Daily Real Estate News |
Friday, September 25, 2015
Sales of newly built single-family homes increased nearly 6 percent
in August, reaching a seasonally adjusted annual rate of 552,000 units,
the Commerce Department reported Thursday. That is the best monthly
figure in new-home sales since February 2008. However, the number does
still remain far off from the 706,000 unit-pace that is considered the
30-year historic average in new-home sales.
"We continue to hear from our members that more serious home buyers
are returning to the market," says Tom Woods, chairman of the National
Association of Home Builders. "Builders are gradually adding inventory
to meet future demand as they handle shortages of lots and labor."
The Northeast posted the highest gains of any other region in the
U.S., with new-home sales surging 24.1 percent in August. The South also
posted a 7.4 percent month-over-month increase and the West saw a 5.4
percent increase in new-home sales. The Midwest was the only region in
the U.S. to see new-home sales drop in August, falling 9.1 percent.
Overall, the inventory of new homes for-sale reached 216,000 units in August, a 4.7-month supply at the current sales pace.
"Today's report indicates the release of pent-up housing demand as
the overall economy strengthens, consumer confidence grows and mortgage
interest rates remain low," says David Crowe, NAHB's chief economist.
"The housing market should continue to move forward at a modest but more
persistent pace throughout the rest of 2015."
Source: National Association of Home Builders and "New Home Sales Highest Since 2008," CNNMoney (Sept. 24, 2015)
Showing posts with label http://www.sancarloshomefinder.com/mimarket/zip/94070/. Show all posts
Showing posts with label http://www.sancarloshomefinder.com/mimarket/zip/94070/. Show all posts
Friday, October 30, 2015
Tuesday, October 27, 2015
Property Taxes Are on the Rise
Daily Real Estate News |
Friday, September 25, 2015
Property tax collections have increased nearly $13 billion or by nearly 3 percent over the past year, according to a new analysis by the National Association of Home Builders.
Property tax collections – including commercial real property taxes and personal property taxes – totaled more than $503 billion over the last year. Property taxes are critical to communities' financials, making up 38.9 percent of state and local tax receipts.
"Gains for state and local non-property tax collections have outpaced increases in property tax receipts in recent years because such non-property taxes experienced the greatest declines during the recession," NAHB notes on its blog, Eye on Housing. "The impact pushed the property tax share of total receipts from the four major sources from a high of 44.9 percent in the third quarter of 2010 to just below 39 percent for the second quarter of 2015."
NAHB economists point out that the current share is close to the pre-housing boom (2001-2003) average of 38 percent.
Source: "Property Tax Collections Increase," National Association of Home Builders' Eye on Housing blog (Sept. 22, 2015)
Property tax collections have increased nearly $13 billion or by nearly 3 percent over the past year, according to a new analysis by the National Association of Home Builders.
Property tax collections – including commercial real property taxes and personal property taxes – totaled more than $503 billion over the last year. Property taxes are critical to communities' financials, making up 38.9 percent of state and local tax receipts.
"Gains for state and local non-property tax collections have outpaced increases in property tax receipts in recent years because such non-property taxes experienced the greatest declines during the recession," NAHB notes on its blog, Eye on Housing. "The impact pushed the property tax share of total receipts from the four major sources from a high of 44.9 percent in the third quarter of 2010 to just below 39 percent for the second quarter of 2015."
NAHB economists point out that the current share is close to the pre-housing boom (2001-2003) average of 38 percent.
Source: "Property Tax Collections Increase," National Association of Home Builders' Eye on Housing blog (Sept. 22, 2015)
Friday, October 23, 2015
Multigenerational Homes
By Andrea Murad
“Family dynamics can add a whole new set of variables to the equation,” says Craig Brimhall, vice president of Wealth Strategies at Ameriprise Financial (AMP). “In these types of circumstances, communication really is the key to relearning how to live with your relatives.”
Along with setting expectations, you’ll also need to figure out how everyone will physically fit into your existing home and who will pay for any needed renovations or moving costs.
Living in a multigenerational home requires compromise and understanding from all parties. “You’ve got to talk about your relationship if there are issues,” says Brimhall. “When someone’s going to live with you, the money is important, but what’s more important is if the relationship will survive or get worse. Money is just a piece of life.”
Before everyone moves in, experts have suggestions for what to consider to make this transition as seamless as possible.
Communication
“If you sit down and get everything out in the open, it goes a lot better than if you ignore issues and aren’t straightforward about the new living situation and how everyone will interact together,” says Danny Lipford, home improvement expert and host of "Today's Homeowner with Danny Lipford."
Discuss rules and expectations upfront and be as transparent as you can to avoid any misunderstandings. “These are ongoing conversations, but many times, these have to do about independence,” says John Diehl, senior vice president of Strategic Markets at Hartford Funds. Try to understand what everyone needs as much as possible, which may range from individual pantry spaces or an area to entertain friends.
Setting boundaries is important too.
“Part of it may be having frank conversations about rearing children or activities, making sure everyone is on the same page about an area to be discussed and what should be approached with caution,” says Diehl. “You’re taking people who haven’t lived together for many years and combining them back in [under one roof] — their routines and interests are different.”
Finances
Having more people under one roof adds to monthly household expenses and may require expensive renovations so everyone can fit into the home. Who pays for this can become a source of contention between family members.
“It’s a reasonable conversation to have within the family about Mom and Dad contributing to modifications to your home,” says Diehl. “[Mom and Dad] may have an existing home that they may not need any longer, but the question of how much should be used to modify that living space is legitimate because, unless that child wasn’t taking their parents in, they wouldn’t make these modifications.”
Also consider everyone’s long-term plans. Expensive renovations for a Millennial who plans to live with you temporarily may not make economic sense, experts say, but this may change the longer they live with you and if they have children.
An elderly parent, however, who plans to stay with you for anywhere from a few years to several decades may need special accommodations from the start. If you have to borrow money to make these renovations for a parent who’s unable to live independently, Brimhall suggests diverting funds that would have been used to pay for assisted living towards a loan instead. “It’s very reasonable to ask parents to pay for this if they have the extra income to pay for it,” he says.
Experts suggest having this discussion with all siblings to avoid any inheritance issues in the future, but if Mom and Dad have assets, then they are the ones who make the ultimate decision. “The parents will have a controlling say and should come to the table with an understanding that it’s a significant change for the child they’re living with,” says Diehl. Ignoring these financial issues will create other problems later on.
“To expect the same child to provide the caregiving and perhaps step away from their job to do that and have their parents be with them 24-7, to put them further into debt to upgrade their house is asking a lot,” says Diehl. “It has to be a family conversation to the extent it can be.”
Home Layout
Trendy open floor plans aren’t always best for a multigenerational home. “Coming back into a family home with an open floor plan, you’re forced to do everything together because of the space and design of the home,” says Lipford, “and it’s more successful if people have at least a place where they can retreat.”
