Real Estate Information Archive

Homeowners can take advantage of energy-efficient mortgages (EEF) to finance improvement projects on their properties. An EEM, or a "green mortgage", is a loan that is meant to help pay for energy-efficient upgrades on a home that a homeowner currently owns or is in the process of purchasing. Costs for the home improvement projects are included in the original mortgage loan so that only one mortgage loan needs to be taken out on the property in question.

Although the maximum debt-to-income ratio for a home owner in regards to a mortgage loan is specified by the FHA, homeowners can bypass these rules if they qualify for energy-efficient mortgages. In this way, they can purchase a home with energy-efficiency improvements with an EEM that is higher in value than the home that they could have purchased via a traditional mortgage loan. Allowing homeowners to bypass debt-to-income ratio rules is justified with the idea that homeowners may pay more upfront, but will save money over time in lower energy costs. The process of qualifying for an EEM involves having an energy audit on a property.

Homeowners can take advantage of three different EEMs:

The Conventional EEM

The majority of homeowners who take out an EEM opt for a conventional EEM. This type of EEM allows the lender of a mortgage loan to add a certain value to the home purchaser's income that is deemed equivalent to the money that will be gained in energy savings through making any energy-efficiency renovations or upgrades.

The Federal Housing Administration EEM

Through a Federal Housing Administration (FHA) EEM, a borrower will acquire mortgage insurance for a home purchase or refinance. The costs of the proposed energy-efficiency improvements are incorporated into a homeowner's mortgage loan through an FHA EEM. However, borrowers must meet certain underwriting conditions to qualify for an FHA EEM. This type of EEM allows a borrower to borrow whichever is less: the complete costs of the proposed improvements, inspections, and report; or the lower amount between the value of the property minus five percent, 115 percent of the area's median price on a single family home, or 150 percent of the conforming loan limit as specified by Freddie Mac.

The Veterans Administration EEM

Veterans may qualify for certain green mortgages through the Veterans' Administration. Such loans typically are no more than between $3,000 and $6,000.

Although market activity in regards to home sales has been notably low in recent months, sales figures showed that pending home sales increase in March. The National Association of Realtors has called attention to the fact that this marks the first time in nine months that home sales have risen. 

The Pending Home Sales Index is a major market indicator that has attested to a recent rise in home sales. This forward-looking index has shown using data from contract signings that home sales have risen 3.4 percent since February. However, the Index still shows less activity in home sales than that which was recorded in March of 2013, when the Pending Home Sales Index reported 105.7 as opposed to the 97.4 figure from this March.

According to Lawrence Yun of the National Association of Realtors, a gain in home sales was highly predictable after the very stagnant home sales market that was seen over the winter. Yun has attributed the auspicious rise in home sales this past March to increased inventory on the market and a nationwide increase in job creation in recent months.

While the Pending Home Sales Index has shown an overall increase, it shows an unequal distribution in increases in home sales in different regions of the country. While the Index increased in the Northeast, a decrease was recorded in the Midwest of the country. Pending home sales showed a rise in both the South and the West, but they are still below the Index value of last year. 

It is estimated that even if pending home sales increase in March, home sales in 2014 are unlikely to reach figures of 2013 due to a slow start early this year. According to estimates, sales on existing homes should come to slightly more than $4.9 million in 2014. This is down from $5.1 million last year. While home sales are expected to drop slightly in 2013, the overall median price on existing homes should increase by around 6 or 7 percent. 

An important indicator in the home sales market, the Pending Home Sales Index records the state of sales that are in process on existing homes. The Index values are determined from data extracted from a large sample of existing-home sales across the country. A pending sale is considered to be a sale for which a contract has been sign but the resulting transaction has not been closed. 

The right color for the interior of your home is whatever color you like; however, if you don't feel confident in your ability to develop a harmonious color scheme, here are some tips to awaken your inner home-interior muse.

There are literally thousands, or perhaps even millions, of shades, hues and other variations of color "spokes" on the color wheel. It can be overwhelming, even intimidating, especially of you are a first-time home interior painter.

One way to simplify the process of choosing a color scheme is via shrewd manipulation of color hues. You might already be aware of the inherent impact colors and their hues have on us humans. They can make us feel happy or sad; manic or docile; annoyed or soothed; excited or laid back, which is why it's crucial to select the proper shade within a color family in order to set whatever mood it is you're going for in each room.

Here are some simple tips to help you achieve your desired mood altering color scheme:

• The amount of intensity a color displays is directly related to the amount of pigment within it
• Bright colors tend to create an energetic, upbeat mood; whereas dim or dull colors have a relaxing, more toned down aura
• Adding white creates a pastel hue or tint, softening the color's intensity
• Adding black creates a deep, dark color hue, commonly referred to as a shade
• Adding grey creates a comforting, neutral tone of a color
• Earth tones (generally brown and green color variations) give off a warm, outdoor vibe
• Dim hues of blue emanate a cool-breeze aura
• Manipulate color intensity through hue, shade, tint or tone
• Visualize each room painted in different colors
• Dark-colored rooms feel cozy, but also small
• Change a color's tone with complimentary colors around it

Existing home sales, or home resales, showed a slight rise in December (2013), which followed a three-month downward spiral. High demand and record low interest rates for mortgage loans combined to breathe life into the tenuous recovery in the real estate market.

