Own Home Style .com » Home Value

Home Values in Freefall: The Bright Side of the Housing Collapse

Webmaster — Sat, 19 Jun 2010 13:49:56 +0000

Home Values in Freefall: The Bright Side of the Housing Collapse

The Bright Side of the Housing Collapse….You can buy a home for as little as $40 (with payments as low as $0.19 per month!!! if financed)

NEW YORK (Reuters) One in five U.S. homeowners with mortgages owe more to their lenders than their properties are worth, and the rate will increase as housing values drop in states that have so far avoided the worst of the crisis, a new study shows.About 8.31 million properties had negative equity at the end of 2008, up 9 percent from 7.63 million at the end of September, according to the study, released Wednesday by First American CoreLogic. The percentage of “underwater” borrowers rose to 20 percent from 18 percent.

“The economic slowdown is broadening,” said Sherrill Shaffer, a banking professor at the University of Wyoming at Laramie and a former Federal Reserve official. “As more people lose jobs, it will be more difficult to sustain the levels of pricing and home ownership, and that is a big factor driving down housing prices in more parts of the country.”

Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio remained the most stressed states, with 62 percent of underwater borrowers and just 41 percent of mortgages.

“Even I continue to be surprised at the tentacles of this financial and economic debacle,” said Robert MacIntosh, chief economist at Eaton Vance Management in Boston. “More people are being laid off, resulting in reduced income and therefore less consumption. That leaves fewer people with money to buy homes, and the mentality is that people believe they should wait six months rather than buy now. Less demand means falling prices.”

Roughly 68 percent of U.S. adults own their own homes, and about two-thirds of these have mortgages. Many economists expect the nation’s unemployment rate to rise above 9 percent before the recession ends, up from January’s 7.6 percent.

Here is the video on Youtube:

Best Kitchen and Family Room Floors for Home Re-Sale Value.

Webmaster — Sat, 24 Apr 2010 11:05:54 +0000

Best Kitchen and Family Room Floors for Home Re-Sale Value.

The kitchen is the most important room in your home for potential home buyers, and is important that the kitchen be appealing if you want to sell your home quickly. Kay Barchetti of Coldwell Banker Real Estate explains the importance of choosing the right flooring for your kitchen and family room or great room to increase the resale value of your home and shorten its time on the market.

Here is the video on Youtube:

Economy Hurting Young Workers, Home Prices Expected to Drop 11.3%

Webmaster — Sat, 24 Oct 2009 17:42:00 +0000

If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.

Here is the video on Youtube:

Home Sauna Good for You

Own Homestyle — Fri, 27 Jun 2008 05:58:41 +0000

While saunas have been around for a long time, only recently have Americans re-discovered the health benefits of saunas in spas, retreats, and eventually, at home. Many benefits can come from regular use of a sauna, i.e.

Health Benefits

Helps to relieve stress, tension, and fatigue
Increases resistance to illness such as the common cold/hyper-thermia boosts immune response
Increases metabolism & promotes weight loss by burning 300 or more calories in 30 minutes
Improves circulation and promotes cardiovascular wellbeing
Helpful skin care: adjunct in treating common skin ailments such as acne, eczema, psoriasis and cellulite
Helps with Pain relief related to illnesses like arthritis, fibromyalgia, vascular disease, chronic pain, sports injury
Instrumental in the healing process of physical injuries
Useful in relieving allergic symptoms and sinus congestion
Aids insomniacs by promoting sleep
May be useful in drug rehabilitation and detoxification as toxins and impurities are expelled in perspiration (eg. lead and mercury poisoning)
May be beneficial to kidney functions

Other Benefits

Increases property value
Low maintenance requirement

Which Type of Sauna Is Best for You: Wet or Dry?

The more standard US sauna for home and spa uses steam from water over hot rocks. However, up-to-date sauna technology ~ which is behind today’s portable sauna ~ uses non-steam heat. Both ceramic sauna heaters and electrical sauna heaters supply dry heat without steam. But even today, the traditional wet heat sauna kits are still available and popular.

