Pros and Cons of Condo Living

As purse strings tighten across the nation, and aging boomers enter retirement, many homeowners are making the decision to downsize. One popular choice among consumers is condominiums.

Here are some pros and cons of condo living to consider before you make a move.

Pro

1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.

2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.

3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!

4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.

5. Safety: Many condos offer gated parking, security guards, and even doormen.

Con

1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.

2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!

3. Monthly Association Fees: Nearly all condo units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.

4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.

5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.

Be sure to take these elements into consideration when deciding whether a condo is the home choice for you.


Written by Carla Hill
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Make Moving Fun: 10 Tips for Families

Are you getting ready for a big move? It can be one of life's most stressful events. For children this effect is amplified. It can be intimidating, confusing, and even scary.

Here are 10 things you can do to make moving fun for the family.

1. Movie night: Watching one of your family's favorite movies can make your new house feel familiar. Order pizza and have root beer floats! Forget about the day's stresses and enjoy each other's company, along with a meal that is easy to clean up.

2. Indoor camping: Turn a negative into a positive. When beds are still packed, camp out on your living room floor. This can be a great adventure for the kids. Plus, sleeping in the same space can be reassuring to young children.

3. New family favs: Most families have a favorite restaurant, park, or place to hang out. Search out your new favorites in your new neighborhood. You may not be able to have the exact same hamburger or shake, but maybe you'll find something that fits your family even better!

4. Positive attitude: Being upbeat about the move and changes will put your children at ease. "The new park has such fun equipment!" "The neighbors are so nice!" Your attitude has a big effect on your kids' state of mind.

5. Routines: Bedtime, mealtimes, playtimes, and favorite things are what keep the wheels on most days. Moving can temporarily disrupt these beneficial habits. Do your best to keep routines throughout a move. Pack favorite snacks, toys, and security objects in your overnight suitcase so that they're ready for use as soon as you arrive.

6. Pet Project: Most rooms need personalizing. Let your child have a hand in this! Their age will dictate the level of their participation. Younger children could help pick a favorite accent color or a few new accessories. Older children could pick design styles, new bedding, and even paint color. Their involvement will help them feel ownership of their new space.

7. Exploration: Your new neighborhood has so much to offer! The best way to experience it is on foot. Take a walk with the whole family. This also gets your kids acquainted with where they are and where your house is in case they are out by themselves and get lost.

8. Happy Travels: Long road trips mean it's time to pack lots of games, dvds, and snacks. Nothing is worse than a bored or hungry kid on a road trip! Bring blankets and pillows for nap time as well!

9. Open Communication: Your children should be given the opportunity to voice their fears and frustrations. Be sure to sit down with each child individually and talk about the move to get a feel for what it means to them.

10. Acceptance: Even the most planned of moves will be stressful. Moving is a disruption of our daily lives, and we humans are very routined beings. It will serve you well to simply accept that challenges will arise, but know that you will get through them. What a great life lesson to pass on to your kids.

Moving doesn't have to be scary time for kids. Use positive attitudes and a fun-loving spirit to turn this experience into the adventure that it is.


Written by Carla Hill
June 22, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Make Moving Fun: 10 Tips for Families

Are you getting ready for a big move? It can be one of life's most stressful events. For children this effect is amplified. It can be intimidating, confusing, and even scary.

Here are 10 things you can do to make moving fun for the family.

1. Movie night: Watching one of your family's favorite movies can make your new house feel familiar. Order pizza and have root beer floats! Forget about the day's stresses and enjoy each other's company, along with a meal that is easy to clean up.

2. Indoor camping: Turn a negative into a positive. When beds are still packed, camp out on your living room floor. This can be a great adventure for the kids. Plus, sleeping in the same space can be reassuring to young children.

3. New family favs: Most families have a favorite restaurant, park, or place to hang out. Search out your new favorites in your new neighborhood. You may not be able to have the exact same hamburger or shake, but maybe you'll find something that fits your family even better!

4. Positive attitude: Being upbeat about the move and changes will put your children at ease. "The new park has such fun equipment!" "The neighbors are so nice!" Your attitude has a big effect on your kids' state of mind.

5. Routines: Bedtime, mealtimes, playtimes, and favorite things are what keep the wheels on most days. Moving can temporarily disrupt these beneficial habits. Do your best to keep routines throughout a move. Pack favorite snacks, toys, and security objects in your overnight suitcase so that they're ready for use as soon as you arrive.

