Heat melting your budget? A few tips. Start with the obvious: Homeowners can save about 10% or more on power bills simply by turning the thermostat setting up 4 degrees, from 78 to 82, for example, according to the Lawrence Berkeley National Lab at UC Berkeley. Homeowners can figure out their family's energy savings by logging on to the Berkeley lab's Home Energy Saver website, at hes.lbl.gov. Enter your ZIP Code and other household facts, and the site will calculate the energy savings and time period it will take to achieve it. Maintaining appliances, especially heating and air units, is one of the easiest and least expensive ways to cut costs. Changing filters regularly and wrapping the ducts in R-6 insulation help. Save another 7% by sealing air-conditioner ducts to reduce leakage and 5% by adding more ceiling insulation. "Night ventilation" saves energy and dollars too. Turn off the air conditioning in the early evening, when temperatures drop. Then turn on window fans to blow out the accumulating warmer air and draw in the cooler evening air. Keep the windows open until morning, then shut them again and turn on the air. Source.
Mixed picture for housing prices. Berson thinks the Federal Reserve "is not done tightening" the ratchet on interest rates, and will move up short-term rates again in August. After that, he says, rates are likely to stabilize, bringing at least a temporary cessation to rising home mortgage rates. He expects average home price appreciation, which had been running at a double-digit annual clip nationally for the last year, to drop to 3% or below by the end of the year. (On this point Berson is more bearish than most of his housing and mortgage industry colleagues, who project average appreciation in the 4% to 6% range.) If speculative investors dump rental houses and second homes purchased during the boom years onto the market later in larger than expected numbers, Berson believes price appreciation could drop to a 1% or 1.5% annual rate — a level not seen since the recession years of the early 1990s. For sellers, it means getting acquainted with the toolbox of techniques developed during the down periods of the 1970s, '80s and '90s to move houses. For example, seller financing, where you take back a second note on concessionary terms to push the sale, take back a first note if you can afford to, or "buy down" your purchaser's interest rate to lower monthly payments. Experienced real estate brokers can fill you in on these strategies, along with their pros and cons. They can also guide you on how to price a home realistically to sell now, not five months from now. For buyers, down markets often offer exceptional opportunities to acquire real estate at prices and on terms that were unthinkable just a few years before. Again, the message is: Don't go to sleep. To the contrary, get off your duff and scour the market for properties that may never be cheaper, or even available. Heads-up real estate is, as the industry adage goes, the art of the possible. You've simply got to adapt to the changed market conditions. And probably work a little harder. Source.
'What-if' tool lets you explore the credit score consequences. The computer programs don't repair a damaged score; they allow you to tinker with tactics and devise a plan. ScoreWizard, which also automatically scans credit files for opportunities to raise credit scores, is one of a number of powerful simulators that would-be borrowers can use to test various scenarios. Another is ScoreRight, which uses common assumptions to suggest ways to increase your score. A third system, CreditXpert, lets you use its predictive capabilities to test any combination of options. Unfortunately, you can't access these or other what-if calculators directly. Rather, you must go through a mortgage broker or loan officer to use the programs, which are marketed to industry professionals as tools to help them attract and keep clients. There's nothing wrong with that. After all, a broker or loan rep offering to help borrowers reach their target credit score quickly and effectively is a sign he or she has their best interests at heart. Source.
Seven Strategies for Successful Mixed-Income Properties. Successful mixed-income apartment housing initiatives have most of the seven key ingredients:
1. A realistic operating budget and adequate financing.
2. Neighborhoods aligned with target markets (properties should be built in neighborhoods that are accustomed to racial diversity and have amenities such as grocery stores, convenient transportation, and schools within walking distance).
3. Curb appeal higher than that of the market niche. Properties should be well-maintained and indistinguishable from those that rent at 100 percent market rate.
4. Property managers who are attentive and proactive.
5. Leasing practices that attract market rate renters.
6. Marketing strategies that are continually adjusted as the market evolves.
7. Amenities and services that match those desired by the community’s target markets.
Taking care of your budget, identifying your target market, aggressively marketing your product to potential customers and making course corrections when needed, are all that any business has to do to succeed. The research shows that it can’t be any different in the affordable housing sector. Source.
