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.
Wednesday, November 30, 2011
Monday, November 28, 2011
Ask the HOA Expert
Provided By Realty Times
Question: Our annual meeting was held yesterday and a motion was approved to distribute meeting minutes and other communications via e-mail. We are a small HOA and 3/4ths of the people do email and the rest don’t. Is this a problem?
Answer: Distributing HOA information by email makes perfect sense labor and budget-wise. But since HOA websites are very cheap, it would be even better to post HOA information on your very own HOA website and merely put a link in the email to the website when new information is available. Those that are email challenged will still need to be provided the information by mail. At least you’ve saved 3/4ths of the cost.
Question: Our HOA treasurer has the most time-intensive position and in the past has been paid $70/month to perform those duties. At our annual meeting, a motion was made to stop paying the treasurer. The motion passed.
Four months went by and the treasurer proposed the board reinstate the compensation based on the job duties and time required to get it done. Can the board reinstate this payment and overturn a decision made by the homeowners at an annual meeting?
Answer: Generally speaking, the governing documents prohibit board members from taking compensation for their board duties. If this is true for your HOA, no, the treasurer should not be paid nor should the board disregard a matter the members have clearly expressed their wishes on. There are professional bookkeepers that can provide this service although it may cost more money.
Question: If the HOA board decides not to enforce a specific rule, can it still enforce other rules?
Answer: It's in the best interest of the HOA for the board to enforce all rules consistently. But not enforcing one rule does not negate all rules. But if the board fails to enforce a particular rule for an extended period of time, the board may compromise its authority to enforce it all. Another common HOA issue is that different boards enforce rules more or less consistently. If a particular board feels strongly that renewing enforcement of a particular rule that has long gone unenforced is a good thing, the matter should be discussed in the annual homeowner meeting or, at minimum, in a newsletter that clearly informs all members of the issue and the board's intention to enforce it. Catching members by surprise is bad policy.
On the other hand, maybe a particular rule isn't needed at all. It's okay to take a rule formally off the books by an appropriate vote of the members. Don't just have rules for rules sake. There are plenty to follow already.
For more innovative homeowner association management strategies, subscribe to www.Regenesis.net
Question: Our annual meeting was held yesterday and a motion was approved to distribute meeting minutes and other communications via e-mail. We are a small HOA and 3/4ths of the people do email and the rest don’t. Is this a problem?
Answer: Distributing HOA information by email makes perfect sense labor and budget-wise. But since HOA websites are very cheap, it would be even better to post HOA information on your very own HOA website and merely put a link in the email to the website when new information is available. Those that are email challenged will still need to be provided the information by mail. At least you’ve saved 3/4ths of the cost.
Question: Our HOA treasurer has the most time-intensive position and in the past has been paid $70/month to perform those duties. At our annual meeting, a motion was made to stop paying the treasurer. The motion passed.
Four months went by and the treasurer proposed the board reinstate the compensation based on the job duties and time required to get it done. Can the board reinstate this payment and overturn a decision made by the homeowners at an annual meeting?
Answer: Generally speaking, the governing documents prohibit board members from taking compensation for their board duties. If this is true for your HOA, no, the treasurer should not be paid nor should the board disregard a matter the members have clearly expressed their wishes on. There are professional bookkeepers that can provide this service although it may cost more money.
Question: If the HOA board decides not to enforce a specific rule, can it still enforce other rules?
Answer: It's in the best interest of the HOA for the board to enforce all rules consistently. But not enforcing one rule does not negate all rules. But if the board fails to enforce a particular rule for an extended period of time, the board may compromise its authority to enforce it all. Another common HOA issue is that different boards enforce rules more or less consistently. If a particular board feels strongly that renewing enforcement of a particular rule that has long gone unenforced is a good thing, the matter should be discussed in the annual homeowner meeting or, at minimum, in a newsletter that clearly informs all members of the issue and the board's intention to enforce it. Catching members by surprise is bad policy.
On the other hand, maybe a particular rule isn't needed at all. It's okay to take a rule formally off the books by an appropriate vote of the members. Don't just have rules for rules sake. There are plenty to follow already.
For more innovative homeowner association management strategies, subscribe to www.Regenesis.net
Friday, November 25, 2011
Garage Organization
Provided By Southern Living Magazine
For many homeowners, the words "garage" and "storage space" are synonymous, but that assumption wears thin when parking the car inside requires divine intervention. So the next time you're forced to squeeze past a barrier of boxes and various yard items to get in the house, take advantage of the following tips--along with warm summer days--for a better, more organized vehicle-and-storage shelter.
From Cluttered to Contained
While organizing a garage certainly isn't rocket science, knowing the fundamentals will lead to a more successful outcome.
Get rid of those things you don't need. Sounds simple, but most of us harbor pack rat tendencies that are difficult to break. Whether you hold a garage sale (see "Garage Sale Advice" on the following page for some tips), donate the stuff to charity, or rent a dump truck, your actions will pay off. Those old hedge clippers with both blades broken--chuck them. The 1970s hi-fi stereo that still works, complete with turntable and eight-track player--sell it. Whatever the condition of the items, chances are your garage needs a long-awaited purging. (Note: If you plan to set things out for trash pickup, be sure to verify what your local sanitation department will and will not take.)
Group similar things together. Again, this is another simple idea, but it is equally important. What good is a toolbox when its contents are scattered from one end of the garage to the other? The same applies to yard equipment. You may own four different rakes, a couple of shovels, and various other tools, but when the time comes to use them, they're nowhere in sight. Solve this problem by designating certain areas for specific items. Locate those things you use on a regular basis up front, near the garage door. Put boxes of holiday ornaments and other out-of-season items where they're not in the way. When everything has a place, it will be much easier to keep the space organized. (Tip: Park your car in the garage, open all doors, and draw boundary lines with a piece of chalk on the floor. Now, back the car out--with doors shut, naturally. What's left inside is a defined guide for storage and parking.)
