7 Ways to Improve Your Home's Sell-Ability

In this economy, houses aren't selling like they used to. However, there are some ways to improve the chances of selling your house. If you have a house on the market, or are considering it, read on for seven tips that will make it easier to sell your house and make a smooth transition from one owner to the next. (Learn more in Selling Your Home In A Down Market.)

1. Maintain NeutralityThis policy has worked for Switzerland, and it can also work in real estate. Customizing your home is great if you plan to stay there, but extreme colors and themed rooms can scare off potential homebuyers. If you have customized every room with extremely bright or dark colored paint, wallpaper or wall fixtures, you may want to consider toning it down a bit. Using neutral colors on the walls can help prospective buyers create their own vision for the house, and will also leave them with less work to undo if they buy the house.
   
2. Less Is MoreEven though you have not moved out yet, removing some of your furniture can help the house move off the market. If you take pictures for your listing, having less furniture can help the home appear more spacious. When potential homebuyers arrive, having less furniture can also provide clear walkways.
   
3. That New House SmellHonestly, the new house smell isn't always the most pleasant, but at least it is new. In preparing to show your home, you should avoid strong smells. To avoid odors, make sure to take out the trash and clean the refrigerator regularly. It is also good to be mindful of what you cook in the days leading up to a showing since certain foods have strong scents. If you have pets, keep an eye on the litter box. Any smell that is too strong could send potential homebuyers running out the door.
   
4. Pay Attention to the DetailsIt is not a good idea to make major renovations when you are ready to sell your home because you may not recoup your investment. If you never got around to starting or completing that total kitchen or bathroom makeover, then you can make some small, inexpensive changes to spruce things up. Replacing the hardware on cabinets is a quick way to improve the appearance of older looking fixtures. Upgrading small items such as light switch and outlet covers can also add a nice touch.
   
5. Maximize Your "Curb Appeal"
   The front of your home is the first thing prospective home-buyers will see, so keeping it presentable is a must. If there is a yard, keep the grass to a reasonable height and if there are trees, be sure to keep the branches under control. The path to your front door should be a clear and welcoming one, not an obstacle course!
   
6. Don't Get Too Personal
   Upon entering your house, everyone will know it is lived in, but they do not need to see all the evidence. Get rid of excess clutter such as newspapers, magazines, and mail. Be sure to put away your laundry and shoes. It may also be a good idea to put away some other personal belongings like pictures on the refrigerator or mantle. For you, the pictures may make a house a home or display your personal touch. For the new homeowner, it may appear too personal.
   
7. Take Care of RepairsWaiting to make repairs until after you find a buyer can be tricky. Depending on the nature of the repairs, you may not be able to find a buyer. Depending on how fast the buyer wants to close on the house, you may not have enough time to make the repairs. Save yourself some time and potential trouble, by making repairs before you list your home. The repairs will have to be made anyway, so it is better to get them out of the way sooner rather than later.

First impressions can make the difference between a sale or no sale. Keeping things simple can give you a leg up on similar houses on the market. (For more, check out 12 Worst First-Time Homeseller Mistakes and Can't Sell Your Home? Rent It.)

Article written by: Tisa Silver

9 Ways to Keep a Lid on Your Energy Bill!

By Paul Bianchina
Inman News™

No one likes wasting money, especially in these tough economic times. So it certainly makes sense -- dollars and cents -- to make a small investment of time and supplies to close up those heat-wasting air leaks around your home. It'll pay back big dividends in reduced energy bills and a warmer, more comfortable house this winter. So let's look at some of the areas where those drafts may be lurking, and see how to take care of them.

1. Doors and windows: This should be an obvious one. If you can see gaps between your siding and your windows or exterior doors, close them up with a bead of clear or paintable acrylic latex caulk. Larger gaps can be filled with foam backer rod before applying the caulking.

2. Exterior penetrations: Some of these areas are going to be obvious, while some may take a little bit of searching. Some examples of exterior penetrations where air can leak into the house include exterior faucets, dryer vents, exterior electrical outlets, exterior light fixtures, holes that have been drilled for phone and TV cables, conduit penetrations, exit points for plumbing drains, and penetrations for air conditioning lines. Closing these penetrations may require a variety of different techniques, including caulk, expanding spray foam, or, in the case of electrical boxes and fixtures, specific gaskets that are designed to fit the boxes.

