Friday, May 31, 2013

A housing bubble era loan makes a comeback, with a twist

By Stephen Gandel, senior editor

 

More and more people are borrowing against their brokerage accounts to buy condos and expand their businesses. That's not reassuring.

Close-up of roulette wheel

FORTUNE -- Like the recent bull market? How about taking a home renovation to go with it? That apparently is what some investors have been doing with their stock gains.

The recent run-up in the market, financial advisers say, has led to a resurgence of the type of loan not seen since the end of the housing boom -- cash out financing. But this time, though, people aren't tapping their inflated house for money. These days stock portfolios appear to be the well of choice.


Financial planners say in recent months clients have taken out so-called margin loans to buy real estate, fund small business acquisitions, or to provide gap financing before a traditional loan could be secured from a bank.

"No one wants to be out of the market for 90 days," says Mark Brown, a financial planner for Brown Tedstrom in Denver. "People just don't want to sell right now."

 

Borrowing against brokerage accounts hit an all-time high earlier this year, according to data from FINRA, and has continued to go higher. Margin loans outstanding totaled nearly $409 billion at the end of April. That compares to $381 billion back in July 2007, the last time stock-market-fueled lending peaked.


Debt is often seen in bubbles, and loose lending was a key part of what led to the housing bust. So the recent rise in stock market borrowing has some people nervous, especially at a time when the market is already making new highs, and seemingly headed straight up. Despite being down on Wednesday, the market has not suffered a three-day string of losses all year, which is not typical. Nonetheless, according to a recent Wall Street Journal article, investors should be less worried about all this margin debt because people aren't using the borrowed funds to buy more stocks, they are using it as a cheap source of fast cash.


Somehow that was supposed to be reassuring. Instead, it feels more like a flashback to the housing bubble when people where taking out home equity loans to buy boats or just groceries.


Anecdotally, it does seem that there are more people tapping their brokerage accounts to make real estate purchases or fund their business. Chris Cordaro, a financial planner at RegentAtlantic in Morristown, N.J., recently had one client borrow against his brokerage account to buy a condo in Long Island for his daughter, who is in grad school. Another is using money from a margin loan to develop commercial real estate in Newark, N.J. Cordaro says that the client, who used to go to a bank for real estate loans, has increasingly been turning to his stock account. "Other areas of borrowing have dried up," says Cordaro. "Margin is a very efficient if you have a short-term need and a diversified portfolio."


Mitch Reiner, a financial planner in Atlanta, says he has had a few clients use margin loans to finance acquisitions for their small businesses. He says he's had a lot of inquiries from clients recently about margin lending. Sean Sebold, a financial planner outside Chicago, said he recently had a client use a margin loan to expand his oral surgery practice. "If you go to a bank it's going to be enormously burdensome," says Sebold. "The rates are very low on margin loans, and there are practically no transaction costs."

 


But it's impossible to really know how much stock market borrowing is being spent elsewhere, and how much is being used to leverage up investment accounts. FINRA doesn't track where the borrowed money goes.


What's more, many financial planners generally advise against margin loans, which recently have averaged around 2%. First of all, margin loans have a floating rate, so they will go up with interest rates, which have been rising recently. Second, margin loans are callable. If the value of your stock market portfolio drops, your brokerage firm could require you to pay back your margin loan immediately even if you have never missed a payment. Lastly, unlike borrowing against your house, there's no tax advantage to borrowing against your stock account.


Stack up all those disadvantages, and the fact that more people are using margin loans must mean there is at least some irrational exuberance going on around stock market investing right now, even if it's not quite going to burst anytime soon. "It just means people have lost touch again with market volatility," says Harold Evensky, a financial planner in Coral Gables, Fla., who says he never recommends margin borrowing. "We're back to thinking stock markets only go up."

Wednesday, May 29, 2013

Open House on Friday, May 31st, from 4-7pm at 7110 W Borigo Drive, Wasilla, AK.

 

You are cordially invited to our Open House on this stunning home on Friday, May 31st from 4-7pm. Bring your buyers and friends!!!

It will be hosted by Clarissa at Keller Williams Realty Alaska Group.

You may reach her at: 907-441-0119

 

Price just got reduced further to $239,900

“Swing by on Friday, May 31st from 4-7pm.”
Property Information:
  • Style: Two-Story Traditional
  • Bedrooms: 3
  • Total Baths: 2.5
  • Year Built: 2004
  • Sq. Feet: 1903
  • Lot Size: 0.50
  • Garage: Attached

Visit: http://lesbaileyteam.com/listing/mlsid/3/propertyid/12-14019/ 

for more details and specs about this property or call us at 907-694-1234

 

 

Come and enjoy this lovely two story home that is located in the Settlers Bay subdivision.

