Home Owners Should Feel Twice as Rich

Daily Real Estate News | Wednesday, November 02, 2016

Thanks to rising home prices, home owners are getting richer, a new study says. The amount of homeowner equity has doubled in the last five years, according to CoreLogic’s latest Home Price Index and HPI Forecast for September 2016.

“Home equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” says Frank Nothaft, chief economist for CoreLogic. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per home owner, but with wide geographic variation.”

Home owners in several markets across California, Washington, Oregon, Colorado, and Utah are seeing some of the most growth, with double-digit home price gains.

Home owners nationwide likely are to see even more equity in the coming months, too.

“Home-price growth creates wealth for owners with home equity,” says Anand Nallathambi, president and CEO of CoreLogic. “A 5 percent rise in home values over the next year would create another $1 trillion in home equity wealth for home owners.”

Source: CoreLogic and “Home Owners Twice as House Rich as Five Years Ago,” CNBC (Nov. 1, 2016)

“Copyright National Association of REALTORS®. Reprinted with permission.”

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Parents With Kids Really Need Your Help

Daily Real Estate News | Tuesday, November 01, 2016

Families moving with children can face a lot of complications and time pressures during a real estate transaction.

Fifty-three percent of families with children under the age of 18 report that the most difficult task in the home search process is finding the right property in the right location, according to the National Association of REALTORS®’ Home Buyers and Sellers survey. Many families need to factor in the quality of schools and activity offerings for their children as well as finding a home with suitable space and in proximity to their job too.

Families with children under the age of 18 often times have a great urgency to sell. Twenty-four percent of sellers had to sell their home quickly while 46 percent had to sell their home in a somewhat urgent or reasonable timeframe. Many families want to get settled in before the new school season begins, notes Tim Beary, Arlington Board of REALTORS® president, in a recent column for the Dallas-Fort Worth’s Star-Telegram.

What’s more, many families are searching for more space. Twenty-nine percent of families with children under the age of 18 say their main reason for moving is to find a larger home. Finding a good neighborhood is another important factor. Fifty percent of families cited the quality of the school district as a reason for buying their home, and 43 percent decided upon their home because of its convenience to schools.

The typical home of families with children under the age of 18 is a 2,100-square-foot, four-bedroom, two-full bathroom single-family home.

Learn some ways you can help parents with kids in the process: 16 Ways to Get Kids on Your Side

Source: “Moving With Kids: Families Rely on REALTORS®,” Star-Telegram (Oct. 30, 2016)

“Copyright National Association of REALTORS®. Reprinted with permission.”

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When Home Additions Hurt and Help Resale

Daily Real Estate News | Wednesday, October 26, 2016

Your clients shouldn’t automatically assume that adding extra square footage to their home will raise its value at resale. In the case of a 1917 Cotswold-style Craftsman in Pasadena, Calif., the owner actually hurt her chances of a sale with an 800-square-foot addition. The addition didn’t take into account the historical details of the home, and its protruding window didn’t match the home’s thatch-like roofline, brick chimney, and “whimsical wood details,” The Wall Street Journal reports.

“It was just all wrong,” listing agent Matt Berkley of Crosby Doe Associates in Pasadena told the newspaper. Home owner Annie Yan paid $30,000 to demolish the addition and sought to restore the home back to its original state. She is now selling the home for $4.78 million — more than $600,000 than what she purchased it for in 2014.

Aside from considering the downside of additions, your clients should also know that restoring a home to its original size can bring some tax breaks. In Yan’s case, the city granted a tax break on the property through a preservation program known as the Mills Act. The home’s property tax was reduced from $50,000 a year to $13,000, and that tax break will remain in place for at least 10 years.

Bret Hirsh, who owns a four-story, 3,900-square-foot townhouse in New York’s West Village, is trimming about 200 square feet from the building. He is reducing the size of an upstairs dining room to create a double-height area in the downstairs kitchen and great room. In markets where every square foot counts, his project could add $800,000 in resale value, considering prices in his neighborhood are about $4,000 a square foot.

