Last year, we purchased a 1947 home. Since then, we’ve noticed a lot of new cracks in the plaster walls and some unevenness of the floors. Before buying the house, we had a home inspection, but our inspector did not check the foundation crawlspace. He said that he’d forgotten to bring his overalls and would have to forego that part of the inspection. Am I being overly paranoid or is there a potential foundation settlement problem that our inspector failed to see?

Inspection of the crawlspace is a vital aspect of a thorough home inspection. Your inspector’s omission of this procedure, on the slim excuse of forgotten overalls, begs for an appropriately outrageous analogy. He might have omitted the roof inspection because he’d forgotten to bring his ladder. He could have disclaimed poorly lighted areas because his flashlight batteries were dead. Lack of a screwdriver might have prevented inspection of the electric service panel. He could have declined to provide a written inspection report because he’d forgotten to bring a pen, or he could simply have explained that he wouldn’t be inspecting the house at all because he’d forgotten to get out of bed that morning. (more…)

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Have you been writing off your mortgage interest and real estate taxes correctly on your federal income tax filings? Or maybe not? Whatever your answer, an influential Capitol Hill committee believes tens of thousands of homeowners have been deducting a lot more than they should — to the tune of hundreds of millions of dollars a year. Now the nonpartisan congressional Joint Committee on Taxation has proposed to the Senate and the House that they consider plugging two revenue-losing loopholes in the system, and crack down on homeowners who are deducting too much.

Under current tax code rules, homeowners are permitted to write off local and state property taxes that are assessed on the basis of property valuations. But commonplace special levies and user fees — for governmental services that mainly benefit individual houses or neighborhoods rather than the entire municipality — are not deductible. Special parkland improvements, sewers, sidewalks, garbage collections, landscaping, tennis courts and a long list of others sometimes are funded by tax levies on the property owners directly benefited. Local governments typically include their special benefit levies in with their regular property tax bills when they send them to homeowners, but they do not report the itemized breakdowns to the federal government. (more…)

search for : mortgage interest, real estate taxes, homeowners, state property taxes

One of the many oddities of real estate investing is that the best time to plunge in is usually just when things are starting to go south – meaning now. While momentum is starting to carry the market down, home prices are still out of range for a lot of would-be buyers, which helps to buoy rents. Further burgeoning the tenant ranks are the thousands of homeowners selling now in the face of rising interest rates. According to the National Association of Realtors, rents nationwide are expected to jump an average of 5 percent by year’s end.

First, inventory is shrinking: Public universities have suffered from continual belt-tightening in recent years, leaving most without money to upgrade or build out dorms and other housing units. Second, demand is skyrocketing: Colleges are starting to see a surge in admissions, especially from so-called echo boomers, the children of baby boomers. For investors, that adds up to remarkably low vacancy rates near campuses. Prime Property owns 21 apartment buildings in five college towns in Florida and the Midwest, and Zaransky says “we are 100 percent occupied” – even during summer months. (more…)

search for : real estate investing, echo boomers, college towns

A great teacher taught me years ago that many of the nuances of real estate law only matter when it matters. How you hold title is one of those nuances and it really matters when it matters. Consider the case of one of our distraught readers whose significant other had placed both their names on the title in Joint Tenancy more than three years ago. Just a few months later, the relationship went south, and the significant other wanted to switch everything back the way it was before the Joint Tenancy agreement.

The problem was this reader pointed out that she had “made monetary contributions to ALL the upgrades done within the house, paying for 90 percent of the total renovations done which has increased the value of the property as well. I contributed to the household over the years I was there, but did not specify that these funds went to the mortgage, and these funds went to whatever. I just want to be fairly compensated for my “loss.” As a Joint Tenant, technically I am entitled to 50 percent of the equity, right? I am not on the loan. Help and fast. He sent me a letter from a lawyer and I want to make sure I know what I am talking about before I respond.” There are several ways of holding title to property and if what this person wrote is correct, asking for a quit claim deed is not one of the guaranteed 50 ways to leave this lover without an interest in the property, or at least a court appearance. (more…)

search for : real estate law, Joint Tenancy agreement, holding title to property, quit claim deed

