Saturday, 31 January 2009

Do Your Homework before Refinancing Mortgage, Experts Say

Do Your Homework before Refinancing Mortgage, Experts Say

By Alison Knezevich

RISMEDIA, January 20, 2009-(MCT)-With mortgage rates near historic lows, refinancing seems like an obvious way to cut costs, but homeowners should consider many factors before they refinance-and everyone’s situation is different, bankers and others say.

For the week ending Jan. 9, the average interest rate for 30-year fixed-rate mortgages was 4.89%, down from 5.07% the week before, the Mortgage Bankers Association said last week.

Local banks are staying busy as borrowers look to take advantage of those numbers.

“We have seen a drastic increase in inquiries and applications for refinancing,” said John Long, senior vice president of mortgage lending at City National.

Chase recently has experienced a three-fold increase in the number of people asking about and applying for refinancing, said spokeswoman Nancy Norris.

“We’re in the middle of a re-fi boom, but not quite as big as we saw three or four years ago,” she said.

Real estate agent Alan Pennington of Great Expectations Realty said the low rates are helping with home sales. He recently sold a house to a doctor, who opted for a more expensive house than he originally planned because of the low rates.

Pennington’s rule of thumb for refinancing: Consider it if you can get an interest rate 2 percentage points lower than your current one, especially if you plan to live in your house at least five years.

However, there are many other factors to mull over, including closing costs, how long you plan to stay in your house, and how many points you will have to buy.

“The best thing is to sit down with your banker,” Norris said. “They’ll go over the numbers so you can make an informed decision.”

As with anything, read the fine print on any refinance offer, said Assistant Attorney General Kim Stitzinger Jones of the Consumer Protection Division.

She recently got an offer in the mail that would lower her monthly payments by $55, but the plan also would require her to buy 2 points, which each equal to 1% of the amount of a mortgage loan. That could add up to a lot of money when combined with closing costs.

“You have to be careful in the offers you get,” she said. If you don’t read carefully, “it starts to look like something better” than it is.

Closing costs can be severe on fixed-rate mortgages, Long said. “They can run as high to 2 1/8percent3/8 to 3 percent of the loan amount,” he said.

That’s why it’s important to consider how long you’ll stay in the house.

“For example, if you’re going to lower your payment by $50 a month, and your closing costs are $3,000, then it will take you five years to break even,” Long said.

Also keep in mind that you might not be eligible to refinance, Long said.

“Credit qualifications have tightened drastically,” he said. “The rejection rate is higher than I’ve ever seen it, … but many people do qualify, and it depends on their credit.”

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

POSTED BY: Sandy Thornton AT 09:25 am | Permalink | E-mail this

Friday, 30 January 2009

Low Rates Likely to Stay Awhile, But Cash-outs Refis Elusive

Low Rates Likely to Stay Awhile, But Cash-outs Refis Elusive

By Alan J. Heavens

RISMEDIA, January 16, 2009-(MCT)-To get us through the early part of this new year, let’s get some perspective on what could be driving real estate matters in the weeks to come.

First off, it looks as if low fixed interest rates for mortgages-now around 5%-will be with us awhile. But Philadelphia mortgage broker Fred Glick warns that rates could begin to rise if the stock market recovers.

What he means is that investors who have flocked to the relative safety of Treasury bonds will shift their money to Wall Street if it seems profitable.

“If they are buying stocks”-the Street is always ahead of what happens-”the market has guessed that the economy is recovering,” Glick said. “When economies recover, rates eventually go up to stop growth and fight inflation.”

I see the point. Treasury bonds today offer little or no return to investors, who would at least get a somewhat thicker mattress if they put their money there. As we’ve seen, investors are really nervous people, and the slightest bit of good or bad news sends them into buying or selling frenzies and the rest of us to the unemployment office.

Which brings us to the less-than-frenzied state of home-buying. Not much of a mood to purchase right now. Refinancing, anyone?

I asked Holden Lewis, columnist for Bankrate.com, who has the best chance to refinance today. His response:

A homeowner who owes no more than 80% of the house’s appraised value; has excellent credit overall and has never been 30 days late on the mortgage in the last two or three years; is an employee who can readily document wages; needs a loan for $417,000 or less; and is refinancing for a better rate, not a cash-out.

Cash-out refis are what got a lot of people into mortgage delinquency and foreclosure. They pulled out wads of equity, then, as circumstances changed, ended up owing up much more than their houses were worth.

“Either they made small down payments, or got negative-amortization loans, or the property’s value fell, or a combination of two or all three of those things,” Lewis said. “People with little equity must get mortgage insurance, and the resulting payments could lower or eliminate the incentive to refi.”

Lewis said lenders aren’t keen on cash-out refis now, except when the borrower is taking out a few thousand dollars to pay the closing costs.

Back to buying and selling: Readers continue to tell me that a lot of sellers still think they can demand high prices for as-is properties. Sellers complain that buyers are too picky.

But if your place isn’t ready for the market, prospective buyers will move on. If you must put your house on the market now, it makes sense to have it checked by a qualified home inspector first.

During the housing boom, pre-inspections seemed unnecessary. If a buyer balked at a new roof or furnace, another would be along soon.

Not anymore. To sell a house quickly and for a satisfactory price, a seller must make sure the house is close to perfect. If that means spending money to make money, spend it.

Alan J. Heavens is the real estate columnist for The Philadelphia Inquirer.

POSTED BY: Sandy Thornton AT 10:19 am | Permalink | E-mail this

Thursday, 29 January 2009

Is 2009 the time to buy a second home?

January 9, 2009 by Curtis Seltzer

Second homes in America have become as American as apple pie. A beach house, small farm, spot on a lake, condo in a recreation destination—some nine million of us own such places.

A National Association of Realtors’ (NAR) survey indicated that about 740,000, or about 12 percent, of all existing- and new-home sales in 2007 were vacation homes. That was down about 31 percent from 2006 sales of 1.067 million vacation properties. The Realtors’ 2008 survey will be available in early April at www.realtors.org.

Despite a 31 percent decline in sales, the 2007 NAR data also showed that the median sales price of vacation homes from 2006 to 2007 dropped only 2.5 percent, to $195,000. In the first part of this Recession, vacation homes held their market value even though sales fell by almost one-third in one year.

Almost half of the vacation homes NAR surveyed were in small towns (17 percent) and rural areas (30 percent).

Anecdotal evidence suggests that vacation-home sales continued to fall at a faster rate in 2008 than their prices.

Vacation-home prices have also held up better than metropolitan housing, which dropped 20 percent in the 20 largest metropolitan areas tracked by the S&P/Case-Shiller composite house price index in the 18 months following a mid-2006 high.

In addition to second homes, rural areas are a market for owner-occupied housing. Resident homeowners are both born-heres and come-heres, such as retirement relocators.

Prices for rural, owner-occupied houses have risen slightly more than two percent since early 2007, according to data gathered by the Office for Federal Housing Enterprise Oversight (OFHEO) and cited in a recent report from the Federal Reserve Bank of Kansas City. Non-metro (rural) housing prices ran counter to price declines in metro areas.

Why have second homes and owner-occupied rural housing proved more price-stable than metro housing during the last two years? Several reasons come to mind.

First, as the Kansas City Fed points out, lending practices in rural areas did not follow the now-troubled, bail-out banks into no-doc loans, 100 percent financing, foreclosure-guaranteeing ARMs, subprime predatory lending and the rest of it. Second, rural economies that depended on agriculture and energy have so far been hit less hard than urban manufacturing centers and once go-go residential markets like Phoenix and Orlando. Third, rural housing prices were not artificially inflated by speculators or panic-driven buyers who feared that they had to buy before they were left behind.

But the last quarter of 2008 and 2009’s first six months will probably show price weakening in vacation homes and rural owner-occupied housing. Inventory of unsold property has piled up, and all-collar unemployment is squeezing everyone’s ability to carry a mortgage. The market will force prices lower to find buyers as this Recession roosts on our heads like a catatonic hen.

In circumstances like these, as ugly as it sounds, buyers of second homes and other rural property will nose around for opportunities amid the distress. Where might value be found?

Search in second- and third-tier recreation areas. If you’re cost conscious, you might want to avoid high-priced recreation destinations and steroidal resorts. The best buys may still not have shaken out in the most popular second-home communities such as Asheville, North Carolina, Park City, Utah, Ashland Oregon and Myrtle Beach, South Carolina—all of which were top-ten, second-home destinations in recent years.

The best buys will be in nice places that have yet to be turned into trendy destinations. Look for small towns that are still about one-third pickup trucks and have no yak-butter crepe place.

Look for the hot spots of pain. Some second-home communities that saw the highest price appreciation rates since 2002 are likely to be corrected the hardest. Not every over-priced property will be knocked down, but a few will. Look for the newly fallen apple, not the one that’s lashed on the topmost branch with steel cable.

A lot of nice country surrounds the Rust Belt—along the northern tier of states from the East Coast into the Midwest. The automotive and metal industries that built this belt are downsizing, if not disappearing. Second homes and recreation properties that their wage and salary employees bought in the good times are coming on the market.

Think two-steps: land first, housing later. Bargain hunters with limited cash should focus on unimproved land. Make-shift housing can be arranged until money to build becomes available. Used campers are a relatively cheap first housing choice on recreation tracts. Modular housing provides good value, fast construction and many custom options.

Think smaller. Families can adapt to a smaller second-home footprint using temporary housing when needed. An extra $100,000 might buy you more bedrooms that you use twice a year, for three days each time. A budget-conscious buyer would be far ahead to pack guest kids in a four-bunk camper for $3,500 and make reservations for their parents at the closest B&B.

Smaller second homes will also be cheaper to maintain and more energy efficient in any small-apple to big-apple comparison.

Think lower offer. I take no pleasure in suggesting that buyers should peg their offers to values of five to seven years ago. But the unavoidable fact is that sellers would not be marketing a second home right now unless they had to sell—right now. The valuations of 18 months ago — asking prices — are too high by ten to 50 percent.

A nice 100-acre-plus, lake-front property in Michigan had been priced at $6,000 an acre before it dropped this week to $4,000. This seller has had to face reality. Is $300,000 the likely sales price?

Look for farms whose owners have been wrung out of agriculture as they’ve practiced it. I hate writing that sentence, because I hate seeing farmers fail. But facts in the field don’t lie. Family dairy farms from New York through the upper Midwest are being sold, because of sector economics and the fact that it’s a very hard way to make a living. These farms are usually pretty and well-tended.

Look for timberland. Prices for standing timber — called stumpage — have fallen in some places and not in others. In the Southeast, for example, prices for hardwood sawlogs used for furniture and flooring have remained steady, because second-home and recreational owners of timberland are reluctant to cut their trees, thus restricting supply and maintaining stumpage prices. In West Virginia, Pennsylvania and New York, however, stumpage prices for hardwood sawlogs have fallen, in some species by as much as 50 percent over the last couple of years.