3. Exhaust-vent covers: Dryer vents, range hood vents, bath fan vents, and other interior ventilation equipment typically terminate outside the house in a plastic or metal cover that has one or more louvers on it. The louvers are designed to be in the closed position whenever the fan is not in use, so that outside air doesn't leak in. Check all of these louvers to be sure they're closing completely, with no air leaks. If they aren't, you can adjust the spring tension to hold them closed more tightly; add foam weatherstripping tape for a more air-tight seal; or replace the entire vent cap with a new one.

4. Gaps around interior vents and recessed lights: Inside your home, heated air can be leaking out around that same ventilation equipment, where vent pipes pass through the walls or ceiling, or where vent covers meet wall and ceiling surfaces. Recessed light fixtures can also be real air-leakers. Around the vent pipes and recessed light cans, seal any gaps with caulking. For the vent covers and recessed light covers, remove the covers, then adjust the springs and/or add foam weatherstripping tape to create a tight seal between the cover and the ceiling.

5. Heat-duct penetrations: Gaps around heating-duct cans where they pass through the floor or wall allow cold air to enter from the crawl space, while gaps around ceiling-duct cans allow heated air to escape into the attic. To close those drafts, first remove the register, then use a combination of caulking and/or metallic duct sealant tape to close any gaps between the sheet metal cans and the floor, wall or ceiling surface.

6. Fireplaces and woodstoves: Lots of gaps can occur around these appliances. With a conventional fireplace, keep the damper closed except when burning a fire to prevent heated air from escaping up the chimney. Consider investing in a set of air-tight doors, which close off the air leaks and also make your fires more efficient. Look for gaps around woodstove and gas fireplace flue pipes, and air leaks around masonry chimneys. Use a metal collar if necessary around flue pipe penetrations, and seal gaps with heat-resistant sealant specially formulated for this application.

7. Attic and crawl space hatches: These can be real air losers if they're not weatherstripped, so take care of that with some foam tape. Make sure the hatches are insulated as well.

8. Interior doors to unheated spaces: If you have any interior doors that lead to unheated spaces, including basements, garages or attics, be sure the doors are weatherstripped to prevent air leakage. If possible, replace older, hollow-core doors with solid-core or, better yet, insulated metal doors.

9. Sill plates and penetrations: This one's not as easy to deal with, but it's well worth the effort to try to do whatever you can with it. Air can leak both into and out of the house through gaps where the sill plate meets the foundation or the siding, and around plumbing and wiring penetrations drilled through wall plates in various areas. If you have a gap between your siding and the bottom of your exterior wall, especially in older homes where the use of sill sealers was not a common practice, consider closing up this big air gap with a bead of caulking or expanding foam. In the basement, crawl space and attic, if you can access any of the pipes and wires that pass through the wall plates, seal the penetrations with expanding foam.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers

High Gas Prices Are Pushing Homebuyers to Go Green!

RISMedia, June 9, 2011—In cities like Los Angeles, where the car is king, the thought of commuters leaving their automobiles behind and opting for public transportation once seemed unimaginable. But CBS Evening News recently reported that Los Angeles commuter rail ridership had increased 8 percent from last year’s figures.

The rules of the road are shifting. High gas prices, climate change, and environmental awareness are altering the real estate landscape. The result is that more people are looking to work closer to home, not only because commuting is becoming more expensive, but also because of growing concern over car-centered life and its impact on greenhouse gases.

The lure of suburban developments, often located many miles from city centers, once offered both a relief from the bustle of urban life, and also the opportunity to get more home for the dollar. But with rising gas prices and hours braving rush hour traffic, the costs are outweighing the benefits.

Add growing awareness of a nation hooked on foreign fossil fuels, and the result is a paradigm shift in homebuyer consciousness.

“When words like sustainability, carbon footprint, and arctic snowcaps are entering our everyday conversations, it’s clear that climate change is affecting homebuyers’ decisions,” says Myra Nourmand, Los Angeles Real Estate Broker and author of the book From Homemaker to Breadwinner.

More than before, consumers are factoring the price they’re paying at the pump as well as their commuting time into their overall buying decision. In addition, the current economic slump means that people are working longer hours for the same pay. Thus long commutes add strain to an already stressed out workforce. Nourmand believes that these are key reasons why buyer demand remains high in areas like Santa Monica, Beverly Hills, Brentwood, Bel Air, and Hancock Park.

