|
||||||||||||||||||||||||||||||||||||||||||
November Home Improvement Tips
Energy Efficiency Tax Credits
Did you know that you can still get tax credits for energy efficient products or renewable energy for your home? Many of these tax credits are available through 2016. For example, you may be eligible for a $300 tax credit on an air conditioner, or $300 for a heat pump, or $500 for a roof, or $500 for insulation and the list goes on… There is a $500 lifetime limit per taxpayer on federal tax credits. Click here to learn more at the U.S. Department of Energy or visit www.EnergyStar.gov. Contact me to learn about buying a more Eco-Friendly home or how you can leverage these options to sell your home.
Housing Upgrades That Aren’t Worth It
When upgrading, home owners often seek features that aren’t only desirable to them but also what will add value to the home when it comes time for resale. Certainly, the annual Cost vs. Value survey can be one of your biggest assets in helping to advise clients. The annual survey by Remodeling Magazine, in conjunction with REALTOR Magazine, reveals specific remodeling projects that offer the biggest returns at resale.
But what is some more general advise to help guide home owners when it comes to upgrades? An article at Bankrate.com from 2008, we feel still offers some practical advice that applies today when determining how to upgrade a house and add value–not lose value. Here are a few general tips from the article about judging housing upgrades for resale that may or may not be worth the expense:
Too high maintenance. Many buyers aren’t looking for homes that require too much upkeep and maintenance (hence, part of the reason behind the small-home, downsizing movement). The article notes in-ground swimming pools as a prime example of a high-maintenance feature that may turnoff many buyers as they look at the upkeep of it as too costly and too much work. (See: Are Pools Worth the Expense?)
Over-the-top. Home owners don’t necessarily want to have the most upgraded home on the block. That’s because when they go to sell it, they likely won’t make all their money back on the upgrades if the home becomes overvalued for the neighborhood. So while granite countertops, stainless steel appliances and all the top finishes are always an attraction, home owners need to ask whether such features are too much for their neighborhood, particularly if the other homes just have moderately priced cabinets or features.
Too personal. Too much customized design choices, such as a Tuscan theme taken to the extreme, may turn off buyers or attract low-ball offers at times of resale because buyers who may have differing tastes see the decor and finishes as something they have to do-over. “Any time you deviate, no matter what the improvement is, from what is a fairly traditional, single-family house, you run the risk of improving in a fashion that will not lend itself to additional dollars,” Miami real estate pro Moe Veissi told Bankrate.com.
Read more tips at Bankrate.com, or share more of your upgrading tips here.
Reprinted from REALTOR® Magazine August 29, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved.
The Window Of Opportunity Is Open!
For some time now, real estate experts have been predicting that the historically low mortgage rates couldn’t last forever. Several factors are now coming together that could spell the end of super-low mortgage rates.
Proposed legislation on qualified residential mortgages will increase the costs to mortgage servicers by requiring a 5% capital hold back on every loan. This is intended to prevent mortgage companies from selling off the highest risk loans to Freddie and Fannie and keeping the low risk loans for their own portfolios. In addition, down payment requirements are proposed to rise to a minimum of 20% for all loans. These and other proposed changes would minimize the risk of mortgage portfolios for the investors of mortgage securities. Right now, the federal government supports over 90% of the mortgages and this legislation is targeted to bring back private investors to mortgage securities. The National Association of Realtors supports the need for reform but does not support these proposed changes.
The Fed is also ending buyback programs associated with QE2 (Quantitative Easing) in June which was artificially keeping rates low. Many analysts worry that long-term core and headline inflation will continue to rise due to the changing landscape of our world economy. Emerging markets like China, India and South America show increasing demand for food, energy and other products which will drive up costs. Inflation is bad for mortgage rates.
For buyers, this means that historically low mortgage rates and down payments under 20% may not last much longer. That makes NOW the time to buy. We have a great selection of properties at prices we have not seen in over 10 years. We have some of the lowest mortgage rates you may ever see and you can set that rate for 15 to 30 years. If you are looking to move up, invest or move to a simpler & less maintenance home, contact me quickly. The window of opportunity is open – don’t miss it!
Contact Me To Learn How We Can Help You Make Better Real Estate Decisions.
Quarterly Home Price Decline Slows
We have been seeing the home prices on Amelia Island, FL and the Fernandina Beach area decline slower in recent months as has the rest of the country. With interest rates and home prices the lowest in recent memory, it remains a great time to buy a home. Read more from the Council of Residential Specialists…
Why You Should Buy a Home Now
For several months now, I have been discussing the reasons you should buy a home now – 1) low interest rates and 2) low home prices. As pointed out by four leading sources there is another important reason, the Cost of the Home, which is not the price of the home. There are processes being put in motion that will increase the overall cost of buying a home as well as the ability to get a mortgage. See what The Wall Street Journal; CBS Money Watch; Forbes Magazine; and National Public Radio have to say. Read more…
Can You Make Money In Real Estate?
