Existing home sales spike 5%. Realtors group says sales of existing hones rose in February, but prices tumble fore than 15%.
Sales of existing homes unexpectedly rose in February, recovering from a sharp drop in the previous month, according to an industry report released this week.
Realtors who were best informed made sales. Were you informed?
"Information, Information, Information" is the new "Location, Location, Location."
You read that correctly… The National Association of Realtors said that existing home sales rose last month to a seasonally adjusted annual rate of 4.72 million units, up 5.1% from a rate of 4.49 million in January. February sales were down nearly 5% from year ago levels.
Economists surveyed by Briefing.com were expecting existing home sales to decline to 4.45 million.
The report said first-time buyers made up half of all purchases in February, and that sales of distressed properties accounted for about 45% of all transactions.
Sales were unexpectedly strong in the West, with activity increasing more than 30% over last year.
"February wasn't too shabby for the existing-home market," said Mike Larson, real estate analyst at Weiss Research. "The catch? The increase in sales activity is coming at the expense of pricing."
The national median existing-home price was $165,400 in February, down 15.5% from last year, when the median price was $195,800.
Prices were depressed by the large number of foreclosed properties on the market, said NAR chief economist Lawrence Yun in a statement.
"Our analysis shows that distressed homes typically are selling for 20% less than the normal market price, and this naturally is drawing down the overall median price."
Ian Shepherdson, chief U.S. economist at High Frequency Economics, said there's a "good chance" the collapse in home sales that has been going on since September is "now over."
This information was provided by: Real Estate Investment Resources and appeared in the Real Estate Realtor Newsletter.
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Monday, March 30, 2009
Friday, March 27, 2009
It's a Good Time To Remodel
Planning now to get in a contractor's pipeline of work orders for the spring can give a homeowner a negotiating edge for home improvements and remodeling work. If there was ever a time to strike a deal on home improvement, remodeling and alteration services for the home, this is it.
A semi-annual survey of 5,000 U.S. homeowners, the "Spring 2009 Remodeling Sentiment Report", from Sunnyvale, CA-based RemodelOrMove.com, reveals four times as many homeowners answered "probably not" when asked if they will remodel this year, as compared to the 2007 survey.
In this most recent survey, 68 percent of participating homeowners reported that they probably would remodel this year, down from 84 percent in the fall 2008 report and 92 percent in 2007.
Previous Remodeling Sentiment Reports indicate three times more homeowners than two years ago say that the economy is affecting their remodeling plans greatly, and 82 percent report that the cost of the remodel is a major concern.
The report is inline with research from Harvard University's Joint Center for Housing Studies, which says, in most parts of the country, home prices are falling, discouraging discretionary home improvement spending and diminishing the amount of equity owners have in their homes.
"Earlier this decade, the ability to borrow against equity created by rising home prices fueled remodeling activity, as well as broader consumer spending," says Nicolas P. Retsinas, director of the Harvard Joint Center for Housing Studies.
"Now that prices have softened, owners cannot finance home improvement projects as easily. Even those with equity find credit harder to obtain due to tighter standards," Retsinas added.
The good news is that homeowners who choose to remodel their homes could find this is a good time to get the work done. With new home construction at low levels, more materials and labor are available for remodeling than several years ago, resulting in shorter project schedules and often lower project costs.
Planning now to get in a contractor's pipeline of work orders for the spring could also give a homeowner a negotiating edge. What's more, in a market with declining home values, home improvements are a good way to protect the value of your home and position it as a good value when it's time to sell.
The Sentiment Report also found homeowners are:
*Excited about remodeling – 52 percent
*Dreading remodeling – 12 percent
*Planning to hire a general contractor – 65 percent
Homeowners' remodeling plans include:
*Kitchen remodel – 52 percent
*Bathroom addition – 55 percent
*Bathroom remodel – 45 percent
*Addition of one or more bedrooms or den – 35 percent
*Enlarge or add a garage – 19 percent
*Finish a basement – 13 percent
Harvard's Joint Center also suggests the best home improvements can help save money and the planet because they are "green."
