Daily Real Estate News (Originally Published March 13, 2007)
Condos Still a Popular Option for Buyers
With lifestyle and affordability driving demand, more than half of all condo buyers say they didn’t consider any other style of housing, according to a recent National Association of Home Builders' survey of condo buyers.
Continued demand by both young, well-paid professionals (singles or couples), who want to own their first home close to urban amenities, and older households, who want to remain in the suburbs but shed the maintenance burden of a house, is expected to stabilize the condo market.
Even though market conditions are below levels of a year ago, condo builder confidence is on the rise, according to NAHB’s quarterly survey of multifamily builders and developers. About half — the highest number since the end of 2005 — say they’re optimistic about market conditions over the next six months. Additionally, the number of prospective buyers looking at condos was up from the previous quarter.
Of condo buyers, more than one-half, 54 percent, have never owned a home, with the greatest proportion of first-time buyers, 86 percent, among those under 35. Preferences ranged equally among all condo types — low rise, mid rise, high rise, and town house — for all groups except previous condo owners who gravitate toward mid- and high-rise buildings.
Most-Desired Condo Locations
Respondents to NAHB's survey identified these locations as their preferred places to buy a condo:
Close-in suburbs: 46%
Outer suburbs: 28%
Inner city: 19%
Rural areas: 5%
Motivations for Buying a Condo
Why go condo? It depends. Respondents say these are the reasons why they opted for a condo over a traditional single-family home or other housing style:
Price and location: 70%
Design and size of the unit: 66%
Desirability of a particular neighborhood: 64%
Good investment: 57%
Fewer than half mentioned low condo fees, parking, pool, and tennis courts, the proximity of public transportation, porches, and valet services as important motivations.
Common Condo Amenities
Just under half of the buildings offered swimming pools and cable/satellite TV. About one-quarter offered each of the following: a fitness room, Internet access, a BBQ area, and a dog walking area.
Amenities used most often by respondents included: cable/satellite TV, 88 percent; Internet, 82 percent; swimming pool, 72 percent; and fitness room, 64 percent. Even though fewer than 20 percent of properties offer concierge services, such services are highly used, with 71 percent of owners saying they use them.
— By Camilla McLaughlin for REALTOR Magazine Online
Thursday, March 29, 2007
Tuesday, March 27, 2007
20% Down Payment Becoming a Rare Sight
Daily Real Estate News (Originally Published February 23, 2007)
20% Down Payment Becoming a Rare Sight
Fewer buyers are making down payments on their purchase of a new home, and even fewer are forking over the 20-percent sum that was once the norm, according to a new study by the California Association of REALTORS®.
Nationwide, nearly 30 percent of buyers and 45 percent of first-time buyers nationwide no longer make down payments, the study said.
In California, the trend is less pronounced. While 41 percent of home buyers there put nothing down, a solid 20 percent finance every dollar of their home purchase, up from 4.5 percent in 2000. Buyers blame rising home prices, which make raising even a 10 percent down payment a challenge for many people.
"How many people are going to scrape together $40,000 in a reasonable amount of time? asks Doug Self, a recent home buyer from Sacramento, Calif.
“That's three years of socking away a grand a month and not having anything go wrong. That's just not realistic.”
Source: The Associated Press (02/22/2007)
20% Down Payment Becoming a Rare Sight
Fewer buyers are making down payments on their purchase of a new home, and even fewer are forking over the 20-percent sum that was once the norm, according to a new study by the California Association of REALTORS®.
Nationwide, nearly 30 percent of buyers and 45 percent of first-time buyers nationwide no longer make down payments, the study said.
In California, the trend is less pronounced. While 41 percent of home buyers there put nothing down, a solid 20 percent finance every dollar of their home purchase, up from 4.5 percent in 2000. Buyers blame rising home prices, which make raising even a 10 percent down payment a challenge for many people.
"How many people are going to scrape together $40,000 in a reasonable amount of time? asks Doug Self, a recent home buyer from Sacramento, Calif.
“That's three years of socking away a grand a month and not having anything go wrong. That's just not realistic.”
Source: The Associated Press (02/22/2007)
Monday, March 26, 2007
How to Make an Empty House Look Lived-In
Daily Real Estate News (Originally Published March 12, 2007)
How to Make an Empty House Look Lived-In
Whether the sellers have already moved out of their home, or if they're just on a spring break vacation, it's always smart to make a vacant home look like it's lived-in. After all, empty homes are easy targets for theives and other criminals. The Florida Association of REALTORS® offers this advice for making a home look like it's occupied:
* Install timers on interior lights so they turn on and off periodically. Many timers cost less than $25. Some more costly products are capable of varying the time that your lights turn on. Also consider leaving your radio on and tuned to an all-news or talk show station.
* Install exterior lights that are controlled by motion sensors to make the home a more difficult target for prowlers.
* Discontinue newspaper delivery temporarily. Be sure to give several days notice so the order can be processed in time. Ask someone to collect any free papers or sales materials left near the house.
* Have the post office hold mail. This can be initiated by calling the U.S. Postal Service at 1-800-275-8777 and listening to the option for putting a vacation hold on your mail. You can make arrangements up to 30 days in advance.
* Ask a friend or neighbor to park a car in the driveway occasionally.
* If there's a home alarm, tell the alarm company you will be away. If possible, provide a phone number where you can be reached.
* If you're going to be away for two weeks or more, have a friend or lawn service mow the lawn.