There are many opportunities to make money in real estate right now. Here are a few examples:
First Time Home Buyers – Prices are expected to remain low for the next few years in areas where we expect more short sales & foreclosures. BUT, mortgage rates WILL NOT remain low. We expect steadily increasing mortgage rates in 2011 and 2012. Just do the math and you will see that mortgage rates have a much larger impact on your property investment.
Move – Up Buyers – This is easy math. Again, you need to consider mortgage rates. Even if you lose money on your current home, the gain on your higher priced home will more than offset that loss. There are creative mortgage programs that can help you bridge the gaps. Move Up Buyers dropped significantly in 2008 and 2009. In the latter part of 2010 and this year, we are seeing those buyers move more aggressively in the market. They understand the window of opportunity and the cost of waiting due to increasing mortgage rates.
Investors For Income Properties – The future forecasts for rentals and leases is bright – especially in the lower end of the market. The more stringent qualifications for mortgages are driving many potential home buyers to rent. The opportunity to find income properties at low prices and set a low fixed mortgage rate will serve investors well.
Baby Boomers Moving To Less Maintenance Homes – This is the big opportunity that is being missed by thousands of baby boomers across our market. The big trend is towards a smaller, less maintenance, energy efficient home that is still very nice. There are lots of these types of homes available in all price ranges.
The big obstacle is overcoming the emotion of losing money on your current home. Even if you lose money on your current home, the cost of waiting is significant. The big factors are higher incremental carrying costs, ongoing maintenance and rising future home prices. If you wait approximately 6 years for the value of your current property top return, the price of your desired property will have also risen. I can show the math for your situation. The BIG FACTOR is rising mortgage rates. If rates rise 1 or 2 percentage points, that extra cost is much higher than any loss you may have incurred on your current property.
Contact Me To Learn How We Can Help You Make Better Real Estate Decisions. Lila Keim, Prudential Chaplin Williams, LilaKeim@TeamWerling.com
Mortgage Rates Lowered Again
From my very first message to you, I have been talking about what a great time it is to buy a new home. Today the Florida Realtors Association advised that interest rates have dropped for the 8th straight week. The average rate on a 30-year loan fell to 4.49% from 4.55%; 15-year fixed mortgages slipped to 3.68% from 3.74%. Read more…
Contact me today to visit homes in the Fernandina Beach and Amelia Island, FL areas while the inventory of homes is still very good and interest rates are remarkable.
How To Make An Offer On A Home That Will Be Accepted
If you are a buyer submitting an offer on a home in today’s market, there are a few things you should know. My friends at KCM Blog have done a great job outlining several tips. To this I would add:
Ask your Realtor to produce a comparative market analysis. This will provide you with the average sales price of homes in the area that have recently sold and compare to the home you plan to purchase. This will help you make a reasonable offer.
The binder amount you put down with the offer should be appropriate for the offer price. Ask your Realtor for advice on the amount that will place your offer in a strong position. This will be extremely important if multiple offers are received.
Getting pre-approval from your mortgage company is a must. Knowing the loan amount you qualify for will help you focus on homes that are in your price range and save you allot of time. Being pre-approved may also strengthen your offer position. If you have not found a mortgage company to work with, just ask your Realtor. They will be glad to provide you with a list of mortgage companies in the area. Read more ….
Renting Now More Expensive than Buying
It continues to amaze me that interest rates continue to go down as the economy seems to be turning and the cost of renting is rising as a result.
You know, in a recent article I wrote about the advantages of buying verses renting, I included a link to the NewYork Times cost estimator. It’s a very useful tool; you should check it out now if you haven’t yet.
Rental Costs Rise with Economy
by Florida Association of Realtors
Apartment rents are rising at their fastest pace in years as the U.S. economy creates jobs and spurs demand for rental housing.
Nationwide, rents started edging up last year after several years of little growth or even declines, market researcher Reis says. It predicts apartment rents will jump 4.3 percent this year, marking the biggest annual increase in four years. Read the full article>>
If you are renting it is time to consider purchasing a home before your rent goes up. Interest rates are at a 40 year low; home prices are still very low; and there are many loan programs available to match your situation.
Follow Lila on Twitter
Check my YouTube Channel
Check my Facebook Wall
Check my Linked In Profile
