The World of Real Estate

C.A.R. reports entry-level housing affordability rises 18 percentage points in first quarter

2008-07-05T21:21:00.001-07:00

C.A.R. reports entry-level housing affordability rises 18 percentage points in first quarter
LOS ANGELES (May 20)—The percentage of households that could afford to buyan entry-level home in California stood at 44 percent in the first quarter of 2008,compared with 26 percent for the same period a year ago, according to a reportreleased today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures thepercentage of households that can afford to purchase an entry-level home inCalifornia. C.A.R. also reports first-time buyer indexes for regions and selectcounties within the state. The Index is the most fundamental measure of housingwell-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at$356,350 in California in the first quarter of 2008 was $67,830, based on an adjustable interest rate of 5.65 percent and assuming a 10 percent down payment.First-time buyers typically purchase a home equal to 85 percent of the prevailingmedian price. The monthly payment including taxes and insurance was $2,260for the first quarter of 2008.
At $67,830, the minimum qualifying income was 30 percent lower than a yearearlier when households needed $96,500 to qualify for a loan on an entry-levelhome. Recent decreases in home prices and mortgage rates have broughtaffordability into better alignment with income levels of the typical Californiahousehold, where the median household income was $50,700.
The First-time Buyer Housing Affordability Index rose 11 percentage points in thefirst quarter of this year compared to the fourth quarter of 2007 due to a .56 pointdecrease in the mortgage rate and a 14.3 percent decrease in the entry-levelmedian home price.
At 64 percent, Sacramento County and the High Desert region were the mostaffordable areas in the state. Monterey was the least affordable area in the stateat 29 percent, followed by the San Francisco Bay Area at 30 percent.
Leading the way...® in real estate news and information for more than 100 years,the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of thelargest state trade organizations in the United States, with nearly 175,000members dedicated to the advancement of professionalism in real estate.C.A.R. is headquartered in Los Angeles.
C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX *

Affordable Housing!

2008-05-26T11:48:00.000-07:00

For release:Tuesday, May 20, 2008
C.A.R. reports entry-level housing affordability rises 18 percentage points in first quarter
LOS ANGELES (May 20)—The percentage of households that could afford to buyan entry-level home in California stood at 44 percent in the first quarter of 2008,compared with 26 percent for the same period a year ago, according to a reportreleased today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures thepercentage of households that can afford to purchase an entry-level home inCalifornia. C.A.R. also reports first-time buyer indexes for regions and selectcounties within the state. The Index is the most fundamental measure of housingwell-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at$356,350 in California in the first quarter of 2008 was $67,830, based on an adjustable interest rate of 5.65 percent and assuming a 10 percent down payment.First-time buyers typically purchase a home equal to 85 percent of the prevailingmedian price. The monthly payment including taxes and insurance was $2,260for the first quarter of 2008.
At $67,830, the minimum qualifying income was 30 percent lower than a yearearlier when households needed $96,500 to qualify for a loan on an entry-levelhome. Recent decreases in home prices and mortgage rates have broughtaffordability into better alignment with income levels of the typical Californiahousehold, where the median household income was $50,700.
The First-time Buyer Housing Affordability Index rose 11 percentage points in thefirst quarter of this year compared to the fourth quarter of 2007 due to a .56 pointdecrease in the mortgage rate and a 14.3 percent decrease in the entry-levelmedian home price.
At 64 percent, Sacramento County and the High Desert region were the mostaffordable areas in the state. Monterey was the least affordable area in the stateat 29 percent, followed by the San Francisco Bay Area at 30 percent.
Leading the way...® in real estate news and information for more than 100 years,the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of thelargest state trade organizations in the United States, with nearly 175,000members dedicated to the advancement of professionalism in real estate.C.A.R. is headquartered in Los Angeles.

Source: CALIFORNIA ASSOCIATION OF REALTORS®

Is Your Home a Burglar's Dream? Security Tips...

2008-04-05T08:38:00.000-07:00

If you are losing sleep over keeping your family safe and secure, here are five home-security statistics to remember, along with smart ways to avoid the wannabe burglar.Before you go on a security-related spending spree, check with your local police department and ask them about your area's crime rate. This can give a better sense of the potential risks.- Source: Department of Justice, Bureau of Justice Statistics.
1. More than 62 percent of home burglaries in 2005 took place between 6 a.m. and 6 p.m. (in which the time of the crime was known):Six out of 10 people are being robbed while they're at work. However, there are steps you can take to ensure your home is protected when you're not there.- A security system is a great place to start.- If your neighborhood is prone to crime, form a neighborhood watch.- Getting a dog can help you feel safe when you're home and an alarm when you aren't.- Locked windows, bolted doors, and motion sensitive lights are mainstays if you don't already have them
2. The average monetary loss per burglary in 2005 was $1,725. Who has $1,700 lying around that they could do without? Not many. Make sure to keep your belongings in a safe place, or have them appraised by your insurance company. Obviously, you can't replace the sentimental attachment to your wedding ring, but at least you wouldn't have to pay to replace it.
3. In 84 percent of burglaries, the offender gained entry into the victim's residence or other property.Most criminals are not sneaking into back yards and stealing the lawn furniture. They first get on the property, and then try to get inside.- If you have trees or other landscaping that provides too much cover for prowlers, consider trimming them back.- If you don't have a fence, consider putting one up. A fence is a great deterrent.- Pull the shades both at night and while you're not home. This makes it difficult for prowlers to "case" your home. If they can't determine if you, or your dog, are home, or if you have anything worth stealing, then they are likely to choose an easier option.
5. 74 percent of reported home-fire deaths result from fires in homes without working smoke alarms. This one is pretty simple: Get a smoke alarm and make sure it works. Nothing is more important than your family. You can replace your home, but this is a very small price to pay to keep your family safe.

