July 17, 2009
Top 10 home updates for your best return on investment!
The secret to successful remodeling is to keep up with the Joneses — but never to surpass them. Whether you want to make more money than you spend, or just recoup your remodeling expenses if you sell your home, know what’s standard in the neighborhood.
Does everyone have laminate kitchen countertops? Splurge on granite and you’ll be the envy of your friends, but you won’t get your money back at resale. Is your home in a high-end neighborhood? Laminate countertops will save you money, but if you have to sell, high-end buyers will discount their offer because your kitchen isn’t what they expect or simply not buy your home at all.
In markets where home prices are declining, remodeling decisions are particularly tough to make, especially if you’re remodeling to get your home sold. If you don’t update, your home may not attract buyers. However, if you do update, you may not be able to recoup what you spend. Seek advice from at least three experienced real estate agents before making any decisions.
Before you pick up a hammer, visit real estate open houses and new-home communities. Ask the builder to show you a spec home (that’s an already built home without the model home’s decorative features and upgrades). Then, compare your home to homes on the market to make sure your remodeling project is on par with the competition.
“The homes that sell in a buyer’s market have four things in common: an in-demand location, the right price, a perfectly maintained exterior and updated kitchens and baths,” says Susan Huerta, a Realtor with Long & Foster Real Estate, Clarksville, Md.
To get the biggest bang for your remodeling buck, try one of these 10 projects, which have the highest payoffs, according to Remodeling magazine’s 2009 Cost vs. Value Report (CVR).
Money Magazine names its 200 Top 100 Small Towns in America…
CNNMoney.com and Money Magazine are always looked at as the gold standard when ranking towns across America (in my humble opinion). For 2009, they chose Middleton, WI again for its Top 10 list…putting it at #4. This is the third time since 2005 that Middleton was chosen for the list, topping the list at #1 in 2007. Congratulations!
If you’d like to see the entire list, click here to get to their website.
May 14, 2009
$8000 credit can now be used for downpayment!
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S. Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to monetize the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today’s Market:
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
May 2, 2009
Madison, WI #2 in Top 25 Most Uniquely American Cities & Towns
Newsmax magazine commissioned Peter Greenberg, best-selling author and travel editor of NBC’s Today show, to compile a list of the nation’s most uniquely American communities.
Greenberg sought out cities and towns that embody America’s core values. In addition to ranking the top 25 American locales, Greenberg graded each town and city on a 1 (low) to 10 (high) scale, for 9 different categories, including Hospitality, Culture, Scenic Beauty, and Business-Friendliness.
I’d like to add a congratulations to Wichita, KS for nabbing the top spot on this list. Milwaukee, WI came in a very respectable #11 as well.
One of America’s most attractive cities, Madison long has been known for academic excellence and outdoor amenities. The city also is gaining recognition as being seemingly recession-proof. That’s partly because of the number of government jobs, as well as positions in biotech.
But more than that, Madison is a wonderfully livable place. Lakeshore Park offers a popular route for hikers, joggers, and nature lovers, with numerous picnic spots and a sand beach along a trail connecting 300 acres.
The Scores:
- Hospitality: 8
- Wholesomeness: 7
- Family – Friendliness: 9
- Business – Friendliness: 8
- Devotion to Religion: 7
- Culture: 9
- Community Activities: 9
- Scenic Beauty: 9
- Education: 10
April 13, 2009
Madison Farmer’s Market opens on the Square on April 18th!
The Dane County Farmer’s Market is about to open outside on the square. April 18th will be the beginning of the 2009 Spring/Summer season. If you want to avoid crowds, do your shopping before 9:00 am, and if you can, bring your own bags and bike down!
The Farmer’s Market is one of my personal favorite things to do on Saturday mornings. Atmosphere is always upbeat & friendly and it’s a great way to get to know the downtown area!
If you haven’t checked it out before, you really should….and don’t forget to bring a sturdy bag for your goodies and to wear comfortable walking shoes!
Do you know of anyone looking to relocate to downtown Madison? We, at “Madison’s Relocation Specialists” focus on just that….relocation to the greater Madison area! Check out our website for more details: www.RelocationMadison.net.
FHA Loans: The Next Housing Bubble to Blow?
Blog Note: This could be a big issue in the very near future….let’s keep our fingers crossed that we stay ahead of this! If you need a referral to refinance your current mortgage, please contact me at info@relocationmadison.net and “Madison’s Relocation Specialists” can connect you with a local, reputable lender!
As private mortgage lending all but dried up over the past year, the federal government swooped in and repositioned the Federal Housing Administration’s (FHA) insured-mortgage program to pick up a lot of slack. For those who aren’t familiar, the FHA program allows folks with middling credit scores and little down payment to qualify for a loan. However, borrowers must pay an upfront mortgage insurance fee of about 1.5% of the loan amount as well as an ongoing fee of 0.5%.