If we are going to meet the nation’s energy goals, we have to continuously search for ways to improve the residential built environment. The report demonstrates that maximizing energy-efficiency in existing housing may be one of our greatest challenges, but also one of our greatest opportunities given that homes account for almost a quarter of energy consumption in our economy," says Mohsen Mostafavi, dean of the Harvard Graduate School of Design, where attention to green design is a growing focus in the classrooms and studios.
A semi-annual survey of 5,000 U.S. homeowners, the "Spring 2009 Remodeling Sentiment Report", from Sunnyvale, CA-based RemodelOrMove.com, reveals four times as many homeowners answered "probably not" when asked if they will remodel this year, as compared to the 2007 survey.
In this most recent survey, 68 percent of participating homeowners reported that they probably would remodel this year, down from 84 percent in the fall 2008 report and 92 percent in 2007.
Previous Remodeling Sentiment Reports indicate three times more homeowners than two years ago say that the economy is affecting their remodeling plans greatly, and 82 percent report that the cost of the remodel is a major concern.
The report is inline with research from Harvard University's Joint Center for Housing Studies, which says, in most parts of the country, home prices are falling, discouraging discretionary home improvement spending and diminishing the amount of equity owners have in their homes.
"Earlier this decade, the ability to borrow against equity created by rising home prices fueled remodeling activity, as well as broader consumer spending," says Nicolas P. Retsinas, director of the Harvard Joint Center for Housing Studies.
"Now that prices have softened, owners cannot finance home improvement projects as easily. Even those with equity find credit harder to obtain due to tighter standards," Retsinas added.
The good news is that homeowners who choose to remodel their homes could find this is a good time to get the work done. With new home construction at low levels, more materials and labor are available for remodeling than several years ago, resulting in shorter project schedules and often lower project costs.
Planning now to get in a contractor's pipeline of work orders for the spring could also give a homeowner a negotiating edge. What's more, in a market with declining home values, home improvements are a good way to protect the value of your home and position it as a good value when it's time to sell.
The Sentiment Report also found homeowners are:
*Excited about remodeling – 52 percent
*Dreading remodeling – 12 percent
*Planning to hire a general contractor – 65 percent
Homeowners' remodeling plans include:
*Kitchen remodel – 52 percent
*Bathroom addition – 55 percent
*Bathroom remodel – 45 percent
*Addition of one or more bedrooms or den – 35 percent
*Enlarge or add a garage – 19 percent
*Finish a basement – 13 percent
Harvard's Joint Center also suggests the best home improvements can help save money and the planet because they are "green."
If we are going to meet the nation’s energy goals, we have to continuously search for ways to improve the residential built environment. The report demonstrates that maximizing energy-efficiency in existing housing may be one of our greatest challenges, but also one of our greatest opportunities given that homes account for almost a quarter of energy consumption in our economy," says Mohsen Mostafavi, dean of the Harvard Graduate School of Design, where attention to green design is a growing focus in the classrooms and studios.
"Consumer demand for sustainable design is on the rise," Mostafavi added.
Published in Realty Times March 2009
Written by Broderick Perkins
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Wednesday, March 25, 2009
Washington Report: Federal Reserve
By far the biggest news for housing out of Washington last week had nothing to do with the Obama administration, nothing to do with Congress. Instead it was these very carefully chosen words from the Federal Reserve Board's open markets committee: We "will employ all available tools," the board said, to turn the economy around, and our number one focus will be the housing and mortgage markets.
In this case, the "all available tools" included the equivalent of a massive shot of adrenaline for home real estate: The Fed pledged to essentially flood the mortgage market with so much new capital that loan rates will drop to unprecedented levels - possibly into the mid four percent range for 30 year fixed rate mortgages. Maybe even lower.
How will that happen? The Fed intends to buy $750 billion in new mortgage-backed securities from Fannie Mae and Freddie Mac . That's on top of the $500 billion it previously committed to buy.
Those mortgage securities will then sit on the Fed's balance sheet, providing long-term returns to the central bank.