6. Pet Project: Most rooms need personalizing. Let your child have a hand in this! Their age will dictate the level of their participation. Younger children could help pick a favorite accent color or a few new accessories. Older children could pick design styles, new bedding, and even paint color. Their involvement will help them feel ownership of their new space.

7. Exploration: Your new neighborhood has so much to offer! The best way to experience it is on foot. Take a walk with the whole family. This also gets your kids acquainted with where they are and where your house is in case they are out by themselves and get lost.

8. Happy Travels: Long road trips mean it's time to pack lots of games, dvds, and snacks. Nothing is worse than a bored or hungry kid on a road trip! Bring blankets and pillows for nap time as well!

9. Open Communication: Your children should be given the opportunity to voice their fears and frustrations. Be sure to sit down with each child individually and talk about the move to get a feel for what it means to them.

10. Acceptance: Even the most planned of moves will be stressful. Moving is a disruption of our daily lives, and we humans are very routined beings. It will serve you well to simply accept that challenges will arise, but know that you will get through them. What a great life lesson to pass on to your kids.

Moving doesn't have to be scary time for kids. Use positive attitudes and a fun-loving spirit to turn this experience into the adventure that it is.


Written by Carla Hill
June 22, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Top Cities Where Homes Are Selling Fast

We have all heard the old adage that real estate is about location, location, location. So, not surprisingly, the city you’re located in weighs heavily when it comes to selling your home fast.

According to Realtor.com, 11 cities can tout the fastest selling time on the market. Despite all of its financial troubles, California can tout the fastest selling time. The state has the highest number of cities “where homes tended to spend the shortest amount of time on the market last month,” reported Realtor.com. This was based on the March housing data from the same source.

The cities in California with the least amount of time on the market before sale are: Oakland (50 median days / median list price $319) and San Francisco (63 median days / median list price $639,000).

In Colorado, Denver comes in next (66 median days on the market / median list price $259,900).

Jumping over to Iowa City, Iowa (66 median days / median list price $187,500). Heading back to the coast, Los Angles-Long Beach, California bumps the time on market up just a bit (70 median days / median list price $345,000). Still in California, Stockton-Lodi area comes in with the same amount of days on market as LA-Long Beach but with a lower list price (70 median days / median list price $175,000). Bakersfield, CA drops the price even lower (70 median days / median list price $141,500). But San Jose, California shoots the list price up significantly and barely increases the time on market (71 median days / $470,000 median list price).

Anchorage, Alaska (median list price $279,975); Fresno, California (median list price $170,000); and Tulsa, Oklahoma (median list price $147,900) all have 71 median days on the market.

There were 146 markets reviewed for the housing data report. According to Realtor.com, “Nationally, the median for homes for days on the market was 160 in March, which is an increase of 40 percent in a year.”

But for those who are selling their homes outside of these markets, the experience can be quite different. Some homeowners are feeling the pinch as their homes sit on the market for long periods of time.

This is in part due to the ongoing battle: lenders holding homes in foreclosure affects home sales in those areas. The New York Times is reporting that the nation’s biggest banks and mortgage lenders are sitting on loads of properties.

RealtyTrac, a provider of real estate data, reported that the number (872,000) of foreclosures owned by the banks/lenders is nearly twice the amount as when the financial crisis started a few years ago. And this is only the beginning; several million more foreclosures are expected over the next few years.

Economists expect that it will take about three years for lenders to sell the properties already in their possession. It’s this groundswell of foreclosures that is creating a vicious cycle–the more foreclosures, the more the prices are depressed, which leads to more distressed sales.

Before you think this is just bad news, there is some hope coming from lenders. Some lenders are working with distressed sellers more now than ever. They are realizing that sidestepping the foreclosure process is better for all, even if the homes are sold for a loss. In some areas, according to the New York Times, that has sped up the pace of sales and “even caused prices to slowly rise in the last two months ... .”

Yet another silver lining, at least for lenders, “is that the number of new foreclosures and recent borrowers falling behind on their payments by three months or longer is shrinking,” according to the New York Times.

The hope is that those homeowners can continue to manage through these difficult times.


Written by Phoebe Chongchua
May 27, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Quick Homeowner Updates

It happens to all homeowners. Rooms that once looked fresh and contemporary have aged themselves into drabness.

