Saturday, January 21, 2012

9 remodeling tips to make your home feel bigger

You don't have to be underwater on your mortgage to feel trapped in your home.

Now may be a less than ideal time to put a house on the market or to take on big debt -- icing your plans to trade up or build an addition anytime soon. But that doesn't mean you're stuck living in an uncomfortable home.

For a few hundred to a few thousand dollars, you can make your place "live" bigger without actually making it bigger, says architect Sarah Susanka, a small-space specialist and author of "Not So Big Remodeling."
Call it thinking inside the box; here are nine creative solutions for cramped homes.
1. Multitask the dining room ...
Cost: $500 to $2,000
If you have an eat-in kitchen, your dining room is probably used for special occasions only.
"Why have a prime spot sit vacant except for two or three holidays a year?" says Susanka.

Housing: The one bailout America could really use

Use it every day as an office or homework room without giving up dinner-party capabilities. Install doors ($300 to $500 each, with labor); add shelves or a cabinet for supplies; and invest in fitted pads to protect the tabletop.
For more flexibility, try a table like homedecorator.com's $629 Mission Table Cabinet, a sideboard that -- amazingly -- telescopes into a full-size dining table.
2. ... and the guest room
Cost: $100 to $3,000
Stop dedicating a whole room to infrequent out-of-town visitors.
With a decent air mattress, futon, or pull-out couch, you can lose the spare bed and use the room for day-to-day needs. (If you go with an air mattress, make sure to choose one with a built-in reversible motor to simplify the inflating and deflating.)
Add furniture, and what was only a guest room can double as a media or game room or home office.
3. Add a powder room
Cost: $3,000 to $6,000
Adding a first-floor powder room is simple if you have an unfinished basement or crawlspace for running the new pipes. Look for an existing room -- a coat closet, say -- and you won't have to build walls.
To save more, forgo the tile. The minimum space required by code is typically 2½ by 4½ feet, but you can often get an exemption to go even smaller.
4. Build a home office closet
Cost: $100 to $3,000
If your family is already bursting the seams of your abode, a home office might seem out of the question. But every household needs at least a small desk for paying bills and to anchor a wireless Internet system -- and you can often fit it all in a closet or armoire.
At its simplest, all you need are five or six deep, sturdy shelves made from wood or a composite product, which can total less than $40 at a home center. In a closet, set the lowest shelf at 30 inches high so you can wheel up a chair.
5. Bring the laundry upstairs
Cost: $5,000 to $7,000
Hiking up and down the stairs with laundry is enough to make anyone wish she could trade up. Instead, just move the machines.
Today's full-size high-efficiency washers and dryers are all designed to stack. You can steal the space -- a little more than four square feet -- from a closet, hallway, or nook.
You'll need to run new pipes and wiring, so being near an existing bathroom helps keep costs down, says Raleigh, N.C., architect Tina Govan. Make sure to include a drain pan to collect overflows or spills.
6. Open the floor plan
Cost: $2,000 to $4,000
A choppy layout of undersize rooms can make any house feel claustrophobic.
"People like the look of older homes, but not the way they function," says Seattle architect Thomas Lawrence.
To open your floor plan without major expense, remove doors from rooms that don't need them. Interior walls can come out for $2,000 to $4,000, unless they support the building or contain pipes -- in which case a window or pass-through may be a more feasible solution.
7. Use built-ins to replace a closet
Cost: $4,500 to $6,000
If you choose to eliminate a closet to expand or enhance your living space, create some built-ins to get back the lost storage. A run of four- to 10-inch-deep shelving along a wall has almost no effect on the size of a room, says Corvalis, Ore., architect Lori Stephens.
And it can handle many times the capacity of a closet. You might spend $4,000 removing the closet and another $2,000 on new built-in cabinetry, or just $500 if you use assemble-it-yourself home-center cabinetry, such as the Billy collection from Ikea.
8. Build a bump-out
Cost: $6,000 to $12,000
Another trick to expand a home without a full-blown addition is called a bump-out. You hang extra space off the side of the house, sort of like an oversize bay window.
Structurally, it can't extend more than about three feet from the existing exterior wall, but it can run nearly the whole length of the building -- enough space to add an eating area to your kitchen or a closet to your master bedroom suite.
Because there's no foundation work, a bump-out costs about $150 a square foot -- or just $100 if you can tuck it under an existing roof overhang.
9. Finish non-living spaces
Cost: $15,000 to $30,000

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Converting a full-height basement or garage into living space gets you an addition at half price. You'll need a floor, ceiling, walls and more, but no structural work, no foundation, and no roof, so it'll cost $50 to $100 a square foot -- vs. about $200 for a true addition.
Attics are fair game, too, but more complicated because you may need to add a stairway and probably extend the plumbing, heating, and cooling systems a flight up. Doing all that brings the cost to around $150 a square foot.  To top of page

 


Friday, January 20, 2012

Home Sales Continue to Improve


Home sales ended a difficult year on a high note, resulting in a gain in full-year sales volume.
The National Association of Realtors reported that the annual sales pace in December reached 4.6 million homes, up 5% from November's pace and 3.6% from a year ago.