More importantly, by providing a guaranteed outlet for conventional mortgages, the Fed will encourage lenders across the country to extend loan commitments to home buyers and refinancers immediately.
It should also throw a lifeline to large numbers of current home owners who are on the brink of not being able to make their monthly mortgage payments, and who simply need lower interest rates through refinancings to afford to keep their houses.
Lower mortgage rates through the new program will almost certainly pull buyers off the sidelines this spring and summer, and even put a floor on home prices in the hardest-hit markets.
Everywhere else, rates in the mid-four percent range or lower could even put upward pressure on selling prices. That's because when you lower the monthly cost of borrowing to buy a house, you make it more affordable, even at a slightly higher price.
Is there any downside to all this stimulation of the housing sector? Probably the biggest worry over the long-term is that inexpensive capital may contribute to higher inflationary pressures in the coming years.
But the Fed seems to be saying: Hey, let's tackle one problem at a time. Right now we're trying to help housing out its anemic state. If that eventually spikes inflation's ugly head, we'll deal with that when it comes up.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
In this case, the "all available tools" included the equivalent of a massive shot of adrenaline for home real estate: The Fed pledged to essentially flood the mortgage market with so much new capital that loan rates will drop to unprecedented levels - possibly into the mid four percent range for 30 year fixed rate mortgages. Maybe even lower.
How will that happen? The Fed intends to buy $750 billion in new mortgage-backed securities from Fannie Mae and Freddie Mac . That's on top of the $500 billion it previously committed to buy.
Those mortgage securities will then sit on the Fed's balance sheet, providing long-term returns to the central bank.
More importantly, by providing a guaranteed outlet for conventional mortgages, the Fed will encourage lenders across the country to extend loan commitments to home buyers and refinancers immediately.
It should also throw a lifeline to large numbers of current home owners who are on the brink of not being able to make their monthly mortgage payments, and who simply need lower interest rates through refinancings to afford to keep their houses.
Lower mortgage rates through the new program will almost certainly pull buyers off the sidelines this spring and summer, and even put a floor on home prices in the hardest-hit markets.
Everywhere else, rates in the mid-four percent range or lower could even put upward pressure on selling prices. That's because when you lower the monthly cost of borrowing to buy a house, you make it more affordable, even at a slightly higher price.
Is there any downside to all this stimulation of the housing sector? Probably the biggest worry over the long-term is that inexpensive capital may contribute to higher inflationary pressures in the coming years.
But the Fed seems to be saying: Hey, let's tackle one problem at a time. Right now we're trying to help housing out its anemic state. If that eventually spikes inflation's ugly head, we'll deal with that when it comes up.
Written by: Kenneth R. Harney / Realty Times
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, March 23, 2009
Traditional Appraisals Important in Determining Home Value
Written by: Phoebe Chongchua / Realty Times
The advancement of technology is meant to ease the burden of everyday living by making things more efficient, accurate and less expensive but when it comes to determining the value of real estate, can technology really be better---or, take the place of a certified appraiser?
In a prepared statement by the Nation’s Professional Appraisal Organizations (the American Society of Appraisers; the Appraisal Institute; the American Society of Farm Managers and Rural Appraisers and the National Association of Independent Fee Appraisers-- which represent 35,000 real property appraisers in the U.S.), contend that using only computer-generated Automated Valuation Models (AVM) to determine the value of homes can lead to trouble.
“Inadequate home valuation requirements leave taxpayers exposed to unnecessary losses and homeowners vulnerable to improper exclusion from Treasury’s loan modification plan,” the release states.
It further states, “Our organizations applaud the fact that the plan will allow millions of families to remain in their homes. However, we are deeply troubled that the Treasury Department’s $75 billion government-guaranteed modification program fails to protect taxpayers from avoidable losses when reworked loans default in the future, as some of them inevitably will; and fails to protect homeowners from mistakenly being declared ineligible for modification because they are told, erroneously, that the current market values of their homes do not meet plan underwriting criteria.”
