The nation’s foreclosure crisis and economic pressures, such as rising unemployment, continue to batter the U.S. housing market, as evidenced by the latest figures from the Census Bureau on homeownership rates.
Data released by the federal agency Tuesday shows that the U.S. homeownership rate dropped to 66.9 percent during the second quarter of this year, hitting its lowest mark in more than 10 years.
The Census Bureau reports that approximately 85.6 percent of the housing units in the United States last quarter were occupied. Owner-occupied homes made up
57.3 percent of total housing units, while renter-occupied units made up 28.3 percent of the inventory.
The number of homes sitting empty during the second quarter, including foreclosures and residences for sale, as well as vacation homes, claimed 14.4 percent of the nation’s total housing stock. Vacant properties rose from 18.6 million in Q2 2009 to 18.9 million in Q2 2010, according to the Census Bureau’s report.
As the homeownership rate continues its slide and turmoil in the market has many would-be buyers questioning the soundness of sinking their money into a home, apartment landlords are experiencing a surge in rental activity.
A separate report released by the market analytics firm MPF Research shows that 215,000 previously empty apartment units in the largest U.S. markets became occupied during the first half of this year.
The company says that six-month figure is nearly double the number of units that were filled during the full 2009 year, and the highest mid-year tally since MPF began tracking apartment occupancy statistics in 1992.
The firm found that the apartment vacancy rate fell to 6.6 percent as of the end of June, down from 8.2 percent last December.
-----------------------------------
Article written by Carrie Bay - DSNews.com
©2010 DS News. All Rights Reserved.
The Gray Rider
The Gray Rider Real Estate Co.-
Thursday, July 29, 2010
IT'S STILL A BUYERS MARKET
The real estate downturn has sent home prices tumbling, inflated housing inventories, and prompted stimulus programs that have pushed mortgage rates to record lows and given homebuyers tax breaks and cash incentives for their purchases.
Undoubtedly, it’s a buyers’ market. A new study released by J.D. Power and Associates Wednesday confirms that with today’s bargain-basement market conditions, homebuyers are giving their real estate experiences a thumbs-up. Sellers, on the other hand, aren’t nearly as pleased once the deal is done.
Satisfaction with national real estate companies among homebuyers has improved over the past year. Overall satisfaction among homebuyers is now averaging 803 on J.D. Power’s 1,000-point scale – an increase of 12 points from the 2009 reading. The company says this improvement is primarily driven by increased satisfaction with agents and salespersons.
In contrast, overall satisfaction among home sellers has declined by 40 points from 2009 and averages 742 in 2010. Among home sellers, the largest drop-off in satisfaction was observed in marketing of the home and the scope of additional services offered by agents.
“Among both homebuyers and home sellers, the importance of agents and salespersons has increased substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem to be satisfied with the purchase prices they are obtaining.”
Howland continued, “Despite the fact that selling agents appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies.”
J.D. Power’s study, now in its third year, measures customer satisfaction of home buyers and sellers with the largest national real estate firms.
Overall satisfaction is determined by examining three factors for the homebuying experience: agent/salesperson; office; and additional services. Four factors are examined for the home-selling experience: agent/salesperson; marketing; office; and additional services.
--------------------
Article written by Carrie Bay - DSNews.com
Undoubtedly, it’s a buyers’ market. A new study released by J.D. Power and Associates Wednesday confirms that with today’s bargain-basement market conditions, homebuyers are giving their real estate experiences a thumbs-up. Sellers, on the other hand, aren’t nearly as pleased once the deal is done.
Satisfaction with national real estate companies among homebuyers has improved over the past year. Overall satisfaction among homebuyers is now averaging 803 on J.D. Power’s 1,000-point scale – an increase of 12 points from the 2009 reading. The company says this improvement is primarily driven by increased satisfaction with agents and salespersons.
In contrast, overall satisfaction among home sellers has declined by 40 points from 2009 and averages 742 in 2010. Among home sellers, the largest drop-off in satisfaction was observed in marketing of the home and the scope of additional services offered by agents.
“Among both homebuyers and home sellers, the importance of agents and salespersons has increased substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem to be satisfied with the purchase prices they are obtaining.”
Howland continued, “Despite the fact that selling agents appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies.”
J.D. Power’s study, now in its third year, measures customer satisfaction of home buyers and sellers with the largest national real estate firms.
Overall satisfaction is determined by examining three factors for the homebuying experience: agent/salesperson; office; and additional services. Four factors are examined for the home-selling experience: agent/salesperson; marketing; office; and additional services.
--------------------
Article written by Carrie Bay - DSNews.com
Tuesday, July 27, 2010
CONSUMER CONFIDENCE DIMS AS HOME PRICES CLIMB
NEW YORK (Reuters) – Job worries drove July consumer confidence to its lowest since February, with one in six people expecting lower income in the next six months, underscoring the precarious state of economic recovery.
Home prices rose in May but display no signs of a sustained rebound as long as unemployment flirts with 10 percent and a record stockpile of foreclosed houses looms over the market, a separate report showed on Tuesday.
Single-family house prices remain 29.1 percent below peaks four years ago, according to a Standard & Poor's/Case-Shiller index.
The deepest housing crash since the Great Depression dragged the U.S. economy into recession, and is doing little to stimulate broader growth as many economists fret about a possible double-dip recession.
The Conference Board, a New York-based business and economics research group, reported that consumer attitudes worsened this month as did expectations about jobs being hard to get.
"Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves," said Lynn Franco, Director of The Conference Board Consumer Research Center.
The group's index of consumer attitudes fell to 50.4 in July from an upwardly revised 54.3 in June, below the median forecast of 51 in a Reuters poll.
The "jobs hard to get" reading, meanwhile, rose to 45.8 percent from 43.5 percent.
The tepid consumer data tempered stock market gains. Treasuries fell in the face of new supply.
"There have been quite a few headwinds -- the fiscal stimulus is fading, the European situation certainly did have an impact on consumer confidence and inventories are being brought more into line," said David Sloan, economist at 4Cast Ltd in New York. "But clearly the big problem for consumers is jobs."
U.S. unemployment stood at 9.5 percent in June, the lowest in nearly a year, but reflected people leaving the workforce rather than a trend toward greater hiring.
New jobless benefits claims, to be reported by the Labor Department on Thursday, are seen are seen dipping to 459,000 in the week ended July 24 from a surprisingly high 464,000 the prior week
"Without consumers on board, the economic recovery is looking dangerously vulnerable," Paul Dales, U.S. economist at Capital Economics in Toronto, wrote in a report. "Falling consumer confidence and the growing likelihood of a double-dip in house prices have put a further dent in the already deteriorating outlook for consumption growth."
