Julie Williamson's Real Estate Blog

What real estate agents do for buyers By Michele Lerner of Bankrate.com

2011-09-21T14:16:00.001-07:00

Homebuyers, including first-time buyers, usually use the Internet for the preliminary work of finding homes for sale and collecting information on neighborhoods and recent sales. But those buyers, particularly if they are first-timers, often use real-estate agents to identify long-term value in properties, negotiate prices and ensure that deals go through. (Bing: Information on buyer's agents)

Functions of real-estate agents
"Many first-time homebuyers will not be purchasing their dream home as their first place, and (they) often have difficulty seeing the true value in homes," says Ben Hoefer, a real-estate agent with John L. Scott Real Estate in Seattle. "Since many of these buyers will be moving in the future, I think it is a good idea to think about resale when the buyer is purchasing. Buyers may not be aware of things like the problem of living on a busy street, or know to check on issues with homeowner-association covenants."

Hoefer says a real-estate agent can point out potential issues that could affect the resale price of a home and suggest small changes to increase the home's value.

Money: Should you rent out a room?

"I have a three-legged approach to working with buyers," says Mark Lesses, an associate broker and vice president with Coldwell Banker Residential Brokerage in Arlington, Mass. "I start by getting to know what the buyers want by picking up on the hidden signals that a prospective buyer shows when they see a home. They may not know what they want, but they can feel what they want. When I'm showing a house that absolutely does not work, I dig into why it doesn't work. When we see other houses that may be a better fit, we discuss what does work for them and why."

The other two parts of the approach are negotiating a transaction and bringing that transaction to settlement.

"The most important function of a real-estate agent is negotiating a good deal on behalf of the buyer and educating the buyer about the market," says Brian Block, managing broker and branch vice president of the Block Real Estate Group with Re/Max Allegiance in McLean, Va.

Read: 5 things real-estate agents will do for free

"First-time buyers should rely on their Realtor to provide them with data about comparable homes that have sold, how long a home has been on the market, what homes haven't sold and all the activity that has been happening in the local real-estate market. Ultimately, it is the buyer's decision what price and terms they wish to offer. However, buyers should be able to rely on their Realtors to guide them toward an educated offer on the home."

Block points out that negotiation occurs not only at the beginning of a transaction over price and terms, but also possibly after a home inspection, an appraisal and at other times between contract and closing.

Fair-housing laws and real-estate agents
While real-estate agents can help buyers in myriad ways, there are some things they cannot do.

"Fair-housing laws prohibit discrimination," Block says. "Thus, an agent cannot steer a client to or away from particular neighborhoods based on their knowledge of an area's demographics. Further, agents cannot explicitly describe a neighborhood based on racial, religious, age or other demographic criteria. The agent can point buyers to websites and other reference sources where buyers can discover this information for themselves."

As Lesses says, "Our job is to talk about the house, not the people."

Working with other professionals
First-time homebuyers need to recognize that they must work with other professionals during the homebuying process, such as an attorney or title company representative to review legal documents, as well as a mortgage lender.

"Agents are not lawyers, home inspectors, mold experts, financial advisers or tax advisers," Block says. "While a real-estate agent can give some general background information in each of these areas, they cannot claim to be an expert and must suggest that the buyer retain the services of one of these other professionals should the need arise."

The biggest concern for most buyers today is whether a home will keep its value. An experienced real-estate agent can provide a buyer with the local market knowledge needed to make an informed decision about what to buy and how much to spend.

Posted via email from juliewilliamson's posterous

REAL ESTATE: HUD Awards Millions to Native American Communities for Low Income Housing

2011-09-09T15:31:00.001-07:00

Recently, the U.S. Department of Housing and Urban Development awarded more than $52 million in grants to tribal communities in 21 states to improve or create housing and economic development opportunities for low- to moderate-income families. The competitive grants are provided through HUD’s Indian Community Development Block Grant (ICDBG) Program to support a wide variety of community development and affordable housing activities.

“These funds will help American Indian and Alaska Native tribal governments create sustainable and community-driven solutions,” says HUD Secretary Shaun Donovan. “Housing and infrastructure needs in Indian Country are severe and widespread. I’m inspired by the work the tribal communities are taking on to leverage these funds and get their communities on the right track.”

For example, the Comanche Nation Housing Authority of Oklahoma will rehab more than two dozen houses for families currently living in substandard homes, including new roofs, doors, windows, insulation, electrical system and plumbing repairs, siding, flooring, cabinets and counters, and HVAC upgrades. In White Earth, New Mexico, a new 12,800-square-foot Workforce Development Center will provide workforce skills and vocational training to assist tribal members in obtaining employment.

In California, the Quechan Tribe will improve roads and sidewalks in a neighborhood with predominantly low and very-low income families with high amounts of foot traffic. In California, the Yurok Reservation will get multipurpose park and recreation facility. In Montana, families at the Mutual Help project in Northern Cheyenne will have their homes rehabbed to reduce the amount of substandard housing in the community.

The ICDBG program was established in 1977 to help Indian tribes and Alaska Native villages to meet their community development needs. Federally recognized Indian tribes, bands, groups or nations (including Alaska Indian, Aleuts and Eskimos,) or Alaska Native villages compete for this funding. The recipients use the funding to develop viable communities, including rehabilitating housing or building new housing or to buy land to support new housing construction.

The funding can also be used to build infrastructure such as roads, water and sewer facilities, and to create suitable living environments. To spur economic development, recipients have used the grants to establish a wide variety of commercial, industrial and agricultural projects. The grants have been used to build community and health centers, or to start businesses to support the community, such as shopping centers, manufacturing plants, restaurants or convenient stores/gas stations.

Posted via email from juliewilliamson's posterous

REAL ESTATE NEWS #GREEN - HUD Announces $25 Million in Available Grants for New Multifamily Energy Efficiency Pilot

2011-09-07T14:55:00.001-07:00

The U.S. Department of Housing and Urban Development recently announced that $25 million is available through HUD’s new Multifamily Energy Efficiency Pilot program. Once awarded, these grants will help develop new innovative approaches for multifamily residential properties to reduce their energy consumption, lower greenhouse gas emissions, while saving money for the residents, property owners and taxpayers.

“HUD is extremely excited about this pilot program because it aligns with the goals of the Administration to create green jobs and build sustainable communities,” says Acting Federal Housing Commissioner Carol Galante. “The innovations that flow from this pilot program will serve as models to create future industry standards in energy efficiency.

“Rather than tell applicants what we want to see, we are asking the private sector to develop new innovative approaches to create jobs and help people save energy and save money. Since these grants will be complemented by private capital, the investors will also have a unique opportunity to become leaders in helping make affordable multifamily homes greener,” says Theodore Toon, Associate Deputy Assistant Secretary for HUD’s Office of Affordable Housing Preservation.

The goal of the pilot program is to develop ideas and mechanisms that could potentially be replicated nationally, as well as help create industry standards in the home energy efficiency retrofit market. In addition, the pilot program will create a public/private partnership as a result of capital investments from private industries and create green jobs in construction, property management, and technical analysis (e.g. energy audits and building commissioning), including opportunities for low income residents.

Posted via email from juliewilliamson's posterous

Governments’ Comprehensive Plans Essential Factor in #Real Estate Valuation

2011-09-06T13:59:00.001-07:00

Real estate appraisers must consider the impact of local governments’ comprehensive plans when producing appraisals, according to an article published in The Appraisal Journal’s summer issue.

“This collection of articles from various authors with differing points of view presents all sides of this somewhat controversial topic and will help appraisers develop their own methods for addressing the separation of tangible and intangible assets in their professional work,” Appraisal Institute President Joseph C. Magdziarz, MAI, SRA, wrote in the book’s foreword, adding, “This new second edition will help bring appraisers up to date on this important issue.”

The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest organization of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.

“Use of the Local Comprehensive Plan in the Appraisal Process,” by Wayne Rasmussen, examines the important impact of a jurisdiction’s comprehensive plan on property’s current and potential value.

A comprehensive plan typically addresses land use, traffic routes, housing location and density, conservation and open space, noise, and safety. A plan also may establish urban limit lines that act as growth boundaries. The author notes that these governmental policies create both obstacles and incentives for development affecting the value of real estate.

The study reported in the Journal is significant because many times plan maps are used without a review of the accompanying text that sets out the intent and future plans of the governmental body creating the plan. The study advises that maps alone offer only a partial picture of a property’s potential. Background information, policy guidance and references in a plan have a significant impact and need to be understood before the appraiser reaches a conclusion of the highest and best use of the land and its value.

Posted via email from juliewilliamson's posterous

REAL ESTATE: Pending Home Sales Slip in July but up Strongly from One Year Ago

2011-08-30T18:45:00.001-07:00

Pending home sales declined in July but remain well above year-ago levels, according to the National Association of REALTOES®. All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, says sales activity is underperforming. “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy,” he says. “We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.”

The PHSI in the Northeast declined 2.0 percent to 67.5 in July but is 9.7 percent above July 2010. In the Midwest the index slipped 0.8 percent to 79.1 in July but is 18.8 percent above a year ago. Pending home sales in the South fell 4.8 percent to an index of 94.4 but are 9.5 percent higher than July 2010. In the West the index rose 3.6 percent to 110.8 in July and is 20.6 percent above a year ago.

“Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April,” Yun says. “The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market.”

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Posted via email from juliewilliamson's posterous

REAL ESTATE: REALTORS® Urge White House to Gather Leaders, Stabilize Housing

2011-08-26T18:35:00.001-07:00

To help develop policies that will stabilize the nation’s housing market and support an economic recovery, the National Association of REALTORS® urges the White House to host a summit of policy makers, industry leaders and government stake holders focused on revitalizing the nation’s housing.

“As the leading advocate for housing issues, REALTORS® know that homeownership supports our nation’s economy,” says NAR President Ron Phipps. “Housing and homeownership issues affect all Americans, which is why we need strong policies that will help stabilize the housing market and lead the way out of today’s economic struggles.”

A housing recovery is key to America’s economic strength, and NAR wants to make sure that proposed legislation and regulatory rules or changes to current programs and incentives don’t further exacerbate problems within fragile real estate markets across the country.

A broad discussion among all stakeholders about what needs to be done to put the housing market and economy on a path to recovery could provide valuable recommendations and solutions to promote responsible, sustainable homeownership and stabilize and revitalize the housing industry and economy.

“REALTORS® look forward to coming together and working with President Obama and his administration as well as our industry partners to design a housing recovery plan that will serve our nation, its 75 million homeowners and indeed all Americans today and into the future,” says Phipps.

Posted via email from juliewilliamson's posterous

Tips to Help Homeowners Prepare for Hurricane Irene

2011-08-26T18:34:00.001-07:00

The high winds associated with hurricanes can cause significant property damage in the form of falling trees, tree limbs and flying landscape debris. The key to minimizing your risk against property damage is storm preparedness.

There is no such thing as a hurricane-resistant landscape but, with proper care and timely maintenance overseen by a certified arborist, trees can be more resistant to storm damage. The team of certified arborists at SavATree have compiled a few tips to aid in storm damage prevention.

Pruning is Vital to Prevention
A strong, deep-rooted tree may not fall during a storm, but weak limbs in the canopy may. Broken, dead and damaged limbs can be torn from trees during a storm and turned into dangerous projectiles.

Trees with dense canopies should be pruned regularly by a professional, especially during hurricane season. Proper pruning removes dead or drying branches which are most susceptible to wind.

Regular pruning during a tree’s development should create a sturdy, well-spaced framework of healthy branches with an open canopy that allows air to flow freely through it. It is important for a tree to have a central leader with no narrow forks or branches that leave the trunk at an acute angle. Limb crotches should be between 45 and 90 degrees.

Trees to Watch Out For
• Trees with dense canopies
• Dead or dying trees
• Trees with co-dominant trunks
• New plantings and young trees

Consult a certified arborist to see if these, or any other tree hazards, exist around your home.

After the Storm Has Passed
Assess your property for damage and threats. An arborist should be contacted if: you need a chainsaw or ladder to prune away dead, dying or loose branches, power lines are down, you are unsure of the structural stability of a tree, or you do not know if a tree can be saved. In some cases, even a tree that has sustained some damage (defoliated, broken, or blown over) can be treated.

Trees have a much better chance of surviving if they receive proper, routine care. Remember, healthy trees can adjust more quickly to changes in the environment and are more resistant. Therefore, if you are proactive and take the necessary steps before a storm hits, you can reduce your risk of property damage—saving yourself a great hassle and expense.

Posted via email from juliewilliamson's posterous

Housing Affordability Hovers Near Record Level as Some Markets Begin to Stabilize

2011-08-24T18:16:00.001-07:00

Nationwide housing affordability during the second quarter of 2011 hovered for the 10th consecutive quarter near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released recently.

The HOI indicated that 72.6 percent of all new and existing homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure dipped slightly from the record high of 74.6 percent set last quarter but remained above the 70 percent threshold initially achieved in the first quarter of 2009.

“At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales,” says Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery.”

Youngstown-Warren-Boardman, Ohio-Pa., was the most affordable major housing market in the country during the second quarter of the year. In Youngstown, 93.7 percent of all homes sold were affordable to households earning the area’s median family income of $54,900.

Also ranking near the top of the most affordable major metro housing markets were Syracuse, New York.; Indianapolis-Carmel, Indiana; Dayton, Ohio; and Lakeland-Winter Haven, Florida.

Among smaller housing markets, the most affordable was Kokomo, Indiana, where 95.8 percent of homes sold during the second quarter of 2011 were affordable to families earning a median income of $59,100. Other smaller housing markets ranking near the top of the index included Lansing-East Lansing, Michigan; Bay City, Michigan; and Sandusky, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the second quarter of 2011. In New York, 25.2 percent of all homes sold during the quarter were affordable to those earning the area’s median income of $67,400. This marks the 13th consecutive quarter that the New York metropolitan division has held this position.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, California; Santa Ana-Anaheim-Irvine, California.; Los Angeles-Long Beach-Glendale, California.; and Honolulu, respectively.

Ocean City, New Jersey, where 40.9 percent of the homes were affordable to families earning the median income of $70,100, was the least affordable of the smaller metro housing markets in the country during the second quarter. Other small metro areas ranking near the bottom included Laredo, Texas; Santa Cruz-Watsonville, California; San Luis Obispo-Paso Robles, California; and Santa Barbara-Santa Maria-Goleta, California

Posted via email from juliewilliamson's posterous

REAL ESTATE: MONEY Magazine Reveals Annual “MONEY’s 100 Best Places to Live in America”

2011-08-16T12:12:00.001-07:00

“MONEY” magazine has revealed the 2011 list of “MONEY’s 100 Best Places to Live in America,” highlighting small towns across the country with populations of 50,000 or less. For the annual cover-story, on sale August 19, MONEY looked for places with the optimal combination of job opportunities, fiscal strength, top-notch schools, safe streets, good healthcare, cultural and outdoor activities, and even nice weather.

MONEY’s editors write, “With the current state of the economy—and the dispiriting sight of the nation’s leaders endlessly battling about how to fix it—the phrase ‘small town’ conjures up images of a happier time. When unemployment wasn’t above 9%. When people didn’t stress out about home values. When school budgets weren’t under siege. Those were the days, right?”

Louisville, Colorado tops this year’s list at number one. Tewnty-three miles outside Denver, Louisville has a strong economy, stable housing and lots to do. Louisville has some of the lowest crime rates in Colorado and was also ranked No. 1 in 2009 when MONEY assessed places with populations of under 50,000. There are good jobs in Louisville in the tech, telecom, aerospace, clean energy, and healthcare space. Additionally, MONEY editors report that businesses are flourishing in the historic downtown district, writing, “This summer alone saw the opening of three restaurants, a rooftop bar, a coffee shop, a yoga studio, a gift shop, and two art galleries. And world-class outdoor recreation is a short drive away.”

MONEY’s 2011 top-ten list:

1. Louisville, CO
2. Milton, MA
3. Solon, OH
4. Leesburg, VA
5. Papillion, NE
6. Hanover, NH
7. Liberty, MO
8. Middleton, WI
9. Mukilteo, WA
10. Chanhassen, MN

Posted via email from juliewilliamson's posterous

REAL ESTATE: July Housing Scorecard Shows Home Price Improvement

2011-08-10T11:33:00.001-07:00

U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the July edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market. The latest housing data offer continued mixed signals as home prices improved slightly but showed continued strain from foreclosures and distressed homes. Also, as more homeowners secure mortgage relief, fewer borrowers entered the foreclosure pipeline in June. The full report is available online at www.hud.gov/scorecard.

“This month’s housing data paint a mixed picture of conditions in the market— despite growing evidence of progress in the broader economy,” says HUD Assistant Secretary Raphael Bostic. “We’re continuing to see a slight improvement in home prices and a decline in mortgage defaults as our foreclosure prevention programs reach more borrowers upstream in the process. But we have much more work to do to help the market recover and to reach the many households there and across the nation who still face trouble.”

“Tens of thousands of additional homeowners are getting real relief from the Administration’s programs every month,” says Treasury Assistant Secretary for Financial Stability Tim Massad. “These programs are setting standards across the industry that are yielding more sustainable assistance for homeowners in the face of the worst housing crisis in a generation.”

The July Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

• Fewer homeowners fell behind on their mortgages during the month of June. In June, 4.4 percent of prime mortgages were at least 30 days late—a significant decline from the peak of 5.9 percent seen in 2010. Moreover, seriously delinquent prime mortgages – those at least 90 days late or in foreclosure – remained approximately 22 percent below a high of 1.9 million recorded last year. As new delinquencies decrease across the nation, the number of new homeowners seeking assistance through the Administration’s programs may also decrease.

• The Administration’s recovery efforts have helped millions of families deal with the worst economic crisis since the Great Depression. Nearly 5 million modification arrangements were started between April 2009 and the end of May 2011.This includes more than 1.6 million HAMP trial modification starts, more than 938,000 FHA loss mitigation and early delinquency interventions, and nearly 2.4 million HOPE Now proprietary modifications, reflecting the reach of standards developed in the Administration’s programs. While some homeowners may have received help from more than one program, the total number of agreements offered continues to more than double the number of foreclosure completions for the same period (2.1 million). In June, nearly 32,000 additional homeowners received a permanent modification through the Administration’s Home Affordable Modification Program (HAMP); more than 760,000 homeowners across the country have received a HAMP permanent modification to date with a median payment reduction of 37 percent.

• Even as new delinquencies continue to fall, eligible homeowners entering HAMP have a high likelihood of earning a permanent modification and realizing long-term success. The rate of modifications moving from trial to permanent is up to 74 percent, and the average time to convert from a trial to permanent modification is down to 3.5 months. Homeowners in HAMP modifications continue to perform well over time, with re-default rates lower than those on industry modifications. At one year, more than 84 percent of homeowners remain in their HAMP permanent modification.

Posted via email from juliewilliamson's posterous

Top 5 Things You Should Know to Help Sell Your Home Fast #realestate

2011-08-09T13:48:00.001-07:00

While many markets around the country continue to experience challenges as the market makes its slow turnaround, Ann Arbor real estate is selling fast, and it’s because we follow some simple rules.

1. Curb appeal is key to selling your home

If it looks rundown from the outside, then it probably is on the inside too. Curb appeal is all about first impressions. Buyers want to feel like they could live in a home from the moment they pull up in front of it. Basic improvements such as exterior painting, cutting the grass and planting some flowers improve the look of a home from the outside tremendously.

2. Deodorize

Every home has a unique odor, especially if pets are present. Be sure to professionally clean the carpet and the furniture and replace carpets if necessary. Keep pets clean and the home free from dander. Consider taking pets and pet cages if present in the home with you when you leave for showings.

3. Really want to sell your home? Repair and repaint

A little putty and paint can make all the difference. Repair damaged dry wall, gouges in wood surfaces and paint the walls. Bright colors such as those in children’s rooms should be repainted with a neutral color. We like to repaint our Ann Arbor homes with a neutral shade that will be attractive to a wide variety of buyers.

4. Put away your personal collections

Here, the old saying that one man’s treasure is another man’s junk rings true. De-clutter your home by packing up knick-knacks, heirlooms, personal collections, and even family photos. After all, they are special only to you and your goal is to make the home presentable to the widest number of people possible. Expensive collections should be packed away as well to keep them safe.

Posted via email from juliewilliamson's posterous

Realogy Calls for White House Summit on Housing #realestate

2011-08-09T13:41:00.001-07:00

Realogy Corporation, a leading provider of real estate and relocation services, recently announced that it has sent a formal request to President Obama and his Administration calling for a White House Summit on Housing.

“Housing has an enormous impact on our nation’s GDP and given its substantial influence on all aspects of the economy, we believe it warrants special attention from the White House,” says Realogy CEO Richard A. Smith. “The key to the proposed White House Summit on Housing would be its emphasis on bringing together real estate business leaders to make actionable recommendations designed to stimulate the growth necessary for a sustained recovery in housing, which would have an ensuing positive effect on job creation and the broader U.S. economy.”

“We believe that frontline business operators from the residential real estate industry would add a valuable perspective to the process, and this summit would give the Administration the benefit of unfiltered, real-time market feedback from business leaders who are residential brokerage operators, real estate franchisors, homebuilders, mortgage lenders and other related industry groups,” added Smith.

In his letter to the President, Smith concluded by stating, “Your leadership on this issue would bring together the top business minds of the residential real estate industry at a time when practical business experience may very well offer the guidance necessary to stimulate housing, and thus, the U.S. economy.”

Posted via email from juliewilliamson's posterous

Home Builders Praise Debt Ceiling Agreement #realestate news

2011-08-04T14:04:00.001-07:00

Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., issued the following statement regarding the proposed debt ceiling agreement announced by President Obama and congressional leaders:

“The National Association of Home Builders appreciates the hard work by the White House and Republican and Democratic congressional leaders to craft a bipartisan compromise to resolve the debt ceiling crisis. It will help to put our nation’s fiscal house in order and provide greater certainty to the business community so they can start hiring again and get our economy on firmer footing.

“The nation’s home builders stand ready to do their part to aid in the economic recovery. Building 100 single-family homes generates more than 300 jobs, $14.5 million in salaries and wages, and $8.9 million in federal, state and local tax revenue. As the economy continues to mend, restoring the health of the housing industry is essential to putting America back to work.”

Posted via email from juliewilliamson's posterous

REAL ESTATE: Advance in 2012 Energy Code for New & Renovated Residential, Commercial Buildings

2011-08-03T15:47:00.001-07:00

The Alliance to Save Energy recently hailed a newly released model building energy code upgrade that will improve energy use in commercial and residential buildings in the United States by as much as 30%.

The landmark 30% improvement for new and renovated residential buildings is included in the 2012 International Energy Conservation Code (IECC), which also would increase the energy efficiency of commercial buildings by about 25% when compared to the 2006 version of the code.

Significance in Energy Codes

The historic increase in the code was advocated by the Energy Efficiency Codes Coalition (EECC), a group led by the Alliance and comprised of a diverse group of policy makers, businesses and public interest groups. The improvements in the model code will have far-reaching impact as nearly all states operate under a version of the IECC, which is the only model residential energy code referenced in federal statutes.

“The significant advances in energy codes for new U.S. construction have multiple benefits even beyond the noteworthy savings of energy, money and pollutant emissions that they will achieve,” says Alliance President Kateri Callahan.

“The 2012 code will reduce peak energy demand, thereby reducing strain on the electric grid and increasing its reliability; reduce the size and cost of heating and cooling equipment in residential and commercial buildings; improve indoor comfort; help stabilize local energy prices; and increase national energy security,” she adds.

“We commend the International Code Council for its historic accomplishment and the Energy Efficient Codes Coalition for its persistence in advocating for a substantial code improvement,” Callahan continues. “We urge each of the 50 states to fulfill the promise of the 2012 code by adopting it promptly and enforcing it strictly in the months and years ahead.”

Savings Brought By Adoption of Code

The Alliance has estimated that if all states were to adopt the strengthened code next year and achieved full compliance by 2013—an admittedly ambitious scenario—the annual savings by 2030 would come to:

• At least $40 billion in energy costs to consumers and businesses;
• More than 3.5 quadrillion Btu of energy annually—about 9 percent of current building energy use; and
• About 200 million metric tons of CO2 emissions.
• The EECC says all states have committed to 90% compliance with the 2012 IECC by 2017.

Results of Improvements

For homes, improvements will:
• Ensure that new homes are better sealed to reduce heating and cooling losses;
• Improve the efficiency of windows and skylights;
• Increase insulation in ceilings, walls and foundations;
• Reduce wasted energy from leaky heating and cooling ducts;
• Improve hot-water distribution systems to reduce wasted energy and water in piping; and
• Boost indoor and outdoor lighting efficiency.

Posted via email from juliewilliamson's posterous

#Green #realestate Partnering with Appraisers, Upping the Value of Green

2011-08-02T15:20:00.001-07:00

NAR Green Designees aren’t the only industry pros battling to get recognition for the dollar value of eco-friendly home features. It’s an uphill battle for green appraisers too. That’s according to Sandy Adomatis of Adomatis Appraisal Service, Punta Gorda, Fla.

Adomatis, an appraiser with green expertise, outlines some of the challenges facing those doing green appraisals and talks about how real estate practitioners and appraisers can work in concert to advance the green real estate movement.

Two steps forward, one step back: Adomatis frequently sees the appraisal industry and the green movement as a whole, taking two steps forward and then one step back.

For one, though there’s great opportunity for education, too few are taking advantage of it, she believes. She asks, “How can appraisers value something if they don’t understand it?”

Appraisers, lenders, real estate practitioners, and builders, for example, all have to understand green and have the tools to measure it.

Green appraisal challenges: Adomatis outlines some key challenges facing appraisers, along with simple ways that green real estate practitioners can ease those difficulties.

1. Reading trends, finding comps: Making apples-to-apples comparisons is crucial, but in many markets comparables are in short supply. It’s also difficult for appraisers to identify green trends and the features consumers want.

Solution: “When you’re writing descriptions, put in green features and show us the trends,” she comments. Play up anything having to do with green, such as solar panels, efficient appliances, and green certifications to make it simple for appraisers to search for and identify green properties.

2. Documentation: She encounters the customary problems associated with “green washing” and of properties being labeled green that only have some green features or appliances. Appraisers waste lots of time chasing down paperwork to substantiate green claims.

Solution: Be watchful about properly distinguishing between properties with green features and those with certifications. Also have documentation at the ready that substantiates all green claims and be prepared to share it with appraisers.

