Nashville Climbs to the Top of America’s Hottest Cities
Expansion Management, a monthly business magazine for executives of companies actively looking for a place to expand or relocate their facilities within the next one to three years, has released its 7th annual "America's 50 Hottest Cities" ranking, to be published in its upcoming January 2005 issue.
Topping this year's list is the Nashville metro area, followed by Atlanta, Kansas City, Charlotte and Indianapolis. Rounding out the Top 10 are Phoenix, Albuquerque, Oklahoma City, Dallas-Fort Worth and Jacksonville.
Last year, Atlanta was ranked No. 1 and Nashville was ranked No. 2.
Texas has five metros on the list, while South Carolina had four cities. Five states — Alabama, Florida, New York, Virginia and Tennessee — each had three cities.
“Unlike the other rankings we do each year, which are based upon hard economic and demographic data, the Hot Cities poll attempts to measure the perceptions of professional site location consultants, whose business it is to help companies select the best locations for future facility expansions,” said Bill King, chief editor of Expansion Management.
In order to find out which are today's hottest cities for business expansion, Expansion Management surveyed more than 80 of the industry's most prominent site location consultants in order to find out which cities their clients find most attractive when it comes to actually selecting an expansion or relocation site — and why these cities are more appealing than the others.
The consultants, whose identities remain confidential, were asked to list their top city choices for relocating and expanding manufacturing companies, taking into consideration such factors as the business climate, work force quality, operating costs, incentive programs, and the ease of working with local political and economic development officials.
"Some cities are well-prepared to attract and retain businesses," said Ken Krizner, managing editor of Expansion Management. "They have logistical advantages, a high quality of life, available work force, and a favorable tax and political climate. These 50 Hottest Cities have a built-in advantage when companies look to site a new manufacturing or distribution facility, or headquarters operation."
Expansion Management is mailed to more than 45,000 CEOs, vice presidents, directors and other officers of companies that have indicated they are considering expanding into new geographic areas.
Expansion Management is a monthly magazine published by Penton Media (www.penton.com), a diversified business-to-business media company that provides high-quality content and integrated marketing solutions to several industries, including: economic development/government/compliance; enterprise IT/business technology; aviation; design/engineering; electronics; food/retail; hospitality; manufacturing; mechanical systems/construction; health/nutrition and natural and organic products; and supply chain. Founded in 1892, Penton produces market-focused magazines, trade shows, conferences and online media, and provides a broad range of custom media and direct marketing solutions for business-to-business customers worldwide.
America’s 50 Hottest Cities (2005):
1. Nashville, Tenn.
2. Atlanta, Ga.
3. Kansas City, Mo.-Kan.
4. Charlotte-Gastonia-Rock Hill, N.C.-S.C. (tie)
Indianapolis, Ind. (tie)
6. Phoenix-Mesa, Ariz.
7. Albuquerque, N.M.
8. Oklahoma City, Okla.
9. Dallas-Fort Worth, Texas
10. Jacksonville, Fla.
11. San Antonio, Texas
12. Seattle-Bellevue-Everett, Wash.
13. Richmond-Petersburg, Va.
14. Knoxville, Tenn.
15. Birmingham, Ala.
16. Memphis, Tenn.-Ark.-Miss.
17. Raleigh-Durham-Chapel Hill, N.C.
18. Colorado Springs, Colo.
19. Tulsa, Okla.
20. Norfolk-Virginia Beach-Newport News, Va.-N.C. 21. Columbia, S.C.
22. Tucson, Ariz.
23. Pittsburgh, Pa.
24. Reno, Nev.
25. Greenville-Spartanburg-Anderson, S.C.
26. Des Moines, Iowa (tie)
Salt Lake City-Ogden, Utah (tie)
28. Hattiesburg, Miss.
29. Chicago, Ill. (tie)
Roanoke, Va. (tie)
31. Huntsville, Ala.
32. Longview-Marshall, Texas
33. Cincinnati, Ohio-Ky.-Ind.
34. Houston, Texas
35. Cleveland-Lorain-Elyria, Ohio
36. Augusta-Aiken, Ga.-S.C.
37. Richland-Kennewick-Pasco, Wash.
38. Montgomery, Ala.
39. Tampa-St. Petersburg-Clearwater, Fla.
40. Baltimore, Md.
41. Charleston-North Charleston, S.C.
42. Syracuse, N.Y.
43. Austin-San Marcos, Texas
44. Buffalo-Niagara Falls, N.Y. (tie)
Sumter, S.C. (tie)
46. Omaha, Neb.-Iowa
47. Lexington, Ky.
48. Little Rock-North Little Rock, Ark.
49. Miami-Dade, Fla.
50. Rochester, N.Y.
Saturday, September 13, 2008
Saturday, August 30, 2008
NEW LISTING IN THE HEART OF GREEN HILLS!
GIVE US A CALL TODAY TO SEE THIS BEAUTIFUL CONDO IN THE HEART OF GREEN HILLS! WALKING DISTANCE TO THE NEW HILL CENTER AND OTHER SHOPPING, FOOD AND FUN! THIS CONDO FEATURES FABULOUS UPGRADES INCLUDING GRANITE, HARDWOODS AND A PRIVATE PATIO.
Thursday, July 17, 2008
Thursday, June 26, 2008
First Offer
Evaluating the First Offer
Your dining room table is the scene of high drama. Your home has been listed for sale for six weeks, and finally, the first offer has come in. You are meeting with the agents, and are very excited until they mention the price--it is a lot less than you expected.
Before you feel offended, however, remember that the first offer is often just the beginning of a negotiating process. Your agent can help you weigh the good and bad points, evaluating the price in relationship to the terms or conditions of the sale. Sometimes an offer with a low price can look quite attractive once you understand all of the terms.
If you are willing to make some compromises, the buyers may accept a counter offer that will give you more money. A lower price from highly qualified buyers may be better than one from people who may have difficulties with financing. Keep in mind that your first negotiated price is often your best price!
Your dining room table is the scene of high drama. Your home has been listed for sale for six weeks, and finally, the first offer has come in. You are meeting with the agents, and are very excited until they mention the price--it is a lot less than you expected.
Before you feel offended, however, remember that the first offer is often just the beginning of a negotiating process. Your agent can help you weigh the good and bad points, evaluating the price in relationship to the terms or conditions of the sale. Sometimes an offer with a low price can look quite attractive once you understand all of the terms.
If you are willing to make some compromises, the buyers may accept a counter offer that will give you more money. A lower price from highly qualified buyers may be better than one from people who may have difficulties with financing. Keep in mind that your first negotiated price is often your best price!
Thursday, June 5, 2008
Location, Location, Location
The Benefits of a Good Location
One primary and irreplaceable feature that influences a home's appeal is its location. Desirable homes are often situated in beautiful geographical settings, with convenient access to jobs, shops and transportation. In preferred locations, homes hold their value over time, even as real estate markets in other, less popular vicinities show evidence of abating.
Some of the most valuable and exquisite homes in America are located in areas that are associated with breathtaking views, fresh air, and enjoyable leisure activities. In such locations, property values tend to remain at a premium because of the fact that there is only a limited amount of precious land, and there is easy access to the pleasures and necessities of life. Existing homes that are well maintained and situated in exceptional natural surroundings often sell very quickly, because people eager to move into the area keep an eye on the listings. There is always competition for homes where the local supply does not accommodate the public demand.
Give us a call today if we can help you find that PERFECT location.
One primary and irreplaceable feature that influences a home's appeal is its location. Desirable homes are often situated in beautiful geographical settings, with convenient access to jobs, shops and transportation. In preferred locations, homes hold their value over time, even as real estate markets in other, less popular vicinities show evidence of abating.
Some of the most valuable and exquisite homes in America are located in areas that are associated with breathtaking views, fresh air, and enjoyable leisure activities. In such locations, property values tend to remain at a premium because of the fact that there is only a limited amount of precious land, and there is easy access to the pleasures and necessities of life. Existing homes that are well maintained and situated in exceptional natural surroundings often sell very quickly, because people eager to move into the area keep an eye on the listings. There is always competition for homes where the local supply does not accommodate the public demand.
Give us a call today if we can help you find that PERFECT location.
The Homes Around Nashville Team
Realty Executives Fine Homes
615-376-4500
615-566-3712
Tuesday, June 3, 2008
Curb appeal
Curb Appeal Takes Starring Role in Competitive Market Updating Windows and Doors is a Must in a House Exterior Makeover
(ARA) – Real estate may be about location, location, location, but it's also about looks. Curb appeal is taking on a bigger role in today's housing market. With the number of available homes for sale growing each day, buyers can afford to be choosy and consider only houses that show well from the street. That means sellers now have just a few seconds to make a first impression, capture interest and draw buyers inside.