Consumer sentiment fell to a nearly one-year low in July on renewed fears about economic stability, according to the Thomson Reuters/University of Michigan's Surveys of Consumers earlier this month. The final data will be reported on Friday.
U.S. single-family home prices rose more than expected in May, but still reflected robust spring sales spurred by now-expired homebuyer tax credits, the S&P/Case-Shiller home price indexes showed.
May is a strong seasonal period for home sales, and buyers who rushed to sign contracts by the April 30 deadline for up to $8,000 in tax credits have until September 30 to close loans.
Seven of the 20 largest metro areas still reported lower prices than a year ago and most economists predict further single-digit declines before any sustained upturn. A record inventory of foreclosed properties further threatens prices.
"For me, a double-dip is another recession before we've healed from this recession ... The probability of that kind of double-dip is more than 50 percent," Robert Shiller, professor of economics at Yale University and co-developer of the price index told Reuters Insider.
The 20-city composite price index in May rose 0.5 percent, seasonally adjusted, after an upwardly revised 0.6 percent April gain, topping the 0.2 percent rise seen in a Reuters poll. The index was 4.6 percent above last May, S&P said.
Prices jumped 1.3 percent on an unadjusted basis after a 0.9 percent April gain and falls in the six prior months.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still does not indicate that the housing market is in any form of sustained recovery," David M. Blitzer, chairman of the Index Committee at Standard & Poor's, said in a statement.
Sales of new homes in June, reported on Monday, surged 23.6 percent but remained at the second-lowest level since the Commerce Department started keeping records in 1963.
The government is expected to report on Friday that gross domestic product growth slowed to a 2.5 percent annual rate in the second quarter from a 2.7 percent pace in the first.
------------------
Article written by Lynn Adler - Reuters
(Additional reporting by John Parry, Chris Reese, Jennifer Rogers and Julie Haviv; Editing by Andrew Hay)
Home prices rose in May but display no signs of a sustained rebound as long as unemployment flirts with 10 percent and a record stockpile of foreclosed houses looms over the market, a separate report showed on Tuesday.
Single-family house prices remain 29.1 percent below peaks four years ago, according to a Standard & Poor's/Case-Shiller index.
The deepest housing crash since the Great Depression dragged the U.S. economy into recession, and is doing little to stimulate broader growth as many economists fret about a possible double-dip recession.
The Conference Board, a New York-based business and economics research group, reported that consumer attitudes worsened this month as did expectations about jobs being hard to get.
"Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves," said Lynn Franco, Director of The Conference Board Consumer Research Center.
The group's index of consumer attitudes fell to 50.4 in July from an upwardly revised 54.3 in June, below the median forecast of 51 in a Reuters poll.
The "jobs hard to get" reading, meanwhile, rose to 45.8 percent from 43.5 percent.
The tepid consumer data tempered stock market gains. Treasuries fell in the face of new supply.
"There have been quite a few headwinds -- the fiscal stimulus is fading, the European situation certainly did have an impact on consumer confidence and inventories are being brought more into line," said David Sloan, economist at 4Cast Ltd in New York. "But clearly the big problem for consumers is jobs."
U.S. unemployment stood at 9.5 percent in June, the lowest in nearly a year, but reflected people leaving the workforce rather than a trend toward greater hiring.
New jobless benefits claims, to be reported by the Labor Department on Thursday, are seen are seen dipping to 459,000 in the week ended July 24 from a surprisingly high 464,000 the prior week
"Without consumers on board, the economic recovery is looking dangerously vulnerable," Paul Dales, U.S. economist at Capital Economics in Toronto, wrote in a report. "Falling consumer confidence and the growing likelihood of a double-dip in house prices have put a further dent in the already deteriorating outlook for consumption growth."
Consumer sentiment fell to a nearly one-year low in July on renewed fears about economic stability, according to the Thomson Reuters/University of Michigan's Surveys of Consumers earlier this month. The final data will be reported on Friday.
U.S. single-family home prices rose more than expected in May, but still reflected robust spring sales spurred by now-expired homebuyer tax credits, the S&P/Case-Shiller home price indexes showed.
May is a strong seasonal period for home sales, and buyers who rushed to sign contracts by the April 30 deadline for up to $8,000 in tax credits have until September 30 to close loans.
Seven of the 20 largest metro areas still reported lower prices than a year ago and most economists predict further single-digit declines before any sustained upturn. A record inventory of foreclosed properties further threatens prices.
"For me, a double-dip is another recession before we've healed from this recession ... The probability of that kind of double-dip is more than 50 percent," Robert Shiller, professor of economics at Yale University and co-developer of the price index told Reuters Insider.
The 20-city composite price index in May rose 0.5 percent, seasonally adjusted, after an upwardly revised 0.6 percent April gain, topping the 0.2 percent rise seen in a Reuters poll. The index was 4.6 percent above last May, S&P said.
Prices jumped 1.3 percent on an unadjusted basis after a 0.9 percent April gain and falls in the six prior months.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still does not indicate that the housing market is in any form of sustained recovery," David M. Blitzer, chairman of the Index Committee at Standard & Poor's, said in a statement.
Sales of new homes in June, reported on Monday, surged 23.6 percent but remained at the second-lowest level since the Commerce Department started keeping records in 1963.
The government is expected to report on Friday that gross domestic product growth slowed to a 2.5 percent annual rate in the second quarter from a 2.7 percent pace in the first.
------------------
Article written by Lynn Adler - Reuters
(Additional reporting by John Parry, Chris Reese, Jennifer Rogers and Julie Haviv; Editing by Andrew Hay)
Thursday, July 22, 2010
TAXPAYER TAB FOR FANNIE, FREDDIE, OTHER HOUSING BULGES BY $700 BILLION
Increased housing commitments swelled U.S. taxpayers' total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday.
The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government's pledges to supply capital to Fannie Mae and Freddie Mac and to guarantee more mortgages to the support the housing market.
Increased guarantees for loans backed by the Federal Housing Administration, the Government National Mortgage Association and the Veterans administration increased the government's commitments by $512.4 billion alone in the year to June 30, according to the report.
"Indeed, the current outstanding balance of overall Federal support for the nation's financial system ... has actually increased more than 23% over the past year, from approximately $3.0 trillion to $3.7 trillion — the equivalent of a fully deployed TARP program — largely without congressional action, even as the banking crisis has, by most measures, abated from its most acute phases," the TARP inspector general, Neil Barofsky, wrote in the report.
The total includes Federal Reserve programs and a myriad of asset guarantees, including Federal Deposit Insurance Corp. protection for bank deposits.
The increased government commitments more than offset about a $300 billion decline in the U.S. Treasury's TARP commitments in the past year as programs have closed and banks have repaid taxpayer funds.