Where stumpage prices have fallen, the asking price and value of timberland should be discounted. Stumpage prices will improve when housing does.

Some timberland will be priced attractively, and in other cases, a buyer will be facing a no-budge seller. Buyers should look for tracts where at least 50 percent of the purchase price can be covered by the sale of the mature timber. Hold for a year or two before cutting, and then catch the upswing in timber prices.

Think of your second home as an income-generating investment, not just as a personal residence. The NAR reported in 2007 that 84 percent of second-home buyers said they bought a second home for vacations or as a family retreat; only 25 percent said they bought to rent to others.

Setting up a second home as a rental property generates income and brings tax benefits. Start with IRS 527, Residential Rental Property and IRS 936, Home Mortgage Interest Deduction. Several books are also available.

Before buying a second home with the intention of renting it, discuss the IRS rules with your accountant and follow that plan.

2009 is likely to be a hard year in many ways. But picky buyers may find a gem in the dross. From a seller’s perspective, priced right is half sold; from a buyer’s, bought right is half the profit.

POSTED BY: Sandy Thornton AT 07:57 am | Permalink | E-mail this

Wednesday, 28 January 2009

Homeowners Urged - Sell Short, Refinance, But Try Not to Lose Your Home

Homeowners Urged - Sell Short, Refinance, But Try Not to Lose Your Home

By Jerry W. Jackson

RISMEDIA, January 16, 2009-(MCT)-Every day, more people slip into the foreclosure whirlpool and spiral downward toward the day they may have to leave their home. What should you do if you are on the verge of getting a foreclosure notice?

First and foremost, industry specialists say, you should resist the natural human tendency to freeze up. Face the issue head on and prepare for days and weeks of making phone calls and corresponding with people who may be able to help.
“Don’t assume it’s too late to act,” said Ralph Roberts, a consumer advocate in Michigan and co-author of Foreclosure Self-Defense for Dummies. “As long as you are residing in the home, you probably have some opportunity to keep your home.”

Roberts, a Realtor who lost his home to foreclosure back in the 1970s, said people facing foreclosure have more avenues to pursue than they might realize-certainly more than the typical “pay up or move out” that many people think is their only choice.

Potential solutions include:

- Negotiating a modification of the loan.
- Refinancing the loan.
- Listing the home through an agent for a possible “short sale.”
- Selling the home to an investor on your own.
- Declaring bankruptcy.

Short sales-in which the lender agrees to take less than is owed on the home, writing off some or all of the loss to avoid the expense of a foreclosure-typically are handled by real estate agents, which at least takes some of the pressure off of a harried homeowner. Many professional real estate agents are working more short sales these days and have buyers lined up looking for bargains, though the process can be slow and frustrating.

“The banks are just not moving fast enough. They are sitting on these, and it’s outrageous. Something’s got to be done about that” at the national level, said Ernst Urbainczyk, a veteran agent with Keller Williams Heritage Realty in Lake Mary, Fla. Lenders may also reject short-sale offers, sometimes leaving the seller with little or no time to prevent the foreclosure.

Matthew Englett of Kaufman Englett & Lynd, an Altamonte Springs, Fla., law firm that specializes in foreclosure defense, real estate litigation and bankruptcy, said there are usually several different defenses a borrower can take to dispute a foreclosure, including “wrongful or misleading conduct on behalf of the lender or its agents.”

As the case moves forward, the law firm negotiates with the lender to try to get it to modify the mortgage with a lower interest rate and loan amount.

“In many cases, that would mean the principal would have to be reduced,” Englett said. The law firm charges a flat fee ranging from $1,750 to $2,500 for its foreclosure-defense cases.

POSTED BY: Sandy Thornton AT 02:13 pm | Permalink | E-mail this

Tuesday, 27 January 2009

Existing-Home Sales Show Strong Gain In December

RISMEDIA, January 27, 2009-Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.

Existing-home sales-including single-family, townhomes, condominiums and co-ops-jumped 6.5% to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5% below the 4.91 million-unit pace in December 2007.

For all of 2008 there were 4,912,000 existing-home sales, which was 13.1% below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.

Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”

Total housing inventory at the end of December fell 11.7% to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.

Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.”

The national median existing-home price for all housing types was $175,400 in December, which is 15.3% below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45% of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3% from $219,000 in 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”

McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5% on a safe 30-year fixed-rate mortgage.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29% in December from 6.09% in November; the rate was 6.10% in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12%.

Single-family home sales rose 7.0% to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4% below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9% to 4,349,000.

The median existing single-family home price was $174,700 in December, down 14.8% from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5% below 2007.

Existing condominium and co-op sales increased 2.1% to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4% below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0% to 563,000 units.

The median existing condo price4 was $181,400 in December, down 18.3% from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2% below 2007.

Regionally, existing-home sales in the Northeast slipped 1.4% to an annual pace of 720,000 in December, and are 14.3% below December 2007. The median price in the Northeast was $235,000, which is 7.8% lower than a year ago.

Existing-home sales in the Midwest increased 4.0% in December to a level of 1.04 million but are 10.3% below a year ago. The median price in the Midwest was $140,800, down 11.4% from December 2007.

In the South, existing-home sales rose 7.4% to an annual pace of 1.74 million in December, but are 11.2% lower than December 2007. The median price in the South was $158,600, which is down 8.0% from a year ago.

Existing-home sales in the West jumped 13.6% to an annual rate of 1.25 million in December and are 31.6% higher than a year ago. The median price in the West was $213,100, down 31.5% from December 2007.

For more information, visit www.Realtor.org.

POSTED BY: Sandy Thornton AT 12:22 pm | Permalink | 0 Comments | E-mail this

Monday, 26 January 2009

Foreclosure Activity Increases 81% in 2008

RISMEDIA, January 15, 2009-RealtyTrac®, a leading online marketplace for foreclosure properties, today released its 2008 U.S. Foreclosure Market ReportTM, which shows a total of 3,157,806 foreclosure filings - default notices, auction sale notices and bank repossessions - were reported on 2,330,483 U.S. properties during the year, an 81% increase in total properties from 2007 and a 225% increase in total properties from 2006. The report also shows that 1.84% of all U.S. housing units (one in 54) received at least one foreclosure filing during the year, up from 1.03% in 2007.

Foreclosure filings were reported on 303,410 U.S. properties in December, up 17% from the previous month and up nearly 41% from December 2007. Despite the spike in December, foreclosure activity for the fourth quarter was down nearly 4% from the previous quarter but still up nearly 40% from the fourth quarter of 2007.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1.5 million properties from over 2,200 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

“State legislation that slowed down the onset of new foreclosure activity clearly had an effect on fourth quarter numbers overall, but that effect appears to have worn off by December,” said James J. Saccacio, chief executive officer of RealtyTrac. “The big jump in December foreclosure activity was somewhat surprising given the moratoria enacted by both Freddie Mac and Fannie Mae, along with programs from some of the major lenders and loan servicers aimed at delaying foreclosure actions against distressed homeowners.

“Clearly the foreclosure prevention programs implemented to-date have not had any real success in slowing down this foreclosure tsunami. And the recent California law, much like its predecessors in Massachusetts and Maryland, appears to have done little more than delay the inevitable foreclosure proceedings for thousands of homeowners.”

The California law (SB1137), which required lenders to provide written notice of their intent to initiate foreclosure proceedings 30 days prior to issuing a notice of default (NOD), resulted in a reduction of NODs from 44,278 in August to 21,665 in September. Notice of Default filings then surged by 122%, to over 42,000, in December. Similar patterns have occurred in other states, such as Massachusetts and Maryland, where similar types of foreclosure prevention legislation has been enacted.

Nevada, Florida, Arizona post top state foreclosure rates in 2008

More than 7% of Nevada housing units (one in 14) received at least one foreclosure notice in 2008, giving it the nation’s highest state foreclosure rate for the year. A total of 77,693 Nevada properties received a foreclosure filing during the year, an increase of nearly 126% from 2007 and an increase of nearly 530% from 2006.

Florida registered the nation’s second highest state foreclosure rate in 2008, with 4.52% of its housing units (one in 22) receiving at least one foreclosure filing during the year, and Arizona registered the nation’s third highest state foreclosure rate, with 4.49% of its housing units (one in 22) receiving at least one foreclosure filing during the year.

Other states with Top 10 foreclosure rates for 2008 were California, Colorado, Michigan, Ohio, Georgia, Illinois and New Jersey.

California, Florida, Arizona post highest 2008 foreclosure totals

A total of 523,624 California properties received a foreclosure filing in 2008, the nation’s highest state total. Foreclosure activity in the state increased nearly 110% from 2007 and nearly 498% from 2006.

With 385,309 properties receiving a foreclosure filing in 2008, Florida documented the second highest state total. Florida foreclosure activity increased 133% from 2007 and nearly 412% from 2006.

Arizona’s 2008 total of 116,911 properties receiving a foreclosure filing was third highest among the states. Foreclosure activity in Arizona increased 203% from 2007 and 655% from 2006.

Other states with Top 10 totals for 2008 were Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.

Sunbelt cities plus Detroit land on top 10 metro foreclosure rates list

With 9.46% of its housing units (one in 11) receiving a foreclosure filing during the year, Stockton, Calif., registered the highest foreclosure rate among the nation’s 100 largest metropolitan areas in 2008. Other California cities in the top 10 were Riverside-San Bernardino at No. 3 (8.02%, or one in 12 housing units); Bakersfield and No. 4 (6.17%, or one in 16 housing units); and Sacramento at No. 9 (5.20%, or one in 19 housing units).

Las Vegas documented the second highest metro foreclosure rate in 2008, with 8.89% of its housing units (one in 11) receiving a foreclosure filing during the year.

More than 6% of Phoenix housing units (one in 17) received a foreclosure filing during the year, giving the city the fifth highest metro foreclosure rate in 2008.

The foreclosure rate in Fort Lauderdale, Fla., ranked No. 6, with 5.95% of the metro area’s housing units (one in 17) receiving a foreclosure filing in 2008. Other Florida cities in the top 10 were Orlando at No. 7 (5.48%, or one in 18 housing units) and Miami at No. 8 (5.21%, or one in 19 housing units).

With 4.52% of its housing units (one in 22) receiving a foreclosure filing during the year, Detroit registered the tenth highest metro foreclosure rate in 2008.

The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90% of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS); Auction - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the year, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month or quarter. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

POSTED BY: Sandy Thornton AT 12:15 pm | Permalink | E-mail this

Saturday, 24 January 2009

Foreclosed Homes Can Be Good Deals, Bargains for Buyers

Foreclosed Homes Can Be Good Deals, Bargains for Buyers

By LaTina Emerson

RISMEDIA, January 20, 2009-(MCT)-Buying a foreclosure property was Amanda Rasch’s only hope of owning her own home. After fleeing New Orleans to escape Hurricane Katrina in 2005, Rasch, her husband and two children lived with her parents in a small Augusta house purchased with her parents’ Federal Emergency Management Agency evacuee housing vouchers.

