Would you like to be a little more GREEN friendly? I know in this hectic and busy life there isn’t always a lot of time to think about whether or not we are being environmentally friendly but here are 5 easy things to do to help conserve the planet’s resources.
1. Re-use rather than buy: If something works but is showing a little wear just try to get another year out of it rather than pitching it and purchasing new. It will save you money and reduce the excess clutter.
2. Check labels on the products you buy and see what they contain. No one knows what all the ingredients are on those tiny label prints but look for words like NON-TOXIC, BIODEGRADABLE and PETROLEUM FREE and purchase those when possible.
3. Use the crock pot instead of the stove. Your stove uses about 2.0 Kwh an hour while the slow cooking crock pot only uses about .70 Kwh . This saves energy and can have you a nice meal ready when you get home in the evening.
4. Use smart strips: Plug your electrical cords into smart strips that automatically shut off after a period of non usage. This will save energy and money for you.
5. Recycle! Make sure those empty pop cans and bottles, plastic laundry detergent bottles and paper products go in the recycle container instead of the trash and you will be helping the world of the future be cleaner for your kids.
On a weekly basis, I am currently receiving solicitations from lenders offering me a 2.5-3.5% interest rate if I refinance my house. Actually my wife keeps getting that mail and I just get the College tuition bills for my 3 daughters but that’s another story. Anyway these ridiculously low rates made me think of what a unique time it is in the mortgage and home buying industry.
When I entered real estate in 1986 the interest rates were 11.5%. AND THOSE WERE CONSIDERED GOOD RATES! Just a few years before the market was stymied with 16-18% interest rates. Think about that for a second. Borrowing $50,000 today at 2.5% for 30 years costs a buyer about $200 a month. In 1982 at a rate of 18% the same $50,000 mortgage would cost a buyer $750 a month for 30 years. That is a crazy difference.
Home prices are lower today than they were 10 years ago. But that is not the best reason to buy a home now. The best reason is because interest rates are at a once- in-a-lifetime low right now and they will not stay this low for long. Many younger buyers in our market today have never known interest rates over 5% but believe me that is not the norm. These are strange times we are experiencing and the low rates will not last forever. Now is the time to take advantage and save tens of thousands of dollars over the life of your loan.
So far the 2012 real estate market has been a lot more like the chocolaty bliss of Valentines Day then it has the shadowy gloom of the day of the Groundhog! Whether it has been the relatively mild Winter we are experiencing, the upbeat expectations of an election year or just an uptick in the economy, for some reason 2012 is starting off with a bang.
There is always a chance that with a mild Winter comes early real estate business and it will level off by being slower than usual in the Spring. That can happen if eager home hunters get a jump start on the market in late Winter but inevitably that thins the ranks of buyers in March and April. Considering the recent state of the industry I would question whether that is happening. Interest rates have been good for so long and the market has been somewhat slowed for a long enough time to make me wonder if some good January weather would really make a difference.
A likely reason for the strong showing so far in 2012 is that people are getting use to the current financial climate, they are looking on the bright side rather than wallowing in the gloom and doom of economic forecasters, and they are anticipating improvements that usually appear in major election years.
Whatever the reason for the great early turnout of buyers in 2012, it is the best Winter activity we have seen in years and we will gladly take it!
About this time every year, the question is brought up by sellers throughout Northeast Indiana: “Do listings really sell in the Winter?” “Should we wait until spring to list?” “Should we take our home off the market until April?” All are good questions and we have some good answers for you.
1) While its true that fewer buyers are looking in the Winter months, the ones who are looking are usually serious buyers. Unlike Summer months when lookers often browse homes just for the opportunity to get ideas about decorating or perhaps to see if a perfect home is out there for them, in the Winter only serious buyers who need to buy are traipsing around in the snow and cold. If they are looking in frigged conditions, they want to buy and a seller doesn’t have to worry about some curious looker with no real intention to buy, wasting their time with a showing in Winter.
2) There is a lot less competition out there when you have your home listed in Winter. Since most sellers prefer to wait until Spring to list, usually inventory is way down during the Winter months. That means there is a far greater chance that a serious buyer will consider your home since they don’t have time to wait until Spring for inventory to pick up. If you really want to up your odds of selling, list when there is no competition rather than waiting until everyone else is listing their home.
3) Don’t worry that there are a lot less buyers out in the Winter. It only takes one to get your home sold. I have often seen a home sit with no showings in December and January and then early February rolls around and the seller finally gets a showing and the looker buys it! Again with less inventory to choose from, they buy when the need to move is there so even though the seller thought all seemed slow, all it took was that one buyer looking at the right time and Boom! The home was sold.
Of course there are reasons to take the home off the market for Winter and there are also valid reasons for waiting until the flowers are in bloom and leaves on the trees before listing in Spring but often, Winter selling works just fine for sellers so don’t lose heart just because the snow starts to fall. It may just be the perfect time to sell your home after all!
Based on the Fort Wayne Area MLS numbers for Whitley County, the demand for housing in the Whitley County, Indiana area is catching up with the supply. This can be a good thing for home sellers as they are seeing a drop in the amount of time it takes to sell their home but should not be considered a sign that housing prices have turned the corner yet.
Based on statistics compiled over the last year, Whitley County is seeing it’s housing supply fall in many price ranges. Most glaringly in the most popular price range of $100,000 to $119,900 where November statistics show a current 4.3 month supply of homes in that range compared to a 6.1 month supply in that same range just three months ago. Overall there is less than a 10 month supply of homes in all price ranges under $225,000 for the first time since 2007.
How will this shake up in the supply and demand affect the overall sales market? Hard to say. Other economic factors have more impact on housing prices such as unemployment, wages, etc but at least for now the inventory levels are starting to level out with the demand for inventory and that has to be seen as a positive sign in our current economic situation.
