Wednesday, November 7, 2012
Tuesday, October 2, 2012
New-Home Prices Soar to 5-Year High
Daily Real Estate News | Thursday, September 27, 2012
The median price of a new home rose a record-breaking 11.2 percent in August, reaching $256,000. That marks the highest level since March 2007, the U.S. Census Bureau reported Wednesday.
The price of new homes in August soared 17 percent compared to last year at this time.
The number of new-homes that sold in higher price ranges — $400,000 or more — rose significantly in August.
"This reflects the fact that people who are able to buy homes right now are those in higher-income ranges who have cash and equity on hand, while first-time buyers are having a tougher time getting qualified for a mortgage," says David Crowe, the National Association of Home Builders’ chief economist.
As prices rose, inventories of new homes in August remained at record lows. It would take 4.5 months to clear the houses on the market at August’s sales pace, the Census Bureau reported.
Single-family home sales mostly held steady in August, remaining at two-year highs. Sales slipped 0.3 percent to a seasonally adjusted annual rate of 373,000.
On a regional basis, new-home sales in August soared 20 percent in the Northeast, 1.8 percent in the Midwest, and 0.9 percent in the West. New-home sales declined 4.9 percent in the South in August.
"New-home sales in August effectively tied the pace they set in the previous month, when they were the strongest we've seen in more than two years — so this is really a continuation of the good news we've been getting on the housing front," says Barry Rutenberg, NAHB chairman. "Looking at the big picture, sales have been trending gradually upward since the middle of last year as favorable interest rates and prices have driven more consumers to get back in the market for a newly built home."
Source: “New Home Sales Ease, But Prices Hit 5-Year High,” Reuters (Sept. 26, 2012) and the National Association of Home Builders
Daily Real Estate News | Thursday, September 27, 2012
The median price of a new home rose a record-breaking 11.2 percent in August, reaching $256,000. That marks the highest level since March 2007, the U.S. Census Bureau reported Wednesday.
The price of new homes in August soared 17 percent compared to last year at this time.
The number of new-homes that sold in higher price ranges — $400,000 or more — rose significantly in August.
"This reflects the fact that people who are able to buy homes right now are those in higher-income ranges who have cash and equity on hand, while first-time buyers are having a tougher time getting qualified for a mortgage," says David Crowe, the National Association of Home Builders’ chief economist.
As prices rose, inventories of new homes in August remained at record lows. It would take 4.5 months to clear the houses on the market at August’s sales pace, the Census Bureau reported.
Single-family home sales mostly held steady in August, remaining at two-year highs. Sales slipped 0.3 percent to a seasonally adjusted annual rate of 373,000.
On a regional basis, new-home sales in August soared 20 percent in the Northeast, 1.8 percent in the Midwest, and 0.9 percent in the West. New-home sales declined 4.9 percent in the South in August.
"New-home sales in August effectively tied the pace they set in the previous month, when they were the strongest we've seen in more than two years — so this is really a continuation of the good news we've been getting on the housing front," says Barry Rutenberg, NAHB chairman. "Looking at the big picture, sales have been trending gradually upward since the middle of last year as favorable interest rates and prices have driven more consumers to get back in the market for a newly built home."
Source: “New Home Sales Ease, But Prices Hit 5-Year High,” Reuters (Sept. 26, 2012) and the National Association of Home Builders
Tuesday, October 11, 2011
David asks "My daughter has a roommate who stopped paying her half of the rent. The management company keeps calling me. I co-signed for my daughter. Now the management company is starting eviction. What should I do?"
If you want to avoid having an eviction for non-payment on your credit and your daughter's credit PAY THE RENT!Colorado landlords and management companies often have a "joint and several liability" cause. This means each and every person comprising "Tenant" are each, together and separately, responsible for all of the Tenant's obligations. A very common mistake made by tenants in a roommate situation is they think they are only responsible for their "share" of the rent. If the other roommates don't pay that is not their worry. This is wrong, wrong, wrong.
If a person signs a lease with other parties they are liable for not only the non-payment of rent by roommates but for damage caused by the roommates as well. Moreover, if you are a co-signing parent you are equally responsible.