Adomatis applauds the green MLS systems, such as the one in Arizona, that require practitioners to upload green documentation along with their listings and how properties without such documentation are automatically deleted. “That should be a standard,” she says. “It would stop greenwashing.”

3. Leverage the green MLS: Some MLS systems require listing agents to include an exact HERS number. But when appraisers do data searches, they must plug in that exact number to get that HERS-rated house to pop up. It’s arduous and inefficient. And an appraiser could miss out on a strong comparable.

Solution: If you’re involved with your green MLS committee, keep tabs on the coding tweaks that can make locating certified properties easier for appraisers. Consider allowing practitioners to include HERS ranges, such as a range of 50 to 70. The exact HERS number could be included in the features and comments section.

4. Cross training: Real estate practitioners need to understand the appraisal process and its challenges, and appraisers need to understand real estate practitioners’ business. Yet Adomatis sees too few getting such cross education.

Solution: Get professionals from all industries together. Include appraisers in green networking events and invite them to join green business groups and to talk at sales meetings and association events.

Adomatis conducted a seminar for builders, appraisers and lenders. As a result of face-to-face chats, members from the different professions found ways that they could better work together for mutual benefit. “Light bulbs went off,” she recalls. Some builders realized they had valuable documents, such as green certification and HERS ratings that often never made it into the hands of appraisers.

The same aha moments can happen when real estate practitioners and appraisers get together, believes Adomatis.

Real estate agents can harness the loads of information about green homes and working with green clients by taking the classes to earn NAR’s Green Designation. Each day of the courses has a specific theme for agents, growing from awareness and understanding to application skills.

And to learn more about green appraisals, Adomatis suggests two Appraisal Institute classes, ” Introduction to Green Buildings: Principles & Concepts” and “Case Studies in Appraising Green Residential Buildings.”

Future view: Believe it or not, there was a time in the appraisal industry when indoor plumbing was scoffed at, notes Adomatis. Some industry professionals didn’t think people wanted such facilities and there even was talk about whether it was healthy. “I see the same with green. Once green starts catching on more, it’ll be the norm,” she comments.

Posted via email from juliewilliamson's posterous

REAL ESTATE: 5 Tips to Get Your Finances in Order and Save Money in Your New Home

2011-08-02T14:20:00.001-07:00

By Paige Tepping

Buying a new home can be an exciting adventure, especially for first-time buyers. But the process isn’t all fun and excitement—owning a home comes with increased responsibilities and challenges that many new buyers haven’t previously faced. Before you get into the routine of day-to-day life in your new home, there are certain things that can be done to help you save a little money.

According to The Simple Dollar blog, the following tips will help homeowners save money while still living comfortably in their home.

1. Check the insulation. If your new home has an attic, make sure you take a peek around before you begin using the room for storage. It is especially important if you have an unfinished attic to check and be sure there is at least six inches of insulation around the entire room. Take the time to thoroughly inspect the insulation and replace any areas as needed.

2. Lower the temperature on your water heater. If you’re looking to save some money on your energy bill, turn your hot water heater down to 120 degrees Fahrenheit. If your water heater is a few years old, you may want to think about adding an extra layer of insulation to keep the heat where it’s needed.

3. Create a home maintenance checklist. Even though you have just moved into a new home, home maintenance can’t be forgotten. Create a home maintenance checklist now and be sure to go through the list at least once a month. Include any maintenance projects you can think of—including tasks that may only need to be completed every few months. This way nothing will get overlooked and you can take preventive action which will help extend the life of your appliances.

4. Hang your clothes up to dry. While drying your clothes in the dryer is a huge convenience for many homeowners, it also eats up a lot of energy. If you’re looking to save both energy and money, invest in a clothes rack where you can hang your clothes to dry.

5. Install energy-efficient appliances. Energy-efficient appliances may cost more upfront, but in the end, they will save you plenty of money. Do your homework before heading to your local Lowe’s and be sure to go for appliances that are reliable and energy efficient.

Posted via email from juliewilliamson's posterous

Home Prices Rise Second Month in Row, Will Uptick Continue? #realestate

2011-07-29T13:10:00.001-07:00

Home prices in major U.S. cities increased in May for the second consecutive month, according to a closely watched index, although experts dismissed the uptick as seasonal while separate reports provided fresh evidence of a weak housing market.

The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas rose 1 percent from April to May when left unadjusted for seasonal variations.

Prices often rise in spring because of changes in the types of homes selling: Foreclosures make up a higher proportion of sales during the winter as families take a break from home shopping and cash-rich investors dominate the market. Higher sales volumes also push up prices.

But compared with May 2010, home prices slid 4.5 percent, according to the index released Tuesday.

“Year-over-year, prices continue to deteriorate, although there has been a seasonal uptick over recent months,” says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California-Los Angeles. “This reflects a market that continues to be in search of a bottom.”

Chris G. Christopher Jr., an economist with consulting firm IHS Global Insight, said in a research note that the seasonal kick in prices will probably fade by October.

“Things do not look very favorable on the housing front since the employment situation has taken a turn for the worse in May and June,” he wrote. “The unemployment rate now stands at 9.2 percent, and consumer confidence is at depressed levels. Going forward, the Case-Shiller indexes are likely to post increases during the home-buying season, and then turn down again.”

The housing market began a renewed decline last year after the expiration of federal tax credits and has been limping along ever since. In March, home prices fell below their recession-era low, hit in April 2009, confirming a much-expected double-dip. Values have ticked up slightly since then.

One factor keeping housing weak is the high number of homes in foreclosure or headed into the foreclosure process. Then there’s the stalled jobs market, weak consumer confidence in the economy’s direction and the significant number of people saddled with mortgage debt that exceeds the value of their homes.

A separate report released Tuesday by Santa Ana, Calif., research firm CoreLogic indicated that the nation’s housing market is hampering the broader U.S. economic recovery. The report said that while several temporary factors have contributed to a slowing recovery, including high gas prices, U.S. floods and fading stimulus programs, “fundamentally, the recent slower economic growth illustrates that as the housing market goes, so does the economy.”

Housing influences the economy directly through residential construction, which typically gives a recovery a key boost. But with stiff competition from foreclosures, sales of new homes have been very weak for more than a year.

Posted via email from juliewilliamson's posterous

REAL ESTATE# California REALTORS® Applaud New Law on Short Sales

2011-07-26T13:29:00.001-07:00

Under a new state law, any lender who agrees to a short sale—which by definition will yield insufficient funds to cover the outstanding loans on a property—must accept it as payment in full for all loan balances. That is a good thing for upside-down homeowners who need to sell, says the California Association of REALTORS®.

In a prepared statement applauding Gov. Jerry Brown for signing SB 458 into law, the association observed that previously a first mortgage holder could accept an agreed-upon short sale payment as full payment for the first mortgage but a junior lien holder could still hound the seller for the full amount owned on the junior lien.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” says association President Beth L. Peerce.

“SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lien holders—those in first position and in junior positions—will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property,” she adds.

Those shopping for a home in the $500,000 to $1 million price range should not tarry. That is because they will probably face higher interest rates and more strict underwriting standards and will need to make a larger down payment later this year when conforming loan limits increase, cautions California Association of REALTORS® President Beth L. Peerce.

“Would-be buyers on the fence need to act well before Sept. 30, when the conforming loan limit is set to be lowered, to avoid a higher cost of homeownership,” Peerce said in a prepared statement.

Lowering the limits on mortgages eligible for purchase by Fannie Mae and Freddie Mac could have a broader impact than on individual homebuyers, says Peerce. “As the housing market tries to gain a more solid footing, the decrease in conforming loan limits that is scheduled for later this year could adversely affect the market,” she says.

Posted via email from juliewilliamson's posterous

#RealEstate: How to Turn More Renters into First-Time Buyers

2011-07-25T14:54:00.001-07:00

This is the market of a lifetime, with more opportunities—and challenges—than most of us have ever seen. Now imagine that you’re a renter thinking about buying a first home. You know mortgage rates are at generational lows. You know home prices are as attractive as they’ve been in decades. But, you don’t know what to do next. That’s where real estate professionals like you come in. You can teach first-time buyers how to take advantage of today’s market and showcase the value of hiring a real estate agent like you to guide them every step of the way.

Whether you’re talking to a group of first-time buyers in a seminar setting—or just chatting one-on-one—here’s what you can say to encourage them to buy:

Eight Steps to First-time Buying Success

1. Make the move from renting to buying. Help overcome their fears that they can’t afford to buy. If they can pay rent, they can likely make a mortgage payment. And instead of throwing away their money every month, they’ll build an important financial asset.

2. Get a pre-approval. With a credit and income verified pre-approval, both you and the buyer will be on the same page with a concrete understanding of what they can afford.

3. Get the right mortgage. It’s about more than the monthly payment. Guide first-time buyers toward the best mortgage option for them long-term.

4. Find the right home. Make sure first-time buyers know this is a long-term commitment and must likely meet their needs for many years.

5. Make an offer the seller will accept. Show buyers the three main components of an offer: price, financial/timing terms and contingencies for opting out of the deal.

6. Do your homework. Explain the value of due diligence: performing a property inspection to expose any hidden issues and obtaining a homeowner’s insurance policy.

7. Close on the sale. That stack of documents at the closing table can be daunting but there’s a lot that happens well before then. Be sure to explain buyers’ pre-closing responsibilities (including how to remain “mortgage worthy”).

8. Of course, one of the most critical steps is to hire the right real estate professional. Here’s how to convince them to hire you:

-You know the market
-You’ll help them make the best decisions
-You’ll find the right home
-You’ll quarterback the entire “deal team”
-You’ll be the chief negotiator
-You’ll take care of all the details
-And you’ll solve every problem, from contract to close

In short, you’ll be the professional first-time buyers need to help ensure success.

Bill Ervin is the National Sales Director, Real Estate Relationships for CitiMortgage, Inc. For more information, please visit www.citimortgage.com.

Posted via email from juliewilliamson's posterous

REAL ESTATE: Couple Documenting a House Flipping Business and Revealing the True Work Involved

2011-07-21T15:11:00.001-07:00

—”This business is a people business and I don’t know many people who would want to meet with and sell their house to someone working in their pajamas,” states Danny Johnson, a full-time house flipper in San Antonio, Texas. Danny and his wife, Melissa, are now making their house-flipping business transparent and sharing everything they do to flip houses on their new blog, FlippingJunkie.com.

If you have ever seen the house flipping reality television programs or have done any research on flipping houses, you’ve undoubtedly come away with a feeling that it seems easy enough to do. Many gurus will tell you it’s possible to make millions, working in your pajamas just 5 hours a week. Of course, they are trying to sell their information products to as many people as possible. Who wants to buy a program that tells you there is a lot of work involved?

Danny says there is a lot more to flipping houses than the shows or the gurus would want you to believe. That is why he started blogging about his day-to-day trials as a house flipper. “I wanted to allow people to see how much work is involved in the aspects of the business that the shows tend to ignore,” claims Danny. The areas he referred to were related to how people are finding such great deals with so much equity and buying them with huge discounts and the real costs involved. There seems to be a simplifying of the numbers on many of the reality shows. “Many assumptions are being made that are very far fetched and leave out a lot of the true costs involved in buying and selling a house,” Danny informs us.

Danny and his wife have been flipping houses since 2003 and have learned many hard lessons while flipping over 120 houses. The main thing learned is that the business requires a lot of education and hard work. This should come as no surprise, they said, as most things worth doing require hard work and dedication. This is what bothers them so much, they say, when they see shows and gurus talking about how easy it is to jump in and make a fortune. “It’s just not realistic,” Melissa stated.

As can be seen on their house flipping blog, they filter through dozens of leads to find deals worth pursuing. They then talk about all of the negotiating and patience that is required to get the deal done and closed. Following along with them, you really get a sense of how much of a people business it really is. Their house leads come from people with all sorts of different motivating circumstances which require a fast home sale in exchange for some equity. It appears that a lot of the quality leads come from people that inherit properties and people that want to sell their home, but cannot afford or just don’t desire to fix up the house to a condition suitable for a normal home buyer.

“We are sharing everything that is involved in running a successful house flipping business and we want to help people to get a better idea of what it takes to do this,” Danny continues. “We’ve seen too many people get into this business only to find out that they made some serious mistakes due to lack of education and real direction.”

You can read about Danny and Melissa’s real estate adventures in how to flip houses on their blog, http://www.FlippingJunkie.com.

Posted via email from juliewilliamson's posterous

A Closer Look at Home Pricing Forecasts, Local Markets Vary Widely #realestate #beverlyhills

2011-07-14T11:46:00.001-07:00

Economic consulting firm Clear Capital reported prices nationally have decreased by 3.2 percent in the first six months of 2011 and are forecast to drop another 2.4 percent in the second half of 2011.

The new forecast updates the firm’s December prediction that prices would fall 3.7 percent in all of 2011 after falling 4.1 percent in 2010, the firm reported recently. But individual markets will vary widely.

In the second quarter home prices gained 0.9 percent after nine months of decline. Halfway through 2011, the U.S. REO saturation rate remains at 31.3 percent compared to the 33.1 percent reported at the end of Q1. This number, while historically very high, is clearly trending slightly downward with absorption of REO property.

Only five U.S. markets are forecast to produce home price gains in the second half of 2011 including: Washington, D.C., New York, Orlando, Dallas, and San Francisco.

“At the mid-point of the year, it’s promising to see the overall market shake off the string of declines observed since late last year, especially in light of significant challenges for the industry,” says Dr. Alex Villacorta, director of research and analytics at Clear Capital. “However, we have yet to see the burst in consumer demand to avoid posting a net loss in national prices for the year.

“While most individual markets are also projected to post losses for the year, it is clear prices have begun to level off and are not exhibiting as much volatility as we’ve seen since the downturn began,” adds Villacorta.

The first half of 2011 continued the price declines experienced across much of the U.S. in 2010 as prices continued to face pressure from high unemployment and REO saturation rates above 31 percent. Home prices for the first half of this year have also been affected by a reversal of price gains from the 2009 and 2010 homebuyer tax credits. The wild spikes in price trends experienced in 2010 have given way to more gradual trends in 2011. Declines of 3.2 percent through the first half of 2011 contributed to the overall 8.0 percent decline since June 2010.

Prices were also pushed downward 4.1 percent in the first quarter of 2011 due to the slow winter home buying season creating the “double dip” in April 2011, and breaking through the previous low mark set in Q1 2009. Since then, U.S. price declines have seen modest gains, and while varying according to each local market, it is unlikely national home prices have reached a true and sustainable bottom.

The future outlook continues to point to a fragile housing market. However, the aforementioned quarterly increase of 0.9 percent is an encouraging sign that the markets are capable of positive price growth despite the first quarter lows and the continued economic and foreclosure pressures. Even with the recent gain in quarterly home prices, current price levels effectively match the levels seen in Q1 2009, and hover near the levels last seen in mid 2000.

Posted via email from juliewilliamson's posterous

New Foreclosure Study Finds the More That’s Owed, the Longer the Defaulter Can Stay

2011-07-13T12:38:00.001-07:00

Homeowners living in houses worth over $417,000 can live in their homes mortgage-free without fear of foreclosure for more than a year, but those in the less valuable homes are getting thrown out in 300 days or less.

Moreover, those with a second mortgage can stay in their home, on average, longer than those with just one mortgage. Those with a second mortgage currently are staying mortgage-free an average of 393 days compared to those with just one mortgage, who are losing their homes after 291 days.

According to an analysis of more than 150,000 foreclosures over the past three and a half years by the CEO of one of the nation’s leading foreclosure sites, ForeclosureRadar, lenders wait as long as they can to put losses from foreclosed properties on their books.

The study found that the deeper underwater you are, the longer you will be able to live in your home without paying a penny on your mortgage. “The truth is that the larger the loan balance you have, the more upside down you are in the home, and the bigger the loss for the lender, the better your chances are of not being foreclosed on for a very long time, says Sean’Toole, CEO of ForeclosureRadar.

O’Toole found that currently, in July 2011, the average loan balance on foreclosures with a loan balance greater than $417,000 is $616,000, and the average current market value is $404,000, resulting in an average loss of more than $250,000 per loan after sales costs. He compared that to loans with a balance less than or equal to $417,000. On those loans the average loss was closer to $115,000 on an average loan balance of $274,000 and with an average current market value of $176,000.

“So while we still think foreclosure roulette is the bank’s game of choice, we now also believe that the number of chambers in their gun, and your likelihood of being quickly foreclosed on, is directly tied to the size of the potential loss that the bank might face. Perversely, this means those who took the biggest loans, on the nicest houses, with the largest lines of credit to buy lots of shiny new toys will also get the most free rent when they strategically default,” he says.

O’Toole analyzed 153,956 foreclosure sales on first mortgages from January 2008 through July 2011 for which ForeclosureRadar had all the necessary data. This includes properties that were sold back to the bank and became REO, as well as properties purchased by investors on the courthouse steps at foreclosure auction. He divided all the loans into two groups: those with balances over $417,000 (the conforming loan limit) and those below.

‘Specifically we were wondering if banks took longer to foreclose on larger loans, where there tend to be larger losses, than on smaller loans. The answer is clear: yes, the size of the potential loss absolutely matters. Not only that, but time to foreclose doesn’t diverge until the government intervened in the foreclosure market in early 2009, with, for example, changes to the Federal Accounting Standards Board rules on mark-to-market,” he says.

“The basic idea behind mark-to-market accounting rules is that if an asset that you have on your books drops in value, you should recognize that loss on your books and write down the value of the asset on your books. When Treasury Secretary Paulson announced TARP in September 2008, he made it clear that he didn’t think banks should have to write down these assets to or be forced to sell them at what he believed were distressed prices. After that announcement, considerable pressure was put on the supposedly independent Federal Accounting Standards Board (which writes the accounting rules these companies must follow) to ease the rules that require companies to mark assets to current market values. I think there is little doubt that the changes to these rules were necessary in order for the banks to pass the stress tests that were undertaken shortly after this accounting change was pushed through,” he says.

Posted via email from juliewilliamson's posterous

HUD, CLPHA to Host Conference on Green Solutions for Public Housing

2011-07-12T13:58:00.001-07:00

Across the country, public housing authorities are struggling to control skyrocketing energy costs, often accounting for nearly a quarter of their operating budgets. To help cut energy bills and consumption, the U.S. Department of Housing and Urban Development (HUD) and the Council of Large Public Housing Authorities (CLPHA) will host “Going Green: Intelligent Investments for Public Housing,” an energy conservation conference on July 13-14, 2011 in Boston.

The two-day gathering at the Boston Park Plaza Hotel and Towers will showcase methods to make public housing more energy efficient and sustainable in its daily operations, including: cost-effective strategies to reduce energy and water consumption for housing operators and residents; discussions about sustainable construction; and building smarter with the latest energy efficient technology. Attendees will include public housing authorities, private energy sector groups, plus leaders in the green building movement.

“Going green in public housing means reducing energy costs and improving the lives of the residents,” says Sandra B. Henriquez, HUD’s Assistant Secretary for the Office of Public and Indian Housing. “By incorporating energy efficient measures into public housing, we have the opportunity to make a real impact on our environment and in the lives of thousands of families.”

Over the two-day conference, attendees will hear from Henriquez, who prior to joining HUD was the executive director of the Boston Housing Authority; Shelley Poticha, Senior Advisor for HUD’s Office of Sustainable Housing and Communities; and CLPHA Executive Director Sunia Zaterman, who has more than 30 years experience in housing at the federal, state and local levels.

In addition, Jim Hunt, Boston’s Chief of Environmental and Energy Services will join landscape architect Tim Duggan from the Make It Right Foundation to keynote an afternoon session on the second day. Actor Brad Pitt created the foundation to help rebuild homes in New Orleans’ Lower Ninth Ward that Hurricane Katrina destroyed in 2005. Participants can also see green building firsthand on a tour of Boston’s Maverick Landing, a HOPE VI development that incorporated green building practices during construction.

Posted via email from juliewilliamson's posterous

New Billion-Dollar-Emergency Loan Program Hopes to Stave Off Foreclosures

2011-07-12T12:07:00.001-07:00

The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks America launched a new Emergency Homeowners’ Loan Program (EHLP) recently to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico.

The program will assist homeowners who have experienced a reduction in income due to involuntary unemployment, underemployment, economic conditions or medical condition.

Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement the program. Qualified homeowners could receive interest-free loans; payment of a portion of a monthly mortgage for up to two years, or up to $50,000, whichever comes first; payment of a portion of monthly mortgage, including missed mortgage payments or past due charges including principal, interest, taxes and insurance. The program is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.

The help to home owners will be offered only in the following states: Alaska, Arkansas Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico.

Posted via email from juliewilliamson's posterous

Commercial/Multifamily Real Estate Markets Show the Turn of the Real Estate Cycle

2011-07-08T14:01:00.001-07:00

The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the first quarter of 2011. First quarter data on the commercial real estate markets show the natural effects of the turn of the real estate cycle. Broader economic indicators were positive in the first quarter, but provided less of a tail wind to commercial real estate markets than they might have. Despite this softness, real estate fundamentals have stabilized and are beginning to show signs of mending. Transaction volumes are picking up, and pricing and loan performance are showing initial signs—inconsistent though they are—of improvement. Any pick-up in economic growth will speed the healing; any slowdown will draw out the cycle.

For most property types, vacancy rates remain elevated, transaction volumes remain muted and property prices remain below their peaks, but the natural ebb and flow of the real estate cycle is beginning to have an effect. Economic growth, coupled with a constriction in new supply in the wake of a real estate downturn, is helping to stabilize and mend the commercial real estate markets. The pace and shape of continued recovery will be driven by the rate of economic growth and by how investors and developers react to the market changes they see and foresee.

The Data Book compiles the most up-to-date information on topics of interest to commercial/multifamily real estate finance industry participants and observers including trends in property sales, originations, delinquencies and mortgage debt outstanding. For the full analysis please click here.

Posted via email from juliewilliamson's posterous

Mortgage Marvel Rate Trends Shows Jump in 30-Year Fixed Rates

2011-07-07T11:20:00.001-07:00

Mortgage Marvel Rate Trends™, a daily survey of over 950 lenders, shows 30-year, fixed rates bouncing up 0.15% to 4.78% after setting a new six-month low last week.

With the increase in rates over the past week, 30-year fixed rates are 0.44% lower than the 6-month high of 5.22% achieved on February 10, 2011 and 0.58% above the ever-to-date low of 4.20% reached October 12, 2010.

Fifteen-year fixed rates also jumped, but to a lesser degree than the 30-year fixed, ending the week at 3.93% as compared to last week’s 3.85%. The increase in 5/1 ARM rates matched that of the 30-year fixed rate, jumping 0.16% to end the week at 3.80%. The rates for 30-year, fixed rate jumbo loans (typically loans over $417,000) increased just 0.03% to 5.48% this week from 5.45% last week.

Posted via email from juliewilliamson's posterous

Prices Rise for Second Consecutive Month #realestate

2011-07-06T11:42:00.001-07:00

Hours after the National Association of REALTORS® announced an 8.2 percent jump in May prices, CoreLogic confirmed its May numbers show a second consecutive month-over-month increase.

According to the CoreLogic Home Price Index, national home prices—including distressed sales—increased by 0.8 percent in May 2011 compared to April 2011. On a year-over-year basis, home prices declined by 7.4 percent in May 2011 compared to May 2010 after declining by 6.7 percent in April 2011 compared to April 2010. Excluding distressed sales, year-over-year prices declined by 0.4 percent in May 2011 compared to May 2010 and by 0.8 percent in April 2011 compared to April 2010. Distressed sales include short sales and real estate owned (REO) transactions.

“Two consecutive months of month-over-month growth and continued relative strength in the non-distressed market segment are positive seasonal signs in the housing market. Slowly declining shadow inventory and stabilized negative equity levels are also positive signs. Nonetheless, the fragile economic recovery is still critical to the long-term recovery in the housing market,” says Mark Fleming, chief economist for CoreLogic.

National Highlights as of May 2011:

• Including distressed sales, the five states with the highest appreciation were: New York (+4.4 percent), Vermont (+3.9 percent), North Dakota (+3.8 percent), Hawaii (+2.5 percent) and the District of Columbia (+0.5 percent).

• Including distressed sales, the five states with the greatest depreciation were: Idaho (-16.4 percent), Michigan (-12.9 percent), Arizona (-12.1percent), Illinois (-11.8 percent) and Nevada (-11.6 percent).

• Excluding distressed sales, the five states with the highest appreciation were: West Virginia (+10.1 percent), Hawaii (+9.0 percent), North Dakota (+8.6 percent), Vermont (+6.3 percent) and New York (+6.1 percent).

• Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.8 percent), Idaho (-7.9 percent), Arizona (-7.0 percent), South Dakota (-6.1 percent) and Minnesota (-5.0 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2011) was -32.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.2 percent.

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 91 are showing year-over-year declines in May, unchanged from April.

Posted via email from juliewilliamson's posterous

Pending Home Sales Turn Around in May #realestate

2011-07-05T14:06:00.001-07:00

Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 8.2 percent to 88.8 in May from an upwardly revised 82.1 in April and is 13.4 percent higher than the 78.3 reading in May 2010. The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

This is the first time since April 2010 that contract activity was above year-ago levels, and the monthly gain was the strongest increase since last November when the index rose 10.6 percent.

Lawrence Yun, NAR chief economist, says the improvement bodes well for home prices. “Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace,” he says. “Some markets have made a rapid turnaround, going from soft activity to contract signings rising by more than 30 percent from a year ago, including areas such as Hartford, Conn.; Indianapolis; Minneapolis; Houston; and Seattle.”

