Yes, Interest on Home Equity Loans is Still Deductible by Robert Freedman on March 5, 2018

There’s been confusion since the big tax law was enacted over the deductibility of interest on home equity loans. NAR has been saying that the interest is still deductible for the part of the loan that’s used for home repairs, renovations, and additions. And that’s the correct interpretation, according to the IRS. The agency confirmed that in a memo about a week and a half ago. VRE 82 image The part of the loan that’s used on the house to fix something or improve it remains deductible under the new tax law. Loan proceeds that are used for personal living expenses or anything not related to improving the home is not deductible. The clarification is looked at in the latest Voice for Real Estate news video from NAR. The video also looks at an important vote in the House on so-called drive-by lawsuits. These are lawsuits filed by people who are using accessibility requirements under the Americans with Disabilities Act to extract fees from small property owners. People are sending letters to property owners alleging they have an ADA violation and threatening a lawsuit unless the owner reaches a settlement with them. The person sending the letter typically doesn’t even say what the alleged violation is. The only way the owner can find out is by going to court. Most owners end up settling as the cheaper alternative and if there was ever any violation the owner never finds out what it is. The House passed a bill requiring people who send these letters to identify what the alleged violation is and to give owners a chance to correct the problem before taking them to court. It’s a solution that addresses a clear abuse of an important law and NAR supported its passage. The bill still has to be taken up in the Senate. Other topics in the video include NAR’s Commitment to Excellence initiative, which will roll out later this year, to give NAR members a chance to voluntarily assess how well they perform on key aspects of their business, including technology, the Code of Ethics, and the forms and contracts they use. The video also gives an update on home sales—they’re off to a slow start this year, mainly because of inventory shortages in many markets, especially among lower-cost starter homes—and what’s happening in commercial real estate. Briefly, transaction volume on small cap properties is doing okay but volume on large cap properties is slowing down.

Facebook housing fund gets cash boost, now ready to start backing projects

Visitors visit the sign outside Facebook headquarters at 1 Hacker Way, in Menlo Park, Calif., Friday, May 27, 2016. Tech tourism has become prevalent in the past few years at Silicon Valley icons. (Patrick Tehan/Bay Area News Group) (Patrick Tehan/Bay Area News Group) Visitors visit the sign outside Facebook headquarters at 1 Hacker Way, in Menlo Park, Calif., Friday, May 27, 2016. (Patrick Tehan/Bay Area News Group) By MARISA KENDALL | mkendall@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 6, 2018 at 6:00 am | UPDATED: March 6, 2018 at 6:28 am More than a year after becoming one of Silicon Valley’s first big tech companies to commit to creating more affordable housing, Facebook said Tuesday that its Catalyst Housing Fund is a step closer to backing new units. The fund has reached a key milestone by landing its first outside investor — local nonprofit The San Francisco Foundation, which is adding $1 million to Facebook’s original $18.5 million contribution. “We’re ready to go,” said Facebook global mobility manager Menka Sethi. “And I think you’ll see us fund projects hopefully very early in this year.” ADVERTISING The move comes as the booming tech economy has flooded the Bay Area with high-paying jobs, driving up the cost of renting or buying a home, pricing out many local residents, and leading many in the community to demand that tech companies like Facebook do something to combat the problem. After East Palo Alto-based community coalition Envision, Build, Transform threatened to sue Facebook over its expansion in Menlo Park, the tech giant in December 2016 pledged $18.5 million to fund affordable housing construction in the area. A handful of other large tech companies have taken similar steps. Google is working with Mountain View officials to add nearly 10,000 new homes and apartments to North Bayshore. While building its new “spaceship” campus in Cupertino, Apple gave $5.85 million to that city’s affordable housing fund. And last year LinkedIn invested $10 million in Housing Trust Silicon Valley’s Tech Fund. But there’s pressure for cash-flush tech companies to do more, and some housing advocates hope the Catalyst Fund will inspire other tech companies to step up. “More and more companies are recognizing that it’s a crisis,” said Carl Guardino, president and CEO of the Silicon Valley Leadership Group trade association, “and those that have the capacity…to also be a part of the solution, more and more are stepping forward. Do we need more to step forward? Absolutely.” Facebook’s goal is to back affordable housing projects within a 15 mile radius of its Menlo Park campus — with $10 million specifically going to development in East Palo Alto. Facebook in August brought on fund manager Local Initiatives Support Corp. (LISC), which intends to take the nearly $20 million in the fund and grow it into $75 million by collecting outside loans. “The San Francisco Foundation making that $1 million investment is a huge momentum-builder for us,” said LISC CEO Maurice Jones. In a blog post, The San Francisco Foundation said its contribution to the Catalyst Fund, which is a low-interest loan, will help finance the development and preservation of more than 500 low-income housing units. Facebook intends to reserve about one-third of the units it funds for families making 30 percent or less of the area’s median income, one-third for families making 30 to 50 percent, and one-third for families making 50 to 80 percent. Like most projects related to home-building, Facebook’s Catalyst Fund has run into some delays along the way. In August, the company said it planned to begin investing in affordable housing projects by the fall of 2017, but that date was pushed back after it took longer than anticipated to get LISC nailed down as fund manager and approved by the city of East Palo Alto, which is partnering with the Catalyst Fund, Sethi said. And though teaming up with outside investors has been the stated goal from the time Facebook launched the fund in December 2016, it’s taken more than a year to land the first investor. The Catalyst Fund held its first meeting last month with community members and potential developers, and Sethi said there will be more to come. The fund is researching potential projects for investment, she said. Whatever projects they choose may be further delayed in waiting for city approval. Related Articles Fund manager hopes to quadruple Facebook’s $18.5 million housing fund Facebook commits $20 million for affordable housing, other assistance Tameeka Bennett, executive director of East Palo Alto-based nonprofit Youth United for Community Action — one of the groups that threatened to sue Facebook and now is involved in the Catalyst Fund — said the nearly $20 million initiative is encouraging, but it’s just a “drop in the bucket” given the Bay Area’s housing shortage. “No, this isn’t going to solve the problem,” she said. “And I think Facebook and other tech companies…they have to think about things like housing. They can’t just build and not be intentional about that.”