According to the released statement, the reason some may not meet the underwriting criteria is because of the way the valuation of the homes is determined by the use of AVMs or Broker Price Opinions. “For reasons we find inexplicable, Treasury’s plan ignores this invaluable “safety and soundness” human resource and, instead, relies on computer-generated values and the opinions of real estate agents who are not subject to nationally accepted appraisal qualifications and standards to safeguard taxpayers and determine whether homeowners are or are not eligible to decrease their mortgage burden.”
To be most effective and accurate, Michael H. Evans of Evans Appraisal and also a member of the American Society of Appraisers says that certified and designated expert appraisers must be used. “It’s kind of a black box,” says Evans about the information that comes from AVMs. “Unless that valuation is done by an appraiser who understands the data and interprets it, we don’t know if it’s accurate or inaccurate,” says Evans.
The appraisal industry is making an effort to ensure that its voice is heard. Earlier this month industry members testified before congress about what it perceives to be structural weaknesses with regulations in the mortgage industry. Evans says, especially now, relying on AVMs is risky, “In a down market it’s really hard for the AVM to analyze listing data or understand that concessions were made on a particular sale and how much they were,” says Evans.
“An AVM can be an excellent tool in the hands of a professional, the problem is the people who are putting that data in are not appraisers, nor are they looking at the data and interpreting it and saying ‘Yes, that’s okay, that makes sense or no, I need to get something better than that,” he added.
Evans says using a certified and designated appraiser provides you with a report and someone who is responsible for the information in it. “The appraiser is tied by his appraisal to the transaction, pretty much, for the life of the loan. If we do something wrong you can come get us for the life of the loan—we’re tied to it,” says Evans.
But part of the attractiveness of AVMs is that they’re cheaper. A traditional appraisal costs approximately $250 - $300 to pay for several hours of evaluation done by a certified appraiser whereas an AVM can cut the cost to about $50 - $100 for a typical single-family home.
The National Association of Realtors supports the call to protect consumers and is recommending that lenders be required to inform borrowers about how their property value was determined as well as provide them with a copy of the appraisal for no additional cost. The National Association of Realtor, President Charles McMillan, had this to say to the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit, "Realtors believe that a strong and independent appraisal industry is vital to restoring faith in the mortgage origination process.”
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The advancement of technology is meant to ease the burden of everyday living by making things more efficient, accurate and less expensive but when it comes to determining the value of real estate, can technology really be better---or, take the place of a certified appraiser?
In a prepared statement by the Nation’s Professional Appraisal Organizations (the American Society of Appraisers; the Appraisal Institute; the American Society of Farm Managers and Rural Appraisers and the National Association of Independent Fee Appraisers-- which represent 35,000 real property appraisers in the U.S.), contend that using only computer-generated Automated Valuation Models (AVM) to determine the value of homes can lead to trouble.
“Inadequate home valuation requirements leave taxpayers exposed to unnecessary losses and homeowners vulnerable to improper exclusion from Treasury’s loan modification plan,” the release states.
It further states, “Our organizations applaud the fact that the plan will allow millions of families to remain in their homes. However, we are deeply troubled that the Treasury Department’s $75 billion government-guaranteed modification program fails to protect taxpayers from avoidable losses when reworked loans default in the future, as some of them inevitably will; and fails to protect homeowners from mistakenly being declared ineligible for modification because they are told, erroneously, that the current market values of their homes do not meet plan underwriting criteria.”
According to the released statement, the reason some may not meet the underwriting criteria is because of the way the valuation of the homes is determined by the use of AVMs or Broker Price Opinions. “For reasons we find inexplicable, Treasury’s plan ignores this invaluable “safety and soundness” human resource and, instead, relies on computer-generated values and the opinions of real estate agents who are not subject to nationally accepted appraisal qualifications and standards to safeguard taxpayers and determine whether homeowners are or are not eligible to decrease their mortgage burden.”
To be most effective and accurate, Michael H. Evans of Evans Appraisal and also a member of the American Society of Appraisers says that certified and designated expert appraisers must be used. “It’s kind of a black box,” says Evans about the information that comes from AVMs. “Unless that valuation is done by an appraiser who understands the data and interprets it, we don’t know if it’s accurate or inaccurate,” says Evans.