The inside is in immaculate condition with a vaulted ceiling and an amazing master bedroom,

with a large walk-in closet

and spa style bathroom.

 

This home was built with quality extras and has an incredible floor plan. This is a MUST SEE floor plan!!!

 

only at the 7110 W Borigo Drive, Wasilla, AK open house.

 

We also have vacant lots available.


Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

Tuesday, May 28, 2013

Best deals on real estate

Buying a home

best deals homeThe asking price per square foot in the 38 metro areas tracked by brokerage Movoto increased an average 12% in the 12 months through March. That's just an average, though; eight of the markets are cheaper now.

 

Calculator: How much house can you afford?

 

The three below are also forecast to have gains over the next year above the 4% national average projected by Fiserv.

 

Greatest decline in listing price per square foot

Chicago: Declined 15% last year, forecast to increase 6% next year
Charleston, S.C.: Declined 4% last year, forecast to increase 5% next year
New Orleans: Declined 3% last year, forecast to increase 7% next year

 

Mortgages

best deals home

 

Middling economic and job growth over the past year has continued pushing down the average rates on home loans, so that the 30-year fixed is now below 4% for well-qualified borrowers.


That said, the Mortgage Bankers Association expects better economic news to give rates a jolt over the next year (the 30-year could go to 4.5%). So grab a deal before they're gone.


Refinancers may want to consider shorter-term mortgages, notes Keith Gumbinger of consumer loan data firm HSH.com. While the spread between a 30-year and 15-year is historically 0.5%, the difference is now 0.74%.


Take advantage of lower rates

30-year conventional fixed rate mortgage: 2012: 4.0%; Now: 3.5%
30-year jumbo: 2012: 4.5%; Now: 3.9%
15-year fixed rate: 2012: 3.3%; Now: 2.8%.
Home-equity loan: 2012: 6.8%; Now 6.3%.
HELOC: 2012: 5.2%; Now:5.2%


Renting

best deals home
With minimal new construction on multifamily properties, asking rents on apartments rose 3% over the past year. Because of a surge in single-family-home investing, however, there are now some 4 million more houses for rent than in 2005, Trulia reports.

Related: Buy or rent? 10 major cities


Rents on single-family homes in the past year were flat overall and fell in many areas.


Greatest drops in asking rent on homes

Las Vegas: Average rent last year: down 2%, Average sale price: up 25%
Fort Lauderdale, Fla.: Average rent last year: down 1%, Average sale price: up 11%
Orange County, Calif.: Average rent last year: down 0.7%, Average sale price: up 14%


Brickwork

best deals home

The construction downturn isn't over for the brick industry. Sales have fallen every year since 2006, for a cumulative drop of more than 65%.

Supply yards are piled high with the red clay blocks, which are selling for about 1% less than last year and 7% less than three years ago, according to Reed Construction Data.


With 10% to 15% lower labor costs from hungry masonry contractors likely, you're looking at hundreds or even thousands in savings on a new brick patio, walk, fire pit, or retaining wall.

Gas heat

best deals home

Converting from oil to gas heat used to be a gamble, because oil often proved the more economical option. But natural gas has won handily for seven years straight, and in cold New England it averaged $1,500 less than heating oil last winter, says Mark Wolfe, executive director of the National Energy Assistance Directors' Association.


With the increased use of fracking -- the controversial process of blasting apart rock to release gas -- there's no sign of a reversal. Plus, furnace prices are down 1.4% from last year, and there are a host of incentive programs (see dsireusa.org) designed to lessen the total $8,000 to $10,000 cost of conversion. So a switch could turn a profit in just a few years.

Outdoor furniture

best deals home

As the concept of outdoor living has taken off, so has the outdoor-furniture market: Sales, which were around $4 billion last year, are expected to climb another $1 billion by 2017, according to Global Industry Analysts. Increased supply has caused prices to fall.

Costs for five-piece dining sets in aluminum have come down 12% since 2008, wood 23%, reports trade publication Casual Living.


Best deals


Ikea Äpplarö drop-leaf table and six chairs, $399 (down from $499 last year). Jennifer Litwin, author of Best Furniture Buying Tips Ever!, especially likes the versatility that the expandable table affords.

