We all know the social benefits of owning a home. Homeownership gives family stability, creates lower high school dropout rates, and of course gives the opportunity to create meaningful and lasting relationships.

In addition to these great pluses, owning a home can be your largest financial asset.

First, you’ll have access to homeowner tax breaks, which include the mortgage interest deduction (MID), property tax deduction, and credits for green-friendly updates to your home.

What all of these deductions mean is you can save money on your taxes each year. That’s money back in your pocket. Additionally, the eco updates you do will save you money in the long run on operating costs of the house. Some of these great updates can include energy efficient windows and doors, and solar panels.

You may have heard that real estate is a good investment. You may also be wondering if that is still true when home values are declining. The truth is that real estate has always been a good “long-term” investment.

The fact that many people were making bank by buying and selling real estate in the mid-2000′s was more of a fluke than the norm. Twenty to fifty percent appreciation rates are not the norm. In general, during healthy economic times, appreciation averages four to six percent. The National Association of Realtors (NAR) reports that from 1972 to 2005 appreciation averaged 6.5 percent.

Today’s home prices are still declining, but financial experts predict this will abate in the next year or so and yearly appreciation rates will return.

As you begin to see appreciation, you’ll start to earn equity. This is one of the biggest advantages homeownership has over renting. Renting means paying money to the landlord. Once that rent check is written that money is gone. As you pay your monthly mortgage payment you’re building equity. You will one day soon owe less than the home is worth. The difference in between is equity.

Homeownership also gives you a certain financial freedom and stability. You can take out a home equity loan for improvements or if you need some cash. You can sell your home down the road and use those profits towards retirement, a dream home, or even a dream vacation.

Homeownership is a great way to introduce long term stability to your life, even in uncertain economic times. Today’s historically low interest rates and low prices mean now is a great time to make an investment in your future.

May 9, 2012 — Realty Times Feature Article by Carla Hill

It seems when it comes to home values, a little elbow grease can go a long way, according to a recent nationwide study by HomeGain. The study surveyed 500 real estate agents throughout the nation to learn the top 10 low-cost, do-it-yourself improvements that help increase the likelihood a home would sell.

Ranking in the top five are: clean & de-clutter, lighten & brighten, repair electrical & plumbing, landscaping, and home staging. But how much benefit can you really expect to get from each of these home improvement categories?

According to the study, the top home improvement (since 2003) continues to be to clean and de-clutter your home. It may cost you about $400 to make the most of this home improvement but sellers who make the financial commitment can benefit by seeing a “returning value of just over $2,000 to the home’s sale price”. That’s a 403 percent return on investment (ROI).

Coming in at the number two spot is lightening and brightening your home. This makes perfect sense. If a home is dark and difficult to view, many buyers won’t spend even minutes in it. Buyers want to be able to explore the home, seeing every detail. Also, homes that are dark often convey a dreary tone and may give buyers the suspicion that there may be hidden damages in the home.

Interestingly, home staging fell to the number five spot. In the 2011, study it ranked third. However, for this year, do-it-yourself tasks such as repairing electrical and plumbing issues, and maintaining landscape, ranked higher, respectively.

“In a buyer’s market, sellers need to dress their homes for success before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain.

It could be a sign of the times, that do-it-yourself home improvement projects are creating greater ROI. With many homes falling into foreclosure or being put on the market as a short sale, there is lots of inventory that is lacking a little tender loving care.

Sellers who are listing their home on the market should take a close look at the competition and then, as I’ve written in previous columns, see their home through the eyes of a potential buyer. In other words, check out its flaws and fix those issues.

Remember, buyers don’t have a history with your home. They’re not necessarily attached and willing to overlook the downside of your property.

Create a do-it-yourself task list and target those areas that need some work. Then bring in the experts to do the maintenance and repairs that need professional care. Investing a little more into increasing the potential sale of your home can mean not only more money but also a faster sale.

Rounding out the top 10 on the HomeGain.com National Home Improvements study are, shampoo or replace carpets, repair floors, paint interior walls, update kitchen & bathroom, and paint the exterior of the home.

April 27, 2012 — Realty Times Feature Article by Phoebe Chongchua

Shopping for a home is an exciting experience but there are many things to consider, starting with the fundamental question: which housing style is right for you?