Money was tight, but they were able to start looking for a home in late 2007.

In April, they bought a four-bedroom house in Martinez for $111,000. It had been valued at $135,000. Real estate agents say similar deals are available on foreclosure property throughout the Augusta area.

The Rasch family bought their home through Century 21 agent Jeff Keller III. Mr. Keller said homes that are available because a bank foreclosed on a previous owner sell for a “wholesale price.”

Buyers can find foreclosure properties up to 40% off their market value, he explained.

He tells clients who prefer not to buy foreclosures that they’re “probably cutting out easily 50% of the marketplace in Richmond County, as opposed to North Augusta, Columbia, McDuffie or Jefferson.”

The process for buying a foreclosure property through a real estate agent is the same as a normal purchase. Buyers must verify their income, have good credit and be able to show they can make their mortgage payments, said Bob Hale, the owner of Bob Hale Realty on Deans Bridge Road.

Short Sales or pre-foreclosures, allow potential buyers to bargain with the mortgage company.

“Mortgage companies do short sales when they don’t want to keep them on their books,” said Augusta broker Ira Tindall, the owner of RE/MAX Masters on Washington Road.

Usually, the mortgage holder is willing to take a lower price for the home. For instance, it might sell a $200,000 home for $180,000 simply to get rid of it, Mr. Tindall said.

Short sales can be initiated from foreclosure notices printed in the newspaper, though that is rare, he said.

Also, if homeowners think they might lose their home, they could contact their mortgage company, which would then contact a realty agent about selling the property as a short sale.

If a buyer is interested, the mortgage company can begin the sale of the home.

Because the company does not yet have the title, though, the current homeowner must become involved in the process, Tindall said. He said that some homeowners might refuse to participate because they are embarrassed about losing their home but that the process is a win-win situation for everyone.

“The owner doesn’t have a foreclosed piece of property on their record, the mortgage company gets what they want and the buyer usually gets a better buy,” he explained.

Buyers of homes at auctions on the courthouse steps purchase a house as-is. They might have seen the outside of the house, but they won’t have any idea what’s on the inside, Hale said.

“All foreclosure properties are not a good deal. Everything that looks rosy isn’t a rose,” he said.

Home buyers should rely on professionals, such as real estate agents and home inspectors, to make informed purchases, said Keri Mason Roth, a partner at Atlanta-based law firm Morris Hardwick Schneider. These professionals can provide information on the neighborhood, tax history, and details about the property, such as lot size, footage or homeowners association dues.

Foreclosure notices must be printed in the newspaper for four weeks before they are taken to the courthouse steps, Tindall said.

These proceedings take place on the first Tuesday of the month in Richmond and Columbia counties, he added.

In Aiken County, they are held the first Monday of each month inside the courthouse, rather than on the courthouse steps. If that day is a holiday, the auction is held on Tuesday, according to the county’s website.

Anyone can bid on foreclosure property, but buyers must pay in full with cash or a certified check after the sale.

“It usually takes you two or three weeks to get the title. If people are still in the house, you will have to go through eviction procedures,” he explained.

There might also be back taxes due or liens on the property, Roth said.

Also, it’s not as easy to find a bargain at the courthouse steps, Mr. Hale said. Lenders are present, and they’re seeking the amount owed on the property. Buyers can find better deals, as well as security, through a real estate agent, he added.

Property auctions are another way to find foreclosure properties, though it will likely take more time to close the transaction.

It’s worth it, however, because the auctions provide huge savings without financial surprises, such as back taxes, Roth said.

Buyers should still visit the property in advance to know what they’re bidding on, she said.

Banks or Mortgage companies might decide not to auction homes in their possession, which are referred to as real estate owned property, or REOs.

Instead, they ask real estate companies to list the properties in the multiple-listing service, as though they were normal vacant homes.

Houses that don’t sell on the courthouse steps are also added to this database, making the property available to all licensed real estate agents in the area, Tindall said.

In addition, deals are available with financing, Rasch said. Through an offer with the U.S. Department of Housing of Urban Development, her family was able to put only $100 down and use the down payment money to reduce the interest rate. The deal was available because the home was a foreclosure property, she said.

Rasch said they found their home at a good time; she has a toddler.

“Without this, we’d still be cramped in with my parents,” she said.

POSTED BY: Sandy Thornton AT 06:57 am | Permalink | E-mail this

Thursday, 22 January 2009

Connecticut Real Estate - Market Expected to Bottom Out in the Fall

Connecticut Real Estate - Market Expected to Bottom Out in the Fall

By Angela Carter

RISMEDIA, January 15, 2009- (MCT)-The housing market, where the national economic troubles began, is expected to hit bottom in autumn, and the current streak of job losses is likely to peak at 9 million by next year, according to projections released Monday.

“This will be the worst downturn since the Great Depression,” said Augustine Faucher, director of macroeconomics for Moody’s Economy.com, which provides economic analysis, data, and forecasting and credit risk services.

Faucher spoke Monday during the 2009 Economic Summit & Outlook, held at the Hartford Marriott and sponsored by the Connecticut Business & Industry Association, the Metro Hartford Alliance and Webster Bank.

Connecticut’s economy is dependent on the financial sector, aerospace and defense, and technology production, Faucher said. The state is in recession along with the nation, driven mostly by declines in industrial production, job losses on a year-over-year basis and a “rapid weakening” in the labor market, which jumped from a 4.5% unemployment rate in early 2007 to 6.5% in November, the most recent month for which data is available.

Although recent weakness in the U.S. dollar has helped state exporters, the global economy is starting to slow down and is heading toward recession, Faucher said. “We can’t count on the global economy to bail us out,” he said.

But the recession will eventually end and when it does, Connecticut will lag behind the nation when the recovery starts, Faucher said, because of its aging population and weaker labor force growth rates.

Faucher said that if the federal government implements appropriate recovery policies a turnaround could begin late this year.

U.S. Sen. Joseph I. Lieberman, I-Conn., said the stimulus package being debated in the U.S. Congress would not be any less than $800 billion, but the numbers are moving daily.

“The size is by any conventional standard massive, but so is the problem,” he said.

The package will include funds to states for Medicaid, infrastructure and transit improvements, tax cuts for individuals and families, alternative energy and tax cuts and credits for businesses. Lieberman estimated that about $200 million could come to Connecticut.

POSTED BY: Sandy Thornton AT 08:00 am | Permalink | E-mail this

Wednesday, 21 January 2009

Want to Get Your House to Sell? Try Making an Offer

By Jim Buchta

RISMEDIA, January 13, 2009-(MCT)-The home seemed to have everything: a big master suite, a wine chiller and views of a pond. The only thing missing was a buyer.

So after a cash buyer looked at it twice, but never got around to making an offer, the owners decided to take matters into their own hands. They wrote a purchase agreement-including a hefty price reduction, a closing date and the seller’s signature-and presented it to that prospective buyer in hopes of signaling just how anxious they are to make the deal work.

“We have to be creative, aggressive and think outside the box,” said Dave Lodge, the listing agent for the property, located in Maple Grove, Minn. “It’s another way to address the market today and the lack of buyers.”

Reverse purchase agreements-unsolicited offers that get written by sellers for prospective buyers-are rare in today’s market, but agents say that the strategy could be the next weapon in the ongoing battle to get prospective home buyers to take notice.

The approach is just one of myriad tactics sellers are using to attract buyers, who are now comfortably positioned in the driver’s seat. For some buyers it’s no longer enough to have a vacation or appliances dangled in front of them. Buyers simply have too many choices and not much incentive to make a decision quickly.

This was the first time Lodge tried the approach, at the suggestion of a colleague. His clients, two young sisters, have been trying for several months to sell a townhouse that belonged to their deceased mother. Already Lodge had done everything he could to attract a buyer. The house is staged, he started holding open houses during the week and he has suggested several aggressive price reductions.

Then, a well-qualified out-of-town buyer looked at the townhouse a couple of times. She offered great feedback, but months later, no offer. Her agent continued to keep in touch with the listing agent. Not closing the door gave hope to Lodge and his clients that her interest would turn into a purchase agreement. But it didn’t happen.

With no other prospects in sight, Lodge and his clients decided that if the buyer wouldn’t make an offer, they would. So they wrote an offer, complete with a quick closing date and an unsolicited $10,000 price reduction on top of a $20,000 price reduction earlier in the month.

“We were trying to get her to make a decision,” Lodge said. “Say, ‘Yes, I’m going to buy,’ or let my client move on and not worry about this offer.”

Her agent was pleasantly surprised.

“It was very impressive and very proactive,” said Katherine Pedrick, a sales agent at Coldwell Banker Burnet.

Pedrick said she never had encountered a reverse purchase agreement before. The strategy definitely captured the attention of her client, who still was considering the offer at this story’s deadline.

Ken Johnson, vice president of Burnet’s Minnetonka office, said that he often recommends this strategy to agents who have listings that are “market-worn,” but have had serious buyer interest. It’s particularly effective in situations where a prospective buyer has looked at the property two or three times, but just won’t take the next step.

Such lack of motivation is pervasive in this market. Many buyers are apprehensive about making an offer in a market where prices continue to fall. Buyers also are waiting to see if mortgage interest rates, which recently dropped to multigenerational lows, will keep dropping. And many have deep concerns about the short-term health of the economy and their own job security.

Nicci Brown, a mortgage consultant at Edina Realty Mortgage in Champlin, Minn., said that sellers have used this strategy in other down markets and predicted it will become more popular as buyers feel less confident about the market.

“Two to three years ago (sellers) had people standing in the street waiting to make an offer,” she said. “With that missing today, they don’t know where to start.”

An offer from the seller eliminates the guesswork for a prospective buyer. It’s the sellers who reveal how much they are willing to cut the price, the closing date and other terms, though a written offer doesn’t preclude additional negotiation.

In more robust times, sellers might give an oral offer to spark a conversation that could lead to a written offer, said Duane Bauermeister, sales agent with Edina Realty.

These days, talking about a deal sometimes just isn’t enough.

“In this market,” Bauermeister said. “Sellers need to be more aggressive and take charge of the transaction.”

POSTED BY: Sandy & Steve Thornton AT 10:16 am | Permalink | 0 Comments | E-mail this

Monday, 19 January 2009

Home Buyers Advised to Look Before They Leap

By John Spence

RISMEDIA, January 13, 2009-(MCT/MarketWatch)-This year may turn out to be “a bad time to buy a home” as the U.S. economy loses more jobs, especially if buyers don’t plan on staying in the house for at least several years, Fox-Pitt Kelton home-builder analyst Robert Stevenson said this week.