Realtor’s ‘Not-Haunted’ for-sale signs draw laughs, boos

Realtor’s ‘Not-Haunted’ for-sale signs draw laughs, boos Houston-based Realtor Ellis Young is also attracting attention with his 'Gluten-Free House,' and 'Harvey Tested' signs BYMARIAN MCPHERSON Staff Writer MAR 5 Faster. Better. Together. Inman Connect San Francisco, Jul 17-20, 2018 LEARN MORE For Houston-based Realtor Ellis Young, a traditional “For Sale” sign just won’t do. Instead, Young likes to add uncanny and hilarious phrases — the latest being, “Not Haunted.” Young’s latest listing in Manvel, Texas, is a 3,600-square-foot home with four bedrooms, three and a half baths and a private backyard — all features that should draw in potential buyers with no problem. Ellis Young’s “Not Haunted” listing, 3223 Spring Ridge Dr., Manvel, TX 77578 Young, who is with Realty One Group-Lone Star, and his sellers thought the “Not Haunted” sign would, at most, draw in curious buyers and, at the very least, give passersby something to laugh at. But Young got a little more than he bargained for when a couple neighbors wrote a Facebook post calling Young “unprofessional,” and then sent the post to ABC 13 in Houston. “You can’t do it the same old way. You’ve got to spice it up. You’ve got to look different. You’ve got to keep it fun,” Young explained to ABC 13. What’s stopping you from putting in the effort? Tom Ferry: How to get out of your coma and supercharge your production READ MORE Young told Inman he got the idea from his sign maker, who serves clients in Louisiana. There, the sign maker said, real estate agents use “Not Haunted” signs as a serious marketing tactic, so he jokingly asked Young if he’d like to start using them. “I was like, shoot, let’s do it — let’s roll with it,” said Young with his Texas twang. Young’s “Harvey Tested” sign. (Credit: Ellis Young) He put out the first “Not Haunted” sign six months ago, and he has a few other signs in the rotation, such as “Gluten-Free House,” “Harvey Tested,” “Room For Activities,” “Free VCR with Purchase” and “Backyard Included.” Young’s “Harvey Tested” sign. (Credit: Ellis Young) His favorite sign is “Room For Activities,” a reference to a scene in the movie “Step Brothers,” where Will Ferrell and John C. Reilly’s characters build a makeshift bunk bed and excitedly declare, “So much room for activities!” The jokes don’t stop with his signs — Young’s car reads: “Voted 13th most attractive realty team in the Pearland area,” which he says is ironic since there aren’t even 13 realty teams in the area. Although some don’t understand his humor, Young says he’s not stopping anytime soon, and he’d rather be authentic to himself — something that helped him earn a Houston Association of Realtors Top 20 Under 40 award last year. “Just be yourself,” Young said. “It’s cliche, but that’s what it is. Find a brokerage that allows you to be who you want to be. If you’re genuine, people tend to gravitate toward that versus someone who is scripted.” View news coverage of the “Not Haunted” sign here, courtesy of local Houston news channel ABC13. Email Marian McPherson

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Homes Record Breaking Returns

Bay Area homes deliver record-breaking returns Louis Hansen PUBLISHED: February 28, 2018 at 10:01 am | UPDATED: March 1, 2018 at 7:42 pm Categories:Business, California News, Latest Headlines, News, Real Estate Richard Rogers looks at the kitchen at an open house at 5893 Taormino Avenue in San Jose, Calif. on Sunday, Feb. 25, 2018. (Randy Vazquez/ Bay Area News Group) (Click here, if you are unable to view this photo gallery on your mobile device.) The good times started to roll in April 2012. The Warriors had a solid new back court named Curry and Thompson and local home prices started to climb again. Since then, Bay Area homes have gained value year-over-year for a record 70 straight months, according to real estate data firm CoreLogic. It’s been nearly six years, and the Warriors and the housing market look stronger than ever. Some counties have seen average property values nearly double during that stretch, including appreciation of more than 80 percent in Alameda, Contra Costa, Santa Clara and San Mateo counties. That’s nearly twice the national increase during the same time. In Alameda and Solano counties, real estate offered better returns than even the Dow’s 87 percent run-up between April 2012 and December 2017. “It never cooled down,” said Mark Wong, agent at Alain Pinel in Saratoga. “It just kept heating up.” The streak tops the real estate fever that overtook the valley during the dot.com boom from early 1996 though September 2001. But agents say there’s more stability now in the region’s economy from established and expanding tech giants such as Apple, Google and Facebook. They don’t expect the real estate run-up to slow down. The latest sales report from January reflects a steady rise in home prices, pumping up values for property owners while leaving first-time buyers busting budgets to purchase a starter home. Experts say prices were boosted by continued tight inventory and a growing, well-paid workforce. The sheer scarcity of homes for sale is driving up bids. The Bay Area median price for a resold home rose to $712,000 in January, an 11.8 percent gain from a year ago, according to a report released Wednesday by CoreLogic. Median sales prices in San Mateo rose 30 percent from the previous January, reaching $1.31 million. Santa Clara prices jumped nearly 24 percent to $1.05 million. Alameda rose about 14 percent to $755,000, and Contra Costa home prices went up 7 percent to $535,000. Gains have reached double-digits for the last six months. But rising prices also meant a drop in home sales. The 3,410 purchases of resale homes last month represented a dip of nearly 4.5 percent from last year, according to CoreLogic. Over the long-term, the Bay Area bounced back more quickly from the real estate crash than other parts of the country, said CoreLogic research analyst Andrew LePage. He noted that other metro areas in the west, including Los Angeles, Seattle and Phoenix, have seen similar strong runs in their housing markets. But the Northern California run has been notable for its record-busting prices. “The Bay Area is impressive, or daunting, depending on your perspective,” LePage said. Local agents say the streak has been fueled by the combination of a strong local economy steadily adding tech jobs, rising stock prices that benefit tech professionals, and confident buyers. William Doerlich, an agent with Realty One in San Ramon, said the market began to turn around 2011 and 2012 with the help of federal tax breaks. “It really started what we’re seeing — this fairly robust market,” he said. Alain Pinel’s Wong said many clients were looking to catch the bottom of the market around 2012. “But whenever you see the bottom,” he said, “you’ve missed it.” Wong has seen houses in hotspots like Cupertino, Los Altos and Mountain View going for almost 50 percent over asking price. “It’s a very good long-term investment,” he said. Agents continue to point to the shortage of new homes being built as a key reason for escalating prices. By one estimate, the region added 6 times as many jobs as new housing units between 2010 and 2015. “We’re not nearly keeping up pace,” said Gustavo Gonzalez, a San Jose agent. “We’re not trying to send somebody to Mars, here. We’re trying to build more houses.”