Historically, the three-part formula for high curb appeal has been prime location, attractive architecture, and sought-after square footage. The burst of the housing bubble caused a home’s price to take precedence above all else—at least that’s what it seemed like based on media reports. Where Nourmand works, however, location, architecture, and square footage remain at the top of buyers’ priorities.

“None of my clients are short-selling their homes, so you won’t find any fire sales among my listings,” says Nourmand.

In addition, foreclosures and subprime fallout are non-existent within her housing inventory. Meanwhile, comparably prestigious outlying areas, which were often viewed as alternatives to high-end L.A. neighborhoods, have experienced hard times.

“If high fuel prices are the norm—and that’s what the news indicates—then demand for property in desirable neighborhoods near urban centers should remain strong,” says Nourmand.

To learn more about real estate sales trends visit http://www.homemaker2breadwinner.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

5 Ways to Add Luxury to Your Home!

Real estate eye candy is everywhere. And if you love window shopping for homes online, there's a seemingly endless influx of massive mansions listed in the tens of millions of dollars. While their trillion square feet might not tempt you, and their manicured grounds seem like an eco-nightmare requiring a lifetime of landscaping, the luxury amenities and highly customized features do make the living seem easy, right?

Whether you're buying, prepping to sell or simply trying to live the good life in your current home, here are 5 inexpensive ways to add some luxury to your regular home:

1. Spa bathroom upgrades. I’m not saying you have to have a toilet like Whoopi Goldberg’s or anything. Her flusher has been featured on the View, Oprah and all over the web - one site even made up a song about it (the ditty is a bit blue, though, so I won’t link here. The curious can find it online.) But her toilet - yes, the toilet - runs around $7,000!! (No typo, folks.)

In all seriousness, though, spas tend to have a clean, bright look and feel and luxurious stress-busting features that just flush the tension right out of you (pardon the pun) - many of which can be installed in your own home for a fraction of what the dreadlocked one paid for her porcelain potty. For example, pedestal sinks instantly - and inexpensively - open up a bathroom, especially when replacing a dark vanity and wall-to-counter mirrors. I recently put a new pedestal sink in my bathroom for less than $600 - top of the line, including faucets and installation!

Similarly, you can get more of the spa look and experience at home, with a relatively modest investment - especially compared with the lifestyle upgrade for your buck - by installing granite counters (the tiny slab most bathrooms take can run a few hundred dollars), a basic bathtub with jets or river-rock shower floors for under a thousand dollars!

2. Custom, decorative paint treaments. Sponge painting? Très 1990. Murals in your kids’ rooms, entry hall inspirational mantras that greet your guests - paint is one of the least expensive “edits” you can make to your home, and homeowners are upleveling their home’s aesthetics with custom paint in lots of luxe-ey ways.

From harlequin diamonds to chair rails, crown moldings and wainscoating, decorative paint treatments are a simple, cheap and chic method for upping the luxury in your home life.

3. Built-in anything. Part of what makes uber-luxury homes, well, uber-luxurious is the fact that it seems like living life in them would be so neat and clean and easy. One way to get that feel in your very own home is to build in some of the necessities, optimizing the way you use your space and takes great advantage of otherwise unusable areas, generally creating what the feng shui set would deem free-flowing chi.

Consider building in:
•Storage systems. From shelved nooks to closet organizers to garage grids for sports equipment, storage systems eliminate clutter and make sure there’s a place for everything, and that everything has a place. If you can afford a custom cabinet installation or custom closets, they certainly offer the fancy moldings and modules that create luxury appeal. But many home improvement stores now offer much less expensive versions of these systems that look and work great.
•Desks and bookshelves. Like storage, but activity-specific, built-in office equipment maintains order and can turn a dead corner of a room into a highly useful workstation. To replicate this functionality on the cheap, find a corner or nook and put in an armoire-style workstation that closes and folds up when you’re not working. And built-in bookshelves are a time-tested selling point when your home is being sold, by the by, so, if you have an empty area from old-school built-ins which were removed, installing inexpensive shelving might be a great way to go.
•Wine storage. Dead space under the stairs can easily be transformed into a wine cellar or storage space. My own personal wine cellar is where I store my kid’s chocolate milk, my electrolyte water and a bottle or two fish sauce, but it’s a great feature to have at home, no matter what you’ll use it for!
•Recycling/compost/trash centers. Try as we might to minimize it, we all generate trash. Built-in centers with clearly marked waste receptacles make this dirty part of life less messy and more manageable.