For some it's an excuse to redecorate. For others it's a chore. Either way homeownership is an ever-evolving process. As one project ends, another peaks its head around the corner.

To bring your rooms current, as well as to update worn and disheveled items, consider these five room freshening tips.

1. Paint: Paint is number one on the list because it is relatively cheap and easy to do yourself. Getting a professional finish is simple, thanks to the myriad of products now on the market for do-it-yourselfers. From tape to edgers to color changing paint, you're sure to get a quality finished product. "In" colors change every few years, so be sure to do some homework on what hues are happening.

While you're at it, research zero-voc (volatile organic compound) paint before starting your project. Traditional paint leaches fumes into your home for years. Zero-voc paint, however, exposes you to fewer odors during the painting process and fewer risky fumes in the years to come. This is well worth the effort of searching out zero-voc. Olympic brand paint offers their full line of colors in zero-voc. Plus, the cost difference per gallon is minimal.

Paint does wonders for hiding dirt, wear, and tear. Bring your home into the new decade with a fresh coat!

2. Trim: The current trend is for trim to be white instead of natural wood. It is contemporary and clean. If your trimwork is in good repair, simply puttying holes, sanding scuffs, and painting can update the look. Dated trim that is too thin for your large rooms can be replaced with new baseboards. Amateur handyman can tackle this task with table and coping saws. Trim is all about getting the angle cut correctly. Already have current looking trim? Upgrade your room with crown molding. These beauties can be real show-stoppers!

3. Cabinet Hardware: From oil-rubbed bronze to beautiful vintage pieces, old is in. Hardware can easily be added to any existing cabinetry or changed to bring a new feel to a tired room. Shop in your local home improvement stores, online, and at local auctions to find the pieces that speak to you.

4. Decorative Accents: Curtains are the frame to any well-designed room. Choose colors and patterns that fit the scale of your room. Heavy curtains made from chenille or jacquard work best in large rooms with tall ceilings. Lighter weight fabrics, such as silk and chiffon, are great choices for small or airy rooms. Decorative pillows and throws are also an inexpensive way to change the accents of your room. Have a teal room but want to go contemporary? Bright is in. Don't be afraid to play with color!

5. Flooring: While flooring is not a simple fix and may require the help of a professional, it can make all the difference in a dated room. Scratched and worn wood floors should be sanded and refinished to show the natural beauty of the wood that lies beneath. Laminate wood flooring is a cheap and easy solution for budget conscious homeowners who want a clean and modern update. It can be a wonderful solution for worn out carpet.

If your rooms are looking tired, be sure to wake them up with a few new colors, paints, or accents!


Written by Carla Hill
June 16, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Landscape Appeal Helps Sell Homes

If you're like many sellers, listing your home for sale creates a challenge to keep the home show-ready at all times. That can be difficult enough.

Consider this notion, though. No matter how nice the inside is, if the outside isn't inviting, you're likely to lose prospective buyers before they ever set foot in your home. That's because in real estate, buyers often do "judge a book by its cover".

Take a good look at your home from the outside. Step across the street and decide if you think buyers would want to see more based on your home's "cover".

If you answered "yes," then your job is easy. Make sure the inside won't be disappointing to those same buyers. If your answer was "no," then you have some work to do. While many sellers may think that only interior pictures of their home posted on the Multiple Listing Service are what buyers really care about, there's more to it.

The outside can be a huge roadblock for buyers. If potential buyers pass by your home while cruising through a neighborhood and see your for sale sign, but also see a broken down gate, leaky sprinklers, cracked driveways, a lousy exterior paint job, and kids' old toys strewn across a brown lawn, they'll keep on cruising to the next home on the market.

Chances are you're busy getting the kids ready for the move, squaring away all the details for your new housing arrangement, trying to work, care for family, and still have some sort of personal time. That's a lot to handle. However, it's no excuse for not making your landscape appealing, especially when you think of the consequences. That could be not selling your home at all.

Here's a quick and tidy plan to help give your home a beautiful "cover". Remember, buyers are well-read. They will judge a home by it's exterior. And, if they're really interested in your home but the outside is a mess, they'll make sure that becomes a negotiating tool in the home-buying process.

Here are a few tips on the big exterior influencers.

