www.AmericaRealty.info 美加地产集团: July 2012

Saturday, July 28, 2012

4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.

1. The general rule of mortgage affordability

As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment

How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.
The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt

Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide

The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

Are Your Neighbors Growing Marijuana?

Your next-door neighbors may look like normal, law-abiding citizens, but you never really know what they’re hiding beneath their homes — like a large-scale marijuana grow operation, perhaps?

One such operation was uncovered in the idyllic town of Bainbridge, Ga., at the home of contractor Johnny Davis and his daughter, Audrey Stanley. Located nearly 15 feet below the ground was a full-scale marijuana grow house, concealed by a hidden entrance inside a nondescript shed.

With a flip of a switch, a custom-made hydraulic table inside the shed moved aside to reveal stairs which lead down to the underground grow house.

“I’m sort of mechanically inclined myself, and I thought it was pretty ingenious they way they did it,” Decatur County Sheriff Wiley Griffin told WTXL.

Over 160 marijuana plants were found in the grow house, with the potential to produce hundreds of thousands of dollars in profits. Davis is said to to have been growing the illicit plants for about a decade.

Unfortunately, the incident doesn’t stand alone. Also this year, firefighters in California’s Riverside County discovered a massive pot-grow operation in a burning, vacant home in Reche Canyon. When the blaze was put out, authorities discovered that nearly three-quarters of the 4,000-square-foot home’s first floor was being used to grow pot. At that point, most of the marijuana had already been destroyed by the flames.

Then there was the landlord in the sleepy town of Workingham, near London, whose tenants used his house and garage to grow over 200 marijuana plants, worth thousands of dollars. After the bust, the “420-friendly” renters left the landlord with over $15,000 worth of damages to the home — including removed floorboards, holes in the roof, and dismantled fixtures (see right).

Such examples are only a small handful of what some might say is a “budding trend” of home pot-growing operations — now more than ever, apparently. The vast inventory of foreclosures and otherwise vacant homes in states hit hard by the housing crisis have proven to be fertile ground for large-scale marijuana farms and “pot gardens.”

In one raid in 2011, police in Las Vegas uncovered 61 plants in a foreclosed four-bedroom home. In another nearby home, they confiscated 878 plants worth approximately $2.6 million. In Nevada alone — which suffered greatly from a run-up in speculative buying during the housing bubble — there were 153 recorded grow operations and 13,000 plants found.

So what are some telltale signs that your neighbors are running a large-scale marijuana operation right under your nose? Police officer Craig Woolnough says to watch out for strong smells, regular buzzing noises (which could indicate the presence of fans or heaters), windows that are warm to the touch, and people coming and going at all hours. Also, suspicious landlords should monitor electricity usage as “drug cultivation requires high levels of power.” Turns out growing the green isn’t so green after all.

By: Krisanne Alcantara

Natural Swimming Pools: 9 Myths Busted

Do you like the idea of a natural swimming pool but get squeamish thinking about mud between your toes and tadpoles clinging to your hair? Environmentally friendly, chemical-free natural swimming pools have low ongoing maintenance costs and are healthy alternatives to conventional pools. They’re fairly common in Europe but less so here in the U.S., largely because of misconceptions. Follow along as we bust some common myths about these beautiful outdoor features.

Myth #1: They’re Expensive

Natural pools cost about the same as traditional swimming pools — construction costs start at about $50 per sq. ft. However, because there are no chemicals to add, yearly maintenance costs are hundreds of dollars less. With natural pools, adds Mick Hilleary of Total Habitat in Bonner Springs, Kan., folks tend to add extensive landscaping to complement the natural look.

Saturday, July 21, 2012

HOAs: What You Need To Know About Rules

If you live in a newer suburban community or planned unit development, you—like some 59.5 million other Americans, according to the Community Associations Institute—are probably a member of a homeowners association. It’s also a good bet that you haven’t given your HOA much thought until you have a problem. Since HOAs make and enforce the community rules, it’s smart to understand what you can do if you can’t or don’t want to follow them.