Certain rooms are always shared though, such as kitchens and utility rooms, but setting up bedrooms to be more of a suite will help someone maintain their independence. Add an area where they can have meals in private if they choose, along with an entertainment space.
“For the sanity of everyone and the longevity of the situation, it’s always better to have that bit of separation,” says Lipford. “Certainly you have that shared space, but it’s having that option to have your own sitting area.”
Adding doors can help provide a private space within the home too, and a separate entrance helps your new housemates maintain their social life and privacy.
Lipford advises making modifications for safety if necessary, like adding grab bars, walk-in showers, tubs with seats, anti-skid surfaces, faucets with levers and lever doorknobs. Consider separate heating and cooling controls, as well as redesigning the kitchen so everyone can access countertops and microwaves.
Move or renovate?
Since bringing new people into your family home is disruptive enough, start with the cost to retrofit your home. “Then you can have a larger conversation about whether that’s the right thing to do or if you should search for another larger home in a different location that can accommodate your needs,” says Diehl.
If renovation costs are high and you’re short on time, a good option may be to rent a home with a layout that’s better suited for multigenerational use.
Tuesday, October 20, 2015
Energy Sector Fueled More Economies in 2014
Texas led the nation in having the
fastest-growing economies in 2014. Half of the 16 metro areas where the
economy grew at a 6 percent rate or more last year were located in the
Lone Star state, the Commerce Department reported this week.
Midland, Texas, a city known for its energy-rich sector, led the nation with a 24.1 percent advance in gross domestic product. Other Texas places high on the list included San Angelo, Texas, with an 11.4 percent growth, and Dallas with an 8.5 percent increase. Lake Charles, La., was No. 3 with a 10.3 percent growth, and Greely, Colo., landed at No. 4 with a 9.9 percent uptick.
The best performing economies tended to have a booming energy sector, The Wall Street Journal reports. "Natural resources and mining, which includes oil and gas extraction, was a relatively small contributor to growth, on average, in U.S. metro areas," WSJ reports. "But for areas leading overall growth, it was among the biggest drivers."
In Greely, Colo., natural resources and mining account for more than a third of that area's total economic growth.
Recent drops in oil prices over the last year likely will cause the economies in many of these fastest-growing areas to slow, WSJ reports. In Odessa, Texas, for example, the economy increased 6.3 percent in 2014 but the town has seen its unemployment rate rise to 4.5 percent in July 2015, up from 3.8 percent one year earlier.
Source: "Texas Towns Led the Country in Economic Growth in 2014," The Wall Street Journal (Sept. 23, 2015)
Fastest-Growing Economies in 2014Overall, the Commerce Department reports that economies rose in 282 of the nation's 381 metro areas last year.
- Midland, Texas
- San Angelo, Texas
- Lake Charles, La.
- Greeley, Colo.
- Wheeling, W.Va.-Ohio
- Dallas-Fort Worth-Arlington, Texas
- Bismarck, N.D.
- Victoria, Texas
- San Jose-Sunnyvale-Santa Clara, Calif.
- Corpus Christi, Texas
- Charleston, W.Va.
- Odessa, Texas
Midland, Texas, a city known for its energy-rich sector, led the nation with a 24.1 percent advance in gross domestic product. Other Texas places high on the list included San Angelo, Texas, with an 11.4 percent growth, and Dallas with an 8.5 percent increase. Lake Charles, La., was No. 3 with a 10.3 percent growth, and Greely, Colo., landed at No. 4 with a 9.9 percent uptick.
The best performing economies tended to have a booming energy sector, The Wall Street Journal reports. "Natural resources and mining, which includes oil and gas extraction, was a relatively small contributor to growth, on average, in U.S. metro areas," WSJ reports. "But for areas leading overall growth, it was among the biggest drivers."
In Greely, Colo., natural resources and mining account for more than a third of that area's total economic growth.
Recent drops in oil prices over the last year likely will cause the economies in many of these fastest-growing areas to slow, WSJ reports. In Odessa, Texas, for example, the economy increased 6.3 percent in 2014 but the town has seen its unemployment rate rise to 4.5 percent in July 2015, up from 3.8 percent one year earlier.
Source: "Texas Towns Led the Country in Economic Growth in 2014," The Wall Street Journal (Sept. 23, 2015)
Friday, October 16, 2015
'Secret' Money-Saving Home Insurance Option?
A new article at realtor.com® is
warning home owners about an influx of storm-chasing contractors who may
be indirectly pushing up home insurance prices in their area. These
contractors may knock on home owners' doors and say they need a new roof
or siding due to wind and hail damage – all cosmetic damage repairs
that may not be necessary.
Home insurance companies often classify dents, dimples, and dings in roof vents, shingles, or aluminum siding as "cosmetic damage" to a property, says Billy Van Jura, an insurance broker in Poughkeepsie, N.Y.
"When several claims for this type of work are submitted in a single region, the price everyone pays (including those who haven’t filed a claim) can increase because the insurer sees the region as having greater risk of additional claims," the article at realtor.com® cautions. "There's nothing you can do about a widespread storm that damages several homes in your area and ultimately raises everyone's rates. But you can help curb your own annual home insurance costs with a little-known option called 'cosmetic damage exclusion.'"
The American Association of Insurance Services created the cosmetic damage exclusion in 2013 – available in nearly all states – that aims at protecting consumers from scammers and tries keep home insurance rates more affordable. It makes cosmetic damage coverage optional. Home owners can then decide if they want to pay for cosmetic-only wind and hail damage. If the damage impacts the safety or structural functionality of the home, the home insurance policy will kick in.
By adding this exclusion to cosmetic damage, home owners stand to save money on their annual premiums – anywhere from $100 to $200 or more, says Troy Thompson, an independent insurance broker with Pinnacle Insurance Agency in Coon Rapids, Minn.
Hail and wind damage claims alone contribute to about 40 percent of all home insurance claims in the last five years, according to the Insurance Information Institute. And many of those claims may be for minor cosmetic repairs, such as a few nicks in the siding that home owners may be made to believe are more urgent than they actually are.
Home owners may choose to submit a claim for cosmetic damage covered by their home insurance policy, but they need to be aware that they may then be responsible for paying any applicable deductibles, insurance agents say.
Source: "The Money-Saving Home Insurance Option No One Will Ever Tell You About," realtor.com® (Sept. 23, 2015)
Home insurance companies often classify dents, dimples, and dings in roof vents, shingles, or aluminum siding as "cosmetic damage" to a property, says Billy Van Jura, an insurance broker in Poughkeepsie, N.Y.
"When several claims for this type of work are submitted in a single region, the price everyone pays (including those who haven’t filed a claim) can increase because the insurer sees the region as having greater risk of additional claims," the article at realtor.com® cautions. "There's nothing you can do about a widespread storm that damages several homes in your area and ultimately raises everyone's rates. But you can help curb your own annual home insurance costs with a little-known option called 'cosmetic damage exclusion.'"
