Does the carefully staged furniture in your new listing move around between showings? Do strange thumps and moans come from nowhere? Good news: Today's buyers seem to be OK with that.
Financial news site The Street reports that only 35 percent of the 1,910 people responding to a REALTOR.com poll said they would avoid a haunted house.
There's a catch for the remaining 65 percent, though: ABout half of the people who said they'd consider buying wanted a discount of between 1 percent and 30 percent. Another 36 percent said they'd expect an even higher discount.
The poll found a number of spooky deal breakers: 65 percent would pass on a house that had strange voices, 64 percent would dodge a house with levitating objects, 59 percent would skip a house with visible ghosts, and 52 percent would rather avoid a house with unexplained noises, such as footsteps or slamming doors.
"It's really interesting that so many people would be into purchasing a home even if it was rumored to be haunted," The Street quotes REALTOR.com's Lexie Puckett. "Essentially, more people were open to the idea than not."
Florida-based practitioner Eric Martell says it's tough to pinpoint "what kind of damage a spirit does to a house's value. I don't think any appraiser on the planet can answer that and say, 'Well, I always discount [haunted houses] by 10%.'"
Source: "Haunted House? 65% Might Still Buy," The Street (10/31/2012)
Two-Thirds of Buyers OK With Haunted Houses
Wednesday, October 31, 2012
Tuesday, October 30, 2012
VA Guarantees 20 Million Loans and Counting
The Department of Veterans Affairs announced it has reached a major milestone: It has guaranteed 20 million home loans since launching its loan program in 1944.
“The 20 millionth VA home loan is a major milestone and is a testament to VA’s commitment to support and enhance the lives of Veterans, Service members, their families and survivors,” says Allison A. Hickey, VA’s undersecretary for Benefits. “As a result of their service and sacrifice, as a group, they prove to be disciplined, reliable, and honorable—traits that are ideal for this kind of national investment.”
VA loans, which tend to boast low financing costs for home ownership, are available for eligible veterans, servicemembers, and surviving spouses.
The VA program has continued to grow, particularly in the last five years, due to its low interest rates. Loans for purchases have jumped 71 percent and loans for refinancings are up 20 times in that period.
The Department of Veterans Affairs boasts the lowest foreclosure rate for the past 17 quarters. It also has had the lowest delinquency rate for the past 14 quarters on its loans, according to the Mortgage Bankers Association.
Source: The Department of Veterans Affairs
VA Guarantees 20 Million Loans and Counting
“The 20 millionth VA home loan is a major milestone and is a testament to VA’s commitment to support and enhance the lives of Veterans, Service members, their families and survivors,” says Allison A. Hickey, VA’s undersecretary for Benefits. “As a result of their service and sacrifice, as a group, they prove to be disciplined, reliable, and honorable—traits that are ideal for this kind of national investment.”
VA loans, which tend to boast low financing costs for home ownership, are available for eligible veterans, servicemembers, and surviving spouses.
The VA program has continued to grow, particularly in the last five years, due to its low interest rates. Loans for purchases have jumped 71 percent and loans for refinancings are up 20 times in that period.
The Department of Veterans Affairs boasts the lowest foreclosure rate for the past 17 quarters. It also has had the lowest delinquency rate for the past 14 quarters on its loans, according to the Mortgage Bankers Association.
Source: The Department of Veterans Affairs
VA Guarantees 20 Million Loans and Counting
Friday, October 26, 2012
25 Quick, Cheap and Easy Home Sale Tips
If you want to get a home sold quickly and inexpensively, you should review these sales and design tips.....
Even with rising values and reduced inventory in certain markets, selling a home remains challenging. Buyers expect not just a shiny new stainless sink but pruned hedges, freshly painted walls, glistening hardwood floors, and more. Making everything look great can cost a pretty penny, and many sellers won’t be able to afford all the suggestions you might make.You can help them prioritize based on the condition of what’s needed most, what buyers in the area typically request, what competing houses offer, and — of course — cost. Here’s a list of 25 affordable, easy-to-make changes from top design and real-estate pros:
- Add power outlets with USB ports in rooms that lack them, especially in the kitchen, bathrooms, and bedrooms where they’re most needed. “Younger, more tech-savvy couples and individuals love them,” says Tyler Drew, broker and property investor with Anubis Properties Inc. in Los Angeles.
