REAL ESTATE
San Luis Valley
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2015
Wednesday, February 18, 2015
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Real Estate Progress
Wednesday, February 18, 2015
Self-help housing the way to go for many
ALAMOSA — For many families in need of nice homes, it’s a “can” do situation for Habitat for Humanity. Michelle Herrera, a dental assistant for Valley-Wide Health Systems, is the latest Habitat for Humanity homeowner. The mother of three is excited to provide a nice, new home for her children. She thanks the Habitat for Humanity staff, volunteers and everyone who has given time, effort and donations towards this cause. One of the contributions made by many is collection of aluminum cans, deposited at any of the collection sites around the Valley. The Habitat Store, another fundraiser, is waging a capital campaign to purchase and renovate the building that houses the store on Main Street in Alamosa. The store serves an important role through recycling, reusing and repurposing home improvement materials, including doors, windows, electrical, plumbing supplies and more - keeping items out of the landfills. Staff and volunteers keep the store running, sales taxes support the community and profits serve more families and build more Habitat Homes. Goal! Goal! Goal! Helping with the goal of home ownership, the Adams State University soccer team recently pitched in to work on self-help homes under construction. Team members worked with Community Resources and Housing Development Corporation (CRHDC) construction staff as a part of ASU Cares Day. The players assisted with caulking and insulation of homes that are currently under construction. The work the students did helped busy families to ensure that their homes were adequately prepared for the approaching winter CRHDC’s Self Help Housing programs aid dozens of families each year build their own homes. The program was developed decades ago in an effort to avoid costly down payments for clients, with the trade-off of ‘sweat equity’ instead. Participants are able to customize their homes, choosing from a selection of floor plans, landscaping options and color schemes.
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Husband and wife teams work to erect the walls of a self-help home, garnering a sense of community, as well as a new home. Groups of five or more families or individuals build together, creating a sense of community in the subdivision. An unprecedented nine families broke ground in November 2014, while (CRHDC) finished their fastest group of self-help homes to date. CRHDC has been an active part of the Colorado housing system for the past forty years, and has built more than 1,600 homes in 30 different counties through their mutual self-help program, which allows new homebuyers to take an active role in the construction of their own homes. By allowing the substitution of sweat equity
for a portion of the funds, homebuyers are able to be there from the beginning to completion of their homes. By taking part in the construction, they also develop the skills necessary to maintain them in the future. Each family contributes a minimum of 30 hours of labor per week toward the homes. This process of including the homebuyers in the construction is considered “sweat equity” and not only counts as a down payment on the home, but also reduces its price. When constructing these homes, CRHDC uses local subcontractors to provide skilled construction services such as work with the
foundation, electrical, plumbing, carpet and drywall. CRHDC also buys most of the building supplies from the local companies. CRHDC’s mutual self-help program provides stable foundations for families, neighborhoods, and communities. The organization uses innovative approaches in providing sustainable and affordable housing, life-skills, and economic development opportunities to benefit low- to moderate-income households through property development, financing, education, partnership, and technical assistance. For more information, call 589-1680.
New law helps those in danger of losing homes BY TERESA L. BENNS
SAN LUIS VALLEY — Thanks to a new law passed last year (HB 14-1295), those facing foreclosure now have alternatives they can explore that will stop the foreclosure process as long as they are involved in a loan modification or other program. The law also provides homeowners with a single point of contact during their foreclosure, rather than dealing with several different agencies at once. HB 14-1295 applies to single family, as well as multi-family dwellings and those classified as primary residences. Some smaller loans servicers and those who comply with Federal Consumer Financial Protection Bureau (CFPB) rules are exempt from the main provisions of the law. The no dual tracking clause in the law means that the lender or servicer cannot continue to pursue a foreclosure as long as the one responsible for the mortgage participates in a loan modification program. In the past, homeowners
