the bursting of a real estate bubble exposes the risks of approving buyers for loans they normally wouldn’t qualify for and ultimately cannot afford.
Sep Niakan, an agent with HB Roswell Realty in Miami, Florida, says a rise in this type of “creative lending” is one indicator of an impending bubble.
But Jason Reed, an agent for Remax Results in Minneapolis, Minn., points out that things are different this time around: “The loose-lending practices—like interest-only loans and ARMs—that fueled price increases and created artificial demand in the years before 2008 either no longer exist or are no longer popular.”
2. Homes are leveraged to the hilt.
When you take out a mortgage, you’re leveraging your money—the smaller your down payment, the more you’re leveraging the deal with a lender’s money. “And a bubble means lots of leverage,” says Jonathan Miller, president of Miller Samuel Inc., a New York City real estate appraisal company.
When buyers stretch themselves financially to buy into a hot market, they turn to financing with little to no money down. This can spell doom down the road, explains Niakan: “Once prices adjust downward, many homeowners are left with a home with zero or even negative equity.”
McLaughlin says he’s watching this closely: “If down payments decrease, my anxiety over the possibility of a bubble will increase.”
3. Living expenses rise faster than salaries.
One thing that gets people talking about a bubble is “a rapid run-up in prices that isn’t matched by wage growth,” says Miller. But he points out that as long as credit conditions from bank lenders are tight, there won’t be runaway price inflation.
According to Phillip Lang, COO of Triplemint, a New York brokerage firm, “fast-growing cities are the first place to look for the next bubble.” Right now, for example, Austin and Nashville are experiencing record growth in home prices, so keep an eye on the market in burgeoning cities like that.
4. Real estate investors and flippers are everywhere.
“When you see average people with little real estate experience suddenly becoming ‘real estate investors,’ that can be a sign that the end of the up cycle is near,” says Niakan. “The same goes when more people are buying to flip a place or lease it out than to live in it.”
This scenario played out during the 2008 crash—house investing and flipping became the norm, especially in the areas where housing prices were shooting up. In a report released by MIT Management Sloan School, finance professor Antoinette Schoar argues that these fix-and-flip homebuyers with high credit ratings and lots of leverage contributed to the crash just as much as the subprime lending we hear so much about.
5. Interest rates start to rise.
Low interest rates make mortgages more affordable for buyers and help keep demand high. For many would-be buyers, the interest rate is the deciding factor between continuing to rent and jumping into the local real estate market. For this reason, when interest rates rise, demand for housing tends to fall.
“If interest rates increase by 1 percent, all the houses will suddenly become much less affordable, and you’ll see lower demand and a sinking housing market,” says Juan Diaz, a Northern California real estate investor. This can spell the beginning of the end of a housing market boom.
Home Renovations That Can Hurt (and Help) Property Value
interesting considerations from rismedia.com
Home Renovations That Can Hurt (and Help) Property Value
If you’re into renovation projects, then updating and revamping your home can be a lot of fun. But before you get too excited about knocking down walls and setting up a custom movie room, you might want to consider resale value. Flashy renovations don’t always yield the best returns, so you’ll need to take care when picking projects.
To make things easier for you, here are four remodels to avoid and four to invest in.
Remodels to Avoid
Luxury Rooms
An indoor basketball court, wine cellar, sauna, or even a movie theater won’t often recoup the high building costs. Luxury add-on rooms are hard to pitch to buyers unless you’re living in an upscale housing market—the average homebuyer won’t be willing to pay for them. Further, rooms that depend heavily on wired electronics, like home theaters, are hard to keep current because TVs and speakers are constantly advancing.
Swimming Pool
The average cost to build a pool is $39,084, a hefty price tag that is seldom recovered once the home is sold. It’s widely accepted throughout the industry that a homeowner will lose money by adding a swimming pool. Homebuyers don’t want to deal with the maintenance cost of a pool (which can cost as much as $2,000 a year), the added insurance premiums, and—if they have young kids—the safety issues.
Gaudy Accents
Though gold-plated crown molding or mosaic-tile backsplashes may feature prominently in your ideal vision for your home, they often turn out to be the average homebuyer’s worst nightmare. Passing fads or niche trends rarely stick around long, so if you miss the brief window when your remodeling choices are in, you’ll end up paying for it later.
Changes Contrary to Area Standards
If you aren’t watching the trends common to your area, you could end up losing a lot of money. A home that totals $600,000 after all the renovations won’t sell in a neighborhood where homes are netting half that price. Likewise, knocking down the walls of extra bedrooms for an open layout won’t be appealing in a family-oriented neighborhood.