As the housing market continues to cool, higher interest rates have increased the mortgage payments for homeowners who have adjustable rate loans, or ARMs, causing the number of them defaulting on their mortgages in default to rise. On The Early Show Thursday, money maven Ray Martin spelled out the problem, and offered advice to homeowners finding it harder and harder to make their mortgage payments:

According to Moody’s Economy.com, the percentage of mortgages with delinquent payments has risen nationally to 2.33 percent, the highest level since 2003. The metropolitan areas that saw the biggest increase in mortgage delinquencies include McAllen- Edinburg-Mission, Texas; Merced, Calif.; Fort Smith, Ark.-Okla.; and Las Vegas-Paradise, Nev. It’s expected that mortgage defaults — in which a borrower misses one or more payments on a loan — will increase when the economy weakens and job losses rise. Typically, higher job losses translate into a higher percentage of homeowners missing loan payments. At this time, the percentage of home loans in default at 2.33 percent is closer to the historical average. (more…)

search for : higher interest rates, mortgage payments, adjustable rate loans, ARM

I believe I spent about $6,000 over 14 years upgrading the electricity in the last house. I had an electrician who believed that if the squirrels hadn’t chewed the knob and tube to shreds, you blend it with the other generations of wiring, update and upgrade where needed, reorganize the box and work from there.

Test all smoke alarms at least once a month, following the manufacturer’s instructions, or push the “test button” on the face of the alarm cover. Put new batteries in your smoke alarms at least one time each year; sooner if the alarm makes a regular chirping signal, indicating low battery power. If smoke alarms are more than 10 years old, buy new smoke alarms. When possible, use interconnected smoke alarms. Hard-wired, interconnected alarms with battery back-up run on your household wiring and are tied in together so that if one alarm operates, they all signal together. Also, wireless technology is now available to enable homes to have an interconnected smoke alarm system that can be installed independent of household wiring. (more…)

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Real estate market downturn creates strange bedfellows as brokerage sleeps with the enemy. The U.S. real estate market may be running out of steam, but the downturn may be helping to clear the air of mistrust between traditional realtors and the Internet community as two realty firms announced groundbreaking deals with Google and Microsoft.

Late Thursday, Prudential California/Nevada/Texas Realty, one of the largest real estate brokerages in the United States, said it will make its property listings available for search on Google, a watershed move for a major player in an industry that jealously guards its listing data.

In another air-clearing announcement, John L. Scott Real Estate, a Pacific Northwest-based realty company, said it will expand its use of Virtual Earth, Microsoft’s satellite and aerial imagery service, to home shoppers in Portland, Oregon, and Vancouver, Washington. (more…)

search for : real estate market, realtors, Google, Microsoft, Virtual Earth

University life, for many traditional students, is one of few bills and responsibilities. However, every spring, new graduates enter the real world of full-time careers, families and mortgages. The average traditional student will first encounter mortgages in their first attempt to buy a home, without prior knowledge of what mortgage brokers are looking for and what they need in order to be able to approve them.

Lenders require a copy of one’s driver’s license and social security card. If loan seekers have been renting, they must bring in the contact information of their landlord. They must also bring the most recent two months of bank statements for all accounts including stocks, checking, savings and money market accounts as well as tax information for the past two years and pay stubs for the past 30 days. It is wise to contact the loan agent prior to your meeting in order to make sure that there are not other requirements for that individual lender. Once the loan seekers have made their appointment with a lender and have gathered all of the information that is, necessary there are four things that lenders look at in order to approve loans: credit worthiness, cash on hand, income/job stability and debt ratios. (more…)

search for : mortgage, mortgage brokers, loan agent, loan seekers, credit worthiness, debt ratio

If you need a break from the everyday routine, let your mind escape to the thought of a trout-filled mountain stream cloaked in autumn color. And then take it one step further and get out there and fish! With more than 4,000 miles of trout streams and three species of trout, there is a trout fishing opportunity closer than you think – even in metro Atlanta.