Get it cheaper - buying a home

Buy a house house for less in a seller's market - Advice from Sam Schneiderman, broker, Greater Boston Home Team

Shop in the off-season. "In family-oriented suburbs that's usually from after the school year begins till early spring. In urban locations, there's typically less competition after landlords require lease renewals, primarily July and August, until mid- to late winter."


Broaden your search.
"When rates are this low, people gravitate to neighborhoods they couldn't otherwise afford. Expand your circle to neighborhoods where prices -- and competition -- may be lower. And look at homes that have been sitting on the market at least six weeks; sellers may be more open to negotiating."


Avoid making demands.
"There are 19 other bidders the seller can move on to. Come off as sane, and you can be more appealing than someone with a higher bid who looks like trouble."


Get an A+ pre-approval.
"Work with a lender that has a reputation for closing on time and carefully vetting borrowers (ask your agent for suggestions). A higher bid contingent on financing from a lender with a bad reputation might not be as compelling as a lower bid attached to a respected lender."


What's not cheap - building materials

The overall price of building supplies has climbed 9% in the past three years. Some materials are up far more: Plywood has climbed 32%, framing lumber 25%, and insulation 18%.


Cheaper alternative: Instead of expanding your house's footprint, repurpose existing square footage to drastically reduce the materials you'll need.

Friday, May 24, 2013

Home appraisals no longer derailing sales

By Les Christie

 

home appraisals townhouse

Consider this one more sign that the housing market is heating up: Appraisers are putting higher values on homes again, allowing for more deals to go through.

 

During the housing bust, sales were often derailed by low-ball appraisals that fell far shy of a home's selling price.

For example, if a home cost $500,000 and required a 20% down payment of $100,000, the buyer would need to finance $400,000. But if the appraiser valued the home at $450,000, the buyer would only be eligible for a $360,000 loan -- making the home too costly for some buyers.

But now, as home prices climb and housing inventories shrink, appraisers are valuing homes at or above their selling prices, according to Lawrence Yun, chief economist for the National Association of Realtors.

Between 2008 and 2010, appraisals for more than a third of Seattle-based real estate agent Michael Ackerman's sales came in below the selling price. So he had to get creative.

"I started pulling out the key boxes at the homes so the appraisers couldn't get in," said Ackerman. "They had to call me to let them see the home. I would bring a packet of comparables along and explain what I used to price the home."

But now, with home prices posting such strong gains, those strategies may not be necessary anymore.

"I've closed 15 homes so far this year and none of the appraisals have come in below the selling price," said Ackerman.


He was certain a recent deal in Wallingford, Wash. was going to fall through when the buyer agreed to pay $755,000 -- well above the average $690,000 other homes in the area had sold for. When the appraisal came in at the full selling price "everybody's jaws dropped," he said.

And in some of the hottest markets, appraisals are coming in well above the selling price.

Agent Eric Tan said one appraiser did a "drive-by" of a West Covina, Calif., home he was selling in April.

"He didn't ask for any comps, to see the inside of the house, or even schedule a time to meet with me. He wrote up the appraisal right at the purchase price," he said. "I was able to sell the client's home for about $40,000 more than I thought the appraiser would value it."

In Jacksonville Beach, Fla., where prices have soared 15% over the past 12 months, agent Cara Ameer was "holding her breath" when it came time to get an appraisal on a two-bedroom townhouse she sold for $5,000 more than its $189,000 asking price.

"It was FHA financing and [the FHA is] typically much more strict," she said. That appraisal too ended up coming in above the selling price. To top of page

Thursday, May 23, 2013

FHA's solvency plan isn't fair

By Stephen Gandel, senior editor

 

The government insurer, which may or may not be in need of a bailout, plans to generate $10 billion by locking middle class borrowers into high fees for decades.

FORTUNE -- This is what you call kicking 'em when they're down.

Consumers who don't have a lot of cash to put down when buying a house usually have to pay a higher rate than typical borrowers for the first few years of their mortgage. Now, thanks to a change 120926033156-housing-gallery-2-house-for-sale-gallery-horizontalat a government program, they will have to pay that elevated rate for as long as 30 years.

 

This is apparently how the Federal Housing Administration plans to shore up its finances.

Lenders generally require borrowers to take out mortgage insurance when they don't put down 20% of a home's purchase price or have 20% equity when refinancing their mortgage. The FHA is the nation's largest insurer of low down payment home loans.


Starting next month, the FHA will begin requiring borrowers who take out their insurance to pay premiums as long as they have their mortgage. For the past decade, the FHA has allowed borrowers to cancel the policy when their loan balance drops to 78% of the value of their home, therefore eliminating the need for mortgage insurance.