could still lose their homes even if a modification plan agreement was in place. But to stop the dual tracking, homeowners must officially petition the public trustee to stop the sale of their home at least 14 days prior to the scheduled sale. They must provide the paperwork from the loan servicer proving that at least 37 days before the assigned sale date, the servicer received a complete loss mitigation application from the homeowner (which the servicer is obligated to provide under then new law) and the homeowner has complied with that agreement. If the public trustee receives this notification in timely fashion, the sale will be postponed and the servicer will cancel the foreclosure. But if a homeowner notifies the public trustee that s/he has complied with a litigation plan and the servicer is still dual tracking, it is up to the trustee whether to proceed with the sale or not. The trustee will rely on what the servicer says to make this decision. It is up to the homeowner to contact an at-
torney and proceed legally to stop the sale if a servicer misinforms the trustee. Prior to the passage of the new law, the homeowner often had to deal with several different agencies and explain their situation repeatedly to each one during the foreclosure process. Now the servicer must provide a single point of contact by no more than 45 days into the loan delinquency. The contact must then provide the homeowner with: • Loss mitigation options available to them • What the homeowner must do to access these options • The current status of any loss mitigation application already filed • Those loss mitigation application deadlines which apply to the homeowner and • Steps the homeowner must take to appeal any loss mitigation application that has been denied. Attorney General’s office complaints Those who feel that a lender or servicer has
violated any of the provisions of the new law can file a complaint with the attorney general’s office, the Federal Consumer Financial Protection Bureau, or both. This, however, will not stop the foreclosure. Homeowners also are advised to immediately contact a foreclosure attorney. The Denver Business Journal reports that in 2014, Colorado Attorney General John Suthers filed eight separate lawsuits against foreclosure attorneys who abused the foreclosure process for their own profit. Five of these lawsuits have resulted in settlements totaling nearly $12 million. Suthers accused the firms of inflating foreclosure costs to homeowners and other individuals, violating the Colorado Consumer Protection Act and the Colorado Fair Debt Collection Practices Act. For more information on how to stop a foreclosure, visit http://www.nolo.com/ legal-encyclopedia/new-colorado-law-helpshomeowners-foreclosure.html
Wednesday, February 18, 2015
Real Estate Progress
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Colorado housing prices increasing COLORADO— During the fourth quarter of 2014, housing prices statewide continued to move upward and sales improved in some areas and for certain categories of homes compared to the final quarter of 2013 according to the Colorado Association of REALTORS®. At the same time, in most places housing inventory continued to be a challenge, frustrating buyers with bidding wars and the need to make quick offers in order to have a chance at the properties they sought. The southwest region of the state enjoyed a third consecutive year in which new listings of single-family homes increased – from 3326 in 2012 to 3710 in 2013, ending at 3885 in 2014 a 17 percent increase over those three years. Condominiums and townhouses followed a similar pattern. These trends make the southwest region somewhat unique in the state. Prices rose during the final quarter of 2014. The median price for a single-family home reached $245,000, up nine percent compared to the final quarter of 2013. For townhouses and condominiums, the price increase over the same time period was 11 percent to $233,750. Sales were also strong year to year and quarter to quarter, especially for single-family homes which increased 17 percent in the fourth quarter (477 homes) and six percent for the whole year (1831 properties) compared to 2013. At the end of Q4 2014 there were 1,812 single-family homes available, representing a one-year supply in this part of the state where the average days on the market for a single-family home sat at 176 for the fourth quarter. The 261 condominiums and townhouses available at the end of 2014 represents a 9-month supply given average days on the market of 171. “Overall the end of the year gave us some positive feelings about how our year went and what lies ahead,” said CAR spokesperson Don Ricedorff. “Rising prices, better inventory and strong sales are all good news. Add in
the affordability of properties in our region and quicker sales towards the end of 2014 and things appear headed in a great direction for both buyers and sellers.” The Colorado Association of REALTORS® Quarterly Market Statistical Reports are prepared by 10K Research and Marketing, a Minneapolis-based real estate technology company, and are based on data provided by Multiple Listing Services (MLS) in Colorado. The current
Q4-2014 reports represent approximately 98 percent of all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction. The reports cited in this press release are available online at www.ColoradoREALTORS.com/HousingStatistics.
are prepared by 10K Research and Marketing, a Minneapolis-based real estate technology company, and are based on data provided by Multiple Listing Services (MLS) in Colorado. These reports represent approximately 90 percent of all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction. 10K uses its extensive The Colorado Association of REALTORS® resources and experience to scrub and vali(CAR) Quarterly Market Statistical Reports date the data before producing these reports.
