3 Reasons Why Those Who Don’t Buy Now Might Regret It Later

^[1]RISMEDIA, March 24, 2010—Buying a home is one of the biggest decisions an individual can make. So it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner.

“Current market conditions have created a perfect storm of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike,” said James M. Weichert, president and founder of Weichert, Realtors. “Those who have the means and the desire to buy now but don’t, aren’t likely to see such a great opportunity again anytime soon.”

Specifically, Weichert offered three reasons why those who aren’t under contract to purchase a new home by April 30, 2010 might regret it.

1. They won’t receive a sizeable amount of money from Uncle Sam.

For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. They might not lock-in on the historically-low interest rates.

Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically-low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts.

If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan.

3. They might miss out on record home price affordability.

Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.

“There is no time to waste for anyone who wants to take advantage of this great buying opportunity. Particularly for those who have a home to sell first,” added Weichert. “If you are prone to saying ‘what if’ and wondering what could have been, you will thank yourself down the road for buying now.”

Step one: Preparing the Site

by: 3 Piller Homes

If you’ve ever driven past a new subdivision just getting started, you’ve likely seen a fleet of earth-moving equipment, multiple colored stakes in the ground, and the beginnings of streets, sidewalks, and foundations. These are the tell-tale signs of the building site being prepared for construction.

Site preparation includes several steps. A survey comes first. Topographical features — trees, streams, rocky outcroppings, relative elevations, and open areas — are carefully marked, providing the basis for everything that follows. Property lines must be located precisely to confirm setbacks (the allowable distance between a structure and a property line) in compliance with local codes. Streets and sidewalks are mapped and flagged. Then the surveyors stake out the location of the various underground utility conduits through the neighborhood and to each house. In the case of a single house under construction, the existing utility services in the neighborhood must be located and the connections to the proposed house carefully plotted. Finally, a soils test is ordered to help determine the type and design of the foundation construction.

Most, if not all, of this information is mandated by the local building authority. Copies of the surveys and tests, usually signed and stamped by a registered professional engineer, must be attached to the proposed construction drawings and submitted for permits or approvals from that authority.

Once those steps are taken and the plans are approved by the building department, the next “site prep” step can be taken. The location of the foundation or footprint of the home is staked to provide a guide for excavation. Typically, the stakes and batter boards (which demarcate every corner or turn in the layout) are connected by nylon strings to outline the exact perimeter of the foundation to be built.

Then backhoes or excavators can get to work, digging ditches to extend existing or new utility conduits — for electrical, plumbing, natural gas, etc. — to serve the house (or houses). Foundations are excavated using the staked-out lines as a guide. The plans will call for footings and — according to individual designs — a crawl space, full basement, concrete slab, and/or perimeter foundation walls in preparation for concrete forms, blocks, or other materials to support the main floor.

Every new-home project requires these site prep steps, and it is important for our homebuyer clients to understand this phase of the job to track our progress and get a complete picture of what is required to build their new home.

Top 100 Online Tools for the DIY Homeowner

Top 100 Online Tools for the DIY Homeowner

Many homeowners, regardless of whether or not they elect to build a new living space or buy a preexisting one, enjoy living a DIY lifestyle that minimizes their reliance on other people and helps them save money in the long run. Unsurprisingly, the internet has attracted a broad and diverse network of home repair, improvement, and decorating enthusiasts who enjoy sharing projects and convenient resources to help one another in their endeavors. The following websites offer up some excellent tools and resources on everything from personal finances to improvement projects and even craft patterns for home décor in order to inspire and educate homeowners interested in doing as much as they can for themselves.

Calculators/Personal Finance

1. Mortgage Calculators : Bankrate offers a staggering variety of mortgage calculators for everything from basic financing to how much remodeling will set a bank account back – and anything in between.

2. Credit Card Calculators : Work through almost every aspect of credit card-related finances with these 10 specialized calculators hosted by Bankrate.

3. Auto Calculators : Cars eat up a healthy amount of one’s personal finances, and with these detailed, informative calculators it is possible to gain a clearer picture of what their purchase and upkeep will cost.

4. Checking & Savings Calculators : All of these useful savings calculators help keep homeowners keep better track of their expenditures and see where their money is or should be going.

5. Retirement Calculators : Homeowners looking forward to retirement would do well to explore all of the related calculators Bankrate has to offer – many of which concern 401 (kplans and Roth IRAs.

6.  CDs & Investment Calculators : Another Bankrate venture, these calculators make useful tools for homeowners hoping to invest some of their money in order to pay for college, home additions, a car, or other needs.

7.  BobVila.com Estimators & Calculators : Homeowners hoping to remodel or add on to their houses would do well to explore Bob Vila’s calculator offerings centered on estimates.

8. IRS.gov Forms and Publications : DIY-oriented homeowners with no need for accountants must stop by the official online presence of the IRS for information on the necessary forms and procedures for filing tax returns.

Home Building/Improvement

9. ePlans.com : This one-stop shop for home building allows visitors to search for blueprints and plans for thousands of different living spaces as well as additions, modifications, and a cost to build estimator for $29.95.

