Energy Efficiency Payoff

Ever wonder if re-calking the windows was worth the effort?

Buyers today are looking for energy efficient homes.  As the article for Al Clark's HomeAgain Newsletter points out, buyers are looking for new home builders that have low carbon footprint.   From expensive geo-thermal HVAC systems and high efficiency windows to reclaiming rain water for yard and garden watering are considered as "needs" by many buyers.

Energy efficiency is a minimum requirement!!!

If your home was built 20 years ago, you and I know it can't have the carbon foot print of a brand new home designed to minimize the environmental impact. Yet, anything you or I can do to reduce heat loss, add insulation or lower energy usage in any way, the buyer will seek that house over one that is wasting energy.

Read and apply!

ENERGY-EFFICIENCY FEATURES PAY OFF AT RESALE

Energy-Efficiency Features Pay Off At Resale Adding energy efficiency features like attic insulation or a highly efficient furnace may help you when you're ready to resell your home. According to the National Association of Realtors' Profile of Homebuyers and Sellers, nearly nine out of 10 recent homebuyers said heating and cooling costs were somewhat or very important when considering a home for purchase. "Going green has proven to be more than a trend," says NAR President Gary Thomas. "Many people now seek out this way of living and want homes and communities that are more resource efficient and sensitive to the environment." Often, the higher a home's energy efficiency, the more money the homeowner saves in monthly heating and cooling costs. NAR found 49% of buyers thought a home's heating and cooling costs were very important when considering a home for purchase, followed by energy-efficient appliances and lighting, each at 24%. Landscaping for energy conservation and environmentally friendly community features were less important but were still a factor in the minds of homebuyers. Nearly half of buyers found these features very or somewhat important. Regionally, buyers in the North and South placed a greater importance on heating and cooling costs, probably due to more extreme temperatures in those areas of the country. The survey also found buyers who purchased more recently built homes placed greater importance on environmentally friendly features than buyers who purchased older homes. Nearly 60% of buyers who bought homes built in 2011 said heating and cooling costs were very important, compared to less than 30% of buyers whose homes were built before 1910.

National Home Price Index

NATIONAL HOME PRICE INDEX UPDATED - COOL WIDGET!

Topic Summary: Every month the government publishes home price/value data on single  family homes. It's important to see the trend in your area over time and not be overly concerned with month over month data. Fire up this cool widget to see your home's value since you bought your home. Remember, real estate is all "local" issue and you may want to ask your HomeActions sponsor for a in-depth value of your home which many times will be more accurate. On the left, just click the email link! The Home Price Index is a broad measure of the movement of single-family house prices. It serves as a timely and accurate indicator of house price trends at various geographic levels.  The HPI is a measure designed to capture changes in the value of single-family houses in the U.S. as a whole, in various regions and in smaller areas. The HPI is published by the Federal Housing Finance Agency(FHFA) using data provided by Fannie Mae and Freddie Mac. Home Price Widget. This  widget will tell you how well you fared since you bought your home using the historical data that the government collects. Remember this is just an estimate and does not take into consideration any improvements you may have made. Video on using the widget Home Price Widget-Get It  HERE          After you click CALCULATE, a chart of your Home's appreciation will be delivered FULL ARTICLE SAVE ARTICLE EMAIL ME SHARE THIS Your Comments   Is this article valuable to you? Yes No Maybe Is this item worth sharing with other friends? Yes No Maybe Can you see this item helping you with homeownership? Yes No Maybe Courtesy of Al Clark's Home Action Newsletter!!!

Beautiful Landscape Improves Home Values

Charlottesville Garden Undergoes a Massive Transformation That Results in a Geometric Layout of Clipped Hedges 

 and a Terrace for Entertaining

WRITTEN BY CATRIONA TUDOR ERLER

PHOTOGRAPHY BY CATRIONA TUDOR ERLER

Green is the color of the garden created by Frank Byers and Jerry Northcutt. It’s a peaceful place where they can entertain graciously and where the geometry of shape and form creates a restful, visually pleasing composition. What looks so “right” today began eleven years ago as a blank slate. Dotted on the property around the newly built house were a few mature cedars, but otherwise the land was bare. “We started from the base,” says Byers. “We knew we wanted a large terrace for entertaining, but we had to wait several years for the fill dirt to settle.” 

 While they waited, they planted cherry trees around the perimeter of the planned terrace. The only suitable place for this patio was on the west side of the house. With that exposure, it would be particularly hot on summer afternoons and evenings when it was most likely to be used. The cherry trees were to provide much-needed shade for the patio-to-be. Planning ahead paid off: the young trees got a good start on their growth during the years before the brick terrace was laid, so they were ready for service when everything was in place.