HOA facts
Each HOA, a volunteer group of neighbors who manage common areas of a subdivision, creates its own covenants, conditions, and restrictions. These CC&Rs cover resident behavior (no glass containers around the pool), property management (no fences higher than 8 feet) and common responsibilities (fee schedules and fines for non-compliance).
Average annual dues for a homeowners association is $420, according to the U.S. Census Bureau. And there’s value in the fee. A 2005 study, which appeared in the Cato Institute’s Regulation magazine, compared a group of Washington, D.C., area HOA properties with similar homes without community benefits—a total of about 12,000 homes. The HOA house values were found to be .54% higher. That’s $1,067 on the average U.S. home value of $197,600.
When you don’t like the rules
Some boards can impose what some homeowners believe are invasive, silly, or elitist rules. In 2008, some news outlets reported on a homeowner in an upscale gated community in Frisco, Texas, who was threatened with fines for parking his new Ford F-150 series truck in his driveway overnight. The board made exceptions for several luxury brands, but his mid-range truck was ruled “not classy enough.”
Even if you disagree with the rules, keep paying your dues. HOAs have broad legal powers to collect fines and fees and regulate activities. If you don’t respond to letters from the board, property manager, or a collection agency, the HOA can and will turn to small claims court or file a lien against your property.
You can handle some issues, if they don’t affect the CC&Rs, with a phone call. For example, adding recycling to the garbage collection route is a budget, not a rules, issue. Call the board member who oversees trash collection to find out if there’s leeway in the budget. Also, the board might find a way to add a service by cutting back on something else.
If you want to do something that’s against the rules—like flying the American flag in your yard—start by making a written request for variance, using the appropriate HOA form in your CC&R documents. A variance gives you permission to be the exception to the rule. Submit your request to the board and property management company.
Help your cause by seeking a compromise: That you’d like to fly the American flag, but only on national holidays.
Don’t expect a quick solution
Some HOA boards meet as little as twice a year. If the board decides the issue is worth pursuing, it may require a community vote. If it passes a majority, the board will adopt it. Board members also may consult the HOA attorney to see if there’s a legal liability if they rule against you.
If you don’t get a timely response, request a hearing and resubmit your request for variance with as much support for your cause as possible.
If the board rules against you without a community vote, you can appeal the ruling with a petition signed by a majority of other homeowners.
But if you fly your flag without permission, expect to get fined. Fines can range from a nominal $25 to a painful $100 or more depending on the issue. Your CC&Rs will indicate the fine schedule—per day, per incident, etc. Interest for nonpayment can accrue, and the HOA can sue you in small claims court.
If you feel the ruling or the fines are unjust, the last resort is to hire an attorney and sue the HOA, as a flag-flying couple did in 1999. They battled their HOA in court for nine years before the case was settled in their favor.
Become the rule-maker
If you don’t like the rules, the best way to change them is to become part of the process.
1. Know your CC&Rs, annual budget, and employee contracts. Do you see areas where expenses can be cut? Are service providers doing their jobs?
2. Volunteer for a committee or task. If the board needs to enforce parking rules, for instance, you can volunteer to gather license plate numbers of residents’ vehicles. In addition, put your professional expertise to work: Assist the board with data entry, accounting, or website design.
3. Stand for election to the board. When a position becomes open, the board notifies the members, and you can put your name forward. New board members are elected at the annual meeting by member majority vote. Many boards are three to nine members large, with terms of one to two years.
Involvement drawbacks
As a board member, be prepared to spend two to four hours a month reviewing property management reports, monitoring budgets, or talking to other board members and residents. Most boards meet quarterly; small boards only meet twice a year, for a couple of hours.
Accept that you might become less popular if homeowners don’t like your decisions. In the worst case, you could be sued, along with the rest of the association.
Involvement benefits
But their are rewards. You’ll feel more in control of your community’s fate. You may find that some rules you didn’t support have merit after all. But most of all, you’ll know you’re doing all you can to protect your quality of life and your home’s value.

8 Tips for Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

Even in His Home, Steve Jobs Embraced Smaller as Better

Ever the innovator, Steve Jobs insisted on having a small but functional kitchen. Image: Johnny Grey Studios

Looks like Steve Jobs was an iconoclast when it came to homes and kitchens, too.

Although Americans lately have embraced smaller homes, shrinking their average size by 5% from 2007 to 2010, Jobs thought smaller was better even 18 years ago, according to British kitchen designer Johnny Grey, who worked with Jobs in the mid-1990s.

“Remarkably, for one of the world’s richest individuals, Jobs lived in modest style,” says Grey about the Palo Alto home that Jobs and his wife, Laurene, called their “cottage.” The center of family life was a cozy kitchen with white cabinets, tiled tops, and wooden edges.

Grey and Jobs worked together on a kitchen design that was contemporary and compact.

“Shaker simplicity was often his default position,” Grey says. “I suspect he became more of a modernist in the late nineties.”

Unfortunately, Jobs never constructed the kitchen.

“He was a very private person and reluctant to have contractors work around him,” Grey says, “powerfully disliking noise, mess and invasion of their home.”

Do you have any memories of Steve Jobs? Have you ever designed a project that you didn’t construct?

What You Must Know About Home Appraisals

Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.

When you refinance or sell your home, the lender will insist that you get an appraisal—an opinion of the value of your home based on what similar homes in your area have sold for in recent months.

Here are five tips about the appraised value of your home.

1. An appraisal isn’t an exact science

When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home.

2. Appraisals have different purposes

If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it.

An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an appraisal for a home loan evaluates today’s market value, an appraisal for insurance purposes calculates what it would cost to rebuild your home at today’s building material and labor rates, which can result in two different numbers.

Appraisals are also different from CMAs, or competitive market analyses. In a CMA, a real estate agent relies on market expertise to estimate how much your home will sell for in a specific time period. The price your home will sell for in 30 days may be different than the price your home will sell for in 120 days. Because real estate agents don’t follow the rules appraisers do, there can be variations between CMAs and appraisals on the same home.

3. An appraisal is a snapshot

Home prices shift, and appraised values will shift with those market changes. Your home may be appraised at $150,000 today, but in two months when you refinance or list it for sale, the appraised value could be lower or higher depending on how your market has performed.

4. Appraisals don’t factor in your personal issues

You may have a reason you must sell immediately, such as a job loss or transfer, which can affect the amount of money you’ll accept to complete the transaction in your time frame. An appraisal doesn’t consider those personal factors.

5. You can ask for a second opinion

If your home appraisal comes back at a value you believe is too low, you can request that a second appraisal be performed by a different appraiser. You, or potential buyers, if they’ve requested the appraisal, will have to pay for the second appraisal. But it may be worth it to keep the sale from collapsing from a faulty appraisal. On the other hand, the appraisal may be accurate, and it may be a sign that you need to adjust your pricing or the size of the loan you’re refinancing.

How to Use Comparable Sales to Price Your Home

Before you put your home up for sale, use the right comparable sales to find the perfect price.

How much can you sell your home for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?

Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights

Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price

If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.
A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.
How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

Buying a House at Foreclosure Auction is Risky Business

You can buy a home at a significant discount at a foreclosure auction, but you’ll face a host of challenges. Don’t get burned; be solutions-ready.

If you want to get a good deal at a foreclosure auction, know what you’re buying and how you’ll be expected to pay for it.