Housing shortage: New report shows how California cities and counties stack up

By KATY MURPHY | kmurphy@bayareanewsgroup.com | Bay Area News Group PUBLISHED: February 1, 2018 at 3:34 pm | UPDATED: February 2, 2018 at 7:30 am SACRAMENTO — Nearly all the cities and counties in California — 97.6 percent — are failing to approve the housing needed to keep pace with population growth and will be subject to a new law that aims to fast-track development, according to a report released by the state Thursday. The state’s housing department released lists showing that more than 500 cities and counties are not on track to meet guidelines for the development of market-rate housing, affordable housing or both. Those jurisdictions will now lose the ability to reject certain types of development projects under legislation that was signed into law last fall. Only 13 cities and counties, including Foster City, Hillsborough, San Anselmo and Beverly Hills, made the grade. “When 97 percent of cities are failing to meet their housing goals,” the bill’s author, Sen. Scott Wiener, D-San Francisco, said in a statement Thursday, “it’s clear we need to change how we approach housing in California.” Senate Bill 35, which Wiener carried last year, kicks in when cities or counties lag behind on annual progress reports. It applies only to projects that comply with a city’s zoning rules, pay the prevailing wage, and ensure that at least 10 percent of the new units are affordable, or priced below market rate. (The prevailing-wage requirement only applies to projects with more than 10 units.) For cities such as Oakland, Berkeley, Fremont, Walnut Creek and San Jose — which met their market-rate housing goals but didn’t issue enough permits for affordable housing to stay on track — the law applies only to proposed developments in which at least half of the units are affordable, or below market rate. Others, including Menlo Park, Richmond, Santa Rosa, Carmel and Alameda and San Mateo counties, came up short on both market-rate and affordable development, which means the new law would apply to both kinds of projects. SB 35 aims to make the permitting process faster and less cumbersome in those areas, with the hope of boosting the housing supply and stabilizing soaring housing costs over time. The progress report was published by the California Department of Housing and Community Development, which is managing the new law’s implementation. The department found that 70.1 percent of all cities and counties fell short of the state’s guidelines for both market rate and affordable housing. Another 27.5 percent approved enough market-rate housing, but not enough affordable housing. California has set guidelines for development, measured by permits issued to builders, since 1969 in an effort to discourage cities from impeding growth. Those guidelines are set during 8-year cycles through the bureaucratically titled Regional Housing Needs Allocation, which housing policy wonks call RHNA (pronounced REE-na). Critics say the state lacks power to enforce the guidelines, however, and many cities lobby to have their goals reduced, or ignore them altogether. Wiener has a pending proposal, Senate Bill 828, to change how those numbers are set. The very short list of cities and counties that are on track to meeting the state’s affordable housing development goals was not a shock to Matt Schwartz, president CEO of the California Housing Partnership, a non-profit housing organization based in San Francisco. He believes the state needs to offer more rewards to local governments that are approving affordable housing projects — and perhaps withhold some transportation funding for those that don’t. “What’s the penalty if I don’t meet my RHNA affordable housing goal? What’s the incentive if I meet or exceed those goals?” he asked. “Not much.” Reporter Louis Hansen contributed to this story. These Bay Area cities and counties are failing to meet all of their housing goals — both market rate and affordable: Alameda County, Capitola, Carmel, Clayton, Concord, East Palo Alto, Emeryville, Hayward, Los Altos Hills, Martinez, Menlo Park, Mill Valley, Millbrae, Monterey, Moraga, Newark, Novato, Pacifica, Pinole, Pleasant Hill, Redwood City, Richmond, San Bruno, San Leandro, San Mateo County, Santa Cruz County, Sausalito, South San Francisco, Tracy, Union City, Vallejo The Bay Area cities and counties below are not issuing enough permits for affordable (below market rate) housing, but are on track to meet their goals for market-rate housing: Alameda, Albany, Antioch, Atherton, Berkeley, Brisbane, Burlingame, Campbell, Contra Costa County, Cupertino, Daly City, Danville, Dublin, El Cerrito, Fremont, Gilroy, Hercules, Lafayette, Los Altos, Los Gatos, Marin County, Milpitas, Morgan Hill, Mountain View, Oakland, Orinda, Palo Alto, Piedmont, Pittsburg, Pleasanton, San Francisco, San Jose, San Mateo, San Pablo, San Rafael, San Ramon, Santa Clara, Santa Clara County, Sunnyvale, Walnut Creek, Woodside Statewide, just 13 cities or counties are on track to meet both goals. They include Foster City, Hillsborough, San Anselmo, and Napa and Sonoma counties.

