Tools for New Homeowners

Living in a condo or a rental unit comes with one definite perk. You don't have to make your own repairs!

Now that you have moved into your new home, it's time to put on a new hat, that of "handyman." For the big jobs, like roofing and rewiring, you'll more than likely still rely on a professional. And unless you are truly versed in those specialties, that is what we'd recommend!

But there will be many small jobs that come up which you will be able to fix on your own. Really! Not only will it save you money, but you'll experience a nice swelling of pride that you made whatever it was, work again. To complete those jobs, you'll need tools.

So, what tools will you need as a new homeowner? Here is a list of suggestions from our experts:

1. A toolbox. There is nothing more tiring than having to search for the tool you need. Is the screwdriver in that box under the sink or in the garage? Where do we keep the extra screws? Keep everything together and you'll never waste time hunting for the right tool.

2. Hammer. It seems basic enough, and it is. If for nothing else, you'll need it to hang all your artwork and pictures.

3. Level. From hanging pictures to framing a garage, a level is a must for any handyman.

4. Screw Driver. You'll need more than one! Be sure you have multiple sizes of both phillips-head and flat-blades.

5. Plyers. Have you ever tried to disconnect a fitting on a pipe? You need plyers.

6. Hand Saw. Many handymen prefer power tools, but for those remote spots with no electrical access, you can always count on a hand saw.

7. Tape Measure. How long does that new counter-top need to be? Do we have room for the couch to fit through the front door? Exactly. Use a tape measure.

8. Wire cutters. For what else? To cut wires!

9. Cordless, Reversible Drill and Bits. It's perfect for the ladies that need a little extra oomph to finish a project.

10. Utility Knife. This is great for cutting exact edges.

11. Vice/clamps. Connect a vice to your workbench and use it to stabilize items you are cutting.

This is just a starter kit. There is a tool for practically every need, so over time, your tool box will grow considerably!

Rely on the tool experts at your local home improvement stores, as well. They have been trained to help you find your way. If you are unsure what exact tool you need or how to use it, don't be afraid to ask.

Becoming your own handyman is a learning process, so don't be too hard on yourself. There will be a lot of trial and error. That's half the fun. Enjoy your new home!


Written by Carla Hill
Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
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Benefits of Homeownership

Homeownership can bring with it many blessings. Yet, the idea of caring for and maintaining a home, as well as affording a mortgage can seem daunting, but let's review some of the many reasons that homeownership can be beneficial.

The most obvious benefit is building wealth. The U.S. Department of Housing and Urban Development (HUD) notes that "home equity is the largest single source of household wealth for most Americans."

What is home equity? Home equity is the difference between the home's fair market value and the outstanding balance of all liens on the property. Let's say you have a balance of $100,000 left on your home's mortgage, but the property appraises for $150,000. You now have $50,000 worth of home equity.

And let's not forget about appreciation. While there is no set year-to-year rate that is considered normal, reports indicate that you can expect around a 6.5 percent average value increase in your home each year.

The National Homeownership Strategy cites that “through homeownership, a family ... invests in an asset that can grow in value and ... generate financial security." This is what sets homeowners apart from renters.

Other wealth builders to consider are tax breaks and tax credits, such as the deductibility of property taxes and mortgage interest and the exclusion of capital gains, and the $8,000 first time home buyer and $6,500 home buyer tax credits.

But beyond the numbers and the long term investment benefits, studies have shown that owning a home can actually make you healthier, and make your children happier.

Homeownership allows people to have greater control and inspires responsibility over their living environment. It helps stabilize and strengthen communities. And it helps generate jobs and stimulate the economy (National Homeownership Strategy)

The U.S. Department of Housing and Urban Development (HUD) reports: “Homeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes homeowners pay, and from stable neighborhoods homeowners create”

And according to NAR’s Social Benefits of Homeownership and Stable Housing, homeownership brings with it:

• Higher educational performance and better behavior of children

• Lower community crime rates

• Lessened welfare dependency among households

• More household participation in civic affairs

• Better household health

These wonderful benefits only graze the surface of the world of benefits that awaits you in homeownership. Be sure to talk to your real estate agent about what other good things come your way when you buy a home.


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

Mortgage Rates Continue Trend of Record-Breaking Lows

In Freddie Mac's results of its Primary Mortgage Market Survey®, it showed mortgage rates easing to new all-time record lows for all products covered in the survey helping to keep homebuyer affordability high. The average for the 30-year fixed mortgage rate has been below 4.00 percent for six consecutive weeks.

30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.7 point for the week ending January 12, 2012, down from last week when it averaged 3.91 percent. Last year at this time, the 30-year FRM averaged 4.71 percent.

15-year FRM this week averaged 3.16 percent with an average 0.8 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.7 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.72 percent.

1-year Treasury-indexed ARM averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.23 percent.

According to Frank Nothaft


January 13, 2012

Published by Realty Times

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Top 10 Tips for Sellers

Today’s sellers may face challenging conditions in many markets, but that doesn’t mean choosing to sell is a bad idea. There are many reasons to sell and most are good ones.

Here are ten tips to get you on your way to getting your home sold.

1. Hire a Professional. This is no time to be navigating the rough waters of the real estate market on your own. You want someone who can help you accurately price your home, bring in potential buyers, handle contracts, and market your home to the masses.

2. Fully Disclose. Are you selling because your current home needs more work than you can handle? Are there infestation problems you’d rather not talk about? You must disclose all of these facts to potential buyers. If they find out after the fact that you withheld information you could be in a whole heap of trouble.

3. Be Realistic about Pricing. It is much wiser to price a home correctly from the start of the selling process than to have an overpriced home sit on the market for months only to have to do a price reduction. You get much more traffic on a well-priced home and newly listed home.