Start by understanding the foreclosure auction rules for your area. State and local governments set their own rules for such factors as:

Bidding process

Amount of deposit

Where the auction is held

Whether the home owners can get their properties back after the sale

You can learn about the process in your area by talking to officials at your county tax department or to a REALTOR®.

Although foreclosure auctions follow local rules, there are some universal challenges you’ll face no matter where you shop for foreclosed properties. Here’s how to solve them.

Solutions to 6 common foreclosure auction challenges

1. Challenge: Getting reliable information about foreclosure sales. Many companies charge fees to send you lists of foreclosures that may not be current, or sell expensive foreclosure-buying “systems” that promise to teach you how to make millions in real estate.
Solution: Most foreclosure sales are still announced in local newspapers. And you can get accurate information about buying foreclosures from reliable book publishers:

Foreclosure Investing For Dummies (For Dummies, 2007)

Keys To Buying Foreclosed and Bargain Homes (Barron’s Educational Series, 2008)

2. Challenge: You can’t get inside the property before the auction to inspect it for structural problems and repairs. Many foreclosure auction properties are in bad shape because the owners couldn’t afford the upkeep. And sometimes angry home owners purposely damage the property to punish the foreclosing lender.
Solution: Walk around the home to check its exterior condition. If it’s vacant, look through the windows. Ask the neighbors what they know about the property. If it was a rental, check the inspection records on file with the local government.

You can safely assume there’s something wrong with any house sold at a foreclosure auction, so cover yourself by bidding no more than 70% of the home’s market value.

3. Challenge: You need to figure out the market value of the house to prepare your bid. Some foreclosure auction announcements include information about the size of the original mortgage. That’s not how much the house is worth or even what the owners owe now. If the current owners bought at the top of the market, their mortgage may be more than the home is worth in today’s market and they could owe even more if there’s a second mortgage on the house.
Solution: Commission your real estate agent to do a broker’s price opinion (BPO) on the home you want to bid on. The BPO will show you comparable sales, telling you what similar, nearby homes that weren’t foreclosure sales have recently sold for.

Bid well below those comparable sales to leave yourself room to pay for repairs and unexpected problems. Ask the agency that runs the auction how to find winning bid amounts from recent auctions. Use that information to guide your current bid, too. A look at local tax and assessment records will tell you more about previous and current auction properties, like square footage and lot size.

4. Challenge: You don’t know if there are liens on the home. Some auctions don’t give you clean title to the property, meaning liens from the federal government or other entities may not be removed during the foreclosure auction process. You’d have to pay off those liens if you won the property.
Solution: Focus your efforts on two or three homes in desirable locations. To find out about any liens, pay a real estate attorney to run a title search on each property and issue a commitment to insure the title after purchase. Ask how the policy treats liens filed between the time of the search and the time you close.

A less-expensive option: Hire an independent title search professional called an abstracter or an online company. Both search options should be under $200, title insurance costs vary by state.

5. Challenge: You have to pay cash and pay it quickly. Most auctions require bidders to come up with the full purchase price in cash within 30 days.
Solution: Don’t count on getting a mortgage that fast. Look for other sources of cash that make financial sense for you.

Take out a home equity line of credit or do a cash-out refinance.

Tap retirement accounts, provided it makes sense for you from a tax perspective.

Work with other investors to fund a partnership to invest in foreclosed homes.

6. Challenge: You’re in love with a house that you’re aware is headed to foreclosure, but you’re afraid to bid on it at the foreclosure auction because you know nothing about the process.
Solution #1: Contact the owners and offer to purchase the home as a short sale. That’s where the bank agrees to let the owners sell for less than what they owe on the mortgage.
Solution #2: You may be able to buy the house after the foreclosure sale. Foreclosure sales are run by a government agency (often the sheriff), which collects the money from the highest bidder and gives it to the bank to pay off the mortgage.

purchase offer

Since the bank pays the real estate agent’s fees, you likely won’t pay more than you’d have bid at the foreclosure auction to outbid the bank, and you’ll avoid most of the risks and unknowns of buying at the auction.

7 Tips for Staging Your Home

Make your home warm and inviting to boost your home’s value and speed up the sale process.

The first step to getting buyers to make an offer on your home is to impress them with its appearance so they begin to envision themselves living there. Here are seven tips for making your home look bigger, brighter, and more desirable.

1. Start with a clean slate

Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter

It’s harder for buyers to picture themselves in your home when they’re looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don’t make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface, suggests Barb Schwarz of www.StagedHomes.com in Concord, Pa. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture

When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement

Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point, advises Schwarz. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms

Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene

Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home—such as a chess game in progress—to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.
Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand

Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don’t surround your home’s entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

More from HouseLogic

Spring cleaning guide

Green cleaning products for the bathroom
Green cleaning products for the kitchen

Other web resources

How to make a small room look larger

How to arrange bedrooms

G.M. Filisko is an attorney and award-winning writer who occasionally rearranges her furniture to find the best placement—and keep her dog on his toes. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Open House Timeline: Countdown to a Successful Sale

An inviting open house can put your home on buyers’ short lists.

Get ready for your open house—stress-free—by starting early and breaking down your to-do list into manageable chunks. Use this timeline of 35 tips and your house will stand out from the competition on open house day.

Four weeks before the open house

Ask your parents to babysit the kids the weekend of the open house. Then book a reservation for your pet with the dog sitter or at the kennel. Having everyone out of the house on the day of will help you keep your home tidy and smelling fresh. Plus, no dogs and no kids equal more time for last-minute prep.

Line up a contractor to take care of maintence issues your REALTOR® has asked you to fix, like leaking faucets, sagging gutters, or dings in the walls.

De-clutter every room (even if you already de-cluttered once before). Don’t hide your stuff in the closet—buyers will open doors to size up closet space. Store your off-season clothes, sports equipment, and toys somewhere else.