At today's rates, with a 5% down payment, that would take 7 years.


The change is part of a broader plan to boost the finances of the FHA, which some say is deeply in the hole. Last month, the FHA raised its insurance premium. Now someone getting a loan with FHA mortgage insurance on average pays a 4.7% interest rate for a 30-year fixed rate loan, vs. 3.4% for borrowers putting down 20%.


But the biggest boost to FHA's finances will come from making its insurance premium permanent. FHA officials recently estimated that change would have locked in $10 billion in additional fees for the FHA on mortgages it has insured in the past three years alone. That's also the additional amount borrowers will have to pay over the life of their loans.

The problem is the FHA is going to be forcing borrowers to pay for the insurance long after they need it. Private mortgage insurers are required by law to cancel borrowers' policies once they have hit the 20% home ownership threshold. But the FHA is specifically exempted from the law.

And it's not even clear the FHA needs the money.


Recently, the Obama administration estimated in its budget that the FHA might need about $943 million in the next fiscal year to cover its expenses. That excludes any gains the agency may have from legal settlements, which have been significant recently. But almost all of that $943 million is for expected losses in the FHA's reverse mortgage program, which is not affected by the extension of the premium payments.


With home prices rising again and the economy improving, the finances of the FHA's traditional lending program have improved dramatically. They could continue to improve ... if not for the fact that the FHA may now be stuck with the riskiest borrowers and all of the losses thanks to the premium hikes. Indeed, private mortgage insurance companies have already started advertising campaigns around the FHA's recent increase in rates, saying borrowers can get a better deal elsewhere.


Nonetheless, some argue that the FHA should do whatever it can to improve its finances, even just to eliminate the perception that the agency needs a bailout.


"Rebuilding the FHA's capital base is the fairest thing you can do for borrowers," says Bill Apgar, a Harvard University professor and former FHA commissioner who was at the agency in 2001 when it began automatically canceling borrowers' policies. He notes that despite problems, the FHA weathered the financial crisis better than its rivals. "Modeling FHA to what private insurers do might not be a relevant benchmark."


But the FHA has more private competitors than it once had. Also, throughout most of the 1970s, 1980s and 1990s, borrowers who took out loans with FHA insurance could refinance into new loans after a few years, eliminating the insurance and lowering their monthly payments. Withinterest rates at historic lows it's unlikely that option will be available to FHA borrowers today.


The biggest problem we have today in the housing market, and perhaps the economy in general, is that despite the drop in prices, first-time home buyers remain relatively rare. Making it even harder to get on to the entry ramp for the housing market won't help the economy or the FHA's finances.


Update: An earlier version of this story said that under the FHA's current policy rising home prices would allow borrowers to cancel their FHA's insurance policy faster. Actually, rising home prices are not factored in.

Wednesday, May 22, 2013

Gorgeous home in the ever popular Powder Ridge subdivision, Eagle River!

Gorgeous home in the ever popular Powder Ridge subdivision, Eagle River!

16731 Theodore Drive
Eagle River, AK 99577

Phone#: 907-694-1234

Price: $425,000


Just Listed


Property Type: Two-Story Traditional/Single Family

  • Bedrooms: 4; Total Baths: 2.5; Garage(s): 2
  • Year Built: 2001; Sq. Feet: 2,582; Lot Size: 0.24
    • View: Beautiful Mountain Views
  • Heat: Forced Air
  • See this short video tour:

 

Click here for more exciting features about this property.

Wonderful home in the ever popular Powder Ridge subdivision!

Huge south facing back deck on large landscaped lot. New HOA dues with this home because it was built in the Phase 1.

Upgrades galore in this beautiful home, spacious family room upstairs,

luxurious master suite,

all new appliances, RV parking, and much more.

Gorgeous home in the ever popular Powder Ridge subdivision, Eagle River!

 

We also have vacant lots available.


Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

Tuesday, May 21, 2013

10 Ways to Prevent Costly Mold Damage to Your Home

  • By: Karin Beuerlein

 

Fixing mold damage is an expensive and time-consuming home repair. But you can save time and money by implementing these 10 ounces of prevention.
How To Prevent Mold Damage Mold Damage Prevention Tips

Home owners have good reason to shudder when hearing, “You’ve got mold!” Mold can wreck your health and finances: An extensive mold remediation can reach five figures.

Mold spores are always present indoors, particularly in humid areas. You can minimize mold growth, however, by buying a humidity monitor, which helps you keep track of home moisture that lets these spores colonize.