Save Money at the Pumps!

2007-11-27T14:36:00.000-08:00

TIPS ON PUMPING GAS (Good information)

I don't know what you guys are paying for gasoline.... but here in California we are also paying higher, up to $3.50 per gallon. But my line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every gallon.Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.

Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.

When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3) stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.

One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY. The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.

Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up--most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

Hope this will help you get the most value for your money.

Q & A

2007-10-30T08:55:00.000-07:00

Q + A: Removing "Popcorn" Ceilings

Of all the ceiling questions we get on our national radio show The Money Pit, removing popcorn ceilings has to rank as one of the most popular. These are probably biggest challenge up in the ceiling zone found in homes from the paneling-and-disco era. At the time, they were an acoustic solution and a handy way for builders to skip having to add three layers of drywall mud and tape (with the added distraction of those little sparkle bits that were scattered across the ceilingscape), but today, they can be an inconvenient eyesore.
Removal is possible, but it takes some pretty intense work to accomplish: you’ll have to soak the popcorn surface with water (we recommend using a pump garden sprayer for this) and then scrape it all away with a six-inch drywall knife. You’ll then be left with a lot of material that should be disposed of properly, not mention some significant ceiling repair before applying an oil-based primer and a flat finish.
There are maybe a million better ways to spend a Saturday, starting with your annual dental cleaning. If you can live with the texture, you can always use a high-pile, slitted roller to apply a new coat of color that coordinates with the rest of the room.

Q + A: Electric Dryer vs. Gas Dryer: Which is Cheaper?
This makes total sense. In general, electric dryers are about 15% more expensive to run compared to gas. While this isn’t enough to justify the cost of installing a gas line and gas meter, it does make sense as a “while you’re at it” kind of project!
Another good reason to switch is that gas clothes dryers have never been “smarter” at saving you energy. Many of the newest Energy Star models include moisture sensors which turn off the dryer when the clothes are dry, which might happen before the timer reaches the end of its cycle, thereby saving both energy and the wear-n-tear on your clothes!

Q + A: Tips to Avoid Shower Shocks!
There’s nothing like receiving an unexpected blast of cold or hot water while showering to carve a knick into your otherwise domestically blissful household! The reason this happens is because of a pressure imbalance in the plumbing system. When you step into the shower and adjust the hot and cold water mix, you have established a balance between those two supply lines that deliver just the right amount of warm water. However, when the absent minded spouse flushes away, the additional demand for cold water to fill the toilet means less water is available for your original mix. Hence, the balance of hot and cold water supply changes and you get scalded in the process! The same thing could happen when the dishwasher or clothes washer starts to fill after you’ve set your shower in motion. In that case, you’d be blasted by chilly cold water as the hot water flow is shared among those other two appliances.
Fortunately, there is a mechanical solution. It is called a pressure balanced shower valve and it does just that – maintains the balance between hot and cold water, regardless of the amount of water available at any one time. If you had a pressure balance valve in your shower and the toilet was flushed or the dishwasher kicked on, the flow of the water would be reduced but the temperature would remain consistent. These valves also have an anti-scald feature allowing you to set the maximum temperature, adding an additional layer of safety for both kids and adults.