Do not have unkempt lawn. It shows a lack of care for the home. If the lawn is beyond repair, pull it up and try drought-resistant landscaping. If there's a chance to revive it, a fresh-cut lawn is one way to showcase the appreciation the homeowner has had for his property. Also, note this tip from HGTV. Don't cut your lawn too short. You want to remove only a third of the blade of grass. Any lower than that "and you start stunting the grass," according to HGTV.

Clear the clutter from the porch. Sometimes the porch becomes an extension of the garage or tool shed. Kids' bicycles, toys, and people's shoes accumulates there. When buyers come to view the home, they often feel like they are intruding instead of viewing a property that they might be purchasing.

Pull the weeds and ditch the empty planter boxes. A lot of times homeowners will leave an empty planter box, intending to get some flowers for it, but somehow that doesn't happen.

Paint and fix any hardware that looks extremely worn. Nothing beats a fresh coat of paint. Yes, it's work and it costs money. That's exactly what buyers will think, which is good news for you! They'll think, "This homeowner put some TLC into this home." When you're selling your home, fresh paint is always recommended for the inside. If the outside needs it, you'll be doing yourself a huge favor and increase the chance of a higher sales price.


Written by Phoebe Chongchua
June 17, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Summertime Selling Tips

Summertime can be a great season to sell your house. Why? During these hot months, your landscaping and outdoor spaces come alive. Today's buyers are looking for extended living areas and love usable outdoor space.

According to HGTV, outdoor spaces can bring in big bucks. Jon Seppala, president of Action Builders, notes, "Backyards and outdoor patios have to be much more substantial than in the past. Built-in grills, outdoor fireplaces, gazebos — people are looking for these features. We've had people who have fallen in love with the house and have decided to buy before they walked in the front door."

The National Association of Home Builders (NAHB) has also identified a trend, noting during a recent panel that young homebuyers (Gen Xers) 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."

Here are some tips to take advantage of Summer selling.

First, keep your home cool. Have your AC turned up to a comfortable level during showings and open houses. If you live in a region where you don't have or need AC, be sure that you use fans or open windows for breezes to create a nice atmosphere. The last thing you need is a prospective buyer distracted by sweat or humidity. You want them focused on your wonderful home!

Heat also has a way of bringing out the worst of smells in our home. To hold these deal breakers at bay, have your carpets cleaned when you list your home for sale. Next, roll up your sleeves and be sure you clean your home before any showing. Bathrooms, laundry rooms, and kitchen are notoriously stinky. Focus your attention on these!

When your home is listed for sale, it's your responsibility as the seller to keep your yard, landscaping, and pool maintained. Overgrown trees, shrubs, and lawns not only seriously depreciate curb appeal, they can also turn a buyer off.

If you are unable to stay on top of this task each week, hire local workers to keep your yard looking in top shape. This expense will come back to you when you make the sale.

Landscaping is expensive and buyers know this. Why not showcase one of your most valuable assets? Trim existing trees to their best advantage. Have gardens, paths, benches, and pool ready for enjoying. Buyers know that a fully landscaped yard will save them time and money. Plus, it's already ready to enjoy.

As a courtesy to prospective buyers, you may also consider compiling a list of locally recommend handy men, gardeners, and pool maintenance companies.

Finally, staging patios and porches is important. From family gatherings to al fresco meals, these hot spots get lots of use.

Start your staging with a thorough cleaning. Powerwashing decks, patios, and furniture can make dirty items look new again. For furniture that needs a bit more TLC, apply a fresh coat of paint. Next, stage for an "event." Replace wornout cushions and invest in simple outdoor accessories. A selective arrangement of candles, glasses, and even a nice table setting can be the icing on the staging cake.

The bottom line is that caring for the outdoor living spaces of your home can make or break a sale during the Summer. Take full advantage of all your home has to offer.


Written by Carla Hill
June 15, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Why Own My Home?

A soft real estate market that is ripe with all the conditions that should entice people to purchase a home still has some renters asking, "Why own my own home?"

Low interest rates, lower home prices and an improving job market still have some buyers sitting on the fence fearful of an uncertain real estate market. Real estate agents and even sellers are finding that prospective buyers (current renters) may need a little more "emotional" attention in these market conditions. They may need a little more explanation to ensure that they understand the benefits of purchasing your home rather than renting another.

