Home Selling Tips

How Much Equity Will You Build With Home Improvement Projects

November 28, 2011

Is that next home remodel worth it?

Home improvement projects are booming, expected to cross $110 billion in total volume this quarter. Unlike in recent years, however, the projects aren’t helping to create much new home equity.

According to Remodeling Magazine’s Cost vs Value Report 2011-2012, for each home improvement dollar spent in 2012, homeowners can expect to recoup just 58 cents in home equity. 

This figure is down sharply from 2005, when the cost-to-value ratio was 87 percent. 

Today’s San Marcos homeowners get a much smaller payoff on their home improvement projects. If you’re planning to remodel/update in preparation for sale, therefore, consider the following projects, each of which carries a high cost-to-value ratio.

From Remodeling Magazine’s “Mid-Range Project” list :

  • Steel Entry Door Replacement : Cost, $1,238; Recoup, 73.0%
  • Attic Bedroom : Cost, $50,184; Recoup, 72.5%
  • Minor Kitchen Remodel : Cost, $19,588; Recoup, 72.1%
  • Garage Door Replacement : Cost, $1,512; Recoup, 71.9%
  • Wood Deck Addition : Cost, $10,350; Recoup 70.1%

By contrast, other projects carry a low cost-to-value ratio, and should only be undertaken if the project’s utility exceeds its cost. These projects don’t do much to raise a home’s resale value.

  • Home Office Remodel : Cost, $27,963; Recoup, 42.9%
  • Sunroom Addition : Cost, $34,133; Recoup, 45.9%
  • Backup Power Generator : Cost, $14,760; Recoup, 47.5%
  • Bathroom Addition : Cost, $140,096512; Recoup, 51.0%
  • Fiberglass Entry Door Replacement : Cost, $3,536; Recoup 56.3%

In the “Upscale Projects” category, projects including the replacement of doors, siding and windows occupy the list’s first 6 slots in terms of cost-to-value. 

If you’re planning a home improvement project over the next few months, the timing is right — both contractor costs and material costs are low nationwide, and improving a home can extend its useful life.

See the complete Cost vs Value report online.

: Around The Home, Home Selling Tips
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5 key home upgrades for aging in place

November 9, 2011

By Paul Bianchina
Inman News

It’s something we’d all just as soon avoid, but there’s no getting around it: We’re all getting older. And that’s something worth keeping in mind as you plan and remodel your home. The concept of “aging in place” — making changes to your home to make it more comfortable and more adapted to your needs as you age — is one that’s been gaining a lot of popularity, especially in these tough economic times.

There are a number of things you can do, large and small, that will help make your home work for you instead of against you as you age. And many manufacturers are taking note of this trend as well, offering a wide range of innovative and attractive products so your home can also remain every bit as stylish as you’d like.

Doors
Doors can be one of the biggest obstacles to easy movement in the home. Consider opening up smaller doorways to create 34-inch or 36-inch doorways wherever possible. Another alternative is to use a pair of 18-inch or even 24-inch pocket doors to make a nice wide opening that’s also very attractive.

To make doors easier to open, replace doorknobs with levers. Replace exterior steps with simple ramps, or combination step/ramps. With more extensive remodeling projects, also consider making hallways wider — ideally 48 inches.

Toilets
Many companies are now offering “comfort-height” toilets, which are about 2 inches taller than standard toilets. These are easier to get on and off of, especially for people with sore backs or weaker legs. Wherever possible, plan on more free space in front of and to the sides of the toilet to allow for easier movement, especially for a walker or wheelchair.

Grab bars
Grab bars are a very useful addition in the bathroom: in the tub, shower and around the toilet. For safety and security, they need to be properly anchored to solid wood, so if you’re remodeling your bathroom, be sure to install some blocking in the walls; it’s a simple and inexpensive thing to do, even if you’re not planning on installing grab bars right away.

Don’t like the institutional look of chrome grab bars? A growing number of companies are offering them in colors, ranging from bright white to shiny black and everything in between, in both acrylics and powder-coated metal. There are also some sleek new styles available.

Tubs and showers
There are some simple things you can do to make using your tub or shower easier to use. In addition to grab bars, a seat can be a real plus. These can be portable, or one of the fold-up versions that are attached to the wall. There are many different styles available, in everything from plastic to very stylish teak.

