A Few Great Reasons to Buy a Home Now

By Evelyn Fielding
Photo: © Dreamstime
Buying a home has always been the best investment, and today it’s even better. Reports of doom and gloom must be put into perspective, and the longer you hold out waiting for the best deal the more likely you are to miss a great opportunity. Here are some reasons why now is a good time to buy a home.

It’s a Buyer’s Market, Folks
Many sellers have upgraded properties to increase curb appeal. Your next home most likely has new windows, a top-notch roof, energy efficient appliances, and a much nicer bathroom and kitchen. There is no need to worry about major home improvement projects; today’s homes are move-in ready.

A ton of brand new homes are on the market at great prices, too. Buy a new construction and be the first to park in the garage, paint the walls, and landscape the yard. A new home is your opportunity to put a stamp on something truly meaningful.

You Can Afford to Be Choosy
Your choices in the housing market may feel a little staggering. You have the chance to shop real estate until you find exactly what you want. Record low mortgage rates are a nice bonus that make your dream home even more affordable.

What About Expired Government Home-buying Incentives?
Think you’ve already missed a great deal? Actually, these incentives caused prices to rise for a short time, offsetting some advantages to buyers. It’s all part of the cause and effect cycle in real estate, and what you’re looking for is balance.

It’s Time to Buy a Home
Remember, you’re not buying a house—you’re buying a home. Weigh your options carefully, but don’t wait so long that you miss this good opportunity. Picture your family and friends relaxed and comfortable in every room and you’ll see yourself, proud of your smart investment.

Florida Ranks As Third Worst State For Foreclosures According To Report

Five Top Trends in Patio Design

Courtesy of ARAcontent
Photo: © Gordon Swanson – Dreamstime
When does a trend become a tradition? With continued interest in creating great outdoor living spaces, the trend for jazzing up the backyard may just be on the verge of becoming a staple of the American home, and as much a requirement as a great kitchen or welcoming bath.

Homeowners are always looking for new ways to create a “wow effect” in their outdoor living spaces. The outdoor experts at ConcreteNetwork.com point to five hot trends in patio design to help elevate your backyard patio from a nice patch of bricks to your favorite spot to entertain and relax:

1. Make the backyard a destination
More people are foregoing costly vacations in favor of sinking that travel money into creating a getaway spot in their own backyards. Enterprising homeowners are using decorative concrete to create mini theme parks with faux rock water features, sculpted pools with water slides and garden bridges.

2. Cost-sensible, eco-conscious
Environmental awareness doesn’t have to take a back-seat to luxury, homeowners are finding. Backyard oases must also emphasize eco-consciousness, incorporating environmentally-friendly materials like concrete, which is sustainable. But they also like the organic look and feel that the material can impart. Concrete patios can mimic the look of natural stone – even lava – without the eco-impact associated with quarrying the real thing. Plus, concrete costs considerably less than many natural stone products.

3. Furniture built to last and last
Anybody can go to the local home improvement store and pick up a patio set. The truly trendy backyard designer turns to permanent backyard furniture, custom-made to fit your yard’s style. Custom concrete furniture can take on any shape, from pool tables and benches to patio tables and planters. It lasts a lifetime and never needs to be painted or refinished.

4. Light my fire
When it comes to creating ambiance, few home improvements pack the wallop of a fireplace. Outdoor hearths are growing in popularity as homeowners continue to recreate all the appeal of their home’s interior outside in the backyard. Whether you choose gas or wood-burning, custom designed or pre-cast, adding a fireplace to your outdoor landscape is sure to light up its appeal.

5. Size and shape matter
We’ve all seen patio disasters – the sprawling slab that totally dominates a tiny backyard, or the postage-stamp-sized patio that appears lost in a sea of grass. Homeowners are no longer leaving patio size to chance. Instead, they’re putting a lot of thought and planning into right-sizing their patio to create a living area that meets their needs and fits the profile of their backyard. How the space will be used and how much space you have to work with will be main factors in sizing your concrete patio, according to Scott Cohen of GreenSceneLandscape.com. You can also find a patio size chart at http://www.concretenetwork.com/patio/size.html.