Good Storage Sense
Maximize wall and ceiling space. The options are endless here--hooks, Peg-Board panels, shelving units, storage bins, racks, and so on. Even garage attic space, if exposed or accessible, allows a way to get things up and out of the way. Two notes of caution, though: Always make sure that you have correctly secured a chosen storage system into the garage's wall studs or ceiling joists. Also, don't overload shelving or bin units. Instead, place heavier items on lower levels and lighter objects on top. Elevating things off the floor will help with sweeping and cleaning as well.
Stow hazardous materials well out of harm's way. Products such as paint thinners, gas and antifreeze containers, fertilizers, cleaning supplies, and other chemicals can prove dangerous in the wrong hands. Likewise, certain substances placed together can chemically react, resulting in explosions and even fires. Group like items, and store in cabinets that lock and provide ventilation. Also, before tossing these materials, contact your community's sanitation or fire department for proper disposal techniques.
Garage Sale Advice
Here are some tips to make your next sale more manageable.
Check with your local town hall or city council for any ordinances pertaining to garage sales. Also, be aware of any laws that limit or prohibit neighborhood advertising.
Plan. The more time for deciding what to sell and how much each item should cost, the better. Also, give iffy items the benefit of the doubt. One man's trash is another's treasure.
Advertise. Take advantage of community and workplace bulletin boards and local newspapers. Once your sale is over, don't forget to remove any signs or flyers.
If possible, keep all sale items out of sight or behind closed doors until you're ready for the mad dash to begin. Allow yourself just enough time to set up. (Tip: Post a sign on your garage door stating the correct starting time; stress that early comers will just have to wait.)
Arrange items either by category or by similar price. Make sure that prices are clearly marked.
Have an ample amount of change, along with $1 and $5 bills. Be willing to negotiate on price as well--within reason and with a smile, of course.
Getting ready to sell your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com!
For many homeowners, the words "garage" and "storage space" are synonymous, but that assumption wears thin when parking the car inside requires divine intervention. So the next time you're forced to squeeze past a barrier of boxes and various yard items to get in the house, take advantage of the following tips--along with warm summer days--for a better, more organized vehicle-and-storage shelter.
From Cluttered to Contained
While organizing a garage certainly isn't rocket science, knowing the fundamentals will lead to a more successful outcome.
Get rid of those things you don't need. Sounds simple, but most of us harbor pack rat tendencies that are difficult to break. Whether you hold a garage sale (see "Garage Sale Advice" on the following page for some tips), donate the stuff to charity, or rent a dump truck, your actions will pay off. Those old hedge clippers with both blades broken--chuck them. The 1970s hi-fi stereo that still works, complete with turntable and eight-track player--sell it. Whatever the condition of the items, chances are your garage needs a long-awaited purging. (Note: If you plan to set things out for trash pickup, be sure to verify what your local sanitation department will and will not take.)
Group similar things together. Again, this is another simple idea, but it is equally important. What good is a toolbox when its contents are scattered from one end of the garage to the other? The same applies to yard equipment. You may own four different rakes, a couple of shovels, and various other tools, but when the time comes to use them, they're nowhere in sight. Solve this problem by designating certain areas for specific items. Locate those things you use on a regular basis up front, near the garage door. Put boxes of holiday ornaments and other out-of-season items where they're not in the way. When everything has a place, it will be much easier to keep the space organized. (Tip: Park your car in the garage, open all doors, and draw boundary lines with a piece of chalk on the floor. Now, back the car out--with doors shut, naturally. What's left inside is a defined guide for storage and parking.)
Good Storage Sense
Maximize wall and ceiling space. The options are endless here--hooks, Peg-Board panels, shelving units, storage bins, racks, and so on. Even garage attic space, if exposed or accessible, allows a way to get things up and out of the way. Two notes of caution, though: Always make sure that you have correctly secured a chosen storage system into the garage's wall studs or ceiling joists. Also, don't overload shelving or bin units. Instead, place heavier items on lower levels and lighter objects on top. Elevating things off the floor will help with sweeping and cleaning as well.
Stow hazardous materials well out of harm's way. Products such as paint thinners, gas and antifreeze containers, fertilizers, cleaning supplies, and other chemicals can prove dangerous in the wrong hands. Likewise, certain substances placed together can chemically react, resulting in explosions and even fires. Group like items, and store in cabinets that lock and provide ventilation. Also, before tossing these materials, contact your community's sanitation or fire department for proper disposal techniques.
Garage Sale Advice
Here are some tips to make your next sale more manageable.
Check with your local town hall or city council for any ordinances pertaining to garage sales. Also, be aware of any laws that limit or prohibit neighborhood advertising.
Plan. The more time for deciding what to sell and how much each item should cost, the better. Also, give iffy items the benefit of the doubt. One man's trash is another's treasure.
Advertise. Take advantage of community and workplace bulletin boards and local newspapers. Once your sale is over, don't forget to remove any signs or flyers.
If possible, keep all sale items out of sight or behind closed doors until you're ready for the mad dash to begin. Allow yourself just enough time to set up. (Tip: Post a sign on your garage door stating the correct starting time; stress that early comers will just have to wait.)
Arrange items either by category or by similar price. Make sure that prices are clearly marked.
