Shop smart for your next home
If you are a first-time home buyer, what’s the best way to go about the search? The temptation to browse many types of properties is real. Suppress the urge by beginning with the end in mind. Establishing parameters based on the needs and wants of your household will make the process manageable and more fruitful. About.com’s video tutorial, “First-Time Home Buying Tips,” lists the basic steps for navigating the journey. When the homework is complete and you feel ready to start walking through houses, consider the catchphrase used by many real estate experts — “location, location, location.”
The old adage still proves true. Though the recent real estate crisis has upended some of the traditional must-have’s, location still rules. According to Marianne Cusato’s blog, “5 Must-Know Real Estate Trends” featured in Huff Post Miami, buyers are less focused on square footage and more attuned to efficiency of space and proximity to local services. Everything’s relative to the unique needs of the buying household. Cusato encourages buyers to focus on the following criteria — 1) livability of the home, 2) feasibility of the daily commute, 3) efficiency of the floor plan, 4) staying true to the heart over following the trends, and 5) connectability to the local community.
Resale value is important but not the only determining factor for selecting a property. While the market can be forecast with historic data, there’s no glass ball with which to squarely predict the future. Choosing to live in an area that supports jobs, solid public schools, and local amenities is perhaps the best way to hedge your investment. So when it comes to your home search, what are your top five must-have’s?
Seattle is one of America’s fastest-growing cities
Seattle makes Forbes’s top ten list for the fastest-growing cities in the U.S. The Emerald City’s economic growth rate for the period 2011-2016 is projected at 3.7 percent with population growth at 1.2 percent. The current population is 3.54 million enjoying a median income of $65,405. The top ten include:
- Austin
- Dallas
- San Jose
- Houston
- Salt Lake City
- Raleigh, NC
- Seattle
- San Francisco
- San Antonio
- Atlanta
Forbes produced the list with the help of Moody’s Analytics of the 100 largest metropolitan areas of the U.S., weighing projected economic growth, unemployment, and median income. In early April, Moody’s released Chief Economist Mark Zandi’s positive outlook on the national economy. Zandi anticipates 2.5% growth through mid-2013 accelerating to 4% in mid-2014, with unemployment falling below 6% by late 2015.
Sellers primp homes for spring market
Spring is the time of year when homeowners drag out their mowers, weed whackers, and blowers to maintain their lawns and add curb appeal. This year, many owners may actually be sellers who are primping their properties for the market. According to Smart Money, March sales on gardening equipment, furniture, and building materials jumped by 14% from February. Both Lowes and Home Depot reported significant sales growth, indicating that folks are busy with home improvement projects.
Real estate experts are optimistic that 2012 will prove to be a strong housing year. While the National Association of Realtors® reports that pending home sales were down slightly in February, they remain higher than the first half of 2011. The Pending Home Sales Index, based on contract signings, adjusted to 96.5 in February from 97.0 in January, but is still higher than last February’s level of 88.4. Lawrence Yun, NAR chief economist, is positive. “If activity is sustained near present levels, existing-home sales will see their best performance in five years.”
And what if shadow inventory floods the market, threatening to bring home prices down? Yun counters this fear, explaining that such inventory is actually on a consistent decline. Government and bank-owned properties are decreasing, and visible inventory (properties currently on the market) has dipped to 5-year lows. Yun concludes that the current market should be able to absorb shadow inventory. If home sales grow by as much as 7 to 10 percent, 2012 may indeed by the year that housing rallies back.
Boost your home’s curb appeal
One of the best ways to increase your home’s value is to boost its curb appeal, which has everything to do with landscaping design, lighting, and special features that showcase personality. Homeowner Kate needed serious inspiration for her lackluster house. Lowes’ creative experts teamed up to renew and soften the front yard and entryway, lending the house a terrific first impression.
What buyers want
What are buyers looking for in homes? While property features are never fixed, markets often display trends. Richard Taylor, a residential architect based in Dublin, OH, writes about his clients’ search for the ideal. In his Zillow blog post, “See Top 5 Requests for Home Design,” Taylor highlights that many homeowners are choosing to stay put, investing their time and money into remodeling. But for those who are moving or designing a new or second home, these features are key:
- Smaller square footage — many households want houses under 3,000 square feet but ask for maximized floor plans.
- Lots of light and windows — as homeowners look for more casual architectural design that interacts with the natural environment, they seek more glass, less wall.
- Zero wasted space — multi-purpose rooms are favored over single-use rooms.
- Energy efficiency — more Americans seek to save money and leave a smaller footprint on the environment.