Housing in 2018: San Jose neighborhoods top the nation’s ‘hottest’ list

Housing in 2018: San Jose neighborhoods top the nation’s ‘hottest’ list SAN JOSE — More bad news for people house-hunting in the Bay Area: Of the 10 hottest neighborhoods in the country this year, according to the real estate website Redfin, nine are in the San Jose metro area. The last is in San Francisco. Redfin experts say that’s largely because tech workers, even very well compensated ones, are getting priced out of the San Francisco Peninsula. Others are drawn by new jobs from companies such as Google and Apple — or by Google’s plans to build a downtown campus around San Jose’s largest transit hub, Diridon Station. “While the San Francisco Peninsula has traditionally been the hottest of the hot places, we’re seeing it become unaffordable for even the tech giants that helped create its demand in the first place,” said Redfin Silicon Valley agent Kalena Masching. Start your day with the news you need from the Bay Area and beyond. Sign up for our new Morning Report weekday newsletter. Compared to Palo Alto, where the median sale price last year topped $2.5 million, and San Francisco, where the average home sold for $1.3 million, San Jose’s median home price of over $1 million (and rising) apparently looks like a deal. Topping the list is San Jose’s Bucknall neighborhood, where the median sale price last year was $1.57 million and 100 percent of homes sold for above list price. In recent weeks, Masching said, open houses have been swamped, homes have been getting 15 to 20 offers each, and people have taken off work to check out houses the moment they come on the market. She’s also noticed something else: “What we’re seeing is a disregard for recent comparable sales and people deciding what the home is worth to them and just giving that as their offer.” The demand for real estate in the South Bay has been well documented; late last year, Zillow predicted the San Jose metropolitan area would be the hottest housing market in the country in 2018. But that it landed nine neighborhoods out of 10 on Redfin’s latest list surprised even Redfin economist Nela Richardson. The interest, she said, is fueled by a lack of housing supply throughout the Bay Area — and “speculative interest” in Google’s expansion. “Basically Google’s just extending its tentacles,” Richardson said, “and yet it’s having a dramatic effect on one city.” Redfin created the list based on the increase in the number of homes marked as “favorites” in each area and the number of page views on Redfin.com. As Redfin noted, this further uptick in interest will only put more pressure on the housing market. In December, the San Jose area had the lowest rate of homes per sale that Redfin had ever recorded — anywhere in the country — and its home prices rose a whopping 31.9 percent from the previous year. With two neighborhoods on the list, San Jose’s prominence was worrisome to the city’s mayor, Sam Liccardo. “We typically would welcome being on a top 10 list of hottest anything,” Liccardo said, “but in this case our housing market has been plenty hot for plenty long enough, and we need to get about the business of cooling the market by building the supply that’s needed for the thousands of families who are struggling to survive.” REDFIN’S 2018 HOTTEST NEIGHBORHOODS LIST 1. Bucknall (San Jose) Median sale price (Dec. 2017): $1,565,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 23.8 percent 2. Cambrian (San Jose) Median sale price (Dec. 2017): $1,244,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 18 percent 3. White Oak (Campbell) Median sale price (Dec. 2017): $1,010,000 Percent of homes that sold above list price (Dec. 2017): 66.7 percent How much above list price: 5.7 percent 4. Ortega (Sunnyvale, San Jose metro area) Median sale price (Dec. 2017): $1,920,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 16.5 percent 5. West Santa Clara (San Jose metro area) Median sale price (Dec. 2017): $1,237,500 Percent of homes that sold above list price (Dec. 2017): 90.3 percent How much above list price: 16.1 percent 6. Sunnyvale West (San Jose metro area) Median sale price (Dec. 2017): $1,945,000 Percent of homes that sold above list price (Dec. 2017): 91.3 percent How much above list price: 18.3 percent 7. Lakewood (Sunnyvale, San Jose metro area) Median sale price (Dec. 2017): $1,200,000 Percent of homes that sold above list price (Dec. 2017): 92.3 percent How much above list price: 21.3 percent 8. Sunnyside (San Francisco) Median sale price (Dec. 2017): $1,272,500 Percent of homes that sold above list price (Dec. 2017): 89.5 percent How much above list price: 25 percent 9. Blacow (Fremont, San Jose metro area) Median sale price (Dec. 2017): $1,005,000 Percent of homes that sold above list price (Dec. 2017): 91.7 percent How much above list price: 9.4 percent 10. Rex Manor (Mountain View, San Jose metro area) Median sale price (Dec. 2017): $1,500,000 Percent of homes that sold above list price (Dec. 2017): 83.9 percent How much above list price? 14.4 percent Source: Redfin

Why you want Amazon to be your new neighbor

by Kathryn Vasel @KathrynVasel January 24, 2018: 1:09 PM ET Amazon has narrowed down its hunt for a second home to 20 locations. And the chosen city is likely to get an economic jolt -- particularly to its housing market. The company announced in September that it plans to open a second corporate headquarters, and a nationwide bidding war soon broke out. Some cities offered massive tax breaks, while others got creative with their courtship. Tucson, Arizona, sent a giant cactus to CEO Jeff Bezos and one Georgia town pledged to name an area "The city of Amazon (AMZN)." The second headquarters is expected to cost at least $5 billion and create as many as 50,000 high-paying jobs -- no wonder cities rushed to lay out the welcome mat. The selected city will get an immediate boost to jobs and wages, said Javier Vivas, director of economic research for Realtor.com. It will also push up home prices and lead to new home construction in neighborhoods within commuting distance from the headquarters location, he added. When a big company moves into a new town it tends to have a ripple effect on the local economy: job creation strengthens, some wages increase and home prices rise. Just look at what happened in Reno, Nevada, after Tesla opened a massive battery factory: Home prices have soared 43% since the fall of 2014, following the start of construction on the Gigafactory, according to Daren Blomquist, senior vice president of communications at ATTOM Data Solutions. The same phenomenon occurred when Apple moved its headquarters to a new location in its home city of Cupertino, California. In the three years following the project's approval, homes located within a mile of the new campus appreciated three percentage points faster, on average, than the rest of the county, according to Realtor.com. Just how much home prices will rise in Amazon's chosen city will depend on a variety of factors: the existing inventory, recent home price performance, demand and the space available for new construction. Of the 20 cities, those that have seen more modest home price growth than others on the list stand to gain the most, according to Blomquist. He pointed to Pittsburgh, Indianapolis and Columbus, Ohio, as the markets that could see the biggest gains. "The impact in markets where there has been single-digit appreciation ... we could see a jump, at least in the short term, to double digits of 10%-20% or even more appreciation for the first year," he said. In places where housing is already in limited supply and building regulations are prohibitive -- like New York and Boston -- home values could rise even more with a surge of new residents to staff the new headquarters. For instance, home prices in Boston have jumped 8.4% in the last year to a median home value of $568,300, according to Zillow. If Boston becomes the new home of Amazon, it would be "chaos," according to Fernando Ferreira, an associate professor at Wharton School at the University of Pennsylvania. "The housing market would be three times worse than it already is," he said. Markets with existing inventory and space and fewer obstacles to building will be able to more easily handle the need for new home construction, experts said. The big winners in the chosen city will be current homeowners who will likely see their home appreciation rise when Amazon moves in. "If you are in a larger house and ready to downsize or move, this will be a pure gain for you," said Stijn Van Nieuwerburgh, professor of finance and director of the Center for Real Estate Finance Research at New York University Stern School of Business. Another indirect advantage for the winning city: Rising home values will likely to lead to higher property taxes, which could help boost a city's budget and services. "As property taxes and revenues go up, that can go to schools and improve their quality and better fund programs ... and infrastructure," said Van Nieuwerburgh. Related: In booming economies, food banks are busier than ever On the downside, a big jump in home prices means renters or wanna-be homeowners in the selected city could lose out, potentially forcing some long-time residents out of the city. "If you are a first-time homebuyer in the selected city, this is bad news," said Van Nieuwerburgh. "Property prices will go up and you will have to borrow more." CNNMoney (New York) First published January 20, 2018: 11:04 AM ET