Posted via email from juliewilliamson's posterous

Five Real Estate Trends to Watch For: Real Estate Veteran Points out Key Growth Opportunities

2011-06-30T13:10:00.001-07:00

If the housing market were human, it would look like it just wrestled a few alligators, after running an obstacle course through a snake pit. The market is beaten and bruised, but still trying to emerge from the recession, which is why Greg Rand, a 20-year real estate veteran and author of Crash Boom from Career Press, wants people to know about five new trends that could help them beat the housing blues. “One of the key elements of a free market is chaos,” Rand says. “Chaos is how the markets figure out how to move forward. The important thing to realize in the midst of all these people talking about ‘the housing market’ is that the market isn’t some nameless, faceless thing that lumbers around aimlessly as if it has a life of its own. The market is made up of buyers and sellers. People, just like you and me, who are trying to figure out how to buy low and sell high. It doesn’t matter if you’re a homeowner or an investor. The secret to making sure your real estate doesn’t turn into a money pit is to watch the trends so you can predict where the prices will rise and where they won’t.” Rand’s five trends to watch include: • Short-Term Pain – Show me a market where home prices are back to 2002 levels, and I will show you a market that is overcorrecting. • Overdevelopment – One of the reasons the market is overcorrecting is overdevelopment and speculation, as is the case in Florida. Another reason is that the job base has eroded, like in Detroit. Isolated, explainable, short-term distress is the secret. Find your Florida. • Jobs, Jobs, Jobs – Track employment trends to see where companies are moving, and you will see a harbinger for long-term housing demand. • Lifestyle – Nothing drives migration patterns long term more than the pursuit of happiness. Look at climate (the Carolinas), leisure trends (Colorado) and cost of living (Texas) for triggers on where the market may shift. • Responsible Government – Look at the state government. Does the state and city in question reward or punish risk-takers? Are you likely to suffer if you succeed there? If so, find somewhere that appreciates entrepreneurs. There’s nothing worse than putting your money on the table, only to have it redistributed. “It comes down to the idea that no matter how the markets change, no matter which way the winds shift, people will always need a place to live,” Rand adds. “That’s been true of America since the first log cabin. If you plug into that concept, and leave fear in a box on the shelf, you can be ahead of the curve and ride the wave of the trends that matter.”

Posted via email from juliewilliamson's posterous

New HUD Study: $26 Billion in Major Repairs Needed in Public Housing

2011-06-29T11:24:00.001-07:00

The U.S. Department of Housing and Urban Development recently released a study that finds the nation’s 1.2 million public housing units need an estimated $25.6 billion for large scale repairs. This study updates a 1998 analysis and includes costs to address overdue repairs, accessibility improvements for disabled residents, lead abatement, and water and energy conservation that would make the homes more cost effective and energy efficient.

HUD’s study, Capital Needs in the Public Housing Program, updates the national estimate of capital needs in the public housing stock in the U.S. Unlike routine maintenance, capital needs are the large-scale improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency. The study also includes the first extensive look at the estimated cost of energy and water conservation projects.

“The new capital needs estimate far exceeds our annual budget for these repairs and illustrates why America needs a long-term strategy to address the loss of thousands of public housing units annually,” says HUD Secretary Shaun Donovan. “At a time when budget deficits require the Federal government to tighten its belt, many of the nation’s public housing units are buckling under a severe backlog in capital needs. Public housing owners are forced to make tough choices between repairing roofs and replacing plumbing—or worse, demolishing units altogether—because there simply isn’t enough money to go around. That’s why we introduced Choice Neighborhoods and our new Rental Assistance Demonstration as part of our comprehensive strategy to keep these homes on firm financial footing.”

Despite public housing programs created to address severely distressed public housing, such as HOPE VI, or initiatives to raise capital to make major improvements to the public housing stock, such as HUD’s Capital Fund Financing Program, the country is still losing several thousands of public housing units per year. And even though housing authorities have renovated and developed nearly 380,000 publicly owned affordable homes using the $4 billion they received through the American Recovery and Reinvestment Act of 2009, the need for a solution to preserve the housing stock remains great.

In November 2007, Congress directed HUD to compute new national estimates of capital needs and compare them to prior estimates from 1998. HUD began the new study in April 2008 and determined the total capital needs estimate, commonly referred to as the “backlog,” is $25.6 billion or approximately $23,365 per unit. Moreover, the study determined that with normal use and aging, each year the units accrue an additional $3.4 billion of needed repairs and replacements—or roughly $3,155 per unit. These accrual costs exclude routine maintenance costs and are calculated based on the assumption that the backlog is met.

According to HUD’s analysis, a simple comparison of 1998 and 2010 data reveals the estimated total backlog of capital need decreased by approximately 3.4 percent over 12 years. Part of this decrease is explained by a nine percent decline in public housing units in 2010 and an increase in average per unit repair cost. The new study estimated that annual accrual needs climbed by 15 percent from 1998, due in part to lagging repairs to major systems that eroded their overall lifespan.

HUD has proposed a number of new initiatives to address this backlog, including Choice Neighborhoods and the Rental Assistance Demonstration (RAD). Choice Neighborhoods provides grant funding to demolish and redevelop public and assisted housing while RAD seeks to address the backlog and future need in the entire public housing stock by allowing private investment in the stock. Both programs are part of a comprehensive strategy proposed by the Obama Administration to offer a long term solution to preserve and enhance the country’s affordable housing stock, including leveraging public and private funding to make much-needed improvements.

Posted via email from juliewilliamson's posterous

Experts Agree Prices Have Bottomed Out and Will Stay There #realestate

2011-06-28T13:29:00.001-07:00

A significant majority of the 108 economists and experts participating in MacroMarkets’ June Price Home Expectations panel believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end.

Despite persistent macroeconomic uncertainty and unprecedented housing market dysfunction, almost two-thirds of the panelists see the U.S. residential real estate market as at an historic turning point, says Robert Shiller, MacroMarkets co-founder and chief economist.

However, expectations for the pace of recovery fell. The group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent average annual growth in nominal home prices over the five-year period ending December 2015. The average expected cumulative home price change between Q4 2010 and Q4 2015 is just 5.71 percent, $1.2 trillion less in aggregate U.S. single-family housing wealth at the end of 2015 than projected just six months ago.

Terry Loebs, MacroMarkets managing director, confirmed that a wide variety of individual views continue to be expressed by the panel. Loebs says, “Looking at expected housing market performance through the five year period ending 2015, the most optimistic quartile of panelists projects 15.3 percent average price growth, while the most pessimistic quartile of panelists projects 6.0 price average price erosion from Q4 2010 levels. This spread is huge, representing almost $4 trillion in housing market value. This is a gut wrenching time for market stakeholders and policymakers, because each of these scenarios is plausible.”

Posted via email from juliewilliamson's posterous

FHFA House Price Index Rises 0.8 Percent in April; First Monthly Increase Since May 2010

2011-06-27T14:56:00.001-07:00

U.S. house prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.3 percent decrease in March was revised to a 0.4 percent decrease.

For the 12 months ending in April, U.S. prices fell 5.7 percent. The U.S. index is 19.3 percent below its April 2007 peak and roughly the same as the January 2004 index level.

The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally adjusted monthly price changes from March to April ranged from -1.3 percent in the Mountain Division to +2.2 percent in the New England Division. Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs on the following pages.

FHFA has corrected some data in the quarterly HPI released May 25, 2011. The quarterly, four-quarter, and five-year price change estimates for Nebraska, Massachusetts, and Montana have been modified. The underlying index values for those states were correct, but the reported price changes were not accurate. The corrected numbers are now reflected in the tables and graphs in the revised news release and elsewhere on the FHFA website.

Posted via email from juliewilliamson's posterous

Regional Spotlight: HUD Secretary Announces Disaster Assistance for Montana Storm Victims

2011-06-24T15:39:00.001-07:00

U.S. Housing and Urban Development Secretary Shaun Donovan recently announced HUD will speed federal disaster assistance to the State of Montana and provide support to homeowners and low-income renters forced from their homes following severe storms and flooding in April.

Last week, President Obama issued a disaster declaration for Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Dawson, Fallon, Fergus, Garfield, Golden Valley, Hill, Judith Basin, McCone, Meagher, Musselshell, Petroleum, Phillips, Powder River, Prairie, Roosevelt, Rosebud, Stillwater, Sweet Grass, Treasure, Valley, Wheatland, Wibaux, and Yellowstone Counties. The disaster declaration also includes, Crow, Fort Belknap and Rocky Boy’s Indian Reservations. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties.

HUD is:

• Offering the State of Montana and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD’s Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;

• Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;

• Making mortgage insurance available– HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;

• Making insurance available for both mortgages and home rehabilitation– HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and

• Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.

Posted via email from juliewilliamson's posterous

HUD Secretary Announces $67 Million in Grants Will Soon Be Available In Second Round of Sustainable Communities Regional Planning Program

2011-06-23T13:42:00.001-07:00

WASHINGTON – Today, U.S. Housing and Urban Development Secretary Shaun Donovan announced that HUD will be investing an additional $67 million towards creating stronger, more sustainable communities that connect housing to jobs while fostering local innovation and building a clean energy economy through its Sustainable Communities Regional Planning Grant program.

HUD provided advance notice today that the second round of Regional Planning grants will soon be made available through a Notice of Funding Availability. The grants will be awarded competitively to multi-jurisdictional and multi-sector partnerships as well as regional consortia consisting of state and local governments, metropolitan planning organizations (MPOs), educational institutions, non-profit organizations and philanthropic organizations. This year’s funding was approved by Congress in HUD’s 2011 budget, as part of $100 million devoted to the agency's Office of Sustainable Housing and Communities. To read the full text of HUD's advance funding announcement, visit HUD's Sustainability website.

"I am pleased to continue HUD’s commitment toward supporting regional planning for sustainable communities by announcing that we will soon make $67 million in new funding to this important grant program,” said Donovan. “On the heels of the second anniversary of the Partnership for Sustainable Communities these grants will further the Obama Administration’s commitment to help communities nationwide improve access to affordable housing, increase transportation options, and lower transportation costs while protecting the environment and people’s health.”

This year’s Regional Planning Grant program will encourage grantees to support regional planning efforts that integrate housing, land-use, economic and workforce development, transportation, and infrastructure developments in a manner that empowers regions to consider how all of these factors work together to bring economic competitiveness and revitalization to a community. The program will place a priority on partnerships, including the collaboration of arts and culture, philanthropy, and innovative ideas to the regional planning process.

Recognizing that areas are in different stages of achieving sustainability, HUD will establish two funding categories for the Sustainable Communities Regional Planning Grant program.

Category 1 Funds: Can be used to support the preparation of Regional Plans for sustainable development.
Category 2 Funds: Can be used to support efforts to modify existing regional plans so that they are in accordance with the Partnership for Sustainable Communities’ six Livability Principles. Category 2 Funds also may be used to prepare more detailed execution plans for an adopted regional plan for sustainable development and limit predevelopment planning activities for catalytic projects.

The grant program builds on the Partnership for Sustainable Communities, an innovative interagency collaboration, launched by President Obama in June 2009, between the Department of Transportation (DOT), the Environmental Protection Agency (EPA) and HUD to provide more sustainable housing and transportation choices for families and lay the foundation for a 21st century economy. Guided by six Livability Principles, the Partnership is designed to remove the traditional silos that exist between federal departments and strategically target the agencies' transportation, land use, environmental, housing and community development resources to provide communities the resources they need to build more livable, sustainable communities. Last week, the Partnership marked its second anniversary through a website, www.sustainablecommunities.gov, which provides a one-stop shop for best practices, grant announcement and accomplishments of the Partnership.

In 2010, HUD awarded $100 million in Regional Planning grants to 45 rural and metropolitan regions around the country, with $25 million dedicated to areas with populations less than 500,000. This year, HUD is renewing that commitment by allocating at least $25 million from the second round of grants for regions with populations less than 500,000. Currently, more than 75 million people live in regions supported through the first generation of Sustainable Communities Regional Planning Grants.

Ultimately, this regional planning initiative will provide a blueprint for public and private investment decisions that will support a more sustainable future for a region. The size of grants awarded will be determined by the size of the applicants geographic area, whether a large metropolitan region or a smaller rural community. Grant applications, which will be reviewed not only by HUD, but by DOT and EPA and several other federal agencies, will be due later this summer.

In addition, Secretary Donovan and HUD are committed to providing the highest level of transparency possible as the Office of Sustainable Communities works to streamline federal investments. HUD's new sustainability website will allow tax payers to see where funds are being spent and hold federal leaders accountable, and for local partners to access valuable information and resources.

Posted via email from juliewilliamson's posterous

Biggest Generations Will Redefine Cities and Suburbs #realestate

2011-06-22T11:33:00.001-07:00

The largest generations in the nation’s history, Baby Boomers and their children, will be hugely influential in redefining living and working environments for decades to come.

Downtown cores and outlying suburbs will bear the brunt of the new pressure for growth, says Patrick Phillips, CEO of the Urban Land Institute at the annual conference of the National l Association of Real Estate Editors in San Antonio.

In addition to housing Boomers who will live longer than their parents and Echo Boomers, who will form more but smaller households, America will have to add 150 million more people over the next 40 years.

They want to live in pedestrian-friendly, transit-oriented mixed-use environments that de-emphasize auto dependency,” Phillips says.

As urban areas have become more congested, the convenient location of first-tier suburbs is increasingly appealing to consumers seeking to rent as well as buy, he says. “The disconnect between housing and jobs is evident in long daily commutes, time wasted in traffic, and an overall lower quality of life. This is not a sustainable growth model.”

Population growth will put pressure on the existing shortage of rentals in many markets and mandate compact, downtown development and better coordination of land use planning.

Together, all of this will cause a lasting change in what and where we build. Piece-meal, poorly connected development will become a thing of the past. We can expect better coordination of land use planning and transportation planning so that more development is oriented to transit options.

The Urban Land Institute provides leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.

For more information, visit www.realestateeconomywatch.com.

Posted via email from juliewilliamson's posterous

Tough Real Estate Market Inspires Creativity All Around

2011-06-16T12:38:00.001-07:00

The housing market’s continuing funk has metro Atlantans using a grab-bag of creative strategies to buy, sell or just tread water so they can make a career move.

For instance:

• Renting out a property has become the end-run around the market’s chokehold on mobility. More homeowners are turning to real estate agents to keep an eye on their homes, not sell them. Homeowners typically rent out their homes so they can buy or rent somewhere else. This has created a new line of property management work for the real estate industry.

• Home-staging has increased in popularity as a tool—and a necessity—for selling homes now that a yard sign and a quick sweep of the front steps won’t get the job done. Today, clearing clutter and redecorating in neutral hues and designs is key to finding potential buyers.

• Consumers and real estate professionals alike are embracing all sorts of technology. Virtual home tours are de rigueur. A twist on barcodes called QR lets people check out a home on a cell phone or other mobile device. Multiple listing services are not only helping consumers find homes but providing financial help as well.

• With stricter mortgage requirements in place, little-known federal and local programs are emerging as rich uncles for would-be home buyers, and not just for those with low income or first-time home buyers.

“It’s like trying to find buried treasure,” says Rob Chrane, president and founder of Workforce Resources, a 3-year-old Atlanta company that connects people with hard-to-find financial resources.

In metro Atlanta two to three dozen home-buying assistance programs are available, Chrane says. Real estate agents use down-payment assistance programs to market homes. A first-time homebuyer in metro Atlanta could be eligible for help on a home worth up to $300,000. And if you are interested in buying property built with tax breaks, there are deals too.

David Stevenson bought a move-in-ready, three-bedroom, two-bath 1,400-square-foot home in Rex for $55,000 under the federal Neighborhood Stabilization Program, set up in 2009 to help communities deal with foreclosures.

Stevenson used the $5,000 he got through the program to pay his closing costs.

The program targets educators, medical personnel, police officers, fire fighters and military families and requires at least a $500 down-payment, good credit and other criteria.

“I’ve been so happy. I’ve been telling all my friends about the program and how great it is,” says Stevenson, 51, a quality assurance technician for QuikTrip Kitchens who stumbled upon the NSP program while house-hunting.

Posted via email from juliewilliamson's posterous

#realestate: HUD Awards $31 Million to Promote Jobs and Self-Sufficiency for Public Housing Residents

2011-06-15T11:55:00.001-07:00

The U.S. Department of Housing and Urban Development recently awarded more than $31 million in grants to public housing authorities, resident associations and non-profit organizations across the U.S. to help public housing residents connect to services available in the community to find employment to increase their economic independence. The funding will also link the elderly and people with disabilities with supportive services that allow them to maintain independent living and age-in-place.

“We need to take a wider view of the needs of public housing residents beyond just housing if we’re to be true to the goal of promoting self sufficiency,” says HUD Secretary Shaun Donovan. “The caseworkers that housing authorities can hire or keep on staff help thousands of public housing residents connect to opportunities to obtain jobs or increase their incomes that lead to self-sufficiency and improve quality of life.”

HUD’s Resident Opportunities and Self Sufficiency (ROSS) – Service Coordinators Program helps public housing authorities (PHAs), resident associations or non-profit organizations hire or retain service coordinators who work directly with residents to assess their needs to connect them with education, job training and placement programs and/or computer and financial literacy services available in their community to promote self-sufficiency. For an elderly or disabled resident, the service coordinator arranges supportive services that allow them to maintain their independent lifestyle.

The purpose of HUD’s ROSS—Service Coordinators Program is to encourage local, innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.

Posted via email from juliewilliamson's posterous

5 Points for Effective Leadership in Today’s #RealEstate Changing Market

2011-06-14T15:10:00.001-07:00

Real estate professionals are playing a critical role in moving the housing market forward through these tough times. Consumers, investors, builders and lenders have turned to highly trained and skilled agents to represent their interests in transactions that are very important to them. They are looking for leadership. By developing your local market skills and global market awareness, you position yourself to assist each of these groups and ultimately benefit the industry and the economy.

Here are five ways to emerge as a market leader:

1. Understand the new market – You can’t control it, but you can respond appropriately to current economic and industry trends. Pay close attention to information that is critical to your business, such as existing- and new-home sales, unemployment and foreclosure statistics, and government-backed and private programs that benefit the industry.

2. Think strategically – Constantly plan how to grow your business based on shifting needs. Embrace new forces in the market, such as distressed properties, investor sales and rentals. Modify your services to accommodate people in these realms.

3. Prioritize – You’re better off focusing on your top goals and strategies rather than dabbling in everything. Take on new projects that expand your services rather than those that divert your attention from the most vital tasks.

4. Be assertive – True leaders don’t wait to see what happens with the market. Take steps that can help you and your clients today, and reach out in new ways to potential customers and strategic business partners. If you can fill an emerging need in your local real estate market, you’ll stand out.

5. Get training – A mentor or coach can help you exceed what you can do on your own. And designation courses are a great resource for the latest tools in various specialty areas. Consider earning a new certification or taking a refresher course related to one you already hold.

You can’t use yesterday’s methods and expect to be in business tomorrow. If you’re thinking ahead and making decisions now to reach your goals, you’ll flourish along with the people you’re in business to serve.

Posted via email from juliewilliamson's posterous

High Gas Prices Push Homebuyers to Go Green #realestate #greenca #greenlosangeles

2011-06-09T14:00:00.001-07:00

In cities like Los Angeles, where the car is king, the thought of commuters leaving their automobiles behind and opting for public transportation once seemed unimaginable. But CBS Evening News recently reported that Los Angeles commuter rail ridership had increased 8 percent from last year’s figures.

The rules of the road are shifting. High gas prices, climate change, and environmental awareness are altering the real estate landscape. The result is that more people are looking to work closer to home, not only because commuting is becoming more expensive, but also because of growing concern over car-centered life and its impact on greenhouse gases.

The lure of suburban developments, often located many miles from city centers, once offered both a relief from the bustle of urban life, and also the opportunity to get more home for the dollar. But with rising gas prices and hours braving rush hour traffic, the costs are outweighing the benefits.

Add growing awareness of a nation hooked on foreign fossil fuels, and the result is a paradigm shift in homebuyer consciousness.

“When words like sustainability, carbon footprint, and arctic snowcaps are entering our everyday conversations, it’s clear that climate change is affecting homebuyers’ decisions,” says Myra Nourmand, Los Angeles Real Estate Broker and author of the book From Homemaker to Breadwinner.

More than before, consumers are factoring the price they’re paying at the pump as well as their commuting time into their overall buying decision. In addition, the current economic slump means that people are working longer hours for the same pay. Thus long commutes add strain to an already stressed out workforce. Nourmand believes that these are key reasons why buyer demand remains high in areas like Santa Monica, Beverly Hills, Brentwood, Bel Air, and Hancock Park.

Historically, the three-part formula for high curb appeal has been prime location, attractive architecture, and sought-after square footage. The burst of the housing bubble caused a home’s price to take precedence above all else—at least that’s what it seemed like based on media reports. Where Nourmand works, however, location, architecture, and square footage remain at the top of buyers’ priorities.

“None of my clients are short-selling their homes, so you won’t find any fire sales among my listings,” says Nourmand.

In addition, foreclosures and subprime fallout are non-existent within her housing inventory. Meanwhile, comparably prestigious outlying areas, which were often viewed as alternatives to high-end L.A. neighborhoods, have experienced hard times.

“If high fuel prices are the norm—and that’s what the news indicates—then demand for property in desirable neighborhoods near urban centers should remain strong,” says Nourmand.

Posted via email from juliewilliamson's posterous

HUD #housing Provides $15 Million in Rental Assistance to Help Nearly 2,000 Families

2011-06-08T10:19:00.001-07:00

In 2009, an estimated 423,773 children lived in foster care in the U.S., as case workers helped to reunite them with their families or primary caregivers. Recently, the U.S. Department of Housing and Urban Development (HUD) announced nearly $15 million to help public housing authorities reunite foster children with their parents or prevent them from ever entering the foster care system.

HUD’s Family Unification Program (FUP) will make 1,931 Housing Choice Vouchers available for families whose inadequate housing is the primary factor in the separation or near separation from their children. In addition, FUP vouchers will provide stable housing for young adults (ages 18-21) who left or are aging out of the foster care system, preventing them from becoming homeless.

“It’s heartbreaking to realize that thousands of children live in foster care or are forced to live with other families simply because their parents can’t afford a home,” says HUD Secretary Shaun Donovan. “The funding provided today will keep thousands of families together under one roof.”

This funding allows local public housing authorities to work closely with local child welfare agencies to identify families with children in foster care or who are at risk of being placed in foster care and youth at risk of homelessness. These vouchers, like HUD’s Housing Choice Vouchers, allow families and youths to rent housing from private landlords and generally pay 30 percent of their monthly income towards rent and utilities.

According to the National Center for Housing and Child Welfare, it costs the federal government approximately $56,892 annually per family to place children into foster care. Yet the cost to provide housing and supportive services to one family averages less than $14,000 annually. Through this investment in FUP to reunify families who are separated due to housing problems, HUD will reunite nearly 3,500 children with their parents, thus saving $74 million in annual foster care expenditures. Cost savings are also considerable for young people aging out of foster care. The average annual cost of a FUP voucher for young adults is $5,600—a tenth of the estimated costs associated with undesirable outcomes such as homelessness, incarceration, and residential treatment.

“With this investment of FUP vouchers, Secretary Donovan continues to demonstrate his understanding of the critical role stable housing plays in keeping families together and safe,” says Ruth White, Executive Director of the National Center for Housing and Child Welfare. “We applaud HUD for leading the way to kind of interagency resource sharing that will reunify thousands of children with their families, prevent homelessness among youth aging out of foster care, and ultimately reduce costs.”

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Posted via email from juliewilliamson's posterous

3 Ways to Sell More Effectively to Baby Boomers #realestate

2011-06-06T14:44:00.001-07:00

With 60 million baby boomers online, marketers need to pay attention to this generation. An estimated 78.2 percent of boomers are online, accounting for one-third of the internet population. As boomers control more than $2 trillion in annual spending, this demographic represents a sizeable opportunity for marketers who target them. Baby boomers spend more time (39.3 hours per month in 2010) and money ($650 per three-month period in 2010) online than any other demographic. Brand marketers looking to reach this segment should take these three tips into consideration:

1. Know your audience. While it may seem elementary, it’s worth reiterating the importance of understanding who you’re marketing to. What defines a baby boomer? Ranging in age from 46- to 65-years-old, baby boomers are a free spirited generation that values freedom of thought and self-expression. As a competitive, hardworking and driven generation, boomers lead active and fit lifestyles and hold social causes and individuality in high regard. They’re by no means “over the hill.” In fact, many boomers consider themselves to be in the prime of their lives.

2. Empathize with their concerns. According to The Pew Research Center’s Generations Online 2010 survey, looking up health information is the third most popular online activity for baby boomers, behind search and email. Approximately 84 percent of boomers access health information online, confirming that as they begin to reach the age for retirement and eligibility for Medicare, health becomes the topic at the forefront of their minds. Advertising offers related to healthcare and Medicare will naturally become more popular and benefit from increased advertiser concentration.

By appealing to boomers’ lifestyle characteristics and remaining sensitive to their fear of getting older, marketers can tap into a new source of revenue. It’s important though to avoid discussions of the negative aspects of old age and its associated issues. Focus on highlighting the benefits of products and services that promote healthy living and prolonging youthfulness.

3. Don’t box yourself in. While it’s important to target your audience with specifically tailored offers that will appeal to their interests and characteristics, it may be worthwhile to generalize efforts so as to draw in slightly younger consumers as well. Play into boomers’ lifestyle traits with offers for physical fitness, leisure, travel and adult education, as these may also prove enticing to a wider audience, which can earn you more bang for your buck. Find the balance between casting too wide or narrow a net to maximize your efforts and returns.

Since baby boomers represent a substantial and often untapped gold mine, make sure you lavish sufficient attention on this demographic. In order to succeed in reaching this audience, make boomers feel good about themselves by engaging their desire to maintain a youthful and active lifestyle while remaining financially independent. Do so and you may find yourself rewarded with boomers’ loyalty.

Posted via email from juliewilliamson's posterous

The Future of the Disability Housing Market #realestate

2011-06-06T14:23:00.001-07:00

Americans living with disabilities struggle every day to find affordable and accessible housing on low incomes. The Federal Reserve Bank of Philadelphia will join Inglis Foundation and the Disability Opportunity Fund from 9 a.m. until 3:15 p.m. on June 14 to inform organizations interested in developing such housing of existing challenges, new HUD initiatives and financing opportunities.

Individuals living with disabilities—who are often among the nation’s poorest citizens—can find it challenging to locate affordable and accessible housing, and the organizations who serve these individuals find it equally challenging to help them due to constrained funding and a shortage of resources.

The conference is intended to inform professionals from organizations interested in developing affordable and accessible housing for people with disabilities of existing challenges, new U.S. Department of Housing & Urban Development (HUD) initiatives, and financing opportunities.

Lauren DeBruicker, Esq. partner, Duane Morris, LLP, Philadelphia, and Alysse Einbender, Landscape Architect, Glenside, PA, Inglis Foundation board members, know just how difficult it is to find truly accessible and affordable living space when you are living with a disability. DeBruicker became disabled due to a car accident while attending Stanford University, and Einbender became disabled from a rare neurological condition. Both were frustrated in their attempts to find truly accessible housing and had to do extensive remodeling each time they had to move.