Book carpet cleaners for a few days before the open house and a house cleaning service for the day before. Otherwise, make sure to leave time to do these things yourself a couple of days before.

Three weeks before the open house

Buy fluffy white towels to create a spa-like feel in the bathrooms.

Buy a front door mat to give a good first impression.

Designate a shoebox for each bathroom to stow away personal items the day of the open house.

Two weeks before the open house

Clean the light fixtures, ceiling fans, light switches, and around door knobs. A spic-and-span house makes buyers feel like they can move right in.

Power-wash the house, deck, sidewalk, and driveway.

One week before the open house

Make sure potential buyers can get up close and personal with your furnace, air-conditioning unit, and appliances. They’ll want to read any maintenance and manufacturer’s stickers to see how old everything is.

Clean the inside of appliances and de-clutter kitchen cabinets and drawers and the pantry. Buyers will open cabinet doors and drawers. If yours are stuffed to the gills, buyers will think your kitchen lacks enough storage space.

Put out the new door mat to break it in. It’ll look nice, but not too obviously new for the open house.

Week of the open house

Buy ready-made cookie dough and disposable aluminum cookie sheets so you don’t have to take time for clean up after baking (you can recycle the pans after use). Nothing says “home” like the smell of freshly baked cookies.

Buy a bag of apples or lemons to display in a pretty bowl.

Let your REALTOR® know if you’re running low on sales brochures explaining the features of your house.

Clean the windows to let in the most light possible.

Mow the lawn two days before the open house. Mowing the morning of the open house can peeve house hunters with allergies.

Day before the open house

Make sure your REALTOR® puts up plenty of open-house signs pointing in the right direction and located where drivers will see them. If she can’t get to it on the Friday before a Sunday open house, offer to do it yourself.

Put away yard clutter like hoses, toys, or pet water bowls.

Lay fresh logs in the fireplace.

Day of the open house

Put checkbooks, kids’ piggybanks, jewelry, prescription drugs, bank statements, and other valuables in the trunk of your car, at a neighbor’s house, or in your safe. It’s rare, but thefts do happen at open houses.

Set the dining room table for a special-occasion dinner. In the backyard, uncover the barbeque and set the patio table for a picnic to show buyers how elegantly and simply they can entertain once they move in.

Check any play equipment for spider webs or insect invasions. A kid screaming about spiders won’t endear buyers to your home.

Clean the fingerprints off the storm door. First impressions count.

Put up Post-It notes around the house to highlight great features like tilt-in windows or a recently updated appliance.

Remove shampoo, soap, toothbrushes, and other personal items from the bathtub, shower, and sinks in all the bathrooms. Store them in a shoebox under the sink. Removing personal items makes it easier for buyers to see themselves living in your house.

Stow away all kitchen countertop appliances.

One hour before the open house

Bake the ready-to-bake cookies you bought earlier this week. Put them on a nice platter for your open house guests to eat with a note that says: “Help yourself!”

Hang the new towels in the bathrooms.

Put your bowl of apples or lemons on the kitchen table or bar counter.

Pick up and put away any throw rugs, like the bath mats. They’re a trip hazard.

15 minutes before the open house

Open all the curtains and blinds and turn on the lights in the house. Buyers like bright homes.

Light fireplace logs (if it’s winter).

Didn’t get those cookies baked? Brew a pot of coffee to make the house smell inviting.

During the open house

Get out of the house and let your REALTOR® sell it! Potential buyers will be uncomfortable discussing your home if you’re loitering during the open house. Take advantage of your child- and pet-free hours by treating yourself to something you enjoy–a few extra hours at the gym, a trip to the bookstore, or a manicure.

Negotiate Your Best House Buy

Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home.

Buying a home can be emotional, but negotiating the price shouldn’t be. The key to saving money when purchasing a home is sticking to a plan during the turbulence of high-stakes negotiations. A real estate agent who represents you can guide you and offer you advice, but you are the one who must make the final decision during each round of offers and counter offers.

Here are six tips for negotiating the best price on a home.

1. Get prequalified for a mortgage

Getting prequalified for a mortgage proves to sellers that you’re serious about buying and capable of affording their home. That will push you to the head of the pack when sellers choose among offers; they’ll go with buyers who are a sure financial bet, not those whose financing could flop.

2. Ask questions

Ask your agent for information to help you understand the sellers’ financial position and motivation. Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

3. Work back from a final price to determine your initial offer

Know in advance the most you’re willing to pay, and with your agent work back from that number to determine your initial offer, which can set the tone for the entire negotiation. A too-low bid may offend sellers emotionally invested in the sales price; a too-high bid may lead you to spend more than necessary to close the sale.

Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.

4. Avoid contingencies

Sellers favor offers that leave little to chance. Keep your bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

5. Remain unemotional

Buying a home is a business transaction, and treating it that way helps you save money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.

Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

6. Don’t let competition change your plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions—such as waiving an inspection—that aren’t in your best interest.

Read more: http://buyandsell.houselogic.com/articles/negotiate-best-house-buy/#ixzz21JmPUKbq

Pet Odor Can Chase Away Buyers

Don’t let pet odors derail your home sale.

Having pet odors inside your home can turn off potential home buyers and keep your home from selling. Ask your real estate agent for an honest opinion about whether your home has a pet smell.

If your agent holds her nose, here’s how to get rid of the smell:

Air your house out. While you’re cleaning, throw open all the windows in your home to allow fresh air to circulate and sweep out unpleasant scents.
Once your house is free of pet odors, do what you can to keep the smells from returning. Crate your dog when you’re out or keep it outdoors. Limit the cat to one floor or room, if possible. Remove or replace pet bedding.