You might be thinking, I want to own my own home which translates in your mind to a single- or double- story house. However, your finances, where you live, affordability, and practicality may factor in and cause you to consider other options. So let’s explore some of them.

Single-Family Housing:

When many people think of owning their own house, the single-family residence first comes to mind. This type of home is the most independent. The walls are typically not joined together with any other homes. The heating and plumbing systems are separate. And, while, the house may be in a planned community that has covenants, conditions, and restrictions (CC&Rs) regarding what you can do to your home on the outside, there is generally the most freedom with this type of home. Some of these homes have additional fees (Mello-Roos fee) to pay for schools in the area.

These residences are usually detached houses and have land surrounding them unless, it’s a zero-lot-line house. Then the house sits on or very close to the property line. These houses are packed into areas and may offer extra space inside but at the compromise for little land outside.

Row houses are often situated this way. However, while the single-family home can have a little different look, the row houses are generally identical and lined up side-by-side, thus the term: row houses.
Sometimes there is a small backyard area behind the row house. The row houses also usually share a wall or two with the other houses. This also makes them more affordable than the detached, single-family house.

The Duplex:

This type of house shares a roof and one wall but the other side is separate from other homes. You can also choose from triplexes and quadruplexes. Some buyers decide to go for this style of housing because they can live in one of the units and rent out the others to help pay for their mortgage. This allows them to save to and, later, if they choose, to purchase another home and rent out all of the units.

Townhouse:

This style of house shares a wall and common areas such as parking lots, and walkways.

Condominiums: 

These units often look a lot like apartments. In fact, some apartments have been part of a condominium conversion. The individual unit is owned by a homeowner. Often the homeowner purchases the unit and rents it out. Homeowners have an ownership interest in the common elements which can include halls, stairways, elevators, parking lots, open areas, and other amenities.

As with townhouses and even single-family homes that are in planned communities, there is a fee for the care of the common areas.

The Microhouse:

They may be small as the name states but they can be plenty big especially for those who are living alone or traveling frequently and simply want an easy-to-care-for home.

These micro or mini houses can be just a few hundred square feet to a thousand. Often they are vertically built and they have more living space by the use of lofts and smaller- than-usual furniture and appliances. Some have unique features such as a deck on the roof.

So whether you’re shopping for a single-family, detached home or a minihouse, having a basic understanding about what you can expect with each housing style is an optimal way to begin your search. Then let your experienced real estate agent guide you to the suitable options that can best meet your specific needs.

April 26, 2012 — Realty Times Feature Article by Phoebe Chongchua

Who can afford a house cleaner?

Instead, more than six in ten households still make spring cleaning an annual ritual, focusing primarily on the most used living areas – kitchens, bedrooms and baths.

The American Cleaning Institute (who else) surveyed 1,000 people online from Feb. 29 to March 4 this year and found spring cleaning is a keeper.

Nearly three in four of those who spring clean agree it’s a tradition worth keeping. For 13 percent of this group (18 percent of men, 8 percent of women), if it wasn’t for spring cleaning, the house would be a pig pen.

“Whether it’s spring, summer, winter or fall, cleaning matters,” said Nancy Bock, senior vice president at ACI (formerly the Soap and Detergent Association).

“When it comes to tackling major house cleaning, there are still many Americans who cling to spring,” rhymed Bock.

Grime stoppers’ triggers

Among those who say they spring clean every year:

• Nearly 90 percent say they will spring clean this year.
• More than 70 percent say warmer weather gives them the urge to purge the dirt.
• For 55 percent, hearing about spring cleaning triggers their impulse to repulse grime.

Focused cleaning

Spring cleaners say they are most apt to tackle these specific cleaning jobs:

• Windows (72 percent); blinds/curtains (67 percent); ceiling fans and carpets (both 65 percent) top the special spring cleaning “to do” list, followed by cleaning clothing closets and drawers (63 percent) and desks/home office spaces (51 percent).
• Room-by-room spring cleaners are most apt to visit these rooms:
• Kitchen (74 percent); bedroom (73 percent); bathrooms (71 percent); and family room/den (56 percent).