The Georgia Department of Natural Resources, Wildlife Resources Division (WRD) has made it even easier by designating a 1.3 mile section of the Toccoa River as a fifth delayed harvest stream. Georgia trout streams are designated as seasonal, year-round or delayed harvest and different streams offer varying populations of rainbow, brown and brook trout. Delayed harvest streams have special regulations from Nov. 1 – May 14, including catch-and-release only fishing and the use of artificial lures only.
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search for : Georgia Department of Natural Resources, Toccoa River, delayed harvest stream, Georgia trout streams

Everyone, no matter how rich or poor, enjoys saving money. For example, a few weeks ago a multimillionaire real estate investor friend took me to a lavish lunch, which must have cost him at least $100. As we were leaving the restaurant, he saw the city “meter maid” coming down the street. All of a sudden he sprinted to beat her to his Lexus with an expired parking meter so he wouldn’t get a $20 parking ticket.

A few years ago my insurance agent made a wise and profitable suggestion. He said I should cut my liability coverage on each of my properties to $300,000 and take out a $2 million “umbrella policy” to give me better coverage at lower cost. Don’t tell the insurer, but my $700 annual premium for $2 million excess liability coverage is a genuine bargain. If you have net worth over $1 million, you can probably save money by following the same strategy. Check with your current insurance agent, plus one or two others, to see if a similar tactic can save you insurance premium dollars and obtain better protection. Incidentally, my umbrella liability insurance policy not only provides excess coverage for insured property liability, but it also provides automobile liability coverage if I should be at fault in an auto accident. (more…)

search for : insurance agent, liability coverage, umbrella liability insurance policy

Because of rising fuel and other raw-material costs, consumers will likely face higher prices for furniture in the coming months. They will also see more offerings at the high end of the market, say participants who are convening this week in High Point, N.C., at High Point Market, a twice-yearly meeting of the nation’s home-furniture manufacturers, retailers and designers. That is because more U.S. companies are abandoning the lower and middle-tier to the likes of Wal-Mart Stores Inc. and Rooms To Go to focus on lucrative luxury customers — and the interior designers they hire.

The higher prices and bigger-ticket goods come as the U.S. furniture industry is facing tough times. U.S. retail sales of furniture and bedding rose 7.2% to $83.23 billion for the 12 months ended in June, according to a monthly furniture-industry report by investment bank Mann, Armistead & Epperson. But more of those goods are being made overseas, particularly by lower-cost manufacturers in Asia. Home Depot Inc. sources nearly 60% of its merchandise overseas. Overall, last year, 43.1% of all furniture sold in the U.S. was made overseas, compared with just 24.3% that was manufactured abroad 10 years ago. (more…)

search for : furniture, home-furniture manufacturers, Wal-Mart

Imagine back-road tours of scenic countryside, well-tended vineyards bursting with ripe grapes, delicious wine, charming tasting rooms, authentic regional cuisine and historic accommodations. That sounds like the travel brochure for a tour of French or Italian wine country, but all these things are available a short drive from Charlotte. The N.C. wine industry has grown in the last couple of years. If you haven’t discovered the pleasures of a winery visit, treat yourself on one of these beautiful fall afternoons.

Wine is not new to the Carolinas. Scuppernongs are North Carolina’s official state fruit. In fact, before Prohibition, North Carolina was the largest wine-producing state in the country. But it wasn’t until the 1970s that Westbend Vineyards in Lewisville planted the first vitis vinifera, grapes of European descent like chardonnay, sauvignon blanc, riesling, cabernet sauvignon and merlot. These European varieties do well in the central and western portions of the state, and produce a dry style of wine. While grapes will never replace the more traditional tobacco and soybean crops, many hope wine-making and its kissing cousin, tourism, will help replace lost textile and manufacturing jobs. (more…)

search for : vineyards, wine, N.C. wine industry

Until your home sells to a willing buyer and the sale is closed, nobody knows for sure how much your home is really worth. But there are three methods that will help guesstimate your home’s fair market value until you actually close the sale. Internet market-value estimates. Don’t laugh! In the last few years, computerized Internet market-value estimates for houses and condominiums have become remarkably accurate. My first experience with an Internet appraisal was three years ago when I obtained a home equity credit line secured by my vacation-home condo. I estimated it was worth $125,000 at the time. But Wells Fargo Bank used a computerized appraisal to determine the market value was $150,000 so they approved a $100,000 credit line without a formal appraisal.