Confirming just how important curb appeal is to hooking new owners, JELD-WEN, a leading window and door manufacturer, discovered in a recent survey of real estate agents that 82 percent have had potential buyers decline to look at the interior of a home based on the exterior appearance.
“In today's competitive market, buyers want upgrades, like windows and doors, that create visual appeal,” says Elizabeth Souders, product marketing manager for JELD-WEN. “A home must present itself favorably in a quick snapshot. The real estate agent survey shows that without strong curb appeal, buyers might not even consider looking inside the home.”
Upgrading curb appeal is proving to be a good investment when selling a home. According to the National Association of Realtors (NAR), window and door projects mostly pay for themselves at closing. Typically, homeowners can expect between an 81 to 88 percent return on window upgrades, the NAR said.
Top Five Curb Appeal Tips
In addition to obvious touches like a new coat of paint or fixing cracks in the pavement, updating windows and doors is an ideal first step in boosting a home's image. Whether owners are listing a home for sale, or simply want to increase their home's stature in the neighborhood, JELD-WEN suggests these five tips to increasing curb appeal:
Stay true to style: Upgrades should fit in with a home's architectural style. For example, JELD-WEN says contemporary homes call for windows and doors with clean lines and simple profiles, while traditional homes such as Craftsmans or Colonials are better matched with windows and doors featuring appropriate divided lite designs.
Add details: Custom features are a great way to achieve one-of-a-kind looks that stand out. Adding a doorknocker, speakeasy, decorative glass or metal accents to an upgraded front door can give an Old World home a heightened level of charm to catch a buyer's eye. New house numbers and porch lights also provide a fresh look for entry areas.
Remember the garage: The most prominent exterior feature in many homes is the garage door, so this upgrade goes a long way toward elevating curb appeal. JELD-WEN is seeing many homeowners ordering garage doors complete with window inserts, metal accents and hardware to match the main entry door for a coordinated appearance.
Dress the yard: Make sure the house is the first thing potential buyers see, not overgrown hedges or dead grass. Hire a gardener to spruce up the landscaping and add colorful touches like seasonal flowers, decorative rocks or bubbly water fountains. Shaping bushes and curving lawn borders can shake up a tired front yard.
Coordinate color: Color, when done right, sells. Doors and windows give homeowners ideal opportunities to infuse color into their curb appeal without having to paint.
(ARA) – Real estate may be about location, location, location, but it's also about looks. Curb appeal is taking on a bigger role in today's housing market. With the number of available homes for sale growing each day, buyers can afford to be choosy and consider only houses that show well from the street. That means sellers now have just a few seconds to make a first impression, capture interest and draw buyers inside.
Confirming just how important curb appeal is to hooking new owners, JELD-WEN, a leading window and door manufacturer, discovered in a recent survey of real estate agents that 82 percent have had potential buyers decline to look at the interior of a home based on the exterior appearance.
“In today's competitive market, buyers want upgrades, like windows and doors, that create visual appeal,” says Elizabeth Souders, product marketing manager for JELD-WEN. “A home must present itself favorably in a quick snapshot. The real estate agent survey shows that without strong curb appeal, buyers might not even consider looking inside the home.”
Upgrading curb appeal is proving to be a good investment when selling a home. According to the National Association of Realtors (NAR), window and door projects mostly pay for themselves at closing. Typically, homeowners can expect between an 81 to 88 percent return on window upgrades, the NAR said.
Top Five Curb Appeal Tips
In addition to obvious touches like a new coat of paint or fixing cracks in the pavement, updating windows and doors is an ideal first step in boosting a home's image. Whether owners are listing a home for sale, or simply want to increase their home's stature in the neighborhood, JELD-WEN suggests these five tips to increasing curb appeal:
Stay true to style: Upgrades should fit in with a home's architectural style. For example, JELD-WEN says contemporary homes call for windows and doors with clean lines and simple profiles, while traditional homes such as Craftsmans or Colonials are better matched with windows and doors featuring appropriate divided lite designs.
Add details: Custom features are a great way to achieve one-of-a-kind looks that stand out. Adding a doorknocker, speakeasy, decorative glass or metal accents to an upgraded front door can give an Old World home a heightened level of charm to catch a buyer's eye. New house numbers and porch lights also provide a fresh look for entry areas.
Remember the garage: The most prominent exterior feature in many homes is the garage door, so this upgrade goes a long way toward elevating curb appeal. JELD-WEN is seeing many homeowners ordering garage doors complete with window inserts, metal accents and hardware to match the main entry door for a coordinated appearance.
Dress the yard: Make sure the house is the first thing potential buyers see, not overgrown hedges or dead grass. Hire a gardener to spruce up the landscaping and add colorful touches like seasonal flowers, decorative rocks or bubbly water fountains. Shaping bushes and curving lawn borders can shake up a tired front yard.
Coordinate color: Color, when done right, sells. Doors and windows give homeowners ideal opportunities to infuse color into their curb appeal without having to paint.
Thursday, May 29, 2008
Current Real Estate Rates
Real estate rates up overnight
30-year fixed rate at 5.85%; 10-year Treasury yield at 3.92%
Long-term mortgage interest rates increased Tuesday, and the benchmark 10-year Treasury bond yield climbed to 3.92 percent.
The 30-year fixed-rate average rose to 5.85 percent, and the 15-year fixed rate gained to 5.42 percent. Meanwhile, the 1-year adjustable rate increased to 5.9 percent.
The 30-year Treasury bond yield edged up to 4.64 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average gained 68.72 points, or 0.55 percent, finishing at 12,548.35. The Nasdaq rose 36.57 points, or 1.5 percent, closing at 2,481.24.
30-year fixed rate at 5.85%; 10-year Treasury yield at 3.92%
Long-term mortgage interest rates increased Tuesday, and the benchmark 10-year Treasury bond yield climbed to 3.92 percent.
The 30-year fixed-rate average rose to 5.85 percent, and the 15-year fixed rate gained to 5.42 percent. Meanwhile, the 1-year adjustable rate increased to 5.9 percent.
The 30-year Treasury bond yield edged up to 4.64 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average gained 68.72 points, or 0.55 percent, finishing at 12,548.35. The Nasdaq rose 36.57 points, or 1.5 percent, closing at 2,481.24.
Thursday, May 22, 2008
Nashville Real estate /rates
Long-term mortgage interest rates increased Wednesday, and the benchmark 10-year Treasury bond yield climbed to 3.81 percent.
The 30-year fixed-rate average rose to 5.74 percent, and the 15-year fixed rate gained to 5.31 percent. Meanwhile, the 1-year adjustable rate fell to 5.87 percent.
The 30-year Treasury bond yield edged up to 4.54 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average plunged 227.49 points, or 1.77 percent, finishing at 12,601.19. The Nasdaq lost 43.99 points, or 1.77 percent, closing at 2,492.26.
Now is a great time to buy real estate in Nashville, TN. If you have any questions regarding the Nashville real estate market, please give a call at 615-376-4500 or send us an email at jennifer@homesaroundnashville.com.
The 30-year fixed-rate average rose to 5.74 percent, and the 15-year fixed rate gained to 5.31 percent. Meanwhile, the 1-year adjustable rate fell to 5.87 percent.
The 30-year Treasury bond yield edged up to 4.54 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average plunged 227.49 points, or 1.77 percent, finishing at 12,601.19. The Nasdaq lost 43.99 points, or 1.77 percent, closing at 2,492.26.
Now is a great time to buy real estate in Nashville, TN. If you have any questions regarding the Nashville real estate market, please give a call at 615-376-4500 or send us an email at jennifer@homesaroundnashville.com.
Friday, May 9, 2008
Costly Home Seller mistakes to AVOID
To maximize your sale profit, here are the key costly home seller mistakes to avoid:
1 – DON'T HAVE A STRONG REASON FOR SELLING. As experienced real estate sales agents know, the most difficult home sellers are those who are not highly motivated to sell. Their attitude is, "I'll sell my home if I can get my price and terms."
These homes are often overpriced, wasting the time of the sellers and local realty agents. After a few weeks, local realty agents and their buyers quickly learn about these non-motivated sellers and avoid showing those residences.
But motivated sellers usually have strong sales reasons, such as moving to a retirement home, job relocation, birth or death in the family, purchase of another house or condo, divorce, unemployment, pending foreclosure, illness, or other strong reason to sell.