Lever-handle controls are easier to grip and turn than ones with smooth knobs. That applies to the sinks as well as shower and tub controls. Think about where you’ll be standing — or sitting — in the tub or shower, and place the controls at a convenient location. Make sure that you install anti-scald valves, and install hand-held spray heads. Also, install a shelf at a convenient location for soap and shampoo, to prevent dangerous reaching or stooping over.

Barrier-free shower stalls are well worth considering if you’re redoing your bathroom. One company I spoke with at the recent Pacific Coast Builders Show was demonstrating a very innovative, dam-free shower pan that’s installed on the floor, then sealed in place with a membrane. The entire bathroom floor and pan are then tiled over, creating a seamless, barrier-free installation that’s sleek, attractive and anything but institutional. You can check them out at www.designwithoutbarriers.com.

Another innovative idea comes from the folks at Kohler, with their new Elevance bathtub. This truly unique tub has a vertically sliding wall in front. The wall drops down to create a chair-height seat for easy access into the tub. Sit down, swing your legs in, then raise the wall — it takes only 5 pounds of force to lift. Fill the tub, and the special double seals snap into place to seal the wall against leakage. When you’re done enjoying your bath, drain the water, then lower the wall for easy access to get out. You can see it here and also get a link to a video of it in action.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Oceanside Real Estate, San Diego Real Estate

Pending Home Sales Index Slips For 4th Straight Month

October 28, 2011

Pending Home SalesNationwide, fewer homes are going under contract to sell.

According to the National Association of REALTORS®, the Pending Home Sales Index fell 5 percent last month. September marks the fourth consecutive month in which the index has dropped. 

The Pending Home Sales Index is a monthly index which measures the number of homes under contract to sell, but not yet closed. As such, it’s among the few “forward-looking” housing indicators; a data set meant to predict future home sales. 

80% of homes under contract close within 2 months so, if the September Pending Home Sales Index is to be believed, we should expect home sales to decline through October and November. 

And that’s before we account for cancelled contracts.

Also from the National Association of REALTORS®, we learn that 18 percent of homes under contract failed to close in September. This is double the failure rate from September 2010 and it, too, should drag Existing Home Sales volume lower this fall.

On a seasonally-adjusted, regional basis, the Pending Home Sales Index fell everywhere. 

  • Northeast Region: -4.7% from August
  • Midwest Region : -6.2% from August
  • South Region : -5.5% from August
  • West Region : -2.1% from August

For home buyers and sellers, though, regional data remains too broad to be useful. Housing markets are local, meaning that each block on each street on each city has its own distinct economy. When 9 states are grouped into a single “region”, it’s neither helpful nor relevant to people making buy/sell decisions.

That said, the Pending Home Sales Index remains important because it’s about housing, and housing is a keystone of the U.S. economic recovery.

The market looks ideal for buyers. Home prices are rising, but slowly; and mortgage rates remain near rock-bottom levels. Home affordability is high and should remain that way for the next few weeks.

If you’re shopping for a home, it’s an excellent time to go under contract.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Housing Analysis, Oceanside Real Estate, Real Estate News, San Diego Real Estate
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Fannie Mae releases August consumer indicators

September 22, 2011

Nearly 80 percent of Americans (78 percent) say the economy is on the wrong track and 27 percent believe home prices will go down over the next year, according to findings from Fannie Mae’s August National Housing Survey.  Additionally, 22 percent of Americans polled expect their financial situation to worsen over the next year – the highest levels of pessimism for both indicators since August 2010.

For the third consecutive month, Americans reported they expect home prices to decline over the next year. On average, Americans expect home prices to decline by 0.5 percent, compared with an expected decline of 0.3 percent in July.
While 69 percent of respondents say it is a good time to buy a home, only 9 percent of those polled say it is a good time to sell one’s home.

The number of Americans who expect their personal financial situation to worsen over the next year increased for the fourth month in a row, rising to 22 percent in August compared with 20 percent in July.

Article and information provided by C.A.R.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Oceanside Real Estate, Real Estate News, San Diego Real Estate
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Getting a fair appraisal in a tough market

September 21, 2011

Since the real estate market took a downturn, some people have complained they couldn’t buy, sell, or refinance a home because an appraiser used bank-owned (REO) or short-sold homes as comparables in the valuation process, which dragged down the value of their home.  While using foreclosure homes and short sale homes can lower the value of a home, some homeowners are upset that their county assessor will not use these properties as comps for their property taxes.