The appraisal industry is making an effort to ensure that its voice is heard. Earlier this month industry members testified before congress about what it perceives to be structural weaknesses with regulations in the mortgage industry. Evans says, especially now, relying on AVMs is risky, “In a down market it’s really hard for the AVM to analyze listing data or understand that concessions were made on a particular sale and how much they were,” says Evans.
“An AVM can be an excellent tool in the hands of a professional, the problem is the people who are putting that data in are not appraisers, nor are they looking at the data and interpreting it and saying ‘Yes, that’s okay, that makes sense or no, I need to get something better than that,” he added.
Evans says using a certified and designated appraiser provides you with a report and someone who is responsible for the information in it. “The appraiser is tied by his appraisal to the transaction, pretty much, for the life of the loan. If we do something wrong you can come get us for the life of the loan—we’re tied to it,” says Evans.
But part of the attractiveness of AVMs is that they’re cheaper. A traditional appraisal costs approximately $250 - $300 to pay for several hours of evaluation done by a certified appraiser whereas an AVM can cut the cost to about $50 - $100 for a typical single-family home.
The National Association of Realtors supports the call to protect consumers and is recommending that lenders be required to inform borrowers about how their property value was determined as well as provide them with a copy of the appraisal for no additional cost. The National Association of Realtor, President Charles McMillan, had this to say to the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit, "Realtors believe that a strong and independent appraisal industry is vital to restoring faith in the mortgage origination process.”
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, March 20, 2009
Fannie Mae: Selling In A Tricky Market
Selling a home in a down market like this one is not a prospect that appeals to many homeowners. But what about selling nearly 65,000 of them?
That is the task Fannie Mae faces as it repossesses houses that have been through foreclosure. As the owner or guarantor on a third of all of the nation's home loans, the mortgage giant has to take over, renovate and sell a growing number of properties.
"Our No. 1 strategy is to sell them one-by-one," says Gabrielle Harrison, Fannie Mae's vice president of foreclosure sales.
But that strategy is both time and cost intensive. Many of the homes are left in disrepair, or have been vandalized as former owners move out.
Selling Foreclosed Houses
On average, Harrison says, the company spends about $10,000 per property to fix it up for sale. Then Fannie Mae has to assess the price and manage the sale. In all, Harrison says, it's taking the company an average of 90 days to sell a home — even in some of the nation's most distressed areas like California, Nevada and Florida.
The real challenge for Fannie Mae, which since last year has operated under government conservatorship, is that it has two mandates that sometimes conflict. On the one hand, it wants a quick sale so it can reduce its exposure to the housing market. On the other hand, it doesn't want to price homes so low that it ends up undercutting the prices of other homes.
"Our main philosophy is to preserve communities and maintain property values," Harrison says. Doing so, she says, means identifying the exact right price for each home.
Arriving at that price, however, can feel like pinning down a moving target.
Since market prices are so low now may just be the "perfect time to buy!"
Part one of this story, "Fannie Mae Specialists Work To Save Troubled Loans" can be found at: http://www.npr.org/templates/story/story.php?storyId=102014309
This article appeared on NPR's
Morning Edition, March 19, 2009 ·
written by: Yuki Noguchi
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
That is the task Fannie Mae faces as it repossesses houses that have been through foreclosure. As the owner or guarantor on a third of all of the nation's home loans, the mortgage giant has to take over, renovate and sell a growing number of properties.
"Our No. 1 strategy is to sell them one-by-one," says Gabrielle Harrison, Fannie Mae's vice president of foreclosure sales.
But that strategy is both time and cost intensive. Many of the homes are left in disrepair, or have been vandalized as former owners move out.
Selling Foreclosed Houses
On average, Harrison says, the company spends about $10,000 per property to fix it up for sale. Then Fannie Mae has to assess the price and manage the sale. In all, Harrison says, it's taking the company an average of 90 days to sell a home — even in some of the nation's most distressed areas like California, Nevada and Florida.