To avoid wasting time, savvy home buyers and their realty agents often ask, "Why is the seller selling?" If there is no strong motivation signal, such as a realistic asking price, buyers and agents won't even look at the home.
2 – SPEND CONSIDERABLE TIME AND MONEY RENOVATING YOUR HOME BEFORE SELLING. Another costly mistake of many home sellers is to make major home renovations shortly before selling. Such expenditures are usually a waste of money, rarely returning even $1 in increased market value for each $1 spent on improvements.
To illustrate, if your kitchen and bathrooms are outdated, spending thousands of dollars to bring them up to today's "model home" standards often results in little or no increased market value. Worse, the inconvenience of remodeling your kitchen and bathrooms is an experience most homeowners dread.
The only time it pays to renovate kitchens and bathrooms occurs if you plan to stay in your home at least five years to enjoy the improvements.
A far more profitable alternative is to thoroughly paint and fix-up your home to prepare it for sale. Paint is, by far, the most profitable improvement, often adding thousands of dollars to market value for a small expenditure of a few hundred dollars. Additional profitable but inexpensive home improvements include new carpets and flooring, new light fixtures, complete cleaning and repairing, and minor landscaping improvements.
3 – FAIL TO HAVE YOUR HOME PROFESSIONALLY INSPECTED BEFORE PUTTING IT ON THE MARKET.
The third costly mistake that most home sellers make is failing to have their residences professionally inspected before putting it on the market for sale.
The first inspection should be by a professional home inspector. The cost of about $350 is money well spent. Be sure to accompany your inspector to discuss any defects discovered. Home sellers often decide not to repair defects but disclose them to buyers and give a repair credit, if necessary.
Personally, I prefer home inspectors who belong to the American Society of Home Inspectors (ASHI), primarily because of their tough membership requirements such as experience, examinations, and continuing education. Local ASHI members can be found at http://www.ashi.org/ or phone 1-800-743-2744.
Your professional home inspector will also recommend additional or required pre-sale inspections, such as for termites, radon, building code compliance and energy efficiency. By having these pre-sale inspections, sellers can decide whether (1) to make recommended repairs, (2) give the buyer a repair credit (such as for part of the cost of a new roof), or (3) disclose the defect in writing, but let the buyer fix it.
4 – TRY TO SELL YOUR HOME ALONE WITHOUT FIRST INTERVIEWING AT LEAST THREE SUCCESSFUL LOCAL REAL ESTATE AGENTS.
The fourth major mistake many home sellers make is advertising their home "for sale by owner" (FSBO), called a "fizzbo," before interviewing at least three successful realty agents who sell homes in the vicinity.
Each agent's listing presentation should include explaining all the locally required home sale contracts and disclosures, as well as a comparative market analysis (CMA) form. The valuable CMA shows recent sales prices of comparable nearby homes, asking prices of similar neighborhood homes listed for sale (your competition), and asking prices of recently expired (usually overpriced) listings.
The agents you interview won't mind spending an hour or two showing you their listing presentation, such as explaining access to the local multiple listing service (MLS) and the Internet, even if you tell them you are considering selling your home alone to save the sales commission.
The reason is most FSBO sellers fail and, within 30 to 60 days, decide to list with a professional agent. Savvy agents who were already interviewed know they are likely to get the listing.
Approximately 80 percent of homes are sold with the help of a realty agent. Of the other 20 percent, many are sales to relatives and friends who don't require a professional agent's marketing services.
5 – OVERPRICE OR UNDERPRICE YOUR HOME. The fifth costly mistake many home sellers make is (a) pricing their home too high (most FSBOs do this), or (b) under pricing their home, leaving thousands of profit dollars on the table.
However, as a smart home seller who carefully prepared to maximize your sale profit, you won't make that error. By interviewing at least three successful local real estate agents, and comparing their CMAs and each agent's expert opinion of your home's market value, you will correctly set the asking price.
Some home sellers think a better alternative to determine the market value of their home is to obtain a professional appraisal report, usually costing at least $300.
While this approach can be valuable, especially if the home is unique without nearby recent comparable home sales, most appraisers work on past recorded sales price information rather than current up-to-date sales price trends. The result can be an inaccurate too conservative or too optimistic home market value appraisal.
SUMMARY: A successful home sale involves doing the right things right, such as preparing your home for sale by cleaning, painting, and repairing, and avoiding the five most costly mistakes explained above.
Tuesday, April 15, 2008
Nashville Inventory in March
HOME SALES DECREASE; PRICES RISE IN MARCH
There were 2,227 home closings reported for the month of March, according to figures provided by the Greater Nashville Association of Realtors®. This represents a decrease of 28.7 percent from the 3,126 closings reported for the same period last year.
Numbers for the first quarter were 5,763 closings, down 27.8 percent from the 7,990 closings during the first quarter of 2007. "The number of closings is down significantly compared to last year, but the fact that home prices are rising is a good sign that the Greater Nashville market remains stable even in this time of market transition," said Mandy Wachtler, 2008 President of the Greater Nashville Association of Realtors.
"In some parts of the country, both closings and prices are down by significant percentages. When you take that into consideration, the real estate market in Greater Nashville is doing better than many cities and regions. And, there continues to be a lot of showing activity, which may result in more closings soon."
There were 2,308 sales pending at the end of March, compared with 3,218 sales that were pending at the same time last year. The median residential price during March was $178,388 and for a condominium it was $160,573. That compares with median residential and condominium prices at this time last year of $173,400 and $153,400 respectively. The average number of days on the market for a single-family residence was 80 days. Inventory at the end of March was 22,730. That compares with an inventory of 19,091 at the end of March 2007. Current inventory of properties by category, compared to the same time last year, is:
"The increase in inventory means that buyers will have more meaningful choices. That can be a positive factor as we move into spring and early summer, when typically more people are out shopping for homes," Wachtler said. "Sellers will want to make sure their home is in the best possible condition and priced correctly.
In a changing market,the professional support and counsel provided by a Realtor is increasingly valuable to those considering buying, selling or leasing property.
The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which March be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.
There were 2,227 home closings reported for the month of March, according to figures provided by the Greater Nashville Association of Realtors®. This represents a decrease of 28.7 percent from the 3,126 closings reported for the same period last year.
Numbers for the first quarter were 5,763 closings, down 27.8 percent from the 7,990 closings during the first quarter of 2007. "The number of closings is down significantly compared to last year, but the fact that home prices are rising is a good sign that the Greater Nashville market remains stable even in this time of market transition," said Mandy Wachtler, 2008 President of the Greater Nashville Association of Realtors.
"In some parts of the country, both closings and prices are down by significant percentages. When you take that into consideration, the real estate market in Greater Nashville is doing better than many cities and regions. And, there continues to be a lot of showing activity, which may result in more closings soon."
There were 2,308 sales pending at the end of March, compared with 3,218 sales that were pending at the same time last year. The median residential price during March was $178,388 and for a condominium it was $160,573. That compares with median residential and condominium prices at this time last year of $173,400 and $153,400 respectively. The average number of days on the market for a single-family residence was 80 days. Inventory at the end of March was 22,730. That compares with an inventory of 19,091 at the end of March 2007. Current inventory of properties by category, compared to the same time last year, is:
"The increase in inventory means that buyers will have more meaningful choices. That can be a positive factor as we move into spring and early summer, when typically more people are out shopping for homes," Wachtler said. "Sellers will want to make sure their home is in the best possible condition and priced correctly.
In a changing market,the professional support and counsel provided by a Realtor is increasingly valuable to those considering buying, selling or leasing property.
The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which March be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.
Thursday, April 3, 2008
Green Homes
It's Easy Living Green
(ARA) - Everywhere you turn, there's something "green" - whether it's a commercial for a hybrid car or a reminder to pick up reusable bags at the local grocery store. The green movement is under way and concerned Americans are looking for ways to do their part to reduce energy use and pollution, and preserve natural resources.
Whether by changing their daily routines like biking to work instead of driving, or taking up a new hobby like planting trees in the community park, more and more Americans are going green. One aspect of the multifaceted greening of America is the building and buying of "green" or eco-friendly homes.
According to a recent survey conducted for McGraw-Hill Research and Analytics, consumers list environmental concerns among the top three reasons to purchase a green home, along with lower operating costs and health benefits for occupants. Across the country, homebuilders and homebuyers are realizing the benefits of green building and living, from reduced construction waste to better indoor air quality. Homes planned by green developers can also reduce utility bills by more than 50 percent, minimize pollution and demands on infrastructure, and provide greater environmental protection.
