HOME SELLER AUDIT
AUSTIN (Austin American-Statesman) – To encourage sellers and buyers to make their houses more energy efficient, owners of homes older than ten years will soon be required to conduct energy audits on their homes before putting them on the market.
The city ordinance, which takes effect Monday, will not require sellers to make any improvements, but it will require them to disclose the results to prospective buyers.
The ordinance also has provisions for multifamily properties and commercial buildings but does not apply to condominiums or mobile homes. Owners who have made certain improvements under Austin Energy programs in the previous ten years also can disregard the ordinance.
The audits are expected to cost $200 to $300 for a typical home of 1,800 sf or less.
The reports, which will cover issues such as how much insulation the house has and the condition of the heating and cooling equipment, must be done by auditors who are certified by the Building Performance Institute.
Violations of the ordinance will be a Class-C misdemeanor punishable by a fine of up to $500.
Copyright 2009. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.
Friday, May 29, 2009
Thursday, May 14, 2009
Daily Real Estate News | May 12, 2009 | Share
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
Wednesday, May 13, 2009
ServiceMagic - Laminate: Hardwood's Killer or Colleague?
ServiceMagic - Laminate: Hardwood's Killer or Colleague?: "Laminate: Hardwood's Killer or Colleague?"
Friday, May 8, 2009
Real Estate 411 – Top 10 Reasons to BUY or SELL Real Estate in Today’s Market
1. $8000 Tax Credit for first-time homebuyers – there is no doubt that the tax credit is responsible for a good percentage of the increase we are seeing in real estate buying.
Rules for 2009 first-time homebuyers tax credit
Does not have to be repaid unless the home is sold within three years.
Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.
Available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.
Restricted by income; phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.
Tax credit is for up to 10 percent of the purchase price, up to a maximum of $8,000. For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000
The credit can be taken on 2008 taxes even when the purchase is made in 2009.
2. Interest rates are the lowest they have been in years!
Because the interest rates are near historical lows, not buying now could have you experiencing regret later. A 30-year loan of $250,000 at an interest rate of 7% in comparison to 6% will cost you an additional $60,000. This is truly a great time to buy real estate
3. “Trade up” using your equity.
According to the National Association of Realtors, over 79% of the 50+ population are homeowners. Of those, 67% own their homes free and clear (mortgage-free). Are you one of those? If so, you are in an ideal financial position to upgrade your lifestyle while the prices are right and the selection is abundant.
4. Low price, low interest rate today = larger gains in the future
Prices are low today and that mixed with low interest rates is not only a “good buy” but a great investment for the future! These prices and rates will NOT stay this low, the natural swing will bring them back up, and that’s why buying real estate today is a good idea!
5. Builder Incentives
If you want to buy a newly constructed home, this is the time. With the builder inventories being high, there are great concessions being given to attract the many buyers in this market. But as the inventories decrease, so will the concessions!
6. Sellers are motivated
In hot sellers’ markets, everything tends to get rushed: the house hunting, the offer-writing, the negotiating… everything! Now, a buyer can take his/her time looking through available inventory and visit several homes before making an offer. Many sellers are willing to negotiate and work towards a win-win situation that works for both parties.
7. There are a lot of buyers in the market
Sell now when there are fewer sellers and more buyers. With more buyers in the market your home becomes highly sought after in your market with more chances of pairing up with the right buyer.
8. Good inventory to choose from
With a high inventory of properties on the market, including new home construction and foreclosures, you have choices that buyers just a few years ago would have loved.
9. Good market for investors
With the low prices and the low interest rates and the abundant inventory of homes and foreclosures, this is a great time for investors. Now is the time to start building wealth with real estate, start developing your own portfolio of homes.
10. You can build long-term wealth
60% of the average homeowner’s wealth comes from their home’s equity*. You might be wondering if buying a home right now is a smart financial decision. The fact is homeownership is the key to building long-term wealth, no matter when someone buys. Studies show that over time most homeowners will steadily build equity. Of course, owning a home is much more than a way to gain a financial edge; it’s also where you raise a family and create life-long memories. Home ownership is an investment in YOUR future. According to Housing Market Facts published by National Association of Realtors, the average homeowner’s net worth is 46 times the net worth of a renter! The average homeowner’s net worth is $171,000 compared to $4,800 for renters.