— REALTOR® Magazine Online
How to Make an Empty House Look Lived-In
Whether the sellers have already moved out of their home, or if they're just on a spring break vacation, it's always smart to make a vacant home look like it's lived-in. After all, empty homes are easy targets for theives and other criminals. The Florida Association of REALTORS® offers this advice for making a home look like it's occupied:
* Install timers on interior lights so they turn on and off periodically. Many timers cost less than $25. Some more costly products are capable of varying the time that your lights turn on. Also consider leaving your radio on and tuned to an all-news or talk show station.
* Install exterior lights that are controlled by motion sensors to make the home a more difficult target for prowlers.
* Discontinue newspaper delivery temporarily. Be sure to give several days notice so the order can be processed in time. Ask someone to collect any free papers or sales materials left near the house.
* Have the post office hold mail. This can be initiated by calling the U.S. Postal Service at 1-800-275-8777 and listening to the option for putting a vacation hold on your mail. You can make arrangements up to 30 days in advance.
* Ask a friend or neighbor to park a car in the driveway occasionally.
* If there's a home alarm, tell the alarm company you will be away. If possible, provide a phone number where you can be reached.
* If you're going to be away for two weeks or more, have a friend or lawn service mow the lawn.
— REALTOR® Magazine Online
Saturday, March 24, 2007
Outdoor art - Landscaping That Sells
Architecture Coach By Barbara Ballinger
This article was originally published on: 03/01/2007
Outdoor art - Landscaping That Sells
Attractive landscaping is one of the best ways to make a good first impression on prospective buyers and show that a home is loved.
Though a well-designed landscape can be simple, it also can move far beyond a velvety lawn and colorful flower beds to encompass trees, shrubs, irrigation, hardscaping, and lighting. By making informed choices, home owners can transform their properties, whether they’re selling or just moved in and plan to stay for years.
Before jumping into a landscaping-improvement project, it helps to have a general knowledge of what kind of plants would thrive on the property, says Steve Jones, (a.k.a. “The Plant Man”) owner of Greenwood Nursery in McMinnville, Tenn. Home owners should do some research to learn about their yard’s various components:
Soil condition.
To analyze soil, home owners should contact a local college extension service or buy a kit from a garden center. An analysis determines the pH balance. Most plants thrive in near-neutral pH conditions but some like slightly acidic soil, says Jones.
Drainage.
The type of soil — sandy, silty, clay, or loam — will affect drainage. For example, clay soil may drain poorly, which can prevent nutrients and oxygen from reaching plant roots, but soil can be modified, Jones says.
Sunlight.
Home owners should stand outside at different times of the day to see when, where, and how much sun strikes their yard, Jones says.
Hardiness zone.
Also referred to as climate zones, hardiness zones are a guide to help you know which plants will grow where you live, so you don't plant materials that will soon die just because they can't survive the region's temperatures, according to BackyardGardener.com, which provides a hardiness zone map on its Web site.
Next Steps: Make a Budget, Hire Help
A budget will largely determine the scope of a project. If home owners want to replicate the cover photo from a recent Fine Gardening magazine, they should be prepared to pay dearly. Plants, soil, and all the extras that make a garden picture-perfect, can really add up, Jones says. For example, a single 8-foot-tall, 1-inch-caliper, shade-loving red maple may cost $60 to $70, he says.
But buyers should remember to factor in the cost of hiring a gardener, landscaper, or arborist. A gardener may be sufficient for home owners seeking to tidy up to improve curb appeal, while a landscape designer or architect is usually best for those who want to do more extensive work. Either professional can develop a master plan to enhance the exterior, make the site look attractive from the inside out, and keep materials safe from weather, insects, and animals. Many charge between $75 and $150 an hour — or more, depending on the area of the country and complexity of the project, says landscape designer Tim Thoelecke of American Academy of Landscape Design in Glenview, Ill.
For those planning long-term improvements to the property, rather than simple pre-sale enhancements, an arborist also can be brought on board to inspect the condition of trees, the lawn, and the drainage system, says Jones.
When budgeting for a landscaping overhaul, home owners should plan to spend about 10 percent of the value of the home, says Clett. To achieve a grander look, a bigger budget of 15 percent may be necessary, says Thoelecke. But if you’re going far grander — perhaps duplicating the closely clipped lawn at the Augusta National Golf Club, site of the Masters Tournament — even more may be in order.
6 Practical Project Ideas
Here are some simple projects that experts say will make a big impact on the property’s appearance — and possibly boost resale value.
Plant trees.
Trees look nice, cut down on heating and cooling costs, and can even help a home sell for more money, the USDA Forest Service says. Properly placing just three trees can save an average household between $100 and $250 in annual energy bills, according to the U.S. Department of Energy. And a report from Arbor National Mortgage found that 84 percent of practitioners believe that a house on a treed lot would fetch at least 20 more than one on a lot without trees.
Go for year-round color.
Rather than make do with empty beds and a brown lawn in winter, home owners can pick materials that remain green all year. Examples: evergreen arborvitae, junipers, and boxwood, says Jones.
Help the environment.
There are dozens of ways to be a good environmental steward. A rain garden can retain water rather than send it into the nearest storm sewer. In drought-prone areas, xeriscape plants require less water. Large shade trees can screen a roof and windows from sun and block cold wind and air, says Russell Clett, senior landscape architect for Valley Crest Estate Gardens in Calabasas, Calif.
Make your yard livable.