-Tom Kraeutler

How to Save for Your First Home As Buying One Gets Tougher

2007-10-16T16:51:00.000-07:00

It's a dream of many young adults to buy a first home. But there's an unfortunate reality: Even buying a "starter home" with today's lofty prices can mean saving tens of thousands of dollars for a down payment.
How do you pull it off? The key, obviously, is to save like crazy. Beyond that, here are several suggestions that may make the path to home ownership a bit easier.
1. Aim for 20% down.
Timothy Wyman of the Center for Financial Planning in Southfield, Mich., says you may be able to get by with putting only 10% of the purchase price down, as long as you are confident your income will remain steady or grow and you plan on keeping the home at least five years.
But Mr. Wyman says buyers should ideally aim to save up 20% or more of the price. The risk of putting down too little: If the home falls in value and you sell at a loss, you'll owe more to the lender than you receive from the buyer.
In addition, many mortgages require buyers who put down less than 20% to get private mortgage insurance, which can add $80 to $100 to your monthly bill. And the less you put down, the higher your loan balance and therefore your monthly payment will be.
Mortgage lender Washington Mutual estimates that a buyer who puts down 5% on a $300,000 home with a 5.88% 30-year fixed-rate mortgage might pay $2,133 a month, including fees and property tax, while a buyer who puts 20% down would likely pay $1,682 a month. (The estimate assumes the 5%-down buyer must pay for mortgage insurance.)
You'll also need extra money set aside on top of the down payment for closing costs such as title insurance and mortgage fees, which can reach up to $5,000. If you want to pay "points" to lower your mortgage rate -- a smart idea for borrowers who expect to stay in a home several years -- you'll want a few thousand dollars more.
To find out the price of local starter homes, so you can estimate what you'll need to save up, you can check out home listings on Realtor.com or compare sales data at Zillow.com.
2. Keep it separate.
Set up a separate account for your down-payment funds, so the money doesn't get intermingled with other savings and so you can keep track of how much you save. This would probably be a taxable account at a bank or brokerage firm.
Mr. Wyman suggests setting up regular automatic deposits from a checking account into the down-payment account to force regular savings. "You want to be moving money to this account before you spend it," he says.
3. Consider your time horizon.
How best to invest down-payment money depends on your time horizon for purchasing a home. Those planning to buy in three years or less should put the money in conservative investments such as short-term certificates of deposit or short-term bond mutual funds to shield themselves from potential market downturns.
If you're waiting at least five years to buy, you can invest more aggressively. A balanced mutual fund that invests in, say, 60% stocks and 40% bonds, such as Vanguard Balanced Index Fund, is a good choice and should perform better over the longer period.
4. Get extra help.
Few first-time buyers pony up the entire down payment on their own. Nearly 23% of first down payments come as gifts from relatives and friends, according to a recent survey by the National Association of Realtors.
While such assistance is great, there are also other places you can look. There are many down-payment assistance programs for first-time buyers that are offered by banks, local governments and charities. Many are open only to low- or moderate-income buyers and some are targeted to specific communities.
Some programs lend buyers a substantial portion of the down payment. For example, the California Housing Finance Agency can provide eligible first-time home buyers in Los Angeles 3% of a home's purchase price as down-payment or closing-cost assistance. The money must be repaid when the buyer sells the home, refinances or pays off the loan.
Many lenders have information about assistance programs that borrowers can seek help from.
5. Clean up your finances.
Your credit history will determine the loan terms and mortgage rates you qualify for. You could be offered a smaller loan or charged a higher rate if a lender is concerned you might not be able to repay.
So before approaching lenders, first-time buyers should give themselves the financial equivalent of a physical exam, says Ellie Deskin, a financial planner in Troy, Mich. This means checking your credit score and credit reports with the three major credit bureaus and fixing any errors. (Consumers can now get one free copy of each report annually by going to Web site annualcreditreport.com.)
Also consider paying down some debt, especially high-interest debt such as credit cards, that might flag you as a riskier borrower.
While some debt is okay, being overloaded will likely tarnish your loan terms.
6. Weigh mortgage tradeoffs.
Lenders increasingly offer creative loans, such as interest-only loans and certain types of adjustable-rate loans, that can reduce your monthly payments -- at least for a while. But these alternative loans can be much riskier than fixed-rate loans, because monthly payments can jump after a few years.
A general rule of thumb is that your monthly mortgage payment shouldn't exceed 28% of your household's gross monthly income. Check out some mortgage calculators at Dinkytown.net to calculate what your monthly payment would be with different types of loans.
7. Hands off retirement savings.
If you're just shy of saving up enough for a home, you might consider taking a small loan from your 401(k) plan or withdrawing some principal from a Roth IRA. But many financial advisers caution against tapping retirement accounts too heavily for a home purchase.
For one thing, you're going to need your retirement stash, so you don't want to gouge it. Taking a loan from your 401(k) can also be risky, since you may have to pay it back if you leave the company. And if you take money out of your Roth, you can't replace it, so you lose some of the Roth's long-term benefit of tax-free earnings.
By Kelly K. Spors,Wall Street Journal Online