The health benefits are different for each type of sauna ~ which is probably the more important consideration.
E.g. infrared saunas have excellent detoxification properties. Infrared saunas take the detoxifying load off your liver and kidneys by the direct elimination of toxins through the skin. Two to three times more sweat is produced in the far infrared sauna than is possible in traditional hot air saunas. Greater detoxification of heavy metals is achieved, including: lead, mercury, aluminum, cadmium, and fat-soluble toxins.

On the other hand, a steam room is said be particularly helpful for people with breathing troubles. So, the health benefits you are after should indicate which type of sauna you will enjoy most in your home for your own use.

If however you want to install a sauna to increase your property value or at least to gain an edge over competing properties, then perhaps it is useful to know that compared to a steam sauna room, it is easier to use an infrared sauna or other dry sauna at home. You can use a mobile unit and less modifications are required to your home to accommodate it. However, ease of installation should not be your main consideration when purchasing a sauna for your own personal use, of course.

Disclaimer by author & ownhomestyle.com: check with your own health care provider/doctor to see if sauna therapy is suitable for you and if there are any personal restrictions you should be aware of.

Still More Things To Consider Before Your Real Estate Closing

Own Homestyle — Sat, 07 Jun 2008 06:14:49 +0000

First, see an attorney before you sign an agreement. It is much easier to negotiate a deal or avoid a disaster before signing than it is after. Before signing an agreement for the purchase or sale of real estate, there are many things to consider. These are a few of them:

Operational systems

For the buyer’s protection, the seller should warrant that everything is in good working order, such as plumbing, air conditioning, heating and any appliances that are to be left in the home after the sale.

Restrictions

Are there any previous restrictions on record as to the use of the property by private covenants or agreements, such as home owners associations? or deed restrictions? As the buyer, you need to know what you can and cannot do to the property.

Building requirements

Many times properties are restricted by what, if any, building can be done on the property. Prior agreements, or covenants or municipal restrictions may apply to the property and it is buyer’s right to know these. There may be requirements that a new buildings have a minimum square footage, minimum set backs distances from roads or streets or boundary lines. Some places restrict the erection of fences or hedges along edges of properties.

Damage

A provision should be made as to who is responsible for any damage or casualty that occurs until the agreement is signed at closing.

Contingencies

Many things are considered contingencies: If my house sells… if my loan is approved… if my company transfer is approved. These should be specified in the contract so that if something does or does not occur as stipulated, either party may terminate the contract.

Lead Paint

Federal law requires that the seller of any house build prior to 1979 must give the buyer disclosure regarding lead-based paint. Failure to provide this notice may mean the buyer can terminate the contract

Pro-rations

Utilities, taxes, rent, special assessments are all items that are subject to pro-ration at closing. For example, if the closing is in the middle of the month on an apartment building, chances that are the tenants have already paid rent for the entire month and the buyer would be entitle to a portion of the proceeds.

Mold

Is there mold in the house? Is there a water problem in the basement or the crawl space? Is there a leak in the roof? Is the plumbing sound? Ask these questions before you buy.

Chemical contamination

Has the property ever been used for chemical production? For example, was it ever a meth house? Because of the possibility of chemical contamination, the buyer will want to know this.

Water rights

If the property is undeveloped, make certain you have water to your property.

These are only a few of the things you will need to look into before you sign an agreement. For more information, call your attorney or visit the folks at Nancy Chandler Associates, REALTORS, licensed in Norfolk, Virginia and they can put you on the correct path to buying or selling your property.

By Karen Vertigan Pope

Karen Vertigan Pope writes for Ciniva Systems, an award winning Virginia web design company. Ciniva specializes in web design and SEO. Ms. Vertigan Pope is an SEO Specialist with Ciniva. Ciniva Systems is in charge of SEO for Nancy Chandler Associates.

Fannie Mae Announces Single National Down Payment Policy

Own Homestyle — Sat, 17 May 2008 18:20:51 +0000

Replaces Policy Regarding Markets Where Home Prices are Declining.

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced yesterday a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter® (DU®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU, in all geographic locations in the United States.

The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining.