The ins and outs of mortgage insurance Question: What is mortgage insurance and why would I need it? Answer: Most people need to borrow money in order to purchase a home and so they take what is called a mortgage. The borrower then repays the loan over a period of years, typically on a monthly basis. Mortgage insurance is an additional charge on your monthly house payment (or a one-time up front payment) that may be required by banks, government lenders or mortgage lending companies (“the lenders”) for certain types of loans. It is designed to protect “the lenders” in the event you are unable to keep up with your monthly loan payments. There are two types of mortgage insurance available – government sponsored, and private (called PMI). If you get a loan from either the Federal Housing Authority (FHA) or the Veterans Administration (VA), then your mortgage insurance is being provided by that agency. If your loan comes from a non-government, or conventional lender (e.g., a bank or mortgage company) then private mortgage insurance (PMI) may be used to protect the lender from your possible default on the loan. PMI is usually required when the borrower is not able to put down a full 20 percent of the purchase price of the home as a down-payment. Typically you would pay the insurance premium until the ratio of the remaining loan to the value of the home is below 80 percent. For example, if you want to buy a home for $300,000 you would be required to put down $60,000 (20 percent) as the down-payment on a conventional loan in order to avoid mortgage insurance. Once the amount you owe drops below $240,000 (80 percent) of what you borrowed, then you can ask the lender to drop the extra insurance charges. At 78 percent of loan-to-value (LTV) the lender is required to cancel the insurance. (FHA requires that mortgage insurance be paid for the entire loan period.) Mortgage insurance can be expensive. Depending on the size and length (term) of the loan and your credit rating, the additional expense may be enough to keep some potential buyers from making the purchase. Recently the Federal Housing Authority,
which requires mortgage insurance on all of its loans, announced a reduction in their mortgage insurance program designed to help make homes more affordable. FHA loans, which have been a popular choice among first-time buyers, have until recently included mortgage insurance at the rate of 1.35 percent of the loan balance. As of January 2015 the rate was cut to 0.85 percent.
Economists at the National Association of REALTORS® (NAR) estimate that by lowering the annual premiums from 1.35 percent to 0.85 percent, and requiring only three (3) percent as a down-payment, the FHA will improve the home buying opportunities for an additional 1.6 million to 2.1 million potential buyers. This could result in 90,000 to 140,000 additional annual U.S. home
purchases, according to NAR. To learn more about mortgages and mortgage insurance, consult a professional REALTOR® in your area.
The Home Connection is brought to you by the Colorado Association of REALTORS®. For more information, visit www.coloradorealtors.com
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Real Estate Progress
Wednesday, February 18, 2015
Things to consider before downsizing
The decision to downsize a home is often bittersweet. Many couples who downsize their homes do so after raising a family. A home might be filled with memories, but downsizing a home helps couples save more money, and that financial flexibility often allows men and women to more fully enjoy their retirement. But in spite of the financial impact of downsizing a home, there’s more than just money at stake for homeowners thinking of downsizing their homes. The following are a handful of factors homeowners should consider before downsizing to a smaller home. Real estate market The real estate market can be a seller’s friend or foe. Many sellers have a sale price in mind when they decide to sell their home, but the real estate market can be fickle, so homeowners should do their research before putting their home up for sale. Will the current market make it easier for you to get the most for your home, or will you have to settle for less than you prefer? How fast are similar homes in your area selling? When studying the real estate market, it’s also a good idea to study the market for smaller homes. If you plan on moving into a condominium but the market is not flush with properties, you might end up paying more than you want to for your new home, which might negate the savings you can expect from downsizing. Furniture When downsizing to a smaller home, many couples realize their current furniture is unlikely to fit into a smaller home. That means couples will have to sell or donate their current furniture and then buy all new items for their new home. If it’s been a while since you purchased new furniture, you might be in for some sticker shock on your first visit to the furniture store. Another thing to consider regarding your furniture is which items you simply can’t live without. An antique dinner table might have been the centerpiece for your family holidays over the last several decades, but there’s no guarantee it will fit into your smaller home. You may want to pass this down to your son or daughter, but that’s only possible if he or she has the room for it. Before deciding to downsize, consider your attachment to certain items that you may or may not be able to take with you to your new home and the emotional toll that selling such items might take if you’re left with no other options.