Have an ample amount of change, along with $1 and $5 bills. Be willing to negotiate on price as well--within reason and with a smile, of course.
Getting ready to sell your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com!
Wednesday, November 23, 2011
Monday, November 21, 2011
Learn from the Mistakes of Others & Avoid Your Own
Provided By Realty Times
The same financial mistakes that are playing out on a global scale can undermine us as individuals, families, and small businesses. Would you rather make the same financial errors yourself, or simply avoid the mistakes of others?
When you watch, read, or listen to news of the European financial crisis, don’t just shake your head because the billions involved seem so removed from your daily challenges with the Loonie. Instead, zero in on three valuable lessons-learned from the Eurozone that can translate into financial resilience as real estate owners:
1. Economic Vulnerability: False sense of security à la “too big to fail” “Seventy percent of Italy’s debt matures in 2012," stated one international business expert in responding to questions concerning Italy’s greatest challenge as the European Crisis deepens. As I write this column, speculation concerning “too big to fail” has moved from lending institutions to countries. The occurrence of previously-impossible “big” financial failures, should have taught us that the impossible does happen in this globally-interconnected world. Ignoring increasing financial vulnerability got the European Union where it is today. What are you ignoring? What could sneak up on you?
Are you living with a “too big to fail” illusion about your own financial situation? Reigning in unrestrained spending may have helped weather the 2008 crisis, but as a long-term strategy it leaves a lot to be desired. If you’ve taken the smart step toward debt reduction, you’ve explored strategies for reducing the total amount of interest you’ll pay on your mortgage and other debt. However, even that may not be enough.
Knowledge is power as the next phase of the global crisis emerges. Have you crunched the numbers so you know exactly where you stand if you or your spouse experience pay cuts or lay offs? How long could you continue to meet debt payments and living expenses if one or both of you lost your job? Hoping this is not going to happen is not a strategy. Searching out ways to cut costs, barter goods or services, and earn additional income before a problem arises are strategies. Wait until something negative occurs and you may not have enough time for solutions to kick in.
Beware of false economies like not servicing the furnace or skipping the eavestrough clean. These and other essential annual maintenance tasks can cause very expensive problems if ignored. But isn’t that what happened in Europe?
2. Get Everyone Onside: Not cross-purposes, but common purpose Political machinations overshadow economic solutions. One minute a sound financial strategy has been announced; the next, a political manoeuver has squashed it. If you co-own real estate with a mortgage, taking the time to be sure you’ve agreed to deliberate repayment strategies and are both committed to them is essential. Paying off the mortgage more aggressively than through traditional monthly payments will require reworking of the family budget. If you don’t have a written monthly financial plan, money can slip through the cracks. Saving on mortgage interest carries less overall value if credit card debt is rising dramatically to cover the siphoning off of income into mortgage debt. Involve all family members, so they share the belt tightening and the triumph of reduced expenditures.
3. Keep the Facts Straight: Perceptions distract from reality European prosperity turned out to be an illusion. Perceptions of economic well-being mattered more than reality, and over-spending reigned. This glorified “keeping up with the Jones” is often parallelled in everyday life, and it can be just as destructive. Living beyond your means was an acceptable standard earlier in the 21st Century, but it endangers your financial future as national and provincial deficits rise. You know that, but have you really adapted spending habits to this reality? Too many property owners spend on dining out and travel, but let their real estate become out-dated, which in turn reduces value.
Of the overall housing market, Canadian homeowners have about C$2,035 trillion in equity, equivalent to about 68 per cent of the total housing value, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP,org) recently released consumer report, “Annual State of the Residential Mortgage Market in Canada.” Seventy-eight per cent of borrowers with a mortgage or line of credit have at least 25 per cent equity in their home. On the whole, unless you lose your job, CAAMP considers mortgages affordable for 84 per cent of borrowers at these interest rates and higher. However, that leaves 16 per cent unable to afford an increase of C$200 or more per month.
To preserve and build home equity, keep analyzing all that goes on around you. Lessons learned the hard way by others, even countries, in one context can translate into inspiration in yours.
World economic turmoil will continue for some time—turmoil which is now having an impact on our personal lives. Are you prepared to weather the
The same financial mistakes that are playing out on a global scale can undermine us as individuals, families, and small businesses. Would you rather make the same financial errors yourself, or simply avoid the mistakes of others?
When you watch, read, or listen to news of the European financial crisis, don’t just shake your head because the billions involved seem so removed from your daily challenges with the Loonie. Instead, zero in on three valuable lessons-learned from the Eurozone that can translate into financial resilience as real estate owners:
1. Economic Vulnerability: False sense of security à la “too big to fail” “Seventy percent of Italy’s debt matures in 2012," stated one international business expert in responding to questions concerning Italy’s greatest challenge as the European Crisis deepens. As I write this column, speculation concerning “too big to fail” has moved from lending institutions to countries. The occurrence of previously-impossible “big” financial failures, should have taught us that the impossible does happen in this globally-interconnected world. Ignoring increasing financial vulnerability got the European Union where it is today. What are you ignoring? What could sneak up on you?
Are you living with a “too big to fail” illusion about your own financial situation? Reigning in unrestrained spending may have helped weather the 2008 crisis, but as a long-term strategy it leaves a lot to be desired. If you’ve taken the smart step toward debt reduction, you’ve explored strategies for reducing the total amount of interest you’ll pay on your mortgage and other debt. However, even that may not be enough.
Knowledge is power as the next phase of the global crisis emerges. Have you crunched the numbers so you know exactly where you stand if you or your spouse experience pay cuts or lay offs? How long could you continue to meet debt payments and living expenses if one or both of you lost your job? Hoping this is not going to happen is not a strategy. Searching out ways to cut costs, barter goods or services, and earn additional income before a problem arises are strategies. Wait until something negative occurs and you may not have enough time for solutions to kick in.