 The terrace became the central hub of the design from which all else radiates. Gravel paths lead off opposite sides of the patio, one wrapping around the side of the house to the front driveway and parking court. The other forms a straight axis parallel to the house, drawing the eye down the length to a beautiful armillary raised on a plinth. Clipped boxwoods line both paths, which are backed by evenly spaced cherry trees.

Read the rest of the this wonderful transformation via the attached link!!!  Ideas are always great to have!

http://http://www.homebydesign.com/pages/article/HBD_APR_11_08/43859/index.html

Thoughts????

Buyers: Price vs Cost

Buyers have questions.  The key one today is:  "Is it the right time to buy?  Aren't homes getting cheaper by the day?"

                            

                                                                   by Kenneth Fisk

This is the question of the day.   Just today in about 15 different news cast and mortgage company blogs/newsletters.   This AP article is a sample:

LOS ANGELES -- Home prices were falling across most of America's largest cities in November, and average prices in eight major markets hit their lowest point since the housing bust.

The Standard & Poor's/Case-Shiller 20-city home price index released this week fell 1 percent in November from October. All but one city, San Diego, recorded monthly price declines. San Diego prices rose 0.1 percent.

Prices in eight cities sank to their lowest levels since prices peaked in 2006 and 2007: Atlanta, Charlotte, N.C., Las Vegas, Miami, Portland, Ore., Seattle, Tampa, Fla., and Detroit, which saw the largest drop at 2.7 percent from the previous month.

As of November, average home prices in Las Vegas have fallen 57.2 percent from their peak in August 2006 and are back to where they were in late 1999.

Millions of foreclosures are forcing prices down, and many people are holding off making purchases because they fear the market hasn't hit bottom yet.

"With these numbers, more analysts will be calling for a double-dip in home prices," said David Blitzer, chairman of S&P's Index Committee.

As a buyer, the focus needs to be on cost of home ownership.  Price is the amount one pays for an item while cost is value of an item versus quality and time.  For example, purchase a pair of jeans at discount for $10 and a well constructed pair of jeans for $45 at the same or different store.  The price is $35 cheaper but the cost could be much higher via shrinkage, deterioration, fading or fit.   Any of these items can result in subsequent purchases which in the long run equals a higher expense.

So it is with Buying a home.

If a home priced today at $200,000 at  4.5 % interest were to be reduced to $185,000 within 2 months would it be a better deal?   If the world stood still, perhaps.  But interest rates are moving up!  And there is a cost to indecision.

If the interest rate goes to 5.5%, the increase in payment though price is lower is $37 more per month or $13,300 over 30 years.   It could be much worse in two months if either price doesn't decrease and/or rates are higher.

Add the cost of delay if rent is $800 per month and the buyer is in a 25% tax bracket. The delay will cost the buyer:

                                        $1600 additional rent                                             + $  500 loss tax credit

                    Total            $2100                       

Add the changes in Mortgage guidelines.   If any of the banks move to the higher down payments(30%) or higher Private Mortgage Insurance(PMI) rates that are being discussed, a buyer will have to come up with more money for his down payment and possible higher payment via PMI.

So the Buyer must ask themselves:  Am I really worried about the PRICE or the Cost of my new home

Questions to Ask???

THINKING ABOUT BUYING OR SELLING A HOME???

You should be!   Prices are sharp and rates still remain awesome!!

But should you not have a friend that can refer you to a great Realtor.....or you just simply want to know what that Realtor is about, here are some key questions to ask!!!

Questions to Ask

         1.      Are you a Realtor?  If so, tell me what value 

           it brings to me.

2.      What percentage of your potential commission

     will go to advertising my property?   What  

     sources of advertising do you use and why?

3.       Where does your company rank among the

     Real Estate Companies in " YOUR AREA,

     CITY OR STATE"?

4.      What services does your company provide 

     that differentiates it from your competition?

5.      How many offices and agents are associate 

    with your firm? What advantage is that to me?

6.      Describe your Buyer Pool?  How will that

     impact the sale of my house?

7.  How do you ensure I get the best deal on my

     new house?

8.      What Relocation assistance can you provide?

9.      What assistance can you provide in me 

     preparing my house to sell?

10. How will I be assured that I am notified on a

      newly listed home??

11.      What specific experience do you have selling

       in this neighborhood?

12.       How do you:

1)      Ensure I don’t move until I’m ready to 

     move? 