Scrub thoroughly. Scrub bare floors and walls soiled by pets with vinegar, wood floor cleaner, or an odor-neutralizing product, which you can purchase at a pet supply store for $10 to $25.

Try a 1:9 bleach-to-water solution on surfaces it won’t damage, like cement floors or walls.

Got a stubborn pet odors covering a large area? You may have to spend several hundred dollars to hire a service that specializes in hard-to-clean stains.

Wash your drapes and upholstery. Pet odors seep into fabrics. Launder, steam clean, or dry clean all your fabric window coverings. Steam clean upholstered furniture.

Either buy a steam cleaner designed to remove pet hair for around $200 and do the job yourself, or pay a pro. You’ll spend about $40 for an upholstered chair, $100 for a sofa, and $7 for each dining room chair if a pro does your cleaning.

Clean your carpets. Shampoo your carpets and rugs, or have professionals do the job for $25 to $50 per room, depending on their size and the level of filth embedded in them. The cleaner will try to sell you deodorizing treatments. You’ll know if you need to spend the extra money on those after the carpet dries and you have a friend perform a sniff test.

If deodorizing doesn’t remove the pet odor from your home, the carpets and padding will have to go. Once you tear them out, scrub the subfloor with vinegar or an odor-removing product, and install new padding and carpeting. Unless the smell is in the subfloor, in which case that goes next.

Paint, replace, or seal walls. When heavy-duty cleaners haven’t eradicated smells in drywall, plaster, or woodwork, add a fresh coat of paint or stain, or replace the drywall or wood altogether.

On brick and cement, apply a sealant appropriate for the surface for $25 to $100. That may smother and seal in the odor, keeping it from reemerging.

Place potpourri or scented candles in strategic locations. Put a bow on your deep clean with potpourri and scented candles. Don’t go overboard and turn off buyers sensitive to perfumes. Simply place a bowl of mild potpourri in your foyer to create a warm first impression, and add other mild scents to the kitchen and bathrooms.

Control ongoing urine smells. If your dog uses indoor pee pads, put down a new pad each time the dog goes. Throw them away outside in a trash can with a tight lid. Remove even clean pads from view before each showing.

Replace kitty litter daily, rather than scooping used litter clumps, and sweep up around the litter box. Hide the litter box before each showing.

Relocate pets. If your dog or cat has a best friend it can stay with while you’re selling your home (and you can stand to be separated from your pet), consider sending your pet on a temporary vacation. If pets have to stay, remove them from the house for showings and put away their dishes, towels, and toys.

Friday, July 20, 2012

Homes Prices Pushed Up by Limited Supply of Starter Homes

A tight supply of affordable homes pushed prices up but slowed the number of homes sold in June, according to data collected by the NATIONAL ASSOCIATION OF REALTORS®.

“Despite the frictions related to obtaining mortgages, buyer interest remains solid,” said NAR Chief Economist Lawrence Yun. “But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets. The price improvement also results from fewer distressed homes in the sales mix.”

The national median home price was $189,400 in June, up 7.9% from last June. That’s the fourth monthly price increase and the biggest leap in median price since February of 2006, when the median price rose 8.7%. The median price is the point at which half the homes sold for more and half sold for less.

With supply limited, the number of homes, townhomes, condominiums, and co-ops selling in June fell 5.4% from May’s sales volume, with 4.37 million homes changing hands in June. That’s 4.5% more than sold in June of 2011.

The number of distressed sales in June held steady. About 13% of homes sold in June were foreclosures and another 12% were short sales, where the bank allowed the owners to sell for less than what was owed on the mortgage.

Foreclosures sold for an average discount of 18% below market value in June, while short sales were discounted 15%. “The distressed portion of the market will further diminish because the number of seriously delinquent mortgages has been falling,” Yun predicted.

There are more shoppers and fewer sellers out there, said NAR President Moe Veissi. “Buyer traffic has virtually doubled from last fall, while seller traffic has risen only modestly,” he said. “The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices. Nonetheless, incorrectly priced homes will not attract buyers.”

The number of homes for sale nationwide fell 3.2% from May to June. There are now 24.4% fewer homes for sale than there were a year ago when there was a 9.1-month supply. At the current sales pace, there was a 6.6-month supply of homes for sale in June, up from a 6.4-month supply in May.

First-time buyers bought about a third of the homes purchased in June. “A healthy market share of first-time buyers would be about 40%, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry-level activity,” Yun said.

Investors are also buying — they purchased 19% of homes in June, up from 17% in May.

Median home prices

Single-family homes had the highest national median sales price, $190,100 in June, up 8% from a year ago.

The national median sales price for condos and co-ops was $183,200, up 6.9% from last June.

Regional home sales and prices were mixed:

Northeast: Median price fell 1.8% to $253,700 and sales dropped 11.5%

Midwest: Median price rose 8.4% to $157,600 and sales dropped 1.9%

South: Median price up 6.6% to $165,000 and sales dropped 4.4%

West: Median price up 13.3% to $233,300, sales down 6.9%.

