Provided By Trulia
Looking for a real estate agent to help you with your search for a new home? Trulia offers these tips for finding an agent who'll best suit your needs.
Get recommendations
Family and friends who've recently purchased a home can be great sources of referrals of quality real estate agents.
Folks you know can give you the scoop on what it's like to really work with a particular agent, e.g., how knowledgeable that agent is, how well that agent knows the community and its homes, and how well he or she may be able to meet your needs -- in terms of the type of property you want to buy and its price.
You'll want to know whether the agent these people worked with sincerely tried to meet their needs, whether that agent did a good job in showing only homes that were in the buyer's price range and whether the agent was pleasant to work with and had enough time to devote to the buyer.
If you are looking to buy in a particular neighborhood or special class of home (e.g., historic Victorian) you'll want to get recommendations of agents who have an expertise and proven track record in that area.
Look for your type
When looking for an agent to assist you with your home search, search for one who specializes in buyers like you. Check their designations -- through training, agents can earn designations that show they have expertise in certain areas.
For example those with the "ABR" designation (Accredited Buyer Representative) are specifically trained to meet home buyers' (versus sellers') needs -- such as finding the right property, negotiating the best price and completing the purchase of a home. Exclusive buyer agents also make buyers (not sellers) their priority -- these agents don't list homes. (Go to the website for the National Association of Exclusive Buyer Agents to find a listing of these agents in your area.)
There are many designations an agent can earn. Agents with the Senior Real Estate Specialist (SRES) designation have been trained to work with clients who are 50 years of age or older, while agents with the National Association of Realtors'® New Green designation have received education on energy efficiency, environmentally sound building practices and what makes a property "green." NAR has a list of NAR-accredited designations on its website.
It may be in your best interest to hire a real estate agent who is a Realtor® and is an NAR member. Realtors® must comply with NAR's Code of Ethics and meet a standard of conduct -- not all real estate agents are Realtors®.
Go online
On the Web, Google or search for local real estate agents on Yahoo. Check for agents' advertisements in the local newspaper. You can also search for an agent using Trulia's "Find a Real Estate Professional" search, which let's house hunters and homeowners search for real estate agents, lenders, appraisers, etc., by location or keyword.
Once you find a few agents who interest you, check out their websites -- on their sites you may be able to read up on their background, their business style and expertise -- whether it be first-time buyers or a particular neighborhood. The agents' websites no doubt will also provide you with several ways of contacting them -- e.g., via phone, text message or email.
Get face time
Once you narrow it down to a few agents who interest you, schedule meetings with them. Ask them about their years of experience, background, awards and designations and how long they've worked with their agency.
Talk about the type of home you're interested in purchasing, your price range and the neighborhoods you like and get their feedback on how they can assist your search.
Ask them how they'll keep in touch with you/update you on new homes on the market (e.g., by phone, email or text message), their hours and their current workload and availability. Keep notes so you can remember who said what when it comes time to make your decision.
Talk to buyers
When you meet with the agents, ask for the names of some current and past clients. Interview these buyers, and ask them about their experiences working with a particular agent -- pluses and minuses of working with that agent -- and if they'd recommend him or her. Talking with actual buyers should give you a firm idea of which agent will be the best one for you.
Looking for the best real estate agent for you? Call us at 972.772.7000 or frontdesk552@kw.com.
Wednesday, August 31, 2011
Monday, August 29, 2011
Foreclosures Slow but Delinquencies Rise
Provided By Realty Times
A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That's people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).
There has been a steady improvement in the past couple of years, but this slight increase of 0.12 percentage points in the delinquency rate to bring the seasonally adjusted rate to 8.44% of all loans outstanding as of the end of the second quarter, 2011 breaks that gradually improving trend.
However, it's not so bad. The MBA also reports that the number of loans that are delinquent more than 90 days has declined. It's those mortgages that are often moved into a repossession process.
So how bad are the early delinquencies? Often what can happen when borrowers are late for a short period of time is they can get back on track with their payments. Sometimes it's a matter of getting hit with an unexpected medical bill or a temporary cut in work hours.
The MBA believes that delinquencies are mirroring what we are seeing in the employment market.
"Mortgage loans that are one payment, or 30 days, past due are very much driven by changes in the labor market, and the increase in these delinquencies clearly reflects the deterioration we saw in the labor market during the second quarter. Weekly first-time claims for unemployment insurance started the quarter at 385,000 but finished the quarter at 432,000. The unemployment rate started the quarter at 8.8 percent but climbed to 9.2 percent by the end of the quarter," said Jay Brinkmann, MBA's Chief Economist in a statement to the press.
Still, there's a silver lining. Foreclosures are back to levels that we saw in 2007. Not as many foreclosures, as in recent previous years, are being initiated, so more borrowers are finding ways to keep their homes.
"Looking across states, foreclosures continued to be highly concentrated in just a few states, with five states accounting for 52% of the foreclosure inventory in the second quarter. The single biggest factor determining whether or not a state has a large backlog of foreclosures is whether the state has a judicial foreclosure system, meaning whether or not a foreclosure needs to go through the courts. Of the 9 states whose percentage of loans in foreclosure is higher than the national average, only one, Nevada, does not have a judicial system of foreclosure."
There is more good news on the mortgage front. Loans since 2007 are performing better. The time period of 2005 to 2007 represented only 30% of all mortgages. But that same time period accounted for 65% of seriously delinquent loans.
ForeclosureResponse.org concurs in its findings and reports that serious delinquency rates for mortgages are stabilizing across the largest 100 U.S. metropolitan areas. The organization is quick to point out that our current levels have reached historic highs.
Are you behind on your mortgage? You have options. Call us at 972.772.7000 or frontdesk552@kw.com.
A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That's people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).
There has been a steady improvement in the past couple of years, but this slight increase of 0.12 percentage points in the delinquency rate to bring the seasonally adjusted rate to 8.44% of all loans outstanding as of the end of the second quarter, 2011 breaks that gradually improving trend.
However, it's not so bad. The MBA also reports that the number of loans that are delinquent more than 90 days has declined. It's those mortgages that are often moved into a repossession process.
So how bad are the early delinquencies? Often what can happen when borrowers are late for a short period of time is they can get back on track with their payments. Sometimes it's a matter of getting hit with an unexpected medical bill or a temporary cut in work hours.
The MBA believes that delinquencies are mirroring what we are seeing in the employment market.
"Mortgage loans that are one payment, or 30 days, past due are very much driven by changes in the labor market, and the increase in these delinquencies clearly reflects the deterioration we saw in the labor market during the second quarter. Weekly first-time claims for unemployment insurance started the quarter at 385,000 but finished the quarter at 432,000. The unemployment rate started the quarter at 8.8 percent but climbed to 9.2 percent by the end of the quarter," said Jay Brinkmann, MBA's Chief Economist in a statement to the press.
Still, there's a silver lining. Foreclosures are back to levels that we saw in 2007. Not as many foreclosures, as in recent previous years, are being initiated, so more borrowers are finding ways to keep their homes.
"Looking across states, foreclosures continued to be highly concentrated in just a few states, with five states accounting for 52% of the foreclosure inventory in the second quarter. The single biggest factor determining whether or not a state has a large backlog of foreclosures is whether the state has a judicial foreclosure system, meaning whether or not a foreclosure needs to go through the courts. Of the 9 states whose percentage of loans in foreclosure is higher than the national average, only one, Nevada, does not have a judicial system of foreclosure."
There is more good news on the mortgage front. Loans since 2007 are performing better. The time period of 2005 to 2007 represented only 30% of all mortgages. But that same time period accounted for 65% of seriously delinquent loans.
ForeclosureResponse.org concurs in its findings and reports that serious delinquency rates for mortgages are stabilizing across the largest 100 U.S. metropolitan areas. The organization is quick to point out that our current levels have reached historic highs.
Are you behind on your mortgage? You have options. Call us at 972.772.7000 or frontdesk552@kw.com.
Friday, August 26, 2011
The Basics of Homeowners Insurance
Provided By Realty Times
Buying a home is likely the biggest purchase you'll ever make. It's important to protect this investment. This is where homeowners insurance comes in.
As a renter you may have been required to carry "renter's insurance," which was likely a basic plan that covered property losses and damages in case of an accident at which you were at fault, such as fire.
A homeowners policy has to cover so much more. Your possessions now extend on past jewelry and electronics and must protect everything from shingles and flooring to your life savings.
According to Wells Fargo, "Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property."