Many buyers complain that brownstones in Hirsh’s neighborhood don’t get enough natural light. In these cases, remodeling projects that sacrifice floor space for more light can attract more buyers, says Jim St. Andre of CORE Real Estate. He notes that one of the priciest sales in the West Village was an $18.96 million townhouse in 2012 that had undergone a similar remodel to Hirsh’s.

“We don’t live and die by square footage,” says real estate appraiser Jonathan Miller. However, removing too much square footage may hamper resale value, but Miller notes most projects are replacing square footage with something more appealing, such as the addition of outdoor space.

Source: “When to Subtract a Home Addition,” The Wall Street Journal (Oct. 20, 2016)

“Copyright National Association of REALTORS®. Reprinted with permission.”

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9 Mood-Lifting Ideas for a Cozier Home this Winter

Banish the winter blahs for a radically better outlook this season.

It’s been a freakin’ long day at work and you just want to get home and relax on your deck. But nooooooo, it’s already dark outside and that chill in the air is telling you it’s time to pull out your parka. OK, inside it is. But then it hits you: Indoors feels more like a dank cave than a welcoming oasis. Depressing.

You don’t have to succumb to the winter blahs. Just implement a few of these ideas, and you’ll be warm and comfy inside until winter’s worst blows over.

1. Clean Your Light Fixtures and Bulbs

Your home will appear 30% brighter — without turning on more lights.

2. Keep the Cold Air Out

It’s not just window and door leaks killing your cozy vibe. Don’t forget to plug stealthy gaps around recessed lights, electrical boxes, and wall outlets. Use a lit incense stick or scented candle to hunt down drafty spots while leaving behind a cozy scent.

3. Dig Out Your Slow Cooker

Nothing says warm and cozy like opening the door to an enticing aroma that makes your mouth water. Even better, slow cookers are more energy efficient than electric ovens, typically using less energy than a light bulb.

4. Bring Home Some Nature

Many indoor plants, like golden pothos and gerbera daisies, are particularly adept at sucking up nasty VOCs — the vapors emitted from household cleaners, paints, and dry cleaning. And since plants increase humidity levels, they help decrease household dust.

5. Vacuum With Your Thermostat Fan On

Run the fan to help filter dust that gets kicked up while cleaning. Leave it on for about 15 minutes after you finish vacuuming, and switch it back to “auto” afterward. HVAC blowers aren’t intended to run all the time.

6. Change the Furnace / AC Filter

Change your filter every couple months (monthly if you have pets) to prevent excess dust and allergens from circulating. All that bad air just gets you down.

7. Let the Sunlight In (It’ll Make You Happy)

Clean your windows. Sparkling glass not only lets more natural light into your home, it’s a feel-good task, according to a survey by the American Clean Institute. When ACI asked consumers what clean surfaces make them happy, “gleaming windows” made the top five above a “spotless sink.” Besides all that, daylighting is a great mood booster.

8. Put Your Window Screens Into Hibernation

They trap dirt and can make your home appear darker inside and out. It’s a good curb appeal booster, too.

9. Add an Interior Window

A dark room with no sunlight will look and feel warmer if you paint the walls in reds, oranges, or yellows. dark room that’s next to a sun-drenched space, putting a window in the shared wall will let the natural light in.

“Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

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First-Time Buyers Behind Latest Housing Gains

Daily Real Estate News | Thursday, October 20, 2016

Existing-home sales rebounded in September as first-time home buyers flooded the market. Sales to first-time home buyers topped a 34 percent share in September, the highest in more than four years, according to the National Association of REALTORS®.

Total existing-home sales – which are completed transactions for single-family homes, townhomes, condos, and co-ops – rose 3.2 percent in September month-over-month to a seasonally adjusted annual rate of 5.47 million, NAR reported Thursday. Sales are now at the highest pace since June (5.57 million) and are 0.6 percent higher than a year ago (5.44 million). All major regions across the U.S. saw a pick up in closings last month, NAR reports.

