For the third month in a row, there has been an increase in sales of existing homes (which include single-family, condominium, townhomes and co-ops). For the first time in seven months, the sales activity has outpaced that of a year ago at 5.3% above the 5.09 million level in January of 2010. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” said Lawrence Yun, NAR chief economist. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.” Yun added, “Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes.” Prices, however, were still down with the national median existing-home price for all housing types at $158,800 for January, down 3.7% from the same time last year. NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.” With 3.38 million existing homes available for sale, total housing inventory represents a 7.6-month supply at the current sales pace, down from an 8.2-month supply in December. This is the lowest level since December 2009 when there was a 7.3-month supply. Regionally, existing-home sales in the Northeast fell 4.6% to an annual pace of 830,000 in January from a spike in December and are 1.2% below January 2010. The median price in the Northeast was $236,500, which is 4.0% below a year ago. Source: National Association of REALTORS®
Not every renovation will necessarily add value to your home for potential buyers. They may not like your choices. People also like to make their own renovations over time. There are certainly some which are sought after, but there are definitely some which aren’t, including the following:
Swimming pools. In most instances, it’s unrealistic to think that the addition of a pool will increase your property’s chances of selling.
Over-improving for your neighborhood. If your renovations drive the price of your property well beyond its neighbors, you’re making a mistake. Plus, you may well have increased the maintenance costs and taxes on your property, also unappealing to buyers.
Extensive landscaping. In general, adding a lot of landscaping (without specific purpose) is personal and may not appeal to a buyer. Keeping your yard mowed and picked up and your bushes trimmed is a better choice.
Some High-end upgrades. Thing like imported tiles, fancy bath tubs, built-in Jacuzzis, hand-decorated wallpaper, Persian rugs, expensive light fixtures, etc., may be appealing to you, but they can be very personal choices which buyers would prefer to make themselves.
Wall-to-wall carpeting. Better to clean than replace which again allows for the buyers’ personal choices. Don’t cover wood flooring. It’s better to refinish it than cover it with carpeting.
Invisible improvements. Things like new plumbing and heating systems sound great on paper, but everyone expects there to be heating and plumbing in the house they buy. Make sure it has been serviced recently and is functioning properly. In general, buyers are more impressed by what they see.
A refinished or well-decorated basement. This is the type of improvement which might help clinch a sale to some buyers, but they still might not be ready to pay more for this feature. It’s unlikely that it will pay you back.
Building or upgrading a deck. Be sure that your existing deck is in good repair, but money spent on new or upgraded decks probably won’t make the difference in your selling price.
Patio frills. Water fountains, fish ponds, awnings, gazebos, or a multi-purpose playground are expensive “luxuries” which may or may not impress a buyer and may even help clinch a sale, but they too are not likely to increase the value of a home to the extent of their cost.
The addition or expansion of a garage or carport. Garages are one of those things that, in our part of the country, people want and assume that most properties will have. They might be willing to pay a bit more if the house has one, but, again, not perhaps as much as it cost you to add one.
This article was adapted from an article which appeared on Yahoo! Finance, on Wednesday, February 9, 2011. It was written by Fred Fletcher, a Yahoo! Contributor.