A yard can be transformed into livable outdoor “rooms.” High on the wish list are well-equipped kitchens, sometimes with pizza ovens and fire pits, and the newest star — media rooms. Clett installed a projection screen so one client could float in his pool and watch movies.
Just add water.
Everyone loves water’s soothing sound, whether it cascades into a pond, fills a fountain, or churns in a hot tub.
Build a pergola.
A pergola — a set of columns supporting a roof of trelliswork on which climbing plants can grow — add architectural interest, vertical growing space, and shade.
For Home Owners on a Budget
Landscaping doesn’t have to cost as much as your house. To cut costs, a plan can be installed in stages, says Thoelecke Jr. There also are many affordable improvements home owners can make to enhance curb appeal. Start by trimming bushes and pruning dead limbs in front of windows to avoid blocking views, says Brian Huggler, ABR®, CRS®, associate broker with Huggler & Bashore in Lansing, Mich.
“If buyers can’t see a home, you can’t sell it,” adds Sandra Holmes, owner of Home Staging Concepts in Ft. Lauderdale, Fla. Other ideas from the experts:
* Clear away lawn art, toys and other “clutter.”
* Edge beds and add fresh mulch.
* Paint or seal terraces and replace rotted wood.
* Add a touch of color. A few pots of tulips in March work magic; red and white colors add the most punch, says Jones.
* Use container gardens. Pots are an affordable, portable way to line a path, embellish an entry, grow herbs, and decorate indoor rooms when weather changes.
Encourage home owners to avoid planting materials too close, making beds too small, or overwatering, Jones says. They — and you — can learn more about landscaping by reading books, visiting botanic gardens, participating in local garden walks, and even by chatting with neighbors who have impressive gardens.
But most of all, remind clients to have fun, Jones says. “Plants are resilient. Home owners really can’t make a mistake.”
Learn More: Helpful Links
National Gardening Association
The National Arbor Day Foundation
iVillage's GardenWeb
LandscapingIdeasOnline.com
HGTV: Landscaping/Design
This article was originally published on: 03/01/2007
Outdoor art - Landscaping That Sells
Attractive landscaping is one of the best ways to make a good first impression on prospective buyers and show that a home is loved.
Though a well-designed landscape can be simple, it also can move far beyond a velvety lawn and colorful flower beds to encompass trees, shrubs, irrigation, hardscaping, and lighting. By making informed choices, home owners can transform their properties, whether they’re selling or just moved in and plan to stay for years.
Before jumping into a landscaping-improvement project, it helps to have a general knowledge of what kind of plants would thrive on the property, says Steve Jones, (a.k.a. “The Plant Man”) owner of Greenwood Nursery in McMinnville, Tenn. Home owners should do some research to learn about their yard’s various components:
Soil condition.
To analyze soil, home owners should contact a local college extension service or buy a kit from a garden center. An analysis determines the pH balance. Most plants thrive in near-neutral pH conditions but some like slightly acidic soil, says Jones.
Drainage.
The type of soil — sandy, silty, clay, or loam — will affect drainage. For example, clay soil may drain poorly, which can prevent nutrients and oxygen from reaching plant roots, but soil can be modified, Jones says.
Sunlight.
Home owners should stand outside at different times of the day to see when, where, and how much sun strikes their yard, Jones says.
Hardiness zone.
Also referred to as climate zones, hardiness zones are a guide to help you know which plants will grow where you live, so you don't plant materials that will soon die just because they can't survive the region's temperatures, according to BackyardGardener.com, which provides a hardiness zone map on its Web site.
Next Steps: Make a Budget, Hire Help
A budget will largely determine the scope of a project. If home owners want to replicate the cover photo from a recent Fine Gardening magazine, they should be prepared to pay dearly. Plants, soil, and all the extras that make a garden picture-perfect, can really add up, Jones says. For example, a single 8-foot-tall, 1-inch-caliper, shade-loving red maple may cost $60 to $70, he says.
But buyers should remember to factor in the cost of hiring a gardener, landscaper, or arborist. A gardener may be sufficient for home owners seeking to tidy up to improve curb appeal, while a landscape designer or architect is usually best for those who want to do more extensive work. Either professional can develop a master plan to enhance the exterior, make the site look attractive from the inside out, and keep materials safe from weather, insects, and animals. Many charge between $75 and $150 an hour — or more, depending on the area of the country and complexity of the project, says landscape designer Tim Thoelecke of American Academy of Landscape Design in Glenview, Ill.
For those planning long-term improvements to the property, rather than simple pre-sale enhancements, an arborist also can be brought on board to inspect the condition of trees, the lawn, and the drainage system, says Jones.
When budgeting for a landscaping overhaul, home owners should plan to spend about 10 percent of the value of the home, says Clett. To achieve a grander look, a bigger budget of 15 percent may be necessary, says Thoelecke. But if you’re going far grander — perhaps duplicating the closely clipped lawn at the Augusta National Golf Club, site of the Masters Tournament — even more may be in order.
6 Practical Project Ideas
Here are some simple projects that experts say will make a big impact on the property’s appearance — and possibly boost resale value.
Plant trees.
Trees look nice, cut down on heating and cooling costs, and can even help a home sell for more money, the USDA Forest Service says. Properly placing just three trees can save an average household between $100 and $250 in annual energy bills, according to the U.S. Department of Energy. And a report from Arbor National Mortgage found that 84 percent of practitioners believe that a house on a treed lot would fetch at least 20 more than one on a lot without trees.