Making sense of the story:

In California,  some assessors will consider distressed sales when looking at comps, but it varies widely by county, neighborhood, and house.  In general, assessors will always look at non-distressed sales first and if there are enough, disregard foreclosure homes and short sale homes.  However, if there are not enough standard sales, or the home is in an area dominated by distressed sales, the assessor likely will take these properties into account.

Under Proposition 13, property is assessed upon a change in ownership at its fair market value.  That is usually the same as the sale price.  However, with distressed property, the sale price may not equal fair market value.

Between changes of ownership, assessors can raise values only by an inflation rate, not to exceed 2 percent per year, plus the value of major improvements or additions.

Under Proposition 8, owners who think the market value of their property has fallen below its assessed value can ask for a temporary reduction to the fair market value.

Homeowners who think their homes are worth less than the assessed value can usually ask their assessor for an informal review.  If they are still not satisfied, they can file a formal appeal with their county’s assessment appeals board by Sept. 15 or Nov. 30, depending on the county.

Article and information provided by C.A.R.

: Carlsbad Real Estate, Home Selling Tips, Oceanside Real Estate, Property Tax, Real Estate News, San Diego Real Estate, Short Sale
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4 Don’ts When Selling a San Diego Home

September 20, 2011

By Melissa Dittmann Tracey, REALTOR Magazine

1. Don’t slack off on home maintenance. Houses in need of TLC often attract investors or property flippers, which are known for submitting low-ball offers. To attract offers and the highest bids, sellers should attend to any upkeep and maintenance issues before putting the house for sale.

2. Make sure the home isn’t being overshadowed outside. Nothing kills curb appeal more than a home you’re selling that you can’t even see. Be sure to trim trees or bushes to ensure they aren’t blocking any windows or the exterior of the home.

3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.

4. Don’t keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That’s why O’Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.

: Carlsbad Real Estate, Home Selling Tips, Real Estate News, San Diego Real Estate
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California expands ‘Hardest Hit’ eligibility for distressed homeowners

August 23, 2011

California has expanded the pool of borrowers who could qualify for three programs aimed at helping families at risk of losing their homes, by making those who tapped their home equity or who took out loans after Jan. 1, 2009, eligible for assistance.

The California Housing Finance Agency (CalHFA) is administering nearly $2 billion in federal “Hardest Hit” funds, a $4.1 billion program targeted at states with high foreclosure rates or unemployment.

CalHFA is using the Hardest Hit fund to provide four “Keep Your Home California” programs. More than 2,000 homeowners are in the process of receiving help since the programs launched in February, CalHFA said in announcing expanded eligibility requirements for three of those programs.

With the U.S. Treasury signing off on the changes, CalHFA said eligibility requirements are being expanded for:

• The Unemployment Mortgage Assistance Program (UMA), which provides a mortgage payment subsidy of up to $3,000 a month for six months for unemployed homeowners in imminent danger of foreclosure. • The Mortgage Reinstatement Assistance Program (MRAP), which provides up to $15,000 per household for homeowners who have fallen behind on their mortgage payments due to a temporary change in household circumstance. • The Transition Assistance Program, which provides relocation assistance in conjunction with a short sale or deed-in-lieu of foreclosure.

Borrowers who took out loans after Jan. 1, 2009, or who tapped into their home’s equity by refinancing or opening a home equity line of credit, were previously excluded from those programs.

Homeowners who were previously disqualified for one of these reasons are being contacted and offered an opportunity to reapply, CalHFA said. They are also being invited to contact the Keep Your Home California call center at (888) 954-5337.

A fourth “Keep Your Home California” initiative, the Principal Reduction Program (PRP), provides funding to reduce outstanding principal balances for qualifying borrowers with negative equity, often in conjunction with a loan modification.

To qualify for any of the four programs, borrowers must own and occupy the home as their primary residence, meet income limits, and face a documented financial hardship.

Loan servicers participating in all four programs are GMAC, Guild Mortgage, CalHFA and California Department of Veterans Affairs. Other servicers, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo are participating in some, but not all of the programs.

By Inman News

: Home Selling Tips, Loan Modification, Short Sale
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Freddie Mac: ‘Double Dip’ in Housing Is Unlikely

August 17, 2011

Freddie Mac continues to sound optimism about the housing market for the second half of 2011. In its latest economic and housing market outlook report, Freddie Mac says that the housing market is unlikely to experience a “double dip” and home sales are projected to reach above last year’s pace by 3 percent to 5 percent. Source: “Freddie Mac Says Housing Sector Unlikely to See Double Dip,” HousingWire (July 18, 2011) and “July 2011 U.S. Economic and Housing Market Outlook,” Freddie Mac (July 18, 2011)

Despite an unemployment rate that sits at 9.2 percent, Freddie Mac says the gloomy job picture reflects a temporary “soft patch” in the economy and “does not foreshadow an inflection point in gross domestic product growth.”