Rules for 2009 first-time homebuyers tax credit
Does not have to be repaid unless the home is sold within three years.
Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.
Available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.
Restricted by income; phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.
Tax credit is for up to 10 percent of the purchase price, up to a maximum of $8,000. For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000
The credit can be taken on 2008 taxes even when the purchase is made in 2009.
2. Interest rates are the lowest they have been in years!
Because the interest rates are near historical lows, not buying now could have you experiencing regret later. A 30-year loan of $250,000 at an interest rate of 7% in comparison to 6% will cost you an additional $60,000. This is truly a great time to buy real estate
3. “Trade up” using your equity.
According to the National Association of Realtors, over 79% of the 50+ population are homeowners. Of those, 67% own their homes free and clear (mortgage-free). Are you one of those? If so, you are in an ideal financial position to upgrade your lifestyle while the prices are right and the selection is abundant.
4. Low price, low interest rate today = larger gains in the future
Prices are low today and that mixed with low interest rates is not only a “good buy” but a great investment for the future! These prices and rates will NOT stay this low, the natural swing will bring them back up, and that’s why buying real estate today is a good idea!
5. Builder Incentives
If you want to buy a newly constructed home, this is the time. With the builder inventories being high, there are great concessions being given to attract the many buyers in this market. But as the inventories decrease, so will the concessions!
6. Sellers are motivated
In hot sellers’ markets, everything tends to get rushed: the house hunting, the offer-writing, the negotiating… everything! Now, a buyer can take his/her time looking through available inventory and visit several homes before making an offer. Many sellers are willing to negotiate and work towards a win-win situation that works for both parties.
7. There are a lot of buyers in the market
Sell now when there are fewer sellers and more buyers. With more buyers in the market your home becomes highly sought after in your market with more chances of pairing up with the right buyer.
8. Good inventory to choose from
With a high inventory of properties on the market, including new home construction and foreclosures, you have choices that buyers just a few years ago would have loved.
9. Good market for investors
With the low prices and the low interest rates and the abundant inventory of homes and foreclosures, this is a great time for investors. Now is the time to start building wealth with real estate, start developing your own portfolio of homes.
10. You can build long-term wealth
60% of the average homeowner’s wealth comes from their home’s equity*. You might be wondering if buying a home right now is a smart financial decision. The fact is homeownership is the key to building long-term wealth, no matter when someone buys. Studies show that over time most homeowners will steadily build equity. Of course, owning a home is much more than a way to gain a financial edge; it’s also where you raise a family and create life-long memories. Home ownership is an investment in YOUR future. According to Housing Market Facts published by National Association of Realtors, the average homeowner’s net worth is 46 times the net worth of a renter! The average homeowner’s net worth is $171,000 compared to $4,800 for renters.
Thursday, May 7, 2009
Dallas Homes Still Affordable
Study: Dallas homes are more affordable this year 11:45 AM CT
12:16 PM CDT on Thursday, May 7, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Falling home prices and lower interest rates have made homeownership more affordable for Dallas residents,
The Dallas area is 110th in a ranking of the country ‘s most expensive U.S. housing markets in 2008, according to the Center for Housing Policy in a study released Thursday.
That’s a slight improvement from 2007, when Dallas placed 106th.
The median home price in 2008 was $155,000, compared to $183,000 the year before, according to the Center for Housing Policy report.
That meant an average homebuyer in the Dallas area needed 16 percent less income last year to qualify to buy a midprice home, the study found.
Researchers compared median housing costs in more than 200 U.S. metropolitan areas with average wages earned to come up with the ranking.
While nationwide home prices have fallen more than 20 percent, residents in many high-price markets still can't afford to buy homes, the study concludes.
“Contrary to popular belief, the recent decline in home prices has not resolved the nation’s housing affordability problems,” Jeffrey Lubell, executive director of the Center for Housing Policy, said in the report. “Working families – including most of the workers who will be hired as a result of federal spending in the stimulus package – still cannot afford to buy a home in most markets, and many also struggle to afford their rents.”
The D-FW area ranked as the 71st most expensive home rental market in the study, with an average rent of $905 for a two-bedroom apartment.