Beware of false economies like not servicing the furnace or skipping the eavestrough clean. These and other essential annual maintenance tasks can cause very expensive problems if ignored. But isn’t that what happened in Europe?
2. Get Everyone Onside: Not cross-purposes, but common purpose Political machinations overshadow economic solutions. One minute a sound financial strategy has been announced; the next, a political manoeuver has squashed it. If you co-own real estate with a mortgage, taking the time to be sure you’ve agreed to deliberate repayment strategies and are both committed to them is essential. Paying off the mortgage more aggressively than through traditional monthly payments will require reworking of the family budget. If you don’t have a written monthly financial plan, money can slip through the cracks. Saving on mortgage interest carries less overall value if credit card debt is rising dramatically to cover the siphoning off of income into mortgage debt. Involve all family members, so they share the belt tightening and the triumph of reduced expenditures.
3. Keep the Facts Straight: Perceptions distract from reality European prosperity turned out to be an illusion. Perceptions of economic well-being mattered more than reality, and over-spending reigned. This glorified “keeping up with the Jones” is often parallelled in everyday life, and it can be just as destructive. Living beyond your means was an acceptable standard earlier in the 21st Century, but it endangers your financial future as national and provincial deficits rise. You know that, but have you really adapted spending habits to this reality? Too many property owners spend on dining out and travel, but let their real estate become out-dated, which in turn reduces value.
Of the overall housing market, Canadian homeowners have about C$2,035 trillion in equity, equivalent to about 68 per cent of the total housing value, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP,org) recently released consumer report, “Annual State of the Residential Mortgage Market in Canada.” Seventy-eight per cent of borrowers with a mortgage or line of credit have at least 25 per cent equity in their home. On the whole, unless you lose your job, CAAMP considers mortgages affordable for 84 per cent of borrowers at these interest rates and higher. However, that leaves 16 per cent unable to afford an increase of C$200 or more per month.
To preserve and build home equity, keep analyzing all that goes on around you. Lessons learned the hard way by others, even countries, in one context can translate into inspiration in yours.
World economic turmoil will continue for some time—turmoil which is now having an impact on our personal lives. Are you prepared to weather the
Friday, November 18, 2011
Ciabatta Stuffing with Chestnuts and Pancetta
Provided By FoodNetwork: Giada De Laurentiis, Everyday Italian
Ingredients
6 tablespoons (3/4 stick) butter
8 ounces pancetta, cut into 1/4-inch dice
2 large onions, finely chopped
2 carrots, peeled and finely chopped
3 celery stalks, finely chopped
2 tablespoons chopped fresh rosemary leaves
3 garlic cloves, chopped
2 (7.4-ounce) jars roasted peeled whole chestnuts, coarsely broken
1/4 cup chopped fresh Italian parsley leaves
1 pound day-old ciabatta bread, cut into 3/4-inch cubes
2/3 cup freshly grated Parmesan
1 cup (or more) canned low-salt chicken broth
Salt and freshly ground black pepper
2 large eggs, beaten to blend
Directions
Preheat oven to 350 degrees F.
Butter a 15 by 10 by 2-inch glass baking dish. Melt 2 tablespoons of butter in a heavy large skillet over medium heat. Add the pancetta and saute until crisp and golden, about 10 minutes. Using a slotted spoon, transfer the pancetta to a large bowl. Melt the remaining butter in the same skillet over medium-high heat. Add the onions, carrots, celery, rosemary, and garlic. Saute until the onions are very tender, about 12 minutes. Gently stir in the chestnuts and parsley. Transfer the onion mixture to the large bowl with the pancetta. Add the bread and Parmesan and toss to coat. Add enough broth to the stuffing mixture to moisten. Season the stuffing, to taste, with salt and pepper. Mix in the eggs.
Transfer the stuffing to the prepared dish. Cover with buttered foil, buttered side down, and bake until the stuffing is heated through, about 30 minutes. Uncover and continue baking until the top is crisp and golden, about 15 minutes longer.
Ingredients
6 tablespoons (3/4 stick) butter
8 ounces pancetta, cut into 1/4-inch dice
2 large onions, finely chopped
2 carrots, peeled and finely chopped
3 celery stalks, finely chopped
2 tablespoons chopped fresh rosemary leaves
3 garlic cloves, chopped
2 (7.4-ounce) jars roasted peeled whole chestnuts, coarsely broken
1/4 cup chopped fresh Italian parsley leaves
1 pound day-old ciabatta bread, cut into 3/4-inch cubes
2/3 cup freshly grated Parmesan
1 cup (or more) canned low-salt chicken broth
Salt and freshly ground black pepper
2 large eggs, beaten to blend
Directions
Preheat oven to 350 degrees F.
Butter a 15 by 10 by 2-inch glass baking dish. Melt 2 tablespoons of butter in a heavy large skillet over medium heat. Add the pancetta and saute until crisp and golden, about 10 minutes. Using a slotted spoon, transfer the pancetta to a large bowl. Melt the remaining butter in the same skillet over medium-high heat. Add the onions, carrots, celery, rosemary, and garlic. Saute until the onions are very tender, about 12 minutes. Gently stir in the chestnuts and parsley. Transfer the onion mixture to the large bowl with the pancetta. Add the bread and Parmesan and toss to coat. Add enough broth to the stuffing mixture to moisten. Season the stuffing, to taste, with salt and pepper. Mix in the eggs.