Home Sales By Region

Here’s a closer look at how existing-home sales fared across the country in September:

  • Northeast: existing-home sales rose 5.7 percent to an annual rate of 740,000, unchanged from a year ago. Median price: $261,600, up 2.1 percent from a year ago.
  • Midwest: existing-home sales increased 3.9 percent to an annual rate of 1.32 million in September, and are now 2.3 percent above a year ago. Median price: $184,500, up 5.9 percent from a year ago.
  • South: existing-home sales inched up 0.9 percent to an annual rate of 2.16 million, but remain 0.9 percent below a year ago. Median price: $204,000, up 6.6 percent from a year ago.
  • West: existing-home sales surged 5 percent to an annual rate of 1.25 million in September, and are now 1.6 percent higher than a year ago. Median price: $345,400, up 8.1 percent from a year ago.

Source: National Association of REALTORS®

First-time home buyers were behind most of that sales momentum last month, NAR reports.

“There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring,” says Lawrence Yun, NAR’s chief economist. “The market fundamentals – primarily consistent job gains and affordable mortgage rates – are there for the steady rise in first-timers needed to finally reverse the decline in the home ownership rate.”

Still, the limited number of homes for sale on the market could prove a big roadblock.

“The home search over the past several months for a lot of prospective buyers, and especially for first-time buyers, took longer than usual because of the competition for the minimal amount of homes for sale,” Yun adds. “Most families and move-up buyers look to close before the new school year starts. Their diminishing presence from the market towards the end of summer created more opportunities for aspiring first-time home owners to buy last month.”

5 Key Housing Stats

Here are a few key housing indicators from NAR’s September housing report:

1. Home prices: The median existing-home price for all housing types last month was $234,200, a 5.6 percent year-over-year increase.

2. Days on the market: Forty-four percent of homes sold in September were on the market for less than a month. Properties stayed on the market an average of 39 days last month, down from 49 days a year ago. Short sales spent the longest time on the market at a median of 118 days; foreclosures sold in 67 days; and non-distressed homes sold in 38 days.

3. Distressed sales: Foreclosures and short sales dropped to a new low in September, comprising 4 percent of sales. That is down from 7 percent a year ago. In September, 3 percent of sales were foreclosures and 1 percent were short sales. On average, foreclosures sold for a discount of 15 percent below market value while short sales were discounted 11 percent.

4. Cash sales: All-cash sales comprised 21 percent of transactions last month, down from 24 percent a year ago. Individual investors make up the biggest bulk of cash sales. They purchased 14 percent of homes in September, up from 13 percent a year ago.

5. Inventories: More housing stock was added to the market by the end of September, up 1.5 percent month-over-month, but inventories are still 6.8 percent lower than a year ago. Unsold inventory dropped to a 4.5-month supply at the current sales pace.

“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” Yun says. “Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”

Source: National Association of REALTORS®

“Copyright National Association of REALTORS®. Reprinted with permission.”

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How to Reinvent a Room to Attract Buyers

By Patti Stern, PJ & Company Staging and Interior Decorating

Thinking about remodeling but not sure it will pay off when it comes time to sell? According to Remodeling Magazine’s Cost vs. Value Report, most room remodels and additions may only recoup up to 80 percent of the cost. And since time and money is something prospective sellers are cautious about wasting, we put together the following list of practical ways to attract buyers and increase resale value without drastically changing your home’s footprint.

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Kitchen staged by PJ & Company Staging and Interior Decorating

Transform The Kitchen With Simple Upgrades

The most economical way to breathe new life into the kitchen is by first repainting walls with a fresh coat of neutral paint. Next, consider refreshing outdated cabinet fronts (as shown in photo above) with bright white paint along with brushed nickel or chrome hardware in modern styling. Upgrading flooring and countertops is also worth considering since there are many options available with a range of price points that are both stylish and functional.