Today, homeowners can obtain free Internet market-value estimates from several sources. The newest is at www.Zillow.com. This advertiser-driven Web site seems quite accurate, based on several properties I entered where I am familiar with their market values. However, Zillow doesn’t yet cover the entire nation so don’t be disappointed if your home isn’t included. What I found especially amazing is Zillow includes, in most situations, an aerial photo of the property and even the lot boundary lines! In another situation where I entered a condominium along with the value estimate, Zillow included a map showing the precise location. (more…)

search for : fair market value, computerized Internet market-value, home equity credit line, vacation-home condo, Wells Fargo Bank, www.Zillow.com

America is facing a crisis when it comes to electricity. But also a tremendous opportunity. The forces that put us here look grim. Energy prices are high, supplies are increasingly tight, and anxiety is growing about climate change. But that dark outlook is driving consumers, utilities and public officials to finally take advantage of innovations that could radically reshape the nation’s power consumption without lowering the standard of living.

Most urgent, of course, is the skyrocketing demand for electricity — and the tightening supply. Many parts of the country set new records for electricity use in July and August, which sent a warning signal to officials that they have little time to act. Conservation seems a much more feasible solution than quickly building dozens of new power plants to add generating capacity — especially if reducing emissions is a goal. The fact that the nation’s energy bill totaled $296 billion last year, up nearly 50% from 1993, also provides impetus. We’ve also gotten smarter about saving energy. New technology makes it possible to build more-efficient hardware without breaking the bank. And public officials now have much better data to draw on when they plan conservation efforts. They know what’s worked in the past and can build on that success. (more…)

search for : Energy prices, power consumption, standard of living

A weekend exposition will showcase a hot trend in home building — the high-end log home. Tim Dearman is particularly passionate about log homes. Dearman just finished building his log home in Avery Park, which he’s now selling. “It’s almost depressing when you realize a dream,” he said, adding that he and his wife, Cindy, have already designed the plans and purchased the land for their next “dream” log home.

Log homes are built primarily with unplaned logs, which provide good insulation and give the home a cozy, rustic feel. Timber framing uses natural wood as well, but the wood has been cut and planed, is only exposed on the interior of the home, and feels a bit more elegant, Wertheim said. The craftsmanship of both styles is part of what attracts people to these houses. Timber framing uses post and beam and mortise and tendon-pegged construction. This authentic craftsmanship attracts a certain type of person,” Wertheim said. “They’re typically active, outdoorsy, attracted to nature.” Buyers also are typically older and building second or retirement homes, Wertheim said. The majority of his clients are older than 50. (more…)

search for : log home, Timber framing

Qualifying for a loan on a second home is easer than it was just five year ago and “two houses are better than one” is now the thinking among a growing number of homeowners. These days, one of the hottest segments of the real estate market is for second homes. Several factors have driven this burgeoning second home market, including housing price appreciation and the favorable interest rate environment of the last several years. What’s at the core of the trend, however, are easier financing options and an aging baby boomer population seeking more spending outlets.

As recently as five or six years ago, extra hurdles got in the way of hassle-free financing of that second property. Lenders often viewed second homes as a higher risk, meaning buyers had to pay slightly higher interest rates and fees and larger down payments. Today, the guidelines of financing that secondary home nearly mirror those of a primary residence as lenders adapt to changing demographics with the help of sophisticated technology that better assess buyer risk. Such tools enable lenders to offer new home loan programs to address the buyer’s needs. Interestingly enough, five to 10 percent down payment is common in second homes. There are a couple of strategies that have been considered by buyers looking to keep their cash liquid and not tied up in a second-home transaction. Tapping into the available equity from a primary home with a cash out refinance loan, especially if the rate is low enough on a first lien refinance mortgage, is one way to fund a down payment on the second home. (more…)

search for : second home, homeowners, interest rate, financing, down payment

Seven U.S. real estate brokerage firms unfairly blocked some home sellers from their listing service, the Federal Trade Commission said Thursday.The FTC settled its case against five of the real estate brokerage firms and is suing two more for “anticompetitive rules or polices.” The brokerages withheld access to a valuable real estate listing service if the seller did not sign up for a wide range of brokerage services, the FTC said. That action limited consumers’ ability “to obtain low-cost real estate brokerage services,” the FTC said in a statement.