5 Simple Steps to Your Dream Bathroom

2007-10-08T07:38:00.000-07:00

Bathroom remodeling is one of America's most popular home improvements and can be as budget-friendly as you choose. A simple spruce-up involving a new vanity top, bathroom fixtures and lighting can be done for well under $1000, but many homeowners are choosing to expand the space and add new tile, flooring, cabinets, even windows for a complete bathroom transformation. 1. Determine your exact bathroom needs.Do you want to enlarge your bathroom? Do you need another sink? Wouldyou like to add windows? Does the bathroom tile need to be replaced?Think about what your ideal bathroom will look like and then prioritize your needs before your wants. If space is an issue in your bathroom, consider expanding it in any possible direction. Extra square footage will open up your cramped bathroom and increase the possibilities. Taking out a wall and replacing it with a window allows natural light in the bathroom and creates a more open feel. Since most people have many hygiene products, increasing your storage space should also be considered.
2. Gather bathroom design ideas. Think about colors, textures, and overall style. Peruse bathroom fixtures, tile and flooring options. Ceramic tile is a popular choice for bathroom flooring. If you think ceramic tile will be too cold to walk on in the winter, radiant floor heating provides heat from below your floor, keeping your tiles, feet and the rest of your room very warm. A set of architectural plans will really help you and your remodeling professionals visualize the finished project, but any design preparations can be helpful. Consult with a designer for ideas or check out magazines and cut out ideas, designs or photos that approximate what you want. It can also behelpful to a designer if you can make a sketch on graph paper of what your plans are. Any of these things will be help you to express to your bathroom remodeling professionals.
3. Establish a realistic bathroom remodeling budget. At this time you will also need to determine how you will finance your bathroom remodel. Do you have a savings that you can dip into or will you need get a loan? The answer to this will be a factor in determining your budget. Will this be a larger remodel or are you making minor changes? When establishing your budget keep in mind the design ideas you would like and whether they fall on the pricier side. Also, it will always be less expensive if you don't need to relocate plumbing fixtures, such as toilets or sinks, so if you are on a smaller budget it is more economical to incorporate your current bathroom layout into the new design.
4. Don't forget building permits.Before beginning the remodeling process be sure to secure a building permit from your local city or county government. Failure to do socould ultimately make your bathroom remodel much more costly.
5. Consider popular bathroom design trends. Second sinks have become very popular in bathroom remodels as theyallow two people to use the bathroom at the same time. Non-traditional bathroom sinks are also popping up everywhere, quite literally.Above-counter sinks feature a more shallow basin giving the appearance of a bowl or dish resting atop the countertop. And don’t forget about the vanity. Antique bureaus are showing up as a fresh take on the bathroom vanity.Consider retrofitting an antique or purchase a vanitydesigned to mimic this look. If you only have a shower, consider replacing this with a bathtub which can serve double duty as both a bath and a shower. Vertical spas provide a massage in the shower with body sprays installed vertically along the wall. Whirlpool bathtubs have also become very popular intoday's bathrooms. Another popular trend in bathroom design is to separate the toilet from the rest of the bathroom. Nearly everyone elects to include a bathroom exhaust fan, often incorporating a heater on a timer, as well.

Choose your "home sweet home' by lifestyle and price

2007-09-26T10:43:00.000-07:00

Choose your 'home sweet home' by lifestyle and price
By Teri Cettina • Bankrate.com

When it comes to buying the perfect home, there's no such thing as "one type fits all."
A young couple planning a family might want a suburban house with a huge yard for romping dogs and youngsters. A single professional who racks up record frequent-flyer miles might consider a low-maintenance condo a "home nirvana," while an empty-nest older couple might find their perfect abode in a planned community that offers extra amenities for seniors.
The one thing all of these folks have in common is that they are part of a growing trend: buyers who are considering their lifestyle needs -- not just a house's price tag -- when they choose "home sweet home."
Fortunately, today's market offers housing options to suit every buyer's fancy, from traditional single-family homes to urban lofts, condominiums and townhouses.
While some people jump into the home-buying process with a very clear vision of the ideal type of home for their families, Terry Hankner, a Realtor in Cincinnati, says most of her clients are still working that out.
"I spend a lot of time asking questions about how they live and how it might influence the home they choose," explains Hankner. "Are they planning a family? Do they routinely have out-of-town visitors? Do they need a formal room for entertaining? Do they enjoy yard work? The answers make a huge difference in the type of home that will fit them best."
Realtor Rick Harris of Ashland, Ore., agrees that developing your home wish list goes far beyond selecting the ideal number of bedrooms and bathrooms.
" To pick the right house, you really need to evaluate your own personality," says Harris. "Are you an orderly person who likes to look out your window and see that all of your neighbors' yards are neatly trimmed? You might enjoy a home in a planned development with landscaping guidelines. Do you want your home to be a refuge, where you can relax without having to do a lot of yardwork? If so, a condo or townhouse might be perfect.
"Or maybe you want your house to express your individuality -- and you don't want any limitations on the way you do so," says Harris. In that case, a single-family home with no homeowners association would be a better option.
Another big issue when choosing your ideal home is privacy. "Some folks are comfortable living 'cheek to jowl,' or very close to their neighbors, as in a condo," says Harris. "Others are not, and need the space that a traditional home on a big piece of land can provide."
Last but not least, consider how much time you want to spend driving. "Many buyers choose a particular neighborhood because it is close to work or, in the case of older parents, close to where their children live," says Dick Gaylord, a Realtor in Southern California's desirable Long Beach area. "If the buyers are set on a specific area, that's great, but they may have to choose the kind of home that is most available -- and affordable -- in that neighborhood."