Recently another friend asked about his daughter's liability on a lease. She and her boyfriend split. She stopped by the management office to notify them she was moving and even paid the rent one month in advance. The property manager smiled, took the money and wished her well but did not give her anything in writing acknowledging the change in the lease. Now the ex-boyfriend is not paying the rent, the management company is calling her and threatening eviction. "What can we do if 'Prince Charming" won't pay?" Dad asked. Basically, if the lease has a "joint and several liability" clause you either have an eviction on your credit or continue paying the rent until the occupying party gives notice and moves.
Its an exciting time for a young person to get a first apartment. The best help you can give is not by co-signing but helping your son or daughter read and understand the rights and obligations in the lease. Leases are legal documents and need to be understood completely before they are signed.
It is very advisable to have an attorney take a look at the lease before it is signed. It might save a lot of wear and tear on your stress, your bank account and your credit rating.
If you want to avoid having an eviction for non-payment on your credit and your daughter's credit PAY THE RENT!Colorado landlords and management companies often have a "joint and several liability" cause. This means each and every person comprising "Tenant" are each, together and separately, responsible for all of the Tenant's obligations. A very common mistake made by tenants in a roommate situation is they think they are only responsible for their "share" of the rent. If the other roommates don't pay that is not their worry. This is wrong, wrong, wrong.
If a person signs a lease with other parties they are liable for not only the non-payment of rent by roommates but for damage caused by the roommates as well. Moreover, if you are a co-signing parent you are equally responsible.
Recently another friend asked about his daughter's liability on a lease. She and her boyfriend split. She stopped by the management office to notify them she was moving and even paid the rent one month in advance. The property manager smiled, took the money and wished her well but did not give her anything in writing acknowledging the change in the lease. Now the ex-boyfriend is not paying the rent, the management company is calling her and threatening eviction. "What can we do if 'Prince Charming" won't pay?" Dad asked. Basically, if the lease has a "joint and several liability" clause you either have an eviction on your credit or continue paying the rent until the occupying party gives notice and moves.
Its an exciting time for a young person to get a first apartment. The best help you can give is not by co-signing but helping your son or daughter read and understand the rights and obligations in the lease. Leases are legal documents and need to be understood completely before they are signed.
It is very advisable to have an attorney take a look at the lease before it is signed. It might save a lot of wear and tear on your stress, your bank account and your credit rating.
Friday, September 23, 2011
Common Home-buying Mistakes
Common Home-buying Mistakes
Q. What are the most common home-buying mistakes?
A. Not knowing how much house you can afford. Mortgage calculators are available online. Be sure to factor in such items as property taxes, maintenance and insurance. A conservative approach is best. Take a look at hard look at your current income, expenses, savings plan consider how the new house payment will impact your budget. Remember once you own your own home all the repair and maintenance are your responsibility so have a amount set aside or repair emergencies.
Not considering your needs, both immediate and for the next 5 to 10 years when considering, neighborhood location, square footage, number of bedrooms and bathroom, etc.
Not shopping for loan options. You need to know your credit score, get pre-qualified and pre-approved. Do not make the mistake of getting pre-qualified with more than one lender. Each time you get a new pre-approval your credit is check. Multiple inquires can lower your credit score making the best rate and terms out of your reach. Once you know your score simply tell the lender what it is and ask for a summary of loan options offered by his or her company.
Not including mortgage financing and professional inspection contingencies in the contract. The mortgage financing clause saves you if the home doesn’t appraise for the offered price; the inspection clause allows you to negotiate (or cancel the deal) if an inspector finds problems. A properly inspected home often includes a test for Radon gas ($125-$150) sewer line inspection ($120-$300) general home inspection ($250-$500) and with some properties tests for mold ($200-$400) and lead-based paint ($250-$350)
Falling in love with a house without considering all the facts, such as structural flaws, location, neighborhood and potential for resale. Remember as you are home shopping the last great house has not yet sold. Take your time and make sure to get good advice and the help of experienced professionals.
