Archive for the 'Pricing Your Home' category

A simple measure of tightness in a market for owner-occupied housing is the homeowner vacancy rate (number of homes for sale divided by the number either for sale or owner-occupied). Builders are often interested in markets that are tight by this measure, because it indicates prospective buyers will have difficulty finding a suitable home among the available existing units.

Several federal government surveys provide homeowner vacancy rates, but the one with the greatest geographic detail by far is the Census Bureau’s American Community Survey (ACS). In a recent study, NAHB tabulated the most recent (2010) ACS this data for all metropolitan areas in the country.

Overall, the tightest markets tend to be relatively small: Corvallis, Ore. (with a homeowner vacancy rate of 0.23 percent ), Lebanon, Pa. (0.49 percent), Billings, Mont. (0.54 percent), San Angelo, Texas (0.61 percent), and Eau Claire, Wis. (also 0.61 percent).

The two tightest large markets in 2010—Nassau-Suffolk, N.Y. and Santa Ana-Anaheim-Irvine, Calif.—were also the two tightest large markets the last time NAHB looked at the ACS data in 2008.

The NAHB study provides a rundown of the top-10 metros according to nine key measures, including: owner-occupied housing units; homeownership rate; home owner vacancy rate; share of single-family detached homes; value of homes owned; home owner incomes; growth in stock of single-family detached homes; and share of homes built recently. It also has a spreadsheet that shows how more than 350 other metro areas stack up in each category.

Read the original article at the National Association of Home Builder blog, Eye on Housing.

You’ve just moved into your new home—or new to you, at least. But while the congratulations cards are still coming in, you begin to notice a few little flaws you never noticed earlier—like stains in the bathtub, or a dusty chandelier that may not have been cleaned since the day it was installed.

Never fear, say the home repair gurus at Real Simple magazine. Even novice homeowners can make simple repairs with the expertise of a professional. Here are easy fixes for six of common challenges that may face the novice homeowner:
• Bathtub stains – Combine equal parts cream of tartar and baking soda with enough lemon juice to make a paste. Rub the mixture into the stain with your fingers or a soft cloth. Let sit for half an hour, then rinse with warm water.
• Tub decals – Spray the decals and surrounding area with WD-40, lifting the edges to get underneath if possible. Let sit, then gently scrape away the decals using the edge of a credit card. Degrease the tub with liquid dishwashing soap.
• Dirty chandelier - Allow the fixture to cool. Wear a pair of white cotton gloves―one dry, one dampened with glass cleaner. (For crystal, use one part rubbing alcohol to three parts distilled water.) Wipe each prism first with the damp glove, then the dry one.
• Stuck sliding windows - A little silicone spray lubricant, sold at hardware stores, will grease the skids. Spray it onto a rag, then wipe along the tracks, whether they’re metal, wood, or plastic.
• Dried out cutting board - Revive by gently warming a bottle of pure mineral oil (available at drugstores) in a bowl of hot water, then wiping the oil onto the surface with a soft cloth. Wipe off the excess four to six hours later.
• Stuck-in light bulb - Press the center of a foot-long strip of duct tape onto the middle of the bulb. Fold each loose end in half so it sticks to itself. Gripping each end between your thumb and index finger, give a counterclockwise twist to loosen the bulb.

By Barbara Pronin, RISMedia Columnist

Question of the Day

Q:  Is a reverse mortgage good for elderly homeowners?

A:  A reverse mortgage is an increasingly popular option for older Americans to convert home equity into cash. Money can then be used to cover home repairs, everyday living expenses, and medical bills.

Instead of making monthly payments to a lender, the lender makes payments to the homeowner, who continues to own the home and hold title to it.

According to the National Reverse Mortgage Lenders Association, the money given by the lender is tax-free and does not affect Social Security or Medicare benefits, although it may affect the homeowners’ eligibility for certain kinds of government assistance, including Medicaid.

Homeowners must be at least 62 and own their own homes to get a reverse mortgage. No income or medical requirements are necessary to qualify, and they may be eligible even if they still owe money on a first or second mortgage. In fact, many seniors get reverse mortgages to pay off the original loan.

A reverse mortgage is repaid when the property is sold or the owner moves. Should the owner die before the property is sold, the estate repays the loan, plus any interest that has accrued.

It's a tool used by house flippers all across the nation. Stagers know its power. Real estate agents push its importance. What is this not-so-well-kept secret o freal estate? A kitchen can sell a house.

A kitchen is the heart of a home. This is true all across the globe. The old saying that the "stomach is the way to the heart" carries a lot of truth. Kitchens are where we spend much of our time and most of that is with our families. It's the room where we nourish our bodies and our spirits.

Kitchens are integral to entertaining and in today's age of open floor plans, they're a focal piece of many family rooms. It's because of this that kitchens play such an important role in the buying and selling process.

This one room is the showpiece of the house. You'll see it every day and your guests will see it during most visits. This means buyers want homes with up-to-date kitchens.

Kitchens, however, can be one of the most expensive rooms to renovate. These projects can also be the most labor and time intensive of all home renovations. It's not just a new layer of paint.

Instead you find a complicated array of flooring, tiling, cabinets, and counters. This means buyers may want a home with an up-to-date kitchen but they aren't willing to tackle this problem themselves. Most buyers want a kitchen that is ready to use the day they move in.

What do buyers look for in up-to-date kitchens? A lot of this depends on what price range your home is in.

The main thing to remember as a seller is to not price yourself out of your market. If homes in your neighborhood are selling for $100,000 with tidy, but not luxury kitchens, then this is no time to upgrade to granite, travertine, and marble at the price tag of $40,000+. You simply won't find a buyer.

Scope out the competition. Use open houses in your area or MLS listings to find out what your competitions' kitchens look like.

Do area homes have new solid wood cabinets and granite counters in today's designer colors? You'll be wise to consider making the same move. Are they including new stainless steel appliances and add-ons like dishwashers, wine-coolers, and trash compactors?

Are you in a higher-end neighborhood? It's time to think high-end. Your older home may have a highly functional kitchen, but a buyer will take one look at your formica counters and white appliances and become lost in the stress of how much money and time it would take to remodel. If you don't want to put in the time yourself to make upgrades then you'll have to make concessions in the price.

Don't become overwhelmed, though. Sometimes a kitchen update can mean doing just a few minor changes. Change the paint color to a warm, neutral tone. Get rid of any clutter. Update your appliances, paint your cabinets, change the pulls, or get a high-end looking counter for a fraction of the cost (faux-granite or lower end granite). You might even save a bundle by doing much of the work yourself.

The bottom line is a kitchen can sell a home. Do a little research and find out what your kitchen needs to make it competitive with area listings.

by Carla Hill

RealtyTimes

Published: January 24, 2012