- Eliminate acoustic popcorn-style ceilings since they look dated and tacky.
- Remove exposed posts and half walls. Today’s buyers want more space, and partial walls and posts gobble up room. The only walls that should remain are those that offer privacy or conceal electrical wires or plumbing stacks.
- Update wiring for the Internet and flat-screen TVs. You don’t have to run CAT-5 through walls, which can be costly and require opening and closing and repainting walls. Instead, find a place to put a wireless router, Drew says.
- Clean carpets and wood floors since they’re often the first part of a room that buyers check out; you don’t need to replace them unless they’re in terrible shape. A good carpet steam cleaning or wood floor waxing can be relatively inexpensive, sometimes less than $200.
- Expand a small kitchen to make it work better and look larger. Two quick fixes: Change the backsplash by adding mirrors, stainless steel, or paint, which will introduce light and views; and add an island, which requires only 30” between counters and the island to pass through comfortably. If there’s not enough room for an island, bring in a rolling cart with pull-out shelves underneath and a wood top, says Libby Langdon, an interior designer, author, and expert with Liebherr Refrigeration..
- Clear out and clean a garage, a big selling feature.Power wash the floor or paint it if it’s in bad shape, remove dated cabinets, and remove all junk that’s been stored there, so prospects can see how much space they would have for their stuff.
- Change out corroded or dented door knobs and levers. The replacements don’t have to be expensive but they should look new and clean, Chicago architect Allan J. Grant suggests.
- Pay attention to landscaping, which can add 7 to 15 percent to a home’s value, according to HabitatDesign.com principals Jessy Berg and Bonnie Gemmell. Focus on mowing grass, removing crab grass, and eliminating dead plants and tree branches. “I’d rather have dirt and the potential to paint a picture for the buyers’ mind than a backyard full of dead plants,” Drew says. But if you have extra funds, consider Sacramento, Calif.-based landscape designer Michael Glassman’s ideas: Add lots of seasonal color through blooming annuals and perennial plants and remove problems like too much noise from traffic or neighbors by installing an inexpensive fountain with trickling water.
- Paint exterior windows, doors, gutters, downspouts, and trim, then go inside and paint the home’s trim, doorways, and walls that are in need of freshening. Don’t worry about the colors but consider those that veer toward quiet and comfort such as Benjamin Moore’s Yosemite Sand, Edgecomb Gray, or Carrington Beige. “Gray is a hot interior color now,” says Manchester, Vt.-based designer Amy Thebault. Painting rooms other, lighter colors such as white, yellow, and beige help to bounce and reflect sunlight and use more natural and less artificial light, according to Chris Ring, vice president at ProTect Painters, a professional painting source. But in cooler months, Ring says, dark colors such as deep brown and blue absorb sunlight, thereby reducing heating costs. And don’t forget ceilings, which can be a “fifth wall.” You can improve them with paint or old-style metal or faux-metal tiles, says Beverley Kruskol, a general contractor and owner of MY Pacific Building Inc. in Los Angeles.
- Remove outdated wallpaper, replacing it with paint and preferably a neutral color, says Shelley Beckes, ASID, CID, a designer with Beckes Interior Design in Los Angeles.
- Remove, store, or discard excessive accessories on tabletops and walls and in cabinets. “Less is more, and you want the house to be seen by prospective buyers without the distraction of too many personal items,” Grant says. Some suggest following the rule of three: Leave out only three things on any surface.
- Get the house inspected before it’s listed to know its condition and identify any structural issues that could derail sales. Many problems can’t be detected by an untrained eye, including those in a basement, crawl space, or attic, says BillJacques, president-elect of the American Society of Home Inspectors. “There might be roof damage or a plumbing leak. Many inspectors take photos and provide a detailed report,” he says. “And if home owners have repairs made, they should be handled by a qualified licensed contractor, so the home owner can get problems corrected.”