4 . Detach Emotions. Sellers may have the inclination towards adding sentimental value to a home. They see the memories and work they’ve put into a property and think every buyer should recognize this. This kind of attachment will make it harder to make smart and timely decisions about offers.

5. Be Involved. Yes, you’ve hired a professional to handle the legwork and legality of your sale, but you’ll rest much easier at night if you understand the process and all that is going on. Be sure to have regular conversations with your agent.

6. Stage your Home. Staging is a perfect way to help buyers see the true potential of each room. This may mean, however, that you have to tone down your own style and pack away any clutter or extraneous decor.

7. Don’t Hover. Sellers can put a lot of heart and soul into staging and getting a home ready for the market. They might want to hang out during an open house. Resist the urge. This makes it very uncomfortable for buyers. So, during showings of any kind, be sure to make yourself scarce.

8. The Next Step. Are you going to be buying another home? Have you decided to rent? Under normal sales, you’ll have plenty of time to make arrangements, but you also might get a buyer who needs to move in right away. Be ready to take your next step.

9. Be Flexible. It’s no secret that today’s market can be challenging for many sellers. Some markets have seen sharp price declines and shallow buyer pools. This means you need to be flexible on both price and terms. Don’t compromise on your bottom line, but understand that you must be willing to negotiate.

10. Positivity. Focus on the good in today’s market. Pull your attention to the feedback you get from your agent and prospective buyers! Most of all, don’t get discouraged. You will find a buyer!

Selling in today’s market can be a tough, but rewarding. So, whether you’re selling to move up, downsize, avoid foreclosure, or are following a job, be sure to keep these ten tips in mind for smooth sailing.

Published by Realty Times

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30-year Fixed-rate Mortgage Matches All-time Record Low

In Freddie Mac's results of its Primary Mortgage Market Survey® the average fixed mortgage rates starting the year at or near their all-time lows. The 30-year fixed averaged 3.91 percent matching its all-time record low amid recent data showing signs of improvement in the housing market and manufacturing industry. This marks the fifth consecutive week the 30-year fixed has averaged below 4.00 percent.

30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.8 point for the week ending January 5, 2012, down from last week when it averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.77 percent.

15-year FRM this week averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.13 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.7 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.75 percent.

1-year Treasury-indexed ARM averaged 2.80 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 3.24 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement. Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010. In addition, construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase. Similarly, manufacturing expanded in December at the fastest pace in six months."


January 6, 2012 Published by Realty Times

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Mortgage Tax Deduction

For months now, experts have been debating the fate of the home mortgage interest deduction (MID). So why exactly are politicians targeting the MID? With a federal deficit of around $13 trillion, officials are hard-pressed to find ways to curb the growing the debt.

The deduction, a pillar of the housing industry since 1913, could be on the chopping block. The Obama administration's deficit committee is currently reviewing it, along with other items, in order to scope out new ways to help reduce our budget shortfall.

The co-chairmen of the White House's bipartisan deficit-reduction commission said Tuesday they would propose a significant paring of popular middle-class tax breaks, including the mortgage-interest deduction, and push for an increase in the Social Security retirement age.

Some say there are better options available than keeping the MID, following suit of many European nations who have in recent years nixed the deductions themselves, but the National Association of REALTORS® (NAR) disagrees. They feel that this deduction is a strong incentive for homeownership. For nearly 100 years homeowners have been allowed to deduct the interest paid on mortgages for their primary residences, second homes and most home equity lines of credit.

"The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them."

NAR President Ron Phipps, states, "Recent progress has been made in bringing stability to the housing market and any changes to the MID now or in the future could critically erode home prices and the value of homes by as much as 15 percent, according to our research. This would negatively impact home ownership for millions of Americans, including those who own their homes outright and have no mortgage."

He continued, saying, "Any further downward pressure on home prices will hamper the economic recovery, raise foreclosures and hurt banks' abilities to lend and likely tip the economy into another recession resulting in further job losses for the country. It will effectively close the door on the American dream."

Will Washington continue to allow taxpayers who own their homes to reduce their taxable income by the interest paid on the loan? Time will tell. It is dependent on finding alternative ways to curb growing anxiety over our growing debt.


Written by Carla Hill
Published by Realty Times

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Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Pending Sales Rise

According to the latest report from the National Association of Realtors Pending Homes Sales Index, pending home sales are at the highest level in 19 months.

What has precipitated this rise? Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. "Housing affordability conditions are at a record high and there is a pent-up demand from buyers who’ve been on the sidelines, but contract failures have been running unusually high. Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage," he said.

There was a 7.3 percent jump in contract signings in November, up 5.9 percent from the year prior. The last time to market had this many signings was in April 2010 when the deadline for the first time home buyer tax credit was

"November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead," Yun added.

Regionally, the largest rise was seen in the West, which has previously struggled. It rose 14.9 percent for the Month, giving it a boost of 2.9 percent of November 2010.

The Northeast was close to double-digit gains with a solid 8.1 percent rise. It is still 0.3 percent below last year’s figures. The Midwest is doing well. It is 9.5 percent above November 2010 for pending sales and rose 3.3 percent for the month.

Finally, the South rose 4.3 percent, rising 8.7 percent above last year’s numbers.

Other factors that could have contributed to this rise are recent declines in the unemployment rate. The rate has lingered about 9.0 percent for months, but fell below this mark in recent weeks. Holiday hirings were up, but so were hirings in other sectors.

Consumer confidence peaked 10 points in November to the highest rate seen since the end of the recession and retailers boasted the best holiday sales figures in years. This could signal a return of buyers to the housing market.


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