"It's amazing how small steps can add up to big results," says Fred Maas, president and CEO of Black Mountain Ranch LLC, the developer of Del Sur - a new green 1,800-acre master-planned residential community in San Diego, Calif. "For example, tankless water heaters are as much as 50 percent more efficient than conventional water heaters - and heating hot water is second only to heating and cooling in terms of residential energy use. If every household in the United States converted to high-efficiency, tankless water heaters, America could save the equivalent of 300 million barrels of oil a year and reduce annual greenhouse gas emissions by up to 150 million tons."
Similarly, replacing just one light bulb in each American home with an efficient compact fluorescent bulb could save enough energy to light more than three million homes for an entire year. This could save more than $600 million in annual energy costs and reduce greenhouse gas emissions by an amount equivalent to removing more than 800,000 cars from America's roads.
Residents of the Del Sur community are learning firsthand the advantages of green home features. Del Sur used its unique size and buying power - 2,500 market-rate homes and 469 low- and moderate-income homes - to negotiate lower prices for solar, tankless hot water and weather-based irrigation systems, making these energy-saving, environmentally-friendly features more affordable for homebuyers.
"All things being equal, homebuyers want to go green, but they don't want to pay a fortune to do so - and they shouldn't have to. Our vision of sustainability is to integrate a core set of 'attainable' green elements into our homes that do their part for the environment and increase value and savings for the consumer," says Maas. By providing homebuyers with green features at lower costs, homebuilders can help to reduce the nation's carbon footprint and preserve the environment without putting all of the burden on the homeowner. By taking advantage of available tax credits and incentives, it is possible to equip homes with solar photovoltaic technology to generate electricity at a reasonable cost, greatly reducing homeowners' electric bills.
"Our homeowners with solar power can draw power from the grid at night and make the meter spin backwards during the day," says Maas. "Some have cut their electric bills to nearly zero. When homeowners realize the savings, they really get a kick out of showing their new energy bills to neighbors and friends in the community.”
"When I see American families living the Southern California lifestyle in 3,000-plus-square-foot homes with gourmet kitchens and all the latest appliances - and their monthly electric bill is close to zero - I know there's no barrier to America going green," says Maas. "We're doing it here in San Diego and I think that, community-by-community, the entire nation can go green.”
Friday, March 7, 2008
FHA Loan Limits
FHA loan limits have increased from $226,100 to $432,500 in the Nashville MSA area. These increased loan limits are good through December 31, 2008.
Other news:
Mortgage bond prices opened higher Friday morning erasing some of the losses seen yesterday afternoon. Rates are finding support from weak economic news released at the open. In news released this morning, the unemployment rate stood at 4.8% and non-farm payrolls, fell 63k. Analysts expected unemployment to stand at 5.0% and for the creation of 25k jobs. The lower reading on the non-farm payrolls number has traders hopeful inflation may be contained.
Other news:
Mortgage bond prices opened higher Friday morning erasing some of the losses seen yesterday afternoon. Rates are finding support from weak economic news released at the open. In news released this morning, the unemployment rate stood at 4.8% and non-farm payrolls, fell 63k. Analysts expected unemployment to stand at 5.0% and for the creation of 25k jobs. The lower reading on the non-farm payrolls number has traders hopeful inflation may be contained.
Friday, February 8, 2008
Boomers buy 1-story homes, but not the old cracker boxes
By NANCY MUELLER
For The Tennessean
There's a new housing product showing up in some neighborhoods: single-story homes designed to fulfill the needs of baby boomers.
These homes bear no resemblance to the low-profile, one-story ranches that many of the boomers grew up in during the '50s and '60s.
These new homes for empty-nesters are stylish and plush, with an emphasis on European-influenced architectural flourishes and open floor plans.
Fixtures, cabinets and flooring materials are high quality. This new version of one-level living also nearly always includes a second-story bonus room, so that most of these homes are technically 1½ stories tall.
Tennessee Valley Homes is one of the builders of this product. It has built one- and 1½-story homes in several Williamson County neighborhoods, including King's Chapel, Avalon, Tollgate Village, Glenellen and the Woodlands at Copperstone, said sales agent Rachel Work.
"We sold three one-stories in Copperstone this summer," she said while showing the builder's two-story Copperstone model home on Amethyst Lane. "We sell out of one-stories very quickly."
Next door is one of the company's unsold single-story homes. Although it may have been designed with downsizing in mind, at 3,885 square feet, it isn't all that small. And there's certainly nothing low-scale about the $679,900 asking price, either.
The kitchen has Viking Signature appliances, custom cabinetry and granite countertops. The master and secondary baths also have granite countertops. The upstairs bonus room, the only room on the second level, features a custom wet bar and a powder room.
Large footprint is costly
These homes are more expensive to build because they require, proportionally, more foundation, which can make the price per square foot higher.
Work said, however, that boomer buyers do not necessarily want to lose too much square footage when they downsize. They just want all of their bedrooms on one floor.
And they care about the exterior appearance of their new homes, eschewing anything that appears too squatty.
"I talked to one lady who wanted all of the bedrooms on one floor, but she wanted it to look like a two-story," Work said.
In Glenellen, under development in southeast Brentwood, Tennessee Valley Homes has built eight homes. Five have sold, and three of those feature all first-floor bedrooms. They were all snapped up by baby boomers with no children living at home, Work said.
"The other two were looking for one-story and ended up with two-story houses that have two bedrooms on the main level," she said. "They were baby boomers, too."
Demand is growing
Upscale homes for empty- nest baby boomers will constitute 8 to 10 percent of the national housing market over the next 18 years, market forecaster Edsel Charles said.
Charles' MarketGraphics Research Group, which is based in Franklin but makes market forecasts for clients in 20 states, has isolated the desires of empty-nesters moving from homes of at least 5,000 square feet and seeking a new home with a yard, as opposed to a townhouse or condo.
In the Nashville area alone, that translates into a probable need for 800 to 1,100 new, upscale empty nests per year, starting in 2008, Charles says.
By NANCY MUELLER
For The Tennessean
There's a new housing product showing up in some neighborhoods: single-story homes designed to fulfill the needs of baby boomers.
These homes bear no resemblance to the low-profile, one-story ranches that many of the boomers grew up in during the '50s and '60s.
These new homes for empty-nesters are stylish and plush, with an emphasis on European-influenced architectural flourishes and open floor plans.
Fixtures, cabinets and flooring materials are high quality. This new version of one-level living also nearly always includes a second-story bonus room, so that most of these homes are technically 1½ stories tall.
Tennessee Valley Homes is one of the builders of this product. It has built one- and 1½-story homes in several Williamson County neighborhoods, including King's Chapel, Avalon, Tollgate Village, Glenellen and the Woodlands at Copperstone, said sales agent Rachel Work.
"We sold three one-stories in Copperstone this summer," she said while showing the builder's two-story Copperstone model home on Amethyst Lane. "We sell out of one-stories very quickly."
Next door is one of the company's unsold single-story homes. Although it may have been designed with downsizing in mind, at 3,885 square feet, it isn't all that small. And there's certainly nothing low-scale about the $679,900 asking price, either.
The kitchen has Viking Signature appliances, custom cabinetry and granite countertops. The master and secondary baths also have granite countertops. The upstairs bonus room, the only room on the second level, features a custom wet bar and a powder room.
Large footprint is costly
These homes are more expensive to build because they require, proportionally, more foundation, which can make the price per square foot higher.
Work said, however, that boomer buyers do not necessarily want to lose too much square footage when they downsize. They just want all of their bedrooms on one floor.
And they care about the exterior appearance of their new homes, eschewing anything that appears too squatty.
"I talked to one lady who wanted all of the bedrooms on one floor, but she wanted it to look like a two-story," Work said.
In Glenellen, under development in southeast Brentwood, Tennessee Valley Homes has built eight homes. Five have sold, and three of those feature all first-floor bedrooms. They were all snapped up by baby boomers with no children living at home, Work said.
"The other two were looking for one-story and ended up with two-story houses that have two bedrooms on the main level," she said. "They were baby boomers, too."
Demand is growing
Upscale homes for empty- nest baby boomers will constitute 8 to 10 percent of the national housing market over the next 18 years, market forecaster Edsel Charles said.
Charles' MarketGraphics Research Group, which is based in Franklin but makes market forecasts for clients in 20 states, has isolated the desires of empty-nesters moving from homes of at least 5,000 square feet and seeking a new home with a yard, as opposed to a townhouse or condo.
In the Nashville area alone, that translates into a probable need for 800 to 1,100 new, upscale empty nests per year, starting in 2008, Charles says.