Barofsky also in the report ramped up his criticism of the Treasury's housing relief efforts, saying that its program to reduce monthly mortgage payments for struggling homeowners was showing "anemic" participation numbers and had failed to "put an appreciable dent in foreclosure filings."
He said Treasury had refused his repeated recommendations to announce more effective goals and benchmarks for its mortgage modification program, which could reach up to $50 billion in TARP funds.
"Treasury's refusal to provide meaningful goals for this important program is a fundamental failure of transparency and accountability that makes it far more difficult for the American people and their representatives in Congress to assess whether the program's benefits are worth its very substantial cost," Barofsky wrote.
Among other recommendations repeated in the report, Barofsky called for the Treasury to consider making its voluntary mortgage principal reduction program mandatory, saying this would make it less likely for "underwater" homeowners to abandon their properties.
The Treasury has declined to adopt the recommendation, citing the prospect that mandatory principal reduction would cause mortgage servicing firms to opt out of the program and fairness issues in reducing principal for both responsible homeowners hit by value declines and homeowners who overleveraged their properties in refinancings.
U.S. Treasury officials defended the Home Affordable Modification Program, saying that it was still on track to reach its goal to keep 3 million to 4 million homeowners in their homes by the end of 2012 and was adapting to changing conditions by offering forbearance to unemployed people and extra funding for the hardest-hit markets.
Herbert Allison, Treasury assistant secretary for financial stability, said the Treasury often agrees with Barofsky's recommendations, "but once in a while, we differ on what type of policy will best carry out our mandate."
The report provoked swift criticism of Obama administration housing policies from U.S. Rep. Darrell Issa, a California Republican who has taken every opportunity to blast the Treasury's handling of financial bailout programs.
"The fact that the Obama administration is treating TARP like its own personal slush-fund is beyond egregious and a complete betrayal of what the American people were told would be then when their tax-dollars were used to bailout Wall Street," Issa said in a statement, adding that the housing efforts were "dumping good money after bad."
© 2010 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government's pledges to supply capital to Fannie Mae and Freddie Mac and to guarantee more mortgages to the support the housing market.
Increased guarantees for loans backed by the Federal Housing Administration, the Government National Mortgage Association and the Veterans administration increased the government's commitments by $512.4 billion alone in the year to June 30, according to the report.
"Indeed, the current outstanding balance of overall Federal support for the nation's financial system ... has actually increased more than 23% over the past year, from approximately $3.0 trillion to $3.7 trillion — the equivalent of a fully deployed TARP program — largely without congressional action, even as the banking crisis has, by most measures, abated from its most acute phases," the TARP inspector general, Neil Barofsky, wrote in the report.
The total includes Federal Reserve programs and a myriad of asset guarantees, including Federal Deposit Insurance Corp. protection for bank deposits.
The increased government commitments more than offset about a $300 billion decline in the U.S. Treasury's TARP commitments in the past year as programs have closed and banks have repaid taxpayer funds.
Barofsky also in the report ramped up his criticism of the Treasury's housing relief efforts, saying that its program to reduce monthly mortgage payments for struggling homeowners was showing "anemic" participation numbers and had failed to "put an appreciable dent in foreclosure filings."
He said Treasury had refused his repeated recommendations to announce more effective goals and benchmarks for its mortgage modification program, which could reach up to $50 billion in TARP funds.
"Treasury's refusal to provide meaningful goals for this important program is a fundamental failure of transparency and accountability that makes it far more difficult for the American people and their representatives in Congress to assess whether the program's benefits are worth its very substantial cost," Barofsky wrote.
Among other recommendations repeated in the report, Barofsky called for the Treasury to consider making its voluntary mortgage principal reduction program mandatory, saying this would make it less likely for "underwater" homeowners to abandon their properties.
The Treasury has declined to adopt the recommendation, citing the prospect that mandatory principal reduction would cause mortgage servicing firms to opt out of the program and fairness issues in reducing principal for both responsible homeowners hit by value declines and homeowners who overleveraged their properties in refinancings.
U.S. Treasury officials defended the Home Affordable Modification Program, saying that it was still on track to reach its goal to keep 3 million to 4 million homeowners in their homes by the end of 2012 and was adapting to changing conditions by offering forbearance to unemployed people and extra funding for the hardest-hit markets.
Herbert Allison, Treasury assistant secretary for financial stability, said the Treasury often agrees with Barofsky's recommendations, "but once in a while, we differ on what type of policy will best carry out our mandate."
The report provoked swift criticism of Obama administration housing policies from U.S. Rep. Darrell Issa, a California Republican who has taken every opportunity to blast the Treasury's handling of financial bailout programs.
"The fact that the Obama administration is treating TARP like its own personal slush-fund is beyond egregious and a complete betrayal of what the American people were told would be then when their tax-dollars were used to bailout Wall Street," Issa said in a statement, adding that the housing efforts were "dumping good money after bad."
© 2010 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
FIVE REAL ESTATE SCAMS YOU NEED TO KNOW ABOUT
Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz at: http://www.realtor.org/rmoquiz2.nsf/mortgagefraud?openform.
1. THE FORECLOSURE RESCUE SCHEME
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. LOAN DOCUMENTATION FRAUD
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. APPRAISAL FRAUD
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. ILLEGAL PROPERTY FLIPPING
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. SHORT SALES SCHEMES
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to http://www.stopfraud.gov/.
-------------------------
This article was written by Melissa Dittmann Tracey
http://www.realtor.com/
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz at: http://www.realtor.org/rmoquiz2.nsf/mortgagefraud?openform.
1. THE FORECLOSURE RESCUE SCHEME
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. LOAN DOCUMENTATION FRAUD
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. APPRAISAL FRAUD
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. ILLEGAL PROPERTY FLIPPING
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. SHORT SALES SCHEMES
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to http://www.stopfraud.gov/.
-------------------------
This article was written by Melissa Dittmann Tracey
http://www.realtor.com/
Tuesday, July 20, 2010
HOUSE FOR SALE ON FIVE ACRES
CAPE COD IN MOVE-IN CONDITION ON 5 ACRES IN GHENT
This exeptionally well maintained Cape Cod style home is located on 5.21 surveyed and groomed acres in the town of Ghent. It has 1,968 square feet of living space, 3 bedrooms, 1.75 baths, Oil Hot Water heating, 200 amp electric service, very large open field behind the house. It has a covered front porch and a rear deck, a large Equipment barn, woodshed, and a 2-car attached garage with a breezeway into the home. On the main level, there is a livingroom, family room with a woodstove, kitchen, dining room, laundry rooms and a 3/4 bath. Upstairs there are 3 bedrooms, 1 full bath and a storeroon. The poured concrete basement is completely dry and is used as a workshop by the owner.
