Real Estate

Sell Your Home By Showing Off Its Eco-Friendly Features

Friday, 12 March 2010 12:31 Phoebe Chongchua

In tight real estate markets one sure thing is that sellers have to highlight the finest qualities of their homes. Yet, sometimes the very benefits buyers might be interested in are overlooked.

Sometimes sellers forget to mention important upgrades and other times the listing services used make it difficult for buyers to search for green properties. While statistics show that buyers won't necessarily chose an eco-friendly home over a standard one simply because it's green, they can be influenced to purchase the former if the home will save them money. There are a few areas of a home that can really help save money, but the sources of the savings are hidden in the walls and roof.

"Insulation is relatively inexpensive for the return on investment. You will save the most money by doing a lot of insulation in your house," says Steven Mark Design Consultant at Marrokal Design & Remodeling.

The San Diego-based remodeling company uses green materials like recycled blue jeans that are turned into insulation as well as special roofing to help lower the energy costs by allowing heating and air conditioning systems to work less to keep the home comfortable.

"On our roof sheathing we're using a special plywood that has a little layer of metal in it that reflects the UV rays before they go into your attic," says Mark. He says by using this special radiant barrier plywood the attic will be considerably cooler. "The attic is going to be 20 or 30 degrees cooler in the summertime which then means the insulation and air conditioner and everything else you need to get your living space to a comfortable temperature is now reduced," says Mark.

Of course, buyers should be told about all those energy-saving appliances that you might have installed over the years. For instance, say there are two decades-old homes on the market, but the first houses old appliances and the second features new energy-saving appliances. The upgrades in the second home are a distinct advantage that should be made very clear to buyers. While this seems obvious, sometimes sellers neglect to mention all the perks.

Remember, the things that aren't always visible can save a surprising amount. Tankless water heaters, for example, are becoming more in demand. That's probably because you can have as much as 30 percent savings of a normal utility bill using a tankless water heater according to Dennis Hargraves of El Cajon Heating & Plumbing Supply. Additionally, consumers can get big rebates.

"Tankless water heaters … they can get up to 60 percent of their installation and cost of the heater it could be up to $1,500 in rebates or tax credits," says Hargraves.

Special water-saving shower fixtures and low-flush toilets can also be enticing to buyers. If you haven't already installed them, consider replacing an old toilet with a more efficient one. Also, don't worry about the low-flush not being effective, Hargraves says the functionality has greatly improved; no need for double flushing. Plus, there's incentive to install them.

"There are vouchers available so a customer can receive up to $50 to $100 per toilet by going to the 1.28 flushes versus the others," says Hargraves.

It's a good idea to keep a three-ring binder to help you remember all the upgrades and eco-friendly additions when it comes time to sell your home. Be sure to include the sales receipts, product warranties, operating instructions, and any other pertinent notes into the binder. Don't forget to review the material in your binder so that you're prepared to highlight your green improvements when you meet with your real estate agent.

To learn more watch this video on green remodeling, click here.

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Last Updated ( Thursday, 18 March 2010 23:56 )

Fannie Mae Pushes Its Housing Inventory Plus Incentives

Friday, 05 March 2010 13:28 Phoebe Chongchua

Fannie Mae wants to sell its housing inventory that it acquired through foreclosures. The properties are listed for sale on HomePath.com. To do so, it's offering buyers incentives for those properties.

The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com

So what's the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.

There are more incentives. The government's current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there's a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:

$8,000 tax credit for first-time homebuyers
$6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence
Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.

What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. "Fannie Mae sells each property "as is," which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement."

Home inspections. Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.

No contingencies. If your home is on the market and you're shopping for a new one but need to close on your primary residence, Fannie Mae isn't the way to go. "Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis."

Get prequalified. This is really important for a lot of reasons regardless of whether you're buying a home owned by Fannie Mae. There are more restrictions these days when it comes to getting home loans. So, knowing that you're prequalified to purchase a home at a specific price will make shopping for the home that fits your budget easier. But Fannie Mae cautions, "A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted."

Making an offer. Just as with most real estate transactions, making an offer on a home requires a lot of research. Your real estate agent can get you vital information and when you're ready, the offer is submitted via your agent.

"Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property."

Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting.

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Last Updated ( Friday, 05 March 2010 13:31 )

Most And Least Affordable Housing Markets?

Friday, 26 February 2010 11:33 Phoebe Chongchua

More than 70 percent of U.S. homes are affordable, with Indianapolis being the most affordable major metro housing market in the country for the last four years, according to a recent joint report by the National Association of Home Builders and Wells Fargo.

"The HOI [Housing Opportunity Index] showed that 70.8 percent of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter of 2009, according to a press statement from the National Association of Home Builders."