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Despite a frigid and snow‐caked New Hampshire winter, sales in the state increased marginally in the first month of the year over the same period from a year ago, marking the second straight January that has seen a monthly uptick in residential homes sold. According to data released this week by the New Hampshire Association of REALTORS (NHAR), there were 543 homes sold in January 2011, up 2.1 percent over the 532 sold in the first month of 2010. Median price on those homes, meanwhile, dipped by 3.9 percent, from $215,000 in January 2010 to $206,600 in January 2011. “Considering the limitations on the ability for sellers to actually get out and see homes this season, we’re taking any increase in activity as a positive sign,” said NHAR President Tom Riley, a 35‐year veteran of the real estate industry and president of Riley Enterprises in Bedford. “As the economy slowly begins to turn in a positive way, as long as we don’t see dramatic changes in either direction, we feel as though the big picture with regard to the housing market is steadily brightening.” Riley stopped short of making any predictions, pointing out that there is still no clear trend line over the past two years to give a real sense of the market’s future course. Impacted by the home buyer tax credit in 2009 and 2010, the market saw nine consecutive monthly sales increases through the middle of 2010, then five straight months of decreases prior to an uptick in December, and now a January increase. In terms of local markets, seven of the state’s 10 counties saw unit sales increases in January compared to a year ago, including a 67 percent jump in Carroll County, 8.1 percent in Merrimack County and 4.5 percent in Cheshire County. The state’s largest county, Hillsborough, witnessed a 1.3 percent sales increase. Median price, meanwhile, saw increases in four of 10 counties. With inventory still relatively high, interest rates low and prices competitive, Riley said he would not be surprised to see an excellent spring in terms of sales. “There is no crystal ball, but there is no doubt that the climate is ripe for a continued increase in activity,” he said. “Buyers have excellent opportunities right now.” Click here for January 2011 data residentialClick here for January 2011 data condo
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov .
Original source: Realtor.org in REALTORMag, the Business Tool for Real Estate Professionals
By: G. M. Filisko Published: March 30, 2010 You’ve found your dream home. Make sure missteps don’t prevent a successful closing. 1. Be truthful on your mortgage application You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime. 2. Hold off on big purchases Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan. Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing. 3. Keep your job The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before. 4. Meet contingencies If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately. 5. Consider deadlines immovable Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct. More from HouseLogicHow maintenance adds to home valuesReducing closing stressOther web resourcesMore on calculating closing costsMore on the closing process G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. 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.
February and April are traditionally school vacation months and times when many families plan an out-of-town escape. If you are concerned about how your empty house will fare while you’re gone, here are some good ideas to implement. 1. Don’t turn your heat off, as the weather is likely to be at the freezing or lower level while you’re gone. This could cause burst water pipes and flooding inside. But, do lower your thermostats to around 55. This is a safe temperature to keep things from freezing and cut down on fuel costs while you’re gone. 2. Be sure that someone will be taking care of snow removal while you’re gone. Some states even have laws which require residents to clear their own sidewalks and walkways with a specific period of time. This will also make it much easier for you on your return, should there be a storm or two. 3. Either have a friend empty your mail and newspaper boxes, or have both deliveries held while you’re gone. Piling up mail is a dead giveaway to a potential thief who might be canvassing your neighborhood for easy targets. 4. Just to be safe, leave a key with a friend or neighbor and ask them to keep an eye on the house while you’re away. It would be great if they would also go in the house once or twice, to be sure the heat is still on, and nothing else is awry. You can offer to do the same for them sometime. 5. Unplug all the electronics that won’t be in use during your absence. 6. This is also a good time to also lower the temperature on your water heater. 7. It’s not a bad idea to leave a car in the driveway if possible. This is also a perfect time to use timers to turn on indoor and outdoor lights. However, don’t leave an outside light on the whole time you’re gone. Again, that’s like advertising your empty house. 8. While it’s fun to share vacation pictures and events on all the social media options we have, remember, it’s always possible that the information will get into the wrong hands and prompt some unwanted interest in your house. 9. It’s a great idea to place all your valuables in a safe or safe deposit box, if you have one. 10. If your house is on the market, consider asking your REALTOR® to stop by and check in. These simple steps will go a long way to keeping your house safe while you’re gone, and also insure your peace of mind while vacationing. Based on an article written by Kelly O’Ryan, the office manager at Coldwell Banker Lexington, MA, which appeared in RISMEDIA, February 11, 2011.