Transfer the stuffing to the prepared dish. Cover with buttered foil, buttered side down, and bake until the stuffing is heated through, about 30 minutes. Uncover and continue baking until the top is crisp and golden, about 15 minutes longer.
Wednesday, November 16, 2011
Rockwall Stats
Provided By Zwillow
Are you interested in learning what the stats are in your neighborhood? Contact us at 972.772.7000 or email us at frontdesk552@kw.com.
Are you interested in learning what the stats are in your neighborhood? Contact us at 972.772.7000 or email us at frontdesk552@kw.com.
Monday, November 14, 2011
More Markets Show Signs of Improving-Texas is Dominating!
Provided By Realty Times
The last few months have shown marked improvement in certain key markets across the country. This report comes fro the National Association of Home Builders/First American Improving Markets Index (IMI). According to the NAHB, "The index identifies metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices."
Making the list in November are:
Alexandria, LA
Amarillo, TX
Anchorage, AK
Bismarck, ND
Casper, WY
Cheyenne, WY
Corpus Christi, TX
Davenport, IA
Fairbanks, AK
Fayetteville, NC
Fort Collins, CO
Hinesville, GA
Houma, LA
Jonesboro, AR
Kankakee, IL
Lima, OH
McAllen, TX
Midland, TX
Monroe, LA
New Orleans, LA
Odessa, TX
Pine Bluff, AR
Pittsburgh, PA
Sherman, TX
Sumter, SC
Tyler, TX
Waco, TX
Waterloo, IA
Williamsport, PA
Winston-Salem, NC
Seven of these improving markets are found in Texas. Why is this? "Texas continues to dominate the list of improving housing markets in November, increasing its net number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery."
Also of note was the general lack of major metro markets on this month's list. "The November IMI remains heavily weighted by smaller cities, with Pittsburgh and New Orleans as the only major metros represented," said NAHB Chief Economist David Crowe. "This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent."
How can you go about assessing your own local market? You can start by looking at the same key identifiers the NAHB uses. Have their been increases in housing permits? What is the current rate of pending sales/contracts in your community? Are homes sitting on the market longer than 6 months?
Perhaps most important is to consider the state of the local economy. What is your local unemployment rate and is it on the rise or decline? The jobs markets is key to the health of many local housing markets for a simple reason. People with steady employment make moves. Those who are unemployed or struggling to keep the job they have are not generally inclined to jump into the large financial decision buying a home is.
In order to find this information, you'll need to enlist the help of several local professionals. Local real estate agents have access to a wealth of local information, including days on market, median sales prices, and they can even provide you with a market analysis on your own home. Local county offices may have public records that can show you the latest jobs trends for your city and region.
The figures are mixed for markets across the country. Some areas are seeing marked improvement, while others continue to face an uphill battle.
If you are interested in learning more about the housing market in your area, contact us at 972.772.7000 or email us at frontdesk552@kw.com.
The last few months have shown marked improvement in certain key markets across the country. This report comes fro the National Association of Home Builders/First American Improving Markets Index (IMI). According to the NAHB, "The index identifies metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices."
Making the list in November are:
Alexandria, LA
Amarillo, TX
Anchorage, AK
Bismarck, ND
Casper, WY
Cheyenne, WY
Corpus Christi, TX
Davenport, IA
Fairbanks, AK
Fayetteville, NC
Fort Collins, CO
Hinesville, GA
Houma, LA
Jonesboro, AR
Kankakee, IL
Lima, OH
McAllen, TX
Midland, TX
Monroe, LA
New Orleans, LA
Odessa, TX
Pine Bluff, AR
Pittsburgh, PA
Sherman, TX
Sumter, SC
Tyler, TX
Waco, TX
Waterloo, IA
Williamsport, PA
Winston-Salem, NC
Seven of these improving markets are found in Texas. Why is this? "Texas continues to dominate the list of improving housing markets in November, increasing its net number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery."
Also of note was the general lack of major metro markets on this month's list. "The November IMI remains heavily weighted by smaller cities, with Pittsburgh and New Orleans as the only major metros represented," said NAHB Chief Economist David Crowe. "This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent."
How can you go about assessing your own local market? You can start by looking at the same key identifiers the NAHB uses. Have their been increases in housing permits? What is the current rate of pending sales/contracts in your community? Are homes sitting on the market longer than 6 months?
Perhaps most important is to consider the state of the local economy. What is your local unemployment rate and is it on the rise or decline? The jobs markets is key to the health of many local housing markets for a simple reason. People with steady employment make moves. Those who are unemployed or struggling to keep the job they have are not generally inclined to jump into the large financial decision buying a home is.
In order to find this information, you'll need to enlist the help of several local professionals. Local real estate agents have access to a wealth of local information, including days on market, median sales prices, and they can even provide you with a market analysis on your own home. Local county offices may have public records that can show you the latest jobs trends for your city and region.
The figures are mixed for markets across the country. Some areas are seeing marked improvement, while others continue to face an uphill battle.
If you are interested in learning more about the housing market in your area, contact us at 972.772.7000 or email us at frontdesk552@kw.com.
Friday, November 11, 2011
The moving parts of an ARM
Provided By Trulia.com
Adjustable Rate Mortgages, or ARMs, got a bad name in the housing crisis that culminated around 2005. Inherently, an ARM is neither a good nor a bad thing—just a legitimate financial instrument that can be used or abused, like a bottle of wine or a sportsmans rifle.
With an ARM, the interest rate changes periodically, usually in some relation to an index such as COFI, the Cost of Funds Index; or LIBOR, the London Interbank Offered Rate. You can find both of these popular indices published every day in the Wall Street Journal.