Top Home Security Risks

2007-09-05T08:24:00.000-07:00

Top Home Security Risks
Avoiding weak links that welcome intruders
By Tom Kraeutler, AOL Home Improvement Editor,
At the reported rate of one burglary every 15 seconds, national risk for household break-ins is very real, no matter where you live. And though "unlawful entry" may conjure up dramatic scenarios including crowbars and shattered glass, it's actually the little things you overlook that extend a welcome to intruders.
A home's security is only as good as its most vulnerable point of entry, and with so many details and distractions in your home care routine, it can be easy to miss an opportunity that a burglar won't. To protect your family and preserve your home sweet home, do your own security check against these weak links.WANDERING KEYS -- The idea of handing your house key to a burglar may seem ridiculous, but that's exactly what you could be doing every time you send a spare floating among family, friends and service personnel. The key holders themselves may be trustworthy, but you can't control the paths they may cross and the situations in which your key may be exposed to the risk of duplication. So be smart about issuing spares, and take care when you're carrying your master set through everyday routines, such as valet drop-offs and auto shop visits. Finally, don't ever hide spare keys in "secret" places outside your home, because smart snoops know which flowerpots to look under.SCHLOCK LOCKS -- A door with a handle lock is an easy mark for a crook armed with finesse and a plastic credit card, so install quality deadbolts at all entries. The best bet is one offering keyed access on the outside and a thumb latch on the inside, providing exterior protection and a quick-response release in the event that the home's residents need to make an emergency exit. New styles of deadbolts, like Master Lock's NightWatch, feature a locking mechanism that actually locks out duplicate keys when activated. If a contractor, housekeeper or next-door neighbor has regular access to your house keys, consider installing such a deadbolt to ensure that they can only access your home when invited.
DOORWAY DOWNFALLS -- In the end, a lock's effectiveness depends on the strength of the door in which it's installed, so make adjustments for a more selective welcome. The weakest part of a door is usually the area around the lock, especially in wood doors, so adding a decorative and affordable door reinforcement plate is one way to make the area more secure. Better yet, consider replacing your front entry with a fiberglass door, which mimics the look of wood but is far stronger and more energy efficient. Fiberglass doors like those from Therma-Tru also feature multi-point locks utilizing bank-vault-style pins to prevent the door from being kicked in.
SLIPPING SLIDERS -- Sliding patio doors have the inherent security disadvantages of less-sophisticated locks and location at the rear of a home, and what's more, the older models can actually be lifted right off their tracks and away for a grand intruder entry and exit. To prevent such dramatics, consider equipping your older doors with specially made "patio bars" that prevent them from sliding back in their tracks even when their locks have been damaged.NO PEEKING -- You can't always see an intruder coming, but that doesn't mean you shouldn't keep an eye out for the unusual. Extend your view by installing a wide-angle (200-degree) peephole that allows you to take in your entire entryway at a glance.WINDOWS OF OPPORTUNITY -- Open, unattended windows give intruders a tempting view and an easy way into a home. Adorn yours with window dressings and shades that discourage prying eyes, do a double-check to make sure all units are closed and locked before you leave home on even the shortest errand, and enhance security with supplementary keyless locks. Security bars may be installed over small, ground-level windows situated in low-traffic areas, but only if they're fitted with quick-release mechanisms that allow them to be opened from the inside in an emergency.SHADOW PLAY -- A network of shadowy hiding places around your home's exterior is just what an intruder hopes for, so be sure to illuminate and eliminate all possibilities. One of the most effective ways to do this is by installing motion-detector spotlights, which have built-in sensors that switch on the lights as soon as movement is detected nearby.NATURAL CAMOUFLAGE -- Tall trees and dense shrubbery can wind up being accessories to crime as well as to your landscaping. So keep front hedges and bushes cut low and trees pruned, especially around windows and entryways where burglars may perch before breaking and entering.

How to buy a second home...