Here are 10 more ways to control and combat mold in your home.


1. Eliminate clutter

Cast a critical eye on household clutter, and pare down your stuff. Clutter blocks airflow and prevents your HVAC system from circulating air. Furniture and draperies that block supply grilles cause condensation. All this moisture creates microclimates in your home that welcome and feed mold growth.


So throw out things you don’t love or don’t use. Push furniture away from vents and grilles to keep air circulating. On humid, still days, run a couple of fans to keep air moving.

2. Control indoor climate

Mold problems often emerge during hot, humid summers when you’re tempted to play with the air conditioner. But set the thermostat too high, and the air conditioner won’t dehumidify your air effectively; set it too low, and you create cold surfaces where water vapor can condense.
To prevent moisture problems, and maximize energy efficiency, set the thermostat at 78 degrees F.


3. Shut windows and doors when AC is on

When you open windows and doors, you let air conditioning escape, waste money, and invite humid air into your cooler home: This causes condensation, which mold loves. So keep doors and windows shut when the AC is humming.

Also, maintain your home at around 80 degrees when you’re on vacation or at work. Too often, we bump the thermostat up to 85 degrees, or turn off the AC when we’re away. This raises temperature and humidity, which creates the ideal home for mold.

4. Properly size your AC unit

Make sure your air conditioning unit is properly sized for your house. If it’s too small, the unit will run constantly, elevating costs but not the temperature; too big, and the unit will constantly start and stop, which wastes energy, too.

Install an HVAC unit that is just right. For guidance, call an HVAC professional, or consult Energy Star’s square footage/AC capacity chart.

5. Monitor humidity

An indoor humidity monitor will help you keep track of moisture levels that, ideally, fall between 35% and 50% relative humidity; in very humid climates, at the height of summer, you may have to live with readings closer to 55%.


But if you reach 60% relative humidity, it’s time to look for the source of the added moisture; above 70% relative humidity, certain species of mold can begin growing.

Indoor humidity monitors start at about $20; more sophisticated models that simultaneously and remotely track several rooms can climb to $300.


6. Evaluate your AC

If you get a high humidity reading, first make sure your air conditioning is doing its job.


  • Is it set to the proper temperature?
  • Is it cycling on and off periodically?
  • Does it blow cold air when it reaches the set point?
  • Are coils clean?


Inspect the condensate drain pipe (the narrow white pipe sticking out the side) to make sure it’s dripping regularly. If it isn’t, the pipe is blocked and water may be accumulating inside the unit—or on your floor. If you suspect a problem, call your HVAC professional.

 

7. Look for standing water

If the air conditioner isn’t the issue, search for standing water or chronic dampness that is increasing indoor humidity and providing a lovely environment for mold.

Check for puddles or dampness around hot water tanks, sump pumps, freezers, refrigerators, basement doors, and windows. Inspect crawl spaces for ground water dampness or foundation leaks.


8. Cover crawl space

Ground water seeping into crawl spaces can add gallons of moisture vapor into your house every day. The simplest defense is to cover crawl space floors with a plastic vapor barrier—6 mil polyethylene (landscapers plastic)—that traps moisture in the ground.

If you crawl in your crawl space, use a heavier plastic that won’t rip as easily: Some 20 mil plastic coverings are on the market.


9. Add a dehumidifier

A dehumidifier removes excess moisture from the air.

You can buy a whole house dehumidifier ($1,100 to $1,800) that attaches to your furnace, treats air throughout the house, and connects to a drain so you never have to empty a tank. If you live in very humid areas, a whole-house system is the way to go.


If you have occasional bouts of dampness and musty smells, a portable dehumidifier will suffice ($150 to $200).


Most models have an auto shutoff that keeps the unit from overflowing when the storage tank is full. Some portables have a hose hookup that automatically sends water into a nearby floor drain.


10. Call a professional

If you can’t find the moisture problem on your own, or you aren’t sure how to correct a problem you do find, call a home inspector or indoor air quality consultant. Look for credentials from a respected industry organization, such as the American Society of Home Inspectors or the Indoor Air Quality Association. A house call will likely run $250 or more.


Mold remediation isn’t necessarily covered by home owners insurance, which typically pays only if the problem results from a sudden emergency covered in your policy, such as a burst pipe. Insurance usually doesn’t pay if the problem results from deferred maintenance or floodwaters (unless you have flood insurance).