Source: NAR

Read more: http://www.houselogic.com/news/home-thoughts/homes-prices-pushed-limited-supply-starter-homes/#ixzz21BLp8U2Y

7 Ways the Housing Market is Looking Good

By The Associated Press
WASHINGTON — Americans are regaining confidence in the housing market five years after it collapsed.
Builders are starting work on more homes. Sales of new and previously occupied homes are up from the same time last year. Home prices are rising in most markets.
The market still has a long way to regain full health. But the data suggest that a recovery is under way.
Here’s a look at recent housing indicators:
Construction
U.S. builders began work in June on the most new homes in nearly four years. Housing starts rose 6.9% from May in June to a seasonally adjusted annual rate of 760,000. That’s the highest since October 2008.
The level of construction remains well below the rate of roughly 1.5 million homes a year that’s considered healthy and the 2 million rate reached during the housing bubble. But it’s much stronger than the annual rate of 478,000 homes at the depth of the housing bust.
Prices
Prices in half the 20 cities in the Standard & Poor’s/Case-Shiller home price index have risen over the past 12 months. Even with the gains, the index remains 34% below its peak reached in the summer of 2006, at the height of the housing boom. Based on the 20-city index, home prices are now at about the same level as in early 2003.
New-home sales
Sales have reached a seasonally adjusted annual rate of 369,000 homes, the best pace since April 2010. Despite the increases, the level is less than half the roughly 700,000 that economists consider healthy.
Sales of previously occupied homes
Sales have risen 9.6% from a year ago. Still, the pace has slowed since nearly touching a two-year high in April and remains well below the 6 million that economists consider normal. Sales of previously occupied homes in May reached a seasonally adjusted annual rate of 4.55 million.
Builder sentiment
Confidence among U.S. home builders has reached a five-year high, according to the National Association of Home Builders/Wells Fargo builder sentiment index. The index is based on responses from 318 builders. Turnout by prospective buyers is also at a level not seen in five years.
Homebuilder stocks
The stocks of the 13 U.S. homebuilders whose shares are publicly traded have increased an average 60% this year. By contrast, the Standard & Poor’s 500 stock index is up about 9% this year.
Mortgage rates
The average rate on the fixed-rate 30-year mortgage is at a record low of 3.56%. The rate on the 30-year loan has fallen to or matched record low levels in 11 of the past 12 weeks.

Read more: http://www.houselogic.com/news/home-thoughts/7-ways-housing-market-looking-good/#ixzz21BLSYkGX

Lowe’s Bets Big on Smart Home Systems

July 20 — Lowe’s executives are hesitant to say that we’ve arrived at the home of the Jetsons, with everything in your house automated and controlled by computers and wireless devices, but they say we’re not far off.“There’s been so much hype, we don’t usually say ‘the Jetson’s house,’” said Kevin Meagher, vice president of smart homes for Mooresville-based Lowe’s Inc. “The reality is, we’re getting there.”
The home improvement company has started rolling out its Iris system, which it says will help consumers use less electricity, increase security, and help monitor and alert home owners to everything from freezer doors left open to elderly parents in trouble.
Iris gives users the ability to remotely control and monitor systems such as thermostats, door locks, power consumption, cameras, and motion sensors, on a computer or mobile device. Lowe’s is expanding Iris to nearly 500 stores this week, up from a pilot run in 10 stores. The products are also available online nationwide.
Lowe’s hopes to expand the system to work wirelessly with more household appliances and possibly even electricity meters in future “smart grids.”
Similar systems
Iris is the latest in a string of smart home systems that have come out recently. Time Warner Cable rolled out its IntelligentHome service in Charlotte six months ago. Verizon unveiled a similar system in late 2011, and Comcast is pushing its Xfinity smart home system to customers. AT&T is piloting a similar system called Digital Life. And home security company ADT has offered a smart home system called Pulse since 2010.
But there are still questions over whether smart homes will truly catch on, or even whether consumers really want them. The Pew Internet & American Life Project released a survey of experts on where they see the future of smart home systems in June.
Just over half agreed with the prediction that fully connected smart homes would be much more widespread and efficient in 2020, while just under half predicted most smart home efforts will fail due to consumer trust issues and the systems’ complexity.
Smart home systems will certainly have to overcome hurdles before consumers adopt them. Chief among those, Pew found, is the problem of getting diverse manufacturers to all use compatible standards in consumer electronics, so they can all talk to each other.
The systems are also more complicated than old-fashioned “dumb” homes, even though Lowe’s and others have taken steps to simplify them. And consumers could react negatively to the “Big Brother” aspect of having their energy usage and comings and goings constantly monitored, even if by a service they signed up for.
Many of the systems on the market now offer similar capabilities. Lowe’s Iris, Time Warner Cable’s Intelligent Home, and Verizon all give users the capabilities to remotely set thermostats, set door alarms, and connect to wireless cameras in the home, for example.
Hub and sensors
Here’s how Iris works: Once Iris is installed, a small hub wirelessly talks to various home appliances and a user’s mobile device. Users can set rules, such as turning thermostats down when they leave, or wirelessly turn them back up before they get home. A key fob sensor tells the system whether the user is at home or not. The system also comes with motion sensors and cameras, which can be accessed from a mobile device, sensors to tell whether a door is open or closed, a smoke detector, and flood sensors.
Lowe’s is rolling out more devices integrated with Iris soon, such as door locks and pet doors, which can be configured to open or close at certain times. The retailer also is leveraging its connections with manufacturers to come up with more connected devices in the future, such as valves that automatically turn off water if a flood is detected, or a water heater that learns your personal routine and heats the water only when you generally need it.
The base cost is $179 for a security kit with an Iris hub, door sensors, motion sensors, and a security keypad. Or you can pay $179 for an energy kit with an Iris hub, one wireless, energy consumption-monitoring wall outlet, and a thermostat. A combined kit with everything from both starter kits costs $299.
Adding more sensors and accessories costs more. A wireless video camera costs $129, while each additional key fob and door sensor costs $19.99, for example.
Monthly plan
Lowe’s is hoping to differentiate Iris in several ways, Meagher said. The system doesn’t require professional installation (though you do need to be competent enough to install a thermostat or door lock if you’re going to try it yourself). In addition to the upfront cost, Lowe’s requires you sign up for a $9.99 monthly plan to receive most of the smart home automation systems. But the company lets users go month-to-month instead of signing a contract.
Time Warner Cable’s IntelligentHome system offers similar capabilities, allowing users to remotely control lighting and their thermostats, and offering security cameras, motion sensors, and alarms. The system comes with a $99 installation fee and a $99 equipment charge, and costs $33.99 a month, with an 18 month contract.
Verizon’s service, available to FiOS broadband customers, costs about $288 for an equipment bundle offering similar capabilities. The system also requires an $89.99 starter kit, which includes a camera and wireless hub device, as well as a $9.99 monthly fee.
Iris doesn’t offer the ability to contact authorities if an alarm is tripped. Meagher said most alarms are false alarms, making such systems less effective, but the other smart home systems will call police or firefighters if a burglar alarm or a fire alarm goes off.
Meagher said the market for smart home systems has yet to take off, but he believes their widespread adoption is inevitable as more devices become available to connect.
“The value to the consumer of connecting everything in the home is considerable,” he said. “Everything will be connected.”