Initially, lenders often charge lower interest rates for ARMs than for fixed-rate mortgages. This makes the ARM easier to afford, at first, than a fixed-rate mortgage for the same amount. But upward-adjusting rates were the downfall of many homeowners who didn't understand the loan terms they agreed to. Unexpected rate increases led to a common emotional state known as "payment shock."
There are several types of ARMs, including hybrids, with names like 3/1 and 5/1. The first number (in this case, 3 or 5) tells you how many years until the first interest rate adjustment occurs. The second number (the 1) tells you how often the rate will adjust thereafter. There are interest-only ARMs, which allow you to pay only the interest for a set period, perhaps as long as 10 years, and payment-option ARMs, where you choose among various payment amount options.
At a minimum, you should understand the "moving parts" of any ARM:
The initial rate and payment
The initial rate and payment amount on an ARM will remain in effect for a limited period ranging from just one month to five years or more. Rates in the later years of a loan may vary greatly from earlier years, even if prevailing interest rates are stable.
The adjustment period
The interest rate of an ARM, along with the monthly payment, may change monthly, quarterly, yearly, or after three, four, or five years. The period between rate changes is called the adjustment period. A loan with an adjustment period of one year is called a one-year ARM and its interest rate and payment can change annually. A loan with a three-year adjustment period is called a three-year ARM.
The index
Lenders base ARM rates on a variety of indexes, such as COFI and LIBOR, mentioned earlier. If the index rate moves up, so does your interest rate, and usually, so does your monthly payment. If the index rate goes down, your monthly payment could go down, but not all ARMs adjust downward. The terms are found in the fine print of the loan. Your payments will also be affected by "caps" and perhaps by lower limits affecting how high or low your rate can go.
The margin
To set the interest rate on an ARM, lenders add a few percentage points to the index rate. That addition is called the margin, and in most cases it's constant over the life of the loan. The "fully indexed" rate equals the margin plus the full index. In a period when the loan rate is less than the fully indexed rate, the rate is said to be "discounted." For example, if the lender uses an index that currently is 4.5 percent and adds a 2.5 percent margin, the fully indexed rate is 7 percent.
If the index on this loan rose to 5.5 percent, the fully indexed rate would be 8 percent. (5.5 plus 2.5 percent) A lender may base the amount of the margin in part on your credit history and the better your credit, the lower the margin. In comparing ARMs, look at both the index and margin for each program.
Interest Rate Caps
Interest rate caps place a limit on the amount your interest rate can increase. Interest caps can take two forms:
A periodic adjustment cap limits the amount the interest rate can adjust up or down from one adjustment period to the next after the first adjustment. A typical sort of cap per period is one percent. Suppose your initial rate is 5 percent and your periodic adjustment cap is one percent. Even if the underlying index (such as LIBOR) jumps by several percent, your new rate can only go to 6 percent in that year.
A lifetime cap limits the interest-rate increase over the life of the loan. All ARMs must have a lifetime cap, by law. Suppose your ARM starts out with a 6 percent rate and the loan has a 12 percent lifetime cap. The rate can never exceed 12 percent. Even if the underlying index rate increases 1 percent each year for a decade, your highest possible rate is 12 percent.
Payment caps
In addition to interest rate caps, many ARMs, including so-called payment-option ARMs, limit the amount your monthly payment may increase at the time of each adjustment. If your loan has a payment increase cap of 7 percent, your monthly payment won't increase more than that amount even if interest rates rise more. But any interest you don't pay will be added to the loan balance. A payment cap can limit the increase to your monthly payments but can also add to the amount you owe. (This is called negative amortization.)
For more information about mortgages give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Adjustable Rate Mortgages, or ARMs, got a bad name in the housing crisis that culminated around 2005. Inherently, an ARM is neither a good nor a bad thing—just a legitimate financial instrument that can be used or abused, like a bottle of wine or a sportsmans rifle.
With an ARM, the interest rate changes periodically, usually in some relation to an index such as COFI, the Cost of Funds Index; or LIBOR, the London Interbank Offered Rate. You can find both of these popular indices published every day in the Wall Street Journal.
Initially, lenders often charge lower interest rates for ARMs than for fixed-rate mortgages. This makes the ARM easier to afford, at first, than a fixed-rate mortgage for the same amount. But upward-adjusting rates were the downfall of many homeowners who didn't understand the loan terms they agreed to. Unexpected rate increases led to a common emotional state known as "payment shock."
There are several types of ARMs, including hybrids, with names like 3/1 and 5/1. The first number (in this case, 3 or 5) tells you how many years until the first interest rate adjustment occurs. The second number (the 1) tells you how often the rate will adjust thereafter. There are interest-only ARMs, which allow you to pay only the interest for a set period, perhaps as long as 10 years, and payment-option ARMs, where you choose among various payment amount options.
At a minimum, you should understand the "moving parts" of any ARM:
The initial rate and payment
The initial rate and payment amount on an ARM will remain in effect for a limited period ranging from just one month to five years or more. Rates in the later years of a loan may vary greatly from earlier years, even if prevailing interest rates are stable.
The adjustment period
The interest rate of an ARM, along with the monthly payment, may change monthly, quarterly, yearly, or after three, four, or five years. The period between rate changes is called the adjustment period. A loan with an adjustment period of one year is called a one-year ARM and its interest rate and payment can change annually. A loan with a three-year adjustment period is called a three-year ARM.
