7 Reasons to Own Your Home

 

  1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
  2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
  3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
  4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
  5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
  6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
  7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

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

Posted in Real Estate News | Tagged , , , , , , , , , , , , , , | Comments Off on 7 Reasons to Own Your Home

Fall Maintenance Checklist

You’ll be ready for winter’s worst and head off expensive repairs when you complete this checklist of 10 essential fall maintenance tasks.


1. Stow the mower.

If you’re not familiar with fuel stabilizer, you should be. If your mower sits for months with gas in its tank, the gas will slowly deteriorate, which can damage internal engine parts. Fuel stabilizer ($10 for a 10-ounce bottle) prevents gas from degrading.

Add stabilizer to your gasoline can to keep spare gas in good condition over the winter, and top off your mower tank with stabilized gas before you put it away for the winter. Run the mower for five minutes to make sure the stabilizer reaches the carburetor.

Another lawn mower care method is to run your mower dry before stowing it.

1. When the mower is cool, remove the spark plug and pour a capful of engine oil into the spark plug hole.

2. Pull the starter cord a couple of times to distribute the oil, which keeps pistons lubricated and ensures an easy start come spring.

3. Turn the mower on its side and clean out accumulated grass and gunk from the mower deck.

2. Don’t be a drip.

Remove garden hoses from outdoor faucets. Leaving hoses attached can cause water to back up in the faucets and in the plumbing pipes just inside your exterior walls. If freezing temps hit, that water could freeze, expand, and crack the faucet or pipes. Make this an early fall priority so a sudden cold snap doesn’t sneak up and cause damage.

Turn off any shutoff valves on water supply lines that lead to exterior faucets. That way, you’ll guard against minor leaks that may let water enter the faucet.

While you’re at it, drain garden hoses and store them in a shed or garage.

3. Put your sprinkler system to sleep.

Time to drain your irrigation system. Even buried irrigation lines can freeze, leading to busted pipes and broken sprinkler heads.

1. Turn off the water to the system at the main valve.

2. Shut off the automatic controller.

3. Open drain valves to remove water from the system.

4. Remove any above-ground sprinkler heads and shake the water out of them, then replace.

If you don’t have drain valves, then hire an irrigation pro to blow out the systems pipes with compressed air. A pro is worth the $75 to $150 charge to make sure the job is done right, and to ensure you don’t have busted pipes and sprinkler head repairs to make in the spring.

4. Seal the deal.

Grab a couple of tubes of color-matched exterior caulk ($5 for a 12-ounce tube) and make a journey around  your home’s exterior, sealing up cracks between trim and siding, around window and door frames, and where pipes and wires enter your house. Preventing moisture from getting inside your walls is one of the least expensive — and most important — of your fall maintenance jobs. You’ll also seal air leaks that waste energy.

Pick a nice day when temps are above 50 degrees so caulk flows easily.

5. De-gunk your gutters.

Clogged rain gutters can cause ice dams, which can lead to expensive repairs. After the leaves have fallen, clean your gutters to remove leaves, twigs, and gunk. Make sure gutters aren’t sagging and trapping water; tighten gutter hangers and downspout brackets. Replace any worn or damaged gutters and downspouts.

If you find colored grit from asphalt roof shingles in your gutters, beware. That sand-like grit helps protect shingles from the damaging ultraviolet rays of the sun. Look closely for other signs of roof damage (#5, below); it may be time for a roofing replacement.

Your downspouts should extend at least 5 feet away from your house to prevent foundation problems. If they don’t, add downspout extensions; $10 to $20 each.

6. Eyeball your roof.

If you have a steep roof or a multistory house, stay safe and use binoculars to inspect your roof from the ground.

Look for warning signs: Shingles that are buckled, cracked, or missing; rust spots on flashing. Any loose, damaged, or missing shingles should be replaced immediately.

Black algae stains are just cosmetic, but masses of moss and lichen could signal roofing that’s decayed underneath. Call in a pro roofer for a $50 to $100 eval.

A plumbing vent stack usually is flashed with a rubber collar — called a boot — that may crack or loosen over time. They’ll wear out before your roof does, so make sure they’re in good shape. A pro roofer will charge $75 to $150 to replace a boot, depending on how steep your roof is.