The American Association of Insurance Services created the cosmetic damage exclusion in 2013 – available in nearly all states – that aims at protecting consumers from scammers and tries keep home insurance rates more affordable. It makes cosmetic damage coverage optional. Home owners can then decide if they want to pay for cosmetic-only wind and hail damage. If the damage impacts the safety or structural functionality of the home, the home insurance policy will kick in.
By adding this exclusion to cosmetic damage, home owners stand to save money on their annual premiums – anywhere from $100 to $200 or more, says Troy Thompson, an independent insurance broker with Pinnacle Insurance Agency in Coon Rapids, Minn.
Hail and wind damage claims alone contribute to about 40 percent of all home insurance claims in the last five years, according to the Insurance Information Institute. And many of those claims may be for minor cosmetic repairs, such as a few nicks in the siding that home owners may be made to believe are more urgent than they actually are.
Home owners may choose to submit a claim for cosmetic damage covered by their home insurance policy, but they need to be aware that they may then be responsible for paying any applicable deductibles, insurance agents say.
Source: "The Money-Saving Home Insurance Option No One Will Ever Tell You About," realtor.com® (Sept. 23, 2015)
Tuesday, October 13, 2015
4 Costly Mistakes When Building New
When building a new home, home
buyers may quickly find themselves over-budget and over-stressed. U.S.
News & World Report recently highlighted some of the most common
financial mistakes when building a new home:
1. Don't overbuild. "I meet potential clients in my office almost weekly who tell me, 'We built a 6,000 square-foot home, but now we're dying to downsize to something smaller,'" says Andy Stauffer, owner of Stauffer and Sons Construction, a homebuilder in Colorado Springs. "Most families don't even need 5,000 square feet, and a home as small as 2,500 or 3,000 square feet won't feel small if it's designed properly. A larger house is just more expensive and harder to maintain and clean. According to the National Association of Home Builders, a custom home in the U.S. costs an average of $105 per square foot to build. That means by eliminating even 500 square feet in a home that you don't need, you'll save over $50,000."
2. Consider the resale value at the beginning. "It's simply a fact of life. Most of us don't know for sure where we'll be in 10 or 15 years, as much as we'd like to think we do," Stauffer says. "I recently spoke to a real estate agent who had some clients that built a five-story custom home. They loved it, but when it was time to sell, they had to drop the price by tens of thousands of dollars and sell at a significant loss because nobody wanted to buy a five-story home and walk up and down the stairs all day long. So build your dream home, but don't make it a nightmare for someone else."
3. Weigh the upgrades. Buyers may have to teeter on too conservative or not conservative enough when choosing their extras. "You will be surprised at how quickly a $200,000 home becomes $400,000 in upgrades," Joan Fradella, a family mediator in West Palm Beach, Fla., who built a new home in 1998 told U.S. News & World Report.
Brian Brunhofter, president of Meritus Custom Builders in Chicago, says buyers need to carefully consider what upgrades are must haves. "For example, carpet can always be switched out to hardwood floors later, but a full basement is something you should decide on now," he says. That said, some buyers may want to do some of those upgrades now while lending is relatively inexpensive at the moment. As long as you don't go overboard, it may "be much more economic to stretch and plan for those features in your budget now," he says.
4. Monitor the progress. "Visit the site during construction," advises Nicole Cannon, a resident architect in Los Angeles. "Make sure things are matching your expectations and ask questions if they don’t. The worst option is to remain quiet and end up with something that you are unhappy with or have to pay to fix after the fact."
Source: "8 Financial Mistakes to Avoid When Building a New Home," U.S. News & World Report (Sept. 25, 2015)
1. Don't overbuild. "I meet potential clients in my office almost weekly who tell me, 'We built a 6,000 square-foot home, but now we're dying to downsize to something smaller,'" says Andy Stauffer, owner of Stauffer and Sons Construction, a homebuilder in Colorado Springs. "Most families don't even need 5,000 square feet, and a home as small as 2,500 or 3,000 square feet won't feel small if it's designed properly. A larger house is just more expensive and harder to maintain and clean. According to the National Association of Home Builders, a custom home in the U.S. costs an average of $105 per square foot to build. That means by eliminating even 500 square feet in a home that you don't need, you'll save over $50,000."
2. Consider the resale value at the beginning. "It's simply a fact of life. Most of us don't know for sure where we'll be in 10 or 15 years, as much as we'd like to think we do," Stauffer says. "I recently spoke to a real estate agent who had some clients that built a five-story custom home. They loved it, but when it was time to sell, they had to drop the price by tens of thousands of dollars and sell at a significant loss because nobody wanted to buy a five-story home and walk up and down the stairs all day long. So build your dream home, but don't make it a nightmare for someone else."
3. Weigh the upgrades. Buyers may have to teeter on too conservative or not conservative enough when choosing their extras. "You will be surprised at how quickly a $200,000 home becomes $400,000 in upgrades," Joan Fradella, a family mediator in West Palm Beach, Fla., who built a new home in 1998 told U.S. News & World Report.
Brian Brunhofter, president of Meritus Custom Builders in Chicago, says buyers need to carefully consider what upgrades are must haves. "For example, carpet can always be switched out to hardwood floors later, but a full basement is something you should decide on now," he says. That said, some buyers may want to do some of those upgrades now while lending is relatively inexpensive at the moment. As long as you don't go overboard, it may "be much more economic to stretch and plan for those features in your budget now," he says.
4. Monitor the progress. "Visit the site during construction," advises Nicole Cannon, a resident architect in Los Angeles. "Make sure things are matching your expectations and ask questions if they don’t. The worst option is to remain quiet and end up with something that you are unhappy with or have to pay to fix after the fact."
Source: "8 Financial Mistakes to Avoid When Building a New Home," U.S. News & World Report (Sept. 25, 2015)
Friday, October 9, 2015
The Top Exterior Finishes for New Homes Are…
Vinyl is the clear champ when it
comes to the most widely used exterior on new homes, shows Census
Bureau's Survey of Construction and an analysis by the National
Association of Home Builders.
In 2014, the latest data available, vinyl (including vinyl-covered aluminum) was the most commonly used wall material at 29 percent, followed by stucco and brick or brick veneer at 23 percent each, and fiber cement siding at 18 percent.
Vinyl siding is the most popular exterior material in five out of the nine Census divisions, with the Middle Atlantic and New England areas having the highest prevalence at 76 percent and 72 percent, respectively. In the East and North West Central divisions, vinyl accounted for more than 50 percent. In the South Atlantic, however, vinyl was used in 36 percent of new single-family homes started in 2014.
But other exterior materials can be more common in different regions of the U.S. For example, stucco was the most popular exterior wall material in the Mountain and Pacific divisions at 55 percent and 52 percent, respectively. About 40 percent of homes started in the Pacific used fiber cement siding. In the East and West South Central divisions, brick or brick veneer were popular choices, with at least 59 percent of new single-family homes started in 2014 using it as the primary exterior material.