Freddie Mac forecasts that the housing market “will likely follow the performance of the overall economy for the remainder of 2011.”

Rental housing will likely see the largest growth. Freddie Mac’s first-quarter apartment property price index rose 15.2 percent compared to last year.

While home buyer affordability is at record levels and mortgage rates are at historical lows, households are still putting off major purchases like buying a home, according to the report.

“Following June’s labor market report, households are naturally concerned about their financial futures, which is being reflected in the housing market,” says Frank Nothaft, Freddie Mac’s chief economist. “Yet, the single-family market will likely improve over the balance of 2011, in keeping with positive GDP forecasts for the United States. Home sales are expected to be up over 2010′s pace, perhaps by 3 to 5 percent. And after clear weakness in national price metrics through the first quarter, there are glimmers the second quarter will likely show gradual improvement over time.”

: Home Buying Tips, Home Selling Tips, Real Estate News, San Diego Real Estate
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Are You Eligible For Principal Reduction

August 10, 2011

The Keep Your Home California program is a federally funded principal reduction program designed to help low and moderate income California homeowners struggling to pay their mortgages. California has recently received nearly $2 billion in federal funding and is working with housing counselors, servicers and housing advocates to provide assistance that will help prevent avoidable foreclosures and keep Californians in their homes.

The Keep Your Home California program is designed to help California homeowners who are facing foreclosure to retain their homes if they have suffered a financial hardship. In order to apply, your financial situation must meet these requirements.

•Are You Low or Moderate Income? Check this Income Table and match the county you live in with your household income. Your gross family income should be less than or equal to the amount shown.

•Have You Suffered a Financial Hardship? To be eligible, you must be experiencing a financial hardship that puts you at risk of default due to changes in household circumstance such as a death in the family, illness, disability, unemployment or loss of income.

Click here to determine if your property and mortgage meet the basic eligibility guidelines for the Keep Your Home California program.

If you do not meet the eligibility guidelines for the Keep Your Home California program, then a short sale of your home may be the best alternative. Contact Us today to see if a short sale is right for you.

: Home Selling Tips, Loan Modification, Real Estate News, Short Sale

Chase Short Sale- Have You Received This Letter

August 2, 2011

The Chase Short Sale Outreach Program. Is this real or is this a hoax? The answer is, it’s the real deal! If you were one of the lucky San Diego short sale home sellers who have received this letter then you may as well of hit the lottery. We’re not talking millions of dollars here. You can receive up to $30,ooo though which is nothing to sneeze at. In this economy, I’m sure we can all use an extra 30K right!

According to an asset manager I spoke with while working on one of these Outreach Program sales, the Chase Short Sale Outreach Program is basically a lottery that Chase Bank’s defaulting assets get put into to try to incentivize  the home owners to opt for a short sale vs foreclosure. I have heard that the thinking behind this is that by offering a home seller an incentive, they will be more likely to keep the home is a good condition to sell, thus netting the bank a higher sales price and less of a loss to the bank. I don’t know how much of this is true but I do know that Chase is serious about this program and they want these homes off their “books”.

There has also been speculation that these homes that have been put in to the Chase Bank Outreach Program were part of portfolios acquired  from other banks that Chase bank bought out in recent years. This same asset manager at Chase Bank I was working with said this was false information. He basically said there is no rhyme or reason to who get the letters and sellers cannot request to be put into this Chase short sale incentive program.

I have now completed a few short sales through the Chase Bank Outreach Program and I have to say, these are the best short sales I have ever worked on. My last Chase Bank Outreach Program sales was just 88 days from list date to close of escrow date. Not even 3 months from start to finish on a short sale! Did the sellers get the 20K promised to them by Chase Bank you ask? Every last penny! 

If you have received one of these Chase letters do not throw it away. This is your golden ticket! Give me a call today at 760-470-2752 to short sale your San Diego home and in as little as 3 months you can be up to $30,000 richer!

: Carlsbad Real Estate, Home Selling Tips, Real Estate News, San Diego Real Estate, Short Sale
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