Clean up on cleaning up

ACI offers some strategies to take care of your spring cleaning tasks efficiently:

• Clearing spaces – Begin by tossing all that stuff that’s needlessly filling up your home. Recycle it, store it, sell it or donate it. If it’s been unused for six months or more and isn’t a keepsake, you don’t need it.
• Take stock – Before you start cleaning, gather all the necessary cleaning supplies on hand.
• Plan ahead – Decide if you will go room to room or job by job cleaning. Then prioritize the tasks.
• Involve the family, friends if they’ll bite – You don’t have to go it alone. Enlist family members, friends, call in a marker, or, if you’ve got the clean green, hire a professional house cleaner.

April 19, 2012 — Realty Times Feature Article by Broderick Perkins

According to the National Association of Realtors’ 2012 Investment and Vacation Home Buyers Survey, there was a surge in sales of both investment and vacation homes in 2011. 

NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Yun said the shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market.

Increased investor purchases are partly responsible for the large percentage of all-cash purchases seen in the last year. They make up around one-third of all purchases. Forty-nine percent of investors paid cash in 2011.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Yun said. Of the buyers who didn’t use all cash they paid a hefty average 27 percent downpayment.

As opposed to investment purchases, which were made out of the desire for rental income, vacation homes were driven by lifestyle factors and were purchased by households making an average of $88,000 a year.

What portion of the market are these vacation sales? They accounted for 11 percent of all sales in the market.

Overall mortgage applications increased 4.8 percent from last week, according to the Mortgage Bankers Association (MBA). The refinance share of the market decreased again to 71.2 percent. Just a few months back it was over 80 percent.

“Applications to buy a home picked up last week, and are running more than two percent above the level reported at this time last year. Home purchase applications for conventional loans are now about 10 percent above last year’s level,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Applications for government loans increased by more than 10 percent over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April.”


April 9, 2012 — Realty Times Feature Article by Carla Hill   

Prudential Arizona Properties has opened their beautiful new office catering to the Gilbert/Mesa Area.
With our strong ties to Canadian and Global Markets, we are excited
to bring our vast resources to the East Valley.

From noisy neighbors and adolescent garage bands to urban living spaces it can be hard to find some peace and quiet.

Aside from relying on city and HOA ordinance enforcement, a strong hand with teenagers, or complaining to the noisy party, it can be tough to find a solution to a noisy space.

Enter QuietFiber® noise absorbing material. This versatile material is a solid way to address sound issues and can be installed as an easy do-it-yourself project. According to the makers of this revolutionary product, “QuietFiber is the only sound dampening product on the market that can be custom tailored to create a complimentary design element in any space. You have the sound abatement properties you need, in a product that can be completely hidden under a tapestry or in strategic spots throughout the room, or disguised as an artistic element within the space.”

When complaints from neighbors began to trickle in for club owner Bobbie Rahmani in Los Angeles, California, he knew he had to find a way to deaden the noise and relieve his stressed out neighbors. He also wanted a solution that looked as good as it worked.

“We haven’t had any complaints since we hung the panels, and no news is always good news,” Rahmani said of the noise deadening qualities of the Quiet Fiber treatments.

This versatile material is a solid way to address sound issues and can be installed as an easy do-it-yourself project. High sound absorbency QuietFiber is a two-inch thick DIY interior noise solution that can be cut to fit and simply hot glued underneath a bar, cabinets, countertops, tables, chairs, behind a wall tapestry or curtains. Slide a QuietFiber “pillow” on top of cabinets, or anywhere else that reverberant noise and echo is a problem. Easily cut to size with a serrated knife, Quiet Fiber can be concealed almost anywhere.

This product can be the solution for walls and ceilings. Plus, as an added bonus it is fire-rated for floor, 100-percent recyclable, and 100-percent USA made.

Are you looking for solutions in your new construction? Consider using this solution in walls between studs and under drywall. Existing-homes can benefit as well. That’s what the makers of this new product are counting on!

April 3, 2012 — Realty Times Feature Article by Carla Hill

Colors have the power to change your mood and your outlook on life! Keep reading to find out how to color your home happy.