Source: "Vinyl Is the Most Widely Used Exterior for New Homes," National Association of Home Builders Eye on Housing blog (Sept. 23, 2015)
In 2014, the latest data available, vinyl (including vinyl-covered aluminum) was the most commonly used wall material at 29 percent, followed by stucco and brick or brick veneer at 23 percent each, and fiber cement siding at 18 percent.
Vinyl siding is the most popular exterior material in five out of the nine Census divisions, with the Middle Atlantic and New England areas having the highest prevalence at 76 percent and 72 percent, respectively. In the East and North West Central divisions, vinyl accounted for more than 50 percent. In the South Atlantic, however, vinyl was used in 36 percent of new single-family homes started in 2014.
But other exterior materials can be more common in different regions of the U.S. For example, stucco was the most popular exterior wall material in the Mountain and Pacific divisions at 55 percent and 52 percent, respectively. About 40 percent of homes started in the Pacific used fiber cement siding. In the East and West South Central divisions, brick or brick veneer were popular choices, with at least 59 percent of new single-family homes started in 2014 using it as the primary exterior material.
Source: "Vinyl Is the Most Widely Used Exterior for New Homes," National Association of Home Builders Eye on Housing blog (Sept. 23, 2015)
Tuesday, October 6, 2015
Appealing to Autumn Home Buyers
Get to know the two types of shoppers in the market for a new home this season.
By on
For years, seasons and school calendars have dictated real estate markets. Many buyers search hard in the spring and early summer so they can find a house and close before the school year starts in September.
As a result, many sellers have held off listing their homes near the holidays and in the winter, favoring the warm spring months to showcase their landscaping and outdoor spaces.
These cycles worked well for decades because families were the most common buyers. But many of today’s buyers are young millennials or empty nesters. School schedules and seasons don’t typically dictate their home purchase time frame. These buyers are active in the fall and even into the winter months, including the holidays.
If you have a home to sell, fall is a great time to list it, despite conventional wisdom. With less competition than in the spring, it may even turn out to be better financially. Here’s how to appeal to the two types of home shoppers that are particularly active in the fall.
Fully connected and attached, millennials will look at listings and analyze data 24/7. Sellers must keep their home in tip-top shape and showing-ready at all times.
Don’t expect millennial buyers to wait around for an open house. Many prefer to see homes they like on their timeframe. Be ready to accommodate them.
Have great listing photos online the minute the home hits the market. Nothing is more frustrating to young buyers than to be notified via text or email about a property in an awesome location, only to find that the listing doesn’t include any photos.
Millennials are visual. Spend extra time on the photo shoot, and make sure your agent hires a professional photographer. Good photos get your buyers in the door. Give them what they want.
Many older buyers are looking to downsize, which means they either need to sell their existing home before they buy, or they will need to take a loan against their current home to purchase. Juggling finances means they come to the table with an incredible amount of stress. Give them time to process decisions.
Empty nesters may not be as responsive as other buyers, and may not communicate quickly via text, or even check email during off hours. If possible, accommodate their response times. If they feel rushed or under the gun, no matter how hot your home or how competitive the market, they will walk away.
Don’t forget, someone with five or six decades of life experience comes to the table more informed. Having been through a couple of financial and housing crises, they may be more cautious as they approach retirement and life on a fixed income.
The best salesperson knows and understands his or her buyers. The same holds true for real estate sales. As a seller, prepare to meet a buyer that may be very different from you. Plan in advance to give them what they want. Once you have a buyer on board, learn as much as you can about who they are, and work with them. What works for some buyers may not work for others.
By on
For years, seasons and school calendars have dictated real estate markets. Many buyers search hard in the spring and early summer so they can find a house and close before the school year starts in September.
As a result, many sellers have held off listing their homes near the holidays and in the winter, favoring the warm spring months to showcase their landscaping and outdoor spaces.
These cycles worked well for decades because families were the most common buyers. But many of today’s buyers are young millennials or empty nesters. School schedules and seasons don’t typically dictate their home purchase time frame. These buyers are active in the fall and even into the winter months, including the holidays.
If you have a home to sell, fall is a great time to list it, despite conventional wisdom. With less competition than in the spring, it may even turn out to be better financially. Here’s how to appeal to the two types of home shoppers that are particularly active in the fall.
Marketing to millennials
For millennials, the market is always on. As long as their smartphone or tablet is within reach, they are active buyers.Fully connected and attached, millennials will look at listings and analyze data 24/7. Sellers must keep their home in tip-top shape and showing-ready at all times.
Don’t expect millennial buyers to wait around for an open house. Many prefer to see homes they like on their timeframe. Be ready to accommodate them.
Have great listing photos online the minute the home hits the market. Nothing is more frustrating to young buyers than to be notified via text or email about a property in an awesome location, only to find that the listing doesn’t include any photos.
Millennials are visual. Spend extra time on the photo shoot, and make sure your agent hires a professional photographer. Good photos get your buyers in the door. Give them what they want.
Attracting empty nesters
Empty nesters tend to be more old school than millennials. They can be slower and more methodical about a purchase. Don’t rush them.Many older buyers are looking to downsize, which means they either need to sell their existing home before they buy, or they will need to take a loan against their current home to purchase. Juggling finances means they come to the table with an incredible amount of stress. Give them time to process decisions.
Empty nesters may not be as responsive as other buyers, and may not communicate quickly via text, or even check email during off hours. If possible, accommodate their response times. If they feel rushed or under the gun, no matter how hot your home or how competitive the market, they will walk away.
Don’t forget, someone with five or six decades of life experience comes to the table more informed. Having been through a couple of financial and housing crises, they may be more cautious as they approach retirement and life on a fixed income.
The best salesperson knows and understands his or her buyers. The same holds true for real estate sales. As a seller, prepare to meet a buyer that may be very different from you. Plan in advance to give them what they want. Once you have a buyer on board, learn as much as you can about who they are, and work with them. What works for some buyers may not work for others.
Tuesday, September 29, 2015
7 Most, Least Affordable College Towns
Daily Real Estate News |
Wednesday, August 26, 2015
College towns are often viewed as stable real estate investments, but how far your money goes can fluctuate greatly in some areas. Realtor.com® recently ranked more than 300 college towns by median home price to come up with the most expensive and least expensive places to live. Realtor.com® considered a “college town” where student residents number more than 5,000 and make up more than 20 percent of the town’s total population.