The real challenge for Fannie Mae, which since last year has operated under government conservatorship, is that it has two mandates that sometimes conflict. On the one hand, it wants a quick sale so it can reduce its exposure to the housing market. On the other hand, it doesn't want to price homes so low that it ends up undercutting the prices of other homes.
"Our main philosophy is to preserve communities and maintain property values," Harrison says. Doing so, she says, means identifying the exact right price for each home.
Arriving at that price, however, can feel like pinning down a moving target.
Since market prices are so low now may just be the "perfect time to buy!"
Part one of this story, "Fannie Mae Specialists Work To Save Troubled Loans" can be found at: http://www.npr.org/templates/story/story.php?storyId=102014309
This article appeared on NPR's
Morning Edition, March 19, 2009 ·
written by: Yuki Noguchi
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, March 18, 2009
Five Ways to Wow Buyers
Written by: Phoebe Chongchua / Realty Times
These days, tax credits and high housing inventory make it a buyers’ market. If you’re a seller, don’t despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.
Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.
While not everyone has the same taste in housing, typically buyers are attracted to larger kitchens, extra storage space, light and bright rooms, and open floor plans. Special finishing touches on a home can be the needed incentive to generate an offer.
Kathy Gerstenberg has owned her home for nearly 20 years. Over the decades she’s made many improvements but now she’s considering selling and wants to make sure she gets top dollar in a down market. So, she’s examining her home the way a buyer would.
“We live in a tract home and I know there are many homes for sale; we don’t want ours to be seen as the same ‘cookie-cutter’ model as the others,” says Gerstenberg.
With that in mind, Gerstenberg has carefully made enhancements that make her home more comfortable and aesthetically pleasing. “I wanted to do improvements that would catch a buyer’s eye and also make it enjoyable for our family,” says Gerstenberg.
As she scouts the market for her next home there are various aspects of a potential home that she notices right away. “I love crown molding and finished doors and windows,” says Gerstenberg. She adds, “So many times builders just don’t complete the look of a home but when you frame a door or window and add some crown molding to a room it gives it a finished look.”
Industry experts agree; Americans are expected to spend $217 billion on remodeling in 2009. Here are five areas where homeowners may spend some of their remodeling money to add the “wow” factor to your home.
1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.
2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.
3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get carried away with a color you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!
4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.
5. Add a deck. Adding a deck can add value to your home. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
These days, tax credits and high housing inventory make it a buyers’ market. If you’re a seller, don’t despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.
Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.
While not everyone has the same taste in housing, typically buyers are attracted to larger kitchens, extra storage space, light and bright rooms, and open floor plans. Special finishing touches on a home can be the needed incentive to generate an offer.
Kathy Gerstenberg has owned her home for nearly 20 years. Over the decades she’s made many improvements but now she’s considering selling and wants to make sure she gets top dollar in a down market. So, she’s examining her home the way a buyer would.
“We live in a tract home and I know there are many homes for sale; we don’t want ours to be seen as the same ‘cookie-cutter’ model as the others,” says Gerstenberg.
With that in mind, Gerstenberg has carefully made enhancements that make her home more comfortable and aesthetically pleasing. “I wanted to do improvements that would catch a buyer’s eye and also make it enjoyable for our family,” says Gerstenberg.
As she scouts the market for her next home there are various aspects of a potential home that she notices right away. “I love crown molding and finished doors and windows,” says Gerstenberg. She adds, “So many times builders just don’t complete the look of a home but when you frame a door or window and add some crown molding to a room it gives it a finished look.”
Industry experts agree; Americans are expected to spend $217 billion on remodeling in 2009. Here are five areas where homeowners may spend some of their remodeling money to add the “wow” factor to your home.
1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.
2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.
3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get carried away with a color you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!
4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.
5. Add a deck. Adding a deck can add value to your home. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, March 16, 2009
The Ripple Effect of The Non-Repayable Tax Credit
Written by: Kenneth R. Harney / Realty Times
First time buyers will get an improved, higher, nonrepayable version of last year's repayable $7,500 tax credit under Congress's massive $789 billion economic stimulus package.