4. Dedicated spaces for anything. There’s no need to go all Candy Spelling and dedicate multiple rooms to gift wrapping. But space is a luxury in and of itself, so dedicated space for your film-watching (a theater room), gardening materials, crafting supplies or even the kids’ homework is an extra-special, super-duper luxury, especially if it’s equipped with the right equipment for the activity to which the room, half-room or even corner or nook is dedicated.

5. Automation. Remember the Jetsons? The vision for this century was a fully automated, robotic home that did all the work of life for you, so your time would be free to shop at Mooning Dales or work for Mr. Spacely building sprockets. Most of that hasn’t happened, and that’s probably for the good. But injecting small touches of automation into your home can give it a decidedly high-end feel - for very, very little cash.

(And they're also gadget-ally delicious!)

I personally just put a couple of these automated trash cans- $60 each! - into my own kitchen. They’re hands free, so eliminate the germiness and clunkiness of opening a lid with your hands or feet, and they were the hit of a recent dinner party! (Okay, it was the food, then the trash cans that guests admired. But still.) Many hands-free or automatic household items are available at very low prices, like automatic soap pumps, paper towel dispensers and robotic vacuum cleaners.

Taylor Swift Buys her Parents a $1.4million Dollar Home in Nashville!

Taylor Swift has gone and bought her family a million dollar-plus mini-mansion in Nashville's historic Whitland neighborhood.

Property records reveal it was sold, way back in September 2010, for $1,400,000.

The residence Miss Taylor is rumored to have purchased for her parents, according to listing information, was built in 1925, measures 4,929 square feet and has 4 bedrooms and 5 bathrooms–or 3 bedrooms and 3.5 bathrooms depending where online one looks–including a main level master suite with dual en suite facilities.

A circular drive rolls by the front of the house that at first glance reads a bit plain if pleasantly distinguished, solid and trustworthy. The arched driveway continues around the house to an original concrete-reinforced two-care garage on the basement level. Still waters sometimes run deep and the pretty-ish but mostly banal exterior hints little of the exquisite architectural detailing on the interiors that include wonderfully patinated original hardwood floors, custom woodwork and several magnificently ornate hand-crafted plaster ceilings. In the formal dining room, plaster pilasters line the walls and a shallow barrel-vaulted ceiling is thick with hexagonal plaster rosettes that resemble the surface of the moon.

The original 1925 architecture and the exquisite plaster work installed after the home was built have successfully been married to and integrated with the upscale and up-to-date luxuries and conveniences installed in a recent expansion and renovation. The lavishly long kitchen has a large eating area with a bank of extra-tall windows that offer private and pastoral views of the rear terrace and backyard. A vaulted ceiling with exposed trusses unites the breakfast area with the commodious kitchen well-equipped with white Shaker-style cabinetry, high quality commercial-grade stainless steel appliances, marble counter tops and back splash and an over-sized copper exhaust hood.

A flat lawn plenty wide and long enough to toss a big stick for a large-sized pooch extends from the back of the house but the main outdoor entertaining area is actually located off the side of the house where a large walled garden has blue stone terracing, a water feature and a free-standing outdoor fireplace.

The Swift clan's new Nashville residence is no less luxurious but far smaller than the family's long-time homestead in historic Hendersonville, TN. Property records we accessed indicate that Mom and Pop Swift purchased the 8,396 square foot lake front mansion about 20 miles northeast of downtown Nashville in March of 2004 for $790,000.

Previous to moving to suburban Nashville, property records also show that Mom and Pop Swift owned plain looking but well-located water front residence in the beachy community of Stone Harbor on New Jersey's Cape May that they sold in February of 2005 for $2,425,000, five-times the $485,000 they paid for the place in June of 1997.

Some of the children may recall that in late 2009, at the dewy and tender age of 20, whip-thin and curly-tressed Miss Taylor forked out around two million clams for a glassy penthouse bachelorette pad of her very own at the Adelicia, a newly-constructed luxury apartment complex in downtown Nashville. Her 4,062 square foot crib features a double height living room, four bedrooms each with private pooper, a second level media room, an open plan kitchen and a narrow balcony with city lights view that wraps around two sides of the penthouse's lower level.