The record year of housing affordability is attributed to sliding housing prices and low mortgage rates. The report ranked the top five most and least affordable cities. The most affordable major metro housing markets are: Detroit-Livonia-Dearborn, Mich.; Dayton, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; and Akron, Ohio.

The report indicates that other smaller metro housing markets were even more affordable than these cities. For instance, "in Kokomo, 98 percent of the homes sold during the fourth quarter of 2009 were affordable to median-income earners," according to the report. Also ranking high on the list were: Monroe, Mich.; Flint, Mich.; Lima, Ohio; and Bay City, Mich.

The least affordable major metro housing markets include: San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Redwood City, Calif. Topping this list, once again in the fourth quarter of 2009, is New York-White Plains-Wayne, N.Y.-N.J.

Of the smaller metro housing markets, San Luis Obispo-Paso Robles, Calif. ranked as the least affordable area in the country during the fourth quarter. Here are the other smaller metro markets that ranked as least affordable: Santa Cruz-Watsonville, Calif.; Ocean City, N.J.; Napa, Calif.; and Santa Barbara-Santa Maria-Goleta, Calif.

Depending on where you want and can live, now may be the opportune time to enter the housing market. The Affordable Housing Clearinghouse is a network of lenders, community groups and public agencies that is dedicated to the creation of quality affordable housing. The executive director talked with me about the loan changes and attitudes of borrowers as they enter the housing market.

"I think [buyers] are now more worried about the [loan] programs that they're going to get into. I don't think that people are as readily willing to sign any type of contracts," says, Brenda J. Rodriguez the executive director of the network. Rodriguez also says that potential buyers must look carefully at their outstanding debt because it has a greater impact on their ability to purchase a home today.

"The debt-to-income ratio is becoming a little more stringent. Before, borrowers could probably get away with 55 percent debt-to-income ratio. Now, we've seen borrowers going into programs and they have to qualify based on 36 percent [debt-to-income ratio]," says Rodriguez.

She offers some familiar but worth-repeating advice, "Don't sign any contracts unless you really understand what it is that you're reading and you understand the terms of your agreement."

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Last Updated ( Saturday, 27 February 2010 13:54 )

Adding a Room Addition for Baby

Sunday, 21 February 2010 01:47 Phoebe Chongchua

Need Space for Baby? Making room for a baby doesn't have to be a headache. If you're not in the market to buy, remodeling may be the optimal move to create the perfect space for baby. In this video, see how the Drohans turned their charming home into the perfect fit for their son. They added a baby's room complete with a turret and made extra living space by expanding their outdoor living.

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For more information about home remodels in San Diego, Visit Marrokal Design & Remodeling.

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Last Updated ( Sunday, 21 February 2010 02:40 )

Changes that Affect Real Estate

Friday, 05 February 2010 14:48 Phoebe Chongchua

Four Demographic Factors Affect Real Estate The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market.

The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.

Four other demographic trends are likely to have an impact as well. Aging baby boomers, those 55 to 64 years old, will keep working, and, some may stay put in their current suburban homes until the values recover. And, just as I wrote about last week, those in this group who do move will look for comfortable, easy homes (first-floor master bedroom), but the report indicates they’ll look for mixed-age living environments that cater to active lifestyles.

The second major demographic trend could impact the second-home market. Those between the ages of 46 to 54 years old, according to the report, are in their prime earning years; however, they lack home equity and may not be able to afford second homes (unlike the older baby boomers).

There are approximately 68-million people that make up Generation Y. This group is even larger than the baby boomers. But the report indicates this group is less interested in homeownership. The author of the report, John K. McIlwain, wrote, “They will be renters by necessity or choice for years ahead.” Not surprisingly, this tech-savvy group places high value on communities—real and virtual—where information and ideas can be shared.

This generation likes walkable, close-in communities. They’re not seeking to escape to the outer edges of town, unless they can’t afford anything nearby. Another big draw—“net zero” homes—green and powered exclusively by alternative energy.

The fourth major demographic trend involves immigrants. This group is often attracted to multi-generational housing in areas that have a strong sense of community. So, larger homes are preferred, if affordable.

Overall, the lasting stability of the U.S. housing market, according to McIlwain, will depend most on the structure and revitalization of the private home mortgage finance system.

"Re-establishing a robust private mortgage market will require both strong market fundamentals and a reformed mortgage securitization structure that eliminates past abuses," McIlwain said. Bye-bye suburbia, study says. Well, not completely. But the study does indicate that several factors are escalating the popularity of urbanization: two-person household growth (including those households without children), fewer baby boomers moving to the suburbs, Gen Y opting/forced to rent rather than own, and public policies that encourage compact development.

However, the author of the study says that urban infill development can’t accommodate all the housing demand from the demographic groups. McIlwain cautions that suburban development "must adapt or it will be obsolete.” A new era is blossoming, “The suburban century is over. This is the urban century."

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Last Updated ( Friday, 05 February 2010 15:02 )

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