“While some suggest that now is great time to buy a home given low mortgage rates and falling home prices, we believe that for most homebuyers, the opposite is true,” Stevenson said in a report to clients.

The analyst released his bearish note Wednesday, the same day the ADP employment index showed U.S. private-sector firms shed a larger-than-expected 693,000 jobs in December.

“Buyers who lose their jobs or who stay in their homes for less than seven years stand to incur substantial losses as home prices decline further in 2009 and the U.S. experiences more moderate home-price appreciation going forward,” Fox-Pitt said. “We believe too few buyers do the simple break-even math before sinking their life savings into a house.”

With average rates on 30-year mortgages falling to around 5% and the government pumping liquidity into the mortgage market, many homeowners are rushing to refinance. But while the lower rates make homes more affordable, the days of buying homes with little or no down payment and shaky credit scores are long gone.

For buyers, the big fear is purchasing a house that will be worth less a year later, or even longer. Homeowners who bought at the peak of the housing bubble are underwater on their mortgages, meaning they owe more on the loan than the house is worth-and some are simply walking away.

According to the latest data available, home prices are back to their March 2004 levels nationally. Prices in 20 major U.S. cities fell 18% for the year ended October, according to the Case-Shiller price index published by Standard & Poor’s.

National home prices were down 23% from their July 2006 peak through October, and Stevenson at Fox-Pitt predicted an incremental 20% drop in prices before bottoming, a peak-to-trough decline of roughly 40%.

“While a drop of 40 percent seems absurdly high … it would only put home prices back to where they were at the beginning of 2002,” Stevenson said.

The analyst’s bearish outlook is based largely on escalating unemployment, and jobs are the lifeblood of the housing market.

“As if 2008 weren’t bad enough for housing-given the mounting foreclosures, falling home prices, and a tightening credit market-millions more Americans are now in danger of losing their jobs,” said Stevenson at Fox-Pitt. “As unemployment heads towards 8 percent, we expect foreclosures to spike, taking home prices down materially.”

Investors will be closely watching employment reports later this week to gauge the economy’s ailing health. The Labor Department’s unemployment report for December is set to be released Friday, a day after the weekly jobless claims report. On Wednesday, the ADP employment index showed U.S. private-sector firms shed 693,000 jobs in December, far worse than expected.

“If unemployment can be held under 8 percent, we believe the housing market will start a slow recovery beginning in 2010,” Stevenson said. “However, if the bears are correct and the U.S. experiences 9 percent (or higher) unemployment in (the second half of 2009) or 2010, we believe the housing market could experience a meltdown even more severe than the one we’ve experienced in the past few years.”

On the supply side of housing, there remains a sizable overhang of unsold homes on the market. The supply of both new and existing homes is massive by historical standards, and a surge in foreclosures would only add to the glut if the government can’t find a solution to the foreclosure problem.

Buyers who do jump into the housing market should consider the possibility that they may need to stay in the home for many years in order to come out ahead, assuming home prices fall substantially further.

“Given the likelihood of a meaningful decline in home values in 2009, we continue to wonder why anyone would buy a home today,” said Stevenson, the home-builder analyst, in a loud and clear warning to buyers.

The housing market “is likely to remain significantly oversupplied into 2010,” he said. “Given the likelihood of incremental home price declines, we see little reason for most Americans to rush into buying a home today.”

© 2009, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.

POSTED BY: Sandy & Steve Thornton AT 12:29 pm | Permalink | 0 Comments | E-mail this

Sunday, 18 January 2009

Designer Help On Any Budget

Designer Help On Any Budget

By Shaila Wunderlich

RISMEDIA, Jan. 3, 2009-(MCT)-Everybody could use a little help now and then, especially when it comes to decorating. But not everyone can afford it. At least not in the traditional, hire-someone-to-transform-your-entire-house sense. What many people don’t realize is that there are affordable ways to get professional-quality design advice-some of them even free.

Designers for years have been willing to customize their fees and services according to a client’s budget. This is especially true in today’s economic climate, when even the most upscale interior designers are giving their fee structures a reality check. “Interior designers are having to re-market themselves at the moment,” says River Forest, Ill., interior designer Karen Sheridan. “Very rarely have I ever taken on a project that’s less than a whole house, but that may start to change.”

Here’s a broad look at three different ways to tap expert design help-from the resourceful (read: DIY and affordable) approach to the “menu” mode of picking and choosing select design services to the more traditional (and more costly) professional-all-the-way route.

Level 1: DIY
Scope of work: Research and implement design guidance on your own.

Cost: Free (or, if using a design software program, $10 to $100)

You’re rearranging your living room but are clueless as to where to start. You’re buying a new sofa but have no idea what style will look right next to your grandma’s antique cocktail table. Or you’d like to paint your kitchen cabinets in a bold red but worry they could end up a bloody mess. And other than the cost of the sofa and the paint, you have no money to spend. Not a cent.

Resourceful types can get a lot of help with a little legwork. Start by gathering inspirational references. “Make a project of studying interior design books and magazines,” says Chicago interior designer Janet McCann. She also sends her clients on field trips to showhouses and design events-such as the Dream Home or Dream Rooms at Chicago’s wholesale venue The Merchandise Mart.

Take pictures, clip tear sheets and make sketches of what appeals to you most. This will define your personal style, which, in turn, will drive your purchases and decorating choices.

When it comes time to make those shopping choices, get more help by asking for it. McCann recommends taking advantage of the sales associates at the place you’re buying furniture. Sheridan loves stores such as Macy’s, Toms-Price, Crate and Barrel, Room & Board, Dania and Z Gallerie for the design services they offer. Room & Board features an in-house design station where design associates can walk shoppers through fabric selections, draw up floor plans and schedule “fit calls” (for a small fee) at the shopper’s house to ensure a desired piece of furniture will fit through doorways and around tight turns in stairways.

“Take photographs and measurements of your space with you,” Sheridan says. “Tell them, ‘We need a sofa. Given the color of our walls, the room’s measurements, and this one chair that’s staying put, what do you think is going to work in terms of style and color?’”

For not much more than the cost of a magazine or coffee-table book (and sometimes for free), you also can answer those questions with the help of DIY tools.

Free online planners such as designmyroom.com and scenecaster.com let you enter a room’s dimensions or choose from a menu of template rooms and try out different brand-name furnishings, paint colors and room arrangements.

Manufacturers such as Benjamin Moore and Armstrong Flooring let you upload photos of your room and swap out paint colors and flooring materials.

Room spacing kits such as Canvas (around $10) tackle space planning with the help of graph paper and repositionable stickers.

Serious DIY-ers might consider software programs such as Better Homes and Gardens Interior Designer ($79). These comprehensive programs produce professional-quality plans that can be handed over and implemented as-is to an interior designer-or realized by yourself. Though you can expect to invest many hours on tutorial and practice, the effort is worth it if you are serious about creating a meticulous, well-conceived design.

Level 2: A la carte
Scope of work: Hire an expert for one specific, short-term task.

Cost: $50 to $300 an hour or one flat fee from $200 to around $1,000

If you have a little money in your budget, pick the one project that you need the most help with-or the part of your space that gets the most eyes-and hire an expert to help with that task alone.

Furniture designer Angela Finney-Hoffman, who also owns Post 27, an 8-month-old furnishings store in Chicago’s West Town neighborhood, took this approach with the newly renovated Chicago home of Tereasa Surratt and David Hernandez. The husband and wife had a garage full of collections that they had no idea how to live with.

Finney-Hoffman hand-picked the most graphic, right-sized pieces from the couple’s stash, sketched out custom displays, and then handed the sketches over for the couple to install themselves. Surratt’s vintage suitcases are now displayed in a 12-foot-tall graduated tower in the living room, and Hernandez’s collection of antique cameras now cover a canvas above the guest bedroom’s headboard. “Ninety percent of what we used they already owned,” Finney-Hoffman says. “We basically shopped from their garage.”

Designers amenable to this kind of selective service will typically charge by the hour or with a flat fee. The payoff, of course, is not having to spend thousands of dollars and not having to commit to more than one project at a time. “I was so intimidated to use a designer,” Surratt says. “I had never used one before. This was a great way for me to not have to put out a lot of money but still get exactly what I needed.”

Christine Frech felt the same way after her mini-project with designer Anne Chalesle. Christine and her husband, Todd, built their house in Chicago’s Lincoln Park three years ago. The architecture was the easy part. The interiors, not so much. “I’m lame with decorating,” Frech says. “I can tell you what I like, but I’ve never been able to pull the individual things together into one complete look.”

With two young children and a baby on the way, what Frech really needed help with was the kids’ bedrooms. Six-year-old Maria would be sharing a room with new baby sister Sofia, while 4-year-old William was transitioning from his crib to a big-boy bed. Christine had come to admire Chalesle’s style through frequenting her former textiles boutique, C’est Moi. For several hundred dollars, Chalesle came to the house and rearranged the girls’ room, and helped Christine pick out new bedding, a rug, and paint colors for William’s room. “She did things like suggest I replace my glass lamp with a red lamp and gingham shade, and suggest I frame some of William’s maps and hang them above his bed,” Christine says.

Before saying goodbye, Chalesle left Christine with a floor plan to implement when Sofia is ready to move to her big-girl bed.

Level 3: I’ll take it all
Scope of work: Hire an interior designer to design your entire house, from the bottom up.

Cost: $50,000 to sky’s-the-limit, depending on furnishings purchased, size of house, duration of project and homeowner’s budget

By the time Julie and Louis Bucksbaum decided it was time to build their dream ranch in 2001, they had already formed a strong mental image of what it would look like inside. “We wanted it to have a mountain, rustic, lodge feel,” Julie says. “We wanted it to feel like we were on vacation every day.”

The Bucksbaums also had an unlimited budget, something not uncommon in this kind of upscale, whole-house project. Their example is what many people think of when they hear the word “interior design.” It entails large budgets, subcontracted custom work, extended timelines-two years in the Bucksbaums’ case-and a top-to-bottom scope that covers everything from the plumbing to the stair rails to the drapery. The Bucksbaums began working with their designer, Janet McCann, even before ground had been broken on their Northbrook, Ill., property, but such whole-house projects also can include remodels or straightforward redecorating jobs.

Whichever the project, the process is generally the same. It starts with the designer getting to know the homeowners and their personal style. “I’ll often do several interviews in the home,” says interior designer Karen Sheridan, who recently completed a whole-house project in Lincoln Park. “I observe their existing interiors, their style vocabulary, even the way they dress.” Next, Sheridan gives her clients a homework assignment: “Go buy as many magazines as possible and tear out the images that appeal to you-and the ones that don’t.”

Ever the over-achievers, the Bucksbaums already had completed that assignment before hiring McCann. “For a long time our Friday and Saturday night dates consisted of going to Borders, getting coffee and working our way through piles of design magazines,” Julie says.