For more information on home buying or to receive a Home Buyer's Manual please contact me at Nell@Talk2Nell.com
Q. What are the most common home-buying mistakes?
A. Not knowing how much house you can afford. Mortgage calculators are available online. Be sure to factor in such items as property taxes, maintenance and insurance. A conservative approach is best. Take a look at hard look at your current income, expenses, savings plan consider how the new house payment will impact your budget. Remember once you own your own home all the repair and maintenance are your responsibility so have a amount set aside or repair emergencies.
Not considering your needs, both immediate and for the next 5 to 10 years when considering, neighborhood location, square footage, number of bedrooms and bathroom, etc.
Not shopping for loan options. You need to know your credit score, get pre-qualified and pre-approved. Do not make the mistake of getting pre-qualified with more than one lender. Each time you get a new pre-approval your credit is check. Multiple inquires can lower your credit score making the best rate and terms out of your reach. Once you know your score simply tell the lender what it is and ask for a summary of loan options offered by his or her company.
Not including mortgage financing and professional inspection contingencies in the contract. The mortgage financing clause saves you if the home doesn’t appraise for the offered price; the inspection clause allows you to negotiate (or cancel the deal) if an inspector finds problems. A properly inspected home often includes a test for Radon gas ($125-$150) sewer line inspection ($120-$300) general home inspection ($250-$500) and with some properties tests for mold ($200-$400) and lead-based paint ($250-$350)
Falling in love with a house without considering all the facts, such as structural flaws, location, neighborhood and potential for resale. Remember as you are home shopping the last great house has not yet sold. Take your time and make sure to get good advice and the help of experienced professionals.
For more information on home buying or to receive a Home Buyer's Manual please contact me at Nell@Talk2Nell.com
Thursday, January 6, 2011
I Love My Job!
Wow! Another new year ahead of me. Its always exciting to face the first business week in January and think about all the houses yet to be seen and the great homes yet to be found for friends, family, current clients and new clients.
2011 brings new challenges to home buyers and seller. As the old saying goes "For warned is for armed."
The magic words "your loan has been approved" are getting harder to hear. Home buyers are being asked to document and account for every penny, every financial action taken and get assurances from employers of continued job security. Home lending practices have drastically changed. Many programs home buyers relied upon have vanished.
According to RISMEDIA, August 2, 2010 article "Here are the top seven reasons banks are denying home loan requests:
1. Poor credit: The borrower may have a heavy down payment or excellent equity built-up in their house, but if their credit score is under a certain threshold, obtaining a new loan or refinance from a traditional bank is challenging. Even FHA (Federal Housing Administration) loans, which have traditionally catered to borrowers with lower FICO scores, have an average borrower credit score of 693, according to CNN Money, which is above the national average.
2. Insufficient liquidity: If the borrower does not have a heavy down payment (20%-30% for most banks) and strong excess liquidity, banks don’t want to take the risk on funding their loan.
3. Lack of income: The borrower does not have consistent proof of income for the last two to five years. Regardless of how good their credit score is or how much equity they have in their home, if they can’t show the bank proof of income, loan approval will be tough. This can be a big hurdle in the loan process, particularly for retired borrowers.
4. Lying on the application: Banks have learned their lesson and are no longer putting up with borrowers stretching the truth on their applications.
5. Debt: Borrower has excessive debt and their debt-to-income ratio exceeds the bank’s guidelines.
6. Unemployment: Most lenders will like to see at least two years of stable work to issue loan approval.
7. Self employment: Lenders are looking at self-employed applicants with a lot more scrutiny these days, making it very tough for these borrowers to get approved."
If buying a home of your own is part of your 2011 plan start with a phone call to an experienced loan originator. Here is where "buy local" can really pay off. A mortgage professional working for a local bank or mortgage company will provide you better customer service. They are more knowledge about local loan programs, trends and options than an online lender.
Before you call have:
1. Most recent pay stubs
2. Most recent tax returns
3. Most recent bank statements
4. Most recent list of outstanding loans. (i.e. car loans, bank loans, credit cards)
Armed with this information your mortgage professional will be able to provide you with an accurate assessment of your home buying power.
And, by the way, do not let multiple lenders pull your credit multiple times. This will significantly drop your FICO score and, in some cases, make it impossible for you to buy a home.