2007-08-06T20:46:00.000-07:00

How to buy a second homeBy Holden Lewis • Bankrate.com
Not long ago, Frank Kwok moved from a 900-square-foot townhouse on the North Shore of Oahu "because we wanted our own home with a yard and everything." So he bought a 2,500-square-foot home in what he calls the "bustling suburb" of Kapolei, not far from Honolulu.
He kept the tiny townhouse in the beach town of Haleiwa. It's now his family's second home: "We go back there whenever we don't want to be bothered by neighbors."
Kwok did it backward -- turning the first home into the getaway home -- but he did something that many Americans do or dream of doing: He bought a second home.
Buying a second home isn't much different from buying a primary residence. If you don't rent it out regularly, so it's not considered an investment property, you can get the same mortgage rate that you would get on your primary house. Depending on circumstances, you might be able to deduct the mortgage interest from income taxes.
When you shop for a second or vacation home, you have two friends: time and your primary home's equity.
"If they look for a second home, people need to be patient," Kwok says. "Don't rush into it. They already have a place to live. Weigh the pros and cons of each place."
Bob Walters, vice president of Quicken Mortgage, delivers the same advice. "Don't make any rash decisions," he says. "There's no reason you have to buy it right now. If you find a place and love the place, stew on it a couple of months. It'll still be there."
The cooling-off periodDuring your self-imposed cooling-off period, think long and hard about how often you will visit and how much time you will spend. Are you the type of person who buys a 12-month health-club membership, then stops going after a few weeks? If you are, what makes you think you will treat the vacation home differently?
Even if you feel positive that you will spend sufficient time at the second home, you must decide whether it's worth the money. "I think second homes, more so than primary residences, have to be treated as an investment," Walters says. And he's not talking about investment properties that are rented out.
"You have to view it with a cold and calculated eye," Walters says.
How much time will you spend there? What will be the price appreciation -- realistically? How much will you have to pay every year for landscaping, association dues, garbage collection and taxes?
"They have got to do the math," Walters says. "Calculate how much it will cost them annually. Calculate their financial return."
And don't try to time the purchase to get a better price. That tactic rarely works, says Diane Saatchi, a real estate agent who sells homes in the Hamptons on Long Island. Buyers sometimes think they'll get a better deal on a home in the Hamptons in the winter, or on a home in Florida in the summer. But sellers are savvy, and home values don't fluctuate by season.
"What I tell people all the time is that the best time to buy a house is when you want a house," Saatchi says.
Ease your doubtsShe also recommends that you request photos of the property taken during different seasons. If you go house-hunting in the Hamptons during the winter, neighboring houses might seem too close because of the lack of leaves on the trees. A picture taken during the summer, when you'll spend most of your time there, can allay your fears of being crowded by your neighbors.
Saatchi adds that you should ask around for a trustworthy real estate agent to show you around -- someone who will tell you about the all-night parties that are often held on a particular stretch of beach, or about the next-door neighbors who plan to build a tennis court just a few feet from your bedroom.
Finally, she says, make sure you can get the insurance you need, particularly if you want to buy a home near the beach. "That's a good thing to know -- the availability and cost of insurance -- before you pay for legal fees and inspections," she says.
Financing the dealOK, you have done the math, looked at year-round photos of the property, and thought it over for a while. You have decided that, yes, you want to buy that cabin in the mountains or that condo on the beach. If you don't have the cash to pay for it outright, the next step is to find a mortgage. The lender or broker who handled the mortgage on your primary home is an excellent place to start if you were satisfied with the service you got.
But you might have to shop around. Different lenders have different standards when it comes to mortgages on vacation homes, as Bill Andrus of Denver has discovered. He owns two condos in major ski areas, and rents them out as much as possible.
"Some lenders won't touch second or third homes, others solicit them, and yet others offer normal rates without the investor penalties, as long as we occupy them sometimes," Andrus says.
Walters says that the loan standards for primary and secondary homes are virtually identical, especially for conventional loans -- in other words, loans for amounts under the jumbo limit (in 2005, that's 359,650). Rates are about the same, unless the lender considers the house an investment property. In that case, expect to pay an interest rate about 1.5 to 2 percentage points higher. As Andrus points out, some lenders might grant a lot of leeway when deciding whether a vacation home is an investment property.
When it's time to make a down payment on your second home, you can use the equity in your primary home. You can either extract the equity by doing a "cash-out" refinance, or by getting a home equity loan or an equity line of credit. You can use that equity to make all or some of the down payment on the second home.
There are complex tax implications to borrowing to buy a second home. Generally speaking, the interest is deductible from federal income taxes. But if you borrow from the equity on your first home to make a down payment on the second home, you can write off the interest on only the first $100,000 of equity debt.
If you rent out the second home, you have to spend a certain amount of time in the home every year to be able to deduct the interest. Your best bet is to read IRS Publication 936, Home Mortgage Interest Deduction and Publication 527, Residential Rental Property. Once those have confused you, consult an accountant.

Your Real Estate Agent

2007-07-01T19:14:00.001-07:00

Your Real Estate Agent
While more Americans are negotiating sales themselves these days, most find comfort in the expertise a real estate agent can offer. If you're selling, the agent can help you set a realistic price for your house; offer tips on making your property more attractive to potential buyers; market the house through the MLS service, ads, open houses or signs; and guide you through the closing process. Some seller's agents may offer a la carte services and reduce the commission. The buyer's agent helps clients sort through their priorities, understand neighborhoods and local market conditions and find a house in their price range.
Questions to Ask

Get Your Home Organized!!!