Article from :

http://realestalker.blogspot.com/2011/04/your-mama-hears.html

Inexpensive Ways to Boost Resale Value

According to HomeGain.com's newly released 2011 home improvement survey, the top five home improvements (under $5,000) that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:


•Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI)
•Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI)
•Home staging ($550 cost / $2,194 price increase / 299% ROI)
•Landscaping ($540 cost / $1,932 price increase / 258% ROI)
•Repairing electrical or plumbing ($535 cost / $1,505 price increase / 181% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 99 percent of real estate professionals, costing less than $300 and returning a value of nearly $2,000 to the home's sale price, or a 586 percent return on investment.

"Sellers need to prepare their homes for sale before putting them on the market," said Louis Cammarosano, General Manager at HomeGain. "Homes that have initial appeal have a better shot at selling faster and closer to the asking price than homes rushed to the market with no improvements."

Rounding out the top 10 low cost, do-it-yourself home improvements includes: updating electrical systems and/or plumbing, updating the kitchen and bathrooms, replacing or shampooing carpets, painting interior walls, repairing damaged floors, and painting the outside of the home.

The home improvement projects with the highest price increases to a home's resale value are updating the kitchen ($1,265 cost / $3,435 price increase), followed by painting the outside of the home ($1,467 cost / $2,222 price increase) and home staging ($550 cost / $2,194 price increase).

Your Weekly Mortgage News!

"Whistle while you work." Snow White.... That's something more people have been able to do lately, as the labor market continues to steadily improve. Here's what December's Jobs Report showed... and what it means for home loan rates.

The Labor Department reported that 103,000 jobs were created in December, and private job growth was 113,000. While these numbers were below the recently ramped up expectations, they do show that the trend in the labor market is improving. Also noteworthy are the upward revisions to the prior two months readings, showing 70,000 more jobs created than had been previously reported.

And yet, the real shocker in the report was a significant decline in the unemployment rate to 9.4%, which is the lowest unemployment rate since May of 2009.

So what did we learn from this Jobs Report?
1. While positive news, this Jobs number was still soft enough to support the Fed continuing on their plans for a full dosage of QE2 for the economy... and this won't be good for Bonds and home loan rates, as it carries along some real inflation threat down the road.
2. The recent tax package and lower tax rate extensions have not yet had enough time to be seen or felt in the economy, so those factors should help provide further improvement in the labor market in future months... but also will create inflation - bad news for Bonds and home loan rates.

The bottom line for right now is that the familiar chant "Don't Fight the Fed" continues to ring true. The Fed is intent on creating inflation, lowering the unemployment rate and raising Stock prices...and they have already been somewhat successful. QE2 will likely keep coming until the employment picture improves significantly, and this is all going to be unfriendly for Bonds and home loan rates ahead.

So what should you do if you have been thinking about purchasing or refinancing a home? The good news is that home loan rates are still extremely attractive right now, so call or email me now to get started.

Mortgage Weekly News From: Shane Atwell @ Primary Residential Mortgage.

"Where Do We Go From Here??"

Where do we go from here?

That question from Alicia Keys? song is on the minds of many Americans, as they wonder where home loan rates are headed after the recent negative news for Bonds.

Last week, Congress was busy at work on negotiations to extend the Bush-era tax cuts. That news kept a lid on any improvement for Bonds and home loan rates, due to the prospect of an ever-increasing deficit.

And adding to the troubles for Bonds and home loan rates last week was news that inflation is growing in China... and growing fast. How does that impact us? Remember, it's a global economy, so Bond prices all over the world worsen on news of inflation, which is bad for home loan rates.

So the big question is: Will home loan rates go back down? Although rates are still near historic lows, they have been headed up... and indications are that those unbelievably low home loan rates may be behind us. In fact, there are only a few things that would bring back the lows that we saw in early November:

• If the tax cut package doesn't get passed, it would be very bad news for the economy and Stock market - but it would help interest rates.

• If the Fed's recent round of Quantitative Easing falls on its face and doesn't meet its mission of creating inflation, boosting Stock prices, lowering unemployment and creating consumer demand - Bond prices could make some gains as the threat of deflation reemerges. But this is a long shot.

• If the financial problems in Europe worsen significantly - which would drive investors into the safe haven of the US Bond market - it could help Bond prices, but probably only modestly.