While deciding to own a home or rent one is very personal, many tend to let fear of the unknown be the driving force in making their decision and that can later create an unhappy decision.

Here are five top reasons to at least consider owning your own home.

No more landlords: This may be a highly influential factor depending on a potential buyer's experiences. Many renters have poured a ton of money into a home that they're living in to keep it at the standard of living they enjoy, only to find that their landlord is soon planning to sell the home. Their hard-earned cash and money invested into their rented home will then only benefit the seller.

Making a home your style: This is much more difficult to do in a rental. Yes, as I just mentioned, you can make some modifications, but many things that can be done to a home you own can't be done to one you're renting. Taking into consideration Homeowner's Associations or planned community development restrictions, owning still provides more control and flexibility over renting.

Weighing the costs of homeownership: Of course, with homeownership you won't be calling the landlord to come fix your toilet or dishwasher. So, having a financial reserve is important to carry you through the months when you run into unexpected troubles. Websites such as GinnieMae.gov offer price charts that help you compare how much you'll save by buying or renting. It's a helpful tool that allows you to analyze factors such as how much tax savings you're likely to receive, how much possibly equity you'll gain, and how much you're rent may increase.

Long-term plans tilt the scale toward owning: In a recent Tampa Bay article, Walter Molony of the National Association of Realtors said, "For people with long-term plans, the rent vs. buy equation is tilting heavily toward buying because housing affordability is at record highs dating back to 1970," he explains. "Homes are undervalued in many areas—selling for less than the cost of replacement construction—and rents are rising at a faster pace. Many people are considering ownership now as a hedge against inflation."

Low interest rates and affordable homes will not last forever: If you're not ready to buy or simply can't afford to own a home, even the historically low interest rates and exceedingly affordable, home prices might not move you to take the leap into homeownership. However, understanding that these conditions won't last forever is important. Sometimes when conditions persist, we tend to think they'll always be this way.

Distressed sales will begin falling in 2013 and that would then cause home prices to creep upward, predicts Moody's Analytics. With little activity on the homebuilding front, and still a heavy supply, it's not expected to increase much more. Also, the number of new households each year is rising, which is expected to help alleviate the oversupply in the coming years.


Written by Phoebe Chongchua
June 10, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

NAR: Home Hunting without Fear

As any daredevil, extreme sports addict or adrenaline junkie knows, well-grounded preparation for the specific task at hand is what takes the fear out of trying.

The sometimes risky sport of home buying is no different.

Those who've suffered the agony of defeat in what's likely the most dangerous consumer game, learned the hard way that sheer fearlessness isn't enough to become and remain a homeowner -- through good times and bad.

With the rules of the housing game changed forever, preparing to just squeak by thehome buying ordeal isn't enough to achieve a decisive and lasting victory.

The idea isn't just to buy a home. The goal is to keep your own roof over your head.

Preparation is key, according to the National Association of Realtors.

From NAR, here's how to get ready to be and remain a homeowner.

Create a wish list. Write down housing wants and needs. Include all the physical characteristics you want or need. Include style, size, layout and room configuration. Look at the number of bedrooms and bathrooms, and the basic amenities you must have. Include critical features such as location and services and a home's proximity to good schools or public transportation lines.

Browse for housing. Realtor.com and other Web sites offer home valuation features and neighborhood data on trends in local markets. Use features to determine how a listing compares with nearby, comparable properties in terms of value, actual sales prices, home features, neighborhood characteristics, and more.

Work with an expert. Finding a professional real estate agent who will represent your best interests can make the difference in location, negotiating the best offer, and closing the home of your dreams. Look for a full time real estate agent, who has uploaded telling photos and videos of their listings and look for agents with good Web sites to market your listing.

Get the complete picture before you visit. You can't know everything about a community from an online listing. Schools, crime, and proximity to shopping and work all impact property values. NAR says talk to a Realtor and go to Realtor.com to explore communities.

Make sure the property details are reliable. Buyers need know when a listing has experienced a price change. Look for Web sites like Realtor.com that updates listings frequently, including price changes. Fresh and reliable information is critical. Realtor.com time stamps listings to help buyers make better informed decisions. Get email alerts and stay on top of changes so you can be first to act.