Utility Box Mural Project

Date Issued: January 25, 2018 Application Deadline: March 9, 2018 at 5:00 p.m. The City of San Carlos and its Parks, Recreation and Culture Commission invite artists to participate in the City’s Utility Box Mural Project for 2018. We are seeking artists to showcase their work on this project to paint six utility boxes located throughout San Carlos. The goals of the project are to enhance the beauty and vibrancy of San Carlos, deter unsightly graffiti on utility boxes, and bring art to unexpected places. Please download and read the Call for Local Artists and Attachment A for details regarding this project, including the application requirements. If you plan to submit your artwork proposal, please complete and submit the following paperwork prior to the deadline: Application Design Template You may also obtain these documents by e-mailing publicart@cityofsancarlos.org, or picking them up at the Parks & Recreation Office at City Hall, 600 Elm Street, during office hours. Art-Active Art-Hands Art-Welcome to San Carlos Art-Deer CONTACT US publicart@cityofsancarlos.org (650) 802-4421 FIND US 600 Elm Street San Carlos, CA 94070 CONTACT US Phone Directory webmaster@cityofsancarlos.com

Number of US renters declines for first time in 13 years

May be an anomaly as aging baby boomers and millennials are expected to drive new growth in the market BYJOTHAM SEDERSTROM Staff Writer JAN 5 The nation’s population of renters, a third of American households, decreased modestly for the first time in 13 years as declining foreclosure rates and steadily rising rent helped reduce the number to 43 million in the first half of 2017, down by about 500,000, according to a report by apartment listing service Abodo. The decline, ushered in by first-time homebuyers and historically low mortgage rates, comes as the national median rent for a one-bedroom apartment increased by 2.4 percent in 2017, to $1,040, according to an Adobo. Two-bedroom apartments, similarly, increased by 3 percent, to $1,252, according to the report. Overall, rent spiked in 28 states, with New Orleans, Reno, Honolulu and Seattle all experiencing increases of more than 2 percent, and New Orleans, in particular, seeing a 4-percent bump. “Two-bedroom rents exhibited similar stability through the first quarter before more sharp increases in the second,” according to the authors of the Abodo report, released on Wednesday. “After a pause in the late summer and early autumn, two-bedroom rents, like one-bedroom rents, saw their greatest hikes in the last three months of the year.” Foreclosure rates, meanwhile, hit an 11-year low in the third quarter of 2017, an indication that fewer homeowners were moving — reluctantly, perhaps — to rental units upon losing property. Despite rising rental rates, the decline in renters in 2017 may be an anomaly, according to a separate report issued Tuesday by the Joint Center for Housing Studies of Harvard University. Rental households are projected to grow by 13.6 million between 2015 and 2025 as aging baby boomers and millennials drive new growth in the market, according to the Harvard study. “Over the next 10 years, the younger half of the millennial generation — the largest generation in U.S. history — will move into their 20s and 30s, the age groups most likely to rent,” wrote the authors of the study. “In addition, minority households are expected to account for nearly three-quarters of household growth in 2015–2025 and fully 90 percent in 2025–2035.”

Realtors, homebuyers are confident in today’s real estate market

Realtors in 37 states expect buyer traffic to be "strong" in 2018 BYMARIAN MCPHERSON Staff Writer JAN 5 Association of Realtors (NAR) today released the results of the Realtors Confidence Index (see report below), which measures NAR members’ expectations for the housing market over the next six months on a scale of 1-100. Source: National Association of Realtors According to the results, Realtors are confident about what the first half of 2018 will bring, especially when it comes to the sales pace for detached, single-family homes. Respondents in 36 states expect the sales pace to be “strong” (60+ points), while respondents in four states (Oklahoma, Illinois, West Virginia and Connecticut) only expect the market to be “stable.” The only state to receive a “weak” (50 points or less) rating was Alaska. Meanwhile, realtors in Washington, Nevada, Nebraska, Wisconsin, Kentucky, Tennessee, South Carolina, Delaware and Rhode Island expect their market to be “very strong” (75+ points) in 2018. When it comes to the sales pace for townhomes and condominiums, the outlook remains relatively robust with respondents in 41 states also expecting the 12-month outlook to be “stable” to “very strong” for townhomes, and respondents in 16 states expecting the 12-month outlook to be “strong” for condos. Will it be a buyer’s or seller’s market? Thanks to continued inventory issues, economists and real estate experts alike are predicting that 2018 will be a seller’s market, giving homeowners pricing leverage in a landscape with weak residential housing starts. Sixty-nine percent of respondents expect home prices to grow over the upcoming year, with the highest home price growth in the West and Southeast. Realtors in Florida, Maryland, Colorado, Nevada, Arizona and Washington expect home prices to skyrocket anywhere from 4 percent to 6 percent. Meanwhile, survey takers in Alaska, North and South Dakota, Oklahoma, Iowa, Illinois, Missouri, Louisiana, Mississippi, Vermont and Connecticut expect home prices to remain essentially unchanged with 0 percent to 2 percent growth. Furthermore, respondents said homes have been selling, on average, within 40 days and at a 31-percent premium. Despite these factors, Realtors expect buyer demand to remain robust over the next twelve months, echoing studies about millennials finally entering the homebuying market and buyers of all ages taking advantage of jobs and wage growth. The buyer traffic index is at 62, meaning that most Realtors expect buyers to continue vying for their dream homes. Respondents in 37 states expect buyer traffic to remain “strong,” and another seven states are expected to be “stable.” Buyer traffic in the Dakotas, Alaska, Louisiana and West Virginia is predicted to be “very weak” or “weak.” Delaware is expecting to have a knockout year. Realtors are still wary about the effects of low inventory and the tax reform bill, which includes changes to the mortgage interest deduction, state and local tax (SALT) deductions and capital gains taxes.