“As another part of our ‘Keys to RecoveryTM’ initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions,” Marianne Sullivan, Senior Vice President, Single-Family Credit Policy and Risk Management, said. “This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover.”

The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over the summer to accommodate the new national policy.

“We are able to adopt this new, national down payment requirement, even in markets where home prices are declining, because our new automated underwriting risk assessment model DU Version 7.0 will limit risk layering and assess each loan more precisely,” Sullivan added. “At the same time, we believe that equity matters, especially in this market. Down payments are a critical success factor in homeownership — and responsible lending is good business.”

Since the housing correction began, Fannie Mae has expanded its mortgage guaranty business to serve the market’s urgent need for stability, liquidity and affordability. The company also undertook steps to help protect borrowers, manage the increased credit risk in the market, and fortify the company’s capital position.

Among these steps, the company has continued to assess and establish new pricing, eligibility and underwriting criteria for its business that more accurately reflect the current risks in the housing market and guard against the potential for foreclosure. These changes have been incorporated into DU and have included adjustments to credit risk assessment, loan-to-value ratios and down payment requirements, among other factors.

Among the changes in response to market conditions, in December 2007 Fannie Mae adopted a “Maximum Financing in Declining Markets Policy” that restricted the loan-to-value ratios on properties in markets where home prices are declining, essentially requiring higher down payments in these markets. The new single national down payment policy announced today will supersede that policy.

Fannie Mae Senior Vice President Jeff Hayward stressed the company’s commitment to special affordable lending programs to support homeownership for families of modest means. “We are stepping up to provide more liquidity and affordability to some of the most distressed communities while also seeking at least a 3 percent down payment investment through our Desktop Underwriter system from borrowers to help ensure their success.”

Fannie Mae will continue to provide support for homebuyers that need down payment assistance, and will continue to allow loans with Community Seconds® up to a maximum 105 percent combined loan-to-value ratio. Community Seconds allow a borrower to obtain a second-lien mortgage to help cover down payment and closing costs, with funding typically provided by a state or local housing agency; an employer; or a nonprofit organization. Fannie Mae also offers MyCommunityMortgage® and Flex mortgage products, which permit down payment assistance programs in the form of gifts and grants.

“We recognize that down payment assistance programs remain a viable tool for borrowers who can afford a mortgage long term, but might need a little help getting started,” Sullivan said.

As part of its “Keys to Recovery” initiative, Fannie Mae is expanding its partnership with the National Council of State Housing Agencies. The company will provide up to $10 billion in financing to help Housing Finance Authorities (HFA) serve first-time homebuyers of modest means. In some cases, Fannie Mae will purchase HFA mortgages that have greater than 97 percent loan-to-value ratios.

The first “Keys to Recovery” initiative that Fannie Mae announced on May 6, 2008 also includes: streamlined refinancing for Fannie Mae borrowers whose mortgage balances exceed the value of their homes; improved pricing for jumbo-conforming mortgages to help borrowers in high-cost areas; and a neighborhood stabilization initiative with the Center for Community Self-Help for targeted areas with high home foreclosures.

source: Fannie Mae

Using Housing Grants

Own Homestyle — Tue, 22 Apr 2008 03:58:55 +0000

The home is the place to be. This is why most of us want to build the perfect nest. However, circumstances do not always favor us. Financial situation can be a big hindrance. Still, there is a solution. Get Housing Grants

Grants in general are something that are given to you for free. Housing grants are given to achieve more specific goals, more than just bestowing housing money upon the recipients. They have the purpose of providing assistance to individuals and families to meet housing needs. Often the household is suffering economically.

Get help to improve your home. Most localities aim to improve the quality of the housing in their communities. Different local authorities can provide help for home improvement in many ways. These may be housing grants that you could apply for. If you get approved, you can get money from housing grants to use for improving your home.

Housing grants in the form of home repair grants are provided to maintain the good quality of housing and assist especially low-income households. Housing grants can also be availed by those who need to improve efficiency inside the home. Renovation housing grants are also available to those whose homes need a complete overhaul.

Tips to Getting Housing Grants

1. Investigate which is best for you. Different local authorities and agencies that provide housing grants have different rules. Some will require particular conditions. Some will look into your backgrounds and details. Some will simply give you a helping hand.