Realistically, the chances of these events happening are unlikely - and in the end, rates may see some brief and fleeting improvements, but many experts believe they will likely continue to creep up over time. And when you include the stimulative action of extending the present tax rates and adding further cuts, it's tough to see Bonds or home loan rates improving much.

The good news is that home loan rates are still extremely attractive and are still near historic lows for now. If you or someone you know has been thinking about purchasing or refinancing a home, NOW is the time to call or email to get started.

Info from: Shane Atwell from Primary Residential Mortgage

The Icon

I am currently working with a client that is interested in The Icon. I found some great information and wanted to share. Enjoy :)


The Icon In Nashville is a luxury condominum development with outstanding views of downtown Nashville, and all popular ammenities for the urban lifestyle. Great views of the Gulch and walking distance to awesome restaurants!

Following are the sales of Icon condos so far in 2010. I was surprised to see that the development is almost sold out.

■ 136 Icon condos are sold so far in 2010
■ Average sales price of Icon condos has been $273,105
■ Average price per square ft has been $311
■ Average size of condos sold in the Icon has been 877 square ft
■ 9 Icon condos are currently pending
■ 24 Icon condos are currently listed in the Nashville MLS as available for purchase

To receive a list of available condo's in The Icon email me!

When to Invest in Your Mortgage Instead of Stocks

With rates at record lows, should you accelerate mortgage payments or invest in the market? And what's next for bond investors? Financial adviser Kurt Brouwer, editor of MarketWatch's Fundmastery blog, talks with Jonathan Burton.

10 Reasons to Buy a Home RIGHT NOW!

Enough with the doom and gloom about homeownership. Brett Arends explains why owning a home is a good thing.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.


The Sept. 6 cover of Time magazine: This is what capitulation looks like.
.After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

Brett Arends discusses why he thinks now is a particularly good time to buy a home.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.


The June 13, 2005 cover of Time.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

This Month In Real Estate: September 2010

Homebuyer tax credits totaled $391M in Tennessee!

Tennessee benefited from $391 million in homebuyer tax credits, a Government Accountability Office report said.

The watchdog spending group sent a letter to Rep. John Lewis, chairman of the subcommittee on oversight and committee of ways and means, in the report, which states more than $20 billion was claimed in homebuyer tax credits nationally.

Tennessee ranked 13th nationally in total tax credits received. California claimed nearly $2 billion in tax credits, the report said.

Neighboring states Kentucky, Georgia, Alabama and Mississippi brought in a respective $219 million, $538 million, $231 million and $139 million.

Tennessee also ranked 13th nationally in tax credit dollars claimed per resident based on 2009 population figures at $62.16. Nevada’s residents saw the greatest dollar per resident figure at $89.74 in homebuyer tax credits



Read more: Homebuyer tax credits totaled $391M in Tennessee - Nashville Business Journal

Benefits of Homeownership.

by Carla Hill

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.

Published: March 22, 2010

Paying Off the House in 15 Years...

By AMY HOAK

A growing number of homeowners are choosing to pay down their mortgages at a faster rate--even if it means a substantial jump in their monthly payments.

Between January and June, 26% of homeowners who refinanced chose a 15-year fixed-rate mortgage, according to data from CoreLogic, a provider of financial, property and consumer information. During all of 2009, 18.5% of borrowers who refinanced opted for a 15-year term.


What's prompting the shift to shorter loans? Historically low interest rates for fixed-rate mortgages.

Homeowners are doing the math and realizing that rates have fallen enough so the increase in payment between a new 15-year mortgage and their current loan is no longer unbearable for their budgets, says Bob Walters, chief economist at online lender Quicken Loans.

The average rate on a 15-year fixed-rate mortgage was 3.86% for the week ending Aug. 26, according to Freddie Mac's weekly survey of conforming mortgage rates.

A Change in Thinking

The financial situation of those capable of refinancing today is a factor in the shift, Mr. Walters says. These people typically are homeowners with the best credit and the most equity -- and, therefore, most suited for a shorter-term loan.

But there might be some other psychology at work. "We're seeing a different view on debt than maybe we've seen in the past," he says. Today, homeowners are saying, "I really want to pay this off. I'm going to bite the bullet and take the payment and work toward paying this down."

A 15-year mortgage also acts as somewhat of a forced savings account for homeowners, says Leif Thomsen, chief executive of Mortgage Master, a privately owned lender, given that the higher payments help a borrower pay down the principal at a quicker clip.