See see pictures of this house, Click on the Link Below!
http://www.grayrider.com/forsale-ghent-capecod.htm
This exeptionally well maintained Cape Cod style home is located on 5.21 surveyed and groomed acres in the town of Ghent. It has 1,968 square feet of living space, 3 bedrooms, 1.75 baths, Oil Hot Water heating, 200 amp electric service, very large open field behind the house. It has a covered front porch and a rear deck, a large Equipment barn, woodshed, and a 2-car attached garage with a breezeway into the home. On the main level, there is a livingroom, family room with a woodstove, kitchen, dining room, laundry rooms and a 3/4 bath. Upstairs there are 3 bedrooms, 1 full bath and a storeroon. The poured concrete basement is completely dry and is used as a workshop by the owner.
See see pictures of this house, Click on the Link Below!
http://www.grayrider.com/forsale-ghent-capecod.htm
TEN REAL ESTATE RETIREMENT OPTIONS
It's hard to think about retiring to a warm climate when opening your 401(k) statement or checking your home's value on Zillow.com already makes you break out in a sweat. Last year 40% fewer homeowners 65 and older moved than in 2005, with their mobility falling more than any other age group's, according to Harvard's Joint Center for Housing Studies. (Of those 65-plus, 81% own their own homes.)
But now, with the real estate market showing signs of stabilizing and the economy showing tentative signs of recovery, it's a fine time to start assessing your retirement housing options--based on your current (likely reduced) net worth. Even with median existing home prices down 26% over the last five years and one in seven of the nation's homeowners “under water” on their mortgages--owing more than their homes are worth--most older folks still have equity in their homes. That makes a move possible.
But here's the rub: Since only weak home appreciation is likely in the foreseeable future, any move you make now needs to be suitable for the long term. Don't assume you can buy in a sunny place, decide after a few years it doesn't suit you and get your money back or even realize a profit when you sell the place. Now is not the time to be spending your remaining retirement savings on multiple Realtors' commissions.
So before you do anything, think about such issues as whether you want to continue to work part time, what you enjoy doing most and whether you'll have access to the supermarket, health care and other services if and when you decide it's unsafe to drive.
Talk to your spouse and your kids or your extended family or friends--whoever would jump in if your health turns for the worse, gradually or suddenly. See what resources are available to you where you live now and what's available in any target location. Here are 10 retirement living options to consider:
1. Cross State Lines To Save
The smartest retirement move for you might be across the country to an area with lower costs, low or no state income tax , or nearby family to help you out. After having a heart attack, Deborah Huff, 62, moved from California to Kentucky and found a much cheaper but nicer home near her brother. "I wasn't sure I could afford to retire," she says, adding that her financial planner, Graydon Coghlan in San Diego, showed her how, with the move, it worked. "When I'd see him, I'd say, 'I just don't want to be a bag lady," she jokes. A bonus: Kentucky excludes retirement income of $41,110 per person from its state income tax. (For how states woo retirees with tax breaks, click here.)
2. Move Across Town (or up here to Columbia County NY)
If you're well-established in your community, consider downsizing in your hometown, says Diane Winland, a financial planner with Financial Finesse in Manhattan Beach, Calif. For example, an older couple she lived next to was straining under carrying costs and moved to a house on a smaller lot in an older neighborhood, saving thousands a year in maintenance and property taxes.
3. Tap Into Your House
Stay in your home but reduce your equity in it through a reverse mortgage. A reverse mortgage lets you take money out of your house so you can stay put. But beware of fat fees. In some cases banks will let you fund the purchase of a new downsized home with a reverse mortgage.
4. Move Abroad
While a no-income tax state might be enticing, for some folks the cafes of Paris or the cheap living of Panama beckon. But moving abroad requires more legwork than moving to another state. For example, can you bring your dog? What are the country's residency requirements? Make sure you research the Internal Revenue Service tax rules for expats and buy health care coverage (Medicare doesn't cover Americans living abroad) before you leave. (For tips on how to investigate before you expatriate, click here.)
5. Become A Temporary Renter
The likelihood of little or no housing appreciation has an upside too: You can sell your home, invest your take (in something safe) and try out life in another place for a few years as a renter, without fear of the housing prices getting away from you. This is a particularly good strategy if you're making a lifestyle change--say moving from a Northeastern metropolis to the Sunbelt. You might take to the new climate and lower taxes, or find yourself missing your old haunts.
6. Become a Long-Term Renter
A widow who turned 80 brought her adult children with her to see her financial advisor, Nick Barnwell with Weiser Capital Management in New York City, because she feared she was running out of money. Her spending, including house expenses, ran $100,000 plus a year. The solution: selling her two-bedroom $1.2 million NYC apartment and renting a one-bedroom unit in the same building. "This gives her a cushion of at least 10 years of spending money, and she can still go to the opera with her friends," Barnwell says.
7. Move In With Your Kids (or Vice Versa)
The recession has put intergenerational living back into fashion. Combing two or more households into one saves on big expenses like property taxes and upkeep and has emotional rewards--grandma putting the grandkids to bed. (For tips on intergenerational living, click here.)
8. Be Part Of A Natural Retirement Community
Check out you own community's resources for the aging. Is there a community center? A van service? In New Canaan, Conn., a local group called "Staying Put" provides services to help seniors remain in their homes. Similar groups are springing up elsewhere, using member dues and grants from nonprofits and government to link seniors and services in "naturally occurring retirement communities." If you like where you live and your community doesn't have such an effort, consider launching one--it's a great project for a young retiree
9. Find An Active Adult Community
If golf courses, hiking trails, and yoga classes are enticing, and you like hanging out primarily with folks your own age, consider buying into (or renting at) an active adult-only community such as The Villages in central Florida or one of Pulte Group's 81 DelWebb communities in 21 states. These communities are made up primarily of owner-occupied single-family detached homes but include apartment and rental units. Their share among all 55-plus households increased from 2% in 2002 to 3% in 2007 and is expected to increase even further over the next decade, according to the MetLife Mature Market Institute. Remember, however, that these communities may be far from family--and don't guarantee access to assisted living or nursing care.
10. Buy Into A Continuing Care Retirement Community
In these communities, you start out living independently in an apartment or townhome. But should your health deteriorate, you have guaranteed access to assisted living or nursing home beds. These communities generally require payment of a big upfront fee that may not be refundable and have complicated contracts.
-------------------------------------
Article by Ashlea Ebeling - http://www.forbes.com/
But now, with the real estate market showing signs of stabilizing and the economy showing tentative signs of recovery, it's a fine time to start assessing your retirement housing options--based on your current (likely reduced) net worth. Even with median existing home prices down 26% over the last five years and one in seven of the nation's homeowners “under water” on their mortgages--owing more than their homes are worth--most older folks still have equity in their homes. That makes a move possible.