Go for year-round color.
Rather than make do with empty beds and a brown lawn in winter, home owners can pick materials that remain green all year. Examples: evergreen arborvitae, junipers, and boxwood, says Jones.
Help the environment.
There are dozens of ways to be a good environmental steward. A rain garden can retain water rather than send it into the nearest storm sewer. In drought-prone areas, xeriscape plants require less water. Large shade trees can screen a roof and windows from sun and block cold wind and air, says Russell Clett, senior landscape architect for Valley Crest Estate Gardens in Calabasas, Calif.
Make your yard livable.
A yard can be transformed into livable outdoor “rooms.” High on the wish list are well-equipped kitchens, sometimes with pizza ovens and fire pits, and the newest star — media rooms. Clett installed a projection screen so one client could float in his pool and watch movies.
Just add water.
Everyone loves water’s soothing sound, whether it cascades into a pond, fills a fountain, or churns in a hot tub.
Build a pergola.
A pergola — a set of columns supporting a roof of trelliswork on which climbing plants can grow — add architectural interest, vertical growing space, and shade.
For Home Owners on a Budget
Landscaping doesn’t have to cost as much as your house. To cut costs, a plan can be installed in stages, says Thoelecke Jr. There also are many affordable improvements home owners can make to enhance curb appeal. Start by trimming bushes and pruning dead limbs in front of windows to avoid blocking views, says Brian Huggler, ABR®, CRS®, associate broker with Huggler & Bashore in Lansing, Mich.
“If buyers can’t see a home, you can’t sell it,” adds Sandra Holmes, owner of Home Staging Concepts in Ft. Lauderdale, Fla. Other ideas from the experts:
* Clear away lawn art, toys and other “clutter.”
* Edge beds and add fresh mulch.
* Paint or seal terraces and replace rotted wood.
* Add a touch of color. A few pots of tulips in March work magic; red and white colors add the most punch, says Jones.
* Use container gardens. Pots are an affordable, portable way to line a path, embellish an entry, grow herbs, and decorate indoor rooms when weather changes.
Encourage home owners to avoid planting materials too close, making beds too small, or overwatering, Jones says. They — and you — can learn more about landscaping by reading books, visiting botanic gardens, participating in local garden walks, and even by chatting with neighbors who have impressive gardens.
But most of all, remind clients to have fun, Jones says. “Plants are resilient. Home owners really can’t make a mistake.”
Learn More: Helpful Links
National Gardening Association
The National Arbor Day Foundation
iVillage's GardenWeb
LandscapingIdeasOnline.com
HGTV: Landscaping/Design
Tuesday, March 20, 2007
Online Guides Help Buyers Choose a Mortgage
Daily Real Estate News March 19, 2007
Online Guides Help Buyers Choose a Mortgage
With subprime mortgages making headlines over the past few weeks, buyers can be ambivalent about their lending options. New online guides and free brochures help to clear up any confusion and help consumers find a loan that suits them.
"Given the current real estate climate, home-buyers are faced with considerable decisions that could affect their financial state for years to come," said Thomas R. Evans, President and CEO of Bankrate.com, which released a financial literacy guide that explains the lending process.
In addition, the NATIONAL ASSOCIATION OF REALTORS®, the Center for Responsible Lending, and the Federal Housing Administration offer online resources for consumers. Here are links to the latest guides:
Bankrate.com: Understanding Mortgages Information on the different types of mortgages available, choosing the right mortgage according to lifestyle, the importance of credit scores, mistakes to avoid, a real-life mortgage makeover and self-help tools and calculators. The guide is the third installment in the company's year-long Financial Literacy Project.
Specialty Mortgages: What Are the Risks and Advantages? Produced jointly by NAR and the Center for Responsible Lending, this brochure can help prospective buyers assess the risks and advantages of interest-only, negative amortization, payment option ARM, and 40-year mortgages. Available in English and Spanish.
Traditional Mortgages: Understanding Your Options While specialty mortgages may help make homeownership more affordable, they generate more risk and consumers should understand these risks before they choose a mortgage. This brochure, also produced jointly by NAR and the Center for Responsible Lending, explains that for most consumers, traditional fixed-rate mortgages and adjustable-rate mortgages continue to be excellent options.
How to Avoid Predatory Lending Home buyers need to be aware that some lenders offer predatory loans that take advantage of consumers. This brochure, produced jointly by NAR and the Center for Responsible Lending, identifies the warning signs of predatory loans. It also gives consumers tips on how to avoid them, including questions they should ask when shopping for a loan.
Learn About FHA Mortgages The Federal Housing Administration has made significant improvements to its mortgage insurance programs. Many aspects of the FHA application process have been streamlined to make it more user-friendly and efficient. This brochure outlines the changes and how to qualify for an FHA mortgage, plus other resources available from FHA, HUD, and NAR.
— REALTOR® Magazine Online
Online Guides Help Buyers Choose a Mortgage
With subprime mortgages making headlines over the past few weeks, buyers can be ambivalent about their lending options. New online guides and free brochures help to clear up any confusion and help consumers find a loan that suits them.
"Given the current real estate climate, home-buyers are faced with considerable decisions that could affect their financial state for years to come," said Thomas R. Evans, President and CEO of Bankrate.com, which released a financial literacy guide that explains the lending process.