This is a huge shift in borrower thinking. "There was a drive a couple of years ago to take out the biggest mortgage that you could and use all of the money you would have otherwise had in the house and put it into stocks and bonds--to think of your house and mortgage as part of your entire investment portfolio," says Amy Crews Cutts, deputy chief economist for Freddie Mac.

"That worked for people who do investment finance for a living and are good at managing accounts," she says. "But for the average person, debt is a drag on their psyche as well as their overall budget." Many Americans have reverted to the goal of paying off their house and getting rid of their mortgage, Ms. Cutts adds.

Doing the Math

Refinancing into a shorter-term mortgage isn't a strategy for everyone, however.

Choosing a shorter term usually means you'll get a better rate--and you'll pay much less interest over the life of the loan--but a shorter time frame ramps up monthly mortgage payments.

For example, with a 4.5% interest rate on a 30-year fixed-rate mortgage of $200,000, you would have a monthly payment of $1,015, including principal and interest, Ms. Cutts says. The monthly payment jumps to about $1,480 with a 4% interest rate on a 15-year fixed-rate loan.

Of course, if the refinancing borrower's current 30-year loan has a higher rate, the difference between the monthly payments could be lower. Still, you should count on some increase in monthly payments.

In general, Mr. Walters says, those who choose 15-year fixed-rate mortgages are older and have more equity and less debt than other folks. They also earn higher incomes and don't have some of the added expenses that younger homeowners typically do.

"People who are taking these loans are financially stable and can afford the payments, but at the same time are planning on staying in their home for an extended period of time," Mr. Thomsen says.

Mr. Walters says you shouldn't take on a 15-year fixed-rate mortgage unless you have substantial savings, including at least a year's worth of living expenses in liquid accounts.

Also, he recommends having a debt-to-income ratio below 35%. So if you have a gross salary of $5,700 per month, for instance, your monthly debt--including any mortgage payments, taxes, insurance, homeowners-association dues as well as auto and student loans and credit-card debt--would have to be a max of $1,995 to get a 35% ratio.

Make That Extra Payment

Borrowers who don't meet those standards, or are worried about future loss of income, might be better served taking a longer-term mortgage but making extra payments on the principal to pay off the loan faster, says Mr. Walters.

For instance, if you refinance a $200,000 mortgage into a 30-year loan with a 4.5% rate, and then apply $100 of the savings to the principal payment each month, you'd save $31,700 in interest over the life of the loan, Ms. Cutts says. And you would pay off the mortgage in 25 years, instead of 30, she adds.

What's more, you would have the flexibility of not paying that $100 in months when money gets tight. "Maybe today you're feeling flush with money. Maybe you're worried in the future that income might change," Ms. Cutts says. With a 30-year mortgage, you have more flexibility. "Shortening to 15 years is a pretty big bump in payment."

—Read more at marketwatch.com.

Would you live in this TINY house??

WOULD YOU LIVE IN THIS TINY HOUSE??

Squeezed next to a centuries-old shrine in this historical city stands a slight, two-story abode that looks modern, but is meant to embody the spirit of Kyoto's homes of the past.

The all-white structure with a dramatic glass façade is long and thin, curving slightly to the right, and is comprised of a main living area just over 6½ feet wide, with two wings on each side. In one wing is a little alcove that serves as the children's play area; in the other is the bathroom. The back of the home holds the kitchen, while a spiral staircase leads to a second room and a loft, measuring about 6½ feet by 7½ feet at its narrowest, that serves as the shared sleeping room for the family of four.

Info gathered from:

http://online.wsj.com/article/SB10001424052748704901104575423800962191046.html?mod=WSJ_RealEstate_LeftTopNews#project%3DSLIDESHOW08%26s%3DSB10001424052748704476104575439733893090418%26articleTabs%3Darticle
Original article written by:
By YUKARI IWATANI KANE
KYOTO, Japan

Would you Live in This Barn??

Here is a $2.45

million barn

like home in

Austerlitz, NY.

A four bedroom, five bathroom home on 72 acres in a rural community 120 miles north of New York City.





This 2008 barn like home is made in 2 different sections: one farmhouse like structure and one built like to look like a barn, which are connected by a glass atrium entryway.





Would you live here for $2.45 million??

resources from: wall street journal/real estate

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