While Texas cities typically fare better in such reports, many of the state’s residents still can't find affordable housing to rent or buy, said Keith Wardrip, senior research associate for the Center for Housing Policy.
“The prices haven’t dipped enough even in Dallas for a lot of full-time employees to be able to afford a home,” Wardrip said. “Even with the lower prices, it hasn’t brought home ownership or rental housing within the reach of many.”
And lower mortgage rates and prices are enough for some potential buyers, he said.
“The prices are lower, but the lending standards are tighter,” Wardrip said.
San Francisco was the most costly market for the second year in a row, even though median home prices fell almost $200,000.
New York, which saw a $70,000 dip in median prices, placed second.
The most expensive Texas market on the list was Austin, which ranked 83rd with a median price of $176,000.
The most expensive U.S. apartment market was San Francisco with an average rent of $1,658 for a two-bedroom unit.
Most expensive homebuying markets
List was based on a comparison of median home prices in each metro area in 2008. Income needed is the percentage change in qualifying income required to buy in 2008 from 2007:
City Price Income needed
1. San Francisco $575,000 -26%
2. New York $455,000 -14.2%
3. San Jose $410,000 -37.4%
4. Honolulu $400,000 -3.1%
5. Santa Cruz, Calif. $400,000 -37.1%
Texas cities
Austin $176,000 -15%
Dallas $155,000 -16.1%
Fort Worth $131,000 -15.2%
Houston $150,000 14.1%
San Antonio $146,000 -10.8%
SOURCE: Center for Housing Policy
12:16 PM CDT on Thursday, May 7, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Falling home prices and lower interest rates have made homeownership more affordable for Dallas residents,
The Dallas area is 110th in a ranking of the country ‘s most expensive U.S. housing markets in 2008, according to the Center for Housing Policy in a study released Thursday.
That’s a slight improvement from 2007, when Dallas placed 106th.
The median home price in 2008 was $155,000, compared to $183,000 the year before, according to the Center for Housing Policy report.
That meant an average homebuyer in the Dallas area needed 16 percent less income last year to qualify to buy a midprice home, the study found.
Researchers compared median housing costs in more than 200 U.S. metropolitan areas with average wages earned to come up with the ranking.
While nationwide home prices have fallen more than 20 percent, residents in many high-price markets still can't afford to buy homes, the study concludes.
“Contrary to popular belief, the recent decline in home prices has not resolved the nation’s housing affordability problems,” Jeffrey Lubell, executive director of the Center for Housing Policy, said in the report. “Working families – including most of the workers who will be hired as a result of federal spending in the stimulus package – still cannot afford to buy a home in most markets, and many also struggle to afford their rents.”
The D-FW area ranked as the 71st most expensive home rental market in the study, with an average rent of $905 for a two-bedroom apartment.
While Texas cities typically fare better in such reports, many of the state’s residents still can't find affordable housing to rent or buy, said Keith Wardrip, senior research associate for the Center for Housing Policy.
“The prices haven’t dipped enough even in Dallas for a lot of full-time employees to be able to afford a home,” Wardrip said. “Even with the lower prices, it hasn’t brought home ownership or rental housing within the reach of many.”
And lower mortgage rates and prices are enough for some potential buyers, he said.
“The prices are lower, but the lending standards are tighter,” Wardrip said.
San Francisco was the most costly market for the second year in a row, even though median home prices fell almost $200,000.
New York, which saw a $70,000 dip in median prices, placed second.
The most expensive Texas market on the list was Austin, which ranked 83rd with a median price of $176,000.
The most expensive U.S. apartment market was San Francisco with an average rent of $1,658 for a two-bedroom unit.
Most expensive homebuying markets
List was based on a comparison of median home prices in each metro area in 2008. Income needed is the percentage change in qualifying income required to buy in 2008 from 2007:
City Price Income needed
1. San Francisco $575,000 -26%
2. New York $455,000 -14.2%
3. San Jose $410,000 -37.4%
4. Honolulu $400,000 -3.1%
5. Santa Cruz, Calif. $400,000 -37.1%
Texas cities
Austin $176,000 -15%
Dallas $155,000 -16.1%
Fort Worth $131,000 -15.2%
Houston $150,000 14.1%
San Antonio $146,000 -10.8%
SOURCE: Center for Housing Policy
Tuesday, May 5, 2009
Friday, May 1, 2009
Flooring Trends- Get up to date...