Making a home accessible can include remodeling the bathroom and kitchen to make them functional for a wheelchair user, installing ramps leading to the front and back doors of the home, pulling up carpet and installing floors for the mobility of the chair. Bathroom renovations can include reworking entry and access to shower and vanity. Kitchen renovations can include lowering cabinets and creating space below stove and sink for wheelchair access. Renovation costs average $25,000 – $50,000 per household.

Unlike a majority of the disabled population, Einbender and DeBruicker are both working professionals and they still faced steep challenges when trying to find appropriate and accessible living space. The great majority of disabled adults are on SSI and living near or below the poverty line.

Facts & Statistics on Housing for the Disabled

• People with disabilities who rely on SSI as their sole source of income continue to be the nation’s poorest citizens. In 2008, the annual income of a single individual receiving SSI payments was $8,016—equal to only 18.6 percent of the national median income for a one-person household and almost 30 percent below the 2008 federal poverty level of $10,400.

• In 2008, as a national average, a person receiving SSI needed to pay 112.1 percent of their monthly income to rent a modest one-bedroom unit. People with disabilities were also priced out of smaller studio/efficiency units which averaged 99.3 percent of monthly SSI.

• Since 1998, the amount of monthly SSI income needed to rent a modest one-bedroom unit has risen an astonishing 62 percent—from 69 percent of SSI in 1998 to 112.1 percent of SSI in 2008.

• In 2008, 219 housing market areas across 41 states had modest one-bedroom rents that exceeded 100 percent of monthly SSI, including 25 communities with rents over 150 percent. Between 2006-2008, the number of market areas with modest rents higher than SSI rose from 164 to 219—a 34 percent increase. For the first time, there were 3 housing market areas—Honolulu (HI), Columbia City (MD), and Nantucket County (MA)—where SSI recipients needed to spend over 200 percent of their income for a modest 1- bedroom housing unit—not only an impossibility, but absurd.

• Since 1998, the value of SSI payments compared to median income has declined precipitously—from 24.4 percent of median income in 1998 to 18.6 percent in 2008—while national average rents have skyrocketed. The national average rent for a modest one-bedroom unit rose from $462 in 1998 to $749 in 2008 —an increase of 62 percent.

Posted via email from juliewilliamson's posterous

Harvard Study Warns of Rent Bubble #realestate

2011-06-02T13:42:00.001-07:00

For renters, the national recovery could be very bad news. That warning came from the Harvard Joint Center for Housing Studies’ latest report on America’s rental housing. Rental markets are now tightening, with vacancy rates falling and rents climbing. With little new supply of multifamily units in the pipeline, rents could rise sharply as demand increases. Regardless, affordability is likely to deteriorate further over the next few years as persistently high unemployment limits renter income gains.

When job growth regains momentum, the number of renter households could climb quickly. Given the long lead times needed to develop new multifamily housing, a sharp increase in demand could quickly reduce vacancy rates and put upward pressure on rents. While this would be good news for owners and investors in rental housing, it would also fuel the intense affordability pressures, the study warns.

A variety of rental market indicators suggest that the worst repercussions from the recession may be over. While this is good news for most of us, especially property owners, the recovery may increase the rent pressures on households still struggling in an environment of sluggish job growth. The ongoing foreclosure crisis should continue to spur growth in the number of renter households as former owners switch to renting. Single-family home foreclosures will also add a steady flow of units to the rental market. The ability of renter households to occupy these homes will be an important factor in maintaining the stability of distressed neighborhoods hard hit by the foreclosure crisis.

Although there appears to be an excess supply of rental housing at present, this could change quickly as the economy recovers and household formation among younger adults returns to a more typical pace. An upsurge in demand could outstrip the available supply and push construction activity back up, the study says.

One of the most important questions going forward is whether mortgage financing will be available to fuel rental property purchases and investments. Even before the financial crisis, Fannie Mae and Freddie Mac were an important source of financing for both multifamily and investor-owned single family properties. And during the crisis, the GSEs—along with FHA—accounted for the vast majority of new financing. As Congress takes up debate about what, if any, role the GSEs should play in the mortgage markets, policymakers must consider the vital importance they have as a source of capital for rental housing

Posted via email from juliewilliamson's posterous

REALTORS® Continue to Push Congress for Comprehensive GSE Strategy #housing #realestate

2011-06-01T11:05:00.001-07:00

The National Association of REALTORS® supports a secondary mortgage market model with some level of government participation that would protect taxpayers and ensure that creditworthy consumers have access to affordable mortgage capital in all markets at all times.

That is the message delivered recently by NAR President Ron Phipps during a Senate Banking, Housing and Urban Affairs Committee hearing.

“As the leading advocate for homeownership, REALTORS® agree that the existing housing finance system failed and that reforms are needed; however, those reforms must be done in a methodical, measured and comprehensive effort based on practical market experience,” says Phipps. “We applaud the committee’s caution as you continue to discuss this very important and complex issue.”

In his testimony, Phipps urges support for comprehensive reform of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which remain critical to ensuring mortgage liquidity, and expressed concern over recently proposed legislation that takes a piecemeal approach and could increase uncertainty in the housing market, which is still struggling to recover.

To ensure a viable secondary mortgage market going forward, Phipps says that private capital must return to the housing finance market and the government’s involvement needs to be reduced; however, full privatization is not a viable option.

“There are strong negative repercussions for relying solely on private capital to form the foundation of the housing finance system. After the housing downturn, private mortgage capital became nearly nonexistent, and without the GSEs, qualified borrowers would not have had access to the funds required to purchase a home. A government backstop is critical to ensure a continual flow of mortgage liquidity and the long-term viability of the housing market,” Phipps says.

He adds that in a fully private market, financial institutions with FDIC-backed deposits would focus more on optimizing their profits in a noncompetitive banking industry, and potentially fostering new, risky mortgage products that place taxpayers at risk, rather than products that would be in the best interests of consumers and the nation’s economy. That could lead to the end of long-term fixed rate loan products, like the 30-year fixed rate mortgage, and drastically raise the cost of mortgage capital for millions of American consumers.

Phipps also testified about another important issue that will dramatically impact the future of housing finance—the proposed risk retention regulation under the Dodd-Frank Act, which requires lenders that securitize mortgage loans to retain 5% of the credit risk unless the mortgage is a qualified residential mortgage (QRM).

“A poor QRM policy that focuses on high downpayment requirements rather than a variety of traditional safe, well underwritten products will exclude hundreds of thousands of buyers from homeownership, slowing economic recovery and hampering job creation,” says Phipps. “REALTORS® support a reasonable and affordable cash investment coupled with quality credit standards, strong documentation and sound underwriting; but higher downpayments do not have a meaningful impact on default rates.”

He also expressed strong support for making permanent the GSE and FHA mortgage loan limits that are currently in place and set to expire later this year. Phipps said that in today’s real estate market, lowering the loan limits will restrict liquidity and make mortgages more expensive for households nationwide. More than 612 counties in 40 states and the District of Columbia will see an average decline of $50,000 in loan limits in their area.

“REALTORS® look forward to working with Congress and our industry partners to design a secondary mortgage model that will best serve our nation today and into the future,” says Phipps.

Posted via email from juliewilliamson's posterous

Unconventional Green Real Estate Marketing with Daily Deal Sites

2011-05-31T10:37:00.001-07:00

Retailers, spas, and restaurants have figured out how to tap daily deal sites, such as Groupon, to snag new customers.

The daily deal sites work with businesses and develop deep discounts on products and services. Deals, typically good for 24 hours, are e-mailed to the site’s subscribers. They include a description of the deal and the business and a link to the business website.

The concept relies on collective buying power. If a certain number of people commit to buy, then the deal—whether it’s 50 percent off dental services or deep discounts at boutiques and restaurants—is on. The daily deal sites get a percentage of the price of each deal.

For many businesses, it’s an ideal way to woo new customers and bring more traffic through the doors.

With a little creativity and caution, real estate businesses can benefit too.

Chicago-based Dream Town Realty did a Groupon deal earlier this year and grabbed lots of attention because it was the first real estate company to do such a deal. There was, of course some fine print, but the offer basics are: $25 bought first-time clients $1,000 off the closing costs on a house priced at $150,000 or more.

If you don’t want to follow the Dream Town model, devise your own creative deals to promote your green knowledge and raise your business profile.

Here are five ideas:

Closing gift: Team up with an array of like-minded green service providers and build a suite of discount services as a closing gift. Market this “Home Closing Bonus Package” as an incentive to clear buyers’ minds about those pesky move-in projects. Partner, for instance, with a local landscape designer, a plumber, and a maid service. You get the real estate transaction. The plumber fixes leaks or installs low-flow faucets. The landscaper develops a garden design. And the maid does a move-in cleaning with green products.

Green tours: Partner with a local bike or Segway provider and do a “car-free tour” of local green homes. Get an organic cafe on board and ask it to offer healthy snacks along the route. Wrap up the event with an organic picnic or with a stop at the eco-friendly café or farmers market.

First-time moms: First-time moms typically are tremendously concerned about creating a safe, healthy environment for their newborns. Why not offer an in-house consultation on creating an eco-safe nursery? You can cover the overall health benefits of a green home and then zero in on some child-specific topics, such as organic bedding and the importance of choosing paint, carpet, and furnishings that don’t off gas. You can opt for a city-specific daily deal site or mom-centric ones, like http://deals.mamapedia.com or www.plumdistrict.com.

Unbundle your services: Why not sell bits and pieces of your green knowledge? You could offer one-hour visits to people’s houses and show homeowners how to fix the biggest energy wasters. Bring along a goodie basket with CFLs, power strips, weather-stripping, and so forth, to install. Or team up with an auditor who can perform a blower door test as part of the deal.

Throw a party: Take a page from luxury home specialists who toss lavish cocktail parties at homes they’re marketing. Your party could feature green cocktails and appetizers and you could invite other green businesses to offer party favors and giveaways. Or ask the local car dealer to bring a hybrid and give attendees spins in the car. To further entice guests, why not offer to donate your take from the event (what you charged participants who bought the deal) to a local green charity? You may not make a dime from such a venture, but it will get your name out as a green real estate practitioner and provide exposure for your listing.

Caveats

1. If you decide to do a deal, be sure to promote it to clients and prospects through your social media channels.

2. Since the daily deal sites provide links to your website, be certain your information and bio are up to date and that the information reflects your expertise and NAR’s Green Designation.

3. Get up to speed on some of the pitfalls of daily deal sites.

• Many businesses, for instance, find themselves overwhelmed by an onslaught of new customers, so be ready to handle a higher call and e-mail volume.

• Know that some deal buyers are in the game for one-time discounts or freebies and have no intention of becoming regular clients. Beware that not every business rakes in big bucks and don’t expect the venture to eventually fund a European vacation or your kid’s college education.

• If you’re looking to make a couple bucks or cover your costs, be sure that you and anyone you partner with crunch the numbers in advance.

4. Read the fine print and understand exactly what you’re agreeing to with the daily deal company. Don’t forget to factor in the cut they take.

5. Check with your attorney and insurer to be certain you’re not taking on liability for which you’re not covered. Also be sure that any partners, such as bike and Segway companies you work with have the proper insurance in place.

6. Be sure to check into whether your proposed “deal” raises any issues under your state license law, particularly if it involves sharing a portion of a commission you may earn with an unlicensed third party.

Posted via email from juliewilliamson's posterous

Listing Your House? Stay Away From These Words #realestate

2011-05-20T11:29:00.001-07:00

Courtesy of By Ann Brenoff of AOL Real Estate

In this buyers' market, even the newbie lookers are savvy to listing descriptions. Who among us doesn't know that "cozy" means "small," or that "needs some TLC" means "bring your bulldozer?"

But about a decade ago, Paul Anglin, who teaches real estate and housing trends at the University of Guelph in Ontario, Canada, studied the language used in listings and came up with some findings that bear repeating in today's slower-sales market.

For example: Homes where the seller is described as "motivated" actually take 15 percent longer to sell. And besides, how many sellers today aren't motivated?

To be fair, Anglin did his research before the current boom-and-bust cycle, and we all know how much the housing market has changed since then. No one, including Anglin, has revisited the subject of what impression prospective buyers form from the use of particular words in a listing.

But for what it's worth -- and with the caveat that while the market may have changed, human nature likely hasn't -- here are some things to consider as you describe your house for sale.
1. Put style over substance.

Words that spoke to the general attractiveness of a property helped it sell faster than those that spoke to "value" and "price." Homes in Anglin's study that were called "beautiful" sold 15 percent faster. On the other hand, homes described as a "good value" sold for 5 percent less than average.

Real estate industry insiders say that today's buyers are all about getting a bargain, but that they still put great emphasis on the condition of the house -- and it better be tip-top. With the Internet information at a buyer's fingertips and the ability to easily research what else is for sale and what prices homes in a neighborhood recently fetched, the pricing process is a lot more transparent.

2. Don't bother telling buyers what to do.

Listings that proclaimed a house was something that they "must see" generally didn't motivate a soul. Using "must see" produced statistically insignificant results on the number of days a house sat on the market. In today's market, buyers are in the driver's seat. Find some other way to get them to your doorstep -- like competitive pricing.

3. Tell it like it is and be realistic about the results.

Words like "foreclosure," "as-is" and "bring your contractor" signal buyers that there is wiggle room and invite low offers. Words like "granite" and "gourmet kitchen" translated into a higher sale price. The only problem here is you can't inflate what you're working with. If your kitchen isn't gourmet, the word "functional" isn't going to bring buyers by the busload. If it's in your budget, consider a kitchen upgrade, however minimal, and call it "newly remodeled" for better listing results.

4. Don't use superficially positive language.

Mother was right: If you can't find anything nice to say, it's better not to say anything at all. You won't fool anyone. "Clean" and "quiet" not only won't rock anyone's boat, superficially positive words, in effect, damn with faint praise. You might want to stay away from "fresh paint" for the same reason.

Posted via email from juliewilliamson's posterous

Update Interiors with Wisdom Rather Than Big Budgets #decorating #realestate #staging

2011-05-19T11:19:00.001-07:00

Donna Hoffman, a Philadelphia interior designer, offers tips for those looking to refresh their dated decor without starting from scratch or incurring sky-high expenses. “As real estate values have fallen, many people are concerned with how much money to put into their homes. Yet discerning clients recognize that a dated interior really lowers the value of their home,” Hoffman says.

To reclaim your enjoyment of your home, here are five fool proof and fiscally prudent design tip secrets that Hoffman says are the budget savvy penicillin for outdated interiors:

• Deconstruct The Color Palette. Don’t throw out an existing color palette; deconstruct it. To do this, create a new color strategy that flips the existing main room color into the secondary position of “accent color.” For example, if it’s a blue and mauve interior that’s at issue, turn the blue into the new accent color.

• Neutralize The Room. Now that you’ve isolated your new accent color, remove all strong colors in the room except for your one accent. “This includes removing area rugs, throw pillows, accessories, dated wallpapers —anything that sings too loudly in the old color palette,” Hoffman says. “Keep only the ‘new’ accent color, letting everything else go neutral. By project’s end, you’ll be left with an ‘accent’ color that gorgeously pops amidst a new palette of neutrals. Paint the walls in a rich neutral like latte or one of the new chameleon neutrals of 2011 for a crisp current look.”

• Elicit The Power of Throw Pillows. “Custom is ideal for variety and impact, but if it’s beyond your budget, look for little jewels at retail,” Hoffman explains. “Sprinkle mostly neutral accent pillows in varied shapes and sizes through the room to move classic color, create interest and reinvigorate older upholstery.”

• Evaluate Draperies. If draperies boast the old color scheme, look tired or overly swagged and dated, take them down. “Go bare if you must,” Hoffman cautions, “because nothing in a room is better than something bad.” If you can afford to do custom in the new color strategy, this is the place to invest. “Custom draperies give tremendous aesthetic return on the dollar,” Hoffman explains. “But if custom is out, then to go for the best quality you can afford at retail, not the cheapest.”

• Examine The Sofa. Pillows can tone down a loud sofa, but they can’t hide a worn eyesore or a thoroughly outdated silhouette. Opt to update a dated sofa, even if at a budget retailer. Select a solid in a classic style, like a track arm or English arm. “These have the staying power of that little black dress. Keep it simple and dress it with accessories. In our case we’re doing pillows instead of pearls,” says Hoffman

Posted via email from juliewilliamson's posterous

Minority Homeownership Award Winners Help Sustain American Dream #realestate

2011-05-18T12:24:00.001-07:00

While the past few years have been challenging for many, owning a home continues to be a goal for Americans of every background, according to John D. Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity at the U.S. Department of Housing and Urban Development.

Trasviña made his remarks during the recent Multicultural Housing & HOPE Awards Symposium at the National Association of REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C.

Assistant Secretary Trasviña told REALTORS® that for the housing market and struggling home owners, the past few years have been filled with uncertainty and adversity, and that work needed to be done to restore faith in the value of owning a home, which helps shapes communities and strengthens the nation’s economy.

“It’s been a long journey and we’ve faced many challenges, but I believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that goal. We must all work together to defend and protect the American dream of homeownership,” he says.

Trasviña also praised the winners of the 2011 HOPE (Home Ownership Participation for Everyone) Awards, a national industry awards program that recognizes individuals and organizations for helping minority home buyers minimize and overcome barriers to owning and sustaining a home.

“I commend the HOPE Awards winners for the work they are doing—thousands have achieved and sustained home ownership because of your help. It takes vision to be a leader and there is no doubt that your service and vision are helping to dramatically change and improve the lives of so many people.

Thank you for what you have accomplished,” says Trasviña.

REALTOR® Alex Chaparro, past chairman of the National Association of Hispanic Real Estate Professionals, led the awards presentation and panel discussion with the HOPE Awards winners. The seven winners were chosen based on impact, innovation, minority focus, leadership, and contributions to increase affordable housing, in the areas of education, finance, leadership, media, housing project, public policy, and real estate brokerage. The winners were presented with trophies and $10,000 honorariums.

Phyllis Caldwell, director of the Center for Homeownership—Consumer Credit Counseling Service of Forsyth County Inc., in Winston-Salem, N.C., won the Education award. She shared how her organization is the central housing education, counseling and resource agency for Winston-Salem and Forsyth County residents. The one-stop, full-service housing counseling center has helped more than 900 people achieve home ownership through pre-purchase counseling, credit rebuilding, home buyer education, budgeting assistance, and seminars and workshops.

Howard Mandeville, executive director of Movin’ Out Inc., in Madison, Wis., won the Finance award and told attendees about how his nonprofit housing organization helps individuals with permanent disabilities and their families attain and sustain safe, affordable and integrated home ownership outside of group housing so that they may fully participate in their community. The organization has provided more than $18 million to families across the state, helping nearly 900 households achieve home ownership.

David Bland, chairman of Travois Inc., from Kansas City, Mo., received the Leadership award for his work offering development and financing assistance, and support and training to more than 50 American Indian tribes. Bland explained how tribes suffer from some of the highest poverty rates and worst housing conditions in the nation and how he has successfully raised more than $350 million in new private capital that has been used to build or rehab more than 3,700 homes for rent or ownership on reservations across the country.

Media winner eHome America, a product of the Community Ventures Corp., in Lexington, Ky., was represented by Senior Executive Vice President Sandra Noble Canon, who shared how an online home buyer education tool is a low-cost option for offering high-quality home buyer education to individuals in rural areas of the state with limited local resources. The multilingual course is based on NeighborWorks America curricula and has been so successful that in less than two years, more than 10,000 homebuyers in 42 states have completed the course.

Alejandro Becerra, author and independent consultant from Silver Spring, Md., received the Policy award for his efforts over three decades to advocate policies to increase and sustain minority ownership. Becerra told attendees about his work with HUD, where he pioneered a home ownership voucher program in Arizona; the U.S. Department of Agriculture, where he helped preserve the federal government’s only rural homeownership program for low- and moderate-income families; and the Congressional Hispanic Caucus Institute, where he formerly served as a Senior Housing Fellow.

Home HeadQuarters Inc., from Syracuse, N.Y., was the Project award winner.

Kerry Quaglia, executive director, received the award for the not-for-profit organization’s long-term dedication to revitalizing neighborhoods in central and upstate New York, especially in Syracuse’s Near West Side neighborhood.

The organization is revitalizing a dilapidated neighborhood near the city’s downtown and has acquired 103 residential properties. They are currently rehabbing, deconstructing, demolishing, or building new homes with an emphasis on energy conservation and affordable home ownership.

Ester Alfau-Compas, co-owner and broker of Adamo Realty Network in Miami, received the Real Estate Broker Award; her full-service real estate brokerage has helped hundreds of culturally diverse South Florida residents achieve the American dream of home ownership. She highlighted the brokerage’s decade-old housing education program that has been offered to more than 600 low- to moderate-income individuals each year and focuses on pre-purchase education, financial fitness counseling and post-purchase advice and resources.

Posted via email from juliewilliamson's posterous

How to Use Foreclosure Data to Identify Investment Opportunities #realestate

2011-05-17T13:58:00.001-07:00

In the current complex housing market, it is critical for real estate professionals to evaluate their individual markets for short-term and long-term real estate investment potential for their clients. In every fluctuating housing market, there are opportunities. The real estate professional who has a command of these nascent opportunities will be a sought-out source for advice-hungry buyers.

Home value shifts combined with employment levels and income growth can determine the short-term and long-term potential of a market. Ingo Winzer, President of Local Market Monitor, states that ”in over-priced markets, the momentum of home value changes is more important than income growth in determining future home values.”

But home values and employment data in geographic areas as large as cities or SMSA are irrelevant to investors. Sophisticated purchasers need information for areas no larger than zip codes to make informed decisions.

How can a real estate professional provide information to investors that will spotlight homes with the greatest probability for strong near term and long term appreciation?

Home valuations at zip code level compared with the foreclosure inventory for that same zip code can render a glimpse into the vibrancy of housing in any zip code.

The quantity of foreclosure homes in any area gives a better picture of the employment in the area compared with city-wide employment figures. An area with less than one foreclosure per 10,000 dwellings indicates low unemployment for that zip code—even if pockets within the same city are experiencing high unemployment.

By comparing the asking price for foreclosures in a zip code to similar non-foreclosure houses in the same zip code, real estate professionals can gauge the short-term and long-term investment opportunities for that zip code. If there is no greater than a 20 percent difference between the two, the area will recover quickly. The smaller the percentage of difference, the more quickly that zip code will rebound.

Posted via email from juliewilliamson's posterous

NAR Modifies Popular Green Designation Program to Focus on Residential Real Estate Practice

2011-05-16T14:27:00.001-07:00

—”NAR research has consistently shown that there is a considerable and growing market for green buildings, and many of today’s consumers want homes and communities that are more resource efficient and sensitive to the larger environment,” says NAR President Ron Phipps. “NAR’s Green Designation helps REALTORS® meet that consumer demand for green building practices. These revisions will help REALTORS® continue to bring value to buyers and sellers who value eco-friendly and energy-efficient homes.”

Because of high member demand for the residential aspect of the curriculum, the commercial and property management electives will no longer count as credit toward the designation but will be made available to members interested in those areas of study. The changes will include replacing the two-day core course and one-day elective courses with three one-day courses:

• Green 100: Real Estate for a Sustainable Future (day 1)
• Green 200: The Science of Green Building (day 2)
• Green 300: Greening Your Real Estate Business (day 3)

Students will need to complete all three days to earn NAR’s Green Designation. The updated program will be launched in late summer 2011. Until then, NAR’s Green Resource Council has reduced the prices of the existing online core and elective courses. The core course was $295 and is now $230; the residential elective was $125 and is now $99; and total cost for the full designation was $420 and is now $329.

NAR’s Green Designation was peer-reviewed by the Environmental Protection Agency and the U.S. Green Buildings Council, and received the 2009 Award of Excellence from the American Society of Association Executives. The Green Resource Council has forged strategic relationships within the green industry to create awareness of the designation, advance its mission, and provide continued education to the designee base.

Posted via email from juliewilliamson's posterous

Turnaround: 4 Months and Counting? #realestate

2011-05-16T10:19:00.001-07:00

Price declines will end and average U.S. home prices will stabilize by Labor Day. Prices in even the hardest-hit markets will level out by the end of 2012.

That’s the latest prediction from the authoritative Moody’s Analytics and Fiserv, Inc, after an analysis of home price trends in 375 markets tracked by the Fiserv Case-Schiller Indexes.

Fiserv reports that home prices have fallen so far that they are at pre-bubble levels, creating affordable housing relative to income which, coupled with a slowly improving economy, will finally end price declines.

The slide in home prices has greatly improved home affordability. Relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This dynamic, combined with growing economic strength, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year. By the end of 2012, home prices in even the hardest-hit housing markets will level out.

However, while Fiserv and Moody’s project the national U.S. home price average will stabilize in the third quarter of 2011, a 3 percent decline is expected in the first half of this year.

“The first step toward restoring confidence in housing markets is an improvement in consumer sentiment, which we expect will increase slowly through 2011 due to stronger job gains and a falling unemployment rate,” says David Stiff, chief economist, Fiserv. “As confidence rises, the decline in home sales that started in 2006 will, finally, come to an end.”

Even as balance returns to the housing market, Fiserv Case-Shiller data forecasts the pace of recovery will be uneven across U.S. metro areas.

“Many metro areas have vast inventories of vacant homes, a consequence of both over-building during the bubble and high rates of foreclosure,” says Stiff. “New data from the 2010 U.S. Census provide estimates of the depth of the overhang of vacant homes in some markets. Between the 2000 and 2010 Censuses, the overall U.S. housing vacancy rate increased by 2.4 percentage points. In metro areas with the largest price bubbles and crashes, housing vacancy rates have jumped by 3 to 7 percentage points.”

The most stressed U.S. housing markets are characterized by unemployment rates that exceed the national average and high housing vacancy rates. Examples include Detroit, Las Vegas and Orlando, where unemployment tops 10 percent and vacancy rates are above 15 percent. Stiff noted the feedback loop that continues to exert downward pressure on home prices in these markets:

“Economic growth in these markets was highly dependent on residential real estate from 2002 to 2006, with many new jobs tied directly or indirectly to booming housing markets. When the bubble popped, these markets suffered the largest job losses. Rapidly falling employment undercut housing demand, causing home price depreciation to accelerate, leading to more job losses in residential real estate.”