Wednesday, February 6, 2008
PRIVATE MORTGAGE INSURANCE
What Is PMI?
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
New PMI Requirements
A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. The HPA also contains disclosure provisions for mortgage loans that closed before July 29, 1999. In addition, the HPA includes provisions for borrower-requested cancellation and automatic termination of PMI.
Why a Change in PMI Requirements?
In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required.
The Homeowner's Protection Act (HPA) of 1998
What Loans Are Covered?
Generally, the HPA applies to residential mortgage transactions obtained on or after July 29, 1999, but it also has requirements for loans obtained before that date. This new law does not cover VA and FHA government-guaranteed loans. In addition, the new law has different requirements for loans classified as "high-risk." Although the HPA does not provide the standards for what constitutes a "high risk" loan, it permits Fannie Mae and Freddie Mac to issue guidance for mortgages that conform to secondary market loan limits. Fannie Mae and Freddie Mac are corporations chartered by Congress to create a continuous flow of funds to mortgage lenders in support of homeownership. As of January 1, 2000, mortgages in amounts of $252,700 or less are considered conforming loans. For non-conforming mortgages, the lender may designate mortgage loans as "high risk."
What Is a Residential Mortgage Transaction?
There are four requirements for a transaction to be considered a residential mortgage transaction: (1) a mortgage or deed of trust must be created or retained; (2) the property securing the loan must be a single-family dwelling; (3) the single-family dwelling must be the primary residence of the borrower; and (4) the purpose of the transaction must be to finance the acquisition, initial construction, or refinancing of that dwelling.
How Do You Cancel or Terminate PMI?
Cancellation
Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.
Automatic Termination
Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan. If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon thereafter as the loan becomes current. Lenders must terminate the coverage within 30 days of cancellation or the automatic termination date, and are not permitted to require PMI premiums after this date. Any unearned premiums must be returned to you within 45 days of the cancellation or termination date.
For high risk loans, mortgage lenders or servicers are required to automatically cancel PMI coverage once the mortgage is paid down to 77 percent of the original value of the property, provided you are current on your loan.
Final Termination
Under HPA, if PMI has not been canceled or otherwise terminated, coverage must be removed when the loan reaches the midpoint of the amortization period. On a 30-year loan with 360 monthly payments, for example, the chronological midpoint would occur after 180 payments. This provision also requires that the borrower must be current on the payments required by the terms of the mortgage. Final termination must occur within 30 days of this date.
What Disclosures Does the HPA Require?
For Loans Obtained on or after July 29, 1999
The HPA establishes three different times when a lender or servicer must notify a consumer of his or her rights. Those times are at loan closing, annually, and upon cancellation or termination of PMI.
The content of these disclosures varies depending on whether: (1) PMI is "borrower-paid PMI" or "lender-paid PMI," (2) the loan is classified as a "fixed rate mortgage" or "adjustable rate mortgage," or (3) the loan is designated as "high risk" or not.
At loan closing, lenders are required to disclose all of the following to borrowers:
The right to request cancellation of PMI and the date on which this request may be made.
The requirement that PMI be automatically terminated and the date on which this will occur.
Any exemptions to the right to cancellation or automatic termination.
A written initial amortization schedule (fixed-rate loans only).
Annually, your mortgage loan servicer must send borrowers a written statement that discloses:
The right to cancel or terminate PMI.
An address and telephone number to contact the loan servicer to determine when PMI may be canceled.
When the PMI coverage is canceled or terminated, a notification must be sent to the consumer stating that:
PMI has been terminated, and the borrower no longer has PMI coverage.
No further PMI premiums are due.
The obligation for providing notice of cancellation or termination is with the servicer of the mortgage.
An annual statement must be sent to consumers whose mortgages were obtained before July 29, 1999. This statement should explain that under certain circumstances PMI may be canceled (such as with consent of the mortgagee). It should also provide an address and telephone number to contact the loan servicer to determine whether PMI may be canceled.
The HPA's cancellation and automatic termination rules do not apply to loans made before July 29, 1999.
Although parts of the new law apply only to loans obtained on or after July 29, 1999, many lenders report that they plan to follow the HPA's requirements for both new and existing loans. Making a call to your mortgage loan servicer will help you understand exactly how the law applies to you and your mortgage.
What If Your Home Value Has Increased?
When making mortgage payments, most of the payments during the first few years are finance charges. Therefore, it can take 10 to 15 years to pay down a loan to reach 80 percent of the loan value. If the home prices in your area are rising quickly, your property value may increase so that you can reach the 80 percent mark a lot faster. Your property value could also increase due to home improvements that you make to your home.
If you think your home value has increased, you may be able to cancel PMI on your mortgage. Although the new law does not require a mortgage servicer to consider the current property value, you should contact them to see if they are willing to do so. Also, be sure to ask what documentation may be required to demonstrate the higher property value.
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
New PMI Requirements
A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. The HPA also contains disclosure provisions for mortgage loans that closed before July 29, 1999. In addition, the HPA includes provisions for borrower-requested cancellation and automatic termination of PMI.
Why a Change in PMI Requirements?
In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required.
The Homeowner's Protection Act (HPA) of 1998
What Loans Are Covered?
Generally, the HPA applies to residential mortgage transactions obtained on or after July 29, 1999, but it also has requirements for loans obtained before that date. This new law does not cover VA and FHA government-guaranteed loans. In addition, the new law has different requirements for loans classified as "high-risk." Although the HPA does not provide the standards for what constitutes a "high risk" loan, it permits Fannie Mae and Freddie Mac to issue guidance for mortgages that conform to secondary market loan limits. Fannie Mae and Freddie Mac are corporations chartered by Congress to create a continuous flow of funds to mortgage lenders in support of homeownership. As of January 1, 2000, mortgages in amounts of $252,700 or less are considered conforming loans. For non-conforming mortgages, the lender may designate mortgage loans as "high risk."
What Is a Residential Mortgage Transaction?
There are four requirements for a transaction to be considered a residential mortgage transaction: (1) a mortgage or deed of trust must be created or retained; (2) the property securing the loan must be a single-family dwelling; (3) the single-family dwelling must be the primary residence of the borrower; and (4) the purpose of the transaction must be to finance the acquisition, initial construction, or refinancing of that dwelling.
How Do You Cancel or Terminate PMI?
Cancellation
Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.
Automatic Termination
Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan. If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon thereafter as the loan becomes current. Lenders must terminate the coverage within 30 days of cancellation or the automatic termination date, and are not permitted to require PMI premiums after this date. Any unearned premiums must be returned to you within 45 days of the cancellation or termination date.
For high risk loans, mortgage lenders or servicers are required to automatically cancel PMI coverage once the mortgage is paid down to 77 percent of the original value of the property, provided you are current on your loan.
Final Termination
Under HPA, if PMI has not been canceled or otherwise terminated, coverage must be removed when the loan reaches the midpoint of the amortization period. On a 30-year loan with 360 monthly payments, for example, the chronological midpoint would occur after 180 payments. This provision also requires that the borrower must be current on the payments required by the terms of the mortgage. Final termination must occur within 30 days of this date.
What Disclosures Does the HPA Require?
For Loans Obtained on or after July 29, 1999
The HPA establishes three different times when a lender or servicer must notify a consumer of his or her rights. Those times are at loan closing, annually, and upon cancellation or termination of PMI.
The content of these disclosures varies depending on whether: (1) PMI is "borrower-paid PMI" or "lender-paid PMI," (2) the loan is classified as a "fixed rate mortgage" or "adjustable rate mortgage," or (3) the loan is designated as "high risk" or not.
At loan closing, lenders are required to disclose all of the following to borrowers:
The right to request cancellation of PMI and the date on which this request may be made.
The requirement that PMI be automatically terminated and the date on which this will occur.
Any exemptions to the right to cancellation or automatic termination.
A written initial amortization schedule (fixed-rate loans only).
Annually, your mortgage loan servicer must send borrowers a written statement that discloses:
The right to cancel or terminate PMI.
An address and telephone number to contact the loan servicer to determine when PMI may be canceled.
When the PMI coverage is canceled or terminated, a notification must be sent to the consumer stating that:
PMI has been terminated, and the borrower no longer has PMI coverage.
No further PMI premiums are due.
The obligation for providing notice of cancellation or termination is with the servicer of the mortgage.
An annual statement must be sent to consumers whose mortgages were obtained before July 29, 1999. This statement should explain that under certain circumstances PMI may be canceled (such as with consent of the mortgagee). It should also provide an address and telephone number to contact the loan servicer to determine whether PMI may be canceled.