Written by Broderick Perkins
July 16, 2009

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Old Ben Was Right

One of the earliest advocates of preventive maintenance was Ben Franklin. He wisely wrote: "A little neglect may breed mischief...for want of a nail, the shoe was lost; for want of a shoe the horse was lost..." Old Ben nailed what happens when relatively small repairs. Little things have major impact on homeowner association assets. For example, a small lack of flashing can lead to major dryrot, structural problems and major expense. Ka-CHING!

Preventive maintenance is critical to managing an HOA's assets. When executed properly, it extends the useful life of buildings, grounds and equipment. Stretching out useful lives means stretching member contributions and reducing downtime from component failures. Preventive maintenance involves fixing something before it breaks. Here are five objectives for a every preventive maintenance program:

1. To perform maintenance that keeps the property safe and functioning.

2. To promote the most effective and efficient use of resources.

3. To estimate the human resources needed for proper operation and maintenance.

4. To determine long range funding requirements and project scheduling.

5. To evaluate the effectiveness of the maintenance effort.

Preventive maintenance programs are common with elevators, HVAC and pool equipment, usually because there is a service contract. Other components, like paving, roofing, decks and paint require monitoring and planning.

Functional obsolescence is also a legitimate concern. Lack of parts, improvements in efficiency, computerization and changes in fire and building code can make equipment obsolete even though it's working just as designed. This is particularly applicable to elevators, boilers, pumps and HVAC. Buying new equipment is often a great investment in reduced operating costs. For example, by replacing all common area lighting with compact fluorescent bulbs, the light level will be significantly increased, the energy consumption reduced by 70% and the useful life of each bulb extended by 10-15 times thereby saving an enormous amount of labor costs. Within 12-18 months, the cost will be recouped in energy savings and then, it's money in the bank.

So, what is the best way to address major preventive maintenance? Two words: Reserve Study. A Reserve Study identifies all the significant components that the HOA is responsible to maintain, assesses current condition, cost of repair and replacement and charts a 30 year maintenance plan to keep the components in their best condition.

The Reserve Study can provide for cyclical preventive maintenance so components achieve their optimal lives. For example If cracks, minor repairs and sealcoating are performed at least every five years on asphalt paving, major repairs will not be required for 20-30 years. If this relatively inexpensive preventive maintenance is not done, significant and costly major repairs will be required much sooner. Pay a little to save a lot.

A Reserve Study will also guide the board how to systematically accumulate funds without special assessments. A full funding plan will have all owners contribute a fair share relating to the benefits received. A fair contribution plan means no one will get a better deal than anyone else and the money will be there when needed. The Reserve Study is absolutely the best way to prepare for a future which will certainly come to pass.

Remember Old Ben's nail analogy. Little things have a way of causing great things to happen. But rather than fail in the little things, plan for them and hit this nail right on the head.

For more innovative homeowner association management strategies, seeRegenesis.net.


Written by Richard Thompson
June 1, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Fixed Mortgage Rates Continue Downward Slide

MCLEAN, Va., June 2, 2011 -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which showed fixed-rate mortgages declining for the seventh consecutive week to new lows amid continuing weak economic and housing data. The 30-year fixed averaged 4.55 percent and the 15-year averaged 3.74 percent.

30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average 0.6 point for the week ending June 2, 2011, down from last week when it averaged 4.60 percent. Last year at this time, the 30-year FRM averaged 4.79 percent.

15-year FRM this week averaged 3.74 percent with an average 0.7 point, down from last week when it averaged 3.78 percent. A year ago at this time, the 15-year FRM averaged 4.20 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, the same from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.94 percent.

1-year Treasury-indexed ARM averaged 3.13 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 3.95 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Fixed mortgage rates followed U.S. Treasury yields lower this week amid financial market concerns that the current lull in the economy is continuing. First quarter growth in consumer spending was revised downward by half of a percentage point to 2.2 percent, according to the Bureau of Economic Activity, consumer confidence in May was weaker than the market consensus forecast, and the manufacturing industry slowed for the third straight month in May."

"The housing market is showing strain as well. The S&P/Case-Shiller® National Home Price Index fell 5.1 percent between the first quarters of 2010 and 2011, representing the largest annual decline since the third quarter of 2009. In addition, the index of pending existing home sales dropped 11.6 percent from March to April, led by the Midwest and South regions where the tornados and flooding occurred."