The markets that escaped this dynamic are better positioned for more robust recoveries. Examples include Dallas, Milwaukee, Houston, New York, Baltimore and Pittsburgh. Stiff notes that while many of these metro areas did experience double-digit home price declines, their economic growth was more balanced during the boom years, relying less on residential construction. Today, these markets benefit from relatively lower housing vacancy and unemployment rates.

Posted via email from juliewilliamson's posterous

HUD and German Ministry Agree to Cooperate On #Sustainability #housing

2011-05-12T10:15:00.000-07:00

While the U.S. Department of Housing and Urban Development (HUD) is working to promote sustainability in this country, the Ministry of Transport, Building and Urban Development (BMVBS) is pursuing a set of similar goals in the Federal Republic of Germany. Today, both agencies signed a Joint Declaration of Intent to work together to cultivate a dual framework to promote more sustainable and livable communities in both nations.

The Declaration signed today between HUD and its German counterpart will support a host of cooperative actions including: exchanging sustainability experts from each organization; sharing information and research; hosting bilateral conferences and other meetings at least twice a year; and sponsoring joint research studies.

“This Joint Declaration reinforces the idea that developing more sustainable communities is something both our nations recognize as critical to our futures,” says HUD Deputy Secretary Ron Sims during a signing ceremony at HUD Headquarters in Washington. “The U.S. and Germany share a common vision that we can build a better, more sustainable and livable tomorrow.”

“Our nations are urban nations. Not only does a majority of our people live in cities, they are the pillars of our economies and often focal points of the national heritage in our countries. Our joint action to foster sustainable and successful development for our cities therefore reflects our dedication to improve the living conditions in our societies as a whole,” emphasizes BMVBS State Secretary Rainer Bomba.

Germany and the U.S. already share a set of common interests involving sustainable communities. In the U.S., the Federal Partnership for Sustainable Communities is actively promoting a set of livability principles that include:

• Providing more transportation choices
• Promoting equitable, affordable housing
• Enhancing economic competitiveness
• Supporting existing communities
• Coordinating policies and leverage investment
• Valuing communities and neighborhoods

The Federal Republic of Germany and other European Union nations adopted the Leipzig Charter which recommends creating high-quality public spaces, promoting efficient and affordable urban transportation, and improving energy efficiency with a particular emphasis on underserved neighborhoods.

Within this dual framework the topic areas that may be pursued by HUD and the German Ministry include:

a. Analysis of integrated urban and regional policies relevant to the development and redevelopment of cities, metropolitan communities and rural areas in a broader framework with coordination of spatial, sectoral and temporal aspects.

b. Ways to foster the design and development of sustainable communities through integrated and inter-governmental partnerships in a federal system, with particular attention to transit-oriented development planning and finance.

c. Urban economic development and public–private sector investment partnerships, particularly in regard to sustainability, green retrofit, and the revitalization of cities in transition through large scale changes in their employment base.

d. Public-private partnership comparisons, in particular the varying degrees and methods of use of private corporate and philanthropic investment with public partners at all levels of government within the revitalization and sustainability themes;

e. Urban land use, including green space planning, urban farming and agriculture, temporary greening, brown field rehabilitation, as well as the quality of public spaces, urban man-made landscapes and architecture and their role as locational factors.

f. Construction technology and the development of building codes for safer, more affordable housing, with particular regard to residential energy efficiency, urban energy use, and solar, wind and geothermal housing advances.

g. Housing finance policy, including both homeownership and rental programs, and government monitoring of mortgage capital markets.

h. Housing rent subsidy programs: design, development, and administration.

i. Other national policy and research issues in housing and community development and related issues as may be determined by the two governments.

Posted via email from juliewilliamson's posterous

Spring Breathes Life into Prices #realestate #economy

2011-05-12T10:13:00.000-07:00

A seasonal uptick in both median prices and inventory has appeared in most metropolitan areas across the country, contradicting earlier price reports, according to Altos Research’s 20-city Composite trends data in April. Price increases are apparent in 24 of the 26 tracked markets, and inventory increases are apparent in 23 of the 26 tracked markets.

The week-over-week median prices have been increasing for a few months now, and the 90-day rolling average is now reflecting the same trend.

“The historical view tells us a seasonal increase in activity is expected at this time of year. Regardless of what’s happening in the economy as a whole, we see a seasonal spike in both median prices and inventory when the country starts to thaw from the winter months,” says the Altos report.

Altos’ national index median price rose to $440,194 in April, up 1.82 percent from $432,307 in March. The leaders in the price increase category were in “Sunshine States”—San Francisco (4.87 percent), San Jose (4.32 percent), Phoenix (3.30 percent), Denver (3.23 percent), and DC (3.04 percent).

Austin, Boston, Philadelphia, San Francisco, and Washington D.C. all showed double-digit inventory increases and Boston posted the biggest inventory increase at 19.18 percent. The 7-day and 90-day averages are both trending upwards for median prices and inventory. The 7-day trends are always the first indication of a shifting market and should be watched closely.

Prices were flat in New York, Philadelphia, Portland, Salt Lake City, Seattle, and Tampa. Las Vegas and New York were the only markets showing a decrease in inventory, and the decreases were modest (-1.05 percent and -0.26 percent, respectively). Compared to the big price drops over the past six months, this is welcome news for sellers.

The Altos Research Real-Time Housing Report provides up-to-the-minute data relative to housing market conditions in major markets around the nation. The Altos report uses metrics associated with active residential property listings to deliver real-time information

Posted via email from juliewilliamson's posterous

Home Alone Home Listed For Sale at $2.4 Million #realestate

2011-05-11T13:59:00.000-07:00

Luxury market homebuyers looking for a piece of cinematic history and refined Georgian charm need look no further than the new-to-market Winnetka home for sale. Featured in the family movie, Home Alone, this stately home is listed for $2.4 million by Marissa Hopkins, a broker associate with Coldwell Banker Residential Brokerage in Chicago.

Conveniently located in the Chicago North Shore suburb of Winnetka, this red-brick colonial Georgian home sits dramatically on a beautifully landscaped half-acre lot, just blocks from the quaint village center and magnificent Lake Michigan. The owners of the “Home Alone Home,” John and Cynthia Abendshien, lived there while the movie was being filmed. According to the Abendshiens, the legendary writer/director John Hughes chose this home because he felt it represented family life and a warm setting where memories could be made.

“This property has been home to our family for more than 20 years, and has been a perfect location for us to raise our daughter,” says John Abendshien. “There is such a strong sense of community in Winnetka and we will always have fond memories of the fun we’ve had here and the many people we’ve come to know and love.”

“Very few homes have a leading role in a movie, in a sense becoming an additional character,” says Hopkins, the listing agent with Coldwell Banker Residential Brokerage’s Highland Park office. “No detail was spared in this magnificent dwelling. It provides a surprise around every corner, from the Sydney Barton hand-painted dining room walls that illustrate an English Garden, to the unexpected green house window overlooking the gardens, to the spacious gourmet eat-in kitchen. John and Cynthia have created an inviting home, perfect for any family.”

Built in the 1920s, this classic, family-oriented home offers ample room to grow. The residence has four en-suite bedrooms, including the “attic bedroom” —a dormered and finished retreat with numerous nooks and crannies—and two grand suites. Privacy and comfort are the raison d’être for the four-room master suite, which spans the entire west wing of the home. This suite’s many features include a large sunroom, spacious master bath, and an elegant sitting room with built-in bookcases and a wood-burning fireplace with a carved marble fireplace mantle.

For more information, please visit: HomeAloneHome.ColdwellBanker.com.

Posted via email from juliewilliamson's posterous

April Housing Scorecard Shows Growing Evidence of Economic Progress #realestate

2011-05-10T10:58:00.001-07:00

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the April edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market. Officials caution that the latest housing figures underscore fragility in the housing market and highlight the importance of the Administration’s foreclosure-prevention programs, which continue to help tens of thousands of struggling homeowners each month and play a critical role in setting standards for the mortgage industry.

“The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market—despite growing evidence of progress in the broader economy,” says HUD Assistant Secretary Raphael Bostic. “The Administration has been consistently committed to helping American homeowners and borrowers who have been hit hard by the economic recession and housing crisis, and our efforts have helped millions to avoid foreclosure and gain a more stable footing. That said, we still have more work to do to reach the many households who still face trouble.”

“The numbers of homeowners both entering HAMP and converting from trial to permanent modifications each month are a powerful reminder of the role this program is playing in delivering much-needed assistance to families facing a housing market that is still very tough,” says Acting Assistant Secretary for Financial Stability Tim Massad. “And by providing modifications that are sustainable for homeowners over time, HAMP is setting standards for the industry that ultimately mean more options for more families to avoid foreclosure.”

The March Housing Scorecard features key data on the health of the housing market and the reach of the Administration’s foreclosure prevention programs, including:

• The Administration’s efforts have helped millions of families deal with the worst economic crisis since the Great Depression. More than 4.5 million modification arrangements were started between April 2009 and the end of March 2011—including more than 1.5 million trial modification starts through the Administration’s Home Affordable Modification Program (HAMP), more than 808,000 FHA loss mitigation and early delinquency interventions, and nearly 2.2 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the total number of agreements offered more than doubled the number of foreclosure completions for the same period (1.9 million).

• Tens of thousands of new homeowners continue to receive real payment relief from HAMP every month—and are able to keep up those arrangements over time. In March, servicers reported more than 36,000 trial HAMP modifications and more than 36,000 permanent modifications with a median payment reduction of 37 percent—or over $500 every month. Since the start of the program, more than 670,000 homeowners have received a permanent HAMP modification, saving approximately $5.9 billion. More than 1.5 million homeowners have started a trial modification. With more than 84 percent of homeowners in their permanent HAMP modification after one year, HAMP modifications continue to perform well over time and are proving more sustainable for homeowners than traditional industry modifications.

• Housing market remains fragile as data through March paint a mixed picture of recovery. Home prices remain weak under continued strain from foreclosures and distressed homes. However, mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak. As lenders continue to review internal procedures related to foreclosure processing, many foreclosure actions have been delayed. The decline in foreclosure processing is likely to be temporary as lenders eventually revise and resubmit paperwork in the coming months

Posted via email from juliewilliamson's posterous

Home Emergency Tips; What to Do Until Help Arrives #realestate

2011-05-09T14:05:00.001-07:00

Water Damage:
Do:
• Remove as much excess water as possible by mopping and blotting
• Wipe excess water from wood furniture after removal of lamps and table top items
• Remove and prop wet upholstery and pillow cushions for even drying
• Place aluminum foil or wood blocks between furniture legs and wet carpeting
• Turn air conditioning on for maximum drying in summer
• Remove Oriental rugs or other colored rugs from wet wall-to-wall carpeting
• Remove valuable paintings and art objects to a safe, dry place
• Open and place luggage in sunlight to dry, if possible
• Gather loose items, toys, etc. from floors

Don’t:
• Leave wet fabrics in place; dry as soon as possible. Hang furs and leather goods to dry separately at room temperature
• Leave books, magazines or other colored items on wet carpets or floors
• Use your household vacuum to remove water
• Use TVs or other household appliances while standing on wet carpets or floors–especially wet concrete

Fire Damage:
Do:
• Limit movement in the home to prevent soot particles from being embedded into upholstery and carpets
• Keep hands clean; soot on hands can further soil upholstery, walls and woodwork
• Blow, brush or vacuum loose soot particles from upholstery, drapes and carpets
• Place clean towels or old linens on rugs, upholstery and carpet traffic areas
• Clean and protect chrome on kitchen and bathroom faucets, trim and appliances with light coating of Vaseline or oil
• Wash house plants on both sides of leaves
• Change HVAC filter

Don’t:
• Attempt to wash any walls or painted surfaces without first contacting a professional
• Attempt to shampoo carpet or upholstered furniture without first consulting a professional
• Attempt to clean any electrical appliances that may have been close to the fire, heat or water without first consulting an authorized repair service
• Turn on ceiling fixtures if ceiling is wet—wiring may be wet or damaged

Vandalism Damage:
Do:
• Hose or wash egg damage from building exterior as soon as possible
• Blot freshly spilled food from carpets and fabrics with a dampened cloth or sponge; scrape and blot—don’t rub.
• Vacuum glass particles from carpets and upholstery
• Save containers, which reveal the composition of spilled inks, cosmetics and paints

Don’t:
• Attempt to remove ink, paint or cosmetic stains
• Operate damaged lamps or appliances
• Discard wood chips, broken pieces from furniture, porcelain or other art objects

Hurricane Damage:
Do:
• Stock your home with emergency supplies like non perishable food and water, prescription medications, and a first aid kit
• Take photographs and videos of all damages areas
• Make a list of damaged or lost items; include their purchase date and value with receipts
• Turn off the electricity if you see sparks or frayed wires until an electrician has inspected your system for safety
• Turn off the main water valve if pipes are damaged
• Check with local authorities before using any water; the water could be contaminated
• Prevent mold by removing wet contents immediately
• Keep a copy of your insurance policy handy
• Keep our 24 Hours Claims Department Phone Number ready, there will always be an adjuster available to answer all your questions and ready to file your insurance claim for full, fair, fast compensation

Don’t:
• Go near unstable structures as the building may collapse
• Enter home if you smell gas or see floodwaters remain around building
• Make any repairs before consulting your public adjuster

Posted via email from juliewilliamson's posterous

Simple Tips to Prevent House Fires #realestate #safety

2011-05-09T11:44:00.001-07:00

Every year home electrical problems cause more than 28,000 house fires and massive property damage. Electrical wiring is the root cause of many of these fires, of which countless could have been prevented. May is Electrical Safety Month. MXenergy, an independent energy provider, is encouraging everyone to review key electrical safety tips.

“Quite frankly, electrical safety is a key home safety component that is often overlooked,” says Marjorie Kass, MXenergy Managing Director. “Yet the truth is, it is an essential element of any home safety plan. Proper education, awareness and action can go a long way in preventing tragedy.”

Faulty or fixed wiring or improper use of electrical cords and other electrical items cause most home fires.

MXenergy Electrical Safety Tips

• Pay Attention: Flickering lights, buzzing noises, and faceplates that are warm to the touch are all signs that a circuit may be overloaded or wiring may be wearing thin. Each one of those signs is cause for immediate attention from a licensed professional electrician.

• Listen to Your Breaker: If you are continually tripping a switch and having to reset your breaker box, your house is trying to tell you something. There may be a fixture with faulty wiring or too high an electrical load on the breaker. Again, seek professional help.

• Review and Replace: Frayed electrical cords, wobbly ceiling fans, and loose faceplates are more than mere annoyances. You should routinely inspect your home and replace or repair items in need of attention.

• Safety First: Even the best preparation and newest equipment is not a guaranteed protection against fire. Working smoke detectors on all levels of your home is an absolute must. Make sure you have a working fire extinguisher and you know the proper way to use it.

“The good news is many of these fires are avoidable,” continues Kass. “In the case of electrical safety just a little awareness and preparation can make an enormous difference.”

The Electrical Safety Foundation International (ESFI) sponsors Electrical Safety Month each May. More information and safety tips, including a home safety calendar, can be found at www.esfi.org.

Posted via email from juliewilliamson's posterous

Gallup: Time Is Right to Buy #realestate #luxuryrealestate

2011-05-05T10:20:00.001-07:00

Consumer attitudes towards the housing markets are echoing views in the years immediately preceding the peak of the housing boom, according to a new national survey by the Gallup poll. Americans continue to see a buyer’s market in housing, according to an April 2011 Gallup poll. Sixty-nine percent of respondents say now is a good time to buy a house.

Historic Gallup data shows that many Americans also thought it was a good time to buy between 2003 and 2005, when housing prices were increasing and getting financing was relatively easy. Those attitudes began to change in 2006 as some homebuyers began to realize a housing bubble was taking shape in local markets across the country.

Men (74 percent) are about 16 percent more likely to see now as a good time to buy a home than women (64 percent). Those living in the West are the most likely to hold this view (75 percent), 17 percent more than those living in the South (64 percent). Americans making $75,000 or more a year (86 percent) are 18 percent more likely to see 2011 as a good time to buy a home than those making $30,000 – $75,000 (73 percent), and 72 percent more likely than those making less than $30,000 (50 percent).

Americans’ expectations for home prices in their local markets are slightly better now than they were in January. Currently, 30 percent of Americans say home prices will increase and 28 percent say they will decrease in the next year.

Posted via email from juliewilliamson's posterous

It’s Tax Grievance Season: Learn to Lower Your Property Taxes

2011-05-03T14:19:00.001-07:00

Towns throughout the Hudson Valley, N.Y. have just released their official tax assessment rolls, and Better Homes and Gardens (BHG) Rand Realty has published a simple, yet comprehensive guide to educate homeowners on the process of challenging their property tax assessments.

“Although we support our local municipalities, we also believe in tax fairness and think that too many homeowners are over-assessed and entitled to a reduction in their property taxes,” says Joseph Rand, managing partner and general counsel of BHG Rand. A report recently released shows that Westchester is the most taxed county in the country, and other Hudson Valley counties are within the top 25.

The Guide to Grieving Your Property Taxes in Westchester and the Hudson Valley is the first resource of its kind available in the region. It was developed by BHG Rand Realty to help clients shouldering an unfair financial burden due to over-estimated assessments. A cornerstone belief at BHG Rand Realty is that service to the client does not end with the closing on a home, and this guide continues their public education and information outreach which includes seminars, Quarterly Market Reports and Seasonal Event Guides.

“This is by far the most comprehensive explanation of the grievance process ever made public, with information the towns might not even want homeowners to know,” sys Rand. “Having gone through the grievance process myself I know how complicated and difficult it is, and thought the average area homeowner needed a simple but comprehensive guide to explain the process.”

As the guide explains, challenging an assessment and grieving property taxes is complicated but manageable, and BHG Rand Realty will further assist in the process by providing sales comparables and attorney referrals.

“We’re also looking to help homeowners connect with a qualified, experienced attorney who will only collect a fee if the grievance is successful,” Rand continues.

Posted via email from juliewilliamson's posterous

Remodeling Market Index Reaches Highest Level in Four Years #realestate

2011-05-02T12:45:00.001-07:00

According to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), the remodeling market is heading into recovery with an increase to 46.5 in the first quarter of 2011 from 41.5 in the fourth quarter of 2010. This marks the highest level for the RMI since the fourth quarter of 2006. An RMI below 50, however, indicates that still more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.

The overall RMI combines ratings of current remodeling activity with indicators of future activity like calls for bids. Current market conditions for the first quarter of 2011 rose to 46.1 from 43.3 in the previous quarter. Future market indicators climbed to 46.8 from 39.7 in the previous quarter.

“Remodelers report a jump in activity so far this year and have been receiving more calls for work and appointments,” says NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “However, many home owners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans.”

Regional break downs for current remodeling market conditions showed growth in all but one area: Northeast 46.1 (from 38.8 in the fourth quarter), South 46.1 (from 45.8), and West 46.1 (from 39.7). Only the Midwest experienced a decline to 47.1 (from 54.3).

All current remodeling market indicators increased: major additions to 50.3 (from 48.6 in the fourth quarter), minor additions to 48.0 (from 43.9), and maintenance and repair to 39.5 (from 37.0). Future market indicators also improved across the board: calls for bids rose to 53.1 (from 47.2), appointments for proposals to 52.4 (from 43.1), backlog of remodeling jobs to 49.7 (from 42.6), and amount of work committed for the next three months to 32.1 (from 25.9).

In an additional special question remodelers reported the top reasons prospective customers are holding back from remodeling their homes:

Customers think it is hard to get financing (90 percent of remodeler respondents); Customers have lost equity in their homes (81 percent); Customers are uncertain about their future economic situation (74 percent); Reluctance to invest in home when not sure home will hold its value (67 percent); Negative media stories making customers more cautious (62 percent) and Inaccurate appraisals are making financing more difficult (54 percent).

“Home remodeling continues to slowly increase and continued growth through the year is expected.” says NAHB Chief Economist David Crowe. “The fact that some indicators are breaking 50 means remodelers are seeing improving activity in their markets. While credit scarcity and economic uncertainty continue to weigh down remodeling, signs of increasing consumer interest are promising.”

Posted via email from juliewilliamson's posterous

Don’t become a crime victim when you show your home #realestate

2011-04-29T11:52:00.001-07:00

Safety should always be a top concern for both real estate agents and home sellers. While holding an open house and allowing potential home buyers to tour the property is an effective means of selling a home, home sellers should be aware of the risks.

MAKING SENSE OF THE STORY

While most criminals will seek small items and anything they can fit into their pockets, sometimes these “buyers” are actually scoping the home for a future burglary.
According to a safety expert who has worked with the NATIONAL ASSOCIATION OF REALTORS® and other groups, first and foremost, people should trust their instincts, so if someone or something is making one uncomfortable, be extra alert and extremely careful.
If a potential buyer or unknown agent arrives at the house unexpectedly, the homeowner should tell him to call their agent to schedule an appointment.
Before allowing anyone to enter the house, all lights should be turned on and all blinds, shades, and curtains opened. Homes are safer for showing when someone outside can see inside.
In advance of an open house, homeowners should remove all valuables, including jewelry, artwork, and electronic equipment.
Additionally, money, mail, bank statements, credit cards and keys should never be kept lying around, or even in a drawer with easy access.
Prescription drugs should be kept in locked cabinets, to prevent anyone from stealing them or using the information on the label.
Professional burglars often linger in rooms, looking for items they can dispose of quickly. They also search for ways to get in and out, scouting possible escape routes and checking for security devices. Couples up to no good often split up so one can check out the house and its belongings, while the other keeps the agent and/or seller occupied.

Posted via email from juliewilliamson's posterous

Pending Home Sales Rise Again

2011-04-29T11:49:00.001-07:00

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, says home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he notes. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

The PHSI in the Northeast fell 3.2 percent to 63.4 in March and is 18.4 percent below March 2010. In the Midwest the index rose 3.0 percent in March to 83.5 but is 16.6 percent below where it was a year ago. Pending home sales in the South jumped 10.3 percent to an index of 110.2, but are 10.5 percent below March 2010. In the West, the index increased 3.1 percent to 103.7 but is 4.1 percent below a year ago.

“Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges,” Yun says.

“The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan default rates among home buyers over the past two years,” Yun adds.

Posted via email from juliewilliamson's posterous

Spending Smart: Prune Your Landscaping Costs #realestate

2011-04-28T14:08:00.001-07:00

As weather warms in most parts of the country, many homeowners will incur the expense and hassle of hiring professionals to help beautify their yard through grass mowing, landscape design or tree trimming and removal. These specialty services can be quite costly; that’s why it’s important to hire the right landscaper at the right price.

“The condition of your lawn has a big effect on the look and value of your home, whether you have a complicated landscaping plan with water features and/or an expanse of grass and flowers,” says Angie Hicks, founder of service-ratings website Angie’s List. “If you’re hiring someone to help maintain your lawn, match their qualifications, training and local reputation to your property needs.”

Here are the steps you can take to help get the best value from your landscaping pros.

Schedule Events: Not every homeowner is an expert on lawn, yard and tree care, so it helps to get several pros out to your property to advise you on what needs to be done and what the options are. It’s a free education about your property.

“The most important advice is to talk with several firms,” said Robert Krughoff, president of Consumers’ Checkbook, which offers ratings of local service companies to subscribers in seven U.S. markets. “Use them as your consultants.”

To get names of companies for your initial visit, you can use the usual method of asking for referrals from neighbors and local friends and family. You can also go online to service-review websites. Good paid sites include Angie’s List and Consumers’ Checkbook at checkbook.org. You might get reviews and comments on some companies from such free sites as Yelp.com, Kudzu.com or even the firm’s own Facebook fan page.

You can cross-check names of any finalists with the Better Business Bureau, bbb.org; pay attention to the number of complaints lodged against the companies.

If all you need is simple mowing, raking or weeding, you might not need a professional at all. A hard-working, entrepreneurial teenager up the street might yield the best deal, Krughoff suggests.

Get Price Bids: Once you know what you want, request apples-to-apples estimates from at least three companies.

“You’ll find big price differences on these things,” Krughoff says.

Checkbook used one major metropolitan area as an example and found that the same tree-removal job could cost from $1,935 to $6,300, depending on the company. Prices on a smaller tree job ranged from $375 to $1,100. For lawn care, Consumers’ Checkbook found one case in which the same promise for the lawn brought prices ranging from $229 to $805.

But pricey firms do a better job, right?

Not really, Krughoff says. His publication found virtually no correlation between price and quality in lawn care and tree services, meaning you don’t necessarily get what you pay for. But that’s not true in all cases. Pricier garden nurseries were found to generally offer a higher quality, Consumers’ Checkbook found.

Get it in Writing: Especially for bigger jobs, be very clear—in writing—about what a firm is expected to do. In the tree-removal example, will they haul away debris? Will they cut up wood into firewood length and leave it? Will they remove a stump? If so, how? By cutting it to grade level or grinding it?

“A lot of times, people just don’t get specific,” Krughoff comments.

For lawn care, do you expect a green lawn quickly or can you be patient for a care program that will strengthen root systems and be healthier in the long run?

If you’re hiring a company to install plants, note the replacement policy. Angie’s List suggests not hiring a company if it won’t promise to replace and replant any plants that die despite proper care.

Get Credentials: Make sure the company has liability insurance and workers’ compensation insurance. Some yard work, especially in high trees, is dangerous to people and property. And for some jobs, you might look for certifications and membership in professional organizations—such as the Association of Professional Landscape Designers—Angie’s List suggests. For tree service, consider companies with a professional arborist on staff.

Be Wary of Add-ons: If a landscaper or lawn service recommends various fertilizers, sprayings and treatments, you want to hear a compelling case on why it’s necessary and evidence that it will make a difference, notes Krughoff.

Paying: Ideally, you will pay nothing until the job is done, which gives you the most leverage to ensure it’s done right. But some companies will require a deposit. Avoid paying the entire amount upfront, and use a credit card if you can. That allows you to dispute the charge with the credit card company if the service was incomplete or not done right.

National Companies: If you’re talking about weed-and-feed services, you have a number of options for national companies, such as Lawn Doctor, Scotts and TruGreen. In a 1008 report Consumer Reports notes that service varied, even within a company. Sometimes technicians were incorrect about their assessments of lawns, as judged by the experts Consumer Reports used. For example, some said the lawns had crabgrass, thatch buildup or insect problems, when in actuality they did not. However, the report did not evaluate the quality of services performed by these companies.