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Older couples must consider a host of factors before deciding to downsize their homes. Proximity to family When downsizing to a smaller home, many couples move out of the suburbs and into cities or towns with more ready access to culture and restaurants. While that accessibility is great, grandparents may find that it comes at the cost of less time with their grandchildren. That’s a steep price to pay for doting grandparents, and it may also impact your children if they frequently rely on grandma and grandpa for babysitting. Before downsizing, consider if you’re willing to move further away from your
family. If not, you likely can still find a smaller In addition, if you have been visiting the same home in close proximity to your current home physician for years, you may not want to move and any nearby family members. and have to start all over again with a physician who is unfamiliar with your medical history. Medical care Consider how much maintaining your existing Many older men and women must also relationship with your physician means to you, consider the effect that moving may have on and if your next home will provide the kind of their medical care. Downsizing to a home in access to medical care you’re likely to need. the country may make it harder to maintain Downsizing a home is not just about movcontact with your current physician, and rural ing into a smaller property. To ensure you’re areas typically have less medical practitioners making the right decision, many factors must than more densely populated towns and cities. be considered before downsizing. EL14628
Make the most of your home appraisal When homeowners think about renovating their properties, many first need to secure some funding to finance such projects. Some may tap into the equity of their homes by refinancing an existing mortgage, while others may apply for home equity loans. Taking the latter approach may require certain steps, including an assessment of how much the home and property is worth. Home appraisals compare your home to neighboring properties to determine your home’s current market value. Homeowners can facilitate the process by having certain information readily available for the appraiser. When preparing for appraisers, homeowners should consider and collect the following information: • If your home was built on the largest lot in the community. • If you have made significant upgrades since it was last appraised, such as installing a new roof or siding. Don’t overlook smaller renovations, like extra insulation added or sealing drafty windows, which can increase a home’s value. • Proof that you have used sustainable resources or if you participated in any energysavings programs. Naturally, any expansion projects, such as adding another bedroom or extending the footprint of the home, should be mentioned. A real estate appraiser is a certified, licensed professional who will do his or her
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best to determine the value of your home. The appraisal provides banks with information that can tell loan officers if the house is worth the loan amount. Expect to pay a fee for the appraisal, which is generally included in your closing costs. The appraiser gathers information for the appraisal report from a number of sources, but the process often begins with a physical inspection of the property, both inside
and out. He or she also will compare your home against a few others in the neighborhood, which are known as comparables, or comps. Appraisals will be based on recent prices of comparable properties as well as other factors. Apart from the improvements done to the home, there are other ways to get a higher appraisal amount. The appraiser may consider the overall maintenance of the home and
property. It is wise to consider curb appeal and ensure the home is clean and maintained when the appraiser arrives. Minor repairs or common maintenance can impress the appraiser. Removing clutter and cleaning up the home’s interior can make the home appear larger, possibly increasing its value as a result. It may be worth it to invest some more money into the property before having an appraisal done. A study sponsored by the National Association of Realtors says wood floors, landscaping and an enclosed garage can lead to a more favorable appraisal. An appraiser will spend roughly 30 minutes in a home. Try to give that person space to do his or her job. Following the appraiser around during an inspection can raise a red flag that something is wrong with the house that you don’t want to be seen. Turn lights on throughout the house, make sure the heating or cooling system is functioning at full capacity and keep pets locked away. Move items that can impede access to basements or attics. An accurate assessment of the value of your home will give banks the information they need to determine loan amounts for future renovation projects. Providing background information on the home and having a well-maintained property can improve the chances of a favorable appraisal. SH152937
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Real Estate Progress
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Mixed results for financial security
WASHINGTON, D.C. — Colorado’s booming housing market has made it more difficult for people to afford homes, while more and more renters struggle to make their monthly payments, according to new research released at the end of January by the Corporation for Enterprise Development (CFED). The state ranks among the lowest in the nation for housing affordability (41st) and for homeownership overall (36th), according to CFED’s 2015 Assets & Opportunity Scorecard. Additionally, more than half (51.9 percent) of the state’s renters are considered housing cost burdened, meaning they spend more than 30 percent of their incomes on housing. The Scorecard ranked Colorado 37th among all states for the housing cost burden of renters. The findings point to the need for improved housing policies such as more mixed-income and affordable housing units and better protections for Section 8 voucher recipients. “The 2015 Assets & Opportunity Scorecard data highlight the critical need for policies that make affordable housing available in all areas of the state,� said Josiah Masingale, executive director of the Colorado Community Action Association, an Assets & Opportunity Network lead organization. “From the four-corners of the state to the high-prairie farmlands to the western slope, the lack of safe and affordable housing is a major barrier to thriving communities and self-sufficient families.