Whatever your personal style, and whether you’re aiming to improve your home’s resale value or enhance your enjoyment of your house, upgrading your outdoors is an investment that makes sense. Visit http://www.concretenetwork.com to learn more.

Expensive Updates that May Not Increase Your Home’s Value

By Jane Dee
Photo: © Gina Smith – Dreamstime

If you’re considering renovating your home to maximize sale profit, be aware that some renovations may not yield the returns you expect. The following five renovations are all projects that shouldn’t be undertaken merely for resale profit.

Swimming Pool
Before you invest in a swimming pool, study the market in your area. Depending on the region or even the neighborhood, a pool can add or detract from the resale price of your home. While you might see a pool as a luxury item that will provide hours of fun in the sun for you and your family, potentials buyers may see nothing more than high maintenance costs—not to mention a safety hazard for young children and pets. If you’ve got your heart set on a pool for your home, be prepared to reap little or no return on your investment when it comes to sale time.

Topnotch Accessories
Unless your home is awash with topnotch accessories, installing these items in one or two rooms only could be a mistake. You’re unlikely to see any return on your investment if you install high-end accessories such as a state-of-the art refrigerator or a fine Italian marble counter top in one room, yet leave worn and outdated accessories and fittings in others. Keep the same standard of appliances, accessories, and furnishings throughout your home and don’t push the value of your home to above 20 to 25 percent of the current value of the highest-valued homes in your neighborhood.

Wall-to-wall Carpeting
It’s always a good idea to replace faded and worn carpets, especially if you’re thinking of selling soon, but this particular renovation project is costly. What’s more, when it comes to selling your home you may find that potential buyers are put off by the carpeting, particularly if it’s in a color that doesn’t fit in with their envisioned design plans. A safer bet is to spend the money on either restoring the original hardwood floors you have in your home, or having hardwood floors, or a comparable alternative such as bamboo or cork, laid by a professional. Rugs can then be placed in those areas where you feel they’re needed when showing your home.

Elaborate Landscaping
Some potential buyers may see landscaped gardens, especially those incorporating water features, as requiring too much maintenance. Of course, carry out this renovation if you want to enjoy the results, but don’t expect it to increase the value of your home significantly, as you may not recoup even a quarter of your investment when reselling your home. The best landscape designs are simple and unfussy and allow a homeowner to enjoy his or her immediate environment without having to constantly preen it.

Home Office
While you may need space in which to work at home, if you go full out and remodel a room into a well-appointed office, one that’s specifically designed for work with built-in bookcases and the like, don’t expect to recoup more than about 50 percent of your outlay. Many buyers aren’t prepared to pay for something they may never use. You’re better off buying furniture and accessories that you can take with you when you come to move, and which will leave potential buyers with the option of using the room as an additional bedroom or family room should they wish to do so.

Although no one should decorate their surroundings to suit others, you may want to keep a few considerations in mind when renovating if you plan to sell your home in the not-too-distant future.

Are You Considering Refinancing?

By S.F. Heron
Photo: © iStockphoto
People refinance home loans for many reasons. Some homeowners want to reduce payments or acquire a lower interest rate. Others refinance for debt consolidation or to fund major home renovations. Whatever your reason, today’s low mortgage rates make refinancing a viable option.

Weigh the cost of refinancing to determine whether a new mortgage will ultimately save you money. If you plan to move in a year or two, the cost of refinancing your home loan may not make it worth the expense.

Should you refinance?
Reducing the interest rate by a single point can make your payment more affordable. To quickly figure out the difference, note the savings between your current mortgage payment and the proposed new payment. Ask for a basic closing cost figure from the bank. Divide the closing costs by the savings between the two payment amounts. The resulting figure indicates the number of months required to break even to cover refinancing expenses.

What makes refinance worth it?
It depends on the homeowner. For some people, saving $150 per month is imperative. For others, $300 or more makes the expense worth it. Remember that many lenders include closing costs in the new loan to limit upfront expenses to customers.