Consumers’ Checkbook finds local lawn care firms tend to have higher customer-satisfaction ratings than chains, and prices can be comparable, says Krughoff.

Posted via email from juliewilliamson's posterous

Safety First! May Is Building Safety Month #realestate #SafetyMonth

2011-04-27T11:57:00.001-07:00

When you turn on a light switch, do you ever wonder if you’ll be electrocuted? Do you constantly worry about your home’s roof caving in? Or believe your home’s water pipes might be frozen when you turn on the faucet?

Most of us never think twice about these things. That’s because we are confident in the work done every day by the 50,000 members of the International Code Council, the people who safeguard our homes and businesses by creating and enforcing strong building safety codes at the city, county and state levels.

This May, the International Code Council Foundation (ICCF) will celebrate its 31st Building Safety Month, An International Celebration of Safe and Sensible Structures. Throughout the month, ICC members will educate the public and builders about building safety and sustainability issues as well as sharing ideas for making structures more energy efficient and durable.

Building Safety Month kicked off in 1980 in response to a series of tragedies that could have been prevented through the existence and enforcement of safety codes.

“Building safety codes are often taken for granted, but they are incredibly necessary, and the foundation upon which healthy, secure homes and buildings are built,” says Richard P. Weiland, ICCF Board of Governors and CEO of the Code Council. “Building Safety Month is our way of introducing ourselves to the public and sharing what we know so they can live healthier, safer lives in secure and sustainable homes, schools and buildings.”

Building Safety Month receives support from important industry groups such as BASF – The Chemical Company, the Federal Alliance for Safe Homes, (FLASH), the National Center for Healthy Housing, (NCHH), The Propane Education & Research Council, (PERC) and BuildingReports, among others.

Celebrations across the country will come in many forms, from free deck inspections, school assemblies and official proclamations with governors to film festivals. Whether the celebrations are formal, ceremonial or just plain fun, the message is that adoption and enforcement of strong buildings codes can make the difference between life and death.

Week One: May 1 – 7 Energy and Green Building

The first week of Building Safety Month will be devoted to green and energy efficiency. Consumers can learn low-cost ways to make existing homes more efficient, long-term strategies for long-term savings, and tips on building green in new construction.

“As a leading provider of energy-saving, durable building materials, our vision is that all families will live in affordable, energy-efficient, safe homes that reduce environmental impacts. This mission and our company’s offerings closely mirror the themes for Building Safety Month,” says Michael Sievers, Business Manager, BASF, the 2011 Building Safety Month Presenting Sponsor.

“Saving energy and protecting the environment are good reasons to build ‘green,’ and new research shows that building green can also improve health,” says Rebecca Morley, Executive Director of the National Center for Healthy Housing, a national non-profit committed to creating safe and healthy homes for children through practical and proven steps. “Modern, enforced building codes can help to maximize the health benefits of green building and to avoid potential unintended consequences of creating tighter buildings,” adds Morley.

Week Two: May 8 – 14 Disaster Safety and Mitigation

The recent disaster in Japan has shone a spotlight on the critical importance of adhering to stringent building codes. Without a steadfast devotion to building earthquake-resistant structures, the devastation in Japan would have been significantly worse.

Major earthquake fault lines, tornado zones, flood-prone coastal areas, dry wildfire targets, and even volcanos are potential hazards within highly populated areas of the United States. During week two of Building Safety Month, consumers will learn how to prepare their homes to be safer from these and other natural disasters.

Education partner the Federal Alliance for Safe Homes (FLASH), a national non-profit organization, is dedicated to educating consumers on how to prepare homes to withstand an array of national disasters such as wildfires, floods, earthquakes, high winds, hurricanes and tornadoes.

“FLASH is thrilled to support ICCF’s Building Safety Month,” says FLASH President and CEO Leslie C. Henderson. “Through our work, we see first-hand the remarkable difference that codes and standards can make in avoiding the devastating effects of natural disasters. The wonderful work of the ICCF and Building Safety Month will reach many people across the country.”

Week Three: May 15 – 21, Fire Safety and Awareness

Despite aggressive education efforts by many organizations, many residential fire-related deaths remain preventable. The third week of Building Safety Month focuses on the critical issue of Fire Safety. In addition to encouraging safe use of smoke detectors, candles and home fireplaces, consumers will learn important tips about safely using gas and electronic appliances.

Week Four: May 22 – 31, Backyard Safety

As Memorial Day approaches and officially kicks off the barbeque and outdoor living season in America, it’s a great time to remind homeowners of the dos and don’ts of installing, operating and maintaining their outdoor appliances.

“Outdoor living spaces are increasingly popular, whether homeowners have a deck with a grill—or something more elaborate with heating, lighting and a pool or spa,” says Stuart Flatow, Vice President Safety & Training of the Propane Education and Research Council (PERC). “By supporting the ICCF’s Backyard Safety Week, we at PERC want to help homeowners enjoy their backyards—while keeping that space safe.”

First observed in 1980 as Building Safety Week, Building Safety Month is a program of the International Code Council Foundation. The International Code Council Foundation is a 501(c)3 nonprofit organization with the mission to promote public awareness of ideas‚ methods and technologies that encourage the construction of safe, durable and sustainable buildings and homes, reducing the devastating effects of building damages due to natural disasters and other tragedies.

Posted via email from juliewilliamson's posterous

Dedicated to Going Green? Follow These 10 Easy Steps

2011-04-26T10:43:00.001-07:00

Given the pressing environmental challenges facing the world, one day just doesn’t seem like enough to celebrate the earth and make long-term environmental changes. Why not use this month as inspiration and make a commitment to do environmentally friendly activities throughout the year?

Here are just 10 ideas, along with some online resources, that you could try.

Green your office–Establish a green team with colleagues to address ways to reduce your office’s impact. A recycling program is obvious. Other strategies could entail ridding the kitchen of disposable goods, replacing equipment that hogs energy, improving lighting and HVAC systems, installing a bike rack, and replacing grass around the office with a vegetable garden or native plants. For more information, visit www.greenyour.com/office.>

Shop locally–Swear off buying stuff from faraway places, even if it saves some pennies. Just consider the impact that packaging and shipping your goods has on the environment. Instead, shop locally. Walking to shops saves energy and you also help neighborhood businesses thrive.

Make mini moves–Build new habits that will have an ongoing impact. Those could include the basics, such as switching to CFL bulbs, fixing water leaks (www.epa.gov/WaterSense), or cutting the phantom power at home.

Do an energy audit–Invest in an energy audit to figure out exactly how your house wastes energy. Even if you’re on a tight budget, commit yourself to making some of the changes the auditor suggests, and start setting aside money for costlier upgrades. Find an auditor at RESNET, www.resnet.us/trade/find-raters-auditors.

Go car-free–Reorganize your schedule so you can take public transit or walk to work and errands at least a day a week.

Become a locavore–Rely on local providers for your weekly produce by shopping at a farmers’ market or joining a CSA (Community Supported Agriculture) program. And when it’s time for gift giving, consider buying CSA memberships for friends and clients. www.localharvest.org

Share your knowledge–Offer to make a presentation to colleagues at a weekly sales meeting about green changes they can make. Or pass the torch to the next generation by organizing an environmental event at a school or with a Girl Scout troop.

Raise your profile–Whether it’s a community garden, a rails-to-trails group, or a transit improvement committee, get involved in your community. Your participation raises your profile and connects you with new prospective clients, and your efforts have a direct impact on improving your community.

Learn something new–Still fuzzy on the details of programs like LEED or Energy Star? Wondering about new rebates and incentives? Spend two hours each week getting up to speed on industry programs and trends. One resource for such education is the Green REsource Council’s Webinars, one of the many great benefits available to NAR Green Designees. All the Webinars are archived at http://greenresourcecouncil.org/webinars.cfm for deisngees, and they include sessions on Energy Star, EPA’s WaterSense, USGBC’s REGREEN , LEED for Homes, and NAHB’s Green Building Program.

Posted via email from juliewilliamson's posterous

Atlas Van Lines’ Annual Corporate Relocation Survey Reflects Growing Economic Optimism

2011-04-25T13:10:00.001-07:00

After multiple years characterized by doubt and pessimism, relocation managers across the U.S. are expressing optimism that the worst of the recession is now in the rearview mirror. Responding to Atlas Van Lines’ 44th annual Corporate Relocation Survey, 72% of the relocation managers polled say they believe their respective companies will fare better in 2011. The optimism rate among large firms surveyed (more than 5,000 workers) jumps to 80%.

“Our relocation research has served as a solid barometer of where the American economy is headed,” said Jack Griffin, president and COO of Atlas World Group, the parent company of Atlas Van Lines. “The good news is that our survey respondents are focusing on growing their businesses and believe there will be abundant opportunity for expansion and increased revenues in 2011. This is encouraging for Atlas Van Lines and our relocation agents.”

Additional encouraging signs include:

-Fifty-four percent of executives surveyed believe the U.S. economy will improve in 2011—the highest rate of such optimism recorded since 2006.

-Thirty percent of companies plan to relocate workers this year—the highest percentage in six years.

-Eighty-seven percent of companies will spend as much or more on relocation in 2011 as in 2010—the most since 2007.

-The Midwest is now the top destination of transfers (37%) followed by the Northeast (31%), the South (28%) and West (20%).

For more information, visit www.atlasworldgroup.com and www.atlasvanlines.com.

Posted via email from juliewilliamson's posterous

Existing-Home Sales Rise in March 2011

2011-04-21T10:44:00.001-07:00

Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84% in March, down from 4.95% in February; the rate was 4.97% in March 2010.

Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.

“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.

A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.

All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.

The national median existing-home price for all housing types was $159,600 in March, down 5.9% from March 2010. Distressed homes—typically sold at discounts in the vicinity of 20%—accounted for a 40% marketshare in March, up from 39% in February and 35% in March 2010.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”

Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.

Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.

Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.

Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March, but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.

Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million, but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.

In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March, but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.

Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.

Posted via email from juliewilliamson's posterous

Appraisal Institute Issues Earth Day Call to Real Estate Community for Collaboration

2011-04-20T11:28:00.001-07:00

In celebration of Earth Day (April 22), the Appraisal Institute called on the world’s real estate community to join in helping ensure reliable valuations for sustainable “green” buildings. The Appraisal Institute is one of the nation’s largest professional associations of real estate appraisers and has members in 60 countries.

“The Appraisal Institute is the world’s leading authority on green valuation, but producing reliable property valuations requires a collaborative effort,” said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. “Data is vital for appraisers to do their jobs, and we often need cooperation from others involved in real estate transactions to get it. Earth Day is the perfect reminder for us all to work together. When we do, everyone will benefit, including homeowners and buyers.”

Earth Day will be celebrated April 22. Growing out of the first celebration in 1970, Earth Day Network works with more than 22,000 partners in 192 countries to broaden, diversify and mobilize the environmental movement. More than one billion people now participate in Earth Day activities each year, making it one of the largest civic observances in the world.

Magdziarz said that appraisers need to have all information from underwriters, builders, real estate agents and home inspectors related to energy efficient features in order to recognize them and to make appropriate, market-based adjustments. Appraisers frequently ask for ratings information, blueprints and specifications of properties’ conservation features but are not provided the information—either because those involved in their construction, sale or financing mistakenly believe they are not applicable to the appraisal process, or because the data are not generally available.

Magdziarz acknowledged that misconceptions about green valuation exist among many non-appraisers, including a failure to realize that cost does not always equal value.

“It’s not yet clear how well the market recognizes the actual or perceived benefits of a green building,” Magdziarz said. “Do potential buyers view green features as enhancements to a property’s market value or as over-enhancements? The answer likely depends on the particular property and the local real estate market.”

Magdziarz pointed out that that appraisers don’t determine the market; they reflect what’s happening in the market.

“If appraisers have access to the data they need, they can produce more reliable opinions of value,” he said. “Then builders and consumers would begin to see the return on investment, and the demand for new green construction could increase. This will drive the market toward a more sustainable building process, which holds immeasurable environmental benefits for all involved. This Earth Day, that’s worth celebrating.”

The Appraisal Institute long has been a thought leader in green valuation:

-In January, the Appraisal Institute launched its Valuation of Sustainable Buildings Professional Development Program of educational courses.

-The Appraisal Institute was among the sponsors of the Vancouver Valuation Accord, an agreement to address the interrelationship of sustainability and valuation that was signed March 2007 in Vancouver, British Columbia, Canada.

-The Appraisal Institute contributed to the Green MLS Tool Kit, issued in April 2010. The tool kit was created to help REALTORS® add a green initiative to their local multiple listing service.

-Published by the Appraisal Institute in June 2010, “An Introduction to Green Homes” provides an overview of programs, organizations and products that relate to environmentally responsible building and remodeling.

-Appraisal Institute leaders last year spoke on green valuation topics at events sponsored by organizations such as the United Nations Economic Commission for Europe and the U.S. Green Building Council.

-The Appraisal Institute’s quarterly publications, The Appraisal Journal and Valuation magazine, regularly include cutting-edge articles on green valuation.

For more information, visit www.appraisalinstitute.org.

Posted via email from juliewilliamson's posterous

Staging Enables Sellers to Portray a Lifestyle That Prospective Buyers Can Relate and Aspire To

2011-04-19T11:11:00.001-07:00

Craig and Amy Smith always felt quite confident, even cocky in their abilities to tastefully design the spacious interior of their steel-and-concrete loft in downtown Denver. That was until they decided to sell it and a consultant hired to help them “stage” their home told them to neutralize a dramatic accent wall, put away family photos and place most of their furniture and artwork in storage.

“The hardest part was not taking it personally,” said Craig Smith, who as chief executive of ServiceMagic.com, an online business that connects homeowners with prescreened home-service professionals, decided to take his own advice. “When you think you’re the best designers in the world and you have someone saying your taste in things might not be appreciated by others—that could be an ego hit.”

In turn, that is the hardest part of the job for those offering the advice: Breaking it to sellers that their taste in decor and the lovingly acquired pieces and, well, clutter in their homes could be a huge turnoff to a prospective home buyer.

Their job is to neuter the home before it goes on the market by getting rid of the chaos, opening up corridors, living spaces and walls, lightening bold colors and exposing hidden pieces of charm and architecture.

A New York city home that might heavily reflect, say, an equestrian family’s passions with plaid wallpaper, dark paintings and horse bookends, could repel a single woman’s love for theater, opera, art and bright, flowing rooms.

“What’s fine for living is not always fine for selling,” said Donna Dazzo, president of Designed To Appeal, a home-staging company that serves New York and the Hamptons. “You want to portray a lifestyle that people can relate to and aspire to,” she said. “You have to have them fall in love as soon as they walk in the door.”

Staging got its start a decade ago when the housing market was on fire and every seller wanted to up the value of their home both emotionally and physically by making it more attractive and purchase-worthy than the house next door.

But as the market has switched directions and the numbers of able-and-willing buyers has dropped, home sellers are again turning to staging consultants to give their properties that extra oomph to impress and compete in the buyer’s market. It’s helped too that home-oriented lifestyle television channels show the before-and-after process of how a relatively inexpensive staging can turn the tables for homeowners itching to sell.

“The basic reality is that people buy on emotion,” said Gina Ferraro, president of Cross Home Concepts in Chicago. “People always want to imagine having a grander lifestyle. We like to think that we’re going to live in a beautiful, always-clean home and that we’re going to entertain a lot.

“The reality is that we don’t, but the whole point of the staging is to work on the psychology of the client when they come in the door and have them be able to see themselves in that place,” she said.

You may need an expert to come in and offer direction, but you don’t need one to do the work if you’re handy around the house.

Prices vary from city to city and home to home. An oversized estate in the Hamptons could cost upwards of $10,000, $20,000, even $30,000 to stage properly, assuming it’s not run down. The consultation on the Smith’s Denver loft was about $200.

The advice, however, is straightforward no matter what the size or value of the home: Declutter, repaint in neutral colors, update when necessary, open the space by keeping furniture and trinkets to a minimum, take out family pictures and treasures, and by all means, make sure it’s spotlessly clean.

“If you’re selling a two- or three-bedroom apartment in New York and you put $4,000 to $5,000 into painting and redoing the floors, you can get $20,000 back on that,” said Richard Shogan, founder of Spotless Services, a New York-based firm that cleans, paints and prepares homes for sale. “It’s not like your investment is dollar for dollar—it’s definitely more,” he said.

For the Smiths, the return on their investment is not only a financial gain but a lifestyle change. “We carried the ‘less is more’ theme over to the new house and said, ‘Let’s not overcrowd our rooms,” Craig Smith said. “We had to sever those ties with that college couch.”

Here’s a list of some of the basics—with a few secrets:

Get rid of stuff. It can’t be said enough how important it is to declutter your home. Most people accumulate things like furniture, pictures, vases, vacation mementos and other knickknacks and then find places for them in the home, rather than taking something out. Most people don’t even really notice how much clutter they have because they have learned to live with it. But really, is there any better time to purge than when you move? Consider it a head start on packing.

Depersonalize. Put away family photos, education degrees, children’s pictures, trophies, awards, collections. “Don’t mistake depersonalizing with removing personality,” Ferraro said. “You still want the place to have style and personality. You have to know your environment and what people will be looking for.” If you’re selling a high-rise in a large metropolitan city, buyers are going to be looking for clean, streamlined lines but not overly contemporary. On the flipside, if you’re selling in an older, well-heeled neighborhood, buyers will be expecting to see traditional furniture and artwork.

Clean, clean, clean. If the three most important points to selling a home are location, location, location, the next three are sparkling, glittering clean. “People don’t want to walk into a dirty home that’s for sale in the same way that you don’t want to check into a hotel and find a bathroom that’s dirty with someone else’s shampoo in it,” Dazzo said.

Update old and deteriorating spaces. You might not have to totally redo a 1980s kitchen, but you will want to put new hardware on cabinet doors, replace countertops and appliances, and fix what’s broken, peeling or worn out. The same is true in bathrooms where tiles might have mildew or light fixtures and cabinetry are outdated. Wallpaper is making a comeback in design books, but it’s not likely the stuff you put up three decades ago is still in style. “Buyers don’t want projects,” Dazzo said. Don’t forget to replace burnt-out light bulbs or missing knobs and pulls.

Define spaces. Buyers don’t like to guess what rooms are used for what. Dining rooms need ceiling light fixtures to define them; sitting rooms are marked by comfy chairs and reading lamps; family rooms are set off with couches and, of course, a TV.

Fill empty rooms. A vacant home is nothing more than an empty shell and buyers have very little imagination. “People aren’t good at visualizing or seeing beyond what’s in front of them,” Ferraro said. An empty room either looks too small or too overwhelmingly big for a buyer’s furniture. Create the space for them with rental furniture.

Lighten up spaces. The most obvious way is by getting rid of heavy curtains, rugs and furniture, and painting the walls white or a lighter color. But here are some other tricks: add new light fixtures; clean windows, remove screens and take treatments down to let in natural light; never hide good views or scenery behind window treatments; put cream-colored placemats on dark-wood dining tables; use fresh, white towels in bathrooms (helps emphasize cleanliness with spa-like look); pull up carpets to expose hardwood floors.

Open up indoor walkways. Even if the buyer is single, he or she is likely to bring an entourage with them when their inspecting the home, so be sure the hallways and walkways are big enough for three, even four people to be in at one time. “It’s OK to pull your furniture close together in the living room,” Ferraro said. “People aren’t going to walk into the seating area but will view it from the walkway.”

Clean out closets and leave them one-third empty. Old houses can be problematic because of their limited closet space but you can trick the eye by leaving plenty of space empty. Same’s true for bigger homes and closets by keeping shoes, and hanging and folded clothes neat, tidy, and yes, even color coordinated. Buyers will inspect all of your closets to see if there’s enough room for all their things. If the closet looks overloaded with your stuff, then certainly they won’t be able to fit all their stuff in it.

Curb and hallway appeal really count. The buyers’ first impressions are set as they approach the door. That’s as true for apartments and condominiums as it is for homes and townhouses. If you’re on the third floor of a walk-up, you must be sure that the hallway walls are clean, the moldings in place and the carpet not threadbare, which means you might have to address such things with a homeowner’s association long before you put the house on the market.

Be model-ready. Rooms posed well for good photo shoots are becoming a must in home-selling because buyers get a first peek at your home on the Internet. “The time that people actually have to spend physically looking at properties is very limited,” Ferraro said. “You have to get them at ‘Hello.’”

Posted via email from juliewilliamson's posterous

How to Complete Home Renovations on a Budget #realestate

2011-04-18T10:43:00.001-07:00

As the interest in home renovations continues to grow, homeowners are constantly looking for ways to get the job done without depleting their bank account. With numerous steps and details involved in the process, it is easy for homeowners to become overwhelmed and spend more money than is truly necessary.

The following tips from the April 2011 Issue of HOLMES: The Magazine To Make It Right provides useful information that will keep homeowners from going over budget as they take on renovation projects this spring.

1. Work in the off-season. Some jobs like pouring concrete and applying stucco, are best done in good weather, but if your job doesn’t require it, postpone it until the off-season to save on labor costs.

2. Avoid structural changes. Moving walls and adding foundations also raise the bill. If you must have more space, steal it instead of adding on; grab it from an adjoining closet or room, or even the hollow between studs.

3. Work with what you’ve got. Unless you’re dealing with structural issues or water damage, it’s likely that not everything needs to be replaced. If you’ve got a good set of cabinets, why trash the boxes when just replacing the cabinet doors will do?

4. Leave appliances, fixtures and outlets in the same locations. Running new lines drives up costs. Only when you’ve planned for such changes is it the right time to go to the trouble of rewiring and plumbing so that a range can sit where the fridge once stood.

5. Value-engineer. Your architect and contractor are trained to know all types of materials. Ask them to make recommendations for thrifty alternatives.

6. Buy all appliances or fixtures at one time and on sale, if you have a place to store them. Purchasing items in bulk can often garner you a discount from the retailer.

7. Stick with normal colors. By that we mean choose standard color wheel options or neutrals, which are manufactured in the greatest numbers, and the efficiency is passed on in the price.

8. Opt for factory finishing. Cabinets, floors and even entire houses are now available factory finished, allowing for faster installation.

9. Make decisions based on quality, not just price. It’s still cheaper to have the same item over a longer period than to replace it a few years later—and pay for labor again, too.

10. Plan for energy efficiency. This can be as simple as buying Energy Star appliances that draw less energy over their operating lifetime, or installing a Solatube that uses reflective materials to capture and amplify natural light, negating the need for an electric light in a windowless room. Investigate these options before you complete a contract.

11. Prioritize and don’t budge. Once you have your list, refine it by dividing it between what you want and what you need. Ask yourself again why you are doing this project. Do you crave a more efficient space? An attractive and up-to-date room? Are you doing it for yourself or for resale? If the latter is the case, consult with your designer and a REALTOR® to see where your money will count the most.

12. Go with the standard model whenever possible. There are low-cost alternatives to just about everything, and you don’t have to compromise quality. This means weighing standard appliances versus commercial grade, stock versus custom cabinetry. Labor-intensive tile and woodwork can dramatically bump up cost. Talk to your builder about how to achieve a custom look for less. “Spend money on your priority pieces,” says Melissa Paulson, owner of Brillo Home Improvement in Milwaukee, “and cute back in areas that are not as important.”

13. Rule out thoughtless change orders. Nothing busts a budget faster than changing a floor plan or materials after work is underway. The time you invest in planning now will pay off as work gets underway. If you do run into any changes, minimize them. At this point, it will not only cost you money, it could also temporarily disband your construction team while you wait for new materials to arrive. And don’t forget to request a copy of the change order from your contractor, detailing the new timeline and payment due date.

14. Use an architect, your paid advocate in directing the contractor and subs. And when you can’t be on-site to stop waste and overspending or curb unauthorized changes, he or she can. The peace of mind is worth the money.

15. Have the architect itemize everything. Sounds tedious, but that’s the thoroughness you are paying for. You’ll want to see a detailed work scope document with sketches outlining the following: demolition, construction, plumbing, electrical, carpentry, tile and stone work and finished. “Itemize absolutely everything,” says Collette Whitney of Whitney Interiors in New York City. “This will give you an accurate basis from which contractors can bid, and from which you can compare bids.” That includes specifications, which list every material thing going into the project, right down to the doorknobs. Don’t forget to ask for a floor plan and elevations. “People tend to hear only 65-70 percent of any conversation,” says Rory McCreesh, owner of Duce Construction Corp. in New York City. “You want to be sure you and your contractor completely understand the finished project. Detailed, comprehensive drawings give your contractor the tools to understand exactly what he needs to build for you.” These drawings become the basis of your contract and the construction documents.

16. Seek multiple bids. Once you have the architect, pursue the best possible bids for the job. Have more than three licensed and insured contractors provide a detailed bid, including labor and materials, so you can really compare and analyze each. “When interviewing, you might want to ask the contractors about their worst experience and how they handled it,” says Jason Yowell, owner of Metropolitan Design and Construction, Inc. in Atlanta. “That’ll give you insight as to how they handle adversity.”

17. Itemize within the contract. Once you’ve picked your general contractor, he’ll create a contract that includes a progress payment schedule. This is based on certain milestones of completed work, such as cabinet installation. It tells you how much money you have to pay and when, and what should happen when. Plus, realistically, snags do come up, no matter how well you organize and plan. Make sure the contractor includes at least a 10% cushion for the unexpected. Of course, review the contract in person with your architect and contractor, item by item, to make sure all are in agreement before singing.

18. Memorize the change order policy. Then try your hardest to avoid the need for any. You don’t want them. But even we acknowledge they sometimes happen for legitimate reasons. In case you must make a change, make sure in advance that the contractor has a policy whereby he advises you of the cost and writes a change order immediately, which you then sign. Be informed of the procedure. Anything out of step with the contract at this point puts the project at risk.

19. Ask for pricing. You thought you did this when you went over specifications, right? But when you build anything, you have a minimum of 16 categories of pricing. “There’s masonry work, millwork, cabinetry, framing, drywall, doors, windows, plaster, stone and tile, electrical audio and video,” says Steve LeBlanc, president of Tranquility Homes in Nova Scotia. “The more information the contractor gives you in terms of what something costs—and individual breakdown, item by item—the more likely you are to stay on budget.”

20. You can benefit by purchasing materials through a professional. Architects and contractors have relationships with suppliers who offer purchasing efficiencies that save time. A big upside in using this service is that whoever orders the products also assumes responsibility if something goes wrong or is damaged or missing—not you. Any upcharge in materials takes into account the contractor’s time, responsibility and experience; it’s worth it.