2007-06-19T08:35:00.000-07:00

What good is having a stylish kitchen or an entertainment room, if household items are all over? Somehow clothes don't quite make it to the laundry, and packed garages have forced us to park in the drive. Yet these things are an easy fix with the right storage systems. Proper organizing and simple remodeling can help. Consider the areas of your home that need the most organizing help -- those with storage issues and also those that are the most visible. Certain rooms should stand out immediately in your mind. Highly visible rooms usually seen or used for entertaining purposes include the kitchen, family/living rooms, bathroom and dining room. Some houses have a laundry or mud room located near the kitchen, so this might need to be addressed. Also, look at your foyer and the closet space available for guests' coats. Kitchen OrganizingStarting with the kitchen: Evaluate how much clutter can be eliminated by clever storage designs. Are your appliances sitting out and taking up counter space? Do food items take up cabinet space? Does everyone in the house use the kitchen as a convenient place to throw personal belongings? Maybe a storage rack can provide the perfect space to put appliances that aren't being used or extra food. A wooden rack could be painted or stained to match your color scheme. A rolling cart with shelves or drawers offers family members space to stash personal items. These often can be found in basic, neutral colors that will blend nicely. Organizing Family and Living RoomsThinking of organizing family and living rooms can provoke anxiety for many people. With all of the entertainment technology available, people tend to fill these rooms with VCRs, televisions, stereos, speakers, and all forms of media to go with each: videotapes, CDs, cassettes, etc. Quite a bit of clutter can accumulate. Fortunately, the need to organize all of this has been recognized and there is a wide variety of options available to consumers. Attractive entertainment centers of all shapes and colors are available to conceal your electronics. Since entertaining guests can include listening to music or watching videos, having your CDs and videos organized will help you significantly when the time comes. There are hundreds of options for storing these popular forms of media. CD towers, shelves, drawers all serve the purpose and come in varying styles. Bathroom OrganizingWhichever bathroom is most easily accessible for guests is the one that will need the most help. A person's bathroom tells you a lot about them. Besides having it clean, it should be neat and orderly. Since bathrooms are typically very small rooms, the slightest disorganization can clutter it. Shelves and cabinets make this task easy. Towels, soaps, toiletries, and even decorations can be placed on shelves to make the bathroom appealing to everyone. Dining Room OrganizingFor more formal occasions, people like to use their dining rooms. Beautiful corner cabinets provide excellent storage and display for fine china and fragile items. There shouldn't be too much clutter in this room. If there is, it should be cleared out and stored elsewhere. Buying ordinary storage containers for this room will take away from the formality and ruin the atmosphere. Laundry Room OrganizingIf a laundry room isn't closed off from any of these areas or is located in or around any of these rooms, look at it with a critical eye. Chances are it will appear unattractive and messy. Storage bins that come in fun colors can be stacked to hold just about everything. This is also a good place to put some extra bins for children's toys. Before guests arrive, toys can be stashed away out of sight with minimal effort. Add a coat rack or hooks for extra jackets that may be strewn throughout the house. After putting everything in a proper place in attractive containers, your main rooms for entertaining should look terrific and much improved. Guests will appreciate visiting your well-kept home and perhaps you'll inspire them to do the same.

Avoiding intruders

2007-06-18T06:31:00.000-07:00

Top Home Security Risks

Avoiding weak links that welcome intruders.

By Tom Kraeutler, AOL Home Improvement Editor
At the reported rate of one burglary every 15 seconds, national risk for household break-ins is very real, no matter where you live. And though "unlawful entry" may conjure up dramatic scenarios including crowbars and shattered glass, it's actually the little things you overlook that extend a welcome to intruders.

Tom Kraeutler is AOL's Home Improvement Editor and host of 'The Money Pit,' a nationally syndicated home improvement radio show.
A home's security is only as good as its most vulnerable point of entry, and with so many details and distractions in your home care routine, it can be easy to miss an opportunity that a burglar won't. To protect your family and preserve your home sweet home, do your own security check against these weak links.WANDERING KEYS -- The idea of handing your house key to a burglar may seem ridiculous, but that's exactly what you could be doing every time you send a spare floating among family, friends and service personnel. The key holders themselves may be trustworthy, but you can't control the paths they may cross and the situations in which your key may be exposed to the risk of duplication. So be smart about issuing spares, and take care when you're carrying your master set through everyday routines, such as valet drop-offs and auto shop visits. Finally, don't ever hide spare keys in "secret" places outside your home, because smart snoops know which flowerpots to look under.SCHLOCK LOCKS -- A door with a handle lock is an easy mark for a crook armed with finesse and a plastic credit card, so install quality deadbolts at all entries. The best bet is one offering keyed access on the outside and a thumb latch on the inside, providing exterior protection and a quick-response release in the event that the home's residents need to make an emergency exit. New styles of deadbolts, like Master Lock's NightWatch, feature a locking mechanism that actually locks out duplicate keys when activated. If a contractor, housekeeper or next-door neighbor has regular access to your house keys, consider installing such a deadbolt to ensure that they can only access your home when invited.

DOORWAY DOWNFALLS -- In the end, a lock's effectiveness depends on the strength of the door in which it's installed, so make adjustments for a more selective welcome. The weakest part of a door is usually the area around the lock, especially in wood doors, so adding a decorative and affordable door reinforcement plate is one way to make the area more secure. Better yet, consider replacing your front entry with a fiberglass door, which mimics the look of wood but is far stronger and more energy efficient. Fiberglass doors like those from Therma-Tru also feature multi-point locks utilizing bank-vault-style pins to prevent the door from being kicked in.

SLIPPING SLIDERS -- Sliding patio doors have the inherent security disadvantages of less-sophisticated locks and location at the rear of a home, and what's more, the older models can actually be lifted right off their tracks and away for a grand intruder entry and exit. To prevent such dramatics, consider equipping your older doors with specially made "patio bars" that prevent them from sliding back in their tracks even when their locks have been damaged.NO PEEKING -- You can't always see an intruder coming, but that doesn't mean you shouldn't keep an eye out for the unusual. Extend your view by installing a wide-angle (200-degree) peephole that allows you to take in your entire entryway at a glance.WINDOWS OF OPPORTUNITY -- Open, unattended windows give intruders a tempting view and an easy way into a home. Adorn yours with window dressings and shades that discourage prying eyes, do a double-check to make sure all units are closed and locked before you leave home on even the shortest errand, and enhance security with supplementary keyless locks. Security bars may be installed over small, ground-level windows situated in low-traffic areas, but only if they're fitted with quick-release mechanisms that allow them to be opened from the inside in an emergency.SHADOW PLAY -- A network of shadowy hiding places around your home's exterior is just what an intruder hopes for, so be sure to illuminate and eliminate all possibilities. One of the most effective ways to do this is by installing motion-detector spotlights, which have built-in sensors that switch on the lights as soon as movement is detected nearby.NATURAL CAMOUFLAGE -- Tall trees and dense shrubbery can wind up being accessories to crime as well as to your landscaping. So keep front hedges and bushes cut low and trees pruned, especially around windows and entryways where burglars may perch before breaking and entering.