Realtors, homebuyers are confident in today’s real estate market

Realtors in 37 states expect buyer traffic to be "strong" in 2018 BYMARIAN MCPHERSON Staff Writer JAN 5 The National Association of Realtors (NAR) today released the results of the Realtors Confidence Index (see report below), which measures NAR members’ expectations for the housing market over the next six months on a scale of 1-100. Source: National Association of Realtors According to the results, Realtors are confident about what the first half of 2018 will bring, especially when it comes to the sales pace for detached, single-family homes. Respondents in 36 states expect the sales pace to be “strong” (60+ points), while respondents in four states (Oklahoma, Illinois, West Virginia and Connecticut) only expect the market to be “stable.” The only state to receive a “weak” (50 points or less) rating was Alaska. Meanwhile, realtors in Washington, Nevada, Nebraska, Wisconsin, Kentucky, Tennessee, South Carolina, Delaware and Rhode Island expect their market to be “very strong” (75+ points) in 2018. When it comes to the sales pace for townhomes and condominiums, the outlook remains relatively robust with respondents in 41 states also expecting the 12-month outlook to be “stable” to “very strong” for townhomes, and respondents in 16 states expecting the 12-month outlook to be “strong” for condos. Will it be a buyer’s or seller’s market? Thanks to continued inventory issues, economists and real estate experts alike are predicting that 2018 will be a seller’s market, giving homeowners pricing leverage in a landscape with weak residential housing starts. Sixty-nine percent of respondents expect home prices to grow over the upcoming year, with the highest home price growth in the West and Southeast. Realtors in Florida, Maryland, Colorado, Nevada, Arizona and Washington expect home prices to skyrocket anywhere from 4 percent to 6 percent. Meanwhile, survey takers in Alaska, North and South Dakota, Oklahoma, Iowa, Illinois, Missouri, Louisiana, Mississippi, Vermont and Connecticut expect home prices to remain essentially unchanged with 0 percent to 2 percent growth. Furthermore, respondents said homes have been selling, on average, within 40 days and at a 31-percent premium. Despite these factors, Realtors expect buyer demand to remain robust over the next twelve months, echoing studies about millennials finally entering the homebuying market and buyers of all ages taking advantage of jobs and wage growth. The buyer traffic index is at 62, meaning that most Realtors expect buyers to continue vying for their dream homes. Respondents in 37 states expect buyer traffic to remain “strong,” and another seven states are expected to be “stable.” Buyer traffic in the Dakotas, Alaska, Louisiana and West Virginia is predicted to be “very weak” or “weak.” Delaware is expecting to have a knockout year. Realtors are still wary about the effects of low inventory and the tax reform bill, which includes changes to the mortgage interest deduction, state and local tax (SALT) deductions and capital gains taxes. About the survey The RCI Survey gathers information from Realtors about local market conditions based on their client interactions and the characteristics of their most recent sales for the month. The November 2017 survey was sent to 50,000 Realtors who were selected from NAR’s nearly 1.2 million members through simple random sampling and to 5,665 respondents in the previous three surveys who provided their email addresses. Email Marian McPherson.

How Many Credit Checks Before Closing on a Home?

BY TALI WEE ON 29 DEC 2017 Throughout the approval process, push yourself to maintain your credit while lenders pull it. Navigating the purchase of a home can be overwhelming for first-time buyers. Lenders require documentation of seemingly every detail of your life before granting a loan. And of course, they will require a credit check. A question many buyers have is whether a lender pulls your credit more than once during the purchase process. The answer is yes. Lenders pull borrowers’ credit in the beginning of the approval process, and then again just prior to closing. Initial credit check for pre-approval In the first phase of acquiring a loan, pre-qualification, you’ll self-report financial information. Lenders want to know details such as your credit score, social security number, marital status, history of your residence, employment and income, account balances, debt payments and balances, confirmation of any foreclosures or bankruptcies in the last seven years and sourcing of a down payment. This is only a portion of the total information needed for your mortgage application. Once you’re ready to get pre-approved for a loan, lenders will verify your financial information. During this phase, lenders require documentation to confirm the information in your application and pull your credit history for the first time. You may be required to submit a letter of explanation for each credit inquiry in recent years, such as opening a new credit card, and for any derogatory information in your history, like a missed payment. Once you find a home within budget and make an offer, additional or updated documentation may be required. Underwriters then analyze the risk of offering you a loan based on the information in your application, credit history and the property’s value. Second credit check at closing It can take time for your offer to be accepted, and for your loan to pass underwriting. During this period from the initial credit check to closing, new credit incidents may occur on your history. Many lenders pull borrowers’ credit a second time just prior to closing to verify your credit score remains the same, and therefore the risk to the lender hasn’t changed. If you were late on a payment and were sent to collections, it can affect your loan. Or, if you acquired any new loans or lines of credit and used those credit lines, your debt-to-income ratio would change, which can also affect your loan eligibility. If the second credit check results match the first, closing should occur on schedule. If the new report is lower or concerning to the lender, you could lose the loan. Alternatively, the lender may send your application back through underwriting for a second review. It’s important for buyers to be aware that most lenders run a final credit check before closing, so the home-buying window is a time to prudently mind your credit.

This Is How Fast a Home Sells Today

DAILY REAL ESTATE NEWS | TUESDAY, NOVEMBER 28, 2017 Homes today spend a median time of three weeks on the market—far shorter than the median of 11 weeks five years ago, according to new data from the National Association of REALTORS®. “The inventory shortage and the growing economy and job creation has increased the interest in home buying,” says NAR Chief Economist Lawrence Yun. “There is just not enough inventory; people need to fight over the few homes available on the market.” Historically, about 1.2 million new homes are built every year, but this year, only about 800,000 have been constructed. “It’s been below that in prior years, and in the past decade, greatly lower than that,” Yun says. “Today’s shortage is largely explained by a decade of underproduction.” Some markets are so hot that even three weeks is too long for a home to sit. “If we make it three weeks in our market, there is something wrong,” Boston-area real estate agent Darlene Umina told CNNMoney. “These days, you know within the first weekend whether the price was right.” Umina says she hosted an open house earlier this year that resulted in 18 offers on the home. Three of those offers were cash. In San Francisco, real estate pro Erin Thomas says she’s had buyers arrive at open houses and submit an offer on the spot. She also says offers above the list price and without contingencies are becoming more commonplace. Source: “This Is How Long it Takes to Sell a House,” CNNMoney (Nov. 27, 2017)

Millennials: We Don’t Want to Be Renters

DAILY REAL ESTATE NEWS | TUESDAY, NOVEMBER 28, 2017 Though many are stuck renting out of financial necessity, millennials show the same desire for homeownership as their parents and grandparents—and traditional suburban properties appeal to them more than renting or buying in cities, Bloomberg reports. Many economists have acknowledged that the slow path to homeownership for young adults is contributing to record-low homeownership rates. But for two consecutive quarters, the homeownership rate among those ages 35 and younger has been on the rise. Some economists predict that millennials will eventually own homes at similar rates as their parents. Rents, however, are taking a bigger bite out of household budgets, making it difficult for young adults to save enough for a down payment. Student loan debt is also delaying homeownership by up to five years, according to a 2016 study by the National Association of REALTORS®. Millennials also have less job security than prior generations, and their careers are more likely to require relocation. “You go back 20 or 30 years, people would get a job in their late 20s, early 30s, with the idea that they might work there until retirement,” Dean Baker, codirector of the Center for Economic and Policy Research, told Bloomberg. “People aren’t in that boat today.” Young adults who are ready for homeownership are also facing a shortage of homes in the market. “The result is that price gains continue to exceed income growth through scarcity, particularly in that smaller home market, which is the hardest market for a builder to essentially reach and build to these days,” Robert Dietz, chief economist at the National Association of Home Builders, told Bloomberg. Overall, though, economists seem to be upbeat about millennials. They’re getting married and having children later than their parents did, but they are starting to “cross barriers typically associated with buying,” Bloomberg reports. “Right now, probably a third of our housing business is young couples coming out of the apartments,” Chris Nelson, a builder in Simsbury, Conn., told Bloomberg. “We really think that’s just the beginning—that over the next three to five years, we’re going to see a ton of people coming out of the apartments, buying homes.” Source: “Millennials Want to Own Homes Too, if U.S. Economy Would Consent,” Bloomberg (Nov. 26, 2017)