But here's the rub: Since only weak home appreciation is likely in the foreseeable future, any move you make now needs to be suitable for the long term. Don't assume you can buy in a sunny place, decide after a few years it doesn't suit you and get your money back or even realize a profit when you sell the place. Now is not the time to be spending your remaining retirement savings on multiple Realtors' commissions.
So before you do anything, think about such issues as whether you want to continue to work part time, what you enjoy doing most and whether you'll have access to the supermarket, health care and other services if and when you decide it's unsafe to drive.
Talk to your spouse and your kids or your extended family or friends--whoever would jump in if your health turns for the worse, gradually or suddenly. See what resources are available to you where you live now and what's available in any target location. Here are 10 retirement living options to consider:
1. Cross State Lines To Save
The smartest retirement move for you might be across the country to an area with lower costs, low or no state income tax , or nearby family to help you out. After having a heart attack, Deborah Huff, 62, moved from California to Kentucky and found a much cheaper but nicer home near her brother. "I wasn't sure I could afford to retire," she says, adding that her financial planner, Graydon Coghlan in San Diego, showed her how, with the move, it worked. "When I'd see him, I'd say, 'I just don't want to be a bag lady," she jokes. A bonus: Kentucky excludes retirement income of $41,110 per person from its state income tax. (For how states woo retirees with tax breaks, click here.)
2. Move Across Town (or up here to Columbia County NY)
If you're well-established in your community, consider downsizing in your hometown, says Diane Winland, a financial planner with Financial Finesse in Manhattan Beach, Calif. For example, an older couple she lived next to was straining under carrying costs and moved to a house on a smaller lot in an older neighborhood, saving thousands a year in maintenance and property taxes.
3. Tap Into Your House
Stay in your home but reduce your equity in it through a reverse mortgage. A reverse mortgage lets you take money out of your house so you can stay put. But beware of fat fees. In some cases banks will let you fund the purchase of a new downsized home with a reverse mortgage.
4. Move Abroad
While a no-income tax state might be enticing, for some folks the cafes of Paris or the cheap living of Panama beckon. But moving abroad requires more legwork than moving to another state. For example, can you bring your dog? What are the country's residency requirements? Make sure you research the Internal Revenue Service tax rules for expats and buy health care coverage (Medicare doesn't cover Americans living abroad) before you leave. (For tips on how to investigate before you expatriate, click here.)
5. Become A Temporary Renter
The likelihood of little or no housing appreciation has an upside too: You can sell your home, invest your take (in something safe) and try out life in another place for a few years as a renter, without fear of the housing prices getting away from you. This is a particularly good strategy if you're making a lifestyle change--say moving from a Northeastern metropolis to the Sunbelt. You might take to the new climate and lower taxes, or find yourself missing your old haunts.
6. Become a Long-Term Renter
A widow who turned 80 brought her adult children with her to see her financial advisor, Nick Barnwell with Weiser Capital Management in New York City, because she feared she was running out of money. Her spending, including house expenses, ran $100,000 plus a year. The solution: selling her two-bedroom $1.2 million NYC apartment and renting a one-bedroom unit in the same building. "This gives her a cushion of at least 10 years of spending money, and she can still go to the opera with her friends," Barnwell says.
7. Move In With Your Kids (or Vice Versa)
The recession has put intergenerational living back into fashion. Combing two or more households into one saves on big expenses like property taxes and upkeep and has emotional rewards--grandma putting the grandkids to bed. (For tips on intergenerational living, click here.)
8. Be Part Of A Natural Retirement Community
Check out you own community's resources for the aging. Is there a community center? A van service? In New Canaan, Conn., a local group called "Staying Put" provides services to help seniors remain in their homes. Similar groups are springing up elsewhere, using member dues and grants from nonprofits and government to link seniors and services in "naturally occurring retirement communities." If you like where you live and your community doesn't have such an effort, consider launching one--it's a great project for a young retiree
9. Find An Active Adult Community
If golf courses, hiking trails, and yoga classes are enticing, and you like hanging out primarily with folks your own age, consider buying into (or renting at) an active adult-only community such as The Villages in central Florida or one of Pulte Group's 81 DelWebb communities in 21 states. These communities are made up primarily of owner-occupied single-family detached homes but include apartment and rental units. Their share among all 55-plus households increased from 2% in 2002 to 3% in 2007 and is expected to increase even further over the next decade, according to the MetLife Mature Market Institute. Remember, however, that these communities may be far from family--and don't guarantee access to assisted living or nursing care.
10. Buy Into A Continuing Care Retirement Community
In these communities, you start out living independently in an apartment or townhome. But should your health deteriorate, you have guaranteed access to assisted living or nursing home beds. These communities generally require payment of a big upfront fee that may not be refundable and have complicated contracts.
-------------------------------------
Article by Ashlea Ebeling - http://www.forbes.com/
Monday, July 19, 2010
SURVEY FINDS SIDELINED HOMEBUYERS ARE PREPARING TO ENTER THE MARKET
Although both new and existing home sales were down in May, it’s not all bad news. According to a new survey by Relocation.com, more Americans are positioning themselves to purchase a home in the near future.
The survey found that some families are opting to rent while they research for deals to purchase a more desirable home in their area. There’s no surefire way to determine when these sidelined homebuyers will enter the market, but the survey results were encouraging.
Of the 60 percent of individuals moving into rentals, 24 percent were previous homeowners renting temporarily while they look for a new home to purchase. Underscoring this finding is that for many of these families, foreclosure was not the reason for moving. In fact, the number of consumers who moved due to foreclosure dropped by 70 percent compared to Relocation.com’s February 2010 survey.
“While the housing market continues to flux from month to month, we’re seeing strong, continued interest as consumers looking to move start their research with us,” said Sharon Ashser, chairman and founder of New York-based Relocation.com. “These findings suggest that more Americans may be poised to re-enter the housing market this year.”
While it seems that financial and economic issues still continue to exert an effect on U.S. moving behaviors, the survey found signs that the worst of the recession crisis may be over. In the February 2010 survey, 18 percent of respondents indicated that they moved to a new location with a lower cost of living and/or cheaper rent, but this percentage dropped to 7 percent in June. Furthermore, only 4 percent of the consumers in June moved due to a job loss, a drastic drop from the 13 percent who moved for that reason in February.
When it comes to homeownership, the survey found that 18 percent of movers tracked in the June survey were homeowners who moved and purchased a new home, up from 12 percent in February. And an additional 12 percent were former renters who moved to purchase a home. The June survey also found that 4 percent of movers were able to purchase a home for the first time due to the decline in home prices, and another 10 percent moved to a bigger, better home or a better neighborhood.