It was the third straight month of improvement in the pace of sales. The fourth-quarter sales volume lifted full-year sales to 4.26 million homes, up 1.7% from 2010 levels.
"The pattern of home sales in recent months demonstrates a market in recovery," said Lawrence Yun, the group's chief economist. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."
Home prices, however, remained depressed, largely because distressed sales continue to make up a significant part of the market.
The median price was $164,500 in December, down 2.5% from a year ago. For the full year, the median price of $166,100 was off 3.9% from 2010 levels.
Realtors said foreclosed homes sold for an average discount of 22% below market value in December, compared to a 20% discount a year ago. Meanwhile, short sales, which are homes sold for less than the amount owed on a mortgage, sold for a 13% discount, compared to a 16% discount in December 2010.
Foreclosures made up 21% of all sales, while short sales were 12%. Both figures were comparable to 2010.

Homebuyers find a windfall of falling prices

Homebuyers find a windfall of falling prices: The recession took a whack at housing prices, making it great market for homebuyers today.

Thursday, January 19, 2012

Foreclosure nightmares

Foreclosure nightmares: With more than 200,000 households receiving foreclosure notices each month, there are bound to be a few mistakes. But for some unlucky homeowners, these blunders carry some serious consequences.

O.J. Simpson faces foreclosure on Florida home

O.J. Simpson faces foreclosure on Florida home: As if being in prison wasn't bad enough. O.J. Simpson's life has taken another sour turn: He's now facing foreclosure on his Kendall, Fla. home.

New home construction gathers momentum

New home construction gathers momentum: New home construction slowed slightly in December after a strong November showing, but was still much more active than a year earlier.

Mortgage refinancers rush to avoid fee increase

Mortgage refinancers rush to avoid fee increase: Borrowers are crowding mortgage offices to refinance before higher fees go into effect.

Snag lower rates with serial refinancing?

Snag lower rates with serial refinancing?: Serial refinancing is usually a bad idea, but there are exceptions that make it a smart move.

Wednesday, January 18, 2012

Best Type of Property for 1st Time Real Estate Investors?

by Fortune Builders:

What is the best time of property for those new to real estate investing to start with?
You have just finished your real estate investing education program and you are full of inspiration and passion to get out there and make money. So what type of property or deal should you take on first?
Perhaps we should start with some of the things you may want to avoid on your first deal while you get your feet wet and get a better feel for the business.
You may want to avoid:
  • Major rehabs
  • Homes with structural issues
  • Complex commercial property deals
  • Taking on a lot of debt which requires large monthly payments
The best place to start real estate investing really depends a lot on your experience with real estate, your resources and which types of properties you are most familiar with.
Don’t Own a Home Yet?
Owning a home isn’t a requirement to start real estate investing but going through the process yourself can teach you volumes about the business. A great way to get started is by buying a multifamily property like a duplex which can give you your own piece of the American Dream which is paid for by the tenant or tenants in the other units. This may not snag you thousands tomorrow but the hundreds or thousands you save on your monthly housing payment can be used to fuel your real estate investing while your property builds equity which you can cash in on to buy your real dream home later.
Low on Cash & Credit?
If you don’t have much cash to invest, your credit isn’t great, your tolerance for risk is low and you need to make money fast then assigning or flipping contracts may be the best move. This means no need to borrow money or be a master of marketing yet. Simply find great real estate investing deals and pass them off or partner with other investors who have the experience and resources for a quick payday.
Properties & Real Estate Investing Strategies You are Familiar with
May be it is purchasing a vacation home in your favorite holiday spot which you can use and rent out for a profit, investing in student housing where your kids go to college, the strip mall your office is located in, the house down the street you know you can get for half of what it is worth and that you know you can resell easily.