Over the last 6 or 7 years a lot of real estate professionals have dropped out of the business across the USA. Fewer new agents have entered the business and those who have stayed often find the new technologies required in the business world to be overwhelming so they are contemplating retirement. With so much upheaval in the industry the door is standing wide open for a new type of agent to emerge. Applications for the real estate agent of the future are now being taken.
So what will the next generation of real estate agent look like? Here is a short list of characteristics:
1) Hi-Tech. The new super agent will need the tech skills to carry his/her office in his phone. Be able to access information is a split second. Be reachable through numerous communication methods instantly. Respond in a heartbeat to electronic mail, texts, social media messages, and yes even voice messages. Offers and listings will be drafted and communicated quickly through on-line forms. Property searches and scheduling showings will be done quickly on a smart phone. All these skills are required right now in an agent but the key is how much more will technology change in the coming years and can the agent quickly adopt to whatever new technologies emerge in the future?
2) While being high tech and moving at the speed of light, the new agent will also be required to follow up well with clients. Often we find that the hi-tech agent moves faster than other agents but does not take the time to build relationships with clients and does not follow up well. This may allow for early success in the industry but will not promote long-term staying power. It is essential that the new agent be sharp on technology yet a good counselor with a strong bedside manner while working with people and building trust. It is still a people business and always will be about people and not houses.
3) Finally, the new agent will have to be motivated. Sometimes people with great people skills don’t move fast enough to keep up with the fast paced, high tech business world we are seeing develop. Other times we see agents with the tech skills that never leave the comfort of their phone screen long enough to talk to people person to person. The new agent will need to blend new tech skills with people skills and take the time to learn the time tested business fundamentals of a real estate professional in order to be a well-rounded real estate agent.
The truth is that the agent of the future is here now. But there is plenty of room for more. In a time when jobs are scarce and many people are looking for work, those who match the skills described above may find a real estate career very attractive.
There is always one constant when it comes to housing. Everybody needs a place to live. There are no exceptions. Even though the economy is not as strong as it was 10-15 years ago the need for housing is still the same; 100%! So the real question is not whether or not it is time to get a home but rather is it time to buy or is renting a better option?
Without doubt our current economy is facing challenges and that includes the real estate industry but pushing all problems aside there are still some rather obvious reasons it is a good time to own a home:
1) There are still great options for low down payment loans like USDA, FHA and VA mortgages so even if you have little up front cash, buying may still require no more than a rental deposit.
2) Interest rates are low and cannot stay low forever so if you want to take advantage of low cost mortgage money, now is a great time.
3) Home prices are the lowest in years in most areas of the country so you can get more house for your money right now.
4) There are still great advantages to deducting mortgage interest on your taxes. It could save you thousands!
5) You have to live somewhere so why not own your own home rather than paying for someone else’s?
All the rain and storms across the country may soon have a negative impact on food prices. Farmers are facing major crop loss and the food shortages will likely lead to higher food costs in the coming months. With many people already facing foreclosure on their homes due to too much expense and not enough income, higher food prices are the last thing they need. Now is the time to prepare so you can still make those mortgage payments when grocery prices start to skyrocket.
Perhaps the best way to make sure you can live within your budget in the wake of higher food prices is too start purchasing extra food now with a long shelf like. Foods that are canned including vegetables, fruits, soups, and even canned meat often have an expiration label two or three years down the road. Some snack items like canned potato chips or cookies also have a couple of year’s shelf life. Juices in cans may have a longer shelf life as well. Purchasing a few extra items each week with an expiration of 2013 or beyond may help you to plan ahead so you will not be as strapped if food prices double in the next year.
It would be a good idea to get a two or three month supply of long term foods in the pantry so you will be able to ration and budget when the effects of the severe weather hit your local grocery store. Look for sale items that will allow you to buy large quantities of canned foods at discount prices and you will be able to meet those mortgage payments with the food savings you will have. And remember….check those expiration labels!!!
Perhaps the biggest concern when pricing your home in today’s market is making sure their are a suitable number of comparable sales to justify your price. It is a big part of your agent’s job to find these comparable homes and the available data should be seriously considered by sellers before putting a final price on the home. Why is this so important? Lets look at a few reasons.
1. Lenders are now requiring that appraisers only use comparable sales that are 3 months old or less. That means if your neighbor’s home is just like yours and sold 6 months ago the appraiser cannot consider it’s sales price when pricing your home. In fact, if your closest comparable sale over the last 3 months was 10 miles away an appraiser would have to use that home rather than your neighbor’s home that sold 6 months ago. This seems silly but it is the way the industry is working right now.
2. Due to the fact that fewer homes have been selling over the last 2-3 years, and many of the ones that did sell were foreclosed homes and distress sales, the overall values of homes have been in mild decline and therefore many appraisals have been getting cut. (Getting cut means that even though the home may have received an offer of $100,000 for example, the appraiser is saying it’s only worth $97,000 so the bank will only loan on that lower amount.)
3. The appraisal has now actually surpassed the home inspection as the biggest hurdle to closing a property after an offer has been secured. While in the past it has usually been considered a “slam dunk” to get the appraisal to pass in an appreciating market, it is now common for real estate agents to see their closings delayed or even killed completely by an appraisal that has gone bad.
Now don’t get me wrong, the appraisal process is very important and it is in the buyer’s best interest to make sure they are not overpaying for a home. But in the past it was often common for a seller to price a home higher than their agent suggested hoping they would get top dollar and sometimes the buyer would pay the higher amount. In our current market that is not a wise way to do business. It is far more important right now to have solid comparable sales data updated monthly so a seller and buyer will not find their home sale sabotaged by the appraising process.