Over the past year more than one-third of new mortgages are FHA-insured loans, compared to less than 3% at the peak of the real estate bubble. Moreover, in recent Senate testimony the inspector general for Housing and Urban Development said FHA-insured mortgages accounted for about 70% of loan biz in the first quarter. One of the big drivers of the increased FHA presence is the move that raised FHA-insured loan limits to as high as $729,750 in certain high cost markets. That made the program a viable option for plenty more borrowers.
But rather than a glowing example of how the federal government can step in and boost an ailing financial market, there’s growing concern that the massive role taken by FHA to buoy the ailing mortgage market, could in fact lead to yet another taxpayer bailout.
It turns out that a whole lot of borrowers getting FHA-insured loans can’t make the payments. At the end of February about 7.5% of FHA loans were “seriously delinquent;” up from 6.2% a year ago. (Seriously delinquent = 90 or more days overdue.) Not surprisingly, the reserve fund FHA keeps handy to cover bad loans has been seriously eaten into over the past year: it is down to about $13 billion today, compared to $21 billion a year ago.
This past Thursday, HUD inspector general Kenneth Donohue conceded that the trend is not encouraging. Asked about the prospect of a taxpayer bailout, Donohue sidestepped making a prediction but did say: “Based on the numbers we’re seeing, I think it’s going in the wrong direction,” he said.
And it’s not too hard to see why. In theory-and in practice for many years-the FHA program helps folks who wouldn’t otherwise be able to afford a home, make the purchase. But the very structure of FHA-insured loans makes them a potential landmine in a economy where job security and home values are sinking. You can have a crappy credit score of just 600 or so and qualify for an FHA-insured loan at the same low interest rate that private lenders typically reserve for borrowers packing 740+ scores. And you need only a 3.5% down payment for an FHA-insured loan.
While that’s slightly more than the zero-down loans pushed by sub-prime lenders during the bubble, it’s nowhere near the 10%-20% private lenders are now requiring as insurance that borrowers have enough skin in the game to stay in the game amid declining home values. Add in the fact that the new higher loan limits make FHA-backed loans a suddenly viable option in many pricier regions and you’ve got yourself a potentially toxic brew. And as we all know, when it comes to toxic assets, it’s the taxpayer who ends up paying.
* Source: CNNMoney.com
Madison named as a Bicycle Friendly Campus!
Do we really need any further reason to love Madison even more?? I guess being named as a ‘Bicycle Friendly Campus‘ will do!
League of American Bicyclists just named UW-Madison a Silver Award Winner in it’s Bicycle Friend Business Program. Bicycle Friendly Businesses are corporations, organizations and nonprofit groups that weave bicycling into their business culture and encourage their employees and constituencies to be active in cycling.
UW-Madison offers a strong network of bicycle and pedestrian routes, and is continuously adding new connections. Most recently, construction of the Campus Drive Pedestrian and Bicycle Path, complete with solar-powered lighting, was completed.
Bicycling is a strong component of the university’s alternative transportation program, UW Commuter Solutions. That program emphasizes the university’s mission to make walking, biking, taking the bus or van- or car-pooling attractive transportation options for students, faculty and staff at the university.
If you’d like to purchase, sell, or relocate to the Greater Madison area, I’d be happy to help! Check out my website at: www.RelocationMadison.net or contact me at vmurray@kw.com. Thanks!
March 30, 2009
$8000 First-Time Homebuyer Tax Credit
A lot of people are not taking advantage of one of the best items to come out of the American Reinvestment & Recovery Act of 2009…the $8000 tax credit available to first-time homebuyers.
The details are simple. If you’ve never bought a home, you qualify for the credit. If you haven’t bought or owned a home in the past 3 years, you qualify for the credit. And the best part? YOU DON”T HAVE TO PAY IT BACK!
Simply buy a principal residence between January 1, 2009 and before December 1, 2009, and you can claim the credit on your tax return to reduce the purchaser’s income tax liability. Now, why wouldn’t you want to take free money from the government?
The National Association of REALTORS® has created a printable version of the ‘Frequently Asked Questions’ on the First-Time Homebuyer Tax Credit.
If you’d like to hear an audio version of the tax credit explained, click here to hear Wisconsin Realtors Association President Bill Malkasian outline it for you in simple, concise terms.
I am ready, willing, and able to help you take advantage of this great benefit, so contact me today at (608) 628-2940 or vmurray@kw.com to get started buying your first home!
Website launched to help consumers understand loan modification programs…
Housing & Urban Development (HUD) and the Treasury Department have launched a new Web site designed to help consumers understand the administration’s loan modification and refinance programs. The site is MakingHomeAffordable.gov.
Many homeowners pay their mortgages on time, but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home. Other homeowners are struggling to make their monthly payments perhaps because of their interest rate has increased or they have less income. Under the administration’s program, both types of borrowers may be able to receive assistance.
This website offers a number of tools to help borrowers determine if they’re eligible to participate in the program. If you need assistance with paying your mortgage, it only takes a few minutes to see if one of these loan programs might work for you!
Victoria Murray | Keller Williams Realty 