In addition, the NATIONAL ASSOCIATION OF REALTORS®, the Center for Responsible Lending, and the Federal Housing Administration offer online resources for consumers. Here are links to the latest guides:
Bankrate.com: Understanding Mortgages Information on the different types of mortgages available, choosing the right mortgage according to lifestyle, the importance of credit scores, mistakes to avoid, a real-life mortgage makeover and self-help tools and calculators. The guide is the third installment in the company's year-long Financial Literacy Project.
Specialty Mortgages: What Are the Risks and Advantages? Produced jointly by NAR and the Center for Responsible Lending, this brochure can help prospective buyers assess the risks and advantages of interest-only, negative amortization, payment option ARM, and 40-year mortgages. Available in English and Spanish.
Traditional Mortgages: Understanding Your Options While specialty mortgages may help make homeownership more affordable, they generate more risk and consumers should understand these risks before they choose a mortgage. This brochure, also produced jointly by NAR and the Center for Responsible Lending, explains that for most consumers, traditional fixed-rate mortgages and adjustable-rate mortgages continue to be excellent options.
How to Avoid Predatory Lending Home buyers need to be aware that some lenders offer predatory loans that take advantage of consumers. This brochure, produced jointly by NAR and the Center for Responsible Lending, identifies the warning signs of predatory loans. It also gives consumers tips on how to avoid them, including questions they should ask when shopping for a loan.
Learn About FHA Mortgages The Federal Housing Administration has made significant improvements to its mortgage insurance programs. Many aspects of the FHA application process have been streamlined to make it more user-friendly and efficient. This brochure outlines the changes and how to qualify for an FHA mortgage, plus other resources available from FHA, HUD, and NAR.
— REALTOR® Magazine Online
Monday, March 19, 2007
Lease-Option Sale Beats No Sale at All
Daily Real Estate News (Originally Published February 5, 2007)
Lease-Option Sale Beats No Sale at All
For sellers, builders, and real estate professionals, a lease-option sale is usually better than no sale, and can work for properties in all price ranges. Lease-options can work especially well in markets with an oversupply of homes or condos for sale.
A lease-option is similar to a new-car lease, in that the renter has the choice of buying the property or not by the end of the lease term. Unlike a lease-purchase, which requires the tenant to buy the property within a year or two, a lease-option doesn't force the tenant to buy.
For both the tenant and the owner, the amount of the monthly rent credit toward the tenant-buyer's down payment is the key to a successful lease-option.
Here's a summary of other lease-option perks:
* Upfront option money is smaller than typical home-purchase closing costs.
* The rent credit outweighs lack of mortgage interest and property tax deductions.
* The buyer can "try on" the house or condo before buying.
* The option purchase price is locked in for the lease term.
* The buyer can move in within a few days after signing the lease-option.
Source: Inman News, Robert J. Bruss (02/03/2007)
Lease-Option Sale Beats No Sale at All
For sellers, builders, and real estate professionals, a lease-option sale is usually better than no sale, and can work for properties in all price ranges. Lease-options can work especially well in markets with an oversupply of homes or condos for sale.
A lease-option is similar to a new-car lease, in that the renter has the choice of buying the property or not by the end of the lease term. Unlike a lease-purchase, which requires the tenant to buy the property within a year or two, a lease-option doesn't force the tenant to buy.
For both the tenant and the owner, the amount of the monthly rent credit toward the tenant-buyer's down payment is the key to a successful lease-option.
Here's a summary of other lease-option perks:
* Upfront option money is smaller than typical home-purchase closing costs.
* The rent credit outweighs lack of mortgage interest and property tax deductions.
* The buyer can "try on" the house or condo before buying.
* The option purchase price is locked in for the lease term.
* The buyer can move in within a few days after signing the lease-option.
Source: Inman News, Robert J. Bruss (02/03/2007)
Friday, March 16, 2007
Subprime Lenders Got What They Deserve?
Daily Real Estate News March 16, 2007
Subprime Lenders Got What They Deserve?
Even with a number of subprime lenders facing the prospect of bankruptcy, Robert Steel, the Treasury Department undersecretary for domestic finance, told reporters the current situation in the subprime market is manageable.
"We monitor the markets all the time, and are hopefully pretty aware of market conditions," Steel says. "It seems to us that the situation is a manageable one that we're watching."
His comments were echoed by those testifying before a House Financial Services panel.
"There's absolutely no question that there were lenders with this product that got aggressive," John Robbins, chairman of the Mortgage Bankers Association, told the committee. Those lenders are now being punished by the market as investors abandon them, he said.
Another witness, Karen Shaw Petrou, managing partner of Federal Financial Analytics, noted that subprime mortgages account for only an estimated $1 trillion of the $8 trillion U.S. home-mortgage market.
"It is a very distressing picture at this point," she said. "People forgot that subprime means higher risk, higher risk means more losses."
Source: The Associated Press, Marcy Gordon (03/12/07)
Subprime Lenders Got What They Deserve?
Even with a number of subprime lenders facing the prospect of bankruptcy, Robert Steel, the Treasury Department undersecretary for domestic finance, told reporters the current situation in the subprime market is manageable.
"We monitor the markets all the time, and are hopefully pretty aware of market conditions," Steel says. "It seems to us that the situation is a manageable one that we're watching."
His comments were echoed by those testifying before a House Financial Services panel.
"There's absolutely no question that there were lenders with this product that got aggressive," John Robbins, chairman of the Mortgage Bankers Association, told the committee. Those lenders are now being punished by the market as investors abandon them, he said.