7. Direct your drainage.

Take a close look at the soil around your foundation and make sure it slopes away from your house at least 6 vertical inches over 10 feet. That way, you’ll keep water from soaking the soils around your foundation, which could lead to cracks and leaks.

Be sure soil doesn’t touch your siding.

8. Get your furnace in tune.

Schedule an appointment with a heating and cooling pro to get your heating system checked and tuned up for the coming heating season. You’ll pay $50 to $100 for a checkup.

An annual maintenance contract ensures you’re at the top of the list for checks and shaves 20% off the cost of a single visit.

Change your furnace filters, too. This is a job you should do every two months anyway, but if you haven’t, now’s the time. If your HVAC includes a built-in humidifier, make sure the contractor replaces that filter.

9. Prune plants.

Late fall is the best time to prune plants and trees — when the summer growth cycle is over. Your goal is to keep limbs and branches at least 3 feet from your house so moisture won’t drip onto roofing and siding, and to prevent damage to your house exterior during high winds.

For advice on pruning specific plants in your region, check with your state extension service.

10. Give your fireplace a once-over.

To make sure your fireplace is safe, grab a flashlight and look up inside your fireplace flue to make sure the damper opens and closes properly. Open the damper and look up into the flue to make sure it’s free of birds’ nests, branches and leaves, or other obstructions. You should see daylight at the top of the chimney.

Check the firebox for cracked or missing bricks and mortar. If you spot any damage, order a professional fireplace and chimney inspection. An inspection costs $79 to $500.

You fireplace flue should be cleaned of creosote buildup every other year. A professional chimney sweep will charge $150 to $250 for the service.

Read more: http://www.houselogic.com/home-advice/seasonal-maintenance/fall-checklist/#ixzz3mn1M93kJ

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

Posted in Real Estate News | Tagged , , , , , , , , , | Comments Off on Fall Maintenance Checklist

Fed Votes to Hold Off on Rate Hike, For Now

The Federal Reserve voted Thursday to keep interest rates unchanged, amid concerns over the global economy and financial market volatility. But Fed officials hinted that a modest policy tightening could occur later this year.

The Fed’s benchmark short-term rate has stayed near zero since December 2008, which has also helped to keep mortgage rates low ever since. Economists have been largely predicting for months that the Fed would likely raise rates in September, the first time in almost nine years.

“The outlook abroad appears to have become less certain,” Fed Chair Janet Yellen said in a news conference. A recent drop in U.S. stock prices as well as an increase in the value of the dollar already were showing signs of tightening financial market conditions, which was likely to slow economic growth in the U.S.

“In light of the heightened uncertainty abroad … the committee judged it appropriate to wait,” says Yellen. Fed officials continued to say they want to see “some further improvement in the labor market” and be “reasonably confident” that inflation will increase before they press ahead on rate increases.

Thirteen of 17 Fed policymakers say they foresee increasing rates at least once this year – down from 15 at the last meeting in June. Four Fed policymakers say rates should not be raised until at least 2016. The Fed will hold policy meetings again in October and December.

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

Posted in Real Estate News | Tagged , , , , , , , , | Comments Off on Fed Votes to Hold Off on Rate Hike, For Now

Owners Overvalue Homes by Larger Margin

Daily Real Estate News | Wednesday, September 09, 2015

For the seventh consecutive month, the gap has widened between what home owners say their home is worth compared to what appraisers say, according to Quicken Loans’ August 2015 Home Price Perception Index.

Home owner estimates now stand 2.65 percent higher than appraiser opinions, the largest gap in more than a year, according to the index.

“The perception trend of most of this year suggests home owners may be assuming that home values have been in a steady, linear path upward,” says Bob Walters, Quicken Loans chief economist. “In reality, home values have remained mostly flat this year, and this false assumption may be leaving home owners disappointed when their appraisals come in.”

The chart below gauge home owners’ versus appraisers’ value perceptions by metro.

Chart from Quicken Inc. detailing the gap between home owners' expectations and appraisers' opinions.