The trends are not unique to the Midwest. CBS Boston reports that buyers in their market want smaller, efficient homes that are move-in ready and located near urban centers. Open floor plans and first-floor bedrooms are also hot, particularly for multi-generational households who look for flexibility of space that can accommodate older family members. Whether the buyers are from Dublin, Brookline or Seattle, they share common ground when it comes to the most valued features in a home.
iDream Agent app and home searches
There’s a new app that aims to assist both homebuyer and real estate agent. Searching for houses requires a heavy investment of time, energy, and emotions. With the iDream Agent app, the hours of legwork and gathering of data won’t go to waste. Buyers can store property information as they visit each property and share the data with their agents. At the end of the day, decision makers reference photos and notes as they deliberate which homes best match their needs and wants.
The iDream Agent app allows users to do the following (outlined by the iDream Agent website):
- Take notes on all your favorite homes.
- Take your own pictures and organize them.
- Organize and remember every home.
- Rate each home and any feature that is important to you.
- Easily compile all the information you need and determine your favorite home.
- Share the homes that interest you via email, Facebook, and Twitter
While the iPhone and Web application launched today, the iDream Agent app idea came about when Dustin Washington and his wife were knee-deep in their own home search. After visiting multiple houses and unable to remember the details, Washington decided to tame the information overload into a system that would help buyers and their agents interact with the data more fluidly. Purdue Research Park-based DelMar Information Technologies LLC developed the app, which is now available at the Apple App Store for $4.99.
Spring house repairs that will save you money
This spring, homeowners can save money by being proactive with home maintenance and preventing major repairs down the road. MarketWatch’s Amy Hoak delivers sound advice on some timely house checks.
- Clean and repair Gutters.
- Check the Roof for broken or loose shingles.
- Clean out Vents and service the Air Conditioning.
- Wash and weatherproof the Deck.
- Install a Home Security System and get a discount on your homeowner’s insurance.
- Check appliances for leaky hoses and overall efficiency.
Marketing an affordable green house
Marketing eco-friendly products can be a challenge. While many Americans understand that human beings are leaving a bigger than desirable footprint on the planet, most consumers are not willing to pay a premium for green.
The automobile industry, for example, sold 1.4 million vehicles in the month of March. Just 2 percent of that total was made up of hybrids (30,000 cars). The Wall Street Journal reports that in spite of rising fuel costs at the pump, most drivers will not hold out 4 or more years to make up for the additional $1,000 – $4,000 (on average) on an electric car. For now, it appears that Americans have adapted to the high price of gas.
Residential builders face a similar marketing conundrum, but one Oregon project stands out. Cellar Ridge Custom Homes and m.o.daby design have developed the 50/10 House that promises 50% more efficiency with a 10% upfront investment. The primary green features include the following:
- Above-code insulation
- Heat recovery ventilation
- Energy-efficient lighting
- Air sealing in gaps and cracks
- Thermally broken wall system
- Energy Star appliances
- High-efficiency water heater
The homes range in size from about 1,200 – 1,600 square feet. Starting price is $190,000 in the Portland metro area and $225,000 in McMinnville, Oregon. Cellar Ridge and m.o.daby aim to offer buyers eco-conscious living at affordable prices. Several architectural designs and floor plans are available.
Small house, big dream
Dee Williams, an environmentalist, lives in an 84-square foot cabin in Olympia, Wash. Her small house is constructed entirely of wood, recycled parts, and some copper — no plastics, no running water. In this video, Williams shares her decision to live out the dream closest to her heart.
http://money.cnn.com/video/pf/2012/03/22/pf-uh-tiny-home-washington.cnnmoney/
Investment homes way up in 2011
The National Association of Realtors® (NAR) reported a huge rise in investment home sales in 2011 by the tune of 64.5 percent and 1.23 million properties. According to NAR’s 2012 Investment and Vacation Home Buyers Survey, vacation homes also went up by 7.0 percent in 2011 to 502,000 units. Collectively, investment and vacation homes comprised more than one-third of the total residential market. NAR Chief Economist Lawrence Yun explains the allure of buying bargains. “Rising rental income easily beat cash sitting in banks.”
If you have the funds and the wherewithal to be a landlord, consider these tips before making your first investment purchase:
- Understand that there’s more than one way to invest in residential real estate — rent the property to a credit-worthy tenant or restore and resell the house.
- Consider the pros and cons of leasing an apartment, condo, or house.
- Think location, location, location, and purchase a house in a desirable community with a good school district and proximity to public transportation and amenities.
- Ensure adequate capital — unanticipated expenses can and will come up. Jill Sjolin, an agent with a real estate firm in Woodinville, Wash, recommends that landlords have six months of mortgage payments saved to cover vacancies in addition to maintenance and repairs.
- Consult with an expert real estate professional in your area to gather the right market data. The projected rental income should exceed the costs of a monthly mortgage, taxes, insurance, and in some cases, community dues. Watch this eHow video for more details.