- Outfit closets for extra storage to make rooms look larger and less cluttered, but don’t redo all closets and elaborately. Top contenders for redos are an entry closet for a good first impression, kitchen pantries where storage is key, and a linen closet to keep sheets, towels, and other stuff neat, says Ginny Snook Scott, chief design officer at California Closets Co. “The costs needn’t be excessive. A linen closet can be fitted with baskets and cubbies for between $500 and $600, an entry closet for between $400 and $700, each dependent on closet size and features,” she says.
- Tighten a home’s “envelope” to improve energy efficiency and savings. Put money and effort into well-insulated double-paned windows, sealed furnace ducts, energy-efficient appliances, the newest programmable thermostats, LED and compact fluorescent lights, and a smart irrigation box on a sprinkler to cut water usage, says Kate Latham, energy consultant with WattzON, a service based in Mountain View, Calif., which analyzes home energy use to pare costs. “After a few months, sellers can show buyers how costs have dropped. They also should put together a green manual to show which features they added,” she explains.
- Improve a home’s healthfulness by using paints and adhesives with low or no VOCs. Point out these changes to prospective buyers in another list or manual, Latham says.
- Use what you have, and arrange each room in a conversational way if possible. Don’t set all furnishings in a family room so they face a TV, since most potential buyers like the idea of an open-room milieu for socializing.
- Remove and replaced faded draperies, fabrics, and rugs, or leave windows and floors bare to avoid showing lack of attention, Thebault says. Slipcovers, which can cover worn furniture can also provide an affordable decorative feature, changed for each season, says Hugh Rovit, CEO of Sure Fit, a manufacturer and distributor of ready-made slipcovers and other accessories. The company’s slipcovers range from $49.99 to $149.99, based on fabric and treatment.
- Replace old, dated, or worn bedding. Before any showing, fluff up pillows and covers, and make all beds neatly. Affordable choices can be found at stores like Target and Web sites like Overstock.com.
- Toss out old magazines. “You don’t want a People magazine from a year ago; it looks like nobody lives in the house or cares,” Thebault says.
- Check smells regularly. Besides getting rid of bad odors from pets and mildew, introduce nice fresh fragrances, but don’t go heavy on scents from candles. A light lavender or citrus spray is smart and inoffensive. Open windows before showings to bring in fresh air.
- Make rooms lighter and larger for showings with good lighting. Thebault prefers warm, cool colors rather than fluorescents. Additionally, 60-watt bulbs are a good choice, even though they’re not as energy-efficient.
- Go with plants rather than flowers indoors since they last longer, but either choice can add vivacity to a room.
- Pay attention to your bathrooms. Specifically, make sure you have freshly laundered towels, new soap in soap dishes, spotless mirrors, and no mildew in view.
- Be sure your house is priced competitively with the current market and homes in your area. In most regions, it’s still the No. 1 “fix” to sell quickly. Go a bit under the market price, and you may even bring forth multiple offers that are higher than expected, says Jill Epstein, a REALTOR® with Nourmand & Associates in the Los Angeles area.
25 Quick, Cheap and Easy Home Sale Tips
Wednesday, October 24, 2012
Nondelinquent Borrowers Soon to Be Eligible for Short Sales
Mortgage giants Fannie Mae and Freddie Mac have issued new rules, which will take effect Nov. 1, that will allow short sales for underwater borrowers who have never missed a mortgage payment. Previously, Fannie and Freddie allowed only home owners who had missed payments to qualify for a short sale.
Eligible borrowers under the new rules will need to show a hardship to qualify for a short sale, however. Hardships may include unemployment or a death of a spouse.
Inman News points out one potential flaw to the new rule, however: The nondelinquent home owners who undergo a short sale will likely take just as big a hit to their credit score than if they had missed loan payments and gone into a foreclosure.