10. The Home Renovator : Home improvement expert Bob Vila provides a suite of estimators for drywall, paint, ceramic tile, batt insulation, and acoustical ceiling tile.

11. Deck Designer : Run this program to create 3D renderings of custom-designed decks along with a helpful materials guide and tips for installing and constructing one.

12. Paint Designer : No matter if the job at hand is to be done indoors or out, the Paint Designer tool helps homeowners pick appropriate colors and paints for their needs and wants.

13. Home Plans : Browse or search for blueprints for whole houses or specific rooms courtesy of Bob Vila and Donald A. Gardner Architects.

See the rest of this post at:      http://constructionmanagementdegree.org/?page_id=466

Cool Tools : Color This! Shows How Paints And Colors Will Make A Room Look Good

Visualizing a home in different colors can take a good eye and strong imagination — especially when you’re house-hunting and the home’s effects are of someone else.

Yet, we wonder:

• What would the bedroom look like in blue?
• How would the kitchen look in yellow?
• What if the foyer wall was accented in red?

At the Better Homes and Gardens website, you can answer those questions and see the results for yourself.  Using the Color This! tool, website visitors can mix-and-match swatch colors, then apply them to a room’s walls, floors, trim, cabinets and accessories.

Don’t just get a mental picture of a room — get an actual picture.

The Better Homes and Gardens site requires a basic, non-intrusive site registration to use the Color This! product suite.  It’s also available for home exteriors and window treatments, too.

The Home Price Index Shows Some Regions Up, Some Regions Down

Earlier this week, the private-sector Case-Shiller Index showed home prices slightly lower between November and December.  Thursday, the public-sector Home Price Index showed the same.

Publishing on a 2-month lag, the Federal Home Finance Agency said home prices fell by 1.6 percent nationally in December.  And that’s an average, of course.  Some regions performed well in December as compared to November, others didn’t.

• Values in the Middle Atlantic states improved slightly
• Values in New England were essentially unchanged
• Values in the Mountain states sagged, down 3.5%

These aren’t just footnotes. They’re an important piece toward understanding what national real estate statistics really mean. In short, “national statistics” are just a compilation of a bunch of local statistics.

For example, if we dig deeper into the FHFA Home Price Index 70-page report, we find that cities like Terre Haute, IN, Buffalo, NY, and Amarillo, TX posted year-over-year home price gains. You won’t see that in a “national” report.

Furthermore, it’s a sure bet that those same cities, you could find neighborhoods that are thriving, and others that are not.  Just because the city shows higher home values overall, it won’t necessarily be the case for every home in the city.

Every street in every neighborhood of every town in America has its own “local real estate market” and, in the end, that’s what should be most important to today’s buyers and sellers.  National data helps identify trends and shape government policy but, to the layperson, it’s somewhat irrelevant.

So, when you need to know whether your home in Powell is gaining or losing value, you can’t look at the national data.  You have to look at your block — what’s selling and not selling — and start your valuations from there.

As The Supply Of New Homes Grows, So Does The Opportunity For A “Good Deal”

The housing recovery showed particular weakness in the New Homes Sales category last month — good news for homebuyers around the country.

A “new home” is a home for which there’s no previous owner.

New Home Sales fell 11 percent from the month prior and posted the fewest units sold in a month since 1963 — the year the government first started tracking New Home Sales data.

Right now, there are roughly 234,000 new homes for sale nationwide and, at the current sales pace, it would take 9.1 months to sell them all. This is nearly 2 months longer than at October 2009’s pace.

The reasons for the spike in supply are varied:

• The original home buyer tax credit expired in November
• Weather conditions were awful in most of the country in January
• Weak employment and consumer confidence continue to hinder big ticket sales

Now, these might be less-than-optimal developments for the economy as a whole, but for buyers of new homes, it’s a welcome turn of events. Home prices are based on supply and demand, after all.

As a result, this season’s home buyers may be treated to “free” upgrades from home builders, plus seller concessions and lower sales prices overall.

It’s all a matter of timing, of course.  New Home Sales reports on a 1-month lag so it’s not necessarily reflective of the current, post-Super Bowl home buying season.  And from market to market, sales activity varies.

That said, mortgage rates remain low, home prices are steady, and the federal tax credit gives two more months to go under contract. It’s a favorable time to buy a new home.

December 2009 Case-Shiller Data Shows Battered Markets In Bona Fide Recovery

Using data compiled in December, Standard & Poors released its Case-Shiller Index Tuesday.  The report shows home prices down just 2.5% on an annual basis, a figure much lower than the 8.7% annual drop reported after Q3.

According to Case-Shiller representatives, the housing market is “in better shape than it was this time last year”, but some of the summer’s momentum has been lost. 15 of 20 tracked markets declined in value between November and December 2009.

Meanwhile, it’s interesting to note the 5 markets that didn’t decline — Detroit, Los Angeles, Las Vegas, Phoenix and San Diego.  Each of these metro regions were among the hardest hit nationwide when home prices first broke.  Now, they’re leading the pack in price recovery.