21. Have all materials on-site before they’re required. It’s called the “preconstruction period” when everything gets ordered. This way no time is wasted—on your dime—while workers wait or miss a day because the materials they’re working with have not arrived. The architect or contractor’s project manager should be designated to monitor delivery times.

22. Hold pre-construction meetings. The people on your construction teams need to thoroughly understand the job prior to starting. Your contractor can see to this, possibly with a project or field manager, at this special meeting. You as the client won’t attend; talks will be mostly technical. Prior to demolition, though, you should meet the crew. “Get together with your contractor’s construction team to go over all aspects of the job, from introductions to phone numbers to a brief recap of the whole job,” says Tom Sertich, president of Kirk Development Co. in Phoenix. “You, the client, may have further questions, such as scheduling, and they can all be addressed in person then by the team on-site.”

23. Check materials as they arrive. Sounds obvious, but you must see everything out of the boxes to ensure things arrive undamaged and intact. Your contractor should review all materials as they arrive so the subcontractors aren’t waiting for an indispensable item. This helps maintain productivity, too.

24. Let the pros do their jobs to avoid confusion. Ask questions if something concerns you, but don’t get involved in the day-to-day management and give conflicting directions to subcontractors. This risks creating miscommunication. “The architect is your representative to the contractor and can walk through the site with you, get notes and then take that direction back to the contractor,” says Dan D’Amelio of D’Amelio Porter in New York City. Since each knows the technical aspects of construction, they will speak the same language fluently. The architect can also approve the completion of each stage.

25. Prepare a punch list, or post-job list of to-do items you feel may still need attention. When the job appears done, it’s customary to do a walk-through with the contractor or project manager and your architect. “Before the walk-through,” says Jason Yowell, “get some Post-its and use them to write notes for anything that concerns you, and then attach it to that item.” Bring the punch list to the meeting.

26. Space out the payments. You should have been doing this throughout the project with the help of your written contract that includes an incremental pay schedule worked up beforehand. Now is the time to be ready with the final payment. This schedule is your insurance that the contractor will be with you until the end. Only when the project is completed—and any lien period has expired—and you are happily surveying a job well done, shake hands and hand over that check.

Posted via email from juliewilliamson's posterous

For Your Clients: How to Manage Unexpected Home Expenses

2011-04-15T11:26:00.001-07:00

Homes are more affordable these days, the selection is abundant, and interest rates are still fairly low. For some people, it could well be a great time to buy.

But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are a host of other checkbook-sapping details—both recognizable and unexpected—that can get overlooked in the excitement of buying a house, especially if it’s your first.

Ultimately, those things might mean the difference between home sweet home and foreclosure.

“It is extremely important to explain to all buyers, but especially first-time buyers, that there are additional expenses other than their monthly mortgage payment,” said Philadelphia-area real estate agent John Duffy.

Just because a lender has qualified you for a certain size mortgage doesn’t mean you have to spend that much on a house, Duffy said his agents caution buyers. “There will be additional, unforeseen costs, such as repairs, decorating, improvements, utilities and the like,” Duffy said. “We like to tell them that we want them to enjoy their new home and not be house-poor.”

Through the loan-qualifying process, some buyers, especially first-timers, become aware of the concept of spending only a certain percentage of their income on what is called PITI—principal, interest, taxes and insurance—”maybe 33 percent of income,” said Jerome Scarpello of Leo Mortgage in Ambler, P.A. The reason that percentage isn’t higher is that other expenses will be incurred with homeownership, he said.

“Of course, there are some folks who really need to be taught this,” Scarpello said, recounting a story he heard of borrowers who brought their electric bill to the bank when paying their mortgage. “They were surprised to learn,” he said, “the mortgage did not include electric, as their rental payment had.”

The “T” in PITI—taxes—can be extraordinarily expensive, depending on where you live. If you buy into a condo complex or a new-home development, you will have to factor in monthly homeowners association fees, as well. PITI and association fees are fixed costs, for the most part, although homeowners insurance rates and taxes can rise. Mortgage interest can change, too, if you don’t have a fixed-rate loan.

“I generally estimate high,” said Jeff Block of Prudential Fox & Roach in Philadelphia, “because I feel it is really important for buyers to have a conservative estimate and a detailed understanding of what their costs will be.”

Bruce Hahn, president of the grass-roots American Homeowners Association in Arlington, V.A., said home listings typically include historic costs for utilities, condo fees and taxes, “so it should not be hard for buyers to anticipate how much extra cash flow they’ll need to cover them.” If that information isn’t provided, Hahn said, buyers should use all other possible means to determine or estimate them in advance. He urged buyers to set aside a “rainy-day fund” for unanticipated major expenses, such as a broken heat pump or air conditioner or a roof leak. “Homeowners’ insurance plans often have lots of gaps, so there are many things they don’t cover.”

For example, Hahn said, he was glad his homeowners’ insurance included flood coverage “when our basement stairwell drain was clogged with leaves and water backed up in our basement.” However, “our insurance agent explained that flooding is what happens when the river rises, but what we had was ‘seepage,’” which the homeowners policy did not cover.

As Hahn cautioned, you need to be intimately familiar with deductibles as well as coverage limits, so your annual premium will likely be much higher than the state average when you finish crafting your policy.

You certainly can shop around for the best rates, and, in many cases, save money on the premium with a policy that covers your automobiles as well as your house.

But you should also allow for simultaneous unanticipated expenses, such as a car transmission failure and a fridge on the fritz. If you are living on the economic edge, enough of these disasters can push you over it.

“We believe that $10,000 in liquid savings (a money-market account or the like) that can be turned into cash anytime with very little risk of capital loss is not too much,” Hahn said, adding that $5,000 was the recommended minimum. Hahn’s group doesn’t advise using credit cards to meet emergency expenses, because their interest rates are high compared to what savings accounts pay today. “It is better,” he said, “to liquidate a savings account that is only paying 1 percent to pay for emergency costs than put them on a credit card and pay 15 percent.”

Among expenses to factor into a home-buying decision:
-Utilities: Heat, electricity, water and sewer, telephone, cable television, Internet and cell phones. You also may have to pay a fee for trash collection and recycling.
-Food/entertainment: Dining in and out, movies, hobbies.
-Children: Day care, tuition, lunch money, supplies, clothing, sports gear.
-Health costs: Braces, eyeglasses, medicine.
-Debt: Credit-card payments, car/student loans.
-Maintenance/repairs/decor: Furnishings and appliances, landscaping, snow removal.
-Job expenses: Transportation (gasoline or transit costs), auto maintenance.

Posted via email from juliewilliamson's posterous

10 Tips for a Cleaner, Safer Kitchen

2011-04-14T10:21:00.001-07:00

The first day of spring has come and gone. To get the cleaning season started right, we looked for the best advice on cleaning the busiest—and maybe dirtiest—room in the house: the kitchen.

For a list of what we should clean, how and when, we asked a bunch of germ experts.

The biggest surprise? People with pets are six times more likely to get salmonella-based infections. The culprit is pet bowls, particularly the water bowl. We often dump it in the sink before we start handling food.

Want to sanitize?
Professional kitchens use a sanitizing solution made with one teaspoon household bleach in four cups of water. It’s sprayed on counters and cutting boards. Experts disagree on the need to use it at home, but if you do, do it correctly: Let sprayed surfaces air-dry—drying with dish towels may recontaminate the surface. Always clean before you sanitize. If chlorine comes in contact with dirt or soil, it can no longer sanitize. Don’t use more than one teaspoon chlorine—stronger isn’t better. And change it about every five days. Chlorine dissipates quickly.

1. Microwave
Fill a bowl with two cups water and a whole lemon, cut into slices. Place it inside and microwave for two minutes, then wipe it out with paper towels. The hot water softens food spills and the lemon cuts grease and keeps the microwave smelling fresh

2. Stove and oven
Spray stove spills with an all-purpose cleaner and let stand 10 minutes for easier cleaning. Oven spills aren’t a food hazard if you regularly heat the oven to 400. Cover a fresh spill with salt until you have time to clean it.

3. Counters
Clean regularly with an all-purpose cleaner. Spray with a weak bleach solution and air-dry if needed.

4. Dishes and dishwashers
If you hand-wash dishes, be sure to air-dry them in a rack as dirty or wet dish towels can recontaminate clean dishes. To reduce soap buildup in a dishwasher, occasionally fill the soap dispenser with baking soda or place a small cup of vinegar on the top shelf, then run the dishwater empty.

5. Sink, drain and faucet handle
Clean regularly with household cleanser, especially after washing or rinsing raw meat. Don’t forget to clean the faucet handle.

6. Refrigerator
Every day, wipe down the handles, including the underside. Every week, throw out anything that’s past its date or shows age. Every three to six months, empty shelves and clean the inside with 1/4 cup baking soda in one quart warm water, then spray with a bleach solution and air-dry. Remove drawers and clean under them. Before you return the food, wipe jars to remove drips. Clean the rubber gasket inside the door to ensure a tight seal. Vacuum the coils in the back and empty and clean the drip pan if necessary.

7. Pet bowls
Find a place besides the kitchen to clean turtle or frog habitats and empty pet bowls, or clean and sanitize the sink before you start washing fresh food.

8. Cutting boards
Most scientists believe wooden cutting boards are safest, as long as they are kept clean, sanitized and dry. Studies have shown wood hampers bacteria growth, while bacteria thrive in scars on plastic. Either way, keep them clean by running them through the dishwasher, or sanitize by spritzing with a weak bleach solution. Always change boards or clean with soapy water after preparing raw food—even vegetables. They grow in dirt, after all.

9. Sponges and dish towels
Change dish towels daily, or more often if they’re wet or dirty. You can microwave a wet sponge for two minutes, but the time varies depending on the power of the microwave (and if the sponge is dry, it could catch fire). Instead, put sponges on the top rack of the dishwasher at the end of every day.

10. Cross-contamination
You know you’re not supposed to put cooked food on the same surface you used for raw food. But it’s not just a problem with cutting boards. You touch all kinds of things while you’re handling raw food: Salt and pepper shakers, cabinet handles, etc. Pay attention to what you touch so you can wipe things down. Tip: It’s not necessary to rinse raw meat and chicken—it just spreads bacteria.

Posted via email from juliewilliamson's posterous

Building Homeownership: What the April 18th FHA Price Increase Means for You #realestate

2011-04-13T15:03:00.001-07:00

RISMEDIA, April 13, 2011—In one of the first articles I wrote for this column, I said that the majority of home buyers today without 20% to put down on a new home are getting an FHA loan. I also said that many of those home buyers—in particular, those with a 720 or better FICO score—could have saved money on a conventional loan with private mortgage insurance (MI). And now that the FHA is increasing their pricing for the second time in less than six months, this message is even truer today.

While it’s typically the loan officer’s responsibility to know the ins and outs involved in mortgage lending, with the current market changing and the FHA taking further steps to reduce the number of loans they insure, it’s important for you to also understand these two simple points about private MI from companies like Radian. For example, come April 18th, Radian can:

1. Give your buyer 18% more purchasing power over the FHA.

2. Help you to qualify more home buyers and increase your sales by lowering a buyer’s monthly payment by up to 15% over the FHA.

Even in the healthiest housing market, it’d be hard to argue with numbers like this. Check out the comparisons below to see how the FHA increase stacks up in some real-life examples.

Based on a 30-year 95% LTV loan, a monthly payment of $1,600 and a FICO of 760; interest rate is 5% for all with the exception of LPMI which has a 5.5% rate.

Based on a 30-year 95% LTV loan, a base loan amount of $285,000 and a FICO of 760; interest rate is 5% for all with the exception of LPMI which has a 5.5% rate.

While there may be uncertainty about pending changes to home finance rules, there are two things that are certain. FHA prices are going up and, in many cases, conventional financing with MI will be the best option for you and your buyers. Secondly, with the Administration’s recommendation that Congress allow the FHA conforming loan limit increase to expire as scheduled on October 1, 2011, it’s clear that this change won’t be the last to ensure the FHA returns to its traditional, smaller role in the housing market.Now that I’ve had a chance to look at MI from a new perspective, and when you consider what numbers like these could mean for your bottom line—not to mention referral and repeat business from the home buyers you helped—I’m simply asking that you consider the options. Or better yet, ask your lending partner to compare the FHA’s new rates to a conventional loan with private MI. You (and your buyers) won’t be sorry you did.

Posted via email from juliewilliamson's posterous

Some real estate agents feeling spring chill #realestate

2011-04-12T13:23:00.001-07:00

Housing industry complains of tight lending standards in post-bust era

Spring typically is the year's busiest season for residential real estate, but this year some normally upbeat sales agents are showing signs of nervousness as they confront sluggish growth and tough lending standards.

“It’s so hard to tell what will happen," says Sabrina Jones-Schroeder, a managing broker and owner of Exit Real Estate Professionals in Spokane, Wash. She says her biggest concern is that "the lending industry remains so conservative,” making it hard for buyers to get loans.

Jones-Schroeder is not alone in her sentiments. The National Association of Realtors cites lenders’ conservatism and appraisal complications as among the top two impediments to a real estate recovery, according to spokesman Walt Molony. The trade group argues that home sales volumes would rise 15 percent if lending standards simply returned to pre-bubble norms.

Sales of existing homes fell sharply in February, but the Realtors project volume will rise 7.4 percent this year. Still even the Realtors expect prices to continue declining, falling by about 1 percent this year before rising modestly next year. In other words, things aren’t getting worse, really, but they’re not improving dramatically either.

Molony noted that transactions this year are being done without a federal tax credit that helped boost activity last year.

Real estate activity often picks up in the spring as sellers strive to get top dollar catering to buyers who want to move in the summer.

Story: Renewed housing drop weighs on economy

But this year prospects are highly uncertain as economic growth remains relatively sluggish and the post-bust market is still glutted with inventory generated by millions of foreclosures.

Taylor Connolly, a Redfin agent in the Washington, D.C., metro area, is optimistic — but his enthusiasm varies by geographic location within his large swath of turf.

Buyers and sellers in or near downtown cores are gaining confidence after six months of stabilized or even rising prices in their neighborhoods, while those shopping or selling in further-out suburban locations are not seeing the same market improvements.

That said, Connolly has some longer-term concerns about the volume of homeowners who are “underwater” on their mortgages, owing more than their mortgage balance. This could suppress some potentially nice listings, he says.

“Sellers may run the numbers and see them simply not add up,” Connolly says. “There are still quite a lot of people underwater around here.”

Carl Tate, an agent in Southern California, said by e-mail that he was nervous about the upcoming spring and summer selling season because markets in his area have not hit bottom yet, buyers are having trouble qualifying for loans and banks are forcing some short sellers into foreclosure, complicating the market’s inventory and values.

Maybe next year?
Jennifer de Vivo, an agent with the De Vivo Team in Orlando, Fla., is more upbeat. She said she is seeing more interest from buyers, and expects sales levels to clock in at volumes reminiscent of the pre-bubble days.

She said she is seeing an increase in "traditional" listings, meaning the properties are not underwater or in foreclosure. But she is concerned about the cost of mortgage and homeowners’ insurance, appraisal disparities and the possible unleashing of “shadow inventory” — homes rented or sitting empty until an owner decides to list — which could water down the market.

PR campaign for ownership
Add to the picture some new wrinkles, including reports that existing-home sales figures might be inflated due to changes in data collection methodology. In addition, Congress is considering the fate of giant mortgage agencies Fannie Mae and Freddie Mac, and loan standards are likely to remain tight as part of broader banking reforms included in last year's Dodd-Frank Act.

Against this backdrop, The National Association of Realtors recently completed a multicity tour of a bus festooned with a banner reading "Home Ownership Matters.” The tour advocated for preserving key benefits of home ownership after years that have seen skeptics take a hard look at the industry.

Story: New homes become a bad deal in weak markets

Still, if 2011 is a stormy time for real estate, some say it’s the beginning of a new and better era, in which buyers are better-qualified under their newer, more conservative financing, and good deals are available.

Eddie Nguyen, an agent who works mainly with buyers in San Diego, said the hard-hit market is emerging from the bust.

Nguyen expects to close 75 deals this year — double his volume in 2010. While he worries about the potential “unleashing” of foreclosures by lenders with large stocks of repossessed homes on their books, he also thinks demand exceeds supply in his market. Most of his buyers are under 30, and many are using FHA and VA low-down financing, he says.

If he’s nervous, it’s about keeping up with demand. "This is probably the best market I’ve seen in about five years,” he says.

Posted via email from juliewilliamson's posterous

HUD to Address ‘National Origin’ Housing Discrimination during National Fair Housing Month

2011-04-12T11:02:00.001-07:00

The U.S. Department of Housing and Urban Development (HUD) announced today that it will launch an effort to better address national origin-based housing discrimination during Fair Housing Month in April. HUD will initiate a national media campaign and a series of community discussions on topics ranging from rental practices to mortgage lending. HUD’s first Immigrant Housing Conference, which will educate the public and housing providers about their fair housing rights and responsibilities, will be conducted in Omaha, Nebraska, April 14.

The Fair Housing Act prohibits discrimination in rental, sales or home lending transactions based on a person’s national origin. This includes discrimination based on a person’s ancestry, country of birth outside the United States, and the language they speak. National origin discrimination often involves immigrants or non-English speaking individuals, but can also involve native-born U. S. citizens based on their family ancestry. This type of discrimination may also occur in conjunction with the other protections of the Fair Housing Act against race, color, religion, gender, disability, and family status discrimination.

One part of HUD’s “Live Free” national media campaign is a print advertisement featuring a Latino worker looking into the horizon, with a caption in Spanish reading: “You have the right to live where you choose. Report housing discrimination.”

HUD also recently awarded nearly $41 million to 108 fair housing organizations and non-profit agencies across the country to educate the public and combat housing and lending discrimination. Many of the groups will use the grants to address discrimination against immigrants, Latinos, non-native English speakers and minority communities. See this selected list of grantees and their work.

Some examples of how the grants will be used to combat national origin discrimination include:

- The Fair Housing Council of Riverside County, California, will test for discrimination in the sale and rental of housing units in the area of national origin;

- The Equal Rights Center in Washington, DC, will investigate 240 new complaints of housing discrimination alleging violation of federal fair housing laws with an emphasis on national origin;

- The Idaho Legal Aid Services will broadcast public service announcements in Spanish about FHA lending information; and

-Prairie State Legal Services in Rockford, Illinois, will focus on educational outreach to Spanish-speaking residents, a group recognized statewide as at-risk.

More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Posted via email from juliewilliamson's posterous

The Power of Belief and Expectation

2011-04-08T11:10:00.001-07:00

While you may not always get what you want, you will always get what you expect! Surprisingly, the power of belief and expectation work just as effectively on your feelings of self-doubt and limitation as they do on your thoughts of success and achievement.

Think thoughts of defeat or failure and you are bound to be discouraged. Belief is an incredibly powerful state of mind. Your belief system not only defines and shapes who you are, but it also determines your potential. Henry Ford was correct when he said, “Whether you think you can or think you can’t – you are right.” Your belief system, like your computer, doesn’t judge what you input; it simply accepts it as the truth.

Earl Nightingale, cofounder of the Nightingale-Conant Corporation, concluded that life’s strangest secret is that you become what you think about all day long. If you want to know where your predominant thoughts lie and what you believe, look at what you are experiencing in your life. Your thoughts are creative by nature and express themselves through your emotions, which in turn, drive your actions.

Everything you say, both positive and negative, is literally an affirmation. Consider this well-known quotation:

“Watch your thoughts, for they become words. Choose your words, for they become actions. Understand your actions, for they become habits. Study your habits, for they will become your character. Develop your character, for it becomes your destiny.”
- Anonymous

Many years ago, I heard about an eager, new insurance agent who had just received his license and was looking for prospects. He met with a successful businessman who had agreed to provide him with referrals. As the businessman handed the insurance agent 10 referrals, he asked him to contact the prospects immediately and get back to him with the results.

Two weeks later, the enthusiastic salesman dropped by the businessman’s office to give him feedback and ask for more referrals. The insurance agent was pleased to announce that he had been very successful! He proudly stated that he had already contacted and sold insurance policies to seven of the referrals and was still attempting to contact the other three. After thanking the businessman for giving him the 10 prospects, he asked him if he had thought of any other referrals.

The businessman smiled and said that he was very busy at the moment and surprised the insurance agent by handing him a phonebook. The businessman informed him that the previous 10 prospects were not his personal contacts, but rather names that he had selected at random out of the phonebook. He suggested that the salesman go ahead and get the next 10 prospects out of the phonebook himself!

The astute businessman taught the new salesman an extremely valuable lesson in the power of belief and expectation. The salesman had made those sales on the belief that he had been given 10 preferred prospects. Therefore, he was confident and eager to contact those leads and expected to make the sales with little or no difficulty. What is your belief about your market and what expectations do you have for your success? Yes, belief is indeed a very powerful state of mind!

Posted via email from juliewilliamson's posterous

Jaded? Stressed? Jumpy? It Might Be ‘Home Seller’s Fatigue’

2011-04-07T13:40:00.001-07:00

After languishing one year and one week on the lousiest real estate market since Fred and Wilma bought their little stone cottage, I am selling my house.

“Congratulations!” people are saying. So why am I not doing cartwheels and popping champagne as I imagined I would? Could it be because, after months and months of showings and price reductions and raised and crushed hopes, I am selling my house for 33 percent less than I paid for it in 2005? Maybe that’s it!

Please forgive the ugly sarcasm. I can’t really help it; it’s just a pathetic aftereffect of what I have come to recognize as “home seller’s fatigue.” This is a condition in which prolonged exposure to spray cleaner and the continual threat of strangers appearing at the door make a person (to use the clinical term) a little wacko.

If you’ve had a home on the market for a while, HSF can sneak up on you. But I’m here to help you recognize the problem. Are you experiencing symptoms like these?

You have a constant unsettled feeling reinforced daily by the sight of the sign in your front yard, swinging in the wind and, you would swear some days, laughing.

You have developed paranoia because during various open houses people swiped your prescription drugs and went through your drawers. Not only do you no longer have open houses, but you jump whenever your husband touches you.

You avoid your neighbors because you are embarrassed that you can’t sell your house. Plus, for all you know, they came to your open houses and went through your drawers.

You make the place all pretty, and the prospects come and go, and do they call again? No. And yet despite this rejection you want them to come back, and this makes you feel bad about yourself. That’s right, it’s exactly like dating.

Your agent gets an email from some guy who says he’s in Japan but he saw the house listing online and wants to buy it sight unseen at your full asking price. And you actually think about it. (This really happened.)

You grow to hate every prospective buyer, and you hate them even more after they make an offer, because your house deserves more. You turn around and hate your house for not growing another bedroom. You hate your agent for not waving a wand and making more offers appear. You hate yourself for buying when the market was at its peak, even though you got top dollar for your old house. You pretty much hate everybody and everything.

Impaired judgment, paranoia, anti-social disorder, burying statues of saints in the yard — can’t something be done?

Joan Gale Frank has some ideas. Frank is a survivor of that crucible of modern real estate, Arizona, where she and her husband spent about a year selling their house. She wrote a book about the mental strain, “Home Seller’s Blues and How to Beat Them.”

Frank’s overall message is to find the silver lining. She reminds us that while we’re constantly cleaning, we can enjoy living in our house at its best. We get a head start on packing when we get rid of the clutter. We are more mentally prepared to move. We are forced to live in the moment. We have an excuse to eat out so we can keep the kitchen clean.

I view these as useful treatments for early, minor cases of HSF. But those of us who have endured the real estate equivalent of the siege of Stalingrad might need more. Like a voodoo doll or an extra large bottle of Scotch.

Obviously, one of my coping skills is a sense of humor. But I don’t want anyone to think that I am belittling the devastating impact that losing a home has on a family. My husband and I actually are selling two houses, having married recently (well, not so recently now!), and trying to buy a third one. We are fortunate that we are not under water or at risk of foreclosure. My heart goes out to those families who are. But if we were, I would be trying mighty hard to find something to laugh about.

Keeping a journal is another of Frank’s suggestions, and if you’re the type, it’s good catharsis. Certainly, if I’d had any inkling it would take a year to sell my house, I would have started a blog and maybe had a book deal by now.

If writing isn’t your thing, I suggest some other kind of healthy catharsis. Talk to a good friend, a therapist or, if you’re lucky like me, your understanding partner in this nightmare, your spouse. Exercise regularly; you might try bowling. Pretend each pin is one of those prospects who said your kitchen was too small: “That’s reflected (release, roll) in the (crash!) asking price!”

Frank says, and I agree, that it also helps to remember the big picture: why you’re selling in the first place. I tried to envision us actually living as a family in a home we found together. Other times I chucked the optimism and reminded myself: This is a rotten time in your life. This is not supposed to feel good. So embrace the misery once in a while. And get back to cleaning; you’ve got a showing in an hour.

There are many treatments for HSF, but only one cure: selling the house. Trouble is, now that our family has unloaded my place, we’ve fallen prey to a new ailment: insufferably demanding homebuyer’s syndrome.

Posted via email from juliewilliamson's posterous

NAR Study Finds Americans Prefer Smart-Growth Communities

2011-04-06T11:03:00.001-07:00

Americans favor walkable, mixed-use neighborhoods, with 56% of respondents preferring smart growth neighborhoods over neighborhoods that require more driving between home, work and recreation. That’s according to a recent study, the Community Preference Survey, by the National Association of REALTORS®.

“REALTORS® care about improving communities through smart growth initiatives,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Our members don’t just sell homes, they sell neighborhoods. REALTORS® understand that different home buyers are looking for all kinds of neighborhood settings and that many home buyers want walkable, transit-accessible communities.”

Walkable communities are defined as those where shops, restaurants and local businesses are within walking distance from homes.

According to the survey, when considering a home purchase, 77% of respondents said they would look for neighborhoods with abundant sidewalks and other pedestrian-friendly features, and 50% would like to see improvements to existing public transportation rather than initiatives to build new roads and developments.

The survey also revealed that while space is important to home buyers, many are willing to sacrifice square footage for less driving. Eighty percent of those surveyed would prefer to live in a single-family, detached home as long as it didn’t require a longer commute, but nearly three out of five of those surveyed—59%—would choose a smaller home if it meant a commute time of 20 minutes or less.

The survey also found that community characteristics are very important to most people. When considering a home purchase, 88% of respondents placed more value on the quality of the neighborhood than the size of the home, and 77% of those surveyed want communities with high-quality schools.