In the aftermath of disaster, whether from fire, tornado, theft, or liability lawsuits, repairs and replacement costs add up fast. The majority of Americans would be unable to come up with the cash needed to return life back to normal.
So, in response, you purchase insurance. Each year you pay a premium. The amount is based on numerous factors, including the value of your home and the location where you live in. Some areas have higher crime rates, greater risks of wildfire, or have multi-million dollar homes. These policy owners will likely pay more than others.
Be sure to ask your insurance provider for the specifics of what your policy covers. You want a policy that gives you the right amount of coverage. Ask about add-ons, such a flood and earthquake policies. According to Allstate Insurance, "Typically, floods and earthquakes are excluded from basic policies, but in some areas, you may be able to get supplemental insurance policies for those situations. A few other conditions most companies specifically exclude are mold, fungus, wet rot, dry rot and bacteria."
Accidents do happen, and with a battery of lawyers around every corner, you want to be sure you're protected if someone injures himself on your property. Guest medical policies also pay for medical expenses should a person injure himself on your land.
In the instance that you must file a claim, you will need to pay a "deductible." This amount ranges from a few hundred to several thousand dollars. Let's say, for example, that you have a fire. The total dollar amount of damage is $10,000. Your policy covers the fire, so you only pay the "deductible," say $500. This is much more manageable for most households.
To cover not only your property losses in this fire, but also your possession, you will need to have proof of what you had. A home has been recorded on the tax roll, but possessions are your own private property. Homeowners should create an itemized list, updated yearly, that gives evidence of what possessions they have and how much they're worth.
You want a policy that has replacement cost coverage, not just the present value. If you lose a mattress in the fire, it will cost you $1,000 to replace, not $50 (the price it might be worth now). In order to have proof of your possession, consider making a video or photo diary.
Most importantly, keep a copy of this diary and itemized list at a second location away from your home, such as at a trusted relative's house or in a safety deposit box.
If you have a mortgage on your home, you may be required to carry Homeowners Insurance. The reasoning behind this logic is simple. You are not the "owner" of your home until you have completed your loan obligations. Until that point, the bank or lender is the legal "owner." They want to be sure their investment is protected.
For those who own their home outright, homeowners insurance is not required by law, but it would be a crime not to carry it.
Do you have more questions about homeowners insurance? Call us at 972.772.7000 or email us at frontdesk552@kw.com.
Buying a home is likely the biggest purchase you'll ever make. It's important to protect this investment. This is where homeowners insurance comes in.
As a renter you may have been required to carry "renter's insurance," which was likely a basic plan that covered property losses and damages in case of an accident at which you were at fault, such as fire.
A homeowners policy has to cover so much more. Your possessions now extend on past jewelry and electronics and must protect everything from shingles and flooring to your life savings.
According to Wells Fargo, "Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property."
In the aftermath of disaster, whether from fire, tornado, theft, or liability lawsuits, repairs and replacement costs add up fast. The majority of Americans would be unable to come up with the cash needed to return life back to normal.
So, in response, you purchase insurance. Each year you pay a premium. The amount is based on numerous factors, including the value of your home and the location where you live in. Some areas have higher crime rates, greater risks of wildfire, or have multi-million dollar homes. These policy owners will likely pay more than others.
Be sure to ask your insurance provider for the specifics of what your policy covers. You want a policy that gives you the right amount of coverage. Ask about add-ons, such a flood and earthquake policies. According to Allstate Insurance, "Typically, floods and earthquakes are excluded from basic policies, but in some areas, you may be able to get supplemental insurance policies for those situations. A few other conditions most companies specifically exclude are mold, fungus, wet rot, dry rot and bacteria."
Accidents do happen, and with a battery of lawyers around every corner, you want to be sure you're protected if someone injures himself on your property. Guest medical policies also pay for medical expenses should a person injure himself on your land.
In the instance that you must file a claim, you will need to pay a "deductible." This amount ranges from a few hundred to several thousand dollars. Let's say, for example, that you have a fire. The total dollar amount of damage is $10,000. Your policy covers the fire, so you only pay the "deductible," say $500. This is much more manageable for most households.
To cover not only your property losses in this fire, but also your possession, you will need to have proof of what you had. A home has been recorded on the tax roll, but possessions are your own private property. Homeowners should create an itemized list, updated yearly, that gives evidence of what possessions they have and how much they're worth.
You want a policy that has replacement cost coverage, not just the present value. If you lose a mattress in the fire, it will cost you $1,000 to replace, not $50 (the price it might be worth now). In order to have proof of your possession, consider making a video or photo diary.
Most importantly, keep a copy of this diary and itemized list at a second location away from your home, such as at a trusted relative's house or in a safety deposit box.
If you have a mortgage on your home, you may be required to carry Homeowners Insurance. The reasoning behind this logic is simple. You are not the "owner" of your home until you have completed your loan obligations. Until that point, the bank or lender is the legal "owner." They want to be sure their investment is protected.
For those who own their home outright, homeowners insurance is not required by law, but it would be a crime not to carry it.
Do you have more questions about homeowners insurance? Call us at 972.772.7000 or email us at frontdesk552@kw.com.
Wednesday, August 24, 2011
All about home inspections
Provided By Trulia
When you are looking to purchase a home, it's a good idea to get it inspected first. Think of it as a test drive before you plunk down your life savings and most likely, commit yourself to lengthy mortgage. You want to make sure you're getting a quality home. Below is everything you need to know about getting a home inspection.
Why get an inspection?
A home inspection is the examination of a home, from top to bottom. Just like a routine physical that will alert you to any hidden health problems, an inspection will reveal if a home's structure or if any of its systems are in need of significant repair. Purchasing a home is a big investment -- you're likely to be spending thousands of dollars to buy your new home -- so, you'll want to be sure that your purchase is a smart one. (And that you don't buy the real estate equivalent of a lemon.)
In fact, 99% of all agents counsel their clients to have a home inspection performed of homes they are looking to buy.
Hire a professional
When you hire an inspector, look to hire the best -- it only make sense, since buying a home can be an expensive endeavor.
Look to get a professional who's knowledgeable about a home's system -- that person is likely to be a licensed professional engineer (PE). You can search for a PE in your area on Nabie.org, the website for the National Academy of Building Inspection Engineers. You may also want to check up on inspectors you're considering on sites like the Better Business Bureau and Angie's List.
What does a home inspector check?
A home inspector will conduct a visual inspection of the home, from the roof to the foundation. He will examine the roof, attic, insulation, the home's heating and air-conditioning systems, the plumbing and electrical systems, walls, ceilings, floors, windows, the basement and the foundation. The exterior of the home will also be inspected, taking into account factors like the condition of the driveway, fences, sidewalks, grading of the property, etc.
How long will it take?
The average inspection of a single-family home should take two to three hours, according to hud.gov, the website for the U.S. Department of Housing and Urban Development.
What is the cost?
The fee for a home inspection can vary widely, depending on your home's location, size, age and the services being performed -- e.g., if there is a septic system that needs to be inspected, or if the home is being checked for radon. Typically, a home inspection for a single-family house will fall within the range of $300 to $500, according to hud.gov.
How do I get the results?
A quality home inspector will provide a printed (not hand-written) copy of the results. Ask any inspector you're thinking of hiring about what kind of report he will provide and exactly what will be covered in the report. The report should note what systems in the home are defective and what needs repair. Also ask how long it will take for your inspector to get the report to you.
What should the results tell me?
Your inspection report should reveal the overall condition of the home, what repairs are needed, the severity of the needed fixes and their potential cost. You can then use the results of the inspection to determine your next step -- e.g., if you're happy with the home as it is, or if you want to negotiate with the seller to complete some fixes or lower the price on the property.
Do you have more questions about home inspection and the closing process? Give us a call at 972.772.7000 or call us at frontdesk552@kw.com.
When you are looking to purchase a home, it's a good idea to get it inspected first. Think of it as a test drive before you plunk down your life savings and most likely, commit yourself to lengthy mortgage. You want to make sure you're getting a quality home. Below is everything you need to know about getting a home inspection.
Why get an inspection?
A home inspection is the examination of a home, from top to bottom. Just like a routine physical that will alert you to any hidden health problems, an inspection will reveal if a home's structure or if any of its systems are in need of significant repair. Purchasing a home is a big investment -- you're likely to be spending thousands of dollars to buy your new home -- so, you'll want to be sure that your purchase is a smart one. (And that you don't buy the real estate equivalent of a lemon.)