-----------------------------------
Article written by Brittany Dunn - DSNews.com
©2010 DS News. All Rights Reserved.
The survey found that some families are opting to rent while they research for deals to purchase a more desirable home in their area. There’s no surefire way to determine when these sidelined homebuyers will enter the market, but the survey results were encouraging.
Of the 60 percent of individuals moving into rentals, 24 percent were previous homeowners renting temporarily while they look for a new home to purchase. Underscoring this finding is that for many of these families, foreclosure was not the reason for moving. In fact, the number of consumers who moved due to foreclosure dropped by 70 percent compared to Relocation.com’s February 2010 survey.
“While the housing market continues to flux from month to month, we’re seeing strong, continued interest as consumers looking to move start their research with us,” said Sharon Ashser, chairman and founder of New York-based Relocation.com. “These findings suggest that more Americans may be poised to re-enter the housing market this year.”
While it seems that financial and economic issues still continue to exert an effect on U.S. moving behaviors, the survey found signs that the worst of the recession crisis may be over. In the February 2010 survey, 18 percent of respondents indicated that they moved to a new location with a lower cost of living and/or cheaper rent, but this percentage dropped to 7 percent in June. Furthermore, only 4 percent of the consumers in June moved due to a job loss, a drastic drop from the 13 percent who moved for that reason in February.
When it comes to homeownership, the survey found that 18 percent of movers tracked in the June survey were homeowners who moved and purchased a new home, up from 12 percent in February. And an additional 12 percent were former renters who moved to purchase a home. The June survey also found that 4 percent of movers were able to purchase a home for the first time due to the decline in home prices, and another 10 percent moved to a bigger, better home or a better neighborhood.
-----------------------------------
Article written by Brittany Dunn - DSNews.com
©2010 DS News. All Rights Reserved.
FORCLOSURES DIP 5% IN THE USA
NEW YORK (CNNMoney.com) -- The foreclosure plague seems to have reached its peak and started to fade, but the recovery is still fragile.
The number of foreclosure filings of all types -- including notices of delinquency, auction notices and repossessions -- fell during the first six months of 2010, according to RealtyTrac, the online marketer of foreclosed properties.
There were 1,654,634 properties with foreclosure filings, a 5% decline compared with the previous six months. That equates to 1 out of every 78 homes being at risk. Unfortunately, the pace of bank repossessions quickened, with nearly 270,000 homes lost to foreclosure during April, May and June, a 5% increase over the three winter months.
James Saccacio, CEO of RealtyTrac, called the report a "tale of two trends." He pointed out that the filings data showed improvement because fewer properties were entering the foreclosure process. Part of that is because lenders are now more committed to modifying defaulting mortgages or allowing homeowners to sell their homes for less than they owe.
At the same time, lenders have cleared many properties out of the foreclosure pipeline, finalizing repossession proceedings rather than allowing homes to sit in limbo.
However, there is still much inventory to move through the system and experts aren't sure how bad it will be.
"While the foreclosure problem is being managed on the surface," Saccacio said, "a massive number of distressed properties and underwater loans continue to sit just below the surface, threatening the fragile stability of the housing market."
HARDEST HIT STATES:
As they have for many months now, the "sand states" led the nation in foreclosures during the first half of the year. One in 17 Nevada households, or 64,429, received a filing. That is the highest rate of any state.
The number of California homes with filings came to more than 340,000, the highest total of any state.
Florida had more than 277,000 filings, or 1 for every 32 households; Arizona had more than 91,000, 1 in 30 homes.
Lenders repossessed 45,000 Calif. homes during the three months ended June 30, more than in any other state. Nevada, with a much smaller population, had nearly 11,000 repossessions, about twice the rate of the Golden State.
Article written by Les Christie, staff writer of http://www.newsgeni.us/
The number of foreclosure filings of all types -- including notices of delinquency, auction notices and repossessions -- fell during the first six months of 2010, according to RealtyTrac, the online marketer of foreclosed properties.
There were 1,654,634 properties with foreclosure filings, a 5% decline compared with the previous six months. That equates to 1 out of every 78 homes being at risk. Unfortunately, the pace of bank repossessions quickened, with nearly 270,000 homes lost to foreclosure during April, May and June, a 5% increase over the three winter months.
James Saccacio, CEO of RealtyTrac, called the report a "tale of two trends." He pointed out that the filings data showed improvement because fewer properties were entering the foreclosure process. Part of that is because lenders are now more committed to modifying defaulting mortgages or allowing homeowners to sell their homes for less than they owe.
At the same time, lenders have cleared many properties out of the foreclosure pipeline, finalizing repossession proceedings rather than allowing homes to sit in limbo.
However, there is still much inventory to move through the system and experts aren't sure how bad it will be.
"While the foreclosure problem is being managed on the surface," Saccacio said, "a massive number of distressed properties and underwater loans continue to sit just below the surface, threatening the fragile stability of the housing market."
HARDEST HIT STATES:
As they have for many months now, the "sand states" led the nation in foreclosures during the first half of the year. One in 17 Nevada households, or 64,429, received a filing. That is the highest rate of any state.
The number of California homes with filings came to more than 340,000, the highest total of any state.
Florida had more than 277,000 filings, or 1 for every 32 households; Arizona had more than 91,000, 1 in 30 homes.
Lenders repossessed 45,000 Calif. homes during the three months ended June 30, more than in any other state. Nevada, with a much smaller population, had nearly 11,000 repossessions, about twice the rate of the Golden State.
Article written by Les Christie, staff writer of http://www.newsgeni.us/
Friday, July 16, 2010
HOME BUYER TAX CREDIT DEADLINE EXTENDED TO SEPT 30TH
The home buyer tax credit now has an extended closing deadline, thanks to Congress. The new deadline is set for September 30, 2010. This new legislation, bill H.R. 5623, will allow for thousands of home buyers to take advantage of the $8,000 and $6,500 tax credits that saw their previous deadline pass on June 30th.
The National Association of Realtors (NAR) has been encouraging of its passage. “We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” said NAR president Vicki Cox Golder.
Who is eligible for this deadline extension? If you are a first time or "step up" homebuyer who had a ratified contract in place as of April 30, 2010, but was unable to close by the previous June 30th deadline, then you're in luck. You are considered a first time home buyer if you have not owned your own home in the last three years. The same income restrictions and rules apply for the extension as were in place for the previous June 30th deadline.
Congress has also helped property owners seeking extensions flood insurance policies. Senate passed H.R. 5569, the National Flood Insurance Program Extension Act of 2010, allowing currently stalled transactions to move forward.