 

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

Posted in Real Estate News | Tagged , , , , , , , | Comments Off on Owners Overvalue Homes by Larger Margin

Distinctive Properties, Inc. Weekly Real Estate Statistics for 09-07-15

09-07-15 Weekly Real Estate Statistics

Posted in Real Estate News | Tagged , , , , | Comments Off on Distinctive Properties, Inc. Weekly Real Estate Statistics for 09-07-15

Mortgage Rates Edged Higher This Week

 Daily Real Estate News | Friday, September 04, 2015

The 30-year fixed-rate mortgage averaged 3.89 percent this week, up slightly from 3.84 percent last week, on the heels of global economic turmoil and a lack of new information on The Federal Reserve’s next rate meeting. Mortgage rates are still well below their levels of a year ago.

“The 30-year mortgage rate increased 5 basis points, but don’t read too much into that,” says Sean Becketti, chief economist at Freddie Mac. “The Fed took great pains at the Jackson Hole conference to keep all their options open and to avoid making too much — or too little — of the situation in China and the volatility in global equity markets. This Friday’s employment report is the last piece of significant, solid evidence the FOMC will have to consider before their September decision. The Street appears to be calling it a coin flip. There won’t be a clear direction for mortgage rates until the Fed makes its September decision, at the earliest.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 3:

  •     30-year fixed-rate mortgage averaged 3.89 percent with an average 0.6 point, up from last week when it averaged 3.84 percent. Last year, the 30-year rates averaged 4.10 percent.
  •     15-year fixed-rate mortgage averaged 3.09 percent with an average 0.6 point, up from last week from the 3.06 percent average. Last year, 15-year fixed-rate mortgages averaged 3.24 percent.
  •     5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.93 percent with an average 0.4 point, up from last week’s average of 2.90 percent. Last year, the 5-year adjustable-rate mortgage averaged 2.97 percent.
  •     1-year Treasury-indexed adjustable-rate mortgage averaged 2.62 percent with an average 0.3 point, unchanged from last week. Last year, the 1-year adjustable-rate mortgage averaged 2.40 percent.

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

Posted in Mortage/ Finance News | Tagged , , , , , , , | Comments Off on Mortgage Rates Edged Higher This Week

Arranging the Perfect At-Home Workspace

September 2015 | By Barbara Ballinger
The telecommuting population is growing: Some 30 million people work from home at least once a week, and that number is expected to increase by 63 percent in the next five years, according to a study by the Telework Research Network. At least 3 million Americans never step foot in an office outside their home.

But as our tools shrink in size, the “home office” concept is changing. Laptops can be as small as 10 inches and weigh just 2 1/2 pounds. Monitors have become shallower. And some traditional office equipment — such as copy and fax machines and large file cabinets — has receded into the background.

Once they’ve found the right space, help clients personalize it with this checklist of essentials for working productively. You may also want to suggest a professional organizer or designer or an online resource such as The True Cost Guide:

  • Work surface. How clients prefer to work will help determine the size of a work surface. If they like to spread out papers, a longer, wider area may be best. Many furnishings now have specialized designs to accommodate and organize wires and accessories, as well as designated spots for charging stations, says Dave Jacobs with BDI, a high-end entertainment and office manufacturer. Within the work area, Norris suggests setting up activity centers according to how often equipment is used. “If you use your printer every day, place it within easy reach. If it’s once a week or less, get it out of the way to make room for things used daily,” she says. It may help to think of the desk surface as a runway where papers take off and land, some sooner than others. Most of all, prioritize usefulness over aesthetics, she says.
  • Seating. Consider height, back support, armrests, and mobility for comfort and productivity. Some may want a second chair to stretch out in, read, or unwind, maybe with a footrest.
  • Lighting. Natural light is best but not always available, which is why adequate artificial light is so important. The activity (working on a computer versus reading a book), time of day, and user’s eyesight will dictate how much is needed, says Joe Rey-Barreau, director of education for the American Lighting Association. He favors efficient, long-lasting LEDs, a dimmer switch to control levels, and careful placement to cut glare.
  • Outlets. The more power the better, but it’s also important to consider the varied heights at which they’re needed. Also have extra power strips that can accommodate multiprong plugs. And advise buyers to be sure the home’s wiring is up to code and all outlets are grounded, especially for computers and external hard drives.
  • Storage. The paperless office is still an idealized state for many who rely on hard copies. “Most people don’t have adequate filing drawers for work and personal needs,” Norris says. But even the biggest fans of paper should have backup storage for computer files. While the cloud is popular, clients might consider an extra backup via external hard drive.
  • Odds and ends. All the little extras that companies stock in a supply room should be kept on hand to avoid mad dashes to the store. Tell clients to be sure they store supplies neatly, too, or they’ll waste time trying to locate essentials. Retailers like The Container Store have carved out a niche with an array of options to make organizing work-from-home space more fun.