The getting-to-know-you phase can take anywhere from one week to three or four months. Considerably more time-consuming is the next phase: creating layouts and selecting furniture, materials and finishes. Layouts help designers determine what size, number and types of furniture and materials will best fit each space. Once those parameters are established, the designer can get to work on selecting those products. “I go shopping by myself first just to see what’s out there,” Sheridan says. “I’ll take tons of pictures, maybe 20 pictures of different sofas. Then I go back and edit down those to a top three or four to show to the client.”

This can take up to a year depending on how decisive and involved the homeowner is. Julie happened to love not only being involved in final selections, but also tagging along with McCann on shopping excursions. “I loved going to the furnishings stores, picking out fabric. I loved it all,” Julie says. “Janet (McCann) had to put blinders on me or I would have gotten distracted. That’s why I needed her; she kept me focused.”

Once materials have been selected and ordered, it becomes a waiting game.

“You can get all of your list ordered and then find out the focal point of the room-the cabinets, for example-are going to take five months to arrive,” McCann says.

The final touch, what’s considered the fun part by most, is the installation. “We’ll take at least a good week to install the carpet, the window treatments, arrange the furniture, hang pictures,” McCann says. “It’s my job to ensure that the client is going to be nothing less than thrilled with the end result.”

POSTED BY: Sandy Thornton AT 06:56 am | Permalink | E-mail this

Saturday, 17 January 2009

Real Estate in 2009

Real Estate in 2009 - Take Your Future into Your Own Hands

RISMEDIA, Jan. 3, 2009-A year ago, we didn’t know it, but the beginnings of the financial meltdown we’ve now witnessed were there. The subprime mortgage debacle had already struck and the media madness was in full swing. Reflective of those events, our Viewpoints question in January ‘08 was, “Where is the market going?” Our respondents had solid answers; however, they were in concert with the real estate industry’s frustration with the media and its continued perseverance through “a down market.” Now, 12 months later, we face these same issues-only the situation is even more dire. This month, five top-notch industry pros tell us what we may find over the next 12 months-and how to face it.

A new year-new president, new economy…new outlook? What does it mean for real estate?

Tom Kunz
President & CEO
Century 21 Real Estate LLC
www.century21.com

November 4, 2008 may mark a turning point, not just in our national politics, but in our industry. Whether or not you agree with President-Elect Obama’s positions on the issues, you cannot deny the positive energy his campaign has inspired.

As I watched the news coverage on election night, I was moved more by the positive emotions expressed by the huge crowds gathered throughout the United States, followed by the gracious speeches given by both candidates.

Consumer confidence is challenged by the uncertainties in the financial markets and a prolonged downturn in housing. As real estate professionals, we have an opportunity and an obligation to carry this positive message and energy forward, and help drive consumer confidence by tapping into this renewed American spirit as we talk to buyers and sellers.

The President-Elect has repeatedly called for “Change You Can Believe In.” By championing customer goals and helping them overcome their unique challenges, we add value as professional advisors to the real estate transaction and we make a positive impact on consumer confidence. Our services are more important than ever as potential home buyers struggle to understand existing conditions, new legislation and the financial options available to them in today’s marketplace.

We cannot control what the government will do, and we can no longer afford to wait passively for the market to turn the corner. It is time for us to change the direction of the market by getting back to the basics-making contacts, aggressively pursuing every lead, and arming our customers with the information they need to either keep their home or take advantage of the incredible values that exist.

On January 20, a new administration will take over leadership in Washington, D.C. Will the economy turn the corner that day? Not likely. So, as entrepreneurs, let’s take advantage of this opportunity for a fresh start in the New Year and focus on what we do control-our effort, our education and the value that we bring to the table on behalf of each and every customer. I’m confident that we can make a difference in the market and restore the dream of American homeownership throughout this great country.

POSTED BY: Sandy Thornton AT 06:50 am | Permalink | E-mail this

Friday, 16 January 2009

First Time Buyer Clout expected to grow 2009

First-Time Buyer Clout Expected to Grow in 2009

RISMEDIA, January 9, 2009-Already the dominate force in U.S. housing activity, the first-time buyer is expected to play an even bigger role in 2009 and possibly beyond.

“Our fourth quarter random survey of HouseHunt member-agents showed that first-time buyers accounted for 65% of existing home sales - up from 46% in the first quarter of 2008 - and nearly double the normal ratio between repeat and move-up buyers,” said Michael Bearden, president and CEO of HouseHunt, Inc. “Our latest national survey tells us that qualified first-time buyers are taking advantage of home prices not seen in five to seven years in many areas. Affordability is no longer a major issue in many areas across the country–especially in those metro areas where prices spiked dramatically between 2003 and 2006. Sales activity today is based on the willingness of lenders to lend. Our member agents report that most buyers with good credit histories are able to qualify for mortgage loans.”

Lawrence Yun, chief economist for the National Association of Realtors (NAR), said a higher market share of first-time buyers makes perfect sense, and it’s a trend he expects to grow: “First time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home. Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.” Yun also called for Congress to extend incentives like the first-time buyer tax credit to all home buyers.

HouseHunt’s survey of nearly 2,000 member-agents in 47 states in the fourth quarter of 2008 also found:

Market activity involving both first-time and repeat buyers has picked up dramatically in many areas. One example is Marie Gregor of Plaza Real Estate, exclusive HouseHunt member-agent in East Wichita, KS. She said: “My phone started ringing again right after the Christmas and New Years holidays. My e-mail responses also picked up. With three universities, Kansas State University medical school, three community colleges and McConnell Air ForceBase attracting a steady stream of potential home buyers and sellers, you can see why I’m optimistic that our market will continue to be strong for a long time.”

Home buyers are beginning to close the important buyer-seller ratio. Thirty-four percent of respondents reported more buyers than sellers, compared to 27% in the third quarter. Seventeen percent said the ratio is about even, up from 11%. This is the first time the buyer-seller trend lines have reversed since 2004.

Forty-six percent of home sellers report they are getting 95% or more of their asking prices. This is down from 61% who said they received 95% of their asking prices in the previous quarter.

Positive price appreciation was reported by one of four sellers in the past year. This ratio is virtually unchanged from the third quarter, indicating that home prices could be at or near a market bottom in many areas

Average time on the market — the time required between listing and sale - is also unchanged from the third quarter. Ninety-four percent said it is currently taking more than 60 days. Of that figure, 31% said 60 to 90 days; 40% said 90 to 120 days; and 23% said more than 120 days. Eight percent reported no change in the time required, compared with the third quarter.

The inventory of unsold homes is still trending upward. Forty-three percent of respondents reported decreases or no change. Total housing inventory of unsold homes on the market at the end of November was estimated at 4.20 million by NAR, representing an 11.2 month supply. A six-month supply is regarded as a more normal market.

Here’s a sampling of comments from additional member-agents participating in HouseHunt’s survey:

Scott Carrier of Keller Williams Realty, exclusive HouseHunt member-agent with his wife, Dana, for Germantown and Collierville, TN, reported increases in activity since the holidays from both first-time buyers and repeat buyers. “Financing is usually available to buyers with high credit scores and those using FHA. Most sellers are getting 94 to 98% of their asking prices,” Carrier said. “Average time on the market for a listing to sell is 90 to 120 days. Our average home price is $375,000. We have a lot of people upsizing to take advantage of lower prices.”

Greg Olson of RE/MAX Suburban Realty, exclusive HouseHunt member-agent for Schaumburg and Palatine in the Chicago metro area, reported a very busy December and first couple of weeks of January after a very slow fall. “Our prices are down to 2004 levels,” Olson said. “Our first-time buyer ratio is 65% or even higher. Most are young singles and younger couples who have rented for a few years.” He estimated time on the market at 60 to 90 days, on average. Average home price is $325,000.

Maureen D’Aiutolo of Key Realty Group in Gaithersburg, MD, exclusive HouseHunt member-agent for North Bethesda, estimated that 70 to 75% of her business is from first-time buyers. “Typically, they are new to the area and have been renting or they are renters who have been on the sidelines waiting for prices to go even lower. Price-wise, we’re down about 50%. Also motivating buyers is the fact that rental rates have just skyrocketed and that there are so many incentives available to buyers from both the state and the city. Traditional financing is also available to buyers with good credit.”

Tim Rogers of Keller Williams Advantage Realty, exclusive HouseHunt member-agent in State College, PA, said a student and faculty enrollment of 48,000 at Penn State University provides a steady flow of potential first-time and repeat buyers. “The university drives our real estate market,” he said, “and is also a market stabilizer for our area. Our biggest demand is for homes in the $175,000 to $225,000 range for students and in the $300,000 to $350,000 range for faculty and young professionals. We have about a six-month supply of homes on hand and lots of good financing programs available.”

POSTED BY: Sandy Thornton AT 10:50 am | Permalink | E-mail this

Thursday, 15 January 2009

Top Cities People Will Move in 2009 and North Carolina is up there

Top Cities People Will Move to in 2009

RISMEDIA, January 15, 2009-With job losses and the housing crisis continuing to weigh heavily in the news as the New Year unfurls, many people are making decisive changes in their lives, including moving. Relocation.com, a leading online consumer resource for moving services, reveals new information on where people are seeking to move to and out of throughout the U.S.

Despite the housing market struggles and a downturn in gaming revenues, Las Vegas still beckons to people looking for a fresh start, according to an analysis of moving requests from 2008 by Relocation.com. The data revealed that on a per-capita basis for cities with more than 1 million people, Las Vegas retained its top spot as the No. 1 destination for people looking to make a long distance state-to-state move.

Although the recession has spared no one area of the country, cities in the West and South continue to appeal to people relocating, whether it is moving to take a new job or finding a new home with more solid economic opportunities. Las Vegas was followed in popularity by: Denver, Charlotte, N.C., Phoenix/Mesa, Portland, Ore., Seattle, Orlando, Fla., Washington, D.C., Atlanta and Tampa Bay/St. Petersburg, Fla. The results are largely consistent with 2007.

“Relocation.com has a unique perspective on consumer moving patterns. We connect them with service providers, but also track interest and trends, ranging from family and home size, to locations where people are moving,” said Sharon (Ron) Asher, chairman and founder, Relocation.com.

The company’s 2009 moving forecast is showing some positive signs for the South, yet some Midwest states show continued signs of decline likely due to economic struggle.

Based on requests for moving quotes in 2008 and leading into 2009, the data is a strong indicator of consumer behavior for the coming year. Michigan and Ohio are declining likely due to automotive industry and other manufacturing job losses. However, North and South Carolina have gained and are expected to keep gaining.

For every 100 people looking to move to Michigan, 210 were looking to move out of the state. Ohioans also saw more people relocating: for every 100 people looking to move to Ohio, 150 requested moving quotes to move out of state.