In fact, 99% of all agents counsel their clients to have a home inspection performed of homes they are looking to buy.
Hire a professional
When you hire an inspector, look to hire the best -- it only make sense, since buying a home can be an expensive endeavor.
Look to get a professional who's knowledgeable about a home's system -- that person is likely to be a licensed professional engineer (PE). You can search for a PE in your area on Nabie.org, the website for the National Academy of Building Inspection Engineers. You may also want to check up on inspectors you're considering on sites like the Better Business Bureau and Angie's List.
What does a home inspector check?
A home inspector will conduct a visual inspection of the home, from the roof to the foundation. He will examine the roof, attic, insulation, the home's heating and air-conditioning systems, the plumbing and electrical systems, walls, ceilings, floors, windows, the basement and the foundation. The exterior of the home will also be inspected, taking into account factors like the condition of the driveway, fences, sidewalks, grading of the property, etc.
How long will it take?
The average inspection of a single-family home should take two to three hours, according to hud.gov, the website for the U.S. Department of Housing and Urban Development.
What is the cost?
The fee for a home inspection can vary widely, depending on your home's location, size, age and the services being performed -- e.g., if there is a septic system that needs to be inspected, or if the home is being checked for radon. Typically, a home inspection for a single-family house will fall within the range of $300 to $500, according to hud.gov.
How do I get the results?
A quality home inspector will provide a printed (not hand-written) copy of the results. Ask any inspector you're thinking of hiring about what kind of report he will provide and exactly what will be covered in the report. The report should note what systems in the home are defective and what needs repair. Also ask how long it will take for your inspector to get the report to you.
What should the results tell me?
Your inspection report should reveal the overall condition of the home, what repairs are needed, the severity of the needed fixes and their potential cost. You can then use the results of the inspection to determine your next step -- e.g., if you're happy with the home as it is, or if you want to negotiate with the seller to complete some fixes or lower the price on the property.
Do you have more questions about home inspection and the closing process? Give us a call at 972.772.7000 or call us at frontdesk552@kw.com.
Monday, August 22, 2011
Stop Renting and Buy While Homes are Most Affordable
Provided By Realty Times
If you're currently renting and have dreamed of owning a home, now may be the perfect time. Trulia.com is reporting that during the month of July, buying was cheaper than renting in 74% of the country's 50 largest cities.
However, in 12% of the cities, such as New York, Seattle, and San Francisco, you could rent a place for less than you could buy one. And in the rest of the cities (14%), it was about even, with renting being only slightly less than the cost of buying.
What's tipping the scale to make buying cheaper than renting? Of course, it's the declining home prices and historically low interest rates are also helping to encourage home buying. Recently, interest rates for 30-year and 15-year fixed have been hovering near 4%. Also, the increased demand for rental units is pushing rents up, making now a good time to buy as purchasing a home is cheaper than renting one in most major U.S. cities.
This is making purchasing a home enticing for those who are planning to stay for several years and have the ability to put down a downpayment of about 20 percent.
Where are the hot buying markets? Las Vegas tops the list. The S&P/Case-Shiller home price index, as reported by CNNMoney.com, shows that prices "have plunged more than 59% from their August 2006 peak."
Other markets where buying beats renting include Detroit, Michigan; Mesa, Arizona; and Fresno, California. All of these are places where the cost of a median price condo/townhouse is approximately seven times annual rent.
And as reported by CNNMoney.com, Arlington, Texas; Sacramento, California; Phoenix, Arizona; and Jacksonville, Florida, "all had buy-rent ratios of eight," according to Trulia.
New York is the highest city to rent a home (of the 50 markets surveyed). And to buy in that city would cost about 36 times as much, pushing the purchase price to about a million dollars.
If you're renting now and wondering is this the right time, it really depends on your particular circumstances. Timing the real estate market is never a perfect science. However, the indicators are strong that if you can afford to buy, today's market certainly offers many good opportunities.
Here are a few things to consider to help you make your decision.
The first is the length of time you'll stay in the home. Moves are costly and purchasing a home requires extra cash for commissions and closing costs. So, if you're not sure you can stay for a while, postponing buying might be the right choice. However, if you've been in your rental for a long time and have roots in your city, there are great deals on homes. It might be the right time for you to start paying your own mortgage instead of paying your landlord's mortgage.
How much downpayment? This is a critical concern. With stricter lending requirements, having cash to put down is a make-or-break factor in purchasing a home. Buyers often have to come up with 20% and that can be a big chunk (or even all) of a person's savings. Also, note that the money usually has to be "seasoned". In other words, the downpayment money can't just suddenly appear in your savings account only days before you decide to buy a home. Ask your real estate agent and loan officer for more details.
The cost of owning a home. Part of the thrill of owning a home is the fact that you own it. That means you're responsible for everything inside and out. Of course, planned developments and Homeowner's Associations may cover some of the outside maintenance but then you'll be paying monthly fees. When considering whether to buy or rent, one of the things many first-time buyers neglect to think about is the cost of maintenance. When appliances break; you, the homeowner, will pay to fix them. No more landlord or apartment manager to the rescue. So, if you think things through and weigh the cost of rent versus the cost of buying, you may find the cost and the increased responsibility are well worth it because along with homeownership comes the pride of making your home yours exactly as you like it.
Are you interested in buying your dream home? Call us at 972.772.7000 or email us at frontdesk552@kw.com.
If you're currently renting and have dreamed of owning a home, now may be the perfect time. Trulia.com is reporting that during the month of July, buying was cheaper than renting in 74% of the country's 50 largest cities.
However, in 12% of the cities, such as New York, Seattle, and San Francisco, you could rent a place for less than you could buy one. And in the rest of the cities (14%), it was about even, with renting being only slightly less than the cost of buying.
What's tipping the scale to make buying cheaper than renting? Of course, it's the declining home prices and historically low interest rates are also helping to encourage home buying. Recently, interest rates for 30-year and 15-year fixed have been hovering near 4%. Also, the increased demand for rental units is pushing rents up, making now a good time to buy as purchasing a home is cheaper than renting one in most major U.S. cities.
This is making purchasing a home enticing for those who are planning to stay for several years and have the ability to put down a downpayment of about 20 percent.
Where are the hot buying markets? Las Vegas tops the list. The S&P/Case-Shiller home price index, as reported by CNNMoney.com, shows that prices "have plunged more than 59% from their August 2006 peak."
Other markets where buying beats renting include Detroit, Michigan; Mesa, Arizona; and Fresno, California. All of these are places where the cost of a median price condo/townhouse is approximately seven times annual rent.
And as reported by CNNMoney.com, Arlington, Texas; Sacramento, California; Phoenix, Arizona; and Jacksonville, Florida, "all had buy-rent ratios of eight," according to Trulia.
New York is the highest city to rent a home (of the 50 markets surveyed). And to buy in that city would cost about 36 times as much, pushing the purchase price to about a million dollars.
If you're renting now and wondering is this the right time, it really depends on your particular circumstances. Timing the real estate market is never a perfect science. However, the indicators are strong that if you can afford to buy, today's market certainly offers many good opportunities.
Here are a few things to consider to help you make your decision.
The first is the length of time you'll stay in the home. Moves are costly and purchasing a home requires extra cash for commissions and closing costs. So, if you're not sure you can stay for a while, postponing buying might be the right choice. However, if you've been in your rental for a long time and have roots in your city, there are great deals on homes. It might be the right time for you to start paying your own mortgage instead of paying your landlord's mortgage.
How much downpayment? This is a critical concern. With stricter lending requirements, having cash to put down is a make-or-break factor in purchasing a home. Buyers often have to come up with 20% and that can be a big chunk (or even all) of a person's savings. Also, note that the money usually has to be "seasoned". In other words, the downpayment money can't just suddenly appear in your savings account only days before you decide to buy a home. Ask your real estate agent and loan officer for more details.
The cost of owning a home. Part of the thrill of owning a home is the fact that you own it. That means you're responsible for everything inside and out. Of course, planned developments and Homeowner's Associations may cover some of the outside maintenance but then you'll be paying monthly fees. When considering whether to buy or rent, one of the things many first-time buyers neglect to think about is the cost of maintenance. When appliances break; you, the homeowner, will pay to fix them. No more landlord or apartment manager to the rescue. So, if you think things through and weigh the cost of rent versus the cost of buying, you may find the cost and the increased responsibility are well worth it because along with homeownership comes the pride of making your home yours exactly as you like it.
Are you interested in buying your dream home? Call us at 972.772.7000 or email us at frontdesk552@kw.com.