Questions? Email me at nell@talk2nell.com
http://tour.prohomesites.com/n246cs4fvf/Domain/
2011 brings new challenges to home buyers and seller. As the old saying goes "For warned is for armed."
The magic words "your loan has been approved" are getting harder to hear. Home buyers are being asked to document and account for every penny, every financial action taken and get assurances from employers of continued job security. Home lending practices have drastically changed. Many programs home buyers relied upon have vanished.
According to RISMEDIA, August 2, 2010 article "Here are the top seven reasons banks are denying home loan requests:
1. Poor credit: The borrower may have a heavy down payment or excellent equity built-up in their house, but if their credit score is under a certain threshold, obtaining a new loan or refinance from a traditional bank is challenging. Even FHA (Federal Housing Administration) loans, which have traditionally catered to borrowers with lower FICO scores, have an average borrower credit score of 693, according to CNN Money, which is above the national average.
2. Insufficient liquidity: If the borrower does not have a heavy down payment (20%-30% for most banks) and strong excess liquidity, banks don’t want to take the risk on funding their loan.
3. Lack of income: The borrower does not have consistent proof of income for the last two to five years. Regardless of how good their credit score is or how much equity they have in their home, if they can’t show the bank proof of income, loan approval will be tough. This can be a big hurdle in the loan process, particularly for retired borrowers.
4. Lying on the application: Banks have learned their lesson and are no longer putting up with borrowers stretching the truth on their applications.
5. Debt: Borrower has excessive debt and their debt-to-income ratio exceeds the bank’s guidelines.
6. Unemployment: Most lenders will like to see at least two years of stable work to issue loan approval.
7. Self employment: Lenders are looking at self-employed applicants with a lot more scrutiny these days, making it very tough for these borrowers to get approved."
If buying a home of your own is part of your 2011 plan start with a phone call to an experienced loan originator. Here is where "buy local" can really pay off. A mortgage professional working for a local bank or mortgage company will provide you better customer service. They are more knowledge about local loan programs, trends and options than an online lender.
Before you call have:
1. Most recent pay stubs
2. Most recent tax returns
3. Most recent bank statements
4. Most recent list of outstanding loans. (i.e. car loans, bank loans, credit cards)
Armed with this information your mortgage professional will be able to provide you with an accurate assessment of your home buying power.
And, by the way, do not let multiple lenders pull your credit multiple times. This will significantly drop your FICO score and, in some cases, make it impossible for you to buy a home.
Questions? Email me at nell@talk2nell.com
http://tour.prohomesites.com/n246cs4fvf/Domain/
Monday, May 17, 2010
Lead-based Paint and The DYI Guy or Gal
Rules about how to do what we do everyday are changing constantly. For instance as of April 22, 2010 we now how Federal Guidelines on how we paint homes built prior to 1978.
Rule changes are confusing at best so we turned to Glenn Garvey of Handyman Matters, a Certified Lead Safe Contract of explain:
April 22, 2010
Are you renovating, repairing, or painting a home that was built prior to 1978?
If the answer is YES, then you need to be aware that there are new Federal EPA rules that impact all contractors that you would hire to perform this work. The rules apply to any person, business or contractor who receives any type of compensation for performing renovation, repair or painting work in pre-1978 homes.
Lead Safety for Renovation, Repair and Painting:
Prior to 1978 Lead was used in some Paint and some Stains to add color, stability and durability to the surface coating. The main hazard with lead based paint is in the dust and debris created during painting, repair or renovation projects.
• Lead can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities and behavioral problems. Lead is also harmful to adults.
• Lead based paint was used in more than 38 million homes until it was banned for residential use in 1978.
• Projects that disturb lead based paint can create dust and endanger you and your family.
Starting April 22, 2010, Federal Law requires that all contractors performing renovation, repair and painting projects that disturb lead based paint in homes, childcare facilities and schools built before 1978 be certified and follow specific work practices to prevent lead contamination, which includes the following:
• Firms must be certified under the Renovation, Repair and Painting Rule to conduct renovations and post renovation cleanup.