� CFED’s 2015 Assets & Opportunity Scorecard offers the most comprehensive look available at American’s ability to save and build wealth, fend off poverty and create a more prosperous future. The Scorecard provides rankings for the 50 states and District of Columbia on both the ability of residents to achieve fi nancial security and policies designed to help them get there. Colorado ranks near the top of the country with an outcome ranking of 13, and an overall policy ranking of 9. The Scorecard evaluates how residents are faring across 67 measures in five different issue areas—financial assets & income, businesses & jobs, housing & homeownership, health care and education. The state’s relatively high standing is due in part to receiving a rating of “A� in education, driven by Colorado’s high percentage of two-year (46.1 percent, ranked 3rd) and four-year (37.8 percent, ranked 3rd) degree holders. Unfortunately, not everyone is benefitting equally in this area—Scorecard data reveal that despite otherwise high degree attainment rankings, Colorado ranks 49th in four-year degree holders by race, as the number of white four-year degree holders is 2.4 times higher than the number of people of color with these degrees. Colorado also performed poorly in health care, receiving a “D� and finding itself among the lower half of all states on nearly all measures in this area. The state has one of the highest rates of uninsured low-income children (ranked 44th), with 11.4 percent of these children left without coverage. As mentioned above, overall affordability of homes and low levels of homeownership are largely to blame for the state’s “C� rating in housing & homeownership. While Colorado received a “B� in financial assets & income, the state’s high bankruptcy rate (4.2 per 1,000 residents) and high average credit card debt ($10,417) continue to hinder residents’ abilities to achieve economic security. The Scorecard also evaluates 68 different policy measures to determine how well states are addressing the challenges facing residents. The data show that Colorado has made good strides in adopting policies designed
to strengthen the financial well-being of the state’s low- and moderate-income families, ranking 9th overall. Colorado ranked among the top ten states in four of the five policy categories assessed in the Scorecard, including financial assets & income (8th), businesses & jobs (3rd), housing & homeownership (3rd), and health care (6th). The state ranked 18th in education. However, several other policy options would further boost the incomes and savings of Colorado households, including funding the state’s Earned Income Tax Credit, which was enacted in 2013, and funding Individual Development Account (IDA) programs, which match savings account deposits by low- and moderate-income people to be used for education or a down payment on a home. Nationally, the Scorecard data finds millions of Americans have been left out of the economic recovery with little opportunity to take charge of their financial lives or plan for a more secure future. Large percentages of these households are experiencing profound levels of exclusion from the financial mainstream as they struggle in low-wage jobs and are forced to rely on fringe, often high-cost financial services just to make ends meet. Among the key findings: ¡ Low-wage jobs have increased in all but two states. Thirty-six states and Washington, D.C., saw decreases in average annual pay between 2012 and 2013. • Nationally, 56 percent of consumers have subprime credit scores, meaning they cannot qualify for credit or financing at prime rates and are more likely to use costly alternative financial products. One in five households regularly relies on fringe financial services, such as payday loans, to meet their needs. • Liquid asset poverty rates – the percentage of households with less than three months of savings at the poverty level – are
Lack of housing affordability putting a damper on Coloradans’ ability to get ahead
particularly high in states with the greatest levels of income inequality. This trend is most evident in poor states in the south and southwest and high-cost states on the east and west coasts, all of which have large populations of color. If families can’t save, closing the wealth gap is all but impossible. • In 34 states, the gap in homeownership rates between households of color and white households has widened. The 10 states where the gap is greatest are Rhode Island, New York, Massachusetts, Connecticut, Wisconsin, South Dakota, North Dakota, Minnesota, New Jersey and Kentucky. • High-cost (or subprime) mortgage loans—one of the main culprits behind the housing boom and bust—are on the rise. The percentage of homeowners with high-cost mortgages is higher in 42 states than it was in 2010. “The economic recovery experienced by some segments of our society is barely a blip in the lives of millions of Americans who continue to struggle in low-wage jobs and have little ability to save and build a better
future for themselves and their children,� said Andrea Levere, president of CFED. “In far too many cases, these households are living outside the financial mainstream, relegated to using often high-cost financial services that trap them in a cycle of debt and financial insecurity.� To access the complete Scorecard, visit http://assetsandopportunity.org/scorecard.
The Colorado LEAP program is a federally funded state-supervised, countyadministered system and is designed to assist with your winter heating costs. The LEAP Program eligibility period runs from November 1, 2014 through April 30, 2015. Eligibility Requirements, you may be eligible for LEAP assistance if: 1. You are a U.S. Citizen and a resident of Colorado 2. You pay heating fuel costs directly to an energy provider or pay the cost of heating your dwelling with your rent, or in addition to rent in a non-subsidized dwelling 3. Your gross monthly household income is within the guidelines set annually (see below). “Householdâ€? means the people who UHVLGH ZLWK \RX ZLWKLQ \RXU GZHOOLQJ DW ZKLFK \RX UHVLGH DQG DSSO\ IRU DVVLVWDQFH DQG IRU ZKRP \RX DV DSSOLFDQW DUH Ă€QDQFLDOO\ responsible for. The maximum gross monthly income is based on 150% of the federal poverty level as listed in the table below.