Friday, August 19, 2011
Green Living: Water Conservation
Provided By: Realty Times
Regions across the United States are in need of rain. Ninety-nine percent of the state of Texas is experiencing drought conditions. Wildfires rage on the West coast while grassfires pervade the Heartland.
In order to help prevent water shortages, each person must take responsibility in conserving water. Take a moment to look over these simple, but effective tips.
Much of a household's water usage is allocated towards outdoor use. Here are some outdoor tips:
- Use drought-resistant plants that will thrive in your region's natural heat. Succulents, such as cacti and yuccas, are beautiful and love the heat. Don't let the name mislead you, though. All plants need some water. Drought-resistant plants simply can live with less.
- Water only during the early morning or evening hours.
- Check for leaks. Sprinkler systems are notorious for having leaks or timers that need reset. Check garden hoses and use spray nozzles that shut off the flow of water when not in use. There's no need to create a "pond" in your backyard!
- Collect rain water using rain barrels. Use the water on gardens, potted plants, and other landscaping. It's nature's way of recycling!
- Apply mulch to your flower beds. It looks great and helps the soil to retain moisture!
Water usage should also be monitored inside your home. Upgrade to high-efficiency washers, toilets, and low-flo shower heads, which can reduce your water usage by half or more! Energy Star appliances must meet specific guidelines of efficiency, including those for water usage.
If you have children, or teenagers, living in your home, have a talk with them about how important conserving water is. Taking shorter showers, turning off the water while brushing teeth, and keeping water off while doing dishes are all ways kids can help out. Every small effort can make a big difference.
Wednesday, August 17, 2011
The Basics of Homeowners Insurance
Provided by Realty Times
Buying a home is likely the biggest purchase you'll ever make. It's important to protect this investment. This is where homeowners insurance comes in.
As a renter you may have been required to carry "renter's insurance," which was likely a basic plan that covered property losses and damages in case of an accident at which you were at fault, such as fire.
A homeowners policy has to cover so much more. Your possessions now extend on past jewelry and electronics and must protect everything from shingles and flooring to your life savings.
According to Wells Fargo, "Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property."
In the aftermath of disaster, whether from fire, tornado, theft, or liability lawsuits, repairs and replacement costs add up fast. The majority of Americans would be unable to come up with the cash needed to return life back to normal.
So, in response, you purchase insurance. Each year you pay a premium. The amount is based on numerous factors, including the value of your home and the location where you live in. Some areas have higher crime rates, greater risks of wildfire, or have multi-million dollar homes. These policy owners will likely pay more than others.
Be sure to ask your insurance provider for the specifics of what your policy covers. You want a policy that gives you the right amount of coverage. Ask about add-ons, such a flood and earthquake policies. According to Allstate Insurance, "Typically, floods and earthquakes are excluded from basic policies, but in some areas, you may be able to get supplemental insurance policies for those situations. A few other conditions most companies specifically exclude are mold, fungus, wet rot, dry rot and bacteria."
Accidents do happen, and with a battery of lawyers around every corner, you want to be sure you're protected if someone injures himself on your property. Guest medical policies also pay for medical expenses should a person injure himself on your land.
In the instance that you must file a claim, you will need to pay a "deductible." This amount ranges from a few hundred to several thousand dollars. Let's say, for example, that you have a fire. The total dollar amount of damage is $10,000. Your policy covers the fire, so you only pay the "deductible," say $500. This is much more manageable for most households.
To cover not only your property losses in this fire, but also your possession, you will need to have proof of what you had. A home has been recorded on the tax roll, but possessions are your own private property. Homeowners should create an itemized list, updated yearly, that gives evidence of what possessions they have and how much they're worth.
You want a policy that has replacement cost coverage, not just the present value. If you lose a mattress in the fire, it will cost you $1,000 to replace, not $50 (the price it might be worth now). In order to have proof of your possession, consider making a video or photo diary.
Most importantly, keep a copy of this diary and itemized list at a second location away from your home, such as at a trusted relative's house or in a safety deposit box.
If you have a mortgage on your home, you may be required to carry Homeowners Insurance. The reasoning behind this logic is simple. You are not the "owner" of your home until you have completed your loan obligations. Until that point, the bank or lender is the legal "owner." They want to be sure their investment is protected.
For those who own their home outright, homeowners insurance is not required by law, but it would be a crime not to carry it.
Monday, August 15, 2011
Relocation Tips to Help You Make Your Move Stress-Free
Provided By: Realty Times
Relocating for a job or personal reason is not easy. Relocating these days can be even more difficult especially if you have to sell your home first.
According to USA Today, "The leap is especially big for the nearly 25 percent of U.S. mortgage holders who owe more than their homes are worth–or will likely bring at sale."
However, the housing slump may not have as much of an impact on employee mobility as some may think. The U.S. Census Bureau reported that moves associated with job opportunities remained steady from 2007 to 2009.
With a high unemployment rate, people are opting to take a job even if it means relocating or taking a loss on their home.
The good news is that companies are realizing how difficult it can be to relocate. About a third of 100 companies in various industries throughout the nation changed their relocation programs in 2009 and 2010 to help with the move, according to a survey by Worldwide Employee Relocation Council (ERC), a national trade group.
In the past, it was common for companies to cover real estate commissions and closing costs, but today's companies might have to fork out more cash for quality employees. Due to today’s market conditions, there are companies that will pay some of the loss of a home sale. According to USA Today, depending on the employee’s job level, that can range from $10,000 to more than $100,000.
However, the "buyout" programs that were more common before the recession are not as popular today. These programs, offered by some companies, helped get the relocating employee’s home sold. Typically, there would be a time period of 60 to 120 days and after that if the home didn’t sell the company would use a private third-party firm to initiate the buyout. Then the employer’s mortgage service would sell the home. This is not common today.
It’s much more common for companies to review each employment situation and then decide. It’s no longer a blanket relocation policy; benefits are decided on a case-by-case basis.
If you’re facing a possible relocation, then knowledge and action are two key ingredients for a stress-free relocation. Here are a few tips.
First, understand that companies want to help valuable employees make their move. The majority of companies surveyed believe that the relocation policies/benefits in place in their company help retain quality employees.
Be sure to ask about the specific relocation policies/benefits. Don’t think that just because something wasn’t mentioned it doesn’t exist. Companies now have policies that accommodate short sales "while others have increased the cap on their loss-on-sale assistance," according to the Worldwide ERC.
Negotiate with the company and make sure your needs and wants are known. Companies are customizing benefits to fit their relocating hires. Make sure that you are clear about your financial picture so that you can accurately negotiate with the company to get your needs met.
Weigh your options carefully before agreeing to accept the relocation. Find out about any tax benefits of a move. Some moving expenses are tax deductible.
Consider renting your home instead of selling it. Using a qualified third-party can make the process successful.
Relocating doesn’t have to be stressful. Be sure you understand a company’s relocation offer and then carefully think through the entire processFriday, August 12, 2011
Green Living: Low-Impact Summer
Provided by Realty Times
It gets so busy during the summertime. Sometimes it feels as though time has literally sped up. Softball games, family reunions, and camps mean running from point A to point B in a hurry. It's easy to lose sight of the small things.
Little changes are how we make a big difference with the environment. From taking shorter showers to upgrading our appliances, there are ways each day we can help Mother Earth enjoy the Summer as much as we do!
How can you have a low-impact Summer? Our experts give us the following tips.
First, support your local growers. Get produce at your area's Farmers' Market. Buy fruits and veggies in the "grown local" section of your favorite grocery. This may not seem like a big deal, but it supports local commerce and reduces the amount of fuels needed to transport your produce.
The next step also pertains to our food. Grow it yourself! Growing a simple vegetable garden is easier than you think. Most of the work goes into good prepping. Periodic weeding and harvesting are simple manual tasks that deliver real fruits of your "labor." Save money on your electric bill and contribute to a "new" way of living that is spreading across the country.
If you grow your own garden, consider being as natural or organic as possible. There are a plethora of wonderful products on the market that help keep bugs at bay.
Natural bug repellants are available for humans, too! Geraniums secrete a scent that drives mosquitos away. Mix a few drops of essential oils (citronella, orange, and rose geranium) into a spray bottle of water. Use this to spray down your legs and arms before any trip outside or to the garden. Not only will you smell good, you'll be a "no bug zone."