Under traditional listing agreements, property owners appoint a real estate broker to act as an exclusive agent and pays when the property is sold. An alternative, and typically less costly, arrangement preserves the property owner’s right to sell without extensive help from the broker. The FTC faulted the named brokerage firms for denying full listing services to sellers who sought this alternative arrangement. There are several hundred such real estate brokerage listing services around the country that dominate the regions they serve, said Jeff Schmidt, director of the commission’s Competition Bureau. “The value they provide can sometimes be abused,” Schmidt said, and the FTC has several more such investigations “in the pipeline.”
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search for : real estate brokerage firms, Federal Trade Commission, real estate listing service, low-cost real estate brokerage services

Fall is already in the air, which means that another chilly winter can’t be too far behind. So before the cold weather arrives and you snuggle up indoors again, here’s your annual homeowner maintenance checklist of things to do to get your home ready for the change of season.

Check smoke detectors: Please don’t neglect that smoke detector any longer! Take some time right now to check the operation of detectors and to change the batteries. If you have an older house with a limited number of smoke detectors, you really need to install some additional ones. Battery-powered smoke detectors are inexpensive and very easy to install, so add one to each bedroom and make sure there is one centrally located on each level of the home as well. Install a carbon monoxide detector:A fire is not the only danger you can face inside your home. As houses get closed up for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a furnace, fireplace, water heater or other appliance that is fueled by propane or natural gas, now is the ideal time to install a carbon monoxide detector. They’re available inexpensively from many home centers and retailers of heating system supplies, they’re an easy do-it-yourself installation, and they can truly be a lifesaver! (more…)

search for : homeowner maintenance checklist, Battery-powered smoke detectors, carbon monoxide detector

If you regularly count on Goodwill, the Salvation Army and others to find homes for what won’t fit in your attic, garage or spare room — all while getting a charitable tax deduction — do your spring purging now. That’s especially true if you commonly fudge the value of donated items. In 2007, the Internal Revenue Service will hold you accountable for accurately documenting the value of donated goods under a new tax edict tucked away in the Pension Protection Act of 2006, signed by President Bush this summer.

The broader act is aimed at curing the ailing defined-benefit pension system but it includes a host of unrelated provisions, including one that governs required, accurate documentation when you claim tax breaks for gifts, including household goods trucked off to charitable organizations. Under the current law, the IRS pretty much takes you at your word when you claim a tax break for donations of money or items you’ve valued at up to $250. Documentation is required for larger amounts and, of course, if you are audited. Next year, you might want to put a check in the Salvation Army’s Christmas Kettle and make sure that futon is really worth $50 — if you take the deduction. (more…)

search for : Salvation Army, donated goods, Pension Protection Act of 2006

Whether you are a novice or “old pro” real estate investor, or a real estate agent involved with residential properties, “Buy Even Lower” by Scott Frank and Andy Heller is a “must read” book. Written with easy-to-understand explanations, including many real-life examples, these successful investors reveal their three investment strategies and how to profit from each one.

The authors favor buying “ugly and awful” properties, no matter what their intent is for that property. They like middle-income neighborhoods and houses with three bedrooms and two bathrooms. But they avoid near-perfect houses, which they leave to the “retail buyers” who will pay full market value. Although the authors have bought houses listed for sale with realty agents, and have purchased residences in the various phases of foreclosure, they clearly favor buying REO (real estate owned) from lenders after the foreclosure sale if there were no bidders at the auction. Their reason is there is no emotion involved with the homeowners, and REO sales are strictly business transactions. (more…)

search for : real estate agent, real estate owned, lenders, foreclosure sale

Even in sunny San Diego, California, the weather has taken a turn and is cooling off, and that means it s a good time to make sure that your home is energy-ready for winter. Keeping utility costs down doesn t have to be a high-energy task, especially if you prepare for the cold weather. The Consumer Energy Center Organization offers numerous tips to prevent your heating dollars from being wasted.

Perhaps the biggest waste of energy is when heat escapes through leaks in windows, doors, fireplace dampers, ducts, wires, and pipes. A well-sealed home is an energy-efficient home that can save you as much as 10 to 15 percent on your heating bill. To make sure your home isn t losing heat through leaks, be sure to check the caulking and weather-stripping, and replace or repair it before you turn on the heater. Seal the holes around plumbing vents as they can cause a great deal of heat loss since they begin below the floor and extend upward through the roof. (more…)

search for : Consumer Energy Center Organization, windows, doors, fireplace dampers, ducts, wires, and pipes

On its way through the clouds, the muddy road up north Georgia’s Brawley Mountain winds past thickets of century-old forests and, rangers say, the occasional golden-winged warbler. The species’ population in Georgia has dropped in recent years, and forest managers have detailed a way to reverse the trend: Thin out 725 areas of the thick trees on the mountain and elsewhere to create clearings where the birds and other creatures that need open space can thrive.