Household Size
Monthy Gross Income 150% of the Poverty Level
1 2 3 4 5 6 7 8 Each additional person
$1,459 $1,967 $2,474 $2,982 $3,489 $3,997 $4,504 $5,012 $508
LEAP is designed to help eligible households with winter home heating costs. LEAP is not intended to pay the entire cost of home heating. For questions, inquiries, broken heater/furnace issues, contact HEAT HELP. 1-866-432-8435
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Real Estate Progress
Wednesday, February 18, 2015
Habitat for Humanity helps build dreams BY LYNDSIE FERRELL SAN LUIS VALLEY— The SLV Habitat for Humanity store has been a large part of the community for 21 years. The organization started off by building less than one home per year for families in need and has now grown to more than two homes a year. The Valley is known for being one of the poorest regions in the state of Colorado and thanks to Habitat, 20 families have received a home since 1994. The goal for the organization is to continue building at least two homes per year, which can be achieved through generous donations and local volunteers willing to help. SLV Habitat has completed one home, is half way through a second and is even beginning the first stages of a third home for 2015. This is quite the accomplishment for the small organization. Recently, SLV Habitat decided to try to purchase the building where the store is located. The organization will be hosted a fundraising dinner on Feb. at SLV Health All proceeds will go toward the purchase of the Habitat store. This summer the annual Bike to Build marathon will be held on Saturday, July 18. Registration for the marathon will begin on Friday night from 4 until 6 p.m. and again Saturday morning from 6:30 until 7 a.m. when the marathon will begin. All entry
fees will be used to help the organization’s housing project. The marathon course runs either 100, 60 or 35 miles. For entry fee prices or to register, visit slvhabitat.org and click on the Bike to Build tab at the top. The Habitat for Humanity program is open for donations at any time. Manager Rhonda Mouser only requests that electronics and clothes are kept out of the donations for now. “We can use lightly-used furniture or construction materials anytime,” said Mouser. The re-store located in Alamosa is geared toward providing the community with a place where they can purchase building materials, tools, furniture and much more for a low cost, while knowing that the money spent goes to help someone in need. Mouser and her staff come to the west end of the Valley on the first Wednesday of every month to pick up donations and the east end, by Chama the second Wednesday of the month. Anyone wishing to schedule a pick up can contact Rhonda Mouser at 588-3689 or the Habitat store at 589-8678. SLV Habitat is always on the lookout for volunteers for any of their activities. Whether fundraising events, community awareness functions, or just by providing a snack during the Bike to Build marathon, all donations are welcomed. Simply stop by, get online or call the SLV Habitat store for more information.
5 tips for relocating
Did you know the average person moves 11.4 times in his or her lifetime? So says the most recent information from the U.S. Census Bureau. Various factors prompt people to move, from job opportunities to the desire to be closer to family members to wanting to live in a nicer climate. Moving is seldom an easy task, and is often ranked among the most stressful events in a person’s life. The Employee Relocation Council cites it as the third most stressful event in life, following only death and divorce. That stress is only heightened when an entire family is making the move and an adult is starting a new job simultaneously. Despite the potential headaches involved with moving, an estimated 43 million Americans move each year. Those moving are often married couples between the ages of 25 and 44 with one or two children between the ages of 2 and 11. To make the process go more smoothly, consider the following tips. 1. Gradually introduce the concept of moving. Moving is a decision to be discussed with the whole family, even with young children who may not fully understand the process. Kids who are involved in looking at new homes or voicing opinions about which amenities they desire in a new neighborhood will feel empowered and in control. 2. Research potential new neighborhoods carefully. Finding a new residence is not entirely about buying a home that fits the family and its needs. It also is about finding a desirable neighborhood and community. A good school district is an important factor, as is proximity to recreation, local culture and transportation. Drive around a neighborhood during different times of the day to gauge how active it is. Investigating businesses in the area can also help gauge the personality of a given neighborhood. 3. Work with an experienced agent. A real estate agent who is familiar with a variety of communities is a great asset. A buyer’s agent will find homes and negotiate on the part of the buyer, having your best interests in mind. Because the agent will be paid a commission on a portion of the sale price, which doesn’t come out of your pocket, it is in the real estate agent’s best interest to help you find a home you can call your own. In addition, the agent will handle many of the tasks that may be overwhelming if you were doing them on your own, such as scouring available listings, waiting for
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inspections or filling out pertinent paperwork. With a real estate agent handling these tasks, families can remove some of the stress from the moving process. 4. Pack children’s rooms last. Young children who see favorite items disappearing into bubble wrapping and boxes may start to feel anxious. It’s not uncommon for preschoolers to act out or experience nightmares during the moving process. Maintain a sense of normalcy in the home as long as possible. Begin by packing nonessential items, only packing kids’ items when your moving date is right around the corner. Let children say good-bye to familiar haunts and even to their old home. 5. Plan a school orientation. Take advantage of any programs schools offer to acclimate kids to their new environment. Kids often leave friends behind when moving to a new home. The faster they get back to a normal routine, the better it will be for them. Schools are where children will make new friends and participate in social occasions, so tour their new schools before the school year begins, and meet with a few residents and current students to learn about special programs that may make a move less stressful for youngsters. Relocating a family can be stressful. But involving kids in the process and anticipating an adjustment period can help families adjust more easily. FP145166
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Resources for firsttime home buyers The housing market has begun to heat up thanks to an economy on the rebound. Few people aspire to rent for life, and home ownership is a dream shared by both natives and immigrants who came to the country seeking a better life. Each year the National Association of Realtors compiles a profile of buyers and sellers that documents trends in the real estate market. Although the majority of first-time home buyers identify as white, the next largest group are Hispanics, who account for 11 percent of the market of first-time home buyers. The rapidly growing Hispanic population is influencing all areas of modern living, including real estate. Estimates suggest that, between now and 2020, Hispanics, the second largest ethnic group in America, will account for 50 percent of new home buyers. Over the last three decades, two of every five newcomers to the housing market were Hispanic, according to the National Association of Hispanic Real Estate Professionals. In addition to needing assistance finding their dream homes, Hispanic buyers also may need help securing loans to finance their upcoming home purchases. Just this year ezDinero.com launched a multinational online alternate lending solution that helps first-time borrowers connect with top experts who specialize in personal loans.