How Neighborly Are Americans? Not Very

DAILY REAL ESTATE NEWS | THURSDAY, NOVEMBER 30, 2017 Nearly 30 percent of Americans admit they don’t know their neighbor’s first name. But at least 90 percent have smiled or spoken to their neighbors—at least once, according to a new survey of more than 1,000 Americans released by Safehome.org, a home security systems review resource. Fifty-three percent of Americans say they’ve introduced themselves when a new neighbor initially moved in, but they won’t likely become best buddies. Only a fraction of Americans—34 percent—say they’ve been in their neighbor’s home or vice versa, and only 16 percent have hung out with neighbors outside of the neighborhood. Baby boomers tend to be the most neighborly generation, according to the survey. Sixty-seven percent of baby boomers said they’ve spoken to their next-door neighbor frequently, while only 36 percent of millennials have said they’ve done the same. In a look at neighborly behavior across ethnic lines, Asian-Americans were found to participate the least among in neighborly reactions at 39 percent, followed by Hispanic participants at 40 percent. Caucasians and African-Americans performed more neighborly reactions—such as smiling and chatting—at 49 percent and 46 percent, respectively. Sixty-three percent of all respondents reported not often speaking to neighbors of a different race. “Knowing your neighbors doesn’t just extend your social circle—it can also have a good effect on your mental and physical health and increase the security of your home,” according to the Safehome.org report. “You may even have a friend, partner, confidante, or baby sitter living next door that you never even knew existed.” Source: “A Nation of Neighbors,” Safehome.org (November 2017)

Last Minute Holiday Gift Ideas

Holiday shopping can be a source of stress for anyone, but particularly for procrastinators. Need some last-minute gift ideas? Think about readily accessible, yet thoughtful items that don’t require a lengthy shipping process. Let these five ideas help solve your eleventh-hour gift-giving woes. 1. DIY-It. DIY gifts can be heartfelt, and many items can be made in a pinch. Bake a tray of Christmas cookies and tie them up with a bow; make seasonally scented homemade candles; or knit a scarf. The possibilities for crafty folks are endless. 2. Get Accessorized. Don’t get stumped. Consider a classic fashion accessory, such as a Casio Vintage Watch, which can be found in many national retailers, in a range of affordable prices. Functional and fashionable, these water-resistant timepieces that feature both an alarm and stopwatch will complement an array of style preferences. 3. Head to the Box Office. Quickly check the schedule of your gift recipient’s favorite band, team or theater company for tickets to an experience, such as a musical, concert or game. This thoughtful gift can be purchased and received in an instant, thanks to e-ticketing. 4. Pamper Them. The holidays are stressful. Help your loved ones unwind during a busy time of year. Consider a gift certificate for a spa or beauty treatment somewhere local to your recipient. The gift can be enjoyed exactly when it’s needed most. 5. Let Them Pick. When you’re really in a pinch and you’ve waited until the last minute, don’t stress. A gift card can be a great way to show you thought of someone, without having to spend too much time or energy in search of the perfect item.

What tax reform could do to your mortgage interest deduction ROBIN SAKS FRANKEL

Taking a mortgage interest deduction at tax time has long been touted as a means of encouraging homeownership, but soon you may no longer able to. Under current law, homeowners can itemize and deduct the interest paid on their mortgages up to the first $1.1 million, if their loan is used to buy or improve a first or second home. The Tax Foundation says this is the third-most popular itemized deduction, and real estate industry professionals say it’s a much-needed incentive to encourage homeownership. But with the Republican tax reform bill on brink of passing Congress, the mortgage interest deduction may be changing soon, and it could have major implications for your taxes. What they want to change The version of the Tax Cuts and Jobs Act passed by the House reduces the amount of mortgage interest that can be deducted from your taxes from the first $1.1 million of your loan to the first $500,000. It also would put an end to allowing a mortgage interest deduction on a second home, which the current law permits. Advocates for these changes say it will encourage more people to use the standard deduction, which the new plan aims to increase, and thus simplify things at tax time. Homebuilders and realty associations decry these changes, saying that it will discourage homeownership, which in turn could have a negative financial impact for many. “Our major concern is less incentive to buy a home, which could mean lower homeownership rates in America,” says Lawrence Yun, economist for the National Association of Realtors. “Given that home values have always provided an opportunity to build wealth, we may see greater wealth inequality in the future.” What this change could mean for you If the House’s version takes hold, halving the mortgage interest deduction is more likely to benefit future homebuyers in less expensive areas. But in major metropolitan areas, homes under half a million dollars are harder to find, and the change is likely to penalize those who can afford pricier housing. The Senate’s version of the act, which is still being ironed out, mirrors the current rule, allowing for a deduction on the first $1 million in any debt used to buy, build or make a significant improvement to a main or secondary home. The biggest change in here is that if you refinance your mortgage, the interest in that debt won’t be eligible for a deduction. This version is less likely to disrupt the status quo. Geographically skewed In 2017, nearly 10 percent of all purchase loans were over that $500,000 threshold. That works out to about 215,000 purchase loans so far in 2017, according to Daren Blomquist, senior vice president of ATTOM Data Solutions. If you’re in the market for a home, you’ll probably be in the 90 percent who spend under the threshold. But that will depend on where you live. “It will disproportionally impact certain areas. Certain homeowners need to be cognizant of this,” says Blomquist. For example, most major metropolitan areas and coastal regions are pricier to live in than other parts of the country and are less likely to have homes priced under $500,000. Blomquist cites California as an example, where as many as 31 percent of the mortgage loans in the state are for amounts above that $500,000 threshold. Is this a big deal? Although real estate groups and the home-building industry have argued vociferously against changing the mortgage deduction, it’s likely that any change isn’t going to make or break your decision to purchase a home. “I don’t think it’s going to affect how consumers are going to buy homes whatsoever,” says Michael Seward, owner/broker of a real estate company in Palmer, Massachusetts. “When people buy a home they don’t do so because they’re getting a mortgage deduction.”