By Ely Portillo, The Charlotte Observer, N.C.
Read more: http://www.houselogic.com/news/home-thoughts/lowes-bets-big-on-smart-home-systems/#ixzz21BL0QQEK

Mortgage Rates Tick Lower to Another Record

Mortgage rates moved lower once again, with the average 30-year fixed mortgage rate setting a new record low of 3.78% this week, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.
The average 15-year fixed mortgage rate inched downward to 3.04%, while the jumbo 30-year fixed mortgage retreated to 4.43%, both record lows. Adjustable mortgage rates were lower, with the average 5/1 ARM rate falling to 2.89% and the 7/1 adjustable pulling back to 3.05%. Both of those are also record lows.
Weak retail sales were the latest indicator of a flagging economy. While Fed Chairman Ben Bernanke gave no indication of further stimulus in his semiannual Congressional testimony, the summer economic swoon gave bond investors all the excuse they needed to continue piling into government and mortgage-backed bonds.
Mortgage rates are closely related to the yields on such bonds.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.78%, the monthly payment for the same size loan would be $929.64, a difference of $312 per month for anyone refinancing now.
Source: Bankrate.com

Read more: http://www.houselogic.com/news/home-thoughts/mortgage-rates-tick-lower-another-record/#ixzz21BJxNY1F

Replace Old Windows with Energy-Efficient Models

If your windows are more than 15 years old, you may be putting up with draftiness, windows that stick in their frames, and skyrocketing energy bills. Energy-efficient windows would be a great improvement, but replacement can be very expensive. In a 2007 survey conducted by Consumer Reports, half of respondents spent $8,000 or more to replace all the windows in their homes, and 16% shelled out $15,000+.

Windows recoup much of their cost
The range for energy-efficient window pricing is wide, but Energy Star-qualified windows start around $120 for a 36” x 72” single-hung window and can go up 10 times that. With labor, you’re looking at about $270 to $800+ per window. Typically, windows at the low end of the price spectrum are less energy efficient.
But that doesn’t mean the numbers can’t make sense for you. For starters, window replacement is one of the best home remodeling projects in terms of investment return: For vinyl windows, you can recoup 68% of the project cost in added home value, according to Remodeling Magazine’s annual Cost vs. Value Report.
Based on the replacement projects outlined in Cost vs. Value that use vinyl windows, that’s a value add of about $7,700 to $9,900. Plus, if you choose windows that qualify for the federal tax credit (U-factor and solar heat gain coefficient ratings must be 0.3 or less), you can effectively lop $200 off the purchase price for windows put into service in 2011.
You’re also likely to see modest savings on your energy bill. In general, you’ll save $126 to $465 a year if single-pane windows in a 2,000-square-foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a coalition of government agencies, research organizations, and manufacturers that promotes efficient window technology.
Keep in mind, though, that the savings can vary widely by climate, local energy costs, and the energy efficiency of both the windows purchased and the windows being replaced. Finally, you may qualify for low-interest loans or other incentives offered by your local utility that can sweeten the deal.
Sample costs, incentives
Here’s a hypothetical situation to help frame your purchase decision:
Location: Minneapolis, Minn.
Old windows: Double-pane, non-Energy Star windows
New windows: Energy Star-qualified, tax credit-qualified vinyl windows
Purchase price plus installation: $10,500
Subtract tax credit: -$200
Subtract local utility rebate for installing Energy Star replacement windows (12 windows, $25 each): -$300
Net price: $10,000
The Minneapolis home owner could recoup about 69% of the project cost at resale, according to estimates in Cost vs. Value, so the out-of-pocket expenses are minimal.
And his annual energy savings will be $91. Had the original windows been single-paned non-Energy Star, his annual savings would be $385. Double-paned windows are more common.
Evaluate price vs. energy efficiency
The range for energy-efficient window pricing is wide, but you can expect to pay about $500-$1,000, including installation per window. The most efficient windows on the market are usually the most expensive, but it’s not necessary to buy the highest-end products to realize utility bill savings or improve comfort and aesthetics. So how do you choose the most energy-efficient models for the price?
Thanks to Energy Star, you really don’t have to, according to Nils Petermann, project manager for the Efficient Windows Collaborative. Energy Star labels will tell you whether a window performs well in your climate based on ratings from the National Fenestration Rating Council.
However, if you’re looking for windows that qualify for the $200 federal tax credit, make sure the U-factor and SHGC are both less than or equal to 0.3 regardless of climate zone. Not all Energy Star windows qualify.
Know the language of windows
It’s also helpful to familiarize yourself with terms that appear on many window labels:
Glazing is simply the glass used in the window. The number of layers of glazing (single, double, or triple) don’t necessarily equal greater efficiency; the presence or absence of the other items in this list affects a window’s total energy performance, says Petermann. Glazing coatings can substantially affect a window’s U-factor, or degree of insulation against the outdoors.
Low-E stands for low emissivity, the window’s ability to reflect rather than absorb heat when coated with a thin metallic substance. Low-E coatings add up to 10% to the price of a window.