2. Get the help you need. They can also differ in the kind of help they extend. Aside from the housing grants, they can also provide labor and tools. It is best to know what help is available for you. Contact an agency or firm in your locality. Ask what help they can extend to you in improving housing.

3. Determine ahead if you are qualified for a particular type of housing grants. This will keep you from wasting your time and resources.

4. Follow the rules provided in the grant. Read cautiously your own copy of the terms and conditions of the agreement.

5. Be informed of the responsibilities you will shoulder with regard to the housing grants.

6. If they will also provide services, make sure that you are there when they are carried out. This is to make sure you are in agreement with the changes being made.

Buying Your First Home

Own Homestyle — Sun, 20 Apr 2008 00:09:07 +0000

In ‘Buying your first house’ Linda Stern at Reuters.com writes:

“Note to young renters: It’s a very good time to start thinking about buying your first house.

Sure, the housing market is in the dumpster, and houses are still expensive — up almost a third from their prices at the beginning of the decade, with some markets considerably higher than that. Throw in reports of killer mortgages and rampant foreclosures, and it may seem scary to take the leap. But over the long term, owning the home you live in is a great investment. It’s one that will bring you tax breaks, financial gains, perhaps a little yard, and considerable joy … if it’s done right.”

Take your time.
Check your credit score at myfico.com.
Prequalify for a mortgage.
Check out mortgages backed by the Federal Housing Authority.
Work with a buyer’s agent who only represents you, not the seller.
Get something back from the seller, but don’t expect a complete steal.
Think single-family house or duplex.
Don’t buy a home without getting a home inspection.
Don’t overreach.

Read the whole article at Reuters.com

Federal Budget Cuts Will Kill Federal Spending and Hurt the Housing Market in the DC Suburbs

Own Homestyle — Sun, 13 Apr 2008 03:42:54 +0000

After studying the regional economic collapse of the last several previous recent decades, I see unfortunate turbulence that will disturb our in flight movie this evening. Why you ask? Well, because the Federal Government has over spent, some was due to irresponsible fiscal policy and much was due to the outrageous cost of the Iraq War.

When money flows from the Federal Government, those areas that are in the flow of those expenditures see a huge economic benefit and this scenario has been repeated many many times over the last century. Within the last three decades I have had the pleasure of watching the rise and falls of such areas. I watched Southern California tank after all the aerospace workers got laid off (88,000). I have I watched military towns collapse when the government stopped spending on National Defense and BRAC closed bases.

Yes, this also happens when private sector money stops flowing. For instance, The Dot Com bubble burst in Silicon Valley or the many large cities hit by the Telecom Crash, the S&L debacle and those are just a few. Right, now our Online Think Tank is reviewing the proposed Budget coming up for the Federal Government, and we see some economic fall-out that is actually long overdue, from a fake economy propped up by wasteful spending.

Indeed the biggest issue I see is that the areas in and around Washington DC will be hit hardest and that will affect real people, folks who live there and work there. Does that mean Washington should keep spending? Heck no, spending must come under control. Nevertheless, this will cause the housing markets there to go thru a much longer bottom that is projected. Something to contemplate in 2008.

By Lance Winslow

“Lance Winslow” – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/ Lance Winslow’s Bio

How To Stage A House For The Market

Own Homestyle — Sat, 12 Apr 2008 06:53:58 +0000

For A Faster Sale More Profit: Stage it.

Staging is the process of getting a house ready to sell. It is an important step; it is almost as important as pricing. Many For Sale by Owners make a mistake; they just put a sign in the yard and hope for a buyer. When you sell by owner, it takes careful preparation and planning. In this article I’ll show you how to stage the house for the market so you sell faster and make more money.

The overall condition and appearance of a house is important in determining how fast it will sell and how much the buyer will pay.

Curb appeal is make or break. Many buyers won’t view a house that doesn’t have curb appeal. Others are unable to look beyond your belongings once they’re in the house.

Buyers start making buying decisions at the curb, If a house doesn’t have curb appeal, you’ve lost a buyer.