A challenge for potential buyers is visualizing where they’ll set up shop when walking through a listing, since many homes don’t have dedicated office space. And even when an area looks promising, it may not prove ideal once parents or kids start their work, so flexibility is paramount.

Debbie Bolduc, owner of BizzBuzz Marketing Partners in Laconia, N.H., thought she had found the perfect private office — part of her detached garage. But she discovered it was inconvenient not having a bathroom or running water at hand. “I carried my computer back and forth at the end of the day, power supply cable and all,” she says. In winter, she gingerly negotiated icy steps with a coffee cup in hand. She eventually moved her office into her college-bound son’s vacated bedroom, which had a treasured feature beyond indoor plumbing proximity — a door. “Family members still pop in to chat, but I close the door to indicate when I’m not to be interrupted,” she says.

You can help buyers who work from home decide if a layout offers adequate possibilities based on the size of the work surface they envision, the seating needs, and storage systems, says former real estate sales associate Vicki Norris, founder of the professional organizing firm Restoring Order, based in Portland, Ore. But also advise them that finding the right space is less about square footage and more about how they like to hunker down, she says. “Even if the home has a basement that might work, not everyone wants to — or will — head down and use it,” she says. And where they situate an office may not be where they end up doing most of their work, says designer Marianne Cusato, author of The Just Right Home (Workman, 2015). “It often turns out to be two different places — one for keeping equipment and supplies and another where you do most of your actual work, spread out papers, or read and write in my case,” says Cusato.

Ask potential buyers these questions when they have a home-based work area on their wish list:

1. Do you need a private, dedicated space? If work requires quiet or confidentiality, they may want a door and location away from the main activity hub of the home. See if there’s an extra bedroom, which is what Corrie Shanahan did when she started her organizational effectiveness and leadership consulting practice, The Beara Group LLC, from her Washington, D.C. home. “I’m most productive when I can focus on the task at hand. I also wanted to keep confidential, sensitive files in locked file cabinets,” she says. Other possibilities include converting an attic or basement, depending on condition and costs. Either space may require better ventilation, lighting, insulation, flooring, and walls. A basement may also require significant waterproofing.

2. Can you share? With more couples working from home, finding available space for two can be challenging. Ebony Grimsley-Vaz, owner of a digital marketing and public relations company, and husband Ron Vaz, a photographer, decided to convert one of their Tampa, Fla., home’s three bedrooms into a shared office so they could keep the other extra bedroom for frequent guests. They set up small desks in opposite corners, found space for printers, and placed a futon in the center for sitting or taking a break. They also installed an outlet in their screened porch as a secondary workspace.

3. Do you prefer having others around? Working from home can feel isolating, and some get their adrenalin going by being smack in the center of activity. They can block out noise and remain focused without jumping into every conversation. In such a case, a corner of a family room, kitchen, dining room, or large hallway may work, as long as there’s enough space for all the necessary paraphernalia.

4. Is your bedroom a possibility? Modern bedrooms often are large enough to locate a desk, bookshelves, and other essentials. For children, this location may be more effective than for parents, who want to get away from work at night. To help kids, watch how they work rather than interviewing them, Norris says. “If they prefer being nomadic, offer them multiple places in the house,” she says.

But the right student workstation depends a great deal on age. For young children, it may mean a big table for crafts, projects, and experiments. Also, make sure there’s enough room for a child and parent to work together, as well as a place to keep supplies, says Norris. “Children should learn from an early age about keeping order and putting things away,” she says. When they get older, their work area will function more like an adult’s, with the need for document storage and a computer station. At any age, experts recommend turning off screens at least an hour before going to bed to give the brain a chance to unwind.