“Under current national credit reporting practices, those nondelinquent borrowers are likely to be treated the same for credit scoring purposes as severely delinquent owners who go to foreclosure after months of nonpayment, or who simply toss back the house keys and walk away in strategic defaults,” writes Ken Harney for Inman News.
Credit agencies use no special coding to indicate that a short sale was without delinquency. Therefore, home owners could see their credit scores drop 150 points or more after the short sale.
However, officials at the Federal Housing Finance Agency, which oversees Fannie and Freddie, told Inman News they are “in discussions with the credit industry” to explore ways to fix the credit score problem for those who haven’t missed a payment but undergo a short sale.
Source: “Damage to Credit Scores Could Trip Up New Fannie, Freddie Short Sale Program,” Inman News (Oct. 23, 2012)
Read More
Making a Difference, One Short Sale at a Time
Eligible borrowers under the new rules will need to show a hardship to qualify for a short sale, however. Hardships may include unemployment or a death of a spouse.Inman News points out one potential flaw to the new rule, however: The nondelinquent home owners who undergo a short sale will likely take just as big a hit to their credit score than if they had missed loan payments and gone into a foreclosure.
“Under current national credit reporting practices, those nondelinquent borrowers are likely to be treated the same for credit scoring purposes as severely delinquent owners who go to foreclosure after months of nonpayment, or who simply toss back the house keys and walk away in strategic defaults,” writes Ken Harney for Inman News.
Credit agencies use no special coding to indicate that a short sale was without delinquency. Therefore, home owners could see their credit scores drop 150 points or more after the short sale.
However, officials at the Federal Housing Finance Agency, which oversees Fannie and Freddie, told Inman News they are “in discussions with the credit industry” to explore ways to fix the credit score problem for those who haven’t missed a payment but undergo a short sale.
Source: “Damage to Credit Scores Could Trip Up New Fannie, Freddie Short Sale Program,” Inman News (Oct. 23, 2012)
Read More
Making a Difference, One Short Sale at a Time
Monday, October 22, 2012
Homes Are Selling Faster
Inventories of for-sale homes aren’t the only thing that is dropping. The amount of time homes are staying on the market is growing shorter as well—down 11 percent in the last year—according to the latest Realtor.com data.
Homes were listed on average 95 days, according to September housing data. That is down from 107 days a year earlier.
Homes are selling the fastest in Oakland, Calif., in which the median age of the inventory averages 21 days, which is 57 percent below what it was a year ago. Denver, Colo. boasts a median age of inventory of only 38 days, followed by fast-selling markets of Stockton-Lodi, Calif., with 43 days, and San Francisco with 44 days.
As the median age of the inventory is falling, inventories of for-sale homes continue to hover at record lows too, dropping 18 percent last month compared to a year ago.
“There’s a recovery,” Curt Beardsley, vice president of Realtor.com, told BusinessWeek. “Our market times are low and there’s actually a compression of inventory.”
Home buyer demand is increasing, with housing affordability still high and ultra low mortgage rates that have pushed home buyers’ purchasing power higher. The rise in demand has caused asking prices to also rise. Last month, the median asking price was $191,500, which is up 0.8 percent compared to a year earlier, Realtor.com reports.
Source: "Listings of Homes for Sale Drop as U.S. Housing Recovers," BusinessWeek (Oct. 15, 2012) and REALTOR® Magazine Daily News
Homes were listed on average 95 days, according to September housing data. That is down from 107 days a year earlier.
Homes are selling the fastest in Oakland, Calif., in which the median age of the inventory averages 21 days, which is 57 percent below what it was a year ago. Denver, Colo. boasts a median age of inventory of only 38 days, followed by fast-selling markets of Stockton-Lodi, Calif., with 43 days, and San Francisco with 44 days.
As the median age of the inventory is falling, inventories of for-sale homes continue to hover at record lows too, dropping 18 percent last month compared to a year ago.
“There’s a recovery,” Curt Beardsley, vice president of Realtor.com, told BusinessWeek. “Our market times are low and there’s actually a compression of inventory.”