By: G. M. Filisko Published: February 10, 2010 By doing your homework before you buy, you’ll feel more content about your new home. 1. Decide how much home you can afford Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children. 2. Develop your home wish list Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping. 3. Select where you want to live Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities. 4. Start saving Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies. However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get. Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers. 5. Ask about all the costs before you sign A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard. 6. Get your credit in order A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage. You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt. 7. Get prequalified Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements. If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years. Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate. More from HouseLogicLearn how Fannie Mae and Freddie Mac mortgages can help you save on financingLearn more about the costs of homeownershipOther web resourcesHomebuyer counseling resourcesGet a free credit report from each of the three credit reporting bureaus G.M. Filisko is an attorney and award-winning writer who has thrice survived the homebuying process. 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. Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.
2010 Olympic Gold Medalist and 2009 Overall World Cup Champion freestyle skier Hannah Kearney will be at Mount Sunapee Resort on Saturday, February 12 courtesy of Dartmouth-Hitchcock. Hannah and staff from Dartmouth-Hitchcock will be in the Spruce Lodge lobby from 11:30am until 3:00pm interacting with guests at the resort. Hannah will have her Olympic Gold Medal with her and guests can get autographs and photos with Hannah. She will also be presenting the awards for the Tecnica Cup that will be held at Mount Sunapee on Saturday for Senior, JI and JII alpine racers.
Some Ideas about Changing our Daily Lives
to Help Protect the Environment
Are you and your Valentine on the same page when it comes to the environment? It’s not surprising to learn that many couples have different opinions on “being green.” This is especially true given the number of daily go green messages we all hear about the car we drive, the food we eat, the energy we use, and the weather outside. Disputes and frustrations can arise from differences of opinion on how green to be. So if it is one of your goals to “green your Valentine,” take it slow. Just remember that any type of change is hard for people to accept and darn near impossible for some. Perhaps you can start with some simple things. Keep in mind that, no matter what changes you are implementing, it helps to explain how these efforts will not only benefit the environment, but also your lives, either by saving money or even eliminating real health risks. Below are a few ideas that may help couples to be green together. Recycle: To many, recycling is second nature, but to others it’s a hassle. They may not have grown up recycling so they just don’t do it. The key is to make recycling in your home as convenient as possible. Take responsibility for rinsing the containers or emptying the bins until it becomes a part of the normal routine. Your partner will see that it’s not difficult or too time consuming. Besides, with many towns adopting pay-as-you-throw policies, recycling will clearly save your family money by reducing the trash you throw away. Eat Local: Beware that the subject of food can be a very personal one and possibly one of the most difficult things to change about your loved one. So don’t expect them to become a vegetarian overnight. Try taking in a local farmer’s market (yes, even in the winter!) as a fun event together. This supports your neighboring farmers and reduces energy consumption required by the global transport of goods. Food from your farmer’s market is healthier and fresher because it hasn’t traveled thousands of miles to reach your dinner table. For a list of New Hampshire farmers’ markets visit http://m1e.net/c?82384231-CAspwxJlO7J32%406164077-sBVHwwV/tl3ck Green Clean: Housework can be a sore subject for any couple regardless of how green the products you use. Again, many people have preferences for certain products because that’s what their mom used, end of story. But if your partner is feeling nostalgic, introducing some old school (non-toxic) household cleaners like baking soda, vinegar and lemon juice could be the answer. Don’t forget to explain that many cleaners contain harmful toxins that are not only bad for the environment, but bad for your family to be breathing or touching. Greening your Valentine may take some time. All of us can make changes to our daily lives that would be beneficial to the environment, so don’t place any unfair expectations that your loved one is going to suddenly wake up one morning and decide it’s time to save the planet. But maybe they could start with your Valentines Day gift of organically raised roses, fair trade chocolates and a homemade card from recycled paper – it can’t hurt to suggest, right? # # # The February, 2011, issue of “GREENWorks:Ideas for a Cleaner Environment”Published by the NH Department of Environmental Services,Concord, NH (603) 271-371029 Hazen Drive, Concord, NH 03302.