Are you looking for ways to save on energy and fuel costs? Start with your travel habits. Cars, even the most energy efficient models, consume mass amounts of gasoline, which has been refined from oil. The amount of energy and pollution that is involved in refining these products would astound you! Be organized and plan trips to the store. Also consider carpooling or using public transit! Your city may have HOV lanes, or high occupancy vehicle lanes. This means if there is more than one person in your car, you get a free pass around the rush hour traffic! If you have a walkable city, use your legs to walk or bike.
On the inside of your home you can save energy by upgrading your appliances. Newer Energy Star appliances use a fraction of the energy that their older counterparts did. You'll be surprised how much your electric bill drops in the first month!
Keep your home and yard cool for years to come by planting shade trees. Trees give our environment so much. They deliver loads of oxygen, all while consuming our nasty carbon dioxide. They help to reduce global warming with this effect! And of course, the give us shade to enjoy those evening glasses of iced tea.
Little habits add up to big change. Don't be too hard on yourself. Every day is a new day. Pick one thing to change today. Pick another next week and start a new habit.
It gets so busy during the summertime. Sometimes it feels as though time has literally sped up. Softball games, family reunions, and camps mean running from point A to point B in a hurry. It's easy to lose sight of the small things.
Little changes are how we make a big difference with the environment. From taking shorter showers to upgrading our appliances, there are ways each day we can help Mother Earth enjoy the Summer as much as we do!
How can you have a low-impact Summer? Our experts give us the following tips.
First, support your local growers. Get produce at your area's Farmers' Market. Buy fruits and veggies in the "grown local" section of your favorite grocery. This may not seem like a big deal, but it supports local commerce and reduces the amount of fuels needed to transport your produce.
The next step also pertains to our food. Grow it yourself! Growing a simple vegetable garden is easier than you think. Most of the work goes into good prepping. Periodic weeding and harvesting are simple manual tasks that deliver real fruits of your "labor." Save money on your electric bill and contribute to a "new" way of living that is spreading across the country.
If you grow your own garden, consider being as natural or organic as possible. There are a plethora of wonderful products on the market that help keep bugs at bay.
Natural bug repellants are available for humans, too! Geraniums secrete a scent that drives mosquitos away. Mix a few drops of essential oils (citronella, orange, and rose geranium) into a spray bottle of water. Use this to spray down your legs and arms before any trip outside or to the garden. Not only will you smell good, you'll be a "no bug zone."
Are you looking for ways to save on energy and fuel costs? Start with your travel habits. Cars, even the most energy efficient models, consume mass amounts of gasoline, which has been refined from oil. The amount of energy and pollution that is involved in refining these products would astound you! Be organized and plan trips to the store. Also consider carpooling or using public transit! Your city may have HOV lanes, or high occupancy vehicle lanes. This means if there is more than one person in your car, you get a free pass around the rush hour traffic! If you have a walkable city, use your legs to walk or bike.
On the inside of your home you can save energy by upgrading your appliances. Newer Energy Star appliances use a fraction of the energy that their older counterparts did. You'll be surprised how much your electric bill drops in the first month!
Keep your home and yard cool for years to come by planting shade trees. Trees give our environment so much. They deliver loads of oxygen, all while consuming our nasty carbon dioxide. They help to reduce global warming with this effect! And of course, the give us shade to enjoy those evening glasses of iced tea.
Little habits add up to big change. Don't be too hard on yourself. Every day is a new day. Pick one thing to change today. Pick another next week and start a new habit.
Wednesday, August 10, 2011
There's Still Value in Homeownership
Provided by Realty Times
It may be a down market, but the majority of Americans still see value in homeownership.
According to a recent survey, conducted on behalf of the National Association of Home Builders (NAHB), "An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home."
There is good reason for homeowners to feel this way. Homeownership offers people a wide range of benefits, including many that reside outside your pocketbook. The first benefit is stability. According to the National Association of Realtors (NAR) and their 2010 study named "Social Benefits of Stable Housing," "Homeownership and stable housing go hand-in-hand. Homeowners move far less frequently than renters, and hence are embedded into the same neighborhood and community for a longer period. "
This stability has far-reaching affects. Studies have revealed that children of homeowners are more likely to graduate and less likely to live in areas with high crime rates. Responsibility is also passed down to the next generation. Daughters of homeowners have a lower incidence of teen pregnancy.
According to the survey, "First, a home purchase naturally involves one of the largest financial commitments most households will undertake. Homeowners, therefore, tend to minimize bad behavior by their children and those of their neighbors that can negatively impact the value of homes in their neighborhood. Second, homeowners are required to take on a greater responsibility such as home maintenance and acquiring the financial skills to handle mortgage payments. These life management skills may get transferred to their children."
Homeownership even affects our health. This same NAR study found that homeowners report higher levels of physical health, even after the study adjusted for age and socioeconomic factors. "In addition to being more satisfied with their own personal situation than renters," says the study, "homeowners also enjoy better physical and psychological health."
Owning your home gives you stability. Eventually, if a homeowner buys within their means, even the longest of mortgages gets paid off. This makes your home one of your greatest retirement assets.
According to Celinda Lake, president of Lake Research Partners. "People believe overwhelmingly that owning a home is an anchor to the American Dream," she said. "It's an anchor to your retirement, and it's an anchor to your personal economic well-being."
"Homeownership is worth the risk, pure and simple," said Neil Newhouse, a partner and co-founder of Public Opinion Strategies. "Even though the market is weak, people who don't own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher."
This is why 80 percent of owners would recommend homeownership to those they know. If you're in the market, maybe it's time you took listened to their advice! Historically low interest rates and high rates of affordability make now a great time to buy.
According to a recent survey, conducted on behalf of the National Association of Home Builders (NAHB), "An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home."
There is good reason for homeowners to feel this way. Homeownership offers people a wide range of benefits, including many that reside outside your pocketbook. The first benefit is stability. According to the National Association of Realtors (NAR) and their 2010 study named "Social Benefits of Stable Housing," "Homeownership and stable housing go hand-in-hand. Homeowners move far less frequently than renters, and hence are embedded into the same neighborhood and community for a longer period. "
This stability has far-reaching affects. Studies have revealed that children of homeowners are more likely to graduate and less likely to live in areas with high crime rates. Responsibility is also passed down to the next generation. Daughters of homeowners have a lower incidence of teen pregnancy.
According to the survey, "First, a home purchase naturally involves one of the largest financial commitments most households will undertake. Homeowners, therefore, tend to minimize bad behavior by their children and those of their neighbors that can negatively impact the value of homes in their neighborhood. Second, homeowners are required to take on a greater responsibility such as home maintenance and acquiring the financial skills to handle mortgage payments. These life management skills may get transferred to their children."
Homeownership even affects our health. This same NAR study found that homeowners report higher levels of physical health, even after the study adjusted for age and socioeconomic factors. "In addition to being more satisfied with their own personal situation than renters," says the study, "homeowners also enjoy better physical and psychological health."
Owning your home gives you stability. Eventually, if a homeowner buys within their means, even the longest of mortgages gets paid off. This makes your home one of your greatest retirement assets.
According to Celinda Lake, president of Lake Research Partners. "People believe overwhelmingly that owning a home is an anchor to the American Dream," she said. "It's an anchor to your retirement, and it's an anchor to your personal economic well-being."
"Homeownership is worth the risk, pure and simple," said Neil Newhouse, a partner and co-founder of Public Opinion Strategies. "Even though the market is weak, people who don't own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher."
This is why 80 percent of owners would recommend homeownership to those they know. If you're in the market, maybe it's time you took listened to their advice! Historically low interest rates and high rates of affordability make now a great time to buy.
Monday, August 8, 2011
Heat Safety Tips
Provided BY Realty Times
This has been a record setting year for temperatures across much of the country. Weeks on end of 100+ degree temperatures have left landscapes scorched and have resulted in numerous fatalities, namely among the elderly. Just last year there were 138 total heat related deaths and this year's number could be much higher.
Active families don't let the heat stop them from enjoying Summer, but precautions must be taken to safeguard your family from the heat.
According to the University of Texas at Dallas' Tom Monagan, an associate athletic director there, you must acclimate yourself to the heat. "If not, you’re asking for problems. Most heat-related illnesses occur within the first few days of working out outside because the body isn’t used to the heat."
The heat makes us exponentially more susceptible to dehydration. Our body quickly uses up our internal supply of water in order to attempt to regulate our temperature.
Here are some life-saving tips from the CDC for those who have decided to brave the heat.
•Keep hydrated. This means cool, non-alcoholic beverages, since alcohol dehydrates you further. Don't wait to drink until you're thirsty. At that point you're already dehydrated.