2)      Ensure only qualified buyers see my house?

3)      Ensure the potential buyer has solid

     financing?

13.  How does the Standard Purchase Agreement

     work in my favor?

14.  Where do you rank in your company in sales

      and listings?  In "Your Area"?

15.  How many years have you been a Realtor? 

      Number of Circle of Excellence Awards or 

      other awards?

16. What training do you have that will help me

       specifically??

17.   Do you have letters of recommendation

       that you can provide?

Any real estate agent should welcome the chance to answer these questions.   I know I will answer these for any one in Hampton Roads!!!

Key Rent vs Buy Decisions

Rent vs Buy  dilemma has haunted 1st time home buyers forever.  Yet, for the uninitiated home buyer, this has to be an expected challenge.

At face value, buying a home is a better decision than renting one. With a home purchase, the buyer has a key opportunity to gain equity(value) as the first step of his future financial success.

 Anyone who has rented for more than 6 months quickly realize that they may as well as light a match to the rent check as they are gaining no value from the rent payment other than a roof over their head.  Typically, the home owner can expect to receive a 2 to 5% return on their investment in a home ever year.

Though the bubble of the early part of 2000s has cause this paradigm to be turned on its head for some people,  this by no means suggest that home ownership is worse than renting.  It just "aint' true".

 Key Advantages to Home Ownership:

• Initial "One Month" Grace Period between last rent payment of prior month and 1st Home Mortgage Payment
• Tax Benefit -- Mortgage Interest Deduction can lower taxes, increasing refunds significantly.
• Improved Credit Score
• Improve Ability to Qualify for other credit purchases....buy a house and the car dealership will darn near       give you a car!!!
• Improve the Community...home owners take care and improve a neighborhood
• Possible Equity Growth assist housing market through move-up purchases as lifestyle, job transfers/promotions and family needs permit

Yet, the prep for the renter to become a home owner is paramount!!!

• Clean up Credit Report; Raise credit score above 600(minimum)
• Take 1st Time Home Owners Class
• Learn about Mortgage Types, Down Payments and Qualifications
• Save...Save...Save  Downpayment and Closing Costs
• Investigate areas of town that interest the buyer and are within the purchasing power of the buyer
• Be employed in the same field, preferably the same employer, for a minimum of two years.  All mortgage applicants should meet this requirement.
• If Gift to be provided by Parents or another family member to make the home purchase, find out guidelines and stipulations now.
• Know that unlike renting, home ownership is a long term commitment.  Purchasing a home for one year prior to relocation out of town will be financially disastrous for most buyers...think 5-7 years.

Selecting a Realtor like me early in this process is invaluable for the 1st Time Home Buyer.  The Realtor can help the renter prepare to buy and guide him/her through the steps noted above.   Every buyer's needs are specific and the Realtor will ensure those needs are met!!!

 

New Loan Limits for 2011

With Christmas quickly approaching, thoughts of the New Year aren't far behind.  

Many of you may be planning to seek a new home in 2011.   With rates still below 5 % solidly(just closed a home today at 3.875% on a 30 year note!!!), it isn't a bad thought.

Though not all of you will purchase at the top on a mortgage loan limit, it is important to know what they are.  David Katz, Advance Mortgage, shared the update for 2011 below:
Following are the new mortgage limits for 2011:




                                             2011           2010

VA LOAN                         $417,000    $460,000

FHA LOAN                      $458,850     $458,850

Conventional Conforming $417,000 $417,000

Conventional High Balance $458,850 $458,850

The only change is the reduction in VA 100% financing from $460,000 to $417,000.

The Conventional High Balance (anything above $458,850 becomes a Jumbo loan) is good through September 30, 2011. This date could be extended by Congress.
 
Thanks, David!!
 
Any questions??

October Home Starts Disappointing

New Home starts predict the direct in home sales typically.  Optimism is shown when builders/investors begin new homes in anticipation of the future home buyer.

In the local Hampton Roads market, we have seen a slow down on builder/investor activity.  Though large home sites are moving through inventory well(Rose & Womble is seeing a good upswing in activity).  Yet, new developments are not happening.

In Spring 2011, some believe buyers demand for new homes will outstrip the new homes due to
the 5-9 month construction cycle for new homes.  Those of this mind, believe resale homes will
increase as numerous home buyers won't be able to wait for the new construction but will desire
to take advantage of competitive prices and low mortgage rates.

Click on the link for a global, nationwide view of  October New Home Starts in the U.S.

RISMEDIA October New Home Starts