• The contractor must employ an EPA Certified Renovator that is directly responsible for each specific project, this individual acts as the Project Manager for the project to insure that Lead Safe Practices are followed by the craftsmen on the job.
• The Certified Renovator ensures that the necessary signs are posted, notifications to the residents occurs, proper containment practices are followed, proper work practices are followed, proper cleanup practices are followed, and that all mandatory paperwork and records are maintained.
Unfortunately, you can not look at the top layer of paint and determine if there is lead based paint on the wall. The rules require that a contractor perform his own test, or have a test performed by a Certified Lead Based Paint Inspector or Risk Assessor prior to starting work. If the tests indicate Lead Based Paint is present, Lead Safe Practices must be followed, if lead is not present, than normal construction practices are followed. If a homeowner does not allow a test for lead to be conducted, the contractor MUST proceed as if lead based paint is present. Your Contractor MUST TEST, or have a report from a Certified Inspector/Assessor in his possession prior to start of work. Failure to comply with the rules can result in a fine of $37,500.00 to the contractor.
There are some exclusions, and currently, some types of very small projects are excluded from the rules.
If you would like more information, you can visit the following web sites:
EPA Lead Home Page: www.epa.gov/lead
Renovate Right Brochure: www.epa.gov/lead/pubs/renovaterightbrochure.pdf
You may also give us a call and we will do our best to answer your questions:
Handyman Matters
Tel: (303) 727-9600
Rule changes are confusing at best so we turned to Glenn Garvey of Handyman Matters, a Certified Lead Safe Contract of explain:
Are You Renovating, Painting or Repairing a Home Built Prior to 1978?
April 22, 2010
Are you renovating, repairing, or painting a home that was built prior to 1978?
If the answer is YES, then you need to be aware that there are new Federal EPA rules that impact all contractors that you would hire to perform this work. The rules apply to any person, business or contractor who receives any type of compensation for performing renovation, repair or painting work in pre-1978 homes.
Lead Safety for Renovation, Repair and Painting:
Prior to 1978 Lead was used in some Paint and some Stains to add color, stability and durability to the surface coating. The main hazard with lead based paint is in the dust and debris created during painting, repair or renovation projects.
• Lead can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities and behavioral problems. Lead is also harmful to adults.
• Lead based paint was used in more than 38 million homes until it was banned for residential use in 1978.
• Projects that disturb lead based paint can create dust and endanger you and your family.
Starting April 22, 2010, Federal Law requires that all contractors performing renovation, repair and painting projects that disturb lead based paint in homes, childcare facilities and schools built before 1978 be certified and follow specific work practices to prevent lead contamination, which includes the following:
• Firms must be certified under the Renovation, Repair and Painting Rule to conduct renovations and post renovation cleanup.
• The contractor must employ an EPA Certified Renovator that is directly responsible for each specific project, this individual acts as the Project Manager for the project to insure that Lead Safe Practices are followed by the craftsmen on the job.
• The Certified Renovator ensures that the necessary signs are posted, notifications to the residents occurs, proper containment practices are followed, proper work practices are followed, proper cleanup practices are followed, and that all mandatory paperwork and records are maintained.
Unfortunately, you can not look at the top layer of paint and determine if there is lead based paint on the wall. The rules require that a contractor perform his own test, or have a test performed by a Certified Lead Based Paint Inspector or Risk Assessor prior to starting work. If the tests indicate Lead Based Paint is present, Lead Safe Practices must be followed, if lead is not present, than normal construction practices are followed. If a homeowner does not allow a test for lead to be conducted, the contractor MUST proceed as if lead based paint is present. Your Contractor MUST TEST, or have a report from a Certified Inspector/Assessor in his possession prior to start of work. Failure to comply with the rules can result in a fine of $37,500.00 to the contractor.
There are some exclusions, and currently, some types of very small projects are excluded from the rules.
If you would like more information, you can visit the following web sites:
EPA Lead Home Page: www.epa.gov/lead
Renovate Right Brochure: www.epa.gov/lead/pubs/renovaterightbrochure.pdf
You may also give us a call and we will do our best to answer your questions:
Handyman Matters
Tel: (303) 727-9600
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