Home buyer demand is increasing, with housing affordability still high and ultra low mortgage rates that have pushed home buyers’ purchasing power higher. The rise in demand has caused asking prices to also rise. Last month, the median asking price was $191,500, which is up 0.8 percent compared to a year earlier, Realtor.com reports.
Source: "Listings of Homes for Sale Drop as U.S. Housing Recovers," BusinessWeek (Oct. 15, 2012) and REALTOR® Magazine Daily News
Homes Are Selling Faster
Friday, October 19, 2012
Thursday, October 18, 2012
New-Home Market Surges
Construction on new homes in September rose to its fastest pace in more than four years, the Commerce Department reported Wednesday.
Housing starts surged 15 percent in September over August levels, led by a 25.1 percent rise in the multifamily market. Single-family housing starts increased 11 percent in September, reaching their highest level since August 2008. Building permits, a gauge of future construction, climbed 11.6 percent in September.
"One of the big headwinds for the economy has been the weak housing market, and this indicates that headwind has dissipated," Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Mo., told Reuters.
The recovery taking shape in the new-home market is expected to help provide a much-needed lift to the overall economy.
"Things are lining up for housing," says John Canally, an economist at LPL Financial in Boston. "It's another step in the right direction, but you still have a long, long way to get back to 'normal' in housing."
While housing starts are showing a strong lift, economists note that the rate is still about 60 percent below what it was in January 2006, when it peaked.
Source: “Housing Starts Jump to Fastest Pace in 4 Years,” Reuters (Oct. 17, 2012)
Housing starts surged 15 percent in September over August levels, led by a 25.1 percent rise in the multifamily market. Single-family housing starts increased 11 percent in September, reaching their highest level since August 2008. Building permits, a gauge of future construction, climbed 11.6 percent in September.
"One of the big headwinds for the economy has been the weak housing market, and this indicates that headwind has dissipated," Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Mo., told Reuters.
The recovery taking shape in the new-home market is expected to help provide a much-needed lift to the overall economy.
"Things are lining up for housing," says John Canally, an economist at LPL Financial in Boston. "It's another step in the right direction, but you still have a long, long way to get back to 'normal' in housing."
While housing starts are showing a strong lift, economists note that the rate is still about 60 percent below what it was in January 2006, when it peaked.
Source: “Housing Starts Jump to Fastest Pace in 4 Years,” Reuters (Oct. 17, 2012)
New-Home Market Surges
Thursday, October 11, 2012
Loan Applications for Home Purchases Soar
Daily Real Estate News | Thursday, October 11, 2012
Loan Applications for Home Purchases Soar
Mortgage applications for purchases rose to their highest levels since June last week, as mortgage rates hovered at record lows, the Mortgage Bankers Association reports.
Loan requests for home purchases, viewed as a leading indicator of future home sales, increased 2.4 percent for the week ending Oct. 5.
However, the overall index — which includes applications for refinancings and home purchases — was down slightly for the week, falling 1.2 percent last week, MBA reported. Applications for refinancings make up the biggest bulk of the index.
Taken alone, applications for refinancings dropped 2 percent last week, but still remain at a three-year high in volume, says Mike Fratantoni, MBA’s vice president of research and economics.
Source: “Mortgage Applications Fell Last Week: MBA,” Reuters (Oct. 10, 2012)
Loan requests for home purchases, viewed as a leading indicator of future home sales, increased 2.4 percent for the week ending Oct. 5. However, the overall index — which includes applications for refinancings and home purchases — was down slightly for the week, falling 1.2 percent last week, MBA reported. Applications for refinancings make up the biggest bulk of the index.
Taken alone, applications for refinancings dropped 2 percent last week, but still remain at a three-year high in volume, says Mike Fratantoni, MBA’s vice president of research and economics.