Realtor.com® found the following markets to be the most affordable college towns:
1. Munice, Ind.
Median home price: $77,900
Median home price: $81,500
3. Macomb, Ill.
Median home price: $100,900
4. Kirksville, Mo.
Median home price: $109,900
5. Big Rapids, Mich.
Median home price: $114,000
6. Kalamazoo, Mich.
Median home price: $117,900
7. Cortland, N.Y.
Median home price: $120,950
On the other hand, the following college towns topped realtor.com®’s rankings as the most expensive:
1. Berkley, Calif.
Median home price: $849,000
2. Santa Cruz, Calif.
Median home price: $814,000
3. Boulder, Colo.
Median home price: $789,000
4. San Luis Obispo, Calif.
Median home price: $690,000
5. Cambridge, Mass.
Median home price: $685,000
6. Claremont, Calif.
Median home price: $675,000
7. Princeton, N.J.
Median home price: $650,000
Source: “America’s Most and Least Expensive College Towns,” realtor.com® (Aug. 25, 2015)
College towns are often viewed as stable real estate investments, but how far your money goes can fluctuate greatly in some areas. Realtor.com® recently ranked more than 300 college towns by median home price to come up with the most expensive and least expensive places to live. Realtor.com® considered a “college town” where student residents number more than 5,000 and make up more than 20 percent of the town’s total population.
Realtor.com® found the following markets to be the most affordable college towns:
1. Munice, Ind.
Median home price: $77,900
Learn how to help parents—or yourself—tackle rising college costs by investing in real estate.2. Charleston, Ill.
Median home price: $81,500
3. Macomb, Ill.
Median home price: $100,900
4. Kirksville, Mo.
Median home price: $109,900
5. Big Rapids, Mich.
Median home price: $114,000
6. Kalamazoo, Mich.
Median home price: $117,900
7. Cortland, N.Y.
Median home price: $120,950
On the other hand, the following college towns topped realtor.com®’s rankings as the most expensive:
1. Berkley, Calif.
Median home price: $849,000
2. Santa Cruz, Calif.
Median home price: $814,000
3. Boulder, Colo.
Median home price: $789,000
4. San Luis Obispo, Calif.
Median home price: $690,000
5. Cambridge, Mass.
Median home price: $685,000
6. Claremont, Calif.
Median home price: $675,000
7. Princeton, N.J.
Median home price: $650,000
Source: “America’s Most and Least Expensive College Towns,” realtor.com® (Aug. 25, 2015)
Friday, September 25, 2015
Should I Wait to Put Down a Bigger Down Payment?
Some experts are advising that first time and move-up buyers wait
until they save up 20% before they move forward with their decision
to purchase a home. One of the main reasons they suggest waiting is that
a buyer must purchase private mortgage insurance if they have less than the 20%. That increases the monthly payment the buyer will be responsible for.
In a recent article, Freddie Mac explained what this would mean for a $200,000 house:
However, we must look at other aspects of the purchase to see if it truly makes sense to wait.
If you decide to wait until you have saved up a 20% down payment, the money you would have saved by avoiding the PMI payment could be surpassed by the additional price you eventually pay for the home. Prices are expected to increase by more than 3% each of the next five years.
Saving will also be more difficult if you are renting, as rents are also projected to increase over the next several years. Zillow Chief Economist Dr. Svenja Gudell explained in a recent report:
In a recent article, Freddie Mac explained what this would mean for a $200,000 house:
However, we must look at other aspects of the purchase to see if it truly makes sense to wait.
Are you actually saving money by waiting?
CoreLogic has recently projected that home values will increase by 4.3% over the next 12 months. Let’s compare the extra cost of PMI against the projected appreciation:
If you decide to wait until you have saved up a 20% down payment, the money you would have saved by avoiding the PMI payment could be surpassed by the additional price you eventually pay for the home. Prices are expected to increase by more than 3% each of the next five years.
Saving will also be more difficult if you are renting, as rents are also projected to increase over the next several years. Zillow Chief Economist Dr. Svenja Gudell explained in a recent report:
"Our research found that unaffordable rents are making it hard for people to save for a down payment ... There are good reasons to rent temporarily – when you move to a new city, for example – but from an affordability perspective, rents are crazy right now. If you can possibly come up with a down payment, then it's a good time to buy a home and start putting your money toward a mortgage."Laura Kusisto of the Wall Street Journal recently agreed with Dr. Gudell:
“For some renters there may be a way out: Buy a house. Mortgages remain very affordable.”
Mortgage rates are expected to rise…
Freddie Mac is projecting that mortgage interest rates will increase by almost a full percentage point over the next 12 months. That will also impact your mortgage payment if you wait.Bottom Line
Sit with a real estate or mortgage professional to truly understand whether you should buy now or wait until you save the 20%.Tuesday, September 22, 2015
Freddie: ‘Housing Market Strongest in Years’
Daily Real Estate News |
Thursday, August 27, 2015
The housing market is gradually showing signs of stabilizing, as two additional states – Arkansas and Tennessee – as well as four additional metro areas are added to Freddie Mac’s latest Multi-Indicator Market Index reading. The added metros are Omaha, Neb.; Scranton, Pa.; Chattanooga, Tenn.; and Madison, Wis.
Since hitting an all-time low in October 2010, the national MiMi has rebounded 35 percent. However, it remains significantly off from its high of 121.7. It’s currently at a value of 80.3, a housing market considered mostly in a stable range.
"Housing markets are the strongest they've been in years with the National MiMi above 80 for the first time since 2008,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Nationally, all MiMi indicators are heading in the right direction. Robust home buyer demand has put total home sales on pace for the best year since 2007 and look for that trend to continue as the MiMi purchase applications indicator remains on the upswing. The West has been especially strong, with many markets posting double-digit growth in their MiMi purchase applications indicator compared to a year ago."
Still, home prices are about 7 percent below peak values nationally, Kiefer notes. However, home prices in many markets are soaring to all-time highs, and that along with low interest rates, are helping to support home buyer affordability, he says.
Also, "mortgage delinquencies are coming down rapidly, but are still high in many markets,” Kiefer says. “Those markets hardest hit by the Great Recession, including many in Florida, are rebounding but they still need to improve to get delinquencies back in line with their benchmark historic averages. The key driver of all this recovery has been solid job growth, with 96 out of 100 metros and all states within range of their benchmark historic average unemployment rate."
Freddie Mac’s latest MiMi reading showed that 28 of the 50 states, as well as the District of Columbia, have values in a stable range. The top five are: Washington, D.C.; North Dakota; Montana; Hawaii; and California and Utah (tied).
What’s more, 42 of the 100 metro areas have MiMi values in a stable range. Ranking in the top five are: Fresno, Calif.; Austin, Texas; Honolulu; Salt Lake City; and Los Angeles.
Source: Freddie Mac
The housing market is gradually showing signs of stabilizing, as two additional states – Arkansas and Tennessee – as well as four additional metro areas are added to Freddie Mac’s latest Multi-Indicator Market Index reading. The added metros are Omaha, Neb.; Scranton, Pa.; Chattanooga, Tenn.; and Madison, Wis.