If your windows are in relatively good shape but you’d like better insulation, you can buy and apply Low-E films to your windows. They’re effective, but not as much as those put between glazing layers during manufacture. Look for the NFRC rating on these films, Petermann says. Low-E films start at about 50 cents per square foot, but you may want to check into the cost of having them professionally installed for large or complicated applications.
Gas fills typically consist of argon or krypton gas sandwiched between glazing layers to improve insulation and slow heat transfer. They often won’t work at high altitudes because differences in air pressure cause them to leak out.
Spacers separate sheets of glass in a window to improve insulating quality; the design and material are important to prevent condensation and heat loss.
Frame materials include vinyl, wood, aluminum, fiberglass, and combinations of. They each have different strengths: Vinyl windows are good insulators and are easy to maintain, but contract and expand with temperature changes, affecting the window’s air leakage; wood offers a classic look but is similarly affected by moisture changes and needs regular maintenance; fiberglass is very stable and low-maintenance but can be expensive; and aluminum is lightweight, stable, and a good sound proofer but is a rapid conductor of heat, making it a drain on energy efficiency.

Fla.’s housing market continues positive trends in June

ORLANDO, Fla. – July 19, 2012 – Florida’s housing market had increased pending sales, more closed sales, higher median prices and a reduced inventory of homes for sale in June, according to the latest housing data released by Florida Realtors®.

“Florida’s housing recovery continues its positive momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “All of the signs point to solid gains, which is good news for the state’s economy. In June, pending sales were up 31 percent for existing single-family homes and nearly 23 percent for townhouse-condo units compared to a year ago. The trend shows that many buyers are ready to purchase their Florida dream home, but a lack of financing options and overly restrictive credit standards remain obstacles.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

Statewide closed sales of existing single-family homes totaled 18,800 in June, up 5.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median sales price for single-family existing homes last month was $151,000, up 8.2 percent from June 2011.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year. In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,202 units sold statewide last month, up 1.5 percent from those sold in June 2011. The statewide median for townhome-condo properties was $110,000, up 15.8 percent over the previous year. NAR reported the national median existing condo price in May 2012 was $180,000.

Last month, the inventory for single-family homes stood at a six-months’ supply; inventory for townhome-condo properties was at a 5.9-months’ supply, according to Florida Realtors.

“The trend we’ve seen established over the past year is continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “In June, every housing market indicator moved in the right direction. Closed sales are up, but so are pending sales, median prices, average prices and the ratio of sales price to list price. Conversely, listings are down, days on market are down and – most important – inventories are down. We have now reached a six months’ supply of inventory for existing single-family homes and 5.9-months’ supply for townhouse-condos.”

Tuccillo added, “With an improving employment environment in Florida, we expect that the housing market recovery will continue in the future.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.68 percent in June 2012, significantly lower than the 4.51 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the June 2012 data report PDF under Market Data at:

How to Decide Which Plants Get Water During a Drought

Drought and community-imposed restrictions that limit the amount of water you can use for landscaping and gardening may force you to make tough decisions about which plants to save and which to sacrifice.

Your choices should depend on your priorities and the purpose your plantings serve, says Sandra Dark, author of Weatherproofing Your Landscaping.

“Drought provides a gut check for your landscape,” says Dark.

To set your priorities during a drought and community water shortage, ask yourself the following 6 questions:

1. Is my lawn really worth it?

No! Lawns take lots of water and fertilizer to stay green. In drought, let your grass die and reseed when (and if) the rain returns. Better yet, replace your lawn with native and drought-resistant plants, and low-maintenance turf grasses.

2. How valuable is this plant?

The longer a tree or shrub takes to grow, the more valuable it is. Fast-growing pines, for instance, can quickly replace older pines sacrificed to drought; slow-growing American beeches take years to mature and are more difficult to replace.

3. Does this plant anchor my landscaping plan?

If a dogwood, for instance, is the focal point of your yard, water it first. Easily replaced foundation plants should fall lower on your watering list.

4. Does this plant save or cost me money?

Save trees or shrubs that shade your home and save energy costs.

Sacrifice annuals that you buy each year anyway.

Let go of water-guzzling perennials and replace them with drought-resistant varieties, such as ornamental grasses and lavender.

5. Does this plant have sentimental value?

Have a tree your kids loved to climb? Water plants and trees that are the stuff of memories.

6. How healthy is this plant?

Sacrifice old and sick plants already close to the end of life. However, newly-planted trees and shrubs require frequent watering. So if water is restricted, you might have to sacrifice them for middle-aged trees that have a fighting chance of survival.

Tips on how to keep your chosen plants alive

Protect tree feeder roots by watering around the tree’s drip line (from the trunk to the end of the leaf canopy). Dig down 1 ft. to make sure the soil is moist, but not soggy. When the soil dries out, water again with a drip hose.

Bulbs are less vulnerable to drought than other perennials, but will die under extreme heat. Cover bulbs with 3-4 inches of an airy mulch, such as cedar, which holds moisture and moderates soil temperature.

Water perennials, annuals, and container plants with greywater from your shower, bath, or kitchen sink. Use biodegradable bath and dish soap, which won’t hurt plants. Never water plants with greywater containing bleach.

Spread only 2-3 inches of mulch around (but not touching) shrub and tree trunks. If you add too much mulch, roots will grow up and into the mulch, becoming more vulnerable to heat.

Move containers into the shade or bring them indoors. Water with greywater.

Replace high-maintenance plants with native plants better suited to your climate. Your extension agent can help you choose.

By: Lisa Kaplan Gordon
Read more: http://www.houselogic.com/home-advice/plants-trees/drought-water-plants/#ixzz21B9xGEhb