The biggest beneficiary of these population displacements is North Carolina, which saw nearly 80% more requests to move to North Carolina than to leave (for every 100 people requesting moving quotes to leave the state, 180 indicated they wanted to move to it). South Carolina also saw a jump with nearly 70% more requests to move to the state than to leave, while Texas saw 66% more, and Georgia saw 36% more.

In general, the Northeast, the Great Lakes and the Midwest showed a greater propensity for moving-out requests to exceed moving-in requests, while the South, the Mountain West and the Pacific Northwest showed gains. The notable exception in the Pacific region is California, a state hard hit by the housing market. It saw more requests to move out of state than to move to the state.

Research Statistics

Relocation.com analyzed nearly 500,000 moving quote requests in 2008 to determine where people are moving. Figures from the U.S. census bureau indicate that 34 million people moved between 2007 and 2008. The company estimates that about three out of four people who make an inquiry on the Relocation.com family of sites, actually move within 12 months, representing nearly 3% of all Americans who move. The Census Bureau says the vast majority of movers in the U.S. make local moves; according to 2006 data, 62% of people making a move stayed within the same county, while 20% moved to a different county but within the same state. Fourteen percent moved state to state, while 3% moved from abroad.

POSTED BY: Sandy Thornton AT 01:39 pm | Permalink | E-mail this

Tuesday, 13 January 2009

Nine Real Estate Trends for 2009

RISMEDIA, Dec. 17, 2008-For even the most seasoned real estate professional, 2008 was a challenging year. As the credit market tightened, the economy sputtered, foreclosures soared and the stock market took a hit, many were wishing for a crystal ball to see just when to expect a turn-around.

While none of us know exactly when we’ll see big improvements in the Chicago-area real estate market, several local developers and agents offer up nine predictions for 2009:

1. Less, With More. Single-family homebuilders are predicting the continued movement toward smaller homes, with many buyers opting for less square footage as a means of saving more, said Jim Chittaro, chief financial officer for Naperville-based J. Lawrence Homes.

“We’ve definitely seen an increase in buyers opting for the smaller home with the lower base price, and then adding upgrades throughout,” said Chittaro. “Rather than paying more for square footage, they’re taking inventory of how much home they really need and deciding to go with a “quality over quantity” approach and adding features like a spa bath or gourmet kitchen that they’ll enjoy for years to come.”

Chittaro added that tomorrow’s buyers are also very energy conscious, which is another reason why builders who offer smaller homes might find themselves more successful going forward. “Energy efficiency is very important to buyers and they’re looking to save on utility costs when they can,” he said. “One way to do so is to choose a smaller home, which costs less to heat and cool. Builders will need to design plans that are as efficient as possible and not waste any space.”

2. The New American Dream. Homeownership has long been considered one of life’s benchmarks, so much so, that the concept earned the moniker, “The American Dream.” However, in today’s economic climate, realizing that dream is no longer an option for many people. Does that mean they haven’t yet made it? According to several of Chicago’s luxury rental developers and managers, not at all.

“Today, credit is tough to come by. Many people can no longer line up financing to purchase a home, but they still want an impeccably-designed place to live,” said Steve Fifield, president and founder of Fifield Companies who is developing K Station, a $750-million, 2,400-unit, master-planned community in Chicago’s Fulton River District. “That’s why our new-construction apartments include condo-quality finishes, such as stainless steel appliances and granite countertops, as well as luxury club-style amenities, including lounges, fitness centers, swimming pools and more.”

According to Tony Rossi, president of RMK Management Corp., which manages more than 8,000 apartment homes in the Chicago and Minneapolis areas, some renters simply choose not to purchase a home.

“Homeownership includes a lot of added responsibility, from maintenance to unexpected fees, so the ‘American Dream’ really isn’t the dream of every American,” Rossi said. “Many of our residents simply prefer the renter lifestyle. They can enjoy luxury homes and amenities, without worrying about long-term commitment. We imagine that even more people will choose this option in 2009.”

3. Urban Suburban. For years, a new-construction home in the suburbs meant moving into a cookie-cutter subdivision. But according to many suburban developers, their focus going forward won’t be simply building homes, but entire downtowns complete with residential, retail, restaurants and more.

In Lemont, Ill., a suburb 30 miles southwest of Chicago, the Lemont Downtown Redevelopment Project, by Marquette Companies, is a $250-million mixed-use development that includes The Front Street Lofts, four five-story buildings with 82 lofts above 24,000 square feet of first floor retail space.

“Instead of contributing to suburban sprawl, our goal is to revitalize Lemont’s historic downtown with new residential and retail offerings,” said Bruno Bottarelli, partner of Marquette Companies. “With our lofts, we’re able to offer buyers a unique housing style they can’t find anywhere else in the area.”

Five miles northeast of Lemont, Opus North has developed Burr Ridge Village Center, a mixed-use development that integrates condominiums, retail shops, restaurants, office space and pedestrian-friendly features into a 20-acre town center.

“Burr Ridge residents love having a true town center with restaurants like Cooper’s Hawk Winery & Restaurant and Topaz Café, as well as more than 20 stores from both national and local retailers,” said Kimberly Mans, assistant property manager for Burr Ridge Village Center. “Plus, no matter the season, residents can take advantage of events at the village green, ranging from movie nights and a farmer’s market to outdoor concerts and our annual holiday tree-lighting ceremony.”

4. Condo-MAX-iums. According to the National Association of Homebuilders, the average single-family home is 2,456 square feet. However, Chicagoland’s developers have noticed buyers - from young families to downsizers - are looking for the same amount of square feet when buying a condominium.

This bigger-is-better mentality is clear at Ten East Delaware, a luxury boutique high rise in the Gold Coast that offers plans as large as 2,910-square-foot plan.

“There is no substitute for space,” said Michael Reschke, chairman and CEO of The Prime Group, developer of Ten East Delaware. “At Ten East Delaware, we’re seeing many young professionals who want homes that offer enough room to host dinner parties and one day raise a family. They don’t want to outgrow their condo in five years. A true testament to this demand for spacious designs is the fact that we have only one remaining penthouse.”

Developer Winthrop Properties said its largest floor plans at Winthrop Club in Evanston, which measure up to 2,874 square feet, have been very popular among downsizers and will continue to gain momentum in 2009.

“What we’re finding is that downsizers don’t really want to downsize at all. They’re accustomed to the design of a single-family home and don’t want to sacrifice space,” said Bob Horner, co-principal of Winthrop Properties. “Rather, they seek the maintenance-free lifestyle and single-level living offered by a condo.”

Matt Nix, vice president of development for Opus North, agrees. According to Nix, the developer’s latest community, The Residences at Burr Ridge Village Center, has attracted many empty nesters that have lived in estate-style homes in the Burr Ridge area for years, and now want to enjoy the convenience of a large maintenance-free home that is within walking distance of shops and restaurants.

5. Online Toolboxes. According to the 2007 National Association of Realtors Profile of Home Buyers and Sellers, 84% of buyers use the Internet to search for a new home. Taking a cue from these findings, leading Chicagoland residential brokerage firms will be taking their services a step further by enhancing their sites with user-friendly Web tools that do much more than list homes for sale.

In 2008, @properties, one of the largest independently-owned real estate brokerage firms in the city of Chicago, released the @properties Market Report. This report, which is updated bi-annually, shows the average sales price and market time divided by neighborhood, and also by number of bedrooms and number of baths.

“Real estate is local in nature, so data that compares city to city home prices or number of days on the market doesn’t tell consumers anything about their specific home,” said Thad Wong, co-founder of @properties. “Instead, the Market Report lets users view data on homes that have the same number of bedrooms as theirs, in their same neighborhood, so it’s much more useful to the local home buyer or seller. It gives them a true ‘apples-to-apples’ comparison of home sales in their neighborhood.”

In addition, the recent launch of residential real estate brokerage firm Koenig & Strey GMAC’s new website provides home buyers and sellers with access to one of the first search-engine-optimized real estate sites on the Web.

“Not only does the new Koenig & Strey GMAC website make the best use of technology, but it also makes the best use of home buyers and sellers’ time,” said Ayers. “As a search-engine-optimized site, it’s designed to be indexable by search engines like Google and Yahoo! that consumers are already using, which makes for a much more efficient search process.”

6. Common Ground. In the city, where green space is as high in demand as a parking space, some developers will start going the extra “yard” to give Chicagoans more outdoor community spaces.

At K Station, a 2,400-unit apartment development in downtown Chicago’s Fulton River District, developer Fifield Companies and its joint-venture partner, Pacific Life Insurance Co., have built THEpark at K Station, a 1-acre park which they donated to the city of Chicago. “THEpark offers abundant green space, walking paths, a family play area, dog-friendly area and seating areas to the surrounding residents,” said Steve Fifield, president and founder of Fifield Cos. “It provides a common area that never before existed in the Fulton River District where residents can take their children and pets, or just hang out with neighbors.”

And in the bustling retail district of the Clybourn Corridor, residents will soon enjoy a 1-acre, fully-landscaped park and plaza that will be part of New City, a new 1-million-square-foot mixed-use development that will offer high-end, street-front retail at Clybourn Avenue and Halsted Street. “Residents will appreciate having an open green space - the first of its kind in this area - with dining tables and chairs where they can take a break from shopping, have a cup of coffee with friends or enjoy lunch from one of the nearby restaurants before running errands or picking up their kids from school,” said Michael Drew, co-founder of Structured Development LLC, developer of New City.

7. The Sure Thing. With the real estate market in turmoil, buyers will be betting on the sure thing, said Ibrahim Shihadeh, co-principal of Winthrop Properties, developer of Printers Corner in the South Loop. “With our building complete and immediate move-ins available, sales momentum has been strong,” he said. “We’re one of the few buildings in the area ready for move-in. Until things smooth out a bit, buyers will continue to opt for developments that are complete or nearly complete rather than risk something that won’t come to fruition or won’t be as it was promised.”

Also seeing strong demand for its immediate deliveries is Lexington Homes. The Chicago-based developer has move-in ready townhomes at Willow Place in Wheeling and Lexington Park in Des Plaines. Offering special pricing, homes at both communities are base-priced from the high $200,000s to the low $300,000s. “Many of today’s buyers are drawn to immediate-delivery homes because they like knowing exactly what their home will look like and when it’ll be ready for move in - the idea of selecting hundreds of finishes and waiting a year or so for delivery will no longer be the norm,” said Jeff Benach, co-principal of Lexington Homes.

8. The Resurgence of Rowhomes. Dating back to colonial Philadelphia and Boston, the rowhome is a hallmark of traditional city living. But at Port Clinton Place, a new-construction for-sale community in Vernon Hills developed by Opus North, and the Residences at the Grove, a 294-unit luxury rental community in Downers Grove, managed by RMK, even suburban residents will be enjoying the urban flavor of this classic housing style.

