Real Estate News

Usually you choose to visit and look inside a home if the outside is attractive to you at first glance. But take a little time when you drive past or visit the house to look at some things you can see without entering the house. Upon your first (and maybe last) visit, you may have found the house you want but there may be many things you and your agent can spot as warning signs right away about a house of interest without a home inspector:

(1) Did you notice the style, condition and maintenance of the exterior and yards of the homes in the neighborhood?
(2) Upon arriving at the house, how is the slope of the yard – level or toward the house?
(3) What is the age and condition of the roof?
(4) Does the exterior/siding look in good shape and painted recently?
(5) Any obvious water damage, mold, mildew or “funny smells” inside the house.
(6) Attic – insulation existent and adequate or large stains on ceiling of roof?
(7) Age and condition of kitchen appliances, water heaters, and HVAC systems.
(8) Look around the house to see if any foundation cracks, rainfall drainage, or landscaping issues such as retaining walls and their condition.

Source: http://realtytimes.com/rtpages/20120306_inspection.htm

Apparently, according to price-to-rent ratios (home price divided by average rent per month), homes in fourth quarter 2011 were the cheapest since 1987…but the ratios have risen since. In June, it was close to 23 vs. about 20.5 long term average.

Another comparison of affordability is comparing price to average annual household income.

For each 1% rate rise in interest rate, Buyer would need to see a 10% drop in home prices for equivalent payment.

So if you are buying a home, not for strictly investment gain, it’s a good time to purchase to hedge home price inflation and rising mortgage interest rates.

No and yes…

3-15-2015: Is your state or local Governmental property taxing authority using using AVMs (software creating automated valuation models)? One problem cited in this article is that these computerized systems are notoriously inaccurate. So how are you challenging your property valuations from your taxing authority?

Source: Correlation article

California Housing Finance Agency (CalHFA) announced a new fixed-rate mortgage program for low- and moderate-income first-time homebuyers, providing thousands of dollars in down-payment assistance.

Source: http://www.pasadenastarnews.com/business/20130905/new-loan-program-for-first-time-buyers

The definition of a price to rent ratio is a mathematical calculation used in the Trulia Rent Vs. Buy Index that compares the totals costs of homeownership with the total cost of renting a similar property. The total costs of homeownership considered by the ratio include:

• Mortgage principal and interest
• Property taxes
• Insurance
• Closing costs
• HOA dues where appropriate
• Mortgage insurance where appropriate

Logically, a ratio > 1 means its more expensive to buy, <1 is more expensive to rent...and 1 means either option is the same financial impact.
Tax advantages for owning (such as the mortgage interest deduction) and the total costs of renting, including the actual rent and renter’s insurance, are also considered in the total cost of renting.

See my blog post What’s the fate of Mortgage Interest as an Itemized Deduction? for more developments on mortgage interest as tax deduction.

http://www.fool.com/investing/general/2012/03/27/housing-time-to-buy.aspx

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Ever wonder if there are laws or rules governing what’s homeowners association can and can’t do in the state of Georgia?… Well here is the Official code of Georgia – http://http://www.lexisnexis.com/hottopics/gacode/Default.asp Search for Title 44, Chapter 3, and Article 6 that outlines rules for HOAs.

If only non-US citizen DNA can be patented, that way immigration reformers can approach the International Trade Commission to stop illegal immigrants at the US border!

But seriously, according to Wall Street Journal article “A Backdoor Move to Shut Out Rivals”, the ITC has the authority from the Smoot-Hawley Tariff Act of 1930 to prevent (i.e., ban) “patent infringing items” to cross the US border.

The ITC is supposed to decide these cases on a “public health and welfare” basis and “competitive conditions in the US economy”. Well, transmission of diseases has flourished through international travel and Americans have lost jobs. I say those conditions qualify immigration reformers, including the Dustin Inman Society, with enough food for thought!

Source: Wall Street Journal, 8-29-2013, A6.

These are good videos to pass onto someone you know who may be behind or getting behind on their mortgage payments and need to avoid getting caught in a scam.

Freddie Mac videos on homeowners handling foreclosures and distressed sales

Another good resource for them is my blogpost on “Help for Homeowners – Summary of Programs”

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

I had a recent former client throw an absurd figure on Zillow’s “make me move” option and he got a reply…but sorry, no sale – just testing the waters.

But apparently, of the 150,000 or so people who posted their MMM prices, there are a small percentage (around 2%) of those who have sold and moved…

Also, selling about 7% less than asking prices where listed properties are selling about 4% less than asking price (of course Sellers may have started with higher than normal prices) ….Other statistics showed that about 60% of sellers had fewer than 1000 square feet for sale and about 85% had fewer than 2,000 square feet…

So it might work in small places in downtown New York, Chicago, or San Francisco…or Igloos in Alaska?

Source: Wall Street Journal, 3-29-2013, Page M12

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

My question: Why do we keep laying off skilled and capable US citizens for lower paying unskilled (but US trained) foreign workers?

For 2016, the US Government has received more than 236,000 (233,000 in 2015 an 172,500 in 2014) applications (for 85,000 available visas) from US companies for skilled worker (H1-B) visa. About 20,000 of the 85,000 applications are for foreign workers with advanced degrees from US universities.

The more we try to weave a web around the immigration and US citizen employment issues (including the lucrative almost $100 Billion outsourcing market), the more we stab ourselves in the back.

According to a 8-29-2013 article on Page B8 of the Wall Street Journal, the (noble) current legislative attempts by US Congress will prohibit H1B visas from companies employing lots (>75% of US based employees) of foreign computer science workers (i.e., India, Southeast Asia, other non-US place). Furthermore, the companies with >15% of US based employees on H1B visas can’t perform hardware or software services, and will further restrict use of H1B visas..unless…more US workers are employed (by telling Sally or Billy NO, you’re not going to be a liberal arts major) or….by US companies laying off US citizens and hiring H1B visa employees who fall far below the 75% threshold….or…

Several companies split up and spinoff and operate under different (i.e., non-US) companies and game the system….which is what most companies do – find the loopholes around it.

Interesting side note: about 120,000 new computer science jobs will need to be filled in 2013 and roughly 52,000 (less than half) will be produced from US colleges. So there will be a shortage to be made up by whom – Martians?

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.