Elsewhere, the U.S. Forest Service’s updated management plan is pressing a similar strategy. In the mountain forests of Virginia, Tennessee and North Carolina, rangers are promoting thinning to increase the white-tailed deer’s numbers and revitalize the ruffed-grouse population. Conservationists, though, say that the Forest Service has a hidden agenda. Forests have a way of developing their own openings, mainly through harsh weather or with the help of beavers. Stepping in now to aid a handful of species that aren’t threatened or endangered is an excuse to allow more timber sales in national forests, they say. (more…)

search for : Georgia’s Brawley Mountain, U.S. Forest Service, white-tailed deer, ruffed-grouse

During the real estate boom’s peak from 2002 to 2004, the National Association of Realtors (NAR) saw memberships soar 26 percent. Today, over 1.2 million Americans call themselves Realtors. But the exuberance couldn’t last forever: the NAR forecasts existing home sales to fall 7.6 percent in 2006. Agents, who work on commission, are already beginning to feel the bite.

Real estate is a notoriously difficult industry for newcomers. The NAR reported in 2005 that those who have been in the business for two years or less had an average income of only $12,850 a year. Long-time brokers – those with at least 26 years of experience – had an average of $92,600. “You’ve got a lot of people who got into the business in the last two to three years who never really had to do the hardest work of an agent, people who were basically picking low-hanging fruit,” said Fryer. “Now they’re suffering the most.” (more…)

search for : real estate boom, National Association of Realtors, NAR

Few areas are as fertile for growing golf courses as the Sandhills region of North Carolina. The ideal soil and terrain have sprouted 43 of them over the years, anchored by the venerable No. 2 course at the Pinehurst Resort. Donald Ross’ masterpiece has inspired a number of top-notch tracks in the region many call the home of American golf. Here’s TravelGolf.com’s list of the Pinehurst area’s top 10 courses.

Pinehurst No. 2: Early on, No. 2 may lull first-timers into thinking they’re playing just another pleasant Sandhills course. Then you get to the greens. Why does my ball keep rolling back to me? Notice the diabolical upside-down-bowl shape? Ross called it the ultimate test of golf. Pinehurst No. 4: Tom Fazio’s mission was to create a modern golf experience in a historical setting at the core of the old resort, and to give golfers a play that stacks up to No. 2. (more…)

search for : Sandhills region of North Carolina, Pinehurst Resort, TravelGolf.com, Pinehurst No. 2, Pinehurst No. 4, Tom Fazio

Every eight seconds, another baby boomer turns 60. And as the trendsetters of the generation head for retirement, they’re yearning for their dream homes. But their idea of housing utopia doesn’t necessarily hinge on spending quality time with the grandkids, according to a study commissioned by publisher Hanley Wood and released this week at the company’s American Housing Conference in Chicago. More than a third said their adult children and their own parents are not a consideration in creating their dream homes. Sixty-three percent said enjoying their home after age 60 is a priority above or equal to spending time with the grandchildren, and just 35% said they’d relocate to be closer to family and loved ones.

Although about half of those surveyed said they’d move to downsize from a larger, child-centered home with a huge lawn, they’re not exactly willing to downgrade. One in three boomers surveyed believe they have more house than they want or need in the future. But they also want to furnish that smaller space with quality amenities. “This generation wants upscale living with less complication. They want their homes to be manageable, temperate, affordable, flexible and accessible,” Tom Flynn, president of Hanley Wood Market Intelligence, said in a news release. The study also found that these “leading edge” boomers don’t seem to be moving en masse toward urban areas, as some have perceived. Of those surveyed, 67% said they would rather live in the suburbs and 14% said they would rather live in a rural area. (more…)

search for : downsize, boomers

Reverse mortgages have become hot items on the financial planning market. A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner through an established line of credit. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer uses the home as their principal residence, sells the home or dies.