Monday, May 20, 2013

New Home Advice: Choosing the Best Upgrades

By: John Riha

 

Buying a new home comes with a maze of options. That’s a good thing. Here’s advice from a pro on choosing them.

Upgraded bathroom in newly built home

When I think of building a new home for myself and my family, the first thing that comes to mind is a big, honking, six-burner, stainless steel commercial-style range with dual ovens, a warming drawer, and more knobs and dials than the cockpit of a 747.

But that’s me.


You’ve got your own vision of Shangri-La: A totally kicking laundry room with plenty of storage and — oh yes — a skylight! Or a master bedroom blissfully isolated from the hubbub of everyday family life.

That’s what’s great about buying a home before it’s actually built. You can dream big, and your options are almost limitless.
But your budget isn’t.

So what to choose?

After years as a builder and cabinetmaker, I’ve learned a thing or two about upgrades. So here’s my advice on choosing upgrades:
Go for Higher-End Kitchen Cabinets

Cabinets

Put your upgrade money here and you’ll never regret it. After all, your kitchen is where you and your family spend lots of time, and you’ll want it to be functional, durable, and a joy to be in.

Moving up from standard cabinets to semi-custom gives you way-better construction and longer-lasting finishes. You’ll get a wide range of colors and styles to choose from, lots of storage options, and long-lasting details such as dovetailed drawer joinery and cool hardware.

For bells and whistles, you can get extra-tall upper cabinets that reach all the way to the ceiling. You’ll nab extra storage space, plus you won’t have to dust the tops.

Spring for premium hinges and drawer slides. Soft-close door and drawer hardware stands up to abuse for many years, and will help keep your upgraded cabinets in top shape.

Choose Wool Carpeting

Wool carpet

The better the carpet, the better it’ll stand up to traffic and maintain its good looks. You’ll also get a wider choice of styles and colors. Wool is my favorite; it’s a little less forgiving of red wine spills (been there), but it’s long-lasting and feels great.

While you’re at it, you’ll want to upgrade your carpet pad, too. Standard pads have minimal cushioning; better pads increase the lifespan of your carpeting. Frothed polyurethane, slab rubber, and natural fiber pads are considered non-toxic pads with low VOCs.

Add More Wood Flooring

Wood floors

You can’t go wrong with wood flooring — it’s one of the few materials that just refuse to go out of style. It has warmth, blends with any décor, and makes you feel like Lord (or Lady) Grantham just looking at it. Put it where everyone can appreciate it — living room, great room, and your kitchen.

Oak is a failsafe option that’ll always look good and tends to be lower cost than more exotic woods.

Don’t Overlook Ceiling Fans

Sometimes overlooked amid all the new house options, ceiling fans are a smart, low-cost upgrade that add lots of energy-saving comfort. They’ll help keep you cool so you don’t need to use your AC as much, saving you as much as $165 in energy costs over the life of the fan.

Ceiling fans come in lots of styles — from sleek futuristic designs to Victorian reproductions — so they even can be a room focal point. They’re great in bedrooms and family rooms.

Install Skylights

Skylight

The skylights in our house are family favorites. They’re “feel good” features that work quietly in the background of daily life, bathing the interior with a soft, natural light.

A skylight adds about 30% more light than a window of comparable size.

No need to worry about too much sunlight — you can get skylights that have built-in shades that you can operate manually or by remote control. Fancier skylights open up (great for air circulation) and have auto sensors that close the canopy if rain is detected.

And, Finally, Invest in the Upgrade That Makes You Happy
Range

This is your chance to really make your house your home. So ask yourself: What upgrade would really make your new home yours?

That commercial range I want? It’s on my upgrade list.

What’s on yours?

Learn more about the benefits of a newly built home.


And find out how to plan for future needs at the same time your planning your want-to-do list.

Friday, May 17, 2013

Builders hold lotteries for eager new homebuyers

By Les Christie

builder lottery2

Demand among homebuyers is so high in some parts of the country that builders are holding lotteries to decide who gets to purchase homes in their developments.

O'Brien Homes started holding a monthly housing lottery for its 228-unit development called Fusion in Sunnyvale, Calf., after seeing throngs of prospective buyers camp out at the openings of other new condo complexes in the area.


"We didn't want that," said Susie Frimel, a spokeswoman for O'Brien Homes. "We wanted our customers to be pleased with the process."

Each month, as new sections of the development came under construction, roughly 50 buyers would show up at O'Brien Homes' sales office hoping to be picked for one of the 10 or so sites available. The participants were already pre-qualified for a mortgage and had their down payment in place. After being assigned a number, they crossed their fingers and waited for each bingo ball to be plucked from the tumbler.