You Never Get A Second Chance To Make A First Impression.

Buyers have built in discount clocks that start ticking at the curb. They look for ways to reject your house and ways to discount your price. The buyer’s discount clock is always ticking

Tic, Tic, Tic . . .

• Is the driveway clear and clean?

• Is the side walk free from clutter?

• Is the lawn mowed and edged?

• Is the house inviting?

• Is the sidewalk clean and clear?

Tic, Tic, Tic . . .

• Is the mailbox painted?

• Are box numbers easy to read?

• Are house numbers easy to read?

• Would colorful floors at the front door add appeal?

• Is the front door clean, new or newly painted?

• Is the entry porch clean and clear of stuff?

Does it sound like a pain, tending to all the details? You do want top dollar don’t you?

Once inside the house:

• Is the entry inviting?

• Is it well lit? Consider using full spectrum lighting.

• Is it clean and free of clutter?

• Would mirrors make the space seem larger?

You have to detach from the house. The house is a property, not your “home.” Refer to it as a house, not your home. You are preparing the house, not your home, for the market. Make that distinction. It will help you stage the house. Is the buyer mentally moving in? It’s imperative that a buyer sees himself/herself as living in the house. If they like the house, they’ll mentally move in.

You want the buyer to start thinking of it as their home. You have to get rid of family portraits that line the stairs and halls. Too many personal memories can actually make the buyer feel guilty about taking you away from your home. Memory lanes are psychological turn offs for the buyer. You don’t want distractions.

You plan to move after you sell right?

• Start packing before you put the house on the market.

• Box up nicknacks, photos and stuff.

• Thin out.

• Box it

• Store it.

• Have a garage sale.

• Streamline.

• Less clutter creates a sense of space.

• Less stuff makes a house inviting.

Come on, you can do it.

Consider storing or selling some of your furniture. Create wide walking spaces. Recliners and sofas, are great for living, but terrible for showing. Clear walking areas. Make the rooms appear larger.

Visit model homes. Notice how sparsely they’re furnished. This creates a sense of spaciousness. Go home and start weeding out your excess furniture and clutter.

Lots of lights. Be sure there are working bulbs in all light fixtures. Consider full spectrum lighting as it gives a nice natural light without starkness. Turn on lights for showings.

Clear counters. Goodbye toasters. Goodbye kitchen appliances. Make the kitchen sparkle. Clean stove, broiler and oven. Clean the back splash. Buyers notice.

Bathrooms must sparkle.

• No wet towels.

• No toilet articles left out.

• Clean mirrors and shower doors.

Bedrooms neat.

• Beds made

• Neat closets.

• Pick up clothes.

• Pack most of your clothes.

• Remove excess furniture.

• Create a sense of roominess.

If buyers are thinking move in, help them. Open blinds and drapes Put a bouquet of cheery flowers on the table.

The garage counts. Clean the garage floor. Grease spots are a turn off. Get rid of tools. Pack, hang or store them.

Would you buy this house? in its present condition, for the price you’re asking?

If your answer is not a resounding YES; then reconsider your price or improve conditions. Consider hiring a professional decorator.

The final List:

• All Guns and jewelry put in a safe deposit box.

• Put away dog and children’s toys.

• Professionally clean all windows.

• Fresh paint pays for itself.

• Heat cinnamon in the oven – not necessary but nice.

• Dresser drawers orderly.

• Music – I vote no, buyers may hate your selection.

In summary you want to remember:

• Create Openness.

• Make the house bright and cheery.

• Create spacious walking areas.

• Make everything shine.

• Approximate the look of a model home.

• Have a guest book.

• Have a flyer.

Good Luck Selling Your House.

About the Author

Wee Dilts is the creator of the original for sale by owner flat fee MLS program, author of the best selling “How To Sell Real Estate by Owner” book, and has assisted FSBOS since 1983. • Colorado For Sale by Owners can register for MLS, purchase her book, or download Free FSBO tips at http://www.fsbofriend.com

If you have FSBO questions you’ll get a prompt response by writing to Wee at fsbofriend@msn.com