Another witness, Karen Shaw Petrou, managing partner of Federal Financial Analytics, noted that subprime mortgages account for only an estimated $1 trillion of the $8 trillion U.S. home-mortgage market.
"It is a very distressing picture at this point," she said. "People forgot that subprime means higher risk, higher risk means more losses."
Source: The Associated Press, Marcy Gordon (03/12/07)
Saturday, March 10, 2007
How to Make Moving Less Stressful on Pets
Daily Real Estate News (Originally Published February 8, 2007)
How to Make Moving Less Stressful on Pets
Moving to a new home can be stressful on pets, but there are many things your clients can do to make the process as painless as possible.
Experts at The Pet Realty Network in Naples, Fla., offer these helpful tips for easing the transition and keeping pets safe during the move. Share these tips with buyers and sellers, and they'll thank you for looking out for their furry friends.
Update your pet’s tag. The most important rule is to make sure your pet is wearing an identification tag, with your current contact information, and a sturdy collar. Your pet’s tag should include your destination location, telephone number, and cell phone number so that you can be reached immediately during the move.
Ask for veterinary records. If you’re moving far enough away that you’ll need a new vet, you should ask your current vet for a current copy of your pet’s vaccinations. Your also can ask for copy of your pet’s medical history to give to your new vet, although that can normally be faxed directly to the new vet upon request.
Keep medications and food on hand. Keep at least one week’s worth of food and medication with you in case of emergency. Vets can’t write a prescription without a prior doctor/patient relationship, which can cause delays if you need medication right away.
Seclude your pet from chaos. Pets can feel vulnerable on moving day. Keep your pet in a safe, quiet, well ventilated place, such as the bathroom on moving day with a “Do Not Disturb! Pets Inside!” sign posted on the door to keep off-limits to friends and movers.
Prepare a first aid kit. A few recommended supplies for a basic first aid kit include: Your vet's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for bandages, non-stick bandages, towels, and hydrogen peroxide (3 percent). You can use a door, board, blanket or floor mat as an emergency Stretcher and a soft cloth, rope, necktie, leash or nylon stocking for an emergency muzzle.
Play it safe in the car. It’s best to travel with your dog in a crate, second-best is to use a restraining harness. When it comes to cats, it’s always best for their safety and yours to use a well-ventilated carrier in the car. Secure the crate or carrier with a seat belt and provide your pet with familiar toys. Never keep your pet in the open bed of a truck or the storage area of a moving van. In any season, a pet left alone in a parked vehicle is vulnerable to injury and theft.
Get ready for takeoff. When traveling by air, check with the airline about any pet requirements or restrictions to be sure you’ve prepared your pet for a safe trip. Some airlines will allow pets in the cabin, depending on the animal’s size, but you’ll need to purchase a special airline crate that fits under the seat in front of you.
Find a new veterinary clinic and emergency hospital. Before you move, ask your veterinarian to recommend a doctor in your new locale. Talk to other pet owners when visiting the new community, and call the state veterinary medical association for vets in your city. When choosing a new veterinary hospital, make a visit and ask yourself: Are the receptionists, doctors, technicians, assistants friendly, professional and knowledgeable? Are the office hours and location convenient? Does the clinic offer emergency or specialty services? If the hospital doesn’t meet your criteria, keep looking.
Prep your new home for pets. Pets may be frightened and confused in new surroundings. To reduce the chance of escaping due to fear, or pure excitement of exploring a new territory, immediately set out all the familiar and necessary things your pet will need: food, water, medications, bed, litter box, etc. If your new home is nearby, your pet may be confused and find a way back to your old home. To be safe, give the new home owners your phone number and a photo of your pet, and ask them to contact you if your pet is found nearby.
Learn more about your new area. Once you find a new veterinarian, ask if there are any local health concerns such as heartworm or Lyme disease, or any vaccinations or medications your pet may require. Also, be aware of any unique laws. For example, there are restrictive breed laws in some cities. Home owner associations also may have restrictions – perhaps requiring that all dogs are kept on leashes.
— REALTOR® Magazine Online
How to Make Moving Less Stressful on Pets
Moving to a new home can be stressful on pets, but there are many things your clients can do to make the process as painless as possible.
Experts at The Pet Realty Network in Naples, Fla., offer these helpful tips for easing the transition and keeping pets safe during the move. Share these tips with buyers and sellers, and they'll thank you for looking out for their furry friends.
Update your pet’s tag. The most important rule is to make sure your pet is wearing an identification tag, with your current contact information, and a sturdy collar. Your pet’s tag should include your destination location, telephone number, and cell phone number so that you can be reached immediately during the move.
Ask for veterinary records. If you’re moving far enough away that you’ll need a new vet, you should ask your current vet for a current copy of your pet’s vaccinations. Your also can ask for copy of your pet’s medical history to give to your new vet, although that can normally be faxed directly to the new vet upon request.
Keep medications and food on hand. Keep at least one week’s worth of food and medication with you in case of emergency. Vets can’t write a prescription without a prior doctor/patient relationship, which can cause delays if you need medication right away.
Seclude your pet from chaos. Pets can feel vulnerable on moving day. Keep your pet in a safe, quiet, well ventilated place, such as the bathroom on moving day with a “Do Not Disturb! Pets Inside!” sign posted on the door to keep off-limits to friends and movers.