Over the years researches have attempted to understand and harness the true power of color in the home and workplace. Their findings have filtered their way into everything from popular wall color to throw pillows and furniture.

Our world is about visual experiences. We see displays at department stores and are drawn to items. We even buy items simply out of impulse because we like the way they look!

We use color to elicit moods in all sorts of social situations. A red cocktail dress can mean excitement and fun. A black gown can be somber or elegant. A beige room with neutral accents can create peace and calm.

When it comes to our homes it’s too easy to play it safe or worse yet too easy to pick the wrong color for the wrong mood.

First, when it comes to design avoid competing patterns or colors. If your happy color is on the walls then be sure your rugs and furniture are happily neutral. Pick one focal point and play the room around it.

The queen of mood-lifting paint colors of course starts with yellow. It’s charming, fun, and oh-so welcoming. Soft yellows can still be classic and relaxing, perfect for traditional decor, all while adding a touch of whimsy to your room. A soft buttercream or daffodil color is a great accent color for kitchens and baths, where you want spaces to appear light, bright, and clean.

If you are wanting to be really, really happy then consider turning up the volume on your yellow and going canary. Pick one accent wall and then accessorize with modern, clean-lined accents. Not bold enough to paint the walls yellow? Then incorporate yellow accents (pillow, throws, frames, and vases) throughout the space.

Pink is another cheerful hue that can work well with youthful spaces. Soft, baby pinks are wonderful for nursery spaces. Bolder, more claret rose color tints can be used in living rooms and outdoor spaces. This color trend can be a beautiful accent for Moroccan designs. Match up your pink with crisp, white molding or a fantastic area rug of muted colors.

The third color for a happy room is apricot. This sun-drenched color is the tasteful way to use orange. Apricot has a delightful way of reminding homeowners of summer days and of beautiful sunrises, both happy occasions!

Yellow, rose, and apricot. What wonderful ways to bring happiness to your home!

March 29, 2012 — Realty Times Feature Article by Carla Hill

This just in from the Paint Quality Institute: you can paint “maintenance-free” building materials.

The same people who gave us a paint primer on using colors to manipulate moods and insight on slathering on acrylics to add action to seasonal decor also offers tips for painting materials that could do just fine without an extra coat.

Why?

Why not?

Perhaps blue has your bored, yellow isn’t so sunny after all or white is just too, well, white.

Whether it’s to spruce up the appearance or provide an extra layer of protection against a forecast for stormy weather you can paint vinyl siding, composite decking, fiberglass trim, factory-finished aluminum and other materials designed to hold up with little more than regular cleaning.

“Most of the time, you can paint these materials,” says Debbie Zimmer, paint and color expert at the Paint Quality Institute.

“But it’s important that you follow the right procedures when doing so,” Zimmer added.

Just as you would prepare for any paint job, the first step is to make any necessary repairs.

Then, scrub clean and fully rinse the surface before applying any coating, says Zimmer.

You must also remove any mold or mildew with a water/bleach solution that’s three parts water to one part bleach and, again, thoroughly rinse the surface with lots of water.

One more step before painting – apply a fresh top coat of quality acrylic latex primer — especially on maintenance-free materials. A primer will give the paint a better grip on the surface and the final job will have more uniform color and greater sheen.

The paint should be a quality 100 percent acrylic latex paint for virtually any type of exterior painting. That’s especially true when painting maintenance free surfaces. Maintenance-free materials typically are very smooth and slick.

“Top quality 100 percent acrylic latex paint produces a very durable paint film, and it has very consistent color and gloss,” says Zimmer.

“By applying this type of paint, the surface will look great, and it will stay that way for years to come,” she added.

The tools you use to prime and paint are just as important as the primer and paint. Use quality brushes and rollers to slather on thicker, more protective layers of the coatings and get the best possible appearance from the paint job.

Avoid doing the work on days that are too hot, cold, humid or windy. Chose moderate weather. Climatic extremes can have an adverse effect on paint as it dries and cures and compromise the integrity of the finished job.

Paint cans typically come with temperature guidelines to help you choose the best day to get to work.

The Paint Quality Institute offers a host of detailed, step-by-step painting times for work on interior or exterior surfaces.

February 23, 2012 — Realty Times Feature Article by Broderick Perkins