For each unit, the company drew a winner and a backup, just in case the winner backed out.


Lotteries are not a perfect solution, especially for the buyer who walks away empty-handed. "Some people would come back month after month," said Frimel. "It got very frustrating for them."


Adding to that frustration was that home prices rose virtually every time a new group of homes went on sale. The two-, three- and four-bedroom homes started out between $420,000 and $620,000. The last grouping went for $555,000 to $815,000, a 32% increase.

 

Even with the price hikes, buyers kept returning. O'Brien started issuing returnees an extra bingo ball. If they lost for four straight months, they would get five chances the next time.


The last available home in the complex closed last week. Some customers got shut out. For Frimel, that was one of the hardest things to watch. She had gotten to know many of the regulars well.


In addition to O'Brien Homes, other Bay Area builders are also using lotteries, including Shea Homes at a development in Livermore, Calif. and Shapell Homes in San Ramon, California.

 


But lotteries aren't just taking place in California. In northern Virginia, Camberley Homes held a lottery to sell two model homes in a new community called One Loudoun last week. More than a dozen people participated.


In Florida, GL Homes held its first lotteries since the housing bust. In mid-April, the company sold off 11 of its model homes in Delray Beach, Fla.

 

"Our homes are at a price that we are willing to accept and not force customers to potentially get into a bidding war," said GL Homes division president, Marcie DePlaza. "So for us, the lottery is the fairest way to determine the priority in which customers will be able to purchase our model homes."


Last weekend, more than 1,000 people showed up for a sale of lots in its Boynton Beach, Fla., community featuring homes ranging from the high $300,000s to the low $600,000s. GL Homes held a lottery in which 75 homebuyers entered to win their first choice of lots.


"We set up a big tent outside the sales office to handle the crowd," said DePlaza. "We had them write out pink index cards and we put them in a tumbler. The first winner was so excited, she was crying."

Buyers seem to prefer the lottery system to competitive bidding or trying to be the first in line when a home goes on the market.


"I thought the way [GL Homes] handled it was very professional," said Neal Rosen, a math teacher who, with his wife Felicia, participated in a the lottery on April 20. "There was no rushing. They had plenty of food. And I got the lot my wife and I agonized over for three weeks."

To keep up with the surge in demand, builders are trying to build faster and get as much inventory on the market as they can, according to Glenn Kelman, founder of real estate broker Redfin.


After the hard times of the housing meltdown, builders are savoring the return of the buyers.


"We went years without having to resort to lotteries or camping out," said DePlaza. "We're thrilled to see them back."

Thursday, May 16, 2013

Sentiment shift: Home prices to rise

By Chris Isidore

rising home prices

The majority of Americans now are forecasting home prices to rise, and only about a third are expecting prices to fall, a reversal in attitudes of a year ago.

A monthly survey by mortgage finance firm Fannie Mae found 51% of those questioned in April believe prices will rise in the next 12 months, while only 35% are projecting a drop in prices. It is the first time in the three-year history of the survey that a majority said they expect prices to increase.


A year ago, 49% were expecting further price declines while only 32% said they though prices were on their way up.

The latest data from the housing market back up the this new level of confidence in the housing recovery. The S&P Case-Shiller Home Price Index rose 9.3% over the last 12 months, the biggest annual rise in home prices since the height of the housing bubble in 2006.

 

"Crossing the 50% threshold marks a significant milestone, as most Americans believe a housing recovery is truly occurring throughout the country," said Doug Duncan, chief economist for Fannie Mae.


People who were sitting on the sidelines because of concerns that prices were still falling can be drawn back into the market once they believe prices are on their way up again.Home sales are up 10% from a year ago, helped not only by the climbing prices but also record low mortgage rates and falling unemployment.

 

The survey found that those expecting prices to go up are forecasting a 7.2% rise, on average. It also found 71% think it is a good time to buy a home, relatively unchanged from a year ago, but the percentage who think it's a good time to sell has doubled over the last year to 30%.


The increase in those thinking positively about selling is also important for the market, as a tight supply of homes for sale has been one of the drags on the market.