The HPA's cancellation and automatic termination rules do not apply to loans made before July 29, 1999.
Although parts of the new law apply only to loans obtained on or after July 29, 1999, many lenders report that they plan to follow the HPA's requirements for both new and existing loans. Making a call to your mortgage loan servicer will help you understand exactly how the law applies to you and your mortgage.
What If Your Home Value Has Increased?
When making mortgage payments, most of the payments during the first few years are finance charges. Therefore, it can take 10 to 15 years to pay down a loan to reach 80 percent of the loan value. If the home prices in your area are rising quickly, your property value may increase so that you can reach the 80 percent mark a lot faster. Your property value could also increase due to home improvements that you make to your home.
If you think your home value has increased, you may be able to cancel PMI on your mortgage. Although the new law does not require a mortgage servicer to consider the current property value, you should contact them to see if they are willing to do so. Also, be sure to ask what documentation may be required to demonstrate the higher property value.
Tuesday, February 5, 2008
Life Expectancy of Home Components
One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes, is to know the expected life expectancy of your home's components.
Such knowledge doesn't supersede the use of a home inspector when buying a home, new or old, but it can help you develop a savings plan so you are prepared for the inevitable. Sooner or later you'll have to repair or replace many of your home's parts -- inside and out.
Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.
When the roof goes, the appliances conk out, or the paint begins to fade, it's a lot easier to come up with the cash if you've already got some socked away for just this kind of rainy day.
Last year, the National Association of Home Builders, along with the Bank of America developed the "NAHB/BoA Home Equity Study of Life Expectancy of Home Components" to help you take the guess work out of preparing for the worst.
The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance -- or the lack of it -- can all affect the life expectancy of many components.
Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life time is up.
In any event based on a comprehensive telephone survey of manufacturers, trade associations and researchers NAHB developed information about the longevity of housing components.
From the foundation to the rooftop, here's a quick look at how long, on a national average, some of the most common home components are expected to last.
Foundations. Poured concrete block footings and slab foundations should last a lifetime, 80 to 100 years or more provided they were quality built. The foundation termite proofing, 12 years, provided the chemical barriers remain intact.
Properly installed waterproofing with bituminous coating should last 10 years.
Flooring. Natural wood flooring has a life expectancy of 100 years or more with proper care. Marble, slate, and granite, likewise, but again, only with proper maintenance. Vinyl floors wear out in 50 years, linoleum about 25 years, and carpet between 8 and 10 years, tops.
Electrical system. In the electrical system, copper plated wiring, copper clad aluminum, and bare copper wiring are expected to last a lifetime, whereas electrical accessories and lighting controls are expected to fail not much longer than 10 years.
Outside materials. Outside materials typically last a lifetime. Brick, vinyl, engineered wood, stone (both natural and manufactured), and fiber cement typically last as long the house exists. Exterior wood shutters get 20 years, well maintained gutters, 50 if they are copper, 20 years if they are aluminum. Copper downspouts last longest, 100 years or more, while aluminum ones give out after 30 years.
Doors. Exterior fiberglass, steel and wood doors will last as long as the house exists, while vinyl and screen doors have a life expectancy of 20 and 40 years, respectively. Closet doors are expected to last a lifetime, and French doors have an average life of 30 to 50 years.
Windows. Wooden windows last longer than aluminum ones -- 30 years compared to only 15 or 20.
Heating, ventilation, and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.
Appliances. Appliances' life expectancies depend largely on how much they are used, but they are typically replaced long before they are done. One must keep up with the Joneses. Among major appliances, gas ranges live15 years, dryers and refrigerators die at 13, compactors, dishwashers and microwave ovens might last until they are 9 years.
Roofing. The life of a roof is largely dependant upon local weather conditions, proper building and design, material quality, and adequate maintenance. Slate, copper, and clay/concrete roofs have the longest life expectancy, 50 years or more. Wood shake roofs, go for 30 years, fiber cement shingles last 25 years, asphalt shingles give up at 20.
One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes, is to know the expected life expectancy of your home's components.
Such knowledge doesn't supersede the use of a home inspector when buying a home, new or old, but it can help you develop a savings plan so you are prepared for the inevitable. Sooner or later you'll have to repair or replace many of your home's parts -- inside and out.
Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.
When the roof goes, the appliances conk out, or the paint begins to fade, it's a lot easier to come up with the cash if you've already got some socked away for just this kind of rainy day.
Last year, the National Association of Home Builders, along with the Bank of America developed the "NAHB/BoA Home Equity Study of Life Expectancy of Home Components" to help you take the guess work out of preparing for the worst.
The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance -- or the lack of it -- can all affect the life expectancy of many components.
Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life time is up.
In any event based on a comprehensive telephone survey of manufacturers, trade associations and researchers NAHB developed information about the longevity of housing components.
From the foundation to the rooftop, here's a quick look at how long, on a national average, some of the most common home components are expected to last.
Foundations. Poured concrete block footings and slab foundations should last a lifetime, 80 to 100 years or more provided they were quality built. The foundation termite proofing, 12 years, provided the chemical barriers remain intact.
Properly installed waterproofing with bituminous coating should last 10 years.
Flooring. Natural wood flooring has a life expectancy of 100 years or more with proper care. Marble, slate, and granite, likewise, but again, only with proper maintenance. Vinyl floors wear out in 50 years, linoleum about 25 years, and carpet between 8 and 10 years, tops.
Electrical system. In the electrical system, copper plated wiring, copper clad aluminum, and bare copper wiring are expected to last a lifetime, whereas electrical accessories and lighting controls are expected to fail not much longer than 10 years.
Outside materials. Outside materials typically last a lifetime. Brick, vinyl, engineered wood, stone (both natural and manufactured), and fiber cement typically last as long the house exists. Exterior wood shutters get 20 years, well maintained gutters, 50 if they are copper, 20 years if they are aluminum. Copper downspouts last longest, 100 years or more, while aluminum ones give out after 30 years.
Doors. Exterior fiberglass, steel and wood doors will last as long as the house exists, while vinyl and screen doors have a life expectancy of 20 and 40 years, respectively. Closet doors are expected to last a lifetime, and French doors have an average life of 30 to 50 years.
Windows. Wooden windows last longer than aluminum ones -- 30 years compared to only 15 or 20.
Heating, ventilation, and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.
Appliances. Appliances' life expectancies depend largely on how much they are used, but they are typically replaced long before they are done. One must keep up with the Joneses. Among major appliances, gas ranges live15 years, dryers and refrigerators die at 13, compactors, dishwashers and microwave ovens might last until they are 9 years.
Roofing. The life of a roof is largely dependant upon local weather conditions, proper building and design, material quality, and adequate maintenance. Slate, copper, and clay/concrete roofs have the longest life expectancy, 50 years or more. Wood shake roofs, go for 30 years, fiber cement shingles last 25 years, asphalt shingles give up at 20.
Friday, February 1, 2008
Keep that Heating Bill Lower
Seven Tips to Slash Soaring Home Heating Bills
(ARA) - Consumers will likely pay record prices to heat their homes this winter, up an average of 10.5 percent from last winter, says NEADA, a group of state energy aid officials. Now is the time to give your home a “check-up.” Here are seven tips from the Comfort Institute to make your home an energy sipper instead of a gas guzzler.
Ask your HVAC contractor to test your duct system for air leaks. Many assume that windows and doors are the major cause of a home's energy wasting air leaks. But according to recent research by the Department of Energy (DOE), gaps, joints and disconnections in the typical home's duct system are much more significant. The DOE states that the typical duct system loses 25 to 40 percent of the energy put out by the central furnace or heat pump. Authorities recommend sealing ducts with a brushed on fiber-reinforced elastomeric sealant. Duct tape usually dries out and fails. It turns out duct tape is great for many things, but sealing ducts isn't one of them.
Ask your contractor to perform an Infiltrometer “blower door” test. The blower door is a computerized instrument originally invented by the Department of Energy. It pinpoints where your home's worst air leaks are, such as duct leaks, and also measures how leaky the overall house is.
Most homes have the equivalent of an open window in combined air leaks. Many heating contractors offer an Infiltrometer test as part of a “Home & Duct Performance Checkup” that also checks insulation levels and overall duct performance.
Have your heating system cleaned and tuned. A pre-season tune up is a great investment. It reduces the chances of breakdowns on cold winter nights, improves safety and more than pays for itself through more energy efficient operation. For a free report: “How to Identify a Good Heating and Cooling Contractor,” go to http://www.comfortinstitute.org/.