The index
Lenders base ARM rates on a variety of indexes, such as COFI and LIBOR, mentioned earlier. If the index rate moves up, so does your interest rate, and usually, so does your monthly payment. If the index rate goes down, your monthly payment could go down, but not all ARMs adjust downward. The terms are found in the fine print of the loan. Your payments will also be affected by "caps" and perhaps by lower limits affecting how high or low your rate can go.
The margin
To set the interest rate on an ARM, lenders add a few percentage points to the index rate. That addition is called the margin, and in most cases it's constant over the life of the loan. The "fully indexed" rate equals the margin plus the full index. In a period when the loan rate is less than the fully indexed rate, the rate is said to be "discounted." For example, if the lender uses an index that currently is 4.5 percent and adds a 2.5 percent margin, the fully indexed rate is 7 percent.
If the index on this loan rose to 5.5 percent, the fully indexed rate would be 8 percent. (5.5 plus 2.5 percent) A lender may base the amount of the margin in part on your credit history and the better your credit, the lower the margin. In comparing ARMs, look at both the index and margin for each program.
Interest Rate Caps
Interest rate caps place a limit on the amount your interest rate can increase. Interest caps can take two forms:
A periodic adjustment cap limits the amount the interest rate can adjust up or down from one adjustment period to the next after the first adjustment. A typical sort of cap per period is one percent. Suppose your initial rate is 5 percent and your periodic adjustment cap is one percent. Even if the underlying index (such as LIBOR) jumps by several percent, your new rate can only go to 6 percent in that year.
A lifetime cap limits the interest-rate increase over the life of the loan. All ARMs must have a lifetime cap, by law. Suppose your ARM starts out with a 6 percent rate and the loan has a 12 percent lifetime cap. The rate can never exceed 12 percent. Even if the underlying index rate increases 1 percent each year for a decade, your highest possible rate is 12 percent.
Payment caps
In addition to interest rate caps, many ARMs, including so-called payment-option ARMs, limit the amount your monthly payment may increase at the time of each adjustment. If your loan has a payment increase cap of 7 percent, your monthly payment won't increase more than that amount even if interest rates rise more. But any interest you don't pay will be added to the loan balance. A payment cap can limit the increase to your monthly payments but can also add to the amount you owe. (This is called negative amortization.)
For more information about mortgages give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Wednesday, November 9, 2011
Five Great Things about Homeownership
Provided By Realty Times
If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.
Take a look at five short and sweet reasons that homeownership is great!
1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.
2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.
3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.
4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!
5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.
Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!
If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.
Take a look at five short and sweet reasons that homeownership is great!
1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.
2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.
3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.
4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!
5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.
Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!
Monday, November 7, 2011
Sharing our Table
Dear Rockwall Community,
We are now accepting non perishable food donations for families in need in.
Help us stuff the Rockwall Food Pantry...because no one should go hungry!
*Chili
*Soups
*Canned Goods
*Boxed Items (containing meats)
*Cereals
*Packaged Fruits
Drop off box is located inside the entrance of Keller Williams Realty. For more information please contact us at 972.772.7000 or email us at frontdesk552@kw.com.
"Thanksgiving, after all, is a word of action."
-W.J. Cameron
We are now accepting non perishable food donations for families in need in.
Help us stuff the Rockwall Food Pantry...because no one should go hungry!
*Chili
*Soups
*Canned Goods
*Boxed Items (containing meats)
*Cereals
*Packaged Fruits
Drop off box is located inside the entrance of Keller Williams Realty. For more information please contact us at 972.772.7000 or email us at frontdesk552@kw.com.
"Thanksgiving, after all, is a word of action."
-W.J. Cameron
Friday, November 4, 2011
You Can't Keep A Good Homebuyer Down
Provided By Realty Times
An estimated 2 million home buyers are poised to take the plunge just as soon as the economy returns from the deep.
That's because Americans still place a high value on homeownership, but qualifying for a mortgage and raising a down payment in an economy that won't produce jobs, keeps many of them sitting on the fence.
Eighty-nine percent of owners and 59 percent of renters feel that homeownership is important to the American family while 87 percent of owners and 73 percent of renters feel homeownership is an economic cornerstone, according to Hanley Wood's Housing 360 Survey.
Indeed, housing, including shelter itself, household operations, insurance, fuels and utilities, water, sewage and trash services and furnishings, among other expenditures, account for about 40 percent of the Consumer Price Index, an index of consumer expenditures, according to the U.S. Bureau of Labor Statistics.
Approximately one in three renters and about one in five existing homeowners think it's a good time to buy a home and plan to make a move to buy in the next two years, according to the survey.
The survey was electronically delivered to homeowners and renters from a national sample of adults 20 years of age and older in June to early July 2011 resulting in 3,005 results, including 1,954 homeowners and 1,051 renters.
"We thought people would be soured after watching home values fall but instead we found the typical American still places high value on homeownership," said Frank Anton, CEO of Hanley Wood a media company and data research outfit serving the housing and construction industries.
"We found this holds across all demographic groups and across the country, even in hard-hit places like Nevada and Arizona where there have been 50 percent or more declines in value. The increase in the rise of rental rates in many markets is one factor driving people to consider buying," Anton added.
Survey findings indicate as many as two million potential home buying consumers are waiting to jump into the market when the time is right.
Home buyers and renters said there is no great urgency to buy, due to soft economic conditions. Many of them are satisfied with perching on the fence, for now.
They are perched trying to determine how to overcome the challenges of stiff underwriting and, even though some home prices are half what they were a half decade ago, it's also tough coming up with enough cash for a down payment and enough left over to show lenders they are viable home loan holders.
"There are obstacles in the way of home buying. The over-correction in the mortgage market is a drag on the process. We've gone from one extreme to the other and it's stalling the housing market and therefore the economy," said Kent W. Colton, president of The Colton Housing Group and senior fellow at Harvard University Joint Center for Housing Studies.