“Rowhomes were born out of practicality, as their shared walls made it possible to fit more homes in densely-populated urban areas. But today, many suburban buyers are choosing these homes for their urban style and overall aesthetic appeal,” said Andrew Lockwood, real estate director for Opus North. “It’s a housing style that’s particularly appropriate at Port Clinton Place, which is part of a redevelopment plan to revitalize downtown Vernon Hills. Eventually this area will be a lively town center, much like the city neighborhoods where rowhomes first became popular.”

According to Tony Rossi, the rowhomes at the Residences at the Grove provide renters with more square footage. “It’s rare for renters to be able to enjoy things like attached, two-car garages or multi-level living, without having to rent directly from a homeowner. At the Residences at the Grove, they get a home that feels more like a single-family home than an apartment, but still have the advantages of living in a rental community, such as on-site maintenance and club-style amenities.”

9. Creating Community. Many developers today are taking strides to form a sense of community among new residents before their homes are built - a trend that is expected to continue into 2009. Two Chicagoland communities - Park Place of Elmhurst, a new continuing-care retirement community sponsored by Providence Life Services, and Marquette Companies’ The Front Street Lofts in historic downtown Lemont - have distinctive ways to foster friendships among future residents before they move into their new community.

Park Place of Elmhurst enhances community growth with its monthly program Positively Park Place, which includes cultural outings and presentations for future residents. Kristine Graeber, sales and marketing manager for Park Place of Elmhurst said, “Many of our future residents are very active and interested in the arts, so events like our architectural boat tour or our trip to the Art Institute not only connect them with potential neighbors who have similar interests, but enrich them mentally.”

At The Front Street Lofts, developer Marquette Companies has partnered with the Village of Lemont to establish the Institute for Community in order to create strong relationships between residents and merchants in the revitalized downtown Lemont business district. Under this Community of Commerce initiative, merchants and business owners work together to help their mutual businesses thrive.

“Until the market corrects itself, it will be more important than ever before for buyers to feel good about their home purchase and their community,” said Mike Vickery, executive director of the non-profit Institute for Community. “Empowering residents and businesses alike to guide the development of downtown Lemont will add value to and stimulate growth in the community, as well as attract new home buyers.”

POSTED BY: Sandy & Steve Thornton AT 08:57 am | Permalink | 0 Comments | E-mail this

Monday, 12 January 2009

Economic Slump Weakens Pending Home Sales

RISMEDIA, January 7, 2009-After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

Lawrence Yun, NAR chief economist, said a weakening was inevitable.

“Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” he said. “December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”

Yun said the outlook will depend heavily on the stimulus package. “With a proper real-estate focused stimulus measure, home sales could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country. Stable home prices will, in turn, lessen foreclosure pressures and lay the foundations for a solid economic recovery as the nation’s 75 million homeowners regain confidence,” he said.
The impact of mortgage interest rates declining to near 50-year lows in December is not reflected in current data.

The PHSI in the Northeast dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. The index in the South declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2 but remains 19.3 percent higher than November 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there can’t be an economic recovery without a focus on housing. “It’s crucial for Congress and the new administration to move quickly to remove impediments and offer home buyers the incentives they need to tap into today’s historic low mortgage interest rates,” he said.

“NAR advocates expanding a $7,500 tax credit to all home buyers and eliminating the repayment feature, and permanently raising loan limits to bring down interest rates for many buyers in high-cost areas. We also need to expedite short sales and unclog the mortgage pipeline,” McMillan said.

The 30-year fixed-rate mortgage should hold fairly steady through the first half of the year and rise slightly in the second half. NAR’s housing affordability index, which looks at the relationship between home prices, mortgage interest rates and family income, is on track to match a record high set in 1972.

“The unique housing affordability conditions in today’s market underscore the opportunity in giving consumers the necessary incentives to stimulate our economy through a housing recovery,” Yun said.

POSTED BY: Sandy & Steve Thornton AT 08:37 am | Permalink | 0 Comments | E-mail this

Sunday, 11 January 2009

A Silver Lining for Real Estate - Really

A Silver Lining for Real Estate - Really

Home-selling Strategies by Chris Kaucnik

RISMEDIA, January 9, 2009-We know you might prefer not to, but think back to 2008. We’re talking about November-ish when NAR came out with its 2008 Profile of Home Buyers and Sellers. Maybe you glanced over the survey numbers; maybe you didn’t. But, after a review, we’ve found a real silver lining for real estate. It may even be the harbinger of how our futures might begin to shape up again in our neighborhoods and communities.

From a buyer’s perspective, the survey showed an increasing level of first-time home buyers. While this is good news in itself, it isn’t what struck us as most important. It’s how they are buying that’s more important. They are buying smarter with the intention of staying in the home a lot longer, and they are taking out fixed-rate mortgages, while providing down payments from savings.

OK, maybe these first-time home buyers are being nudged into fixed-rate loans and higher down payments by their lenders, but nevertheless, they have the savings and are buying. That’s all good, along with the fact that they have no other home to sell. We believe this trend will help restore our communities with an infusion of young people and families, and it will create more investment and engagement in them for the longer term. And that’s just what the economists’ ordered for stability and normal appreciation of home values to resume.

At the risk of turning you into a junkie, we’ll give you some more good news. Only 1% of sellers chose their agent based on his or her commission; nine out of 10 would use the same agent again and refer that agent, while 81% used a full-service brokerage.

Home buyers and sellers understand the value a real estate agent brings to the transaction and truly want to have a great relationship they can leverage into their next transaction. They also appreciate the need in this economy to go the extra mile to help you sell their home. Over 40% of agents offered incentives to attract buyers, such as home warranties and assistance with closing costs.

This also tells us buying or selling a home remains the largest decision consumers generally make in their lives, and they will not engage just anyone to guide them through it-no matter what the economic conditions. They crave your personal contact, negotiation skills and valued expertise in the neighborhoods and communities you serve.

Start the new year out with these positive thoughts and have an incredibly successful 2009!

Chris Kaucnik is marketing director for Home Warranty of America, Inc.

POSTED BY: Sandy Thornton AT 11:23 am | Permalink | E-mail this

Saturday, 10 January 2009

New Brunswick Schools Redistricting

Brunswick school board releases redistricting proposals

By Ana Ribeiro
Staff Writer

Published: Wednesday, January 7, 2009 at 1:47 p.m.
Last Modified: Wednesday, January 7, 2009 at 10:32 p.m.

Bolivia | The time is nearing to open two new schools in Brunswick County and move hundreds of students to populate them.

Click to enlarge

Construction continues at Cedar Grove Middle School in Supply on Wednesday. The school is set to open in August 2009.

Staff Photo by Matt Born

Brunswick County Schools redistricting meetings

The plans will be presented to the Brunswick County school board at 4 p.m. Tuesday at the central office, 35 Referendum Drive, Bolivia.
The public will be able to discuss the plans at public forums. The one for Cedar Grove Middle School will be held at the Supply Elementary School cafeteria at 6:30 p.m. on Jan. 27. The one for Town Creek Elementary School will be held at the Leland Middle cafeteria at 6:30 p.m. on Jan. 28.
For more information, call the county school system at 253-2900.

External Links:

Brunswick redistricting - PowerPoint

The county schools’ staff will present redistricting options to the school board Tuesday, and hold public forums on the plans later this month. If you have a child at a public school in the county, you may want to attend: The changes will likely affect more than the immediate areas where Cedar Grove Middle and Town Creek Elementary schools are slated to open in August.

Stephen Miley, the schools’ executive director of operations, said he expects the new schools to have some vacant seats after they open.

“We’re hoping to have some room for growth,” Miley said. “This has been our problem – the schools are filled to capacity.”

The new schools, expected to draw students from crowded schools in the county, will serve to level things out and make it easier for the school system to renovate existing schools, Miley said. He intends to propose a $26 million capital improvement plan at Tuesday’s meeting.

The money to build and equip the new schools – about $35 million – comes from a BB&T loan to be repaid over 20 years or so, said Freyja Cahill, the schools’ finance officer.

Also, Miley said, the school system has purchased four extra buses, at $80,000 each, to cover the new schools and address an increase in ridership, which is currently at 6,400 students.

Miley emphasizes the redistricting maps will not be official until the school board decides on an option, considering community input.

He and other school officials were reluctant to release the maps to the media before the board could review them, but they granted a Star-News request for the public records after the school board consulted with its attorney in closed session.

Here are some stats the district provided on its two new schools and what redistricting could mean:

Cedar Grove Middle, 750 Grove Trail, Supply.

The centrally located school being built along with a county park in the Cedar Grove community will be able to hold 650 students in grades 6-8. It will have 37 classrooms and 30 or so teachers. It also will have a gymnasium and multi-use field and access to the park’s soccer, football and baseball fields and tennis and basketball courts.

Current redistricting options call for the new school to draw between 255 and 310 students from Shallotte Middle and 88 to 145 from South Brunswick Middle. Students being promoted would mostly come from Supply and Virginia Williamson Elementary schools, with some perhaps from Southport Elementary and very few from Bolivia Elementary.

The new middle school will cost the district an estimated extra $1.12 million in annual personnel salaries.

Town Creek Elementary, 6330 Lake Park Drive, Winnabow.

The school, located south of Leland near Town Creek Park, will have the capacity for 636 students in pre-K through fifth grades. It will have about 30 teachers, a gymnasium with a stage and cafeteria and 34 classrooms. It also will feature a baseball and soccer field, basketball courts and playground equipment in a large play area.

Current redistricting options could bring to the new school between 205 and 329 students from Belville Elementary, dubbed the most crowded school in the county. In a large variation, one option calls for 53 students to come from Lincoln Elementary, while another calls for 212. Bolivia Elementary could also be affected, with between 132 and 149 students possibly being transferred to the new elementary school. The school will cost the district an estimated extra $739,284 in annual personnel salaries.

Ana Ribeiro: 343-2327

ana.ribeiro@starnewsonline.com

POSTED BY: Sandy Thornton AT 06:28 am | Permalink | E-mail this

Thursday, 08 January 2009

Beyond Staging

Beyond Staging - Refreshing the Home

Home Trends by Melissa Birdsong

RISMEDIA, Jan. 1, 2009-Staging has been the buzzword in real estate for the past several years. But taking the next step to refreshing can really set one home apart from the rest.

Buyers look at a lot of homes. So how do you make sure a home is memorable to a buyer? Having a well-staged home is now the rule rather than the exception for a faster sell and a better price. Try to think beyond the obvious for ways to make the entire home feel updated and inspired.

A fresh coat of paint on worn walls provides a “wow” factor without excessive cost or effort. While this isn’t new news, something that tends to get overlooked (and can have just as much impact) is painting the trim and other accents that may have gotten scuffed or dingy over the years. Freshly painted trim work is cleaner and a healthy home environment is very appealing to buyers.