Primary Mortgage Insurance (PMI)
Lenders require individuals to place a 20 percent down payment on the home. A down payment of less than 20 percent requires the homeowner to carry PMI. As you make monthly payments, you chip away at the mortgage principal. Over time, homeowners build up enough equity to eliminate the need for PMI. Address the issue of PMI during any refinancing discussions with your lender.

Where to refinance
Call your current mortgage company first to check refinancing options. Don’t blindly assume they have the best rate. Investigate interest rates through the Internet and other banks. Some banks offer very low rates and extremely high closing costs. The flip side also features banks with no fees and a high interest rate. Check for loans that don’t require the payment of points (one percent of mortgage value) to buy down the interest rate.

What are reasonable refinancing fees?
Basic mortgage fees include application costs ranging from $250 to $400. Home appraisal fees run from $300 to $500. A title search allows the mortgage company to determine your legal right to the property. Lender fees also include origination fees at one percent of the loan amount and attorney fees to cover the full loan process.

Florida Ranks As Third Worst State For Foreclosures According To Report

MIAMI – Real estate agent, Izzy Buholzer, from Miami Real Estate Team, (R) shows a home that is in foreclosure to prospective buyers Louis Carrasquillo and his daughter Maria Carrasquillo on June 16, 2010 in Miami, Florida. A RealtyTrac report indicated that Florida continues to hold the number three spot when it comes to foreclosures in the United State. Only Nevada and Arizona were worse.

See our article in Life Magazine– Rentals in Miami, FL

http://www.life.com/image/103157691

Foreclosure Rate In Miami Area Continues To Rise
MIAMI – JULY 29: Real estate agent Izzy Buholzer (R) from Miami Real Estate Team, Inc. shows a rental home to Dorothea Tittel July 29, 2010 in Miami, Florida. Many people are now considering renting instead of buying as the continued downward pressure on home values is felt. Today, RealtyTrac Inc. today annouced that South Florida ranks tenth in nationwide foreclosures and that the Miami metro area, which includes Palm Beach, Broward and Miami-Dade counties, led all regions with 94,466 homes in some stage of foreclosure from January through June.

Why Ask for an FHA Loan?

By Cheri Dohnal
Photo © Justin Horrocks – iStockphoto
The real estate market is beginning to make a comeback, interest rates are low, and you want to buy a house. If your credit score is mediocre or you simply haven’t been able to save for a down payment, don’t assume you will miss this buyer’s market. An FHA (Federal Housing Administration) mortgage may make it possible for you to pursue the American dream of home ownership.

FHA loans are financed through conventional lenders. FHA insures the loans, minimizing the lender’s risk. A variety of loan programs are available, ranging from standard home loans to property rehab and refinancing, as well as loans for delinquent mortgage holders.

Although the “upfront” FHA mortgage insurance premium recently rose to 2.25 percent, it can still be financed over the term of the loan. It does not need to be paid out of pocket at closing. For most buyers with household incomes of less than $100,000, the upfront portion of mortgage insurance is tax deductible in the year it is paid, on homes purchased between 2007 and Dec. 31, 2010. An annual (non-deductible) mortgage insurance premium will also be assessed. The required down payment on an FHA mortgage is currently only 3.5%—much lower than most conventional mortgages. Even many buyers with credit scores below 580 can qualify with a 10% minimum down payment, and a previous bankruptcy won’t automatically disqualify you. Down payment requirements decrease and better rates are available to buyers with higher credit scores. FHA interest rates are significantly lower than those for conventional mortgages when a small down payment is made.

One of the most attractive features of an FHA mortgage, especially with interest rates at their current historic lows, is assumability. An FHA mortgage locked in at today’s low interest rate can be assumed at the same rate by a qualified buyer in the future. This makes FHA loans an excellent choice for buyers who may want or need to sell the home before it is paid off. If you have plans to convert the property into a rental after living in it for a while, you may be able to qualify for another FHA loan on your next home while still holding the first one as a rental.

About one in every three mortgage loans made today is an FHA loan. While FHA is part of HUD, buyers aren’t limited to purchasing HUD homes with FHA loans. Most homes on the market today will qualify for FHA loans. Additionally, many “fixer-upper” homes qualify for FHA 203(k) loans, which are based on the projected value of the property after it is repaired.