According to the National Association of Realtors, or NAR, total sales of previously owned homes last year reached a seven-year high. Sales climbed 1.0 in the aforementioned month, leading to a yearly rate of nearly 5 million units.

There's more good news. Household formation has begun to steadily dig itself out of a multi-decade-long low, brightening the mood and encouraging home builders to take on new projects.

Experts point to the head-to-head battle between escalating prices and relatively weak overall income growth as having the biggest impact on the market, making home buying an unreachable financial goal for a large number of Americans.

Buyers can't buy if sellers aren't selling. It is the lack of properties for sale on the market that's causing prices to rise.

Saving money on home maintenance is not always accomplished through the initial cost of these renovations; it is often realized over a number of years. It's one of the sacrifices or compromises home owners have had to make for decades, like having to decide between aesthetically pleasing items, such as stone or wood, and easily maintained, such as vinyl or other man-made imitation.

Today, however, manufacturers have developed truly amazing products that mimic the real thing to such a degree that one might even say they are better than those created by Mother Nature. Listed below are some of these incredible innovations in new home maintenance:

Fiber-Siding Cement

Shingles and clapboards cut from sheets of flexible cement and stirred together with fibers of wood that will not warp, cup or rot. Its up-front cost, including painting, averages between $13,000 and $18,000, which is approximately 10 percent less than real wood.

Cellular PVC Trim

Manufactured out of the same material typically used in plumbing fixtures, with air thrown into the mix during construction for a wood like density, cellular PVC trim displays the natural look of wood, and can also be formed, cut and installed like its natural cousin. It's designed to last forever, never requiring a coat of paint, and costing about 10 percent less than real wood alternatives like pine.

Quartz Countertops

Cutting-edge pigments and resins are blended with real quartz chips to produce countertops and other stone items that display the variety and veining that's far more realistic than even those considered innovative a couple of years ago. It costs about the same as natural stone, like limestone and marble, and also enjoys several advantages over them. It's resistant to dark liquid stains, etching from orange juice and other similar household acids, and chipping via impact from heavy kitchen items like jars and cookware.

Curb appeal incorporates everything your home displays to the world, including the exterior siding type and color scheme, as well as the driveway, sidewalks and entryways.

Make your home sparkle like dew in the early morning spring sunshine with these simple and affordable projects:

Fencing

A fence does more than just protect you and yours from intruders or your neighbor's dog. It has a tremendous impact on your home's curb appeal. Instead of the replacement or removal of your entire fence, you can add a fresh coat of paint or blast it clean with a pressure washer. These are two simple and quick things that can yield significant results.

Roofs and Gutters

Eye-catching curb appeal is attained through meticulous attention to often overlooked details, such as the state of your home's roof and gutters

Gravity compels water to exploit the path of least resistance. On your home, this is often the imperfections like gaps holes and ever-widening cracks, which can lead it to invade your living space.

Landscaping

Impressive landscaping can be as easy as mowing your lawn on a regular basis, watering it, and keeping it clear of sticks, twigs and other organic material. You can also put an attractive face on your home by pruning your shrubbery, planting flowers and keeping it as clutter-free as possible.

Touch-Ups

Siding and paint will chip, peel and warp via the ravages of time. These can; however, be taken care of affordably and, in most cases, easily, with just a small amount of sandpaper and elbow grease. Afterward, simply apply primer and paint for a brand spanking-new exterior.

The first and last steps in any curb appeal boosting project is to actually go out and examine your home as if you're a potential homebuyer. An honest assessment can not only show you how to get started or how it looks after it's finished, but also clue you into other projects in your future.

Buyers and sellers alike tend to have lots of questions when it comes to real estate market fluctuations. Any real estate market will always have times of high and low activity, and fluctuations are not usually a cause for concern. Here is what buyers and sellers should know about fluctuations in the real estate market so that they can plan their actions accordingly.

Information for Buyers

Buyers should know that a drop in home prices is often due to a healthy leveling of activity. As a result, connecting with a real estate agent is the best way to get an overall picture as to the health of the local market. An agent can compare recently-sold properties to those on the market to help buyers know whether they are getting a good deal.

Real estate agents can be an invaluable source of information when it comes to finding the best deals in a given area. Buyers should become pre-qualified in order to determine how much house they can reasonably afford. After that, speaking with a real estate agent will put them on the right path to finding their dream home.

Information for Sellers

Sellers are often tempted to drop their asking price whenever there are market fluctuations. They should consider a number of things before deciding to do so. One of the biggest things that will determine whether or not a home's price should be dropped is its condition. Home that are in top condition tend to fetch more money no matter what the market is like. Even so, an overpriced home is likely to stay on the market, as buyers these days are very savvy when it comes to knowing when a seller is asking too much.