•Wear light-weight and light-colored clothing. Dark colors attract and absorb light, so opt instead for white cotton or linen fabrics. Natural fabrics "breathe" more than synthetic.
•Avoid strenuous activities. Each year we hear of the tragic deaths of athletes who have died from exercising in extreme heats..
•Remain indoors, preferably in air-conditioning, during the heat of the day. If you don't have AC at home, then visit a public place that is cooled, such as the mall or library.
•Have elderly adults and those on prescription meds talk to their doctors about recommended daily water intake. The elderly are unable to adjust as quickly to the heat as their younger counterparts and may also be on a list of prescription meds that keep the body from regulating temperature.
•Take cold showers or baths
You also need to know the signs of heat stroke and heat exhaustion. You may just save the life of someone you love.
Heat exhaustion is typically characterized by heavy sweating, paleness, muscle cramps, tiredness, weakness, dizziness, headache, nausea, fainting, cool and moist skin, fast and weak pulse, and fast and shallow breathing.
Even more severe is a heat stroke. The CDC reports that signs and symptoms of a heat stroke include:
•An extremely high body temperature (above 103°F)
•Red, hot, and dry skin (no sweating)
•Rapid, strong pulse
•Throbbing headache
•Dizziness
•Nausea
If you have identified any of these symptoms, then you need to take action. Begin by accessing if medical attention is needed. Call 911 or go to the Emergency Room. In the meantime you need to cool the person down as fast as possible. Have them shower or bathe in cold water or, as the CDC recommends, spray them with a garden hose if you don't access to a bathroom. Be sure you remove them from direct sunlight and have them sit in a shaded area. Monitor their temperature until help arrives.
Arming yourself with knowledge about the signs and symptoms of heat-related illness is a must when the temperatures continue to soar.
This has been a record setting year for temperatures across much of the country. Weeks on end of 100+ degree temperatures have left landscapes scorched and have resulted in numerous fatalities, namely among the elderly. Just last year there were 138 total heat related deaths and this year's number could be much higher.
Active families don't let the heat stop them from enjoying Summer, but precautions must be taken to safeguard your family from the heat.
According to the University of Texas at Dallas' Tom Monagan, an associate athletic director there, you must acclimate yourself to the heat. "If not, you’re asking for problems. Most heat-related illnesses occur within the first few days of working out outside because the body isn’t used to the heat."
The heat makes us exponentially more susceptible to dehydration. Our body quickly uses up our internal supply of water in order to attempt to regulate our temperature.
Here are some life-saving tips from the CDC for those who have decided to brave the heat.
•Keep hydrated. This means cool, non-alcoholic beverages, since alcohol dehydrates you further. Don't wait to drink until you're thirsty. At that point you're already dehydrated.
•Wear light-weight and light-colored clothing. Dark colors attract and absorb light, so opt instead for white cotton or linen fabrics. Natural fabrics "breathe" more than synthetic.
•Avoid strenuous activities. Each year we hear of the tragic deaths of athletes who have died from exercising in extreme heats..
•Remain indoors, preferably in air-conditioning, during the heat of the day. If you don't have AC at home, then visit a public place that is cooled, such as the mall or library.
•Have elderly adults and those on prescription meds talk to their doctors about recommended daily water intake. The elderly are unable to adjust as quickly to the heat as their younger counterparts and may also be on a list of prescription meds that keep the body from regulating temperature.
•Take cold showers or baths
You also need to know the signs of heat stroke and heat exhaustion. You may just save the life of someone you love.
Heat exhaustion is typically characterized by heavy sweating, paleness, muscle cramps, tiredness, weakness, dizziness, headache, nausea, fainting, cool and moist skin, fast and weak pulse, and fast and shallow breathing.
Even more severe is a heat stroke. The CDC reports that signs and symptoms of a heat stroke include:
•An extremely high body temperature (above 103°F)
•Red, hot, and dry skin (no sweating)
•Rapid, strong pulse
•Throbbing headache
•Dizziness
•Nausea
If you have identified any of these symptoms, then you need to take action. Begin by accessing if medical attention is needed. Call 911 or go to the Emergency Room. In the meantime you need to cool the person down as fast as possible. Have them shower or bathe in cold water or, as the CDC recommends, spray them with a garden hose if you don't access to a bathroom. Be sure you remove them from direct sunlight and have them sit in a shaded area. Monitor their temperature until help arrives.
Arming yourself with knowledge about the signs and symptoms of heat-related illness is a must when the temperatures continue to soar.
Friday, August 5, 2011
Foreclosure Market Yields Mixed Figures
Provided By Realty Times
There was a significant decline in foreclosure filings for the firhttp://www.blogger.com/img/blank.gifst half of 2011, down 25 percent from the previous six months. Foreclosure activity has also slowed 29 percent from the first half of quarters 2010. June, however, posted a 4 percent gain. The latest RealtyTrac data now indicated that "0.90 percent of all U.S. housing units (one in 111) had at least one foreclosure filing in the first half of the year."
According to RealtyTrac®, "Processing and procedural delays are pushing foreclosures further and further out – we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”
The translation? The figures we currently see may not reflect the true state of distressed properties. On average, a property takes 318 days from the initial notice to complete the process, up almost a month from previous averages. Some states take considerably longer, with New York leading the way at 966 days, or a staggering two and a half years. This means homes that entered the process in the last year won't complete filing until 2013. New Jersey followed a close second at 944 days, while Florida takes 676 days.
The National Association of Realtors®' most recent existing-home sales data indicated that distressed homes, defined as foreclosures and short sales, made up 30 percent of all June sales, down only marginally from 31 percent seen in May and 32 percent in June 2010.
If the foreclosure rate declines seen in the first half of this year have only been temporary, there will be a marked effect on the housing market. If this rate heats back up, as some experts predict, property values could once again plummet. Neighborhood home values are strongly affected by foreclosure sales, generally sending sale prices downward all across the board. If home values continue to fall, we could see even more homeowners upside-down in their loans, putting the brakes on market activity once again.
California still leads the way with the bulk of foreclosures. According to RealtyTrac, the state has seen filings decline by 13 percent in the last six months, but they still posted 263,500 new foreclosure filings for the first half of 2011.
Nevada, however, leads the way in the highest rate of foreclosure. Almost 5 percent of its housing is in foreclosure. RealtyTrac reports, "Overall Nevada foreclosure activity decreased on a year-over-year basis for the fifth straight month in June despite a 19 percent year-over-year spike in REO activity."
We'll see if July follows suite after June and posts another rise in foreclosure filings. "It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” said James J. Saccacio, chief executive officer of RealtyTrac. "Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn't appear to be the case."
Are you interested in learning more about foreclosures in your area? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
There was a significant decline in foreclosure filings for the firhttp://www.blogger.com/img/blank.gifst half of 2011, down 25 percent from the previous six months. Foreclosure activity has also slowed 29 percent from the first half of quarters 2010. June, however, posted a 4 percent gain. The latest RealtyTrac data now indicated that "0.90 percent of all U.S. housing units (one in 111) had at least one foreclosure filing in the first half of the year."
According to RealtyTrac®, "Processing and procedural delays are pushing foreclosures further and further out – we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”
The translation? The figures we currently see may not reflect the true state of distressed properties. On average, a property takes 318 days from the initial notice to complete the process, up almost a month from previous averages. Some states take considerably longer, with New York leading the way at 966 days, or a staggering two and a half years. This means homes that entered the process in the last year won't complete filing until 2013. New Jersey followed a close second at 944 days, while Florida takes 676 days.
The National Association of Realtors®' most recent existing-home sales data indicated that distressed homes, defined as foreclosures and short sales, made up 30 percent of all June sales, down only marginally from 31 percent seen in May and 32 percent in June 2010.
If the foreclosure rate declines seen in the first half of this year have only been temporary, there will be a marked effect on the housing market. If this rate heats back up, as some experts predict, property values could once again plummet. Neighborhood home values are strongly affected by foreclosure sales, generally sending sale prices downward all across the board. If home values continue to fall, we could see even more homeowners upside-down in their loans, putting the brakes on market activity once again.
California still leads the way with the bulk of foreclosures. According to RealtyTrac, the state has seen filings decline by 13 percent in the last six months, but they still posted 263,500 new foreclosure filings for the first half of 2011.