According to the National Association of Realtors, "Any new policy applications or renewals that were signed and submitted during the lapsed period will be effective from the date of application. In the case of waiting periods, the waiting period will start from the date of application." Vicki Cox Golder said, “We know that thousands of property owners seeking flood insurance policies will now be able to close transactions."
For more information on whether or not you are eligible for this extension, please call me at 518-392-7062.
The National Association of Realtors (NAR) has been encouraging of its passage. “We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” said NAR president Vicki Cox Golder.
Who is eligible for this deadline extension? If you are a first time or "step up" homebuyer who had a ratified contract in place as of April 30, 2010, but was unable to close by the previous June 30th deadline, then you're in luck. You are considered a first time home buyer if you have not owned your own home in the last three years. The same income restrictions and rules apply for the extension as were in place for the previous June 30th deadline.
Congress has also helped property owners seeking extensions flood insurance policies. Senate passed H.R. 5569, the National Flood Insurance Program Extension Act of 2010, allowing currently stalled transactions to move forward.
According to the National Association of Realtors, "Any new policy applications or renewals that were signed and submitted during the lapsed period will be effective from the date of application. In the case of waiting periods, the waiting period will start from the date of application." Vicki Cox Golder said, “We know that thousands of property owners seeking flood insurance policies will now be able to close transactions."
For more information on whether or not you are eligible for this extension, please call me at 518-392-7062.
FIVE TIPS TO PREPARE YOUR HOME FOR SALE
Working to get your home ship-shape for showings will increase its value and shorten your sales time.
Many buyers today want move-in-ready homes and will quickly eliminate an otherwise great home by focusing on a few visible flaws. Unless your home shines, you may endure showing after showing and open house after open house—and end up with a lower sales price. Before the first prospect walks through your door, consider some smart options for casting your home in its best light.
1. Have a home inspection
Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.
2. Get replacement estimates
If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.
3. Make minor repairs
Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.
4. Clear the clutter
Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.
5. Do a thorough cleaning
A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.
If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.
Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.
-----------------------------
Article was written by G.M. Filisko. She is an attorney and award-winning writer who has found happiness in a Chicago brownstone with the best curb appeal on the block. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
Many buyers today want move-in-ready homes and will quickly eliminate an otherwise great home by focusing on a few visible flaws. Unless your home shines, you may endure showing after showing and open house after open house—and end up with a lower sales price. Before the first prospect walks through your door, consider some smart options for casting your home in its best light.
1. Have a home inspection
Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.
2. Get replacement estimates
If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.
3. Make minor repairs
Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.
4. Clear the clutter
Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.
5. Do a thorough cleaning
A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.
If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.
Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.
-----------------------------
Article was written by G.M. Filisko. She is an attorney and award-winning writer who has found happiness in a Chicago brownstone with the best curb appeal on the block. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
SAVE MONEY BY PLANTING SOME FRUIT TREES
Money really can grow on trees! Cut your grocery bill while improving your landscape by planting and growing a fruit tree.
Investing in a fruit tree is a win-win-win-win proposition. You’ll save money on your grocery bill; you’ll improve the health of your family by assuring an ample supply of healthy produce (which you can grow organically if you want); you’ll enhance your landscape with a pretty spring-flowering tree; and you’ll have the satisfaction of growing your own food. As a bonus, the whole family will learn a delicious lesson about nature and gardening.
“With fruit trees, the return you get on your input is quite a bit,” says Ron Perry, a Michigan State University professor of horticulture who specializes in fruit trees.
Your investment is minimal; figure $20 to $30 for a young tree and perhaps an hour to plant it. From that point, you’ll also need patience. Most fruit trees take three years to start bearing, and up to five years to bear fully.
There are basically three types of trees. Full-sized fruit trees grow to be 30 feet tall and produce an overwhelming amount of fruit at maturity. For home gardens, semi-dwarf and dwarf trees are a better choice and are easier to harvest. Plan on harvesting in late summer through fall.
Semi-dwarf trees grow 12 to 15 feet tall and will produce hundreds of fruits. Dwarf trees grow 8 to 10 feet tall and produce perhaps a bushel or so of fruit, depending on the type and year.
How much will you save?
How much money you’ll save by planting a fruit tree varies, depending on what you plant, the size of the tree, and your food buying and eating habits. Note that fruit trees tend to produce more heavily every other year.
On average, a single semi-dwarf apple tree may produce 40 or more pounds of fruit each year. With prices of apples ranging from 60 cents to $3.50 per pound, your tree might easily produce $80 worth of fruit. That reduces the annual amount a family of four spends on produce by 5% to 10%.
Plan on refrigerating some produce to keep it weeks longer. You’ll see even more savings by freezing, canning, making preserves, or drying fruit (a dehydrator costs about $60). This can shave another few dollars a week off your grocery bill and provide you with plenty of nutritious food to eat all year long.
Picking the right tree for your region
Choose fruit trees that are easy to grow in your region and which you and your family will be happy to eat.
Apples, pears, cherries and plums are among the best choices for home gardens, says Perry, because as long as you choose disease-resistant types, they require little spraying or fuss that commercial growers lavish on their trees to assure the biggest, most perfect, store ready fruits.
You can find a disease-resistant variety of fruit tree that will do well in your area by contacting your government-funded local cooperative extension service. Or, find out even faster by Googling the following four words together: “Recommended,” the type of fruit (such as “apple”), “trees,” and the name of your state, such as “Illinois.”
Some fruit trees need a second tree for cross-pollination by bees in order to produce fruit. Check the plant label or catalog description to be sure.
Here are some tips for growing the best fruit trees for home gardens:
Apples: Most varieties need a second tree for cross-pollination. Disease-resistant varieties are Freedom and Liberty. Increase savings by making apple butter, applesauce, and drying. Apple trees do well in Zones 3 through 9.
Pears: These often need a second tree for cross-pollination. Delicious, Harrow Delight, and Moonglow are particularly resistant to disease. Increase savings by canning and making pear butter. Pear trees do well in Zones 4 through 9.
Cherries: Sour cherries do not need a cross-pollinator tree nearby. They are excellent for pies and baking, and all sour cherry trees are highly disease- and pest-resistant. Sour cherries do well in Zones 4 through 8.
Most sweet cherries need a cross-pollinating tree. They’re excellent for eating fresh. Freeze extra cherries for even more savings. They do well in Zones 5 through 8.
Plums: Japanese and American plums always need a cross-pollinator; European types usually do. European types, such as Damson, are the most disease- and pest-resistant. Make plum jam or dry plums for even more savings. Plum trees do well in Zones 4 through 9.
Peaches: Most peaches do not need a cross-pollinator. You need to be diligent about spraying if you want large, blemish-free fruits. Can peaches, make jam, or freeze peaches for more savings. Peach trees do well in Zones 6 through 9.