Published on Realty Times, June 3, 2011

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Ask the HOA Expert

Question: We have a board member who has missed the last three meetings, all of which were very important. One was to meet the HOA manager candidates, another was to select our new manager and the last was to approve our annual budget. He has come in late on numerous occasions and never reviews the agenda and related material ahead of time. He has two years left on his term. What can be done to get him off the board?

Answer: The board president needs to have a heart to heart with him. When he ran for office, he agreed to serve the interests of the HOA members. He clearly is not fulfilling his obligation. Either he now is willing or he is not. If he is, great! He can do that by attending future meetings regularly and by making informed decisions. If he is not willing, he should voluntarily step down so the board can appoint someone that is. If he refuses to step down, there is little that can be done unless an appropriate number of owners (according to the governing documents) votes to remove him. But most slackers, when properly challenged, will step down voluntarily.

Question: I have just read one of your articles that stated: "If the reserve fund Percent Funded is below 100%, implement a funding strategy to increase that level to the 100% goal as soon as possible."

From my research, reserve study specialists often recommend that reserves be 100% funded but add that the law does not require they be 100% funded. Our management company acknowledges the 100% funding recommendation, but states that it is not necessary. My question is there a "Percent Funded" that is a widely accepted as the "should be" level?

Answer: There are two compelling reasons why reserves should be 100% funded each and every year: fairness and fiduciary duty. Consider the example of a 30 year roof that costs $300,000 to replace. Fully funding the roof reserve requires $10,000 per year ($300,000 ÷ 30 Years). In other words, as 1/30th of the roof is used up, 1/30th of its replacement cost should be set aside in reserves. If less than 1/30th of the cost is reserved each year, the shortage will have to made up by future owners.

It is normal for a certain percentage of ownerships to turnover each year. So, the owner roster in Year 1 will likely be different in Year 5, Year 15 and Year 30. The farther in the future a repair event takes place, the more likely different owners in the future will be asked to pay for what prior owners failed to pay. Those future owners are simply not financially responsible for paying for roof reserves prior to their ownership.

Secondly, the board has a fiduciary duty to protect the interests of all owners, current and future. Under funding reserves now is contrary to the interests of future owners. If the board transfers current owner obligations to future owners, it has failed its fiduciary duty.

For more innovative homeowner association management strategies, seeRegenesis.net.


Written by Richard Thompson
May 25, 2011

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Mortgage Rates Today: Low Mortgage Rates Remain in Holding Pattern

For yet another week, low mortgage rates have remained in a holding pattern that has become the trend this year. FreeRateUpdate.com's daily survey of wholesale and direct lenders show that mortgage rates have had little to no movement over the past week. The only fluctuation occurred with jumbo 30 year fixed mortgage rates which jumped back and forth .125% before settling at 5.000% on Wednesday. Current conforming 30 year fixed mortgage rates are at 4.375%, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. These are the lowest conforming mortgage rates available with 0.7 to 1% origination fee to well qualified borrowers who must also be able to produce the required documentation necessary for approval by lenders.

FHA mortgage rates have also remained steady this week. Borrowers with little available cash turn to FHA which has a down payment requirement as low as 3.5%. FHA mortgage loans can also be combined with gifts and other grant programs making home ownership more affordable. Current FHA 30 year fixed mortgage rates are at 4.250%, FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%. FHA mortgage loans have gained in popularity even though FHA closing costs (APR) tend to be higher due to various FHA fees and the upfront mortgage insurance premium.

The conforming loan limit is still $417,000 to $729,750, depending on location. Anything above these limits requires a jumbo mortgage loan. Current jumbo 30 year fixed mortgage rates are at 5.000% after rising to 5.125% earlier last week. Jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable mortgage rates are at 3.625%. Borrowers must have excellent credit to obtain these low jumbo mortgage rates with 0.7 to 1% origination point.

MBS prices (mortgage backed securities) usually fluctuate daily along with other markets. Mortgage rates move in the opposite direction of MBS price changes. This past week data showed that new home sales and median home price rose as well as mortgage applications which is obviously a result of consistent low mortgage rates. Durable goods orders dropped, household purchase rose less than expected and there was an increase in jobless claims for the week ending May 21st. Most investor moves have been in reaction to the European debt crisis and the fluctuating price of crude. All of this further indicates a weak economic recovery, but consumers are jumping on low mortgage rates to save some money while they are still around.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

Written by Ed Ferrara
June 1, 2011

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