Selling an Older Home? Budget-Friendly Ways to Help It Compete Well With Newer Homes

For those who own and enjoy living in an older home, it can be disappointing to discover that many buyers, especially younger ones, often shy away from these stately beauties. Even when an older home offers features that are hard to find in newer construction, such as large pantries, plenty of storage space and large rooms with high ceilings, it can still lose out to newer homes that offer more open floor plans or more light. Owners of older homes who want to help their homes compete more effectively with newer construction homes can use the following tips to help level the playing field and score the sale! Conduct a Pre-Inspection to Find Lurking Issues Buyers who love the thought of living in an older home but hesitate to purchase one due to concerns about maintenance costs may be persuaded to change their minds if the sellers are willing to add something extra to the deal. One effective tool that sellers can use to help convince buyers that an older home is sound is to have it pre-inspected. If the pre-inspection report finds the home has a repair or condition issue, sellers can include documentation to show what they did to resolve the issue. This type of home pre-inspection will typically cost sellers a few hundred dollars, depending on the size and design of the home. To get an exact cost, sellers can ask their real estate professional for local home inspection prices and referrals to a reputable home inspector in their area. Once the inspection has been completed and any necessary repairs attended to, the sellers may want to ask their listing agent to use the pre-inspection notice and resulting documentation as part of their marketing to help encourage buyer interest. Gift Buyers with a Home-Warranty Plan Another relatively low-cost way for an older home seller to help encourage interested buyers is to offer a home warranty plan as a buyer incentive. Most home warranty plans cover: Systems in the home, including electrical, HVAC, and plumbing Large appliances, such as the refrigerator, hot water tank, and laundry appliances Additional coverage options for hot tubs, pool equipment, well pumps, and other features Alternative seller coverage while the home is under contract Home warranty premiums and levels of coverage vary by company. Sellers who are interested in purchasing a home warranty plan as part of their marketing strategy should discuss their plans with their listing agent. Their agent will be able to help them find a reputable warranty company and choose the best policy for their situation. Consider Repainting the Interior A common reason buyers give when deciding not to buy an older home is because they felt the home's interior was dark or dreary, when compared with newer homes that have a more open floor plan or larger windows. A cost-effective way for sellers to remedy this problem is to consider repainting the interior of the home in a lighter color. By using the same color throughout the home for the walls and adding an even lighter shade for woodwork and trim, the home will have more continuity, making it seem lighter and more attractive to today's active buyers. Maximize Lighting and Minimize Window Treatment Sellers may also want to make changes in the lighting to make the interior of the home feel lighter and more inviting. To this, sellers can start by replacing existing light bulbs with newer, brighter ones that offer a natural light. Adding additional lamps and situating mirrors to maximize the light sources in the home can also be effective in brightening up the interior of an older home. If the home has heavy draperies or dark window treatments, replacing them with sheer panels or allowing some windows to go bare is another excellent way to bring more light into the home. For more ideas on making an older home compete more effectively with newer homes in the local real estate market, sellers should consider asking their listing agent to show them an older home in the area that is attracting plenty of buyer attention or has recently gone under contract. Viewing it may provide additional ideas that sellers can use to make their home more saleable. The listing agent can also help sellers identify problems by touring the home and pointing out areas that need additional lighting or some other improvement to help attract and retain buyer interest.

4 costs you haven't factored into your homebuying budget

It's not cheap to buy a home these days, and we're not just talking about the price of the home itself. Other out-of-pocket costs that crop up during the purchasing process, or even when you're moving in, can put an unexpected strain on your already-hurting bank account. For starters, you'll need to budget between 2% and 5% of the home's purchase price for closing costs, including appraiser, lender, and title fees. New regulations passed last year mean lenders have to be more transparent about these fees, and (as long as you read your closing documents) you should have a relatively good idea of what they'll be when your lender makes you an offer. Powered by SmartAsset.com SMARTASSET.COM Unfortunately those closing costs only make up a portion of the added expenses you'll face. Nearly half of homebuyers incurred more than $2,000 in unexpected charges during the homebuying process, according to a recent survey by TD Bank, and 10% spent at least $5,000 more than they expected. "Most people just look at the sticker price of the house and the mortgage payment," says Svenja Gudell, chief economist at the housing site Zillow. "But there are a lot of additional costs that can shock first-time homebuyers." 1. The inspection Once you've made an offer on a property, you'll usually need to pay an inspector a few hundred bucks to give the home a once-over. If he finds any potential problems -- structural issues or asbestos, for example -- you may have to pay another specialist to come in and offer a professional assessment. homebuying costs magnifying While it can be tempting to skip the inspection to save cash (or to make a more attractive offer to a seller), it's worth the outlay to get peace of mind that the home is in good condition -- or negotiating ammo to make sure the price reflects the necessary repairs. "It's money well spent," says Cindy Hamann, chair of the Houston Association of Realtors. 2. Bringing cash to the table Homebuyers are also often surprised with the extra cash -- beyond closing costs -- that they need to spend at the closing table. Many lenders require you to pay a year's taxes and mortgage upfront. If the seller prepaid any taxes or homeowners association dues, you'll have to pay her the prorated amount for the rest of the year or quarter. "Once you're done with all the fees and the deposits for reserves, you may end up bringing many more thousands of dollars than you thought to the closing," says Keith Gumbinger, vice president of HSH.com. 3. The move Once you've officially closed, you'll need to pay for the move itself. That cost will vary considerably depending on where you live, how far you're moving, and how much stuff you'll need to haul. In general, though, expect to pay at least a few thousand dollars for professional movers. homebuying costs men It's easy to overpay for movers, so get quotes from a few companies, and hire someone who's licensed by the Federal Motor Carrier Safety Administration and has good reviews online (even better if you can get a referral from a friend). 4. Immediate costs While you may be able to put off renovations or furniture purchases, there are some costs that new homeowners face right away. You'll likely want to hire a locksmith to change the locks, for example, and there could be deposits or setup fees for getting your utilities started. As a new homeowner, you'll also now be on the hook for both routine, and unplanned maintenance costs on the home. Experienced realtors say you should expect something to break or need replacing within your first year. Set up an emergency savings account with at least six months of expenses that you can tap if your roof springs a leak or the heater suddenly stops working. That way you won't have to turn to credit cards to cover the unexpected, and you can spend some time enjoying your experience as a new homeowner, rather than worrying about how you're going to pay for it. CNNMoney (New York) First published June 26, 2017: 10:32 AM ET