Growing fruit trees
The main requirement for a fruit tree is full sun—at least 8 hours of direct, unfiltered light a day.
Space is also important. Allow as much space between trees and other plantings as the tree will be at mature height. Space full-size fruit trees 30 feet apart; plan 15 feet between semi-dwarf trees and 10 feet between dwarf trees.
Plant fruit tree saplings in spring. Planting is easy—simply dig a hole about 12 inches deeper and wider than the root ball of the tree. Work in a shovelful or two of compost, then set the tree in the hole and backfill. Keep well watered for the first few weeks.
Saplings come from the nursery with their roots in containers. Plant the tree so that the trunk is at the same depth it was in the container. If the tree is bare-root, that is, sold in a bag with its roots exposed, plant it so the knobby bud union that joins the trunk with the roots is 1 to 2 inches above soil level.
Prune your fruit trees as directed by the planting instructions that come with the tree. Each spring, minimize disease problems by spraying with an organic horticultural oil (a $10 bottle will last you a few years) diluted in a $25 pump sprayer.
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This article was written by Veronica Lorson Fowler - HouseLogic
Veronica Lorson Fowler grew up on a farm and has gardened since she was a child. A garden writer for more than 20 years, she has written and edited numerous garden books, and has written hundreds of garden articles for web sites and national magazines. She tends her own highly varied garden, which includes several fruit trees, in Ames, Iowa.
Investing in a fruit tree is a win-win-win-win proposition. You’ll save money on your grocery bill; you’ll improve the health of your family by assuring an ample supply of healthy produce (which you can grow organically if you want); you’ll enhance your landscape with a pretty spring-flowering tree; and you’ll have the satisfaction of growing your own food. As a bonus, the whole family will learn a delicious lesson about nature and gardening.
“With fruit trees, the return you get on your input is quite a bit,” says Ron Perry, a Michigan State University professor of horticulture who specializes in fruit trees.
Your investment is minimal; figure $20 to $30 for a young tree and perhaps an hour to plant it. From that point, you’ll also need patience. Most fruit trees take three years to start bearing, and up to five years to bear fully.
There are basically three types of trees. Full-sized fruit trees grow to be 30 feet tall and produce an overwhelming amount of fruit at maturity. For home gardens, semi-dwarf and dwarf trees are a better choice and are easier to harvest. Plan on harvesting in late summer through fall.
Semi-dwarf trees grow 12 to 15 feet tall and will produce hundreds of fruits. Dwarf trees grow 8 to 10 feet tall and produce perhaps a bushel or so of fruit, depending on the type and year.
How much will you save?
How much money you’ll save by planting a fruit tree varies, depending on what you plant, the size of the tree, and your food buying and eating habits. Note that fruit trees tend to produce more heavily every other year.
On average, a single semi-dwarf apple tree may produce 40 or more pounds of fruit each year. With prices of apples ranging from 60 cents to $3.50 per pound, your tree might easily produce $80 worth of fruit. That reduces the annual amount a family of four spends on produce by 5% to 10%.
Plan on refrigerating some produce to keep it weeks longer. You’ll see even more savings by freezing, canning, making preserves, or drying fruit (a dehydrator costs about $60). This can shave another few dollars a week off your grocery bill and provide you with plenty of nutritious food to eat all year long.
Picking the right tree for your region
Choose fruit trees that are easy to grow in your region and which you and your family will be happy to eat.
Apples, pears, cherries and plums are among the best choices for home gardens, says Perry, because as long as you choose disease-resistant types, they require little spraying or fuss that commercial growers lavish on their trees to assure the biggest, most perfect, store ready fruits.
You can find a disease-resistant variety of fruit tree that will do well in your area by contacting your government-funded local cooperative extension service. Or, find out even faster by Googling the following four words together: “Recommended,” the type of fruit (such as “apple”), “trees,” and the name of your state, such as “Illinois.”
Some fruit trees need a second tree for cross-pollination by bees in order to produce fruit. Check the plant label or catalog description to be sure.
Here are some tips for growing the best fruit trees for home gardens:
Apples: Most varieties need a second tree for cross-pollination. Disease-resistant varieties are Freedom and Liberty. Increase savings by making apple butter, applesauce, and drying. Apple trees do well in Zones 3 through 9.
Pears: These often need a second tree for cross-pollination. Delicious, Harrow Delight, and Moonglow are particularly resistant to disease. Increase savings by canning and making pear butter. Pear trees do well in Zones 4 through 9.
Cherries: Sour cherries do not need a cross-pollinator tree nearby. They are excellent for pies and baking, and all sour cherry trees are highly disease- and pest-resistant. Sour cherries do well in Zones 4 through 8.
Most sweet cherries need a cross-pollinating tree. They’re excellent for eating fresh. Freeze extra cherries for even more savings. They do well in Zones 5 through 8.
Plums: Japanese and American plums always need a cross-pollinator; European types usually do. European types, such as Damson, are the most disease- and pest-resistant. Make plum jam or dry plums for even more savings. Plum trees do well in Zones 4 through 9.
Peaches: Most peaches do not need a cross-pollinator. You need to be diligent about spraying if you want large, blemish-free fruits. Can peaches, make jam, or freeze peaches for more savings. Peach trees do well in Zones 6 through 9.
Growing fruit trees
The main requirement for a fruit tree is full sun—at least 8 hours of direct, unfiltered light a day.
Space is also important. Allow as much space between trees and other plantings as the tree will be at mature height. Space full-size fruit trees 30 feet apart; plan 15 feet between semi-dwarf trees and 10 feet between dwarf trees.
Plant fruit tree saplings in spring. Planting is easy—simply dig a hole about 12 inches deeper and wider than the root ball of the tree. Work in a shovelful or two of compost, then set the tree in the hole and backfill. Keep well watered for the first few weeks.
Saplings come from the nursery with their roots in containers. Plant the tree so that the trunk is at the same depth it was in the container. If the tree is bare-root, that is, sold in a bag with its roots exposed, plant it so the knobby bud union that joins the trunk with the roots is 1 to 2 inches above soil level.
Prune your fruit trees as directed by the planting instructions that come with the tree. Each spring, minimize disease problems by spraying with an organic horticultural oil (a $10 bottle will last you a few years) diluted in a $25 pump sprayer.
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This article was written by Veronica Lorson Fowler - HouseLogic
Veronica Lorson Fowler grew up on a farm and has gardened since she was a child. A garden writer for more than 20 years, she has written and edited numerous garden books, and has written hundreds of garden articles for web sites and national magazines. She tends her own highly varied garden, which includes several fruit trees, in Ames, Iowa.
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