Foreclosure free ride: 3 years, no payments



Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.
Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.
Nationwide, the average time it takes to process a foreclosure -- from the first missed payment to the final foreclosure auction -- has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics.
It takes much longer than that in Florida, where the process averages 1,027 days, nearly 3 years. In D.C., foreclosure averages 1,053 days and delinquent borrowers in New York often stay in their homes for an average of 906 days.
And while some borrowers are looking for ways to make good with lenders and get their homes back, many aren't paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years, according to LPS.
Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
"In my experience, they never say, 'I'm not delinquent' or 'I want to pay my bill but I'm confused over who to send it to,' or 'Oh my God, you mean I didn't pay my mortgage?' They're not in technical default. They're in default because they're not paying," he said.

Millions eligible for foreclosure review

Ironically enough, the banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. During the "robo-signing" scandal in 2010, it was revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.
A Staten Island, N.Y. man who owed $300,000 on his mortgage and hadn't made a payment in two years, said his attorney used the robo-signing issue to fight his foreclosure.
In his case, the lender's paperwork included many different papers signed by the same employee. The problem was that the signatures didn't match. The judge dismissed the lender's case against the borrower, although it can be re-filed.
"It looks like I'll be in my home for some time to come," said the homeowner, who asked to remain anonymous. He said he is currently not making any payments on his home.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession, said attorney Robert Brown. Since mortgages are often transferred electronically, the official paperwork often gets misplaced.

10 cheap foreclosed homes for sale by Uncle Sam

"My lawyer asked my bank to produce an affidavit that entitled them to foreclose," said a client of Brown's, who lives in Harlem and also asked to remain anonymous. "They couldn't do it."
The case was dismissed, without prejudice, though the lender can try again -- if it finds the paperwork.
In some of the more extreme cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
The ensuing delays are further harming the housing market. People who stay in homes undergoing foreclosure for years often don't maintain the properties, causing blight and lowering property values in the surrounding neighborhoods, said Dunn.

Home prices: Your local forecast

Then there are the court costs that lenders bear, which will eventually be borne by home buyers as lenders increase their borrowing fees to cover the increased risk, Dunn said.
David Berenbaum of the National Community Reinvestment Coalition (NCRC), a community activism group, disputes the contention that owners are gaming the system for free rent and hurting the housing market.
"Most people do everything in their power to maintain these homes," he said. "They take in relatives, get second jobs and even rent out rooms."
What really needs to be done, he said, is for lenders to work harder to find solutions that allow delinquent borrowers who can afford to make reasonable mortgage payments to keep their homes. To top of page

Tuesday, January 17, 2012

‘That’s what title insurance is for’


Owen Girard, senior vice president and claims center manager from Fidelity National Title Group (a unit of Fidelity National Financial Inc.), declined to comment on the Baxters’ case, citing company policy.
Girard also declined to comment generally on Fidelity’s policies and guidelines for handling any such claim in which a defect in title is discovered.
So what’s a homeowner to do when, like the Baxters, they find themselves truly stuck in a home that’s unsellable due to legal reasons?
For his part, a frustrated Baxter has taken his case to a lawyer.
Attorney Robert Garibaldi, who is now representing Baxter, says he’s “cautiously optimistic we’re going to get it resolved for him.”
“It’s in both parties’ interests to resolve this situation,” adds Garibaldi.
Asked how several surveys could have missed the encroachment issue and had property lines incorrectly drawn, Garibaldi said it appears that there were several liens “that were recorded improperly.”
“It happens in places where there’s a lot of vacant land and not enough sales to establish clear property lines.” Still, “this should have been picked up,” Garibaldi says. “That’s what title insurance is for.”
He added: “Typically, title companies do a lot of due diligence. They’re pretty careful on doing research and having title abstractors review things.”

‘I want to be compensated’