New Legislation Will Increase Access to FHA Loans. The U.S. House of Representatives passed "The Expanding American Homeownership Act,” which will increase homeownership opportunities for millions of Americans by modernizing the Federal Housing Administration (FHA) and returning it to its traditional role as an important financing option in today’s housing market. Source.
Commissions Significantly Decline. Agents openly compete for local listings from potential sellers and for potential buyers on the basis of reputation, level of service and price. On a national basis, average commissions have significantly declined since 1991. There are approximately 2.6 million real estate licensees in the United States. Nearly 1.3 million of these are Realtors®. All Realtors® are members of NAR and subscribe to a strict code of ethics. There are a large number of firms competing in every market, and a growing number of largely independent contractor agents ensuring that the real estate industry remains fiercely competitive. In the most recent NAR survey of homebuyers, 77 percent reported that they used the Internet to search for homes. The report also found that of those homebuyers who use the Internet to search for a home, 93 percent of them still use a real estate agent. Recent claims that NAR is limiting competition, protecting high commissions and limiting access to the listing information on the Internet are simply not true. A close look at the real estate industry shows that it is more competitive than ever, and access to information is at an all-time high. Realtors® add value to the transaction – not because we have any unfair advantages – but simply because our members share an unparalleled dedication and love for what they do. Source.
Be Wary of Signs and Ads Offering To Pay Cash for Your Home. Rule Number One for Evaluating Too-Good-To-Be-True-Sounding Deals: Don't think about what's in it for you. Think about what's in it for the other guy. In this case, why would someone offer fistfuls of moolah to a stranger, sight unseen, for a place that could be crawling with termites, dripping with mold, or overlooking the freeway? Would it make any sense at all unless the buyer could nab the house at a huge discount and flip it for a quick profit -- or find another way to take advantage of the seller's desperation? As a rule of thumb, Mr. Myers writes, skilled foreclosure investors buy properties at savings of 20% to 50% off retail value. Some may offer a slightly better deal, but only if the seller finances the cost of needed repairs. Compare that to the 5% to 10% deduction from asking prices that real-estate agents say buyers typically seek in a balanced market (that is, one that favors neither sellers nor buyers), and you can see that wholesale investors are really only a last-ditch alternative for most homeowners. While it may be tempting to take such an offer, know that you usually have other options. Even if you're far behind on your mortgage payments, most lenders are glad to work out a repayment schedule with you -- in fact, Fannie Mae and Freddie Mac actually require their lenders to pursue one. And if you plan to sell your house, they may even throw in a little extra money to help put it in saleable shape, especially if the upgrade will bring an outdated feature up to current building codes. Then, check out comparable homes that have recently sold, take a deep breath, and set your home's price a bit below market value. Experienced real-estate brokers say that doing so signals to buyers that your house is a bargain, and may spark a bidding war, even in a down market. Source.
Sold at First Sight. This shift in market psyche means that now more than ever home sellers and their brokers must make a good first impression by enhancing that all-important “curb appeal” — the comely front porch or neat rows of impatiens or hydrangeas that beckon buyers to take a look inside. Some people are getting help from landscapers, while others are turning to professional home stagers or stylists to conjure up that extra outdoor pizazz. Landscape architects and real estate brokers and appraisers agree that the exterior appearance and landscaping not only distinguish one house from another on the market but also enhance the resale value and, in many cases, seal a deal faster. "Good landscaping could add up to 15 to 20 percent to the value,” said Nancy C. Somerville, the executive vice president of the American Society of Landscape Architects, citing a number of studies over the last few years. “Conversely, if the landscape is poor, you could expect a sale price of 8 to 10 percent below comparable homes with good landscaping." Not all outside projects have the same potential payback. One of the more recent landscaping studies, conducted by Laval University in Quebec and published four years ago in The Journal of Real Estate Research, found that landscaped patios added 12.4 percent to the market value of a house, while hedges used as fences added just 3.6 percent. And different buyers want different things. The Quebec study found that retirees generally preferred yards with plenty of trees, which have the added value of helping to reduce energy bills by blocking summer sun and winter winds. Younger adults, it said, preferred more lawn. Source.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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