Read more: A 10-Year Housing Surge on the Horizon?The MiMi measures the stability of the nation’s housing market by comparing its long-term stable range to current ratios in home purchase applications, debt-to-income ratios, on-time mortgage payments, and employment.
Since hitting an all-time low in October 2010, the national MiMi has rebounded 35 percent. However, it remains significantly off from its high of 121.7. It’s currently at a value of 80.3, a housing market considered mostly in a stable range.
"Housing markets are the strongest they've been in years with the National MiMi above 80 for the first time since 2008,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Nationally, all MiMi indicators are heading in the right direction. Robust home buyer demand has put total home sales on pace for the best year since 2007 and look for that trend to continue as the MiMi purchase applications indicator remains on the upswing. The West has been especially strong, with many markets posting double-digit growth in their MiMi purchase applications indicator compared to a year ago."
Still, home prices are about 7 percent below peak values nationally, Kiefer notes. However, home prices in many markets are soaring to all-time highs, and that along with low interest rates, are helping to support home buyer affordability, he says.
Also, "mortgage delinquencies are coming down rapidly, but are still high in many markets,” Kiefer says. “Those markets hardest hit by the Great Recession, including many in Florida, are rebounding but they still need to improve to get delinquencies back in line with their benchmark historic averages. The key driver of all this recovery has been solid job growth, with 96 out of 100 metros and all states within range of their benchmark historic average unemployment rate."
Freddie Mac’s latest MiMi reading showed that 28 of the 50 states, as well as the District of Columbia, have values in a stable range. The top five are: Washington, D.C.; North Dakota; Montana; Hawaii; and California and Utah (tied).
What’s more, 42 of the 100 metro areas have MiMi values in a stable range. Ranking in the top five are: Fresno, Calif.; Austin, Texas; Honolulu; Salt Lake City; and Los Angeles.
Source: Freddie Mac
Friday, September 18, 2015
52% Likely to Buy in the Next 5 Years!! Are You?
According to the recently released BMO Harris Bank Home Buying Report,
52% of Americans say they are likely to buy a home in the next five
years. Americans surveyed for the report said they would be willing to
pay an average of $296,000 for a home and would average a 21% down
payment. The report also had other interesting revelations.
Those Looking to Buy
- 74% of those looking to buy a new home will consult a real estate agent
- 59% said they will visit online real estate websites
- 37% will seek recommendations from friends and family
- 78% plan to get pre-approved before seriously searching for a home
Those Who Already Own
- 75% of current home owners set a budget before looking for a home. 16% ended up spending less while 13% went over their budget.
- 63% of American homeowners spent under six months looking for a new home before they made a purchase.
- 8% bought their home without participating in an active real estate search - or even any plan to buy at all - because a specific property caught their attention.
Why are More People not Planning their Next Move?
Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? A recent article by Fannie Mae may give us that answer, there is evidence that a large numbers of homeowners are dramatically underestimating the equity they have in their current home. The report explains:“Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes.”
Bottom Line
Perhaps it is time to sit with a real estate professional to determine the actual equity you have in your house and take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted.Wednesday, September 16, 2015
El Niño: 5 tips for preparing for a wet winter
After
four years of drought, Californians could soon be contending with a wet
winter as one of the strongest El Niños on record is brewing in the
Pacific Ocean. Here are five tips for preparing for the possibility of a
season of heavy storms:
Jonathan Castillo, a roofer with Town and County Roofing and Solar,
installs a roof on a home in Alamo, Calif., on Wednesday, Sept. 2, 2015.
The prospect of a heavy winter deluge from El Nino-driven rain has
homeowners scrambling to get the roofs on their homes buttoned up and
roofers say business is the best it's been in years. (Anda Chu/Bay Area
News Group)
(
ANDA CHU
)
Tuesday, September 15, 2015
Texas Dominates Healthiest Markets List
Daily Real Estate News |
Thursday, August 27, 2015
Six of the top 10 healthiest housing markets are in Texas, according to new rankings released by WalletHub, which compared 300 U.S. areas across 14 key metrics to find the nation’s top performers. WalletHub factored in median home price appreciation, home prices as percentage of income, job growth, and more to reach its rankings.
Many small cities – those with fewer than 150,000 people – topped the list.
Take a look at the top 15 “healthiest” housing markets, according to WalletHub.
Six of the top 10 healthiest housing markets are in Texas, according to new rankings released by WalletHub, which compared 300 U.S. areas across 14 key metrics to find the nation’s top performers. WalletHub factored in median home price appreciation, home prices as percentage of income, job growth, and more to reach its rankings.
Many small cities – those with fewer than 150,000 people – topped the list.
Take a look at the top 15 “healthiest” housing markets, according to WalletHub.
Source: WalletHub
Friday, September 11, 2015
Rental Satisfaction Drives Buying Decisions
Daily Real Estate News |
Thursday, August 27, 2015
Satisfaction over the rental experience is a major factor in deciding whether a renter will decide to purchase a home, according to Freddie Mac research.
Renters who are the most satisfied with their rental experience were found to be more likely to continue renting (68%) than to purchase a home (32%), the study showed.
The number of U.S. renter households is up again for the tenth consecutive year, according to the U.S. Census Bureau. More households of all sizes, income levels, and age ranges now rent their homes. Renters are leading household formation, which is expected to keep climbing due to the improving economy, millennials continuing into adulthood, and immigration, Brickman says.
The study also found that single-family renters are significantly more likely to say they expect to buy than multifamily renters (53% vs 36%) when asked about their plans in the next three years. In the U.S. about 15 million households rent a single-family house and 25 million rent an apartment, according to U.S. Census Data. Sixty-seven percent of apartment renters report being satisfied compared to 60% of single-family property renters.
Source: “Dissatisfaction Will Make Buyers of Multifamily Renters,” CoStar Group (Aug. 26, 2015)
Satisfaction over the rental experience is a major factor in deciding whether a renter will decide to purchase a home, according to Freddie Mac research.
Renters who are the most satisfied with their rental experience were found to be more likely to continue renting (68%) than to purchase a home (32%), the study showed.
Read more: Why Renters May Be in Trouble"As we gather data each quarter, we are finding the old perception that renting is something people do until they buy is not always true,” says David Brickman, executive vice president of Freddie Mac Multifamily. “The trend shows that satisfied renters are more likely to continue renting, even as we are seeing rising rents in the market. Dissatisfaction may drive renters to buy, and we are seeing a slight decrease in satisfaction among single-family renters. We will continue to monitor this for stronger indicators and trends, but for now, the single-family rental home market may be a good place to look to find potential home buyers."
The number of U.S. renter households is up again for the tenth consecutive year, according to the U.S. Census Bureau. More households of all sizes, income levels, and age ranges now rent their homes. Renters are leading household formation, which is expected to keep climbing due to the improving economy, millennials continuing into adulthood, and immigration, Brickman says.