Replace your furnace or heat pump air filter (or clean it if it is an electronic unit). Most systems need this done every month to ensure safe and efficient operation. Keep forgetting to do it? Ask your contractor for an extended surface area central air filter that only needs to be replaced once a year. It also does a far better job of keeping your equipment and the air in your home clean.
Close your fireplace damper. Did you remember to close it last time you used the fireplace? Shut it now or waste precious warm air all winter long.
Install a programmable set-back thermostat. Turning down the thermostat eight degrees for eight hours a day will save 8 percent on home heating costs. An easy way to take advantage of these savings is to lower the thermostat temperature while away from home or sleeping. Ask your heating contractor about new models which are much easier to program.
Consider replacing your old furnace or heat pump. Just like a car, heating and cooling equipment doesn't last forever. Is your system more than 12 years old? Planning to stay in your home more than a few years?
Many authorities recommend replacing it before it fails permanently. New units can pay for themselves over time as they are up to twice as energy efficient. However, government and utility research has found that over 90 percent of newly installed high efficiency systems have energy wasting mistakes. Today's new equipment is drastically compromised if it is hooked up to bad ducts.
Do some homework before talking to contractors. For more information, visit http://www.energystar.gov/ and http://www.comfortinstitute.org/. Print out the free Comfort Institute report “Tips and Secrets to Buying A New Heating and Cooling System.”
Courtesy of ARAcontent
(ARA) - Consumers will likely pay record prices to heat their homes this winter, up an average of 10.5 percent from last winter, says NEADA, a group of state energy aid officials. Now is the time to give your home a “check-up.” Here are seven tips from the Comfort Institute to make your home an energy sipper instead of a gas guzzler.
Ask your HVAC contractor to test your duct system for air leaks. Many assume that windows and doors are the major cause of a home's energy wasting air leaks. But according to recent research by the Department of Energy (DOE), gaps, joints and disconnections in the typical home's duct system are much more significant. The DOE states that the typical duct system loses 25 to 40 percent of the energy put out by the central furnace or heat pump. Authorities recommend sealing ducts with a brushed on fiber-reinforced elastomeric sealant. Duct tape usually dries out and fails. It turns out duct tape is great for many things, but sealing ducts isn't one of them.
Ask your contractor to perform an Infiltrometer “blower door” test. The blower door is a computerized instrument originally invented by the Department of Energy. It pinpoints where your home's worst air leaks are, such as duct leaks, and also measures how leaky the overall house is.
Most homes have the equivalent of an open window in combined air leaks. Many heating contractors offer an Infiltrometer test as part of a “Home & Duct Performance Checkup” that also checks insulation levels and overall duct performance.
Have your heating system cleaned and tuned. A pre-season tune up is a great investment. It reduces the chances of breakdowns on cold winter nights, improves safety and more than pays for itself through more energy efficient operation. For a free report: “How to Identify a Good Heating and Cooling Contractor,” go to http://www.comfortinstitute.org/.
Replace your furnace or heat pump air filter (or clean it if it is an electronic unit). Most systems need this done every month to ensure safe and efficient operation. Keep forgetting to do it? Ask your contractor for an extended surface area central air filter that only needs to be replaced once a year. It also does a far better job of keeping your equipment and the air in your home clean.
Close your fireplace damper. Did you remember to close it last time you used the fireplace? Shut it now or waste precious warm air all winter long.
Install a programmable set-back thermostat. Turning down the thermostat eight degrees for eight hours a day will save 8 percent on home heating costs. An easy way to take advantage of these savings is to lower the thermostat temperature while away from home or sleeping. Ask your heating contractor about new models which are much easier to program.
Consider replacing your old furnace or heat pump. Just like a car, heating and cooling equipment doesn't last forever. Is your system more than 12 years old? Planning to stay in your home more than a few years?
Many authorities recommend replacing it before it fails permanently. New units can pay for themselves over time as they are up to twice as energy efficient. However, government and utility research has found that over 90 percent of newly installed high efficiency systems have energy wasting mistakes. Today's new equipment is drastically compromised if it is hooked up to bad ducts.
Do some homework before talking to contractors. For more information, visit http://www.energystar.gov/ and http://www.comfortinstitute.org/. Print out the free Comfort Institute report “Tips and Secrets to Buying A New Heating and Cooling System.”
Courtesy of ARAcontent
Tuesday, January 29, 2008
MORTGAGE RATES
AVERAGE MORTGAGE RATES AS OF 1/29/2008
Loan Type Today Last Week
30 Year Fixed 5.45% 5.42%
15 Year Fixed 4.94% 4.93%
1 Year ARM 5.12% 5.29%
30 Year Fixed Jumbo 6.56% 6.46%
5/1 ARM 5.05% 5.12%
3/1 ARM 4.98% 5.08%
Loan Type Today Last Week
30 Year Fixed 5.45% 5.42%
15 Year Fixed 4.94% 4.93%
1 Year ARM 5.12% 5.29%
30 Year Fixed Jumbo 6.56% 6.46%
5/1 ARM 5.05% 5.12%
3/1 ARM 4.98% 5.08%
Saturday, January 19, 2008
Pricing Your Home To Sell
8 tips for pricing your home
article by Cheryl Allebrand
In many cases, making a smart deal and getting the best price comes down to studying your market and being an educated seller.
"You've got to know more than you would have if you'd sold a year ago," says William Poorvu, professor emeritus at Harvard Business School and author of the upcoming book "Creating and Growing Real Estate Wealth." "If you want to protect yourself, you have to become knowledgeable."
8 factors to keep in mind as you prepare to sell:
1. Recognize that housing markets are local.
2. Analyze who is buying and selling in your market.
3. Ask the professionals.
4. Know what your house is worth.
5. Consider strategic pricing.
6. Rebate your "commission."
7. Evaluate whether you really have to sell now.
8. Assess the market where you plan to buy.
1. Recognize that housing markets are local.
Home prices are like the weather -- very different in different areas.
In many markets, home prices have actually gone up from last year, says Dick Gaylord, president of the National Association of Realtors.
In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What's the demand for a house like yours in your area?
"You have to look at what's being sold and at what price," says Poorvu. "That's important."
Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers, says Gaylord.
What are the trends? Are prices going up or down -- and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.
Pay special attention to "the delta between the list price and the sales price," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5 percent less than the list price.
"An agent who works the market will be in the best position" to find "the tipping point between nice, attractive and interesting -- and being sold," Phipps says. You want to find the point between, "Hey, that's interesting," and "It's too good to pass up."
If you're not using a real estate agent, it's especially important to use the Internet, visit open houses in your area and study home sales in your Sunday paper, says Greg Healy, vice president of operations for ForSaleByOwner.com.
But you also need to realize that the paperwork alone only tells part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping?
Do you live in an area like Phoenix, "a growing market with people coming in," says Poorvu. Or are you living in an area that doesn't attract a lot of new residents, where many shoppers are "bottom fishers" who don't have to buy but are "looking to pick up a bargain," he says.
Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Ask the professionals.
Don't ignore the elephant in the living room. When you interview real estate agents, ask about the market conditions for your area and price range.
Specifically, ask about the "absorption rate" says Phipps. What that means: In the current conditions with the current inventory, how long would it take the market to absorb or sell, all the houses on the market?
If the supply is much larger than the demand, ask potential agents how they would "price to offset that inventory," he says.
4. Know what your house is worth.
Talk to a handful of agents. Get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.
5. Consider strategic pricing.
Here's how it works: If prices in your area are dropping 1 percent each month, and you want to sell within the next three months, you take 3 percent off your price right off the bat, says Phipps. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.
The upside: You'll have the competitive edge over the guy who's dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you'll make more money if you sell quickly.
The downside: Predicting the market is a tough call, even for the pros. And it's really difficult to raise the price if your market starts to rebound, Phipps says.
6. Rebate your 'commission.'
If you're selling it yourself and need to move quickly, consider subtracting half of what would have been the commission from the sales price, says Healy. The standard commission is about 6 percent, so if you subtract 3 percent, your $300,000 house would go on the market for $291,000, he says.
Listing a home for "$9,000 to $10,000 under that value should create higher interest," especially if it's new to the market, says Healy.
The downside: If the house doesn't sell and you end up hiring an agent, you'll need to cover the commission, which may mean raising your sales price or taking a smaller profit.
7. Evaluate whether you really have to sell now.
If you want to get the best possible price for your home and the local market is tanking, "see if you can delay the sale," says Poorvu. Otherwise, in a lot of markets, sellers have "to be willing to accept a pretty good haircut over what they thought their home was worth last year," he says.