The survey of 2,071 adult Americans was conducted by Belden, Russonello and Stewart from February 15-24, 2011.

Posted via email from juliewilliamson's posterous

REALTORS® Committed to Fair Housing Throughout the Year #realestate

2011-04-05T15:03:00.001-07:00

The National Association of REALTORS® will join Americans across the country as they honor Fair Housing Month this April. As one of the leading advocates for homeownership, NAR strongly supports the Fair Housing Act and believes that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.

This April marks the 43rd anniversary of the 1968 landmark Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status or disability. NAR also supports equal opportunity on the basis of sexual orientation, incorporating that support into the REALTOR® Code of Ethics.

“REALTORS® work tirelessly to build communities and believe people have a right to live wherever they can afford to live,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “In this vein, REALTORS® believe it’s imperative to recognize Fair Housing Month and reconfirm our commitment to upholding fair housing laws and our commitment to offer equal professional service to everyone.”

NAR’s Equal Opportunity and Cultural Diversity program offers REALTORS® education, grants, programs and events related to fair housing and diversity. Through the At Home with Diversity course, REALTORS® learn how to best work with and serve diverse consumers. Since its inception in 1998, At Home with Diversity has addressed the topics of diversity, fair housing and business planning development in a full-day certification course. NAR’s Employer-Assisted Housing Class gives REALTORS® tools to work with local employers, helping them implement employer-assisted housing benefits to help employees become homeowners.

Extensive training, grants and resources are also available to help REALTOR® associations and their members reach out to better serve today’s diverse clientele. One workshop for association staff and their leaders, Leading with Diversity: A Business Imperative in a Changing World, helps REALTORS® associations incorporate diversity initiatives into their business models. In addition, NAR awards Diversity Initiative Grants to local and state associations twice a year, and Housing Opportunity Program Grants are also available to help associations support activities that create and expand affordable housing opportunities.

The Ira Gribin Workforce Housing Grants program, which concluded in December 2010, awarded $4.93 million to 52 state associations and foundations with the goal of stimulating REALTORS®’ efforts to address the ongoing need for affordable workforce housing. An end-of-program report will be available in May 2011.

NAR has successfully built partnerships with housing groups and professional real estate organizations representing the multicultural community. In May, NAR will join five real estate diversity partners in sponsoring the HOPE (Home Ownership Participation for Everyone) Awards. The awards recognize outstanding individuals and programs that are increasing minority homeownership, revitalizing communities and expanding affordable housing opportunities.

“NAR is committed to increasing awareness about fair housing laws and promoting inclusion and diversity in our nation’s communities,” said Phipps. “For REALTORS®, every month is fair housing month. With every transaction REALTORS® strive to promote inclusion, diversity and fairness in the housing industry.”

Posted via email from juliewilliamson's posterous

Buyer’s Market Spurs Confidence in Young Professionals & Affluent Homeowners #realestate

2011-04-04T10:56:00.001-07:00

As the cold temperatures become a distant memory, and the spring selling season gains momentum, consumers have come to agree on one thing—now’s a good time to get off the fence and into the real estate market. This is the overall theme in the latest American Express Spending and Saving Tracker survey, a monthly survey that tracks the spending and saving habits of consumers in order to get an indication of what’s happening in the market. “This month’s Spending and Saving Tracker provided an up-to-date look at various consumer trends and gave us the opportunity to assess how consumers are feeling about the current market in addition to gauging homeowner confidence,” says Leah Gerstner, vice president of public affairs at American Express.

“This month’s survey points to the fact that consumers overwhelmingly feel that we are in the midst of a buyer’s market,” she adds. The data also points to the fact that a seller’s market is at least a year away, which is certainly positive news. While homeowners aren’t necessarily willing to settle for less than the asking price when selling their home, two of the biggest areas of interest in the latest survey deal with homeowners including home improvement projects on their to-do list, as well as the willingness to include concessions to get their home sold.

Home Improvements
“In looking at the results of our latest Spending and Saving Tracker survey, our thinking was that if consumers overwhelmingly view today’s market as a buyer’s market—which they do—they are likely to have plans to put more money into their home,” adds Gerstner. In fact, the survey found that about 64 percent of homeowners currently have home improvement projects on their to-do list for 2011. While the plans are in place, the amount that homeowners are budgeting to spend has gone down quite a bit from last year. “Homeowners are looking for better ways to stretch their dollars, and many are looking toward energy-efficient home improvements that will pay off in the long run.” The survey shows that among homeowners who are looking to go green, the most common items homeowners would spend their money on include energy-efficient windows and doors, insulation, roofing, heating and cooling systems as well as alternative energy systems.

Concessions
Another finding that stood out in the latest survey had to do with whether or not sellers were willing to make concessions to get their homes sold, especially in today’s market. While 44 percent of sellers were willing to give away appliances during a sale—the biggest concession among young professionals and affluent homeowners—another 28 percent said they would take care of requested repairs in order to get their home sold. “While a large majority of sellers are willing to make concessions to get their home off the market, the willingness to make concessions is down among young professionals when compared with the 2010 survey,” says Gerstner. “This is an important finding as it shows that young professionals are more confident in their ability to sell their homes today.”

“Homeowner confidence in today’s market has increased compared to last year,” says Gerstner. “In fact, the survey shows that the confidence level is pretty evenly split—42 percent of homeowners are confident they will get their asking price in today’s market, while 47 percent of homeowners aren’t that confident.” Even though home values continue to be on the low side, young professionals and affluent homeowners are seemingly more confident in today’s market.

Posted via email from juliewilliamson's posterous

Now Is the Time to Get Your Home’s Exterior in Tip-top Condition

2011-03-31T12:13:00.001-07:00

According to DIY shopping and support website Trades Supermarket, the improved spring weather means more than giving the lawn a trim for homeowners; it signifies the time to undertake necessary repair and maintenance checks, not only to make sure the house and garden look good and are safe for summer but also to save expenditure on major improvements in the long run.

The strong winds over the winter months may have impacted the safety of areas in and around the home, notes Tommy Walsh, TV favorite and member of the Trades Supermarket team. These impacted areas can include roofs, guttering and fences. Walsh suggests that homeowners ensure wooden fence posts are still intact and embedded properly in the ground, and consider treating them by applying a new coat of preservative. Checking guttering, fascias and roof tiles for damage and movement, as well as clearing out any leaves and debris that have built-up over the winter, are must-do jobs. Walsh adds that ladder work is always a two person job, and that people who are not confident should consult professionals.

According to Walsh, checking for the onset of rot in wood is another important safety check, especially on sheds and decking, which could cause serious injury to people if they collapsed. With decking, Walsh suggests looking at the condition of the posts and making sure the planking is nailed or screwed firmly in place. Shed owners should not only inspect the wood but also make sure the roofing felt has not shrunk or ripped—replacing it if necessary to prevent leaks—therefore avoiding further damage to the wood or the shed’s contents. If decking or sheds are due for a fresh coat of a preservative treatment, Walsh advises making sure the timber is washed down using a stiff brush and lightly sanding before application.

“Doing maintenance checks around the home are jobs that are often put off until ‘next weekend’ but many of these checks are for safety reasons,” says Walsh. “You don’t want to risk any accidents or end up spending more money having to replace things, like your fascias or decking, in the long run.”

Posted via email from juliewilliamson's posterous

Consumers Agree – It’s A Good Time to Buy Real Estate

2011-03-25T13:16:00.001-07:00

According to the latest Spending and Saving Tracker from American Express, more than two in five (41 percent) of Americans said that it’s a buyer’s market for real estate. However, over 61 percent agree that a seller’s market is at least a year away.

Other findings:
• Homeowner confidence on whether they would receive the asking price for their home is nearly evenly split—43 percent said they are confident they would; 47 percent are not very or not at all confident.

• However, many homeowners—39 percent—are not willing to settle for less than the asking price, even considering the tough real estate market, in contrast to 23 percent who are willing and 38 percent who are not sure.

• To sell their home in the current market, 44 percent of homeowners note that they would be interested in including appliances, while 28 percent would consider offering to make requested repairs or allowing an allotment for repairs.

Posted via email from juliewilliamson's posterous

How Well Are You Insured Against Flooding?

2011-03-23T12:47:00.001-07:00

The frightening images of Japan’s tsunami wiping out homes, roads and entire cities are vivid reminders that a natural disaster can strike at any time.

And whether it’s an earthquake, a wildfire or flooding, being covered against severe damage to your home or business is essential.

Across the United States, flooding is the No. 1 natural disaster, according to the Federal Emergency Management Agency.

And given the region’s swollen rivers and the promise of heavy runoff this spring from melting snow, now is a good time to assess how well you’re protected against flooding.

A basic homeowner’s or business’ insurance policy will cover damage caused by storms, such as a leaky roof, fallen tree limbs or broken pipes.

But a homeowner’s policy typically does not cover damage due to flooding, or what’s known as “rising water.”

Flooding—such as a levee break, a river overflowing its banks or water from springtime snow melt—is generally defined as a temporary inundation of normally dry land. For that type of coverage, you need a separate flood policy, which is provided by the federal government’s National Flood Insurance Program and purchased through a local insurance agent.

“The distinction is that homeowner’s insurance covers water falling from the sky; flood insurance covers water rising from the ground,” says Tully Lehman, spokesman for the nonprofit Insurance Information Network of California.

In some areas, flood insurance is required, particularly in high-risk areas. “In other areas, flood insurance is suggested but not mandatory,” says Vince Wetzel, the Sacramento-based spokesman for State Farm Insurance. “People need to evaluate the costs and (flood) risks and decide for themselves.”

Flood insurance covers most damage to your home, business and personal property caused by temporary inundation of water. It includes mudflows, but not landslides.

One limitation to flood insurance is basements. Improvements such as sheetrocked walls, finished floors and personal belongings in a basement are not covered by flood insurance; essential household equipment such as furnaces or water heaters is covered.

For residential policies, the maximum coverage is $250,000 for the structure and $100,000 in personal property. For a business or commercial property, the maximum limits are $500,000 structural and $500,000 in contents.

Flood insurance premiums vary, depending on where you live and whether your home is considered at high or low risk of flooding.

The average residential flood insurance premium is about $570 per year, according to the NFIP. But homeowners in low-risk areas can purchase coverage for as little as $129 a year; those whose homes are in heavily flood-prone areas will pay $2,700 or more in annual premiums. Commercial property rates are higher. See www.floodsmart.gov for details.

And keep in mind: If you get a policy today, it doesn’t go into effect until 30 days after it’s purchased.

Regardless of whether you purchase flood insurance, it’s a good idea to conduct a home inventory.

Here’s a test recommended by insurers: Sit and mentally visualize everything in your living room, from the TV to the bookshelves to the candle collection on your mantel. Got your list? Now walk through the room itself, seeing all the items you missed.

It’s easy to underestimate the number and value of possessions, from major appliances to decorative objects. But in the event of a disaster, you want to be able to get reimbursed for your losses.

Doing a home inventory can help with replacement costs for any type of damage, whether it’s a flood or other disaster covered by your regular homeowner’s policy.

If you don’t have an accurate inventory and your policy “only lists that 12-inch TV from your college days and doesn’t include that big flat-screen TV you bought,” you could be vastly underinsured, says Lehman.

The same goes for home-remodeling projects.

“Any time you do changes, such as kitchen and bath upgrades, you want to be sure your homeowner’s insurance policy includes that information,” says Lehman. “If you’ve gone from Formica countertops to a nice marble or granite, or from a Frigidaire to a SubZero refrigerator,” you should include those improvements, he says.

To do a home inventory, walk through your house, room by room, with a video or regular camera, photographing major objects, such as furniture, electronics, etc.

If using a video camera, talk and describe the room and its contents. If taking still photos, date and label each photograph with details. Jot down serial numbers for major appliances and electronics.

You can file everything in a binder, on a CD or on your computer, ideally with copies of sales receipts for major purchases, such as electronics, appliances, furniture, etc.

Websites, such as the California Department of Insurance (www.insurance.ca.gov) or the Insurance Information Institute (www.knowyourstuff.org), have handy inventory planners that you can print out or download. And, of course, there’s an iPhone app, too: “Home Inventory.”

Keep a copy—along with your insurance policy and insurance agent’s contact information—in a secure and waterproof place: a safe-deposit box, a home safe or in a separate location, such as with a trusted family member.

Like Hurricane Katrina, which set records in the United States six years ago for water-related insurance claims, the overwhelming losses suffered by individuals and families in Japan can serve as a wake-up call to be prepared.

“Whenever a disaster like this happens, it makes people question: If this were to happen here, what do I need to do to be covered?” says State Farm’s Wetzel. “It makes you re-evaluate.”

Posted via email from juliewilliamson's posterous

Young Home Buyers Will Lead Housing Market Recovery, Says NAHB

2011-03-21T11:12:00.001-07:00

Generation X—young families and adults ages 31 to 45—are likely to lead the home-buying recovery as it gets underway, according to real estate experts who spoke at an educational webinar produced by the National Association of Home Builders (NAHB) in partnership with Builder magazine.

These potential home buyers are most likely to think it’s a good time to get off the fence—and have strong opinions about the design features their new homes will include.

At 32% of the population of home-buying age—generally defined as those who are at least 30 years old, the Gen X population cohort isn’t the largest, but it’s the most mobile, said presenter Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. “They are in full force with their careers and they need to accommodate growing families,” she said.

In sharp contrast, even though they constitute 41% of prospective home buyers, Baby Boomers continue to wait for the market to improve, and their decisions to delay retirement also delay their decisions to downsize into a smaller home, Carmichael said.

Most of the 10,000 buyers and potential buyers in 27 metro areas that the consulting company surveyed were optimistic about a new home purchase, with between 85% and 89% saying that it was a good time to buy a home. Only 13% said they thought home prices would continue to fall, further evidence that it’s “not all about price,” she said. “They want something compelling, from a design or personalization standpoint,” said Carmichael.

In addition, though the average home size is shrinking, a majority of prospective buyers said they would like a bigger home than the one they have. “These are first-time buyers or younger families looking for more room to grow,” she said.

Seventy percent said that they were willing to pay $5,000 more for a green home, but those responding to the survey said that they expected new homes to already have many green technology features. They also said they would pay a premium for dark wood cabinets, a separate tub and shower and a fireplace in the living room, and more preferred a great room over formal spaces.

And while community amenities are important to Gen X buyers, 46% said they prefer a home in a large-lot, suburban development, versus the 21% looking for a traditional or “walkable” neighborhood.

Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., also emphasized that design will be important in generating sales in the emerging marketplace. “The notion of ‘build it and they will come’ no longer works. Design matters,” she said.

McCune said buyers are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage.

“While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration,” said NAHB Chief Economist David Crowe. “Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations.”

This webinar was one in a four part series entitled New Horizons: Setting a Course for Success in the New Market. The series was sponsored by Simonton Windows and ThermaTru.

Posted via email from juliewilliamson's posterous

Unhealthy Homes Pose Real Danger to Millions of Families

2011-03-14T11:14:00.001-07:00

Millions of U.S. families face health and safety hazards like mold, lead, pest infestation and the physical deterioration of their homes. These problems are particularly common among some of the nation’s most vulnerable populations: children, seniors, the disabled and low-income families.

To address these widespread issues, the U.S. Department of Housing and Urban Development (HUD), the U.S. Centers for Disease Control and Prevention, the U.S. Environmental Protection Agency, U.S. Department of Energy and the U.S. Department of Agriculture will host more than 3,000 national health and safety experts in Denver from June 20-23, 2011 at the National Healthy Homes Conference (NHHC). Under the theme, Leading the Nation to Healthy Homes, Families and Communities, this is one of the most comprehensive forums ever held on the issue.

“It’s time that we move from talk to action,” said HUD Secretary Shaun Donovan. “Our goal is to ensure that every home is designed, built, rehabbed and maintained in a manner that protects the health and safety of American families. This conference encourages the exchange of critical information and presents innovative approaches and solutions to reduce home-related hazards.”

The Conference will feature more than 150 educational sessions and workshops, allowing officials from the public health, housing, safety and environmental communities to collaborate and share ideas. Presentations will be made by representatives of more than 200 organizations, such as Habitat for Humanity, American Lung Association, National Center for Healthy Housing, AARP, National Association of Homebuilders and the Harvard School of Public Health.

“Building a Healthy Neighborhood” Volunteer Event Kicks-Off Conference Activities June 18-19

One of the highlights of NHHC takes place prior to the official start, when HUD and Rebuilding Together rehabilitate 25 homes in a Denver neighborhood on June 18 and 19. The event, called Building a Healthy Neighborhood, will bring together more than 300 volunteers to make the homes of local families safer and healthier. Volunteers may register at www.healthyhomesconference.org.

About the 2011 National Healthy Homes Conference

NHHC is one of the housing industry’s most comprehensive, progressive and educational forums on the issue of healthy, safe and sustainable homes. The conference is a federally-sponsored event, bringing together a wide range of health, housing and environmental professionals to work toward making housing healthy, safe and environmentally sustainable.

For more information, visit www.hud.gov.

Posted via email from juliewilliamson's posterous

California Realtors push for easier short sales #realestate

2011-03-11T11:18:00.001-08:00

Even as home seizures stall nationally with big banks facing a potential overhaul of the foreclosure system, California’s real estate agents want to see an alternative to foreclosure made simpler.

The short sale, in which a lender allows a borrower to sell their property for less than what is owed, remains doggedly difficult to do, the California Assn. of Realtors contends in an open letter published Thursday in seven major California newspapers, including the Los Angeles Times.

The real estate group is pushing for banks to approve more short sales and for regulators to streamline the process. The real estate agents argue that short sales are better for consumers and banks.

“We’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery,” Beth L. Peerce, president of the Realtors group, wrote in the letter.

For a deeper look at some of the issues dogging short sales, take a look at this Times article on the subject published last year.

Posted via email from juliewilliamson's posterous

LOS ANGELES REAL ESTATE: NAHB Identifies Top Counties for Home Remodeling

2011-03-10T15:09:00.001-08:00

At $9.4 billion, Los Angeles County, C.A. leads the country for counties spending the most money on remodeling, according to the National Association of Home Builders (NAHB).

Rounding out the top five list is Cook County in Illinois, Orange and San Diego counties in California, and Maricopa County in Arizona.

The NAHB model uses data from the American Housing Survey—which is funded by the U.S. Department of Housing and Urban Development and conducted by the U.S. Census Bureau—to estimate local remodeling based on home and homeowner characteristics. It is then applied to the information on every county’s homes and homeowners that the Census Bureau released late last year from its American Community Survey. The new NAHB estimates include remodeling spending per owner-occupied home.

“Total remodeling spending in a particular county is most strongly related to the number of homeowners in the county,” according to NAHB Chief Economist David Crowe. “On the other hand, we found that remodeling per home depends upon factors such as the share built before 1980, the share owned by married couples and, most significantly, the average value of the homes.”

Nantucket County, Mass. leads the nation on remodeling spending per home at $9,369. Other counties in the top five include New York County (Manhattan) and three counties in the San Francisco metropolitan area. In each of these counties, remodeling spending is more than $8,000 per owner-occupied home. In comparison, the average across all counties nationwide is $2,085.

“Many remodelers are seeing increased interest from homeowners on upgrading their home,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, and president of Associates in Building & Design, Ltd. in Ft. Collins, Colo. “Investing in home remodeling brings the immediate satisfaction of enjoying a more comfortable dwelling, but can also support long-term home values.”

The counties with the highest total estimated spending on home remodeling include:
-Los Angeles County, Calif. – $9.4 billion
-Cook County, Ill. – $4.6 billion
-Orange County, Calif. – $4 billion
-San Diego County, Calif. – $3.4 billion
-Maricopa County, Ariz. – $3 billion

The counties with the highest estimated spending per owner-occupied home include:
-Nantucket County, Mass. – $9,369
-Marin County, Calif. – $8,755
-New York County, N.Y. – $8,716
-San Francisco County, Calif. – $8,443
-San Mateo County, Calif. – $8,053

For more information, visit www.nahb.org.

Posted via email from juliewilliamson's posterous

Create a Memorable First Impression through Successful Curb Appeal

2011-03-09T11:25:00.001-08:00

Now that virtually all the winter’s snow has melted (in some areas of the country) and it’s easier to navigate the streets, let’s consider something calculated to get people slamming on the brakes: curb appeal, that special something that makes prospective buyers stop for a better look at a house for sale.

In normal market times, the National Association of REALTORS®, 49% of buying decisions are based on curb appeal. While we begin to understand and work through the “new normal,” curb appeal is still of major importance, especially with so many homes for sale.

In effect, curb appeal is “outdoor staging,” said Center City REALTOR® Joanne Davidow, of Prudential Fox & Roach. Even if the interior decor is Buckingham Palace-quality, no one will ever know if the place isn’t appealing from the street—because no one will ever ring the doorbell to see it. “You need to pay attention to the outside as well as the indoors,” she said.

Still, Marilou Buffum of Eichler & Moffly, Realtors in Philadelphia’s Chestnut Hill neighborhood, who concentrates on Northwest Philadelphia properties, cautioned that curb appeal “depends upon what a buyer is looking for.”

“If you have an urban-oriented buyer, a house with a lovely lawn isn’t high on the list,” Buffum said. “Clean windows, paint that isn’t peeling, an attractive front door, nice plantings, leaves raked and the freshly mowed lawn set the tone of what the buyer thinks the house should be.”

Late fall to early spring—right now, in other words—is the toughest time to make the view more pleasing. All the flowers, except perhaps pansies, are dead; all but the evergreen trees are leafless, and the grass is brown and sparse.

With short days and the sun at such a low point in the sky, the light that provides accent and focus to the appearance of a yard and house in spring and summer is temporarily unavailable.

There are challenges to curb appeal everywhere, no matter where you live. “The city is the best place to live, and I wouldn’t live anywhere else,” said Prudential Fox & Roach agent Jeff Block, who focuses on the Center City real estate market. “But city properties do deal with unique curb-appeal issues.

“One is simply windblown bags, wrappers and leaves,” he said. “You can sweep your sidewalk every day, but if the wind blows right before an appointment, the buyer doesn’t know that.”

Also affecting curb appeal may be the condition of neighboring houses. “We deal mostly with townhouses and twins,” Block said, “so sellers can point their brick, paint their door and trim and the house can look perfect. But it does not help if the attached house is beaten up.”

Said Buffum: “You have to look at your neighbor’s house when considering curb appeal. If there are issues, and you get along well with your neighbor, you might ask if they wouldn’t mind trimming hedges or cleaning their yards.” In some cases, sellers have even paid to have the house next door painted, she said. “Remember, you are selling your neighborhood, not just your house.”

Among the easier-to-fix curb-appeal issues are the weeds that pop up between pavers on sidewalks and patios, said Weichert Realtors agent Carolyn L. Sabatelli. Most plants and shrubs are still several weeks shy of bloom, “so color is at a premium” in late winter, said Sabatelli, who works out of Weichert’s Media office. “Bushes should be trimmed neatly, and plant beds should be trimmed out,” she said. “If driveways are asphalt, they should be nice and clean, and, if needed, another coat of blacktop applied.”

Think mulch, agents say. Fresh dark mulch adorning even barren landscapes gives them a warmer look.

Except for when a property cries out for professional help, boosting curb appeal does not have to be expensive, Buffum said. “A fresh coat of paint or windows washed and fixed don’t add up to much of an expense,” she said.

“Will you get the money back on your investment? Not necessarily, but you are making your house more appealing to buyers,” said Buffum. “It gives buyers the impression that you care.”

Some agents recommend having photos available that show how your house looks in other, more colorful seasons. In fact, Buffum and other agents make booklets of such pictures and leave them inside the house for prospective buyers to see.

But “I don’t think you should put those photographs in the MLS (Multiple Listing Service), because buyers will see right through it,” she said. “Not only that, but if it is winter and the photo of the house was taken in the spring, people will think the house has been lingering on the market for that long.”

Posted via email from juliewilliamson's posterous

Create a Memorable First Impression through Successful Curb Appeal

2011-03-09T11:24:00.001-08:00

With short days and the sun at such a low point in the sky, the light that provides accent and focus to the appearance of a yard and house in spring and summer is temporarily unavailable.

“One is simply windblown bags, wrappers and leaves,” he said. “You can sweep your sidewalk every day, but if the wind blows right before an appointment, the buyer doesn’t know that.”

Think mulch, agents say. Fresh dark mulch adorning even barren landscapes gives them a warmer look.

“Will you get the money back on your investment? Not necessarily, but you are making your house more appealing to buyers,” said Buffum. “It gives buyers the impression that you care.”

Posted via email from juliewilliamson's posterous

Although Slowly, the Real Estate Cycle Is Turning

2011-03-08T12:21:00.001-08:00

Housing recovery may seem like a mirage in the desert of record foreclosures and steep unemployment, but history indicates that a more balanced market is in our future.

Real estate has always been and always will be cyclical. Recent numbers—namely gains in existing- and new-home sales, increasing activity among investors, upticks in housing starts and ongoing efforts to streamline short sales—offer a much-needed reminder that this downturn, too, shall pass.

The improvements we’re seeing might not be dramatic or even permanent just yet, but any step in the right direction is an important one toward restoring confidence among consumers and industry experts.

What’s Ahead
In the near term, 2011 will be better than 2010, but only slightly. In the years beyond, as new phases of the real estate cycle approach, we’ll see healthier trends rather than a return to the abnormal and artificial boom times of the early to mid-2000s.

The market ahead will be driven by hopeful buyers who are regaining their financial footing and building their savings: a generational wave of consumers just reaching their prime home-buying years; immigrants who’ve come to the United States eager to realize their American dream; and investors focusing on long-term wealth rather than short-term gains.

As the damage caused by defaults and foreclosures subsides, more and more homeowners will be managing responsible mortgage terms and affordable payments, and once again be selling homes with equity.

Start Fresh
For real estate professionals, it’s critical to be preparing and reaching out now to buyers and sellers in all situations, and positioning yourself to provide the most comprehensive and expert service you can. Don’t shy away from starting a new, better cycle in your career, with more coaching, new specialties and a renewed purpose.

If we all continue looking ahead, our businesses will be leaner and we’ll be wiser with the understanding that success doesn’t fall into our laps. It takes dedication, and sometimes sacrifices, to achieve goals in real estate—for professionals and consumers.

Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC. For more information, please visit www.remax.com.

Posted via email from juliewilliamson's posterous