Home Improvement Scams.....

2007-06-16T23:30:00.000-07:00

6 sleazy home improvement scams

By Alana Klein • Bankrate.com
It's time for less talk and more action.
Like most homeowners, you probably spent the winter months talking about the various home improvements you'd like to make. Now that spring is here, it's time to act on those remodeling impulses. After all, spring is a time of renewal, change and new beginnings.
Unfortunately, it's also a time when crooked contractors come out of the woodwork to prey on innocent homeowners. "Some are actual scam artists, while others are just incompetent or unethical," says Ellis Levinson, a consumer reporter and author of the book "Hiring Contractors Without Going Through Hell."
The good news is you can protect yourself against these scams. In fact, many scams are easy to detect if you take the time to become an educated, savvy consumer. "Compare prices, call references, and research the project you're undertaking in advance," says Bruce Johnson, author of "50 Simple Ways to Save your House." It seems simple but many people find this process overwhelming.
Levinson calls it emotional laziness. "It's amazing to me how much time people will put into buying a TV because it's fun. But when it comes to remodeling a kitchen, people have no time. They see it as drudgery," Levinson says. Ultimately, he says, doing the research to protect yourself is much easier than paying for the consequences.
To help you differentiate a scam from the real deal, Bankrate has compiled a list of the most common remodeling scams. Beware of the following key phrases, and remember, if it sounds too good to be true, it probably is.
Key phrases to beware of:
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"I just happen to be working in your neighborhood."
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"I have materials left over from another job."
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"I need the cash up front."
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"I have a special offer that's good for today only."
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"I can help you finance the project."
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"I want to use your home as a model."
"I just happen to be working in your neighborhood."You'll hear this when contractors appear at your home unsolicited to inform you they noticed some problems with your home's (insert: chimney, driveway, windows, plumbing, etc.) while working on a neighboring home. For example, the contractor might say he or she was on the roof of your neighbor's home and noticed missing shingles on your roof. This may be the case -- but often no repair is needed.
-- Posted: April 4, 2007

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Buyer's Best Friend

2007-06-15T10:29:00.000-07:00

Rick Williams, AOL
A Home Inspector Is a Buyer's Best Friend
When buying a home, few items on the checklist are as important as the home inspection. It could help you avoid costly repairs, such as a leaky roof, bad plumbling or shoddy wiring.But first, how do you know if your future home is getting a thorough inspection? We've asked a veteran home inspector to outline the key areas.
More Tips and Inside Stories
Before and After Photos
An Agent's 11 Pointers
Foreclosure Buying Tips

Model Home Presentation Key

2007-06-14T16:52:00.000-07:00

Dressed to Sell: Model Home Presentation Key
Dressed to Sell: With Houses Lingering on the Market, Builders Outfit Their Model Homes
"Back during the boom years, when people would camp overnight to buy into a new community, the model home lost some of its impact as a selling tool. Like Winchester, some builders did not even decorate their models. Others used the models only to market their upgrades. Now that the pace of sales has slowed, however, builders and interior designers say the model home has become more important than ever in marketing an entire community."
This says it all. There's also a neat chart that compares the number of bedrooms homes have by county. Some of the highest percentages are in well-to-do suburbs in places like Atlanta, Salt Lake City and the District of Columbia.

First Time Home Buyers, What tools do you need?

2007-06-14T10:06:00.000-07:00

what tools do you need?
·Mortgage Rate Ticker
·Find a REALTOR®
·Rent vs. Buy
·What Can You Afford?
·Calculate Payments
·Get Your Credit Score
·Community & School Reports
·Find Home Values
·Find a Neighborhood
·Set Up Utilities
·Plan Your Move
·Find a Contractor

What type of home buyer are you?

2007-06-14T09:29:00.000-07:00

what type of home buyer are you?
First-Time Home Buyer
Nervous? It's only natural. Get tools and info to help you figure out what you need and what you can afford.
Get started
Buyer and Seller
Juggling buying and selling can be tricky for experienced home owners and first-timers. Get help figuring out what works best for you.
Helpful resources
Renter
The right place can quickly turn into the wrong place. Search for a roommate, print out checklists for your walkthrough and learn how to get your deposit back.
Learn more
Real Estate Investor
No one ever got rich without risking something, but it's not rocket science either. Learn from other investors and get started.
Start searching
Vacation Home Buyer
Everyone dreams of fun in the sand or the snow with their family and friends. But some people bite off more than they can chew, and make their dream a nightmare.
Start Smart