Prepare a first aid kit. A few recommended supplies for a basic first aid kit include: Your vet's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for bandages, non-stick bandages, towels, and hydrogen peroxide (3 percent). You can use a door, board, blanket or floor mat as an emergency Stretcher and a soft cloth, rope, necktie, leash or nylon stocking for an emergency muzzle.
Play it safe in the car. It’s best to travel with your dog in a crate, second-best is to use a restraining harness. When it comes to cats, it’s always best for their safety and yours to use a well-ventilated carrier in the car. Secure the crate or carrier with a seat belt and provide your pet with familiar toys. Never keep your pet in the open bed of a truck or the storage area of a moving van. In any season, a pet left alone in a parked vehicle is vulnerable to injury and theft.
Get ready for takeoff. When traveling by air, check with the airline about any pet requirements or restrictions to be sure you’ve prepared your pet for a safe trip. Some airlines will allow pets in the cabin, depending on the animal’s size, but you’ll need to purchase a special airline crate that fits under the seat in front of you.
Find a new veterinary clinic and emergency hospital. Before you move, ask your veterinarian to recommend a doctor in your new locale. Talk to other pet owners when visiting the new community, and call the state veterinary medical association for vets in your city. When choosing a new veterinary hospital, make a visit and ask yourself: Are the receptionists, doctors, technicians, assistants friendly, professional and knowledgeable? Are the office hours and location convenient? Does the clinic offer emergency or specialty services? If the hospital doesn’t meet your criteria, keep looking.
Prep your new home for pets. Pets may be frightened and confused in new surroundings. To reduce the chance of escaping due to fear, or pure excitement of exploring a new territory, immediately set out all the familiar and necessary things your pet will need: food, water, medications, bed, litter box, etc. If your new home is nearby, your pet may be confused and find a way back to your old home. To be safe, give the new home owners your phone number and a photo of your pet, and ask them to contact you if your pet is found nearby.
Learn more about your new area. Once you find a new veterinarian, ask if there are any local health concerns such as heartworm or Lyme disease, or any vaccinations or medications your pet may require. Also, be aware of any unique laws. For example, there are restrictive breed laws in some cities. Home owner associations also may have restrictions – perhaps requiring that all dogs are kept on leashes.
— REALTOR® Magazine Online
Daily Quote, Saturday, March 10, 2007
Success usually comes to those who are too busy to be looking for it.
- Henry David Thoreau
- Henry David Thoreau
Thursday, March 8, 2007
How to Not Overpay Income Taxes
How to Not Overpay Income Taxes
RISMEDIA, Feb. 19, 2007-
The average homeowner will get a tax refund of $4,000 to $5,000 this year. What most people don't understand is that a big number on line 72 of the 1040 income tax form means they overpaid their taxes.
"It's ironic that most people get so excited about getting their tax refunds, which really means that they've been sending too much money to the government," says Julie Murphy Casserly, the president of Chicago-based JMC Wealth Management, Inc. "The good news is that it's really easy to pay the appropriate amount of income tax, and best of all, doing so will raise your household income with every paycheck."
Simply contact your HR department, and fill out a new W-4 form, Casserly says. The rule of thumb, Casserly advises, is to increase your exemptions by one for every $1,500 you get back.
Where people go wrong, Casserly notes, is in not realizing that instructions on the W4 form don't take other deductions you may have-such as mortgage interest write-offs and education credits. "As a result, most people underestimate their exemptions, and wind up paying more income tax then necessary," she says.
Getting ahead
Making this fix is quick and easy, but it's too late for 2006. However, there are ways to turn that refund into a real opportunity to get ahead, and also enjoy a little splurge.
"If you don't have a lot of credit card debt, I recommend that you commit half the refund to savings, and spend the other half-because let's face it, you've been looking forward to this," says Casserly.
"However, if you spend half, you should really save the other half. Open an ING Direct or eCiti Savings account, which pay some of the highest interest rates available. Or better yet, open a Roth IRA account and select age-based portfolios such as those in the Fidelity Freedom Funds family. This is a painless way to get ahead while still enjoying the reward you've been anticipating."
If you have credit card debt, split your refund in thirds, suggests Casserly, and pay down the debt in addition to the saving and spending scenarios she suggests.
Spending to save?
One reason why many family budgets fail, Casserly asserts, is that the plans are too Spartan. "You have to consider the emotion behind the money," she says. "It's important to reward yourself for good behavior - like setting up that Roth IRA or saving a chunk of a bonus. A little gratification here and there can prevent a spending binge."
RISMEDIA, Feb. 19, 2007-
The average homeowner will get a tax refund of $4,000 to $5,000 this year. What most people don't understand is that a big number on line 72 of the 1040 income tax form means they overpaid their taxes.
"It's ironic that most people get so excited about getting their tax refunds, which really means that they've been sending too much money to the government," says Julie Murphy Casserly, the president of Chicago-based JMC Wealth Management, Inc. "The good news is that it's really easy to pay the appropriate amount of income tax, and best of all, doing so will raise your household income with every paycheck."
Simply contact your HR department, and fill out a new W-4 form, Casserly says. The rule of thumb, Casserly advises, is to increase your exemptions by one for every $1,500 you get back.
Where people go wrong, Casserly notes, is in not realizing that instructions on the W4 form don't take other deductions you may have-such as mortgage interest write-offs and education credits. "As a result, most people underestimate their exemptions, and wind up paying more income tax then necessary," she says.
Getting ahead
Making this fix is quick and easy, but it's too late for 2006. However, there are ways to turn that refund into a real opportunity to get ahead, and also enjoy a little splurge.