The company works directly with the Spanishspeaking market and serves as a mediator between lenders and borrowers. The service is one of the few reputable online companies that can help first-time borrowers find financial solutions that meet their exact specifications and connect them with the top lenders in the industry. Marina H. Gonzales, Director of Public Relations at ezDinero, states that there is a need for this type of bilingual service for the Spanishspeaking audience, which is underserved in the United States. “ezDinero was created with the intent of giving the Spanish-speaking population an opportunity to meet their personal lending needs, especially for first-time borrowers,” Gonzales said. This alternative lending solution is not the only option available to Hispanics. Some people find success through government assistance and grant programs geared toward the Hispanic community. The National Association of Hispanic Real Estate Professionals can be an excellent resource for further information, instructing people on how to apply for loans, secure lower interest rates and qualify for loans even if you have a poor or brief credit history. Hispanics wield more influence in the United States than ever before, and more and more Hispanics are making that influence known in the real estate market. TF149493
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Real Estate Progress
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Factors to consider before selling your home Selling a home is no small undertaking. It often pays to be patient when putting a property up for sale, but waiting for an acceptable offer can be stressful, especially for those homeowners who have already found their next homes. Because so much tends to be riding on the decision of whether or not to sell a home, homeowners would be wise to consider the following factors before putting that “For Saleâ€? sign in their front yards. • Motivation: Many homeowners sell their homes because their families are growing and they have outgrown their current residences. Others may recognize a seller’s real estate market and want to strike while the iron is hot, while still others might be moving for a new job. The factors that motivate homeowners to sell their homes vary with each individual case, but prospective sellers should keep in mind that moving can be expensive, and finding a new home may not be so easy, nor is the grass necessarily greener on the other side. When deciding if now is the best time to sell your home, make sure you will be selling for the right reason. That can make the often trying process of selling a home a lot easier to handle. • Market: The local real estate market is another factor to consider when deciding whether or not to sell your home. A home is a significant investment, and you want to earn as substantial a return on that investment as possible. Selling when the market is struggling will make your investment less valuable. Research recently sold homes in your neighborhood to get an idea of how much
you can expect to get if you sold your home in the current market. It might be worth it to sell now, or it might pay off to be patient and wait until the market rebounds. • Kids: Selling your home will impact your family just like it will impact your bottom line. Unless you plan to move down the street or to another home in your community, selling may mean you and your family no longer see your friends and neighbors. That can be a difficult adjustment, especially for schoolaged kids who will have to adjust to a new school. The potentially negative impact that selling can have on your children may not be worth the financial benefits of selling, so the decision of whether or not to sell should not be taken lightly by homeowners who also happen to be parents. • Quality of life: It can be difficult to turn down an opportunity to make a lot of money on your real estate investment. But if you plan to sell and move further away from your office and your friends and family, the financial windfall you earn when selling your home may not be worth the sacrifices you have to make in order to earn that money. Studies have shown that longer commutes can elevate stress levels, and even the most affordable property may not be worth moving to if you won’t be able to enjoy the home with your friends and family. When deciding whether or not to sell their homes, many homeowners make the decision a strictly financial one. But there is more than money to consider when deciding if now is the right time to sell your home. MM14C729
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What to look for in an investment property Historically, the appreciation rate for real estate is very strong. Even when the housing market declines, long-term investors in real estate can rest easy knowing that property values tend to rebound rather quickly, rewarding patient investors in the process. Looking at real estate as a long-term investment is just one way approach a potential
investment property. The following are a few additional considerations prospective investors should contemplate before buying an investment property.