Nevada, however, leads the way in the highest rate of foreclosure. Almost 5 percent of its housing is in foreclosure. RealtyTrac reports, "Overall Nevada foreclosure activity decreased on a year-over-year basis for the fifth straight month in June despite a 19 percent year-over-year spike in REO activity."
We'll see if July follows suite after June and posts another rise in foreclosure filings. "It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” said James J. Saccacio, chief executive officer of RealtyTrac. "Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn't appear to be the case."
Are you interested in learning more about foreclosures in your area? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Wednesday, August 3, 2011
10 Tips to find the perfect home
Provided By Trulia
Go for the long haul
When looking for a home, search for one that you could see yourself living in for several years -- at least five to seven years is ideal. Buying -- and moving -- to a new home takes a lot of time and effort, and can add up significantly in closing and moving costs, etc. Staying in place longer will help you avoid those added expenses. Plus, the extra time spent in your home could be just enough to help you ride out a downturn in the real estate market.
Leave room to grow
Aim for a home that can adapt to your needs as your life changes, say, if you have a new baby, or Junior moves back in after college. If you can't afford a place that's large enough to meet your anticipated future needs now, look for one that will allow you to build on later on.
Be flexible
Consider a place with rooms that can serve multiple functions, so the home remains highly functional for you through the years. For example, an open-floor-plan-style home is very adaptable. A kitchen that overlooks a family room is helpful when one's children are young (you can cook while watching the kids), while such a kitchen is also great for entertaining your friends once the kids leave the roost.
Go for your type
Think about what style of home fits you best -- house, condo, townhome, etc. -- they're not one size fits all. For example, a single-family home -- which sits on its own lot and must be maintained by the homeowner -- may be great for a person seeking privacy, but not so wonderful for somebody who doesn't want to worry about mowing the lawn, fixing the plumbing, etc. Meanwhile, a condo might be perfect for somebody who wants a "lock 'n' leave" lifestyle, but not for somebody who doesn't like sharing a wall with his neighbors.
Check the surroundings
When you purchase a home, you not only get a house, you also buy into a neighborhood. Think about whether that neighborhood will suit you. Sure, you might love the house itself, but will the loud neighbors next door or the school across the street become too bothersome for you? Also, do you like the feel of the neighborhood and does it offer everything you need? It's best to find a place in a community that you'll enjoy.
Buy what you can afford
It's easy to shoot for the sky and overspend when buying a home -- you understandably want the best your money can buy. Examine your finances, keeping in mind current and future expenses, and don't exceed your means. It's smarter to buy a home you can easily afford than one you have to stretch to get into. Stay down to earth, and you'll be better prepared should unexpected financial commitments and problems arise later down the road.
Think "home" first
When purchasing a home, don't imagine the dollar signs you'll see the day you sell it. A home is just that -- primarily a "home," and not an investment. So, buy a place that'd be great to live in first and think about its resale value second. Predicting real estate cycles and home appreciation is tough enough for the experts -- and much more for the average home buyer. Plus, while home renovations tend to add value to a residence, they rarely recoup more than what was spent on them.
Look at both old and new
It's nice to move into a place that's brand-new. But, new isn't always better. Consider both old and new. While you might not like a previous homeowner's decorating decisions, you might like the owner-installed upgrades -- like a finished basement and a backyard deck -- that a new home might not have.
Location, location
You've heard this tip before, but a home's location does matter. A house that's located on a busy, noisy street may be less enjoyable to you as a homeowner than one situated on a quiet, secluded cul-de-sac. Plus, a home on a cul-de-sac is likely to be worth more than a poorly located one when it comes time to resell. So consider a home's location before you're smitten by a spectacular interior.
When it comes time to sell
While you want to think of your place as a home first and not an investment, it doesn't make sense to purchase a white elephant, either. You should put at least some thought into how easy -- or difficult -- it'll be to resell the home one day. If a home is so unlike other nearby homes in terms of size, style, price, etc., you might want to skip it and look elsewhere -- it could become a burden should you want to someday move on.
Looking for your perfect home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Go for the long haul
When looking for a home, search for one that you could see yourself living in for several years -- at least five to seven years is ideal. Buying -- and moving -- to a new home takes a lot of time and effort, and can add up significantly in closing and moving costs, etc. Staying in place longer will help you avoid those added expenses. Plus, the extra time spent in your home could be just enough to help you ride out a downturn in the real estate market.
Leave room to grow
Aim for a home that can adapt to your needs as your life changes, say, if you have a new baby, or Junior moves back in after college. If you can't afford a place that's large enough to meet your anticipated future needs now, look for one that will allow you to build on later on.
Be flexible
Consider a place with rooms that can serve multiple functions, so the home remains highly functional for you through the years. For example, an open-floor-plan-style home is very adaptable. A kitchen that overlooks a family room is helpful when one's children are young (you can cook while watching the kids), while such a kitchen is also great for entertaining your friends once the kids leave the roost.
Go for your type
Think about what style of home fits you best -- house, condo, townhome, etc. -- they're not one size fits all. For example, a single-family home -- which sits on its own lot and must be maintained by the homeowner -- may be great for a person seeking privacy, but not so wonderful for somebody who doesn't want to worry about mowing the lawn, fixing the plumbing, etc. Meanwhile, a condo might be perfect for somebody who wants a "lock 'n' leave" lifestyle, but not for somebody who doesn't like sharing a wall with his neighbors.
Check the surroundings
When you purchase a home, you not only get a house, you also buy into a neighborhood. Think about whether that neighborhood will suit you. Sure, you might love the house itself, but will the loud neighbors next door or the school across the street become too bothersome for you? Also, do you like the feel of the neighborhood and does it offer everything you need? It's best to find a place in a community that you'll enjoy.
Buy what you can afford
It's easy to shoot for the sky and overspend when buying a home -- you understandably want the best your money can buy. Examine your finances, keeping in mind current and future expenses, and don't exceed your means. It's smarter to buy a home you can easily afford than one you have to stretch to get into. Stay down to earth, and you'll be better prepared should unexpected financial commitments and problems arise later down the road.
Think "home" first
When purchasing a home, don't imagine the dollar signs you'll see the day you sell it. A home is just that -- primarily a "home," and not an investment. So, buy a place that'd be great to live in first and think about its resale value second. Predicting real estate cycles and home appreciation is tough enough for the experts -- and much more for the average home buyer. Plus, while home renovations tend to add value to a residence, they rarely recoup more than what was spent on them.
Look at both old and new
It's nice to move into a place that's brand-new. But, new isn't always better. Consider both old and new. While you might not like a previous homeowner's decorating decisions, you might like the owner-installed upgrades -- like a finished basement and a backyard deck -- that a new home might not have.
Location, location
You've heard this tip before, but a home's location does matter. A house that's located on a busy, noisy street may be less enjoyable to you as a homeowner than one situated on a quiet, secluded cul-de-sac. Plus, a home on a cul-de-sac is likely to be worth more than a poorly located one when it comes time to resell. So consider a home's location before you're smitten by a spectacular interior.
When it comes time to sell
While you want to think of your place as a home first and not an investment, it doesn't make sense to purchase a white elephant, either. You should put at least some thought into how easy -- or difficult -- it'll be to resell the home one day. If a home is so unlike other nearby homes in terms of size, style, price, etc., you might want to skip it and look elsewhere -- it could become a burden should you want to someday move on.
Looking for your perfect home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Monday, August 1, 2011
Foresight vs Hindsight: Sell Now or Later?
Provided By Realty Times
Most property owners intend to enjoy their real estate as long as they want to, and then sell it for the greatest possible profit—ideally tax free—with the minimum amount of hassle, in the shortest possible time. Sometimes this works out. Sometimes it doesn't. How can owners stack the deck in their favor?
Just before a real estate market shifts, make an informed decision to sell or not sell, instead of passively watching what's going on, and possibly lamenting in hindsight. Current forecasts of price declines are warning signs for owners who want to sell and move in the next few years. The question to answer before dramatic changes happen is, "Will delaying the sale of the home for a few years cost money?"
Actively engage foresight to investigate options. Then you can make an informed decision to sell or not to sell which makes more sense—and more money—than lamenting in hindsight. The range of factors and personal choices in the decision make it complex enough that you must stop, gather details, and think, but simple enough that your reaction to accumulated information can reflect the best decision for you.
If you just watch as prices rise and dip, you're a passive real estate spectator and may miss opportunities to move yourself ahead financially. When you get in the habit of making informed decisions as markets change, you'll be an engaged real estate owner, always be ready to take advantage of opportunity whether that means selling or staying.