The study also found that single-family renters are significantly more likely to say they expect to buy than multifamily renters (53% vs 36%) when asked about their plans in the next three years. In the U.S. about 15 million households rent a single-family house and 25 million rent an apartment, according to U.S. Census Data. Sixty-seven percent of apartment renters report being satisfied compared to 60% of single-family property renters.
Source: “Dissatisfaction Will Make Buyers of Multifamily Renters,” CoStar Group (Aug. 26, 2015)
Tuesday, September 8, 2015
Foreclosures, Cash Sales Continue to Recede
Daily Real Estate News |
Thursday, August 27, 2015
The number of properties in-foreclosure as well as cash sales fell to multiyear lows in July while overall home sales continued to perform strongly, according to RealtyTrac’s July 2015 U.S. Home Sales Report, released Thursday.
The National Association of REALTORS® reported last week that its data showed foreclosures and short sales in July dropped to the lowest share since it began tracking such data in October 2008. In July, foreclosures sold, on average, for a discount of 17 percent below market value while short sales sold for an average discount of 12 percent, according to NAR.
The percentage of all-cash sales is also dropping year over year. NAR reported the percentage of all-cash sales was 23 percent of transactions in July, down from 29 percent a year ago. The number of cash sales is falling as the share of individual investors – who tend to account for the biggest bulk of cash sales – is falling to 13 percent of the market, down from 16 percent a year ago.
RealtyTrac’s data also showed all-cash buyers at about 23 percent of all single-family home and condo sales in July, marking the lowest percentage of cash sales in a month since July 2008, RealtyTrac reports.
“While the stock market may be on a roller coaster as of late, the housing market is still on solid ground, with the eight-year low in cash sales combined with the eight-year high in overall sales volume in the first half of the year evidence that housing is successfully transitioning from an investor-driven recovery to one that is drawing in traditional buyers as a good foundation for sustainable growth going forward,” says Daren Blomquist, vice president at RealtyTrac. “That’s not to say there are no cracks in the foundation of this recovery, the top three of which are housing affordability — or lack thereof in some high-flying markets — along with overdependence on capricious cash buyers — both foreign and domestic — in some markets, and the persistent overhang of underwater home owners who continue to represent heightened default risk given any future economic shockwaves.”
The following metros had the highest share of in-foreclosure properties in July, according to RealtyTrac, were:
The number of properties in-foreclosure as well as cash sales fell to multiyear lows in July while overall home sales continued to perform strongly, according to RealtyTrac’s July 2015 U.S. Home Sales Report, released Thursday.
NAR's Latest Report: 6 Key Housing Stats to Gauge the MarketThe sale of homes sold while in the foreclosure process – excluding bank-owned properties – comprised 6.4 percent of all single-family and condo sales in July, the lowest monthly share since RealtyTrac began tracking in January 2000.
The National Association of REALTORS® reported last week that its data showed foreclosures and short sales in July dropped to the lowest share since it began tracking such data in October 2008. In July, foreclosures sold, on average, for a discount of 17 percent below market value while short sales sold for an average discount of 12 percent, according to NAR.
The percentage of all-cash sales is also dropping year over year. NAR reported the percentage of all-cash sales was 23 percent of transactions in July, down from 29 percent a year ago. The number of cash sales is falling as the share of individual investors – who tend to account for the biggest bulk of cash sales – is falling to 13 percent of the market, down from 16 percent a year ago.
RealtyTrac’s data also showed all-cash buyers at about 23 percent of all single-family home and condo sales in July, marking the lowest percentage of cash sales in a month since July 2008, RealtyTrac reports.
“While the stock market may be on a roller coaster as of late, the housing market is still on solid ground, with the eight-year low in cash sales combined with the eight-year high in overall sales volume in the first half of the year evidence that housing is successfully transitioning from an investor-driven recovery to one that is drawing in traditional buyers as a good foundation for sustainable growth going forward,” says Daren Blomquist, vice president at RealtyTrac. “That’s not to say there are no cracks in the foundation of this recovery, the top three of which are housing affordability — or lack thereof in some high-flying markets — along with overdependence on capricious cash buyers — both foreign and domestic — in some markets, and the persistent overhang of underwater home owners who continue to represent heightened default risk given any future economic shockwaves.”
The following metros had the highest share of in-foreclosure properties in July, according to RealtyTrac, were:
- Salisbury, N.C.: 23.6%
- Rockford, Ill.: 17.1%
- Morehead City, N.C.: 16.3%
- Baltimore: 16.1%
- Toledo, Ohio: 15.2%
- Chicago: 14.7%
- New York: 43.2%
- Orlando, Fla.: 37.6%
- Tampa, Fla.: 35.3%
- Las Vegas: 32.6%
- Rochester, N.Y.: 32.6%
- Detroit: 31.9%
Sunday, September 6, 2015
3534 Casanova, San Mateo
3534 Casanova, San Mateo - helped this buyer that relocated from Seattle
find the perfect new home on the Peninsula. If you or anyone you know
is looking to buy or sell on the Peninsula, we'll be happy to help them
as well!
Friday, September 4, 2015
Tiny Houses Create Expanding Niche
Daily Real Estate News |
Thursday, August 27, 2015
Whether it's for a starter home or a second home, some buyers take the idea of a "little place of their own" seriously — looking for entire houses that may be smaller than some living rooms. Five of the most interesting tiny houses were recently featured by housing news site Curbed.com.
Because of the tight space of these floor plans, most units come with at least some custom amenities. But if your buyers want even more minimalism, Monarch Tiny Homes can supply a 170-square-foot "half and half" for only $22,000 with no interior furnishings. The structure, says Xie, includes "plywood flooring, recycled siding, self-contained composting toilet, LED lighting, [and] mostly bare interiors ready for your own vision."
And those wanting a tiny home with serious elbow room can investigate customizable options from Tiny Heirloom Homes. Options include "personalized exterior and interior design choices," and the base model includes "granite countertops, real-wood or bamboo flooring, stainless steel appliances, [and a] washer/dryer combo."
See the other tiny homes with photos and details of their options at Curbed.com.
Source: "5 Impressive Tiny Houses You Can Order Right Now," Curbed.com
Whether it's for a starter home or a second home, some buyers take the idea of a "little place of their own" seriously — looking for entire houses that may be smaller than some living rooms. Five of the most interesting tiny houses were recently featured by housing news site Curbed.com.
Thinking SmallThe five featured build-to-order homes — many of which come on wheels — range in size from a cozy 140 square feet to an expansive 269 square feet. The colorful Toy Box Tiny House, for example, can be had for as little as $35,000 and features a "sliding glass door, built-in planters, reconfigurable storage/seating cubes, floating cabinet for cooking ingredients, [and a] loft big enough for a king-size bed," reports Curbed's Jenny Xie.
Hot Trend Watch: Tiny Homes
Will Seattle's 'Tiny House' Be Overpowered?