Hardware is a quick fix as well. Switching out knobs and pulls in the kitchen or bath will catch the eye and revive an entire room. Taking it a step further to update faucets, light fixtures and even switch plates can take a space from ordinary to inspiring. Area rugs, lamps and plants are also quick ways to add life and warmth to a room with the convenience of portability. Because they are easily changeable, updating “unattached” items can instantly modernize a space with a fresh style.

And don’t forget first impressions-exactly how fast are prospective buyers driving past the home? No brake lights? A quick tap and then accelerate? Or do they come to a full stop to get a better look? That fresh, new interior will never be revealed if the curb appeal of the exterior is blasé. Everything from container gardening and clean welcome mats to new storm doors and shutters can pull that buyer into your drive.

Artistic staging can showcase the best features in a home. But in today’s market, take a refreshing approach-go that extra mile and look for ways to make the home memorable to a potential buyer.

Melissa Birdsong is vice president for Trend, Design & Brand, Lowe’s Companies, Inc.

POSTED BY: Sandy Thornton AT 01:27 pm | Permalink | E-mail this

Tuesday, 06 January 2009

First-Time Homebuyer Tax Credit

By Wayne Faulkner
Business Editor

This may be the year you really want to file your income tax returns early.

For first-time homebuyers, it's a chance to get your hands on up to $7,500 via a tax credit approved by Congress last year.

It is not, however, a way to get a down payment on a house - or to pay closing costs or any other housing cost in advance of its purchase, said Chris Hutchens of Alpha Mortgage in Wilmington.

But it does offer a stimulus to those who have spent their last dollar to buy a home. That $7,500 could help pay for furniture, pay off credit card debt or replenish savings.

The tax credit is actually a no-interest loan that must be paid back over a 15-year period.

There is a way to tap into the equivalent of the tax credit sooner than when you file your 2008 or 2009 tax return.

Prospective homebuyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding, according to the National Association of Home Builders tax credit Web site - www.FederalHousingTaxCredit.com.

Reducing tax withholding (up to the amount of the credit) will enable the future homebuyer to accumulate cash by raising his/her take-home pay. This money can then be applied to the down payment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment.

What homes qualify?

Any home purchased by an eligible first-time homebuyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats, according to the National Association of Home Builders.

It's not a deduction

Unlike a tax deduction, the tax credit comes right off the federal income tax you owe, said Mark Hanson, Greensboro-based spokesman for the IRS in the Carolinas.

If, for example, you had $3,000 withheld from your paycheck

for federal income taxes in 2007, but you actually owe only $2,500, you would normally be due a $500 refund.

With the tax credit, your refund would climb to $500, plus $7,500 - or $8,000.

It's temporary

What if you have not yet bought a home? The tax credit applies to those who buy between April 9, 2008, and July 1, 2009. Several national organizations, including the National Association of Realtors, are already pushing to have that July 1 deadline extended.

'First-timers'

The definition of first-time buyer is a liberal one. The buyer cannot have owned a home in the preceding three years. That means that if at one time more than three years ago you owned a home, but then sold it and have rented since, you can still qualify as a first-time buyer.

Technically, the tax credit is equal to 10 percent of the cost of a home up to $75,000. If the home is $250,000, you still can get only a $7,500 tax credit.

Payback

The tax credit is really a no-interest loan that must be repaid beginning in two years at roughly $500 a year for 15 years. Homebuyers who sell their home before the credit is repaid must pay off the loan. If they sell the home at a loss, the loan is forgiven.

Income limits

The credit is not meant to help the affluent. So there are income limits. This is where it gets a little tricky.

A single person cannot have a modified adjusted gross income, or MAGI, of more than $75,000 a year. The figure for a married couple is no more than $150,000. Single or married, though, the tax credit is still $7,500, Hanson explained.

Singles and couples with a MAGI up to $95,000 and $170,000, respectively, can get a reduced tax credit. Those with higher incomes don't qualify for any homebuyer tax credit.

What is MAGI?

Note that the income limits are based on modified adjusted gross income. It's different from adjusted gross income.

Adjusted gross income is your income after certain deductions such as a contribution to an IRA or a health savings account, a student loan interest deduction and payment of alimony.

Those deductions do not include the ones itemized from Schedule A.

To find your modified adjusted gross income, or MAGI, you take your adjusted gross income and add back in certain deductions such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

POSTED BY: Sandy and Steve Thornton AT 11:42 am | Permalink | 0 Comments | E-mail this

Monday, 05 January 2009

Analysis: Despite Recession, Positive Signs In Cape Fear Area

By Wayne Faulkner
Business Editor

This time of year, it helps to have some good news – even if it’s just hope for the future.

Americans have suffered real losses in the job, housing and stock markets. Whole industries are threatened, from automakers looking to be bailed out, to newspapers – including the Star-News – undergoing restructuring to capture the future of readership: online.

Wilmington has seen establishments close – but also open. A credit crunch is squeezing some firms as banks call in loans and others won’t lend to fund business operations. They haven’t even been lending to each other – one reason that the Federal Reserve last week started offering what is essentially 0 percent financing to banks.

Wilmington’s economy is diversified, but real estate and construction are a major part of the equation here. So anything positive on that front is as welcome as a single week without a major delay on the Cape Fear Memorial Bridge.

Here are some other positive economic signs amid the gloom:

Average mortgage rates fell to their lowest point nationwide – an average 5.19 percent – since the government mortgage firm Freddie Mac began tracking them 37 years ago. Rates have fallen to such a point – one Wilmington firm was quoting a 30-year, fixed-rate loan at around 4.37 percent last week – that refinancers are seeing a way to cut their house payments by a chunk.

For example, a $200,000 mortgage at the early January rate of 6.07 percent would equal a monthly payment of about $1,208 before adding in property taxes and insurance. At 4.375 percent, it falls to about $998.

Builders and real estate agents, of course, are hoping that those same rates will attract buyers into the moribund market here. It’s debatable whether “it’s never been a better time to buy a home,” but first-time buyers can benefit from the new $7,500 U.S. tax rebate to help with the down payment, according to Donna Girardot, executive officer of the Wilmington-Cape Fear Home Builders Association.

And, if you look way out West, you might see past the housing train wreck to a pinpoint of light at the end of the tunnel. It might not sound like good news, but depending on your perspective, it’s a start: Home resale prices in some areas of California, Nevada and Arizona have fallen to the point that they are attracting buyers.

The National Association of Realtors reported that existing-home sales in October were 37.5 percent higher in the West than in October 2007.

One reason might be that the median price was down 27 percent, to $231,400.

In other words, prices have come down to the level of the middle-class shopper and are attracting first-time buyers as well as investors scouring the ample supply of foreclosed homes, Realtors say.

In the Wilmington area, sales continue to show declines from year-earlier levels, but prices have slipped only a little since the boom year of 2005, according to data from the Wilmington Regional Association of Realtors.

Another boost to the holiday spirit: Our area has seen a five-year appreciation in home value that is topped by only eight other metro areas out of 293, according to a study by the Federal Housing Finance Agency.

The Wilmington area, which comprises New Hanover, Pender and Brunswick counties, saw a 62.1 percent increase over the period, while Honolulu recorded the highest, at 78.7 percent, according to the agency’s third-quarter survey.

Virginia Beach was No. 2 and the only other Southern city to make the top 10. Western cities dominated, especially in Washington, where there were four cities in the top 10.

The survey also found that the vast majority of markets showed gains in home values over the past five years.

Some of the areas with the biggest five-year declines, however, had seen big jumps during the boom of 2005: Merced, Modesto, Salinas, Stockton and Vallejo, Calif. The biggest loser, though, was Detroit at a minus 18.36 percent. Let’s count our blessings.

Unemployment here has risen dramatically here over the last year, but October’s figures showed the Wilmington area rate at 6.2 percent. That was still below October’s 7 percent statewide figure.

The area’s relative good fortune on the jobs front is no help, however, to the hundreds of people who have lost their jobs either temporarily or permanently at places like U.S. Marine in Navassa, Georgia-Pacific in Whiteville and Louisiana-Pacific in Wilmington, all except those at the Navassa boatyard are related directly to the downturn in housing. Additionally, next month Corning plans layoffs at its plant here.

Meanwhile, though, GE Hitachi Nuclear Energy has ramped up hiring this year – by 300 jobs, the company said Friday. New contract and clinical research organizations have arrived in town and the health-care industry continues to bolster our job base . In fact, it was the fastest growing employment sector in the state over the past year, adding nearly 16,000 jobs statewide.

But the bad news just keeps coming. On Friday, the N.C. Employment Security Commission reported that unemployment soared statewide in November, to 7.9 percent.

Will we hit bottom in 2009? Economists, home builders, retailers and others hope so.

POSTED BY: Sandy & Steve Thornton AT 08:06 am | Permalink | 0 Comments | E-mail this

Thursday, 01 January 2009

Master the Foreclosure Market

Master the Foreclosure Market

Foreclosure Fundamentals by Rick Sharga

RISMEDIA, Dec. 26, 2008-With foreclosures continuing to rise in most areas of the country, one of the most common questions asked of real estate professionals these days is some variation of the following: “Is now a good time to buy a foreclosure?”

I get this question routinely and my short answer is simply, “check with your local real estate agent.” I say that because the most accurate answer to the question is based on local market conditions and the individual financial status of the prospective buyers-two pieces of information best determined by a good, local real estate agent. Unfortunately, however, some agents are still steering their clients away from foreclosures simply because the agents don’t understand how foreclosures work.

That’s regrettable because I believe that the coming months could represent one of the best opportunities in our lifetimes to buy or invest in real estate-specifically foreclosures. The free market metronome tends to swing to extremes before settling back into a reasonable rhythm.

What we saw over the past few years in many parts of the country was a real estate market ratcheted up to an unsustainable rate. Homes were far overvalued and overpriced, builders scrambled to meet future supply based on demand artificially inflated by speculative buyers-who relied on risky loans that were provided by lenders with risk analysis clouded by seemingly insatiable demand from investors in the secondary mortgage market.

Now, the market has moved back to the other end of the spectrum and everything is slowing to a snail’s pace: home prices in many areas are plummeting, builders are inactive and many prospective buyers and investors are sitting on the sidelines, waiting as the inventory of homes for sale balloons. That makes the market all the more attractive to fiscally sound buyers and investors because it gives them an ideal environment in which to find the best property at the best price to fit their wants and needs-they shouldn’t settle for anything less.

Foreclosures are the cream of the crop in such a real estate market because they typically represent the most motivated sellers and, therefore, give the biggest advantage to buyers. And many buyers realize that and are interested in an agent who can help them with foreclosures. That means agents who want their businesses to thrive over the next five years should learn to master the foreclosure market.

A great resource to get started is the Education Center on RealtyTrac (www.realtytrac.com/learning/index.html , where you can find free information on the foreclosure process, summaries of state foreclosure laws, and links to more in-depth training programs.

POSTED BY: Sandy Thornton AT 08:26 am | Permalink | E-mail this