To decide if now is the best time to sell, there are a number of key issues to consider. Take time to explore the value in selling now versus later, instead of later whining "If only we'd...!".
Seriously considering a sale does not commit you to moving until the property is actually on the market and sold. It does commit you to making a detailed comparison of financial and housing gains and losses in selling now versus selling in the lower-priced future markets many pundits are forecasting.
The Now Versus Later Decision
Current Local Real Estate Knowledge Depending on the complexity of your housing and financial situation, you may need time with a real estate professional with extensive local experience. You need expert advice on the true real estate market which is the one happening on your street, or in your condominium building. Understanding what's selling locally, and how quickly, is important. Projections of what may lie ahead will be based on how the neighborhood is evolving. For instance, if this is first-time buyer territory, projected reductions in this market segment may be significant. Selling condominiums must include evaluation of new competing developments which may come on market as heavy competition. According to TD Economics' July 13 report, Moderation in Store for the Canadian Housing Market, which explored market forecasts for 12 major centres, "Given their recent run-up in activity, new condo supply and only-subdued economic growth forecast, Toronto and Vancouver are expected to see a larger than-average correction in both sales and prices." No guarantees here, so be ready to rely on your knowledge of the area. You have strong ideas and experience concerning what is happening now in your neighbourhood, and where things are headed.
Sale-Worthiness The real estate professional can also identify specific repairs and upgrades which would increase value and speed of sale. A home inspection or an unbiased assessment from a contractor who understands your purpose may be worth a few hundred dollars. The key is to be sure you know how much has to be done to make the home sale-worthy, or that a buyer with a home inspection may expect to negotiate off the sale price. Calculations regarding a delayed sale must include additional out-of-pocket expenses like replacing the roof, painting, modernizing bathrooms, or repairing the deck that would be necessary in a few years. For more on buyer patterns: Savvy Buyers Know Value When They See It.
Tax Implications If your home is designated your principal residence, as defined by the Canadian Revenue Agency (CRA), the profit you earn could be tax-free, so maximizing the gain makes sense. According to CRA, if the property was your principal residence for every year you owned it, you don't have to report the sale on your tax return or pay income tax on the profit. As with most tax topics, principal residence designation is not a simple concept nor an easy one to interpret. Changes like renting out your home may mean the capital gain from a sale, or some of it, must be reported as income. When income tax is payable on this profit, the amount left after deducting the cost of increasing the value of the property (not maintaining it) and the cost of selling is added to your income tax and tax paid at your income tax rate. There is no fixed percentage of tax charged.
Location Impact Many areas have already seen real estate sales slow and prices "level off" in spite of continued record growth in Toronto and Vancouver markets. Location will remain a significant factor. When prices were going up, they did not rise the same percent in every neighborhood. Price declines will also be location specific. Forecasts project declines of from 10% to 25%, depending on the economists and markets involved. Economic shifts will also be significant local factors. What's happening with jobs and development in your area? The aforementioned report, which explored market forecasts for 12 major centres, reported: "Over 2011-13, Calgary, Edmonton and Regina housing markets are set to lead the way. Still, the term "leader" is relative as no market is slated to experience a boom over our forecast. We simply have these regions doing better than the rest."
Interest Rate Increases When rates increase, buying power will be reduced and the pool of buyers who can afford your real estate will decline. Forecasts are regularly re-written, so timing can be difficult to pin down. Your real estate professional can project how significant a rate increase would be to potential buyers. Not all will be equally impacted by increases. For more on this topic: Mortgages: Mortgages: 7 Things You Don't Want to Learn the Hard Way.
Hindsight may be more accurate than foresight, but foresight may be all that is necessary to end indecision about the "when" of selling, and gain the benefits of being a fully-engaged real estate owner.
Interested in selling your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Most property owners intend to enjoy their real estate as long as they want to, and then sell it for the greatest possible profit—ideally tax free—with the minimum amount of hassle, in the shortest possible time. Sometimes this works out. Sometimes it doesn't. How can owners stack the deck in their favor?
Just before a real estate market shifts, make an informed decision to sell or not sell, instead of passively watching what's going on, and possibly lamenting in hindsight. Current forecasts of price declines are warning signs for owners who want to sell and move in the next few years. The question to answer before dramatic changes happen is, "Will delaying the sale of the home for a few years cost money?"
Actively engage foresight to investigate options. Then you can make an informed decision to sell or not to sell which makes more sense—and more money—than lamenting in hindsight. The range of factors and personal choices in the decision make it complex enough that you must stop, gather details, and think, but simple enough that your reaction to accumulated information can reflect the best decision for you.
If you just watch as prices rise and dip, you're a passive real estate spectator and may miss opportunities to move yourself ahead financially. When you get in the habit of making informed decisions as markets change, you'll be an engaged real estate owner, always be ready to take advantage of opportunity whether that means selling or staying.
To decide if now is the best time to sell, there are a number of key issues to consider. Take time to explore the value in selling now versus later, instead of later whining "If only we'd...!".
Seriously considering a sale does not commit you to moving until the property is actually on the market and sold. It does commit you to making a detailed comparison of financial and housing gains and losses in selling now versus selling in the lower-priced future markets many pundits are forecasting.
The Now Versus Later Decision
Current Local Real Estate Knowledge Depending on the complexity of your housing and financial situation, you may need time with a real estate professional with extensive local experience. You need expert advice on the true real estate market which is the one happening on your street, or in your condominium building. Understanding what's selling locally, and how quickly, is important. Projections of what may lie ahead will be based on how the neighborhood is evolving. For instance, if this is first-time buyer territory, projected reductions in this market segment may be significant. Selling condominiums must include evaluation of new competing developments which may come on market as heavy competition. According to TD Economics' July 13 report, Moderation in Store for the Canadian Housing Market, which explored market forecasts for 12 major centres, "Given their recent run-up in activity, new condo supply and only-subdued economic growth forecast, Toronto and Vancouver are expected to see a larger than-average correction in both sales and prices." No guarantees here, so be ready to rely on your knowledge of the area. You have strong ideas and experience concerning what is happening now in your neighbourhood, and where things are headed.
Sale-Worthiness The real estate professional can also identify specific repairs and upgrades which would increase value and speed of sale. A home inspection or an unbiased assessment from a contractor who understands your purpose may be worth a few hundred dollars. The key is to be sure you know how much has to be done to make the home sale-worthy, or that a buyer with a home inspection may expect to negotiate off the sale price. Calculations regarding a delayed sale must include additional out-of-pocket expenses like replacing the roof, painting, modernizing bathrooms, or repairing the deck that would be necessary in a few years. For more on buyer patterns: Savvy Buyers Know Value When They See It.
Tax Implications If your home is designated your principal residence, as defined by the Canadian Revenue Agency (CRA), the profit you earn could be tax-free, so maximizing the gain makes sense. According to CRA, if the property was your principal residence for every year you owned it, you don't have to report the sale on your tax return or pay income tax on the profit. As with most tax topics, principal residence designation is not a simple concept nor an easy one to interpret. Changes like renting out your home may mean the capital gain from a sale, or some of it, must be reported as income. When income tax is payable on this profit, the amount left after deducting the cost of increasing the value of the property (not maintaining it) and the cost of selling is added to your income tax and tax paid at your income tax rate. There is no fixed percentage of tax charged.
Location Impact Many areas have already seen real estate sales slow and prices "level off" in spite of continued record growth in Toronto and Vancouver markets. Location will remain a significant factor. When prices were going up, they did not rise the same percent in every neighborhood. Price declines will also be location specific. Forecasts project declines of from 10% to 25%, depending on the economists and markets involved. Economic shifts will also be significant local factors. What's happening with jobs and development in your area? The aforementioned report, which explored market forecasts for 12 major centres, reported: "Over 2011-13, Calgary, Edmonton and Regina housing markets are set to lead the way. Still, the term "leader" is relative as no market is slated to experience a boom over our forecast. We simply have these regions doing better than the rest."
Interest Rate Increases When rates increase, buying power will be reduced and the pool of buyers who can afford your real estate will decline. Forecasts are regularly re-written, so timing can be difficult to pin down. Your real estate professional can project how significant a rate increase would be to potential buyers. Not all will be equally impacted by increases. For more on this topic: Mortgages: Mortgages: 7 Things You Don't Want to Learn the Hard Way.
Hindsight may be more accurate than foresight, but foresight may be all that is necessary to end indecision about the "when" of selling, and gain the benefits of being a fully-engaged real estate owner.
Interested in selling your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
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