 

For some real estate investors, that’s a positive signal.  But we also have to consider the Case-Shiller Index’s flaws because they’re big ones.

As examples:

 

1. Case-Shiller data is reported on a 2-month lag
2. The Case-Shiller sample set includes just 20 U.S. cities
3. There’s no “national real estate market” — real estate is local

That said, the Case-Shiller Index is still important. As the most widely-used private sector housing index, Case-Shiller helps to identify broader housing trends and many people believe housing is a key element in the economic recovery.

If the markets that led the housing decline will lead the housing resurgence, December’s data shows that full recovery is right around the corner.

How You Can Get The Most Accurate, Real-Time Mortgage Rate Quotes Available

You can’t get your mortgage rates from the newspaper. Last week proved it.  Again.

Friday morning, headlines in Ohio and around the country read that mortgage rates were down 0.04 percent, on average, since the week prior.

A sampling of said headlines includes:

• US Mortgage Rates Drop For 2nd Straight Week (Reuters)
• Mortgage Rates On 30-year US Loans Fall To 4.93% (Business Week)
• 30-Year Fixed Mortgage Rate Falls Farther Below 5% (Marketwatch)

The story behind the headline was sourced from the Freddie Mac Primary Mortgage Market Survey, am industry-wide mortgage rate poll of more than 100 lenders.  The PMMS has reported mortgage rate data to markets since 1971 and is the largest of its kind.

Unfortunately, Columbus rate shoppers can’t rely on it.

See, unlike governments and private-sector firms, when consumers are in need mortgage rate information, they need the information delivered in real-time; for making decisions on-the-spot.  Consumers need to know what rates are doing right now.

The Freddie Mac survey can’t offer that.

According to Freddie Mac, the survey’s methodology is to collect mortgage rates from lenders between Monday and Wednesday and to publish that data Thursday morning.  The survey results are an average of all reported mortgage rates. The problem is that mortgage rates change all day, every day.  The PMMS results are skewed, therefore, by methodology.

And, meanwhile, the issue was compounded last week because mortgage rates shot higher Wednesday afternoon — after the survey had “closed”.  The market deterioration ran into Thursday, too — again, unable to be captured by Freddie Mac’s PMMS.

Although the newspapers reported mortgage rates down last week, they weren’t.  Conforming mortgage rates were higher by at least 1/8 percent, or roughly $11 per $100,000 borrowed per month.  In some cases, rates were up by even more.

Newspapers and websites can give a lot of good information, but pricing is far too fluid to rely on a reporter. When you need to know what mortgage rates are doing in real-time, make sure you’re talking to a loan officer.  Otherwise, you may just be getting yesterday’s news.

How To Replace Your HVAC Air Filter

Replacing a home’s heating, ventilation and air conditioning (HVAC) air filter is one way to keep the unit’s motor running right.  It’s an oft-forgotten part of keeping a well-run home. And, it’s simple, too.

In the two-minute video above, you’ll learn how to replace an air filter from start-to-finish.  There’s no need for tools and no need for experience — the job is about as basic as home maintenance jobs come.

Air filters should be changed at least quarterly but it’s okay to change on a monthly rotation, too — especially if your home has shedding pets, or is under construction or repair. Just remember that not all air filters are created equal.

In this famous video, we see how $0.99 filters can fail to get the job done. Spending $10-15 for a filter that works is a better idea.

Save money by buying in bulk.

Housing Starts Soar To 6-Month High In January… Or Do They?

Sometimes, headlines for housing can be misleading and this week gave us a terrific example.

On Wednesday, the Commerce Department released its Housing Starts data for January 2010. The data showed starts at a 6-month high.

A “Housing Start” is a privately-owned home on which construction has started.

Headlines on the Housing Starts story included:

• U.S. Housing Starts Hit 6-Month High (Reuters)
• U.S. Economy Receives Home Building Boost (Shepparton)
• Housing Starts Post Sharp Rebound (ABC)

Based to the headlines, the housing market looks poised for rapid growth through the Spring Market.

The real story, though, is that although Housing Starts increased by close to 3 percent last month, the growth is mostly attributed to buildings with 5 or more units.  This includes apartments and condominiums — a sector of the housing market that’s notoriously volatile.

If we isolate Housing Starts for single-family homes only, we see that starts grew by just 7,000 units last month and have failed to break a range since June 2009.  January’s tally is slightly below the 8-month average.

Perhaps more interesting than the Housing Starts, though, is the Commerce Department’s accompanying data for Housing Permits. After a 5-month plateau that ended in November, Housing Permits posted multi-year highs for the second straight month.

According to the Census Bureau, 82% of homes start construction within 60 days of permit-issuance.

One reason permits are up is that home builders want to capitalize on the federal homebuyer tax credit’s dwindling time frame.  Sales are expected to spike in March and April and more homes will come online to deal with that demand. Home buyers in Powell should shop carefully, but with an eye on the clock.

As the tax credit’s April 30, 2010 deadline approaches, competition for homes may be fierce.