Help Your Clients' Tiny Space Feel Bigger
Because of the tight space of these floor plans, most units come with at least some custom amenities. But if your buyers want even more minimalism, Monarch Tiny Homes can supply a 170-square-foot "half and half" for only $22,000 with no interior furnishings. The structure, says Xie, includes "plywood flooring, recycled siding, self-contained composting toilet, LED lighting, [and] mostly bare interiors ready for your own vision."
And those wanting a tiny home with serious elbow room can investigate customizable options from Tiny Heirloom Homes. Options include "personalized exterior and interior design choices," and the base model includes "granite countertops, real-wood or bamboo flooring, stainless steel appliances, [and a] washer/dryer combo."
See the other tiny homes with photos and details of their options at Curbed.com.
Source: "5 Impressive Tiny Houses You Can Order Right Now," Curbed.com
Tuesday, September 1, 2015
Where Americans Are Moving To
Daily Real Estate News |
Thursday, August 27, 2015
About 18 percent of people who moved last year – or 8.5 million – moved from one large metro area to another. But also a growing number moved to a smaller city that was not too far away from their prior residence, U.S. Census Bureau data shows.
The top destination of movers continues to be Los Angeles, which had nearly 245,000 people relocating from other metro areas. Other top moving destinations included New York and Washington, D.C.
However, these large cities appear to be losing more residents than they’re gaining. For example, nearly 400,000 people moved out of New York last year and 340,000 left Los Angeles.
On the other hand, smaller cities like Austin, Texas, and Riverside, Calif., are gaining more residents – more people are moving in than out.
Realtor.com® reports the following are the top 10 city-to-city mitigation paths from 2009 to 2013:
About 18 percent of people who moved last year – or 8.5 million – moved from one large metro area to another. But also a growing number moved to a smaller city that was not too far away from their prior residence, U.S. Census Bureau data shows.
The top destination of movers continues to be Los Angeles, which had nearly 245,000 people relocating from other metro areas. Other top moving destinations included New York and Washington, D.C.
However, these large cities appear to be losing more residents than they’re gaining. For example, nearly 400,000 people moved out of New York last year and 340,000 left Los Angeles.
On the other hand, smaller cities like Austin, Texas, and Riverside, Calif., are gaining more residents – more people are moving in than out.
Realtor.com® reports the following are the top 10 city-to-city mitigation paths from 2009 to 2013:
- Los Angeles, Calif. to Riverside, Calif.: 90,494
- Riverside, Calif. to Los Angeles, Calif.: 54,711
- New York, N.Y. to Philadelphia, Pa.: 26,957
- San Jose, Calif. to San Francisco, Calif.: 24,536
- Washington, D.C. to Baltimore, Md.: 22,944
- New York, N.Y. to Miami, Fla.: 22,226
- Baltimore, Md. to Washington, D.C.: 21,457
- San Diego, Calif. to Riverside, Calif.: 19,667
- Philadelphia, Pa. to New York, N.Y.: 19,336
- San Francisco, Calif. to San Jose, Calif.: 18,680
Friday, August 28, 2015
5 Repairs You Might Encounter During the First 5 Years of Owning a Home
Fact: Things in your home can break. Faucets might leak, windows can stick and ceiling fan motors occasionally burn out.
Whether your home is newly constructed or listed on the historic registry, repairs will be needed. Here are five common household problems you’re likely to encounter within the first five years of owning your home, plus tips for dealing with the repairs:
1. Leaky faucets, running toilets
Your toilet flushes fine, but it won’t stop running. Or, perhaps you have a bathroom faucet that drips, drips, drips.Those leaks are annoying, but they can also be very costly. According to the U.S. Environmental Protection Agency, the average household’s leaks waste more than 10,000 gallons of water each year; 10 percent of homes have leaks that waste 90 gallons or more per day. Worn-out toilet flappers, dripping faucets and leaking valves are among the most common types of residential leaks.
To check for leaks in your home, the EPA suggests taking these steps:
- Check your water meter before and after a two-hour period when no water is being used. If the meter changes at all, you probably have a leak.
- Identify toilet leaks by placing a drop of food coloring in the toilet tank and waiting 15 minutes. If any color shows up in the bowl, you have a leak. (Flush immediately after the experiment to avoid staining the tank.)
- Do a visual inspection of pipes, faucet gaskets and pipe fittings. If there’s water on the outside of the pipes or gaskets, you likely have a leak.
2. Peeling, cracked paint and siding
Beyond keeping your house looking great, exterior paint protects your home from wind, rain and insects. If exterior paint is chalky, peeling or cracked, or caulk around windows and doors has failed, your home’s key structural components are at risk. Most homeowners can handle small repairs such as sanding and painting trim around windows and doors.If you need a full exterior paint job, you’ll likely need to hire a professional. It could cost $2,600 to $7,500 to have a 2,400-square-foot house professionally painted, depending on your location and the amount of prep required. Remember that the longer you wait to repaint, the greater the likelihood that water and pests can damage your home.
Other types of exterior materials — vinyl, stucco and brick — also should be inspected and repaired on a regular basis.
3. Jammed disposal
According to the International Association of Certified Home Inspectors, the average household garbage disposal has a life expectancy of about 10 years — less if you use it a lot or don’t properly maintain it.If the disposal is jammed or clogged, you may be able to fix it yourself, following instructions in your owner’s manual.
If the unit grinds poorly or is unreasonably noisy you may need to replace the blade, impeller or motor; this should be done by a pro. Because these types of repairs can be expensive, it’s often cheaper and faster to replace the entire unit. Expect to pay $325 to $400 to have a mid-grade disposal professionally installed.
4. Nail pops
If the walls of your brand-new home are dotted with unattractive mounds, you’ve got nail pops. In most cases, drywall nail pops are cosmetic defects that result when the lumber used to build the house dries and shrinks, oh so slightly. This shrinkage often causes the heads of drywall nails to push the finishing compound loose, allowing the nail heads to “pop” out of the wall. Nail pops most often appear near the corner of a wall or ceiling.If your home is still under warranty, you should ask your builder to repair these blemishes. If you need or want to tackle the job yourself, you can. Simply use a punch to drive the nail deeper, then apply new finishing compound, sand and repaint.
5. Concrete cracks
Extreme weather, improper mixing, shrinkage during curing, pressure from vehicle loads and tree roots can all play a role in the cracks that form in concrete driveways and slabs. Not only are these cracks ugly, they can allow water and insects to infiltrate and lead to more significant damage over time.Sinking concrete or widespread cracking could indicate a serious problem requiring the services of a professional and could cost upward of $2,000 to fix.
Products ranging from epoxy injections and concrete caulk to polymer-based resurfacers are available for homeowners who want to repair cracked driveways or slabs themselves.
No house is perfect, and no building material lasts forever. By keeping tabs on your home’s wellbeing and preforming regular home maintenance tasks, you can save yourself money and aggravation.
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