The three basic types of reverse mortgages are single purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations; federally insured reverse mortgages, which are known as Home Equity Conversion Mortgages, and are backed by the U.S. Department of Housing and Urban Development; and proprietary reverse mortgages, which are private loans that are backed by the companies that develop them. To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration requires that the borrower is a homeowner, 62 years of age or older; owns the home outright, or has a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. (more…)

search for : Reverse mortgages, mortgage payments, line of credit, single purpose reverse mortgage, federally insured reverse mortgage, Home Equity Conversion Mortgage, proprietary reverse mortgage

Increases in housing prices have slowed drastically in many markets. But between 2000 and 2005, appreciation was fantastic, according to new data released late last month by the Census Bureau. Nationally, real median home values soared 32 percent during the five-year period. But in some markets, values rose three or four times that. “Just about anyone who owns a home or has been in the market for one in the past few years knows first-hand how home values jumped from 2000 to 2005,” said Census Bureau Director Louis Kincannon.

According to the survey, more than two-thirds of the nation’s total occupied housing units were occupied by their owners in 2005. Among the country’s 15 largest cities, Jacksonville, Fla., had the highest percentages of owner-occupied housing units at 64.2 percent. Of the 15 largest smaller cities, Missouri City, Texas, had the highest percentage of owner-occupied units at 88.6 percent. Boynton Beach had an owner-occupancy rate of 72.9 percent and Folsom, Calif., had a rate of 71.3 percent. (more…)

search for : housing prices

Homeowners across the country are angry about their property taxes, and it’s no wonder. Skyrocketing home values and sticky-fingered politicians combined to push property tax collections up 35% from 2002 to 2006, according to the U.S. Census Bureau.

Tax assessors’ offices are notoriously understaffed, leaving many to rely on software or even outside companies to figure out your bill. Even when an assessor visits, he may just eyeball your property from the sidewalk or the front seat of a car. The American Homeowners Association (AHA) estimates that 60% of homes are assessed too high, so it pays to scrutinize your assessment line by line. Ask yourself these questions: Are the basics right? Number of bedrooms? Baths? A finished basement? Lot size? Watch for the kinds of details that could knock down the value of your home and your tax burden. (more…)

search for : property taxes, home values, sticky-fingered politicians

The second annual RBC Capital Markets Consumer Survey, released Wednesday, found that 46% of all homeowners still expect at least a 5% annual increase in their home values over the next few years. Nearly 60% of homeowners expected the same in last year’s survey. The national survey was conducted online between Sept. 7 and 15; 1,003 people participated. About 76% of homeowners expect the value of their homes to increase at some rate over the next few years. Thirty percent expect their home to increase in value between 5% and 10% annually during the next few years and 16% expect their home to go up by 10% or more.

The results also hinted that a certain wealth effect had been at work over the past three years for some homeowners. Seventy percent said their home had increased in value by 10% or more over the past three years and nearly 29% said their values had increased by 25% or more. Of those whose homes achieved the greater appreciation level, six out of 10 of agreed that their rising home value had given them some spending leeway. “Declining real estate values could eventually impact consumer spending as people don’t feel as wealthy as they used to and become less likely to borrow against the equity they have built up in their homes,” Ciccarelli said. (more…)

search for : homeowners, rising home value

I was speaking with a long time Realtor friend in Nevada yesterday and asked him how business was going. “Excellently,” he replied. I asked him why the slowdown wasn’t hurting him as badly as it seems to be hurting many others, and he told me that he had discovered a place where FSBO never competes, where commissions routinely exceed 6%, and where there are no balky sellers who think that the boom is still on to deal with.

He told me he has collected 8% commission from four separate builders in the past month, and that he has many more sales in progress now than he did during the boom times. It seems that some builders recognize that an alliance with a strong Realtor can bring them business that the newspapers can’t. Being pragmatic, and knowing the misery that any bank can invoke upon them if inventory gets too high, they will not only accept most reasonable offers, they will also pay handsome commissions to those bringing them those offers. Effectively, they jump in ahead of all the resales, at least in this broker’s marketing efforts. While builders and developers generally won’t give you exclusive listings, they will protect your prospects and your work, while gladly paying a full and fair commission to you. (more…)

search for : FSBO, commissions routinely exceed 6%, no balky sellers