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Master bath staged by PJ & Company Staging and Interior Decorating

Give The Bathroom A Facelift

It still goes without saying that outdated bathrooms are simply a turn-off to millenials. Even the smallest bathrooms can look more attractive with the right finishing touches. The key features that will sell a bathroom are updated or refinished cabinets and countertops, wall color, tile, faucets, toilet, and lighting in modern styles. For the bathroom featured above, we covered the light wood vanities that were in decent condition with dark espresso paint to add instant elegant style when paired with updated faucets and lighting.

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Bedroom staged by PJ & Company Staging and Interior Decorating

Convert the Extra Room Back To Bedroom

It’s common for many empty nesters to repurpose a spare bedroom into a more practical space such as an office, study or game room once the kids go off to college. But when it comes time to sell, showcase a room with its original purpose to appeal to young, prospective buyers since they are always on the look out for more bedrooms for the kids. In the room above, our team turned the hobby room back into an inviting bedroom setting by removing clutter and replacing with twin beds with colorful comforters and pillows, new fixtures, and simple wall art.

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Basement/family room and office nook staged by PJ & Company Staging and Interior Decorating

Create Usable Space In The Basement

Convert an empty or junk-filled basement into a room with a purpose. A game room, family room, in-law suite, office nook, or exercise room are all great examples that will appeal to buyers looking for extra living space. Once clutter is removed, carpet cleaned and walls repainted, add simple furniture such as a desk, chair, sofas and accessories that create a lifestyle that buyers can envision for themselves. Consider adding extra closet space or using a hidden area under the stairs for more storage.

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Mudroom remodel and decorating by PJ & Company Staging and Interior Decorating

Add Style and Function To The Back Entry

Create a mudroom that will be useful for families with young kids and pets year round. In the photo above, we transformed our client’s back entry with built-in storage and seating surrounded by bead board for a stylish finishing touch.

“Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission”

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Do Your Buyers Think About Quality of Life?

October 2016 | By Melissa Dittmann Tracey

They may judge homes based on superficial elements when they should be going deeper than that. One real estate agent encourages buyers to look at factors of a property that impact their mental, physical, and emotional well-being.

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Which Architecture Style Is Worth the Most?

Daily Real Estate News | Monday, October 10, 2016

Luxury builders have favored the Mediterranean and Tuscan style of homes in recent years, and it’s no wonder: The median list price of that style of home is $749,900.

However, the public’s love with this style of home may be waning. For the past four years, the list price of Mediterranean homes has stalled. On the other hand, more modern home styles are seeing quicker appreciation, surging 37 percent since 2012, according to an analysis by realtor.com®.

“Modern homes are built to be more energy-efficient, and modern-looking,” says Tim Cannan, president of PreservationDirectory.com. “It’s easier to heat and cool them, and they’re cheaper to repair as opposed to Mediterranean or Spanish style – those red clay roofs could wind up costing much more. So it’s really the size and scope that determines what people can afford.”

So you know the prices, but which home style is the most popular in the U.S.?

The ranch home is the most popular real estate style in 29 of the 50 states, according to realtor.com®’s analysis. Ranch homes tend to be able to be built quickly and inexpensively compared to some other styles. Its popularity soared in suburbia with the rise of the automobile culture in the 1960s, realtor.com® reports.

Realtor.com® describes the second most popular architecture style in the U.S. as more “traditional,” which encompasses several classic designs defined by simple rooflines and symmetrical windows.

A closer look reveals quite a few regional architecture differences. For example, in the Northeast, colonial homes – known for their rectangular or box-shaped styles – remain popular. Victorians, on the other hand, are popular in the East Coast and into the Midwest. These homes have intricate moldings and ornate shapes carved into beams, along with pitched roofs, textured shingles, and long front porches.

You’ll find plenty of Cape Cod homes in New England, and rustic cabins nestled in the Appalachian, Rocky, and Sierra Nevada mountain ranges.

Differences arise by a state level too. For example, realtor.com® notes that in Illinois, Georgian home styles are popular while in California the Spanish style rules.

Source: “A Nation United – and Divided – by Our Homes’ Architectural Styles,” realtor.com® (Oct. 10, 2016)

“Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission”

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