That in turn should lead to 500,000 additional home sales this year, according to new estimates prepared by the National Association of Realtors economics staff .
With the credit eligibility period now extended to September 1, instead of the previous cut-off date of June 30, the 500,000 additional transactions will include purchases not only by direct users of the credit, but also replacement home purchases by sellers who are moving out …or moving up.
This year's better tax credit should also generate huge amounts of "ripple effect" bang for the buck -- $62,000 of additional economic activity for every house sold - or roughly $31 billion in incremental economic benefits, according to the Realtors' projections.
Why? Because virtually every home purchase triggers other purchases and payments down the line -- furnishings, appliances, remodeling, real estate commissions, moving expenses and the like.
Not everybody in Washington is happy with the new credit, however. The National Association of Home Builders pushed hard for a $15,000 credit for all purchases during 2009 -- and got it inserted in the Senate version of the stimulus package.
But House and Senate conferees decided that was too costly in a bill that already had $280 billion in other tax benefits, and they cut it back to the smaller version passed earlier by the House.
Though the improved tax credit is drawing most of the attention, the stimulus package has a handful of other incentives and benefits for home owners. For example, it extends or expands all energy-related tax credits -- for everything from energy efficient heating and airconditioning units, doors, windows and insulation - through the year 2010.
And the bill should produce a lot of additional economic activity aimed at "weatherization" of up to one million houses owned by moderate-income families -- $5 billion worth of new subsidies, according to House Speaker Nancy Pelosi.
Still another big program in the package should create economic ripple effects in neighborhoods where there have been heavy numbers of foreclosures. The bill provides two billion dollars to buy up, renovate and either rent out or resell foreclosed and vacant houses.
The money will go to local governments, but the actual rehab, rental and resales work will flow to people in the private sector.
So if you live or work in an area that's seen a lot of foreclosures, check in with your local housing and planning departments to see how you might fit in.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
First time buyers will get an improved, higher, nonrepayable version of last year's repayable $7,500 tax credit under Congress's massive $789 billion economic stimulus package.
That in turn should lead to 500,000 additional home sales this year, according to new estimates prepared by the National Association of Realtors economics staff .
With the credit eligibility period now extended to September 1, instead of the previous cut-off date of June 30, the 500,000 additional transactions will include purchases not only by direct users of the credit, but also replacement home purchases by sellers who are moving out …or moving up.
This year's better tax credit should also generate huge amounts of "ripple effect" bang for the buck -- $62,000 of additional economic activity for every house sold - or roughly $31 billion in incremental economic benefits, according to the Realtors' projections.
Why? Because virtually every home purchase triggers other purchases and payments down the line -- furnishings, appliances, remodeling, real estate commissions, moving expenses and the like.
Not everybody in Washington is happy with the new credit, however. The National Association of Home Builders pushed hard for a $15,000 credit for all purchases during 2009 -- and got it inserted in the Senate version of the stimulus package.
But House and Senate conferees decided that was too costly in a bill that already had $280 billion in other tax benefits, and they cut it back to the smaller version passed earlier by the House.
Though the improved tax credit is drawing most of the attention, the stimulus package has a handful of other incentives and benefits for home owners. For example, it extends or expands all energy-related tax credits -- for everything from energy efficient heating and airconditioning units, doors, windows and insulation - through the year 2010.
And the bill should produce a lot of additional economic activity aimed at "weatherization" of up to one million houses owned by moderate-income families -- $5 billion worth of new subsidies, according to House Speaker Nancy Pelosi.
Still another big program in the package should create economic ripple effects in neighborhoods where there have been heavy numbers of foreclosures. The bill provides two billion dollars to buy up, renovate and either rent out or resell foreclosed and vacant houses.
The money will go to local governments, but the actual rehab, rental and resales work will flow to people in the private sector.
So if you live or work in an area that's seen a lot of foreclosures, check in with your local housing and planning departments to see how you might fit in.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
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