Dealing with a Low Appraisal

By Victoria Hunter

After months of readying the house for the market and negotiating back-and-forth with buyers on the sales price, sellers are shocked if the appraisal of their home comes in below the offered price. Sadly, as the market rebounds, and home prices begin to inch up, low appraisals will be happening all too frequently. So, how can you avoid a low appraisal and what are your options if you get one?

Avoiding a Low Appraisal
The most important step you can take in avoiding a low appraisal is setting the price right the first time. No matter how much money you want to get, or hope to get, the bottom line is that it is the buyers in the market, not the sellers, who set market value. So, what if the worst has already happened and you are faced with a low appraisal? There are several steps you can take to attempt to remedy the situation.

Appraise the Appraiser
Appraisers have been known to make errors. For instance, are all of your bathrooms listed? Is the square footage reflected accurately? Have your agent check the comps the appraiser used to compare to your home. There could be errors there as well. If you’ve made improvements to the home be sure those were taken into account by the appraiser. Lower the Price
If the appraisal seems accurate, the next item to consider is your sales price. If it’s too high consider renegotiating the purchase agreement with a lower price, reflective of the appraised value.

Increase the Down Payment
The buyer can pay the difference between the purchase price and what the bank will lend. If the buyer really wants the home, and is financially able to do so, increasing the down payment will bring the sales price in line with the appraised value. There is a danger in this though. Paying more up front will create negative equity in the home (the amount of the loan plus the larger down payment is greater than the appraised value of the property) and the loan may not be approved.

Challenge the Appraisal
A seller, or listing agent, may be able to convince the appraiser to reconsider his or her evaluation of the home. If the seller has information on the circumstances behind a recent low sales price in the area, such as death or divorce, this should be shared with the appraiser. This information can go a long way in convincing the appraiser to reconsider. Remember, the appraiser doesn’t live in your neighborhood; he or she may not know the area very well and will most likely welcome your “insider” input.

A low appraisal doesn’t have to be a deal killer. Before the buyer decides to walk away, be sure you’ve done all you can to remedy the appraisal and get the sale back on track.

South Florida home, condo sales rise

South Florida Business Journal
There’s a tiny glimmer of light in what otherwise has been a very dark time for South Florida’s real estate market.

A new report from Florida Realtors finds that the median price of an existing single-family home in West Palm Beach rose 3 percent in the first quarter, to $236,100 from $229,200 in the year-ago period.

Four other markets also saw prices inch up. However, statewide prices remained down, with the median price falling 5 percent, to $133,800 from $140,900 a year earlier.

“Median prices in most areas of the state continue to fall,” said Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness, in a news release. “However, the rate at which they are falling has diminished significantly, and this is indicative of a bottom approaching.”

The number of homes and condos that sold in the first quarter rose in all three counties and statewide, according to Florida Realtors.

West Palm Beach saw the biggest jump in single-family home sales, up 20 percent to 1,949 from 1,625. Condo sales there rose 47 percent, to 2,282 from 1,549 a year earlier. However, unlike single-family home prices, condo prices slid 9 percent in West Palm Beach, to $93,500 from $102,900.

Single-family home sales in Fort Lauderdale were up 7 percent, to 1,756 from 1,647. However, the median price fell 6 percent, to $196,700 from $210,200. Condo sales there rose 45 percent, to 2,739 from 1,893, but prices slid 15 percent, to $71,900 from $84,100.

Miami single-family home sales were up 12 percent, to 1,530 from 1,372. The median sales price, however, fell 6 percent, to $191,200 from $203,700. Condo sales in Miami were up 46 percent, to 1,920 from 1,311. The median price slid 9 percent, to $136,100 from $149,000.

Statewide, sales of existing single-family homes rose 24 percent, to 38,846 in the first quarter from 31,410 a year earlier.

Statewide, sales of existing condominiums in the first quarter rose 67 percent, to 16,897 from 10,131 from the same period the previous year.

“Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types,” said Timothy Becker, director of the University of Florida’s Bergstrom Center for Real Estate Studies, in a news release “Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals.”