Remodels that Pay
Steel Doors
You don’t want to go cheap on a standard front door. At roughly $1,000, steel doors are comparatively affordable, durable, low maintenance and burglar resistant. As an added bonus, the National Association of Realtors® reports that steel door upgrades show the highest return on investment of any home remodel, at over 100 percent of the cost.
Solar Panels
As the price of solar panels continues to drop, the energy payback on installing them is becoming greater and greater. The average rooftop solar system is now paid off in seven and a half years. After that, panels are a big money-saving asset. A study by the Lawrence Berkeley National Laboratory notes that homebuyers “consistently have been willing to pay more for a property” with solar panels—a premium of around $4 per installed watt, on average.
New Siding
The exterior of your house is the first thing potential homebuyers see when they come to your home, and you want to make the best first impression. This is part of the reason redoing your siding is so profitable. New siding recoups around 80 percent of the initial cost, according to the National Association of Realtors®, thanks largely to the increased curb appeal and improved energy efficiency it provides.
Broadband Access
Access to broadband speeds is considered an essential utility for today’s connected homebuyer. Research shows that faster internet speeds increase your home value by as much as 3 percent. Homeowners can prepare their homes for higher broadband connectivity by working with area providers to install requisite equipment and wiring. Building out wall ports and cable-hiding baseboards is a good move to attract buyers, too.
Even if you’re not considering selling your home just yet, keep potential selling benefits in mind. Intrepid homeowners know that the best remodels will increase both quality of life and listing price, so take care to invest in projects that will net the biggest returns.
Home Renovations That Can Hurt (and Help) Property Value
If you’re into renovation projects, then updating and revamping your home can be a lot of fun. But before you get too excited about knocking down walls and setting up a custom movie room, you might want to consider resale value. Flashy renovations don’t always yield the best returns, so you’ll need to take care when picking projects.
To make things easier for you, here are four remodels to avoid and four to invest in.
Remodels to Avoid
Luxury Rooms
An indoor basketball court, wine cellar, sauna, or even a movie theater won’t often recoup the high building costs. Luxury add-on rooms are hard to pitch to buyers unless you’re living in an upscale housing market—the average homebuyer won’t be willing to pay for them. Further, rooms that depend heavily on wired electronics, like home theaters, are hard to keep current because TVs and speakers are constantly advancing.
Swimming Pool
The average cost to build a pool is $39,084, a hefty price tag that is seldom recovered once the home is sold. It’s widely accepted throughout the industry that a homeowner will lose money by adding a swimming pool. Homebuyers don’t want to deal with the maintenance cost of a pool (which can cost as much as $2,000 a year), the added insurance premiums, and—if they have young kids—the safety issues.
Gaudy Accents
Though gold-plated crown molding or mosaic-tile backsplashes may feature prominently in your ideal vision for your home, they often turn out to be the average homebuyer’s worst nightmare. Passing fads or niche trends rarely stick around long, so if you miss the brief window when your remodeling choices are in, you’ll end up paying for it later.
Changes Contrary to Area Standards
If you aren’t watching the trends common to your area, you could end up losing a lot of money. A home that totals $600,000 after all the renovations won’t sell in a neighborhood where homes are netting half that price. Likewise, knocking down the walls of extra bedrooms for an open layout won’t be appealing in a family-oriented neighborhood.
Remodels that Pay
Steel Doors
You don’t want to go cheap on a standard front door. At roughly $1,000, steel doors are comparatively affordable, durable, low maintenance and burglar resistant. As an added bonus, the National Association of Realtors® reports that steel door upgrades show the highest return on investment of any home remodel, at over 100 percent of the cost.
Solar Panels
As the price of solar panels continues to drop, the energy payback on installing them is becoming greater and greater. The average rooftop solar system is now paid off in seven and a half years. After that, panels are a big money-saving asset. A study by the Lawrence Berkeley National Laboratory notes that homebuyers “consistently have been willing to pay more for a property” with solar panels—a premium of around $4 per installed watt, on average.
New Siding
The exterior of your house is the first thing potential homebuyers see when they come to your home, and you want to make the best first impression. This is part of the reason redoing your siding is so profitable. New siding recoups around 80 percent of the initial cost, according to the National Association of Realtors®, thanks largely to the increased curb appeal and improved energy efficiency it provides.
Broadband Access
Access to broadband speeds is considered an essential utility for today’s connected homebuyer. Research shows that faster internet speeds increase your home value by as much as 3 percent. Homeowners can prepare their homes for higher broadband connectivity by working with area providers to install requisite equipment and wiring. Building out wall ports and cable-hiding baseboards is a good move to attract buyers, too.
Even if you’re not considering selling your home just yet, keep potential selling benefits in mind. Intrepid homeowners know that the best remodels will increase both quality of life and listing price, so take care to invest in projects that will net the biggest returns.
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