The survey covered 70 questions relating to the decision-making process and attitudes on homeownership, renting, remodeling, financing, home buying, gasoline prices, household relationships, and retirement planning. Sixty two percent of respondents were first-time homeowners.
The survey also found:
• Seventy-two percent of owners and 59 percent of renters think now is a good or very good time to buy.
• Twenty-nine percent of owners and 12 percent of renters would prefer to buy a new home; 34 percent of owners and 41 percent of renters would prefer to buy an existing home. People prefer new homes because they are new and there is less maintenance. They prefer existing homes because they are more affordable and they want to live in an existing community.
• Doubling up/multi-generational trends have increased with 30 percent of respondents saying they've "doubled up" and live with adult children or parents.
• It's a good time to remodel. Forty-two percent of owners say now is a good time to remodel. Top remodeling priorities are maintenance and energy efficiency. Most homeowners will pay for remodeling from personal savings.
• Retiring in place remains popular with 60 percent of homeowners planning to stay in their current home for their entire retirement.
Being a homebuyer can be stressful, let us work for you and eliminate the stress! Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
An estimated 2 million home buyers are poised to take the plunge just as soon as the economy returns from the deep.
That's because Americans still place a high value on homeownership, but qualifying for a mortgage and raising a down payment in an economy that won't produce jobs, keeps many of them sitting on the fence.
Eighty-nine percent of owners and 59 percent of renters feel that homeownership is important to the American family while 87 percent of owners and 73 percent of renters feel homeownership is an economic cornerstone, according to Hanley Wood's Housing 360 Survey.
Indeed, housing, including shelter itself, household operations, insurance, fuels and utilities, water, sewage and trash services and furnishings, among other expenditures, account for about 40 percent of the Consumer Price Index, an index of consumer expenditures, according to the U.S. Bureau of Labor Statistics.
Approximately one in three renters and about one in five existing homeowners think it's a good time to buy a home and plan to make a move to buy in the next two years, according to the survey.
The survey was electronically delivered to homeowners and renters from a national sample of adults 20 years of age and older in June to early July 2011 resulting in 3,005 results, including 1,954 homeowners and 1,051 renters.
"We thought people would be soured after watching home values fall but instead we found the typical American still places high value on homeownership," said Frank Anton, CEO of Hanley Wood a media company and data research outfit serving the housing and construction industries.
"We found this holds across all demographic groups and across the country, even in hard-hit places like Nevada and Arizona where there have been 50 percent or more declines in value. The increase in the rise of rental rates in many markets is one factor driving people to consider buying," Anton added.
Survey findings indicate as many as two million potential home buying consumers are waiting to jump into the market when the time is right.
Home buyers and renters said there is no great urgency to buy, due to soft economic conditions. Many of them are satisfied with perching on the fence, for now.
They are perched trying to determine how to overcome the challenges of stiff underwriting and, even though some home prices are half what they were a half decade ago, it's also tough coming up with enough cash for a down payment and enough left over to show lenders they are viable home loan holders.
"There are obstacles in the way of home buying. The over-correction in the mortgage market is a drag on the process. We've gone from one extreme to the other and it's stalling the housing market and therefore the economy," said Kent W. Colton, president of The Colton Housing Group and senior fellow at Harvard University Joint Center for Housing Studies.
The survey covered 70 questions relating to the decision-making process and attitudes on homeownership, renting, remodeling, financing, home buying, gasoline prices, household relationships, and retirement planning. Sixty two percent of respondents were first-time homeowners.
The survey also found:
• Seventy-two percent of owners and 59 percent of renters think now is a good or very good time to buy.
• Twenty-nine percent of owners and 12 percent of renters would prefer to buy a new home; 34 percent of owners and 41 percent of renters would prefer to buy an existing home. People prefer new homes because they are new and there is less maintenance. They prefer existing homes because they are more affordable and they want to live in an existing community.
• Doubling up/multi-generational trends have increased with 30 percent of respondents saying they've "doubled up" and live with adult children or parents.
• It's a good time to remodel. Forty-two percent of owners say now is a good time to remodel. Top remodeling priorities are maintenance and energy efficiency. Most homeowners will pay for remodeling from personal savings.
• Retiring in place remains popular with 60 percent of homeowners planning to stay in their current home for their entire retirement.
Being a homebuyer can be stressful, let us work for you and eliminate the stress! Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
Wednesday, November 2, 2011
Is a Smaller Home for You?
Provided By Realty Times
Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with smaller price tags. During the boom era in the mid-2000's, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn't "helped."
So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.
Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.
There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.
Smaller homes mean reduced costs across the board. Let's examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!
The same goes for home insurance and, let's not forget, the actual purchase price of the home. Reduced size means reduced costs.
Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means fewer lights to be left on!
Today's standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.
These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.
These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn't sound like a one room shack! It's simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.
Just 60 years ago, when many people's grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.
If you're thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that smaller houses can be just as charming, functional, and full of love!
If you are looking at home options give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with smaller price tags. During the boom era in the mid-2000's, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn't "helped."
So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.
Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.
There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.
Smaller homes mean reduced costs across the board. Let's examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!
The same goes for home insurance and, let's not forget, the actual purchase price of the home. Reduced size means reduced costs.
Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means fewer lights to be left on!
Today's standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.
These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.
These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn't sound like a one room shack! It's simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.
Just 60 years ago, when many people's grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.
If you're thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that smaller houses can be just as charming, functional, and full of love!
If you are looking at home options give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
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