The survey is based on the responses of 1,001 respondents, ages 18 and older. To top of page

Wednesday, May 15, 2013

Awesome custom home nestled on a secluded acre lot in Chugiak

Awesome custom home nestled on a secluded acre lot in Chugiak

20212 Chugach Park Drive

Chugiak, AK 99567

Phone#: 907-694-1234

Price: $485,000


Just Listed

 



Property Type: Two-Story Reverse/Single Family

  • Bedrooms: 4; Total Baths: 3; Garage(s): 3
  • Year Built: 2005; Sq. Feet: 2,964; Lot Size: 1.01
    • View: Beautiful Mountain Views
  • Heat: Forced Air

Click here for more exciting features about this property.

Awesome custom home nestled on a secluded acre lot with breathtaking mountain views.

This home has it all, large family room, RV parking, 3 gas fireplaces,

huge master suite,

upgraded cabinets in kitchen for plenty of storage space,

spacious and open living area,

and much more!

This is a wonderful home you don't want to miss. Awesome custom home nestled on a secluded acre lot in Chugiak


We also have vacant lots available.


Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

Tuesday, May 14, 2013

What I Wish I Knew When I Bought My First New-Construction Home

By: Lisa Kaplan Gordon

 

Building a new home lets you personalize your house for today’s needs and tomorrow’s dreams. Here’s how to plan your new home for future needs.
Living room in K. Hovnanian home The Fairfax

When I was designing our dream home 15 years ago, I was chasing around our toddler while laying out rooms and selecting finishes.
Back then, I didn’t let Ben out of my sight and couldn’t imagine a time when we wouldn’t be attached at the hip. So, I selected new-home options perfect for parents of a 16-month-old, never questioning if they’d work for parents of a 6-year-old, or 16-year-old.
Here are things that seemed like a good idea at the time.

Kitchen/great room combo:
I figured one big space would be great for watching tiny Ben while I was cooking; he’d drum on a pot while I fixed him buttered noodles. But Ben grew up and now likes to watch “Law & Order” on TV while I talk on the phone with my mom, and my husband runs the disposal after dinner. The room sometimes sounds like Grand Central, and I now dream of a separate family room and a little less togetherness.

Two main-floor bedrooms
: We downsized our master suite to squeeze in a second bedroom next to us — perfect for soothing a preschooler’s nightmares. Turns out kids outgrow nightmares, but skimpy closet space is forever.

A pass-through instead of cabinets:
I gave up two kitchen cabinets to cut a pass-through from the kitchen to our mud-cum-crafts room so I could keep an eye on Ben’s finger-painting sessions. Ben hasn’t dipped a finger in paint in 12 years, and I could really use that storage now.

The Future is Now

If I were buying a new home today, I’d do things differently: I’d crystal-ball my thinking and plan for my future needs. That’s the beauty of buying new construction: You can focus on want-to-dos, rather than to-dos — even if you can’t anticipate all your wants.

 

Luckily, builders know the life of a new home is a journey, and have consultants who help you fast-forward your thinking about features you can install now that will make life easier later.

I brainstormed with a couple of executives from Toll Brothers and Ryland Homes about some forward-thinking, new-home options.


  • A main floor den
    that could be converted into another bedroom as your family grows.

On a related note, see how people are reinventing their living rooms.


Master suite
  • Roughed-in plumbing and electric for an eventual attic or basement bathroom and kitchenette. If you don’t have the resources now, this is a great way to plan ahead. This extra living space not only could accommodate elderly parents or boomerang kids, but will increase the value of your home when it’s time to sell.

  • A double-deep, tandem garage
    that can fit three cars now, but can be walled-off later to add indoor space for an extra bedroom or bathroom.

More: Attic conversions | Garage conversions


  • Upgraded structured wiring
    throughout that can handle a souped-up Internet connection and other tech revolutions. Handy if you telecommute.

  • Temporary partition walls
    that attach to hardwood flooring, rather than subflooring. If you eventually want to combine bedrooms — kids move out — you’ll only have to do a floor repair and refinishing, rather than patch a gaping hole.

  • Plywood sheathing
    behind drywall and tile in bathrooms. These sheets of plywood let you attach grab bars anywhere without hunting for studs.

 

Grab bar

Grab bars aren’t just for our later years. They’re also good for kids and aching weekend warriors who need a little help getting into and out of a tub.


  • An addition.
    If you can site your home to accommodate a bigger footprint later, plan to run conduit through exterior walls for future electrical and plumbing needs.

Property line

Unless you’re psychic …
You’ll never know today exactly what you’ll need in the future: It’s hard for me to imagine life beyond next Tuesday.
But choosing options for tomorrow is one perk of buying new. These forward-thinking selections can mean years of enjoyment as your family changes, and can make it easier to sell if moving — and buying new again — turns out to be the best alternative.