Homeowners may have to compete with local builders when it comes to selling their home if there is a great deal of construction going on in a given area. This is another reason why it is important to consult with a Realtor® to determine if a home is appropriately priced.

Home prices tend to rise and fall based on the law of supply and demand, and market fluctuations are not cause for alarm. Working with a Realtor® is the best way for buyers and sellers to both come out on the winning end of a deal, regardless of the current market situation.

One thing that is extremely important when buying a home is an inspection. Home inspections help buyers uncover potential problems so they know up front what condition a home is in. Having a formal inspection helps with the negotiation process, as it identifies structural defects that need addressing.

Most buyers are only in a home for around 15 minutes while viewing it. That simply isn't enough time to fully assess the condition of it. In addition, many buyers do not know how to check certain components such as the electrical and HVAC systems. As a result, they are forced to rely on the seller for information that may or may not be accurate.

Housing inspectors typically work from a checklist in order to ensure they don't miss anything. Even so, buyers should know that there is no standard checklist within the industry. As such, they should ask what is included in home inspections to ensure their completeness. Some of the things a home inspection should include are

• Roofs
• Attics
• Heating and cooling systems
• Plumbing
• Electrical
• Floors
• Windows

Buyers should know that nearly every home will have some sort of issue listed in an inspection report. This does not necessarily mean the house is not a good value; instead, they should consider the overall condition and asking price in order to make a determination.

Some people ask friends or relatives to perform a home inspection in an effort to save money; however, this type of inspection may prove unreliable. Instead, individuals should choose an inspector who is licensed by the National Association of Home Inspectors to ensure they are thorough and adhere to a code of ethics.

Sellers could benefit tremendously from having home inspections performed before showing their property. In doing so, they will already know whether there are problems present that need taken care of before listing. They will also appear transparent and trustworthy to potential buyers, which could just make them comfortable enough to make an offer regardless of any problems.

Kitchen remodeling is always high on the list of projects that provide an excellent return on investment. The top kitchen remodel projects will not only make this room look extraordinary, but will increase the functionality of it as well.

A professional-grade range is listed as one of the top features people desire in a kitchen, even among those that do not cook often. The type of range most people prefer is one that contains features such as a griddle or grill space along with double ovens. While people like the functionality of a chef's stove, they also prefer appliances that are eco-friendly. As such, one that contains special features and also uses less energy could score double points.

Certain other appliances also top the list of must-have features for a kitchen remodel. More people than ever are adding convention ovens and wine coolers than ever before. Stainless steel continues to be a popular choice for all appliances, regardless of their size or function.

Granite is still a popular choice for countertops; however, quartz and marble are also increasing in popularity. Regardless of the material used for a countertop, consumers cannot go wrong with a tile backsplash. The reason for its popularity is that it allows for a splash of color without detracting from the overall look of the kitchen.

The top kitchen remodel projects also involve new flooring. Recent surveys by Houzz show that most people prefer hardwood to other flooring options. Tile in its various forms is also an excellent option, being the second most popular choice behind hardwood. Linoleum and concrete are two of the least-favorite options, which means that homeowners who choose these materials could have difficulty selling their property as a result.

White and gray are two popular color choices when it comes to decorating kitchens. White cabinets have always been in style, and continue to attract people from all walks of life. For a somewhat different look, homeowners could add gray panels or accents to provide visual interest while still maintain a timeless and classic look.

The top kitchen remodel projects will increase a kitchen's appearance as well as its functionality. Even small changes can go a long way toward improving the look of what is a very vital room in any home.

Maintaining curb appeal is important all the time, but is especially challenging during the winter months. These tips for winter home selling provide good information on how to showcase a home when the outside weather is less than cooperative.

Clear away Snow and Ice

Sellers should make sure their driveways, sidewalks, and steps are clear of ice and snow before potential buyers visit. People might not want to view a home if they have to track through ice or snow to get inside, which could mean a missed sales opportunity.

Add Color Wherever Possible

One of the best tips for winter home selling involves adding color wherever possible. A bright mailbox or door wreath can go a long way toward brightening up a home and making it appear cheerful. Even simple touches such as a new welcome mat will help provide curb appeal, while also allowing a home to seem warm and inviting.

Light Things Up

The odds of someone visiting when it's dark increases during the winter months. As such, sidewalks, decks and porches should all be well illuminated during a showing. Likewise, the entrance should also contain adequate lighting so that people can see easily. Adding some large reflective house numbers will ensure potential buyers are able to identify the home they are looking for.

Add Greenery

Planting some evergreen shrubs near the foundation of a home will help add some visual contrast against the stark winter landscape. Greenery can also be added in the way of décor, as a few small Christmas trees located throughout the house will also add charm. These trees can stay up even after Christmas is over if the decorations on them are switched up to reflect other holidays such as President's Day or Valentine's Day.

Following these tips for winter home selling will require some additional effort; however, they are nonetheless important. Taking the time to provide winter curb appeal can help homeowners make a sale during what is an otherwise slow time for real estate purchases.