Source: “Mortgage Applications Fell Last Week: MBA,” Reuters (Oct. 10, 2012)
Loan Applications for Home Purchases Soar
Monday, October 8, 2012
Housing Scorecard: Home Equity on the Rise
Housing Scorecard: Home Equity on the Rise
Rising home values are helping more home owners to find equity in their homes, according to the September Housing Scorecard from the Obama administration.
Home equity is at its highest level since the third quarter of 2008 and has risen by $860 billion since the end of 2011, according to the report. The rise in equity has helped lift 1.3 million families from being underwater, or owing more on their mortgage than their home is currently worth.
The number of home owners underwater on their mortgages has dropped 11 percent since the end of last year—from 12.1 million to 10.8 million.
With rising equity and home sales, the housing market shows continued signs of strengthening, according to the September Housing Scorecard from the Obama administration. In August, existing-home sales reached their highest level in more than two years.
“Our housing market is showing important signs of recovery—with home owner equity at a four-year high and summer sales of existing homes at the strongest pace in two years,” says Erika Poethig, acting assistant secretary at the U.S. Department of Housing and Urban Development, which releases the Housing Scorecard each month jointly with the U.S. Department of Treasury.
View the complete Housing Scorecard for September.
Source: “Obama Administration Releases September Housing Scorecard,” RISMedia (Oct. 7, 2012)
Rising home values are helping more home owners to find equity in their homes, according to the September Housing Scorecard from the Obama administration.
Home equity is at its highest level since the third quarter of 2008 and has risen by $860 billion since the end of 2011, according to the report. The rise in equity has helped lift 1.3 million families from being underwater, or owing more on their mortgage than their home is currently worth.
The number of home owners underwater on their mortgages has dropped 11 percent since the end of last year—from 12.1 million to 10.8 million.
With rising equity and home sales, the housing market shows continued signs of strengthening, according to the September Housing Scorecard from the Obama administration. In August, existing-home sales reached their highest level in more than two years.
“Our housing market is showing important signs of recovery—with home owner equity at a four-year high and summer sales of existing homes at the strongest pace in two years,” says Erika Poethig, acting assistant secretary at the U.S. Department of Housing and Urban Development, which releases the Housing Scorecard each month jointly with the U.S. Department of Treasury.
View the complete Housing Scorecard for September.
Source: “Obama Administration Releases September Housing Scorecard,” RISMedia (Oct. 7, 2012)
Monday, October 1, 2012
Street Names Make a Difference on Asking Prices?
Street Names Make a Difference on Asking Prices?
The street name of a neighborhood can affect the asking price on a home, at least according to a new survey by Trulia.
Trulia analyzed the median asking price per square foot among various types of address suffixes, like “Lane” and “Park.”
Street addresses with the words “Boulevard,” “Place,” and “Road” were found to have higher average asking prices than homes with addresses ending in “Avenue,” “Drive,” or “Street,” according to the Trulia study.
For example, homes that were located on streets with the word “Boulevard” in the address sold on average about $117 per square foot compared to properties located on addresses with “Lane,” which would sell on average for $101 per square feet, or “Street,” which sold for about $86 per square foot.
Homes that had “Boulevard” in the address had the highest asking prices of all the street-names Trulia studied.
Source: “Is it Better to Live on Park Boulevard or Park Lane?” HousingWire (Sept. 26, 2012)
The street name of a neighborhood can affect the asking price on a home, at least according to a new survey by Trulia.
Trulia analyzed the median asking price per square foot among various types of address suffixes, like “Lane” and “Park.”
Street addresses with the words “Boulevard,” “Place,” and “Road” were found to have higher average asking prices than homes with addresses ending in “Avenue,” “Drive,” or “Street,” according to the Trulia study.
For example, homes that were located on streets with the word “Boulevard” in the address sold on average about $117 per square foot compared to properties located on addresses with “Lane,” which would sell on average for $101 per square feet, or “Street,” which sold for about $86 per square foot.
Homes that had “Boulevard” in the address had the highest asking prices of all the street-names Trulia studied.
Source: “Is it Better to Live on Park Boulevard or Park Lane?” HousingWire (Sept. 26, 2012)
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