Floored By Old Decor? Step It Up With These Hot Trends!
Flooring can be one of the easiest ways to give your home a new and improved look. But it can be expensive, which is why it's important to choose wisely so that you don't get stuck with something you'll soon rip out.
Pulling out old flooring and putting in a stylish, comfortable floor can spice up an old home instantly. Before you get to the fun part choosing colors, textures, and types of flooring take into consideration what you expect from the flooring.
For instance, if you're re-flooring your kitchen, make sure you opt for something that is water resistant and can handle spills. In the hallways and playrooms, you're likely to be more concerned with a floor that can help absorb noise. Also, think about how long you might be standing on a floor in a particular room such as the kitchen. If you're cooking and doing dishes while standing on a very hard-surfaced floor, you're likely to get tired more easily than if you had a vinyl or softer-based floor.
Carpet Carpet never goes completely out of style. "Carpet fits everyone's budget. It's very versatile. It can go many places and it's a very environmentally-friendly product," says Sean Moran, sales representative for San Diego Carpet One.
Moran says, today though, customers are skipping things that used to be popular. "No more borders, no multi-colors in rooms, and not a lot of custom inlays in carpets any more," says Moran. However, patterns are growing in popularity.
According to Moran, the biggest interior design faux pas is blue carpet. "I've never seen a color die so fast in my life. Nobody likes blue carpet," says Moran.
What is hot? Designer carpeting. "We sell a line sponsored by the designer, Liz Claiborne," says Moran.
Also, natural fibers such as wool are being requested more frequently. "It's very durable, pretty stain resistant and it's got a really nice soft look that comes in lots of patterns," says Moran.
Hardwood "It's sustainable because it's re-finishable. When the hardwood begins to show signs of wear, you can have the hardwood refinished in your home. It brings it back to new again and you can have 10 to 20 more years of life wear on that floor. It's also very luxurious and has a great look,"
What's hot? "People are starting to get more toward the middle ground. I think the really heavily distressed, heavily-beveled hardwoods make people afraid they will look dated in about five or six years," says Moran.
Instead, they're opting for less distressed wood that has a smooth finish and nice quality wood. Moran says hardwood is also being installed more frequently in kitchens to create a more elegant look.
Cork: Cork flooring has been around for about 30 to 40 years. "It kind of fell out of favor when vinyl became so popular but now that people are looking at environmentally-friendly floor covering, they're returning to cork," says Moran. He adds, "Cork is a product of the cork oak tree, most of the quality cork is imported from Portugal or that part of Europe." The bark is harvested off of the tree and then it is turned into cork flooring and things like wine corks. "The tree stage regenerates the cork for future harvesting," explains Moran.
Cork can be put in nearly every room of the house and helps to absorb sound better than wood, tile, or stone flooring. "It goes over almost any type of floor covering except for carpet and it's very easy to install," says Moran.
Laminates: "They act a little bit like cork flooring they're pretty forgiving as far as what you're going to put them over the top of and they're very durable and scratch resistant," says Moran.
Laminates are also highly liked for their easy maintenance. All you have to do is use a neutral pH laminate cleaner on it.
"The nice thing that they have done with laminates in the last couple of years is make them so they really mimic wood," says Moran. He adds that laminates also come hand-scraped and distressed just like real wood.
Tile: While tile may seem like it's an extremely noisy option, there are underlayments that can be put down beneath the tile to help absorb sound between floors which can help reduce noise from different levels of the homes. However, this won't make a tile floor any less noisy when someone is walking on it in the same room.
"We're still getting a lot of calls for ceramic tile," says Moran. But he says that porcelain is actually harder than ceramic. When porcelain chips it doesn't reveal the red clay underneath it like ceramic does. Porcelain can be used both inside and outside the home.
A critical change in tile is the size. "People are looking for bigger tiles now. In larger spaces, they're going 18 x 18, 20 x 20, and even up to 24 x 24," says Moran.
The bigger the tile, the less grout, and ultimately the easier it is to care for the floor.
The bottom line is your flooring is likely going to stay in your home for many years so take your time and choose carefully.
Written by Phoebe Chongchua
May 23, 2008
Wondering What Your Home Is Worth? Let me show you now.
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