"If you don't have a lot of credit card debt, I recommend that you commit half the refund to savings, and spend the other half-because let's face it, you've been looking forward to this," says Casserly.
"However, if you spend half, you should really save the other half. Open an ING Direct or eCiti Savings account, which pay some of the highest interest rates available. Or better yet, open a Roth IRA account and select age-based portfolios such as those in the Fidelity Freedom Funds family. This is a painless way to get ahead while still enjoying the reward you've been anticipating."
If you have credit card debt, split your refund in thirds, suggests Casserly, and pay down the debt in addition to the saving and spending scenarios she suggests.
Spending to save?
One reason why many family budgets fail, Casserly asserts, is that the plans are too Spartan. "You have to consider the emotion behind the money," she says. "It's important to reward yourself for good behavior - like setting up that Roth IRA or saving a chunk of a bonus. A little gratification here and there can prevent a spending binge."
Wednesday, March 7, 2007
Daily Quote, Wednesday, March 7, 2007
I find that the harder I work, the more luck I seem to have.
- Thomas Jefferson
- Thomas Jefferson
6 Ways First-Time Buyers Can Prepare
Daily Real Estate News (Originally Published February 6, 2007)
6 Ways First-Time Buyers Can Prepare
A cooling housing market gives buyers, especially first-time buyers, more opportunities to snatch up a good deal. But just because there are good deals, doesn't always mean buyers are ready to make the leap.
These six tips will help prospective buyers find out if they are ready for homeownership.
1. Take a first-time home buyer class. It will make repairing a credit score and shopping for a loan less stressful.
2. Be conservative. Borrowing too much can mean stretching and even sacrificing — to the point that it’s hard to even keep a six-pack of beer in the fridge.
3. Organize documents. First-time buyers should keep a pay stub, W-2, and bank and retirement account statements on hand to expedite the loan application process.
4. Get pre-approved. Before starting the homebuying process, consumers should get pre-approved by at least one lender. Being pre-approved won't lock buyers in to a loan but it may save them the heartache of falling in love with a home they really can't afford.
5. Play house. Every month, prospective buyers should bank the amount that they'd have to pay if they owned a home. It's good practice so they'll be ready for the real thing.
6. Consider all the costs. It's not just a mortgage payment they have to worry about. Repairs, assessments, and other costs of homeownership can add up quickly.
Source: Star-Tribune, Kara McGuire (02/02/07)
6 Ways First-Time Buyers Can Prepare
A cooling housing market gives buyers, especially first-time buyers, more opportunities to snatch up a good deal. But just because there are good deals, doesn't always mean buyers are ready to make the leap.
These six tips will help prospective buyers find out if they are ready for homeownership.
1. Take a first-time home buyer class. It will make repairing a credit score and shopping for a loan less stressful.
2. Be conservative. Borrowing too much can mean stretching and even sacrificing — to the point that it’s hard to even keep a six-pack of beer in the fridge.
3. Organize documents. First-time buyers should keep a pay stub, W-2, and bank and retirement account statements on hand to expedite the loan application process.
4. Get pre-approved. Before starting the homebuying process, consumers should get pre-approved by at least one lender. Being pre-approved won't lock buyers in to a loan but it may save them the heartache of falling in love with a home they really can't afford.
5. Play house. Every month, prospective buyers should bank the amount that they'd have to pay if they owned a home. It's good practice so they'll be ready for the real thing.
6. Consider all the costs. It's not just a mortgage payment they have to worry about. Repairs, assessments, and other costs of homeownership can add up quickly.
Source: Star-Tribune, Kara McGuire (02/02/07)
Saturday, March 3, 2007
Daily Quote - Saturday, March 3, 2007
It was when I found out I could make mistakes that I knew I was on to something.
- Ornette Coleman
- Ornette Coleman
5 Items to Consider Before Dropping the Price
Daily Real Estate News (Originally Published January 19, 2007)
5 Items to Consider Before Dropping the Price
When a house won’t sell, the answer is often to drop the price, but how much and when?
The following are some items to consider before dropping a home's price, according to several real estate professionals, mostly based in Long Island, N.Y.:
1. Price the house right to begin with — it will get the most activity when it first goes on the market.
2. Lower the asking price sooner rather than later while it's still fresh in buyers' minds.
3. If there has been no offer in one to two months — six at the most — consider dropping the price, then re-evaluate every two to four weeks.
4. When you drop the price, lower it by enough to make the home the top house in a lower price range rather than the bottom house in a higher range.
5. The more expensive the house, the greater the decrease needs to be to attract new buyers.
Source: Newsday, Abigail W. Leonard (01/19/07)
5 Items to Consider Before Dropping the Price
When a house won’t sell, the answer is often to drop the price, but how much and when?
The following are some items to consider before dropping a home's price, according to several real estate professionals, mostly based in Long Island, N.Y.:
1. Price the house right to begin with — it will get the most activity when it first goes on the market.
2. Lower the asking price sooner rather than later while it's still fresh in buyers' minds.
3. If there has been no offer in one to two months — six at the most — consider dropping the price, then re-evaluate every two to four weeks.
4. When you drop the price, lower it by enough to make the home the top house in a lower price range rather than the bottom house in a higher range.
5. The more expensive the house, the greater the decrease needs to be to attract new buyers.
Source: Newsday, Abigail W. Leonard (01/19/07)
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