5. Do you need multiple options? While it’s best to have a designated headquarters as central command, some prefer more choices. Social worker and therapist Melissa McCool moved her office into her Encinitas, Calif., home after 14 years because it was more convenient for family life. Her husband designed a small office between the living and dining room, but she’s found she prefers to start work at the kitchen table before anyone else rises. Then, after the children are off to school, she and the family dog shift to her bedroom. “I know you’re not supposed to do that, but I find that I’ve been productive this way,” she says. Cusato recently moved into a new apartment in Indianapolis with an extra bedroom that became her official office. But she’s found she works mostly at the dining room table. “It’s a more comfortable, nicer room. If I’m writing, all I need is my computer and immediate stack of papers,” she says.

6. Do you have a back-up choice in case the first one doesn’t work? Buyers who aren’t ready to commit to a space may need a home that offers a few usable areas, so they can figure out what works best in practice. And a perk of working from home is workers don’t have to consult the boss to make that change. Author Jill Vanderwood, in Salt Lake City, moved her workspace from the family basement to the kitchen at her husband’s urging. But she became frustrated. “The TV was in the same room, the family was in and out, and I was so distracted that I wasn’t getting my work done. The kitchen chair also was uncomfortable, and having my papers all around didn’t allow room for the family to eat,” she says. She moved her office back to the quiet, roomier basement.

7. Do you want to be able to write this space off your taxes? You can help work-from-home clients mitigate the cost of upgrading their space by reminding them of the IRS’s rules for a home-office deduction, which applies if their main place of business is used exclusively for work, says Cynthia Turoski, a certified financial planner and public accountant with Bonadio Wealth Advisors in Albany, N.Y. “You can’t play video games at the desk and deduct it,” she says. This might also take the kitchen island off the table, so to speak. If this is an interest for them, suggest that they consult a tax professional.

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

Posted in Real Estate News | Tagged , , , , , , , , , , , , | Comments Off on Arranging the Perfect At-Home Workspace

Distinctive Real Estate Statistics for 08-31-15

08-31-15 Weekly Real Estate Statistics

Posted in Real Estate News | Comments Off on Distinctive Real Estate Statistics for 08-31-15

Pending Home Sales Inch Forward in July

WASHINGTON (August 27, 2015) — Pending home sales were mostly unchanged in July, but rose modestly for the sixth time in seven months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, marginally increased 0.5 percent to 110.9 in July from an upwardly revised 110.4 in June and is now 7.4 percent above July 2014 (103.3). The index has increased year-over-year for 11 consecutive months and is the third highest reading of 2015, behind April (111.6) and May (112.3).

Lawrence Yun, NAR chief economist, says the housing market began the second half of 2015 on a positive note, with pending sales slightly rising in July. “Led by a solid gain in the Northeast, contract activity in most of the country held steady last month, which bodes well for existing-sales to maintain their recent elevated pace to close out the summer,” he said. “While demand and sales continue to be stronger than earlier this year, Realtors® have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust.”

Looking ahead, with inventory shortages likely to persist into the fall, Yun expects the national median existing-home price to increase 6.3 percent in 2015 to $221,400. Yun forecasts total existing-home sales this year to increase 7.1 percent to around 5.29 million, about 25 percent below the prior peak set in 2005 (7.08 million).

“In light of the recent volatility in the stock market, it’s possible some prospective buyers may err on the side of caution and delay decisions, while others may view real estate as a more stable asset in the current environment,” said Yun. “Overall, the prospects for ongoing strength in the housing market remain intact for now. The U.S. economy is growing — albeit at a modest pace — and the labor market continues to add jobs.”

Adds Yun, “Uncertainty in the equity markets — even if the Fed raises short-term rates in September — could stabilize long-term mortgage rates and preserve affordability for buyers.”

The PHSI in the Northeast increased 4.0 percent to 98.8 in July, and is now 12.1 percent above a year ago. In the Midwest the index remained unchanged at 107.8 in July, and is now 5.7 percent above July 2014.

Pending home sales in the South increased slightly (0.6 percent) to an index of 124.2 in July and are now 6.5 percent above last July. The index in the West declined 1.4 percent in July to 103.0, but is still 7.5 percent above a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

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

Posted in Real Estate News | Tagged , , , , , , , , , , , , , , , | Comments Off on Pending Home Sales Inch Forward in July