Post-Tax Credit Buyers May Save Money
Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.

Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.

That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.

Source: Informa Research Services (05/26/2010)

Tips on How to Fix Your House Up to Sell

By Paige Tepping

RISMEDIA, May 27, 2010--With the summer buying and selling season just around the corner, now is the time to think about how you can create a lasting first impression with potential buyers. Here are 8 simple tips that will help your home stand out from the crowd.

Open the drapes and blinds. Sunshine is the world's best decorator and nothing is more depressing than walking into a home where shades, curtains and drapes are closed.

Wash the windows - inside and out. For the same reasons as above, no other small improvement will give you more bang than this.

Clean up the yard. Cut back overgrown shrubs, particularly those that obscure windows or make it difficult to get to the front door. Mow the grass, rake or pick up downed leaves and branches, put away lawn tools, kids' toys and discard or store any outdoor furniture that is rusty or ragged. If season and funds permit, put down some colorful annuals or put a few nicely planted containers on or near the front porch.

Clutter Control. De-cluttering and organizing your home is very important and not just to make the place look neat. A cluttered home looks smaller and less airy. All of the pictures, knick-knacks, even an exquisite art collection are distracting to many buyers.

Clean your kitchen and bathrooms – Be sure to pay attention to the kitchen and bathrooms. The kitchen may be old but it can still sparkle. Clean the stovetop with a good degreaser and all countertops to remove stains and discoloration. Wash the front of all cupboards and appliances and keep the floor swept and scrubbed for as long as the home is on the market. De-clutter here too, especially the refrigerator door. Ditch countertop appliances, canisters, etc and keep cupboard doors and drawers closed if your hand is not actually in them. It is critical that the bathrooms sparkle. Old bathrooms can be charming and a new shower curtain or fresh flowers on the counter may be all you need. Put out your best towels and, if you have young children, enforce the flush rule.

Refinish hardwood floors. These are a major selling point when selling your home and sometimes a home's most compelling feature. Often they don't need complete refinishing, just to be roughed up and polyurethaned to obtain that killer shine.

Paint/Repaint Your Home. If your taste in decorating is a bit strong, it may pay to hire a professional to tone down some of the more dramatic color rooms. Neutral colors are best for marketing your home for sale.

Buy, borrow or rent what you need. If your furniture shows the effect of raising five kids or if pets have ruined the rugs and upholstery, think about storing or getting rid of your existing furniture and finding just enough more attractive stuff to get by. If your nest is empty and the kids' rooms are beaten up, throw out the furniture, give the walls a quick wash coat of paint and put one or two small flea market pieces - a hobby horse, a bean-bag chair, the old bassinette from the attic - in the room to merely suggest its use.

Builder Confidence Hits Highest Level Since 2007
Home builder confidence reached 22 in May, the highest point since August 2007, on the National Association of Home Builders/Wells Fargo Housing Market Index.

This was the second consecutive month confidence was up, gaining 3 percentage points. Scores lower than 50 are still considered pessimistic.

Analysts said they were surprised by the increase because the home buyer tax credits expired at the end of April.

Weiss Research analyst Mike Larson said the tax credit provided some optimism, but the real driver behind the increase is a sense that the market is actually improving. “Even with the credit in the rear-view mirror, real, underlying demand remains for housing," Larson said.

Source: The Wall Street Journal, Shara Tibken (05/17/2010)

Builder Confidence Hits Highest Level Since 2007
Home builder confidence reached 22 in May, the highest point since August 2007, on the National Association of Home Builders/Wells Fargo Housing Market Index.

This was the second consecutive month confidence was up, gaining 3 percentage points. Scores lower than 50 are still considered pessimistic.

Analysts said they were surprised by the increase because the home buyer tax credits expired at the end of April.

Weiss Research analyst Mike Larson said the tax credit provided some optimism, but the real driver behind the increase is a sense that the market is actually improving. “Even with the credit in the rear-view mirror, real, underlying demand remains for housing," Larson said.

Source: The Wall Street Journal, Shara Tibken (05/17/2010)

Anchorage Ranks in Third for Best Midsized U.S. cities for Jobs

May 10th, 2010 cole Posted in anchorage ak community news | No Comments »

Pending Home Sales on an Upswing
Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

Regional Numbers

• The PHSI in the Northeast declined 3.3 percent to 75.1 in March, but remains 27.2 percent higher than March 2009.
• In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago.
• Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009.
• In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Source: NAR

Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete

Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make.

In order to avoid titanic trip ups during such a trying transaction, RealEstate.com suggests buyers get to know the most common home buying blunders.

To know them is to avoid them.

Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search.

Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget.

Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.

Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.

Making an unconditional offer Protect yourself with these contingencies:

• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

Published: April 8, 2010

High property taxes? 4 steps to lowering them

Be sure to learn process, track down paperwork and evidence and follow up

Unemployed? 10 tax tips for a bigger refund Few will use tax refund to indulge: poll Watch out! Avoid these 7 common tax schemes New deductions, credits available for ’09 taxes Avoid these common tax return errors New tax guide  |  Common tax forms Complete coverage: Tax Tactics

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Taxes and your nest egg Lisa Featherngill, a CPA and personal financial specialist, and CNBC's Sharon Epperson, help you make sure your portfolio mix isn't too taxing.