The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly.
But for situations where the move is optional (or you might be able to rent the property until your local market improves), waiting is a solid option.
Just because you've already planted that "for sale" sign doesn't mean you can't change your mind if you're not seeing the interest you anticipated.
"If you know there are no sales or sales are decreasing, and you have the opportunity," taking it off the market is a decent solution, says Healy. "I think we're seeing a lot of that."
8. Assess the market where you plan to buy.
If you're selling one house and buying another, look at the market where you plan to move. Says Poorvu, "It might be that, with the housing there, it's a great time to buy."
article by Cheryl Allebrand
In many cases, making a smart deal and getting the best price comes down to studying your market and being an educated seller.
"You've got to know more than you would have if you'd sold a year ago," says William Poorvu, professor emeritus at Harvard Business School and author of the upcoming book "Creating and Growing Real Estate Wealth." "If you want to protect yourself, you have to become knowledgeable."
8 factors to keep in mind as you prepare to sell:
1. Recognize that housing markets are local.
2. Analyze who is buying and selling in your market.
3. Ask the professionals.
4. Know what your house is worth.
5. Consider strategic pricing.
6. Rebate your "commission."
7. Evaluate whether you really have to sell now.
8. Assess the market where you plan to buy.
1. Recognize that housing markets are local.
Home prices are like the weather -- very different in different areas.
In many markets, home prices have actually gone up from last year, says Dick Gaylord, president of the National Association of Realtors.
In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What's the demand for a house like yours in your area?
"You have to look at what's being sold and at what price," says Poorvu. "That's important."
Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers, says Gaylord.
What are the trends? Are prices going up or down -- and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.
Pay special attention to "the delta between the list price and the sales price," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5 percent less than the list price.
"An agent who works the market will be in the best position" to find "the tipping point between nice, attractive and interesting -- and being sold," Phipps says. You want to find the point between, "Hey, that's interesting," and "It's too good to pass up."
If you're not using a real estate agent, it's especially important to use the Internet, visit open houses in your area and study home sales in your Sunday paper, says Greg Healy, vice president of operations for ForSaleByOwner.com.
But you also need to realize that the paperwork alone only tells part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping?
Do you live in an area like Phoenix, "a growing market with people coming in," says Poorvu. Or are you living in an area that doesn't attract a lot of new residents, where many shoppers are "bottom fishers" who don't have to buy but are "looking to pick up a bargain," he says.
Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Ask the professionals.
Don't ignore the elephant in the living room. When you interview real estate agents, ask about the market conditions for your area and price range.
Specifically, ask about the "absorption rate" says Phipps. What that means: In the current conditions with the current inventory, how long would it take the market to absorb or sell, all the houses on the market?
If the supply is much larger than the demand, ask potential agents how they would "price to offset that inventory," he says.
4. Know what your house is worth.
Talk to a handful of agents. Get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.
5. Consider strategic pricing.
Here's how it works: If prices in your area are dropping 1 percent each month, and you want to sell within the next three months, you take 3 percent off your price right off the bat, says Phipps. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.
The upside: You'll have the competitive edge over the guy who's dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you'll make more money if you sell quickly.
The downside: Predicting the market is a tough call, even for the pros. And it's really difficult to raise the price if your market starts to rebound, Phipps says.
6. Rebate your 'commission.'
If you're selling it yourself and need to move quickly, consider subtracting half of what would have been the commission from the sales price, says Healy. The standard commission is about 6 percent, so if you subtract 3 percent, your $300,000 house would go on the market for $291,000, he says.
Listing a home for "$9,000 to $10,000 under that value should create higher interest," especially if it's new to the market, says Healy.
The downside: If the house doesn't sell and you end up hiring an agent, you'll need to cover the commission, which may mean raising your sales price or taking a smaller profit.
7. Evaluate whether you really have to sell now.
If you want to get the best possible price for your home and the local market is tanking, "see if you can delay the sale," says Poorvu. Otherwise, in a lot of markets, sellers have "to be willing to accept a pretty good haircut over what they thought their home was worth last year," he says.
The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly.
But for situations where the move is optional (or you might be able to rent the property until your local market improves), waiting is a solid option.
Just because you've already planted that "for sale" sign doesn't mean you can't change your mind if you're not seeing the interest you anticipated.
"If you know there are no sales or sales are decreasing, and you have the opportunity," taking it off the market is a decent solution, says Healy. "I think we're seeing a lot of that."
8. Assess the market where you plan to buy.
If you're selling one house and buying another, look at the market where you plan to move. Says Poorvu, "It might be that, with the housing there, it's a great time to buy."
Wednesday, January 9, 2008
Rates drop again...
Real estate rates drop for 5th night
30-year fixed rate at 5.55%; 10-year Treasury yield at 3.78%
Wednesday, January 09, 2008
Long-term mortgage interest rates continued to fall Tuesday, and the benchmark 10-year Treasury bond yield dipped to 3.78 percent.
The 30-year fixed-rate average sank to 5.55 percent, and the 15-year fixed rate slid to 5.06 percent. The 1-year adjustable rate, however, was up at 5.34 percent.
The 30-year Treasury bond yield slipped to 4.31 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 238.42 points, or 1.86 percent, finishing at 12,589.07. The Nasdaq lost 58.95 points, or 2.36 percent, closing at 2,440.51.
30-year fixed rate at 5.55%; 10-year Treasury yield at 3.78%
Wednesday, January 09, 2008
Long-term mortgage interest rates continued to fall Tuesday, and the benchmark 10-year Treasury bond yield dipped to 3.78 percent.
The 30-year fixed-rate average sank to 5.55 percent, and the 15-year fixed rate slid to 5.06 percent. The 1-year adjustable rate, however, was up at 5.34 percent.
The 30-year Treasury bond yield slipped to 4.31 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 238.42 points, or 1.86 percent, finishing at 12,589.07. The Nasdaq lost 58.95 points, or 2.36 percent, closing at 2,440.51.
Wednesday, January 2, 2008
Price reductions
HOME SELLER TIP: The best time to make a price reduction is as soon as you discover that your home is priced too high for the market. Waiting too long to lower the price can cost money in the long run if the market is moving lower. Reducing too little, too late can lead to a series of further reductions and ultimately to a lower selling price. Ideally, you should avoid such an unpleasant downward spiral.
The goal is to sell without having to reduce the price. To do this, you must accept current market conditions. You also need to recognize that no matter how wonderful you think your home is a buyer will find fault with it.
To be a successful seller in this market -- and to some extent in any market -- requires separating pride of ownership in the property from the task as hand, which is to sell for the highest price possible. It's not easy for most sellers to put their emotional feelings about their home on ice. It helps to stop thinking of the property as "home" and to start looking at it as a commodity you want to sell.
Before listing a property for sale, sellers should seriously consider their motivation. Successful sellers in today's more difficult marketplaces have a compelling need to sell. They don't simply want to sell if someone will make it worth their while. Many of today's prospective home buyers have a wait-and-see attitude about the market. They are looking, but it will take a fabulous home offered at a great price before they'll commit to buy.
Sellers should also check out the temperature of the local market. Residential real estate is a localized business. Even if you live in a city where prices are down, that might not be the case in your neighborhood. The supply of homes for sale and demand for housing are critical variables, as is the local employment picture.
There is a common theme to the listings that sell well now. These listings look great, are in good condition, don't have incurable defects and are priced right for the market.
Being realistic about what to expect is half the battle.
The goal is to sell without having to reduce the price. To do this, you must accept current market conditions. You also need to recognize that no matter how wonderful you think your home is a buyer will find fault with it.
To be a successful seller in this market -- and to some extent in any market -- requires separating pride of ownership in the property from the task as hand, which is to sell for the highest price possible. It's not easy for most sellers to put their emotional feelings about their home on ice. It helps to stop thinking of the property as "home" and to start looking at it as a commodity you want to sell.
Before listing a property for sale, sellers should seriously consider their motivation. Successful sellers in today's more difficult marketplaces have a compelling need to sell. They don't simply want to sell if someone will make it worth their while. Many of today's prospective home buyers have a wait-and-see attitude about the market. They are looking, but it will take a fabulous home offered at a great price before they'll commit to buy.
Sellers should also check out the temperature of the local market. Residential real estate is a localized business. Even if you live in a city where prices are down, that might not be the case in your neighborhood. The supply of homes for sale and demand for housing are critical variables, as is the local employment picture.
There is a common theme to the listings that sell well now. These listings look great, are in good condition, don't have incurable defects and are priced right for the market.
Being realistic about what to expect is half the battle.
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