Asked how he’d like the situation to be resolved, Baxter ticks off a host of things.
He’d like Commonwealth/Fidelity to reimburse him for his legal costs, as well as the expenses he’s incurred trying to fix the encroachment problem. Baxter recently bought a municipal lien on an empty lot to the right of his neighbor in the hopes of acquiring that lot and doing a minor sub-division to resolve the encroachment issue. That has meant more surveys, title work and other acquisition costs.
Baxter also wants to be compensated “for all the aggravation I went through over the years.” And finally, Baxter says he’d like to be compensated “if there is any difference in the price when I sell my home in the future from what it sold for in 2010.”
“Contracts were signed but the sales fell through because of the encroachment,” he notes.
In the meantime, Baxter vows to continue to demand action from Commonwealth/Fidelity National Title, and to insist that the company honor its commitment to him or anyone else who might have purchased title insurance and later found a defect in their title.
“This has baffled my mind,” Baxter says, “on how they think they can get away with this.”
Want to sell your home this winter? Turn up the heat, grab a snow shovel and get to work.
Given the cold, dark and unpredictable weather, selling a home in winter requires more toil -- from shoveling to holiday decorating -- than it takes to sell in summer.
While the number of homebuyers drops in winter, those left hunting are generally a more serious group ready to make a deal now, brokers say. Meanwhile, competition drops as other sellers decide to pull their homes off the market and wait for spring.
"It is a myth that homes don't sell in the winter," says Leslie Mann, an agent with Hallmark Sotheby's International Realty in Hopkinton, Mass. "We have been really busy."
If you are ready to throw some winter open houses, here are a few tips to help home sellers enchant potential homebuyers in winter.
Crank up the heat: Cold houses don't sell. If potential buyers shiver at your open house, they aren't likely to stick around, let alone make an offer. This isn't the time to save on the heating bill. Keep the thermometer at least at a steady 70 degrees. A cold house sends the wrong message. "It doesn't need to be hot; it needs to be not cold," says Ronald Phipps, immediate past president of the National Association of Realtors and principal broker with Phipps Realty in Warwick, R.I.
Get shoveling: Don't let a little snow come between you and the next owner of your house. Get shoveling, and make sure the walkway is clear. If someone has to slip and slide their way into your house, you'll lose the battle before they cross the front door.
Moreover, if you want buyers to attend your open house, make sure they have a place to park. This task can be challenging as snowbanks and drifts accumulate. Don't clear just the driveway -- shovel out some spaces on the street as well, says Rona Fischman, principal broker of 4 Buyers Real Estate in Cambridge, Mass. While you are at it, make sure you don't wind up with big piles of dirty snow near the front door. "If they are concerned about breaking a leg, then they are not paying attention to your house in a good way," she says.
Build a snowman: Nothing says "welcome to your new house" than a Frosty in the front yard ready to greet potential buyers, Fischman says. And why not get creative here? You could dress him up in a Century 21 T-shirt -- or whatever your agency of choice is -- or even put the for-sale sign in his hands, she says.
Decorate, but don't go overboard: Some Realtors suggest stripping a house of all holiday decorations to avoid turning off potential buyers. But that sends the wrong message. After all, buyers are trying to get a feel for whether your house could become their next home. If your house is cold, empty and sterile, that sends the wrong message, Fischman says.
But be careful here. This is not the time to go nuts with plastic lawn ornaments. It might be the season to stow Santa and his reindeer out of sight in your cellar, Mann says. She recalls taking a potential buyer to see a house where the owners had gone over-the-top with Christmas kitsch. "The buyer said, 'I didn't know the Griswolds lived here.' It did not help them at all."
Better to focus on some lighter, classier touches, such as wrapping a garland around the banister on the stairs or putting up a wreath. "It really makes the entryway pop," Mann says.
Become a weather freak, and stay flexible: One thing you can't control during the winter is the weather. It's time to start tuning into The Weather Channel, at least while you're trying to sell your house. When planning an open house, it's better to be prepared for weather changes. If a big storm is headed your way, maybe it's a good idea to reschedule for a new day or push a morning open house into the afternoon, Mann advises. Even if you can lure a few buyers out in the storm, a dark and dreary day is probably not the best backdrop for showing off your house. "You have to have some level of flexibility when selling in the winter," she says.

Majority are in favor of the mortgage interest deduction

For instance, 73 percent are against “eliminating the home mortgage interest deduction that homeowners can take on their tax returns.” (The poll’s margin of error is +/-2.5 percent.)
In other words, a quarter of voters are open to the idea of eliminating the mortgage tax deduction. Not just changing the deduction or lowering it, but getting rid of it entirely.
This is not just an idle idea. For instance, Kansas Governor Sam Brownback has just proposed a budget plan that would end the mortgage deduction at the state level. It will be interesting to see what Kansas lawmakers and voters think of the Republican governor’s proposal.
The NAHB poll also reveals:
  • 54 percent are against “limiting the mortgage interest deduction for those earning over $250,000 per year.”
  • 53 percent oppose “scaling back the mortgage interest deduction for homeowners with mortgages of $500,000 or more.”
  • 52 percent are against “eliminating the deduction for interest paid for a second or vacation home.”
Given the margin of error, the poll shows that roughly half of all voters would consider limiting or ending the mortgage interest deduction for high-income households and putting an end to deductions for loans on second homes and vacation properties.