Tax tips to help you ‘Beat the IRS’   Quirky taxes creep into everyday life   Taxing sins across America   Tax everything to fill budget hole?   H&R Block stock tumbling this year

By Candice Choi

updated 3:36 a.m. AKT, Wed., April 7, 2010

 NEW YORK - Home prices are still far below their highs just a few years ago. One bittersweet perk for homeowners is that property taxes should be lower too.

 If your home's value has tumbled, you may be able to slash hundreds of dollars from your tax bill by appealing its assessed value. That's because local governments generally don't reassess homes every year, meaning the values they use to levy property taxes may be outdated.

 Just how much you could save depends on your real estate market. But nationally, home prices are still about 30 percent below their peak.

The appeal process varies depending on your area, but here's a guide on the steps you'll need to take.

Step 1: Track down the paperwork
Property taxes are assessed on a local level. Most homes are only assessed by one jurisdiction, whether it's a town, city or county. But if your home has more than one assessment — for example, if you live in a village within a town — you need to file appeals with both jurisdictions since they operate independently.

You can start by searching for your assessor's Web site, where you'll find the form to file an appeal. It will probably be a page or two, and ask for basic information and your home's parcel or lot number. The latter should be listed on your mortgage or property tax bill, or you might be able to look it up on the assessor's Web site.

Deadlines for appealing an assessment in a particular year are often in the spring, so get moving if you're seriously considering it.

Filing fees vary; it could be free, it may be a flat fee of $15 or so.

Step 2: Understand the process
There are two important technicalities to understand, but they're simple to grasp and shouldn't daunt you.

The first is your home's assessed value. This is the basis for your property tax, and isn't always the same as your home's market value.

Some local governments assess homes at a fraction of their market value. For example, if the assessment rate is 60 percent, the assessed value of a $1 million home would be $600,000.

The appeal form will likely ask for assessed values, so you may have to do a little math once you've collected market values on comparable homes.

Assessment rates can change from year to year too, depending on the area's funding needs.

It's also important to know the date your area's assessments are based on. In New Jersey, for example, homes are assessed by local governments on Oct. 1 of the previous tax year. So if you're requesting a new assessment for 2010, you'd need to research home prices from around Oct. 1, 2009.

If you're having trouble finding either the assessment rate or date, don't be afraid to call your assessor's office and ask.

Step 3: Collect your evidence
The bulk of your work will be collecting the evidence to make your case.

There are several ways you can do this. The first is to go to your assessor's office, which might keep a database of all sales in the area.

You can also search free Web sites such as ColdwellBanker.com, Remax.com, MoveUp.com and Zillow.com. It's best to get actual sale prices, but listed prices should provide a good baseline if there haven't been any recent sales in your area.

Collect data on three to five properties. Make sure they're similar in size and style, and were built around the same time. Point out why the houses are comparable to yours, and note any significant differences that could affect values, such as proximity to a busy street.

New Anti-Lead Rules on Home Renovations
New Environmental Protection Agency (EPA) restrictions on home renovations designed to reduce the amount of lead dust take effect April 22.

The new rule is likely to result in higher costs for consumers because it requires contractors to be lead-safe certified, and not many are. The NAHB estimates that the new rule affects 68 percent of all U.S. homes.

The National Association of Home Builders, and retailers such as Home Depot and Lowe’s, are urging Congress to delay implementation of the new rules because they say the government hasn’t given the industry time to train remodelers in the necessary techniques.

Source: The Wall Street Journal, Stephen Power (03/27/2010)

RISMEDIA, March 23, 2010—Spring is the perfect time for an outdoor wedding; however “peak season” also involves “peak prices” from many venues. One way to keep down costs is to use a location you already have, such as your own backyard.

If you are willing to dive in and get your hands a little dirty with some simple DIY projects, you can get a glamorous, high-style look with minimal effort.

Location
Plan landscaping early enough for perennials and annuals to establish and fill out. Choose plants and flowers according to the season your wedding will take place–spring, summer, fall–for the best presentation on your wedding day. Container gardening is also a great way to add “mobile” landscaping.

Make sure your lawn can stand up to the traffic of wedding guests–proper fertilization, grass height–to make sure your lawn doesn’t turn into a trampled ruin.

If you’re worried about the weather, for about half the price of a rental, purchase a gazebo or build your own pergola for the ceremony.

Décor
A few shabby chic ideas for sprucing up an outdoor wedding without breaking the bank:

-Use watering cans as bouquet holders for your bridal party for a country garden feel.
-Line a round galvanized tub with a plastic trash bag to protect the inside from paint. Use painters tape to design the tub and spray-paint the outside of the tub, and allow to dry. Peel off the painters tape, remove the liner, and fill with beverages and ice. Use the tins as centerpieces, filling some with sand and votives and some with filler flowers such as hydrangeas.
-Take a 24-inch window box and paint it metallic silver. Fill it with an arrangement of pink roses, hydrangea or Gerber daisies.

Favors
Leave your guests with something to remember your special day with personalized wedding favors such as spring planters, which are decorative, symbolic and functional.

Start with a terra cotta planter and select a design for the labels. Once you have your design stenciled on with pencil, paint over and let dry. Select Chalkboard paint which allows you to label pots with the names of your guests and they can double as table cards.

For more information, visit www.Lowes.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.