location!� When buying an investment property, location is everything. A great location should outweigh your own personal feelings about the home, especially if you do not intend to live at the property. You will Location likely define a great location for an investMany people are familiar with the real ment property differently than you would a estate industry axiom, “location, location, property you intend to live in, so don’t let your own desires in a home cloud your judgement when choosing an investment property. Properties in safe neighborhoods that boast good schools and offer easy access to public transportation tend to make great investment properties.
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DÊcor DÊcor is another thing to consider when looking for an investment property. If you don’t plan to reside in the property, your opinion of the dÊcor should not carry much weight. When viewing a property, try to imagine how much it might appeal to prospective tenants. Quirky properties typically do not appeal to as many prospective tenants as properties whose dÊcor are similar to other homes in the area. Though you might find a tenant who prefers properties with unique interiors, a property that appeals to as many prospective tenants as possible often makes for a better investment and a lot less stress when the time comes to find tenants.
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Cost Real estate makes a great investment, but don’t go overboard when buying an investment property. Before making an offer on a property, research rents in the area and the cost of insurance in that particular neighborhood. You want a property that essentially pays for itself, so make sure the rent you’re likely to collect is enough to cover your monthly costs, including the mortgage on the property, insurance and the costs associated with managing and maintaining the property. Real estate investors often reap great rewards when selling their properties. But it’s still important for potential investors to consider a host of factors before investing in a property. MM14C728
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Condition The condition of the property also must be considered before buying an investment property. Some investors want a fixer-upper, while others prefer turnkey properties that won’t require any elbow grease. The former type of property likely won’t cost as much as a fully renovated property, but those cost savings might be lost when it’s time to renovate. Find a property that’s in the type of condition you’re comfortable with. If you decide to go with a fixer-upper, learn the cost of your potential projects before submitting an offer.
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Page 8
Real Estate Progress
Wednesday, February 18, 2015
How to make a home handicap accessible Many homeowners have found themselves scrambling to make their homes handicap accessible after a sudden injury or illness. In addition, some homeowners have found themselves looking to make adjustments to their homes in anticipation of welcoming elderly, less mobile relatives into their homes. Converting a home into a handicap-accessible space can seem like a daunting task that requires adjustments to nearly every part of the house. While the extent of those adjustments depends on the individual who needs to be accommodated, some of the areas homeowners must address when making their homes handicap accessible are universal regardless of the individual’s condition.
Entryways A home’s entryways often must be addressed when making the home more handicap accessible. Portable ramps can be an affordable option and are often an ideal for those who only need to make temporary adjustments, such as when a resident suffers an injury that requires he or she spend some time in a wheelchair. When the adjustments will just be temporary, a folding wheelchair might be necessary, as the doorways might not be able to fit a standard wheelchair that doesn’t fold. When adjustments figure to be permanent, homeowners might need to expand the doorways in their homes. Contractors typically recommend expanding doorways to at least 32 inches, which provides some maneuverability when wheelchairs, which are typically between 24 and 27 inches wide, are entering the home. Doorways at the most commonly used entryways, including front doors and doors to the bathrooms as well as the individual’s bedroom, will likely need to be widened. Bathroom The bathroom might be the area of the home that needs the most attention. Slippery conditions common to bathrooms can make things especially difficult for people in wheelchairs
or with disabilities. Grab bars should be installed in bath tubs and shower stalls and next to toilets. But grab bars aren’t the only adjustment homeowners should make in the bathroom as they attempt to make a home more handicap accessible. Safety treads, which can provide a secure, slip-free surface on the floors of showers and tubs, can be installed. Add a hand-held shower head to the shower stall to make it easier for those with a disability to shower. Portable transfer seats, which enable wheelchair-bound men and women to transition from their chairs to showers and bathtubs, can be purchased and kept in or near the bathroom. Water fixtures An often overlooked adjustment homeowners must make when transforming their homes into handicap-accessible spaces concerns the sinks throughout the home. Disabled persons may find it difficult to access faucets on sinks throughout the home, especially when there are vanity cabinets beneath the sinks. Replacing such sinks with pedestal sinks can improve maneuverability, but make sure such sinks are lower to the ground than standard pedestal sinks. A sink that’s just a few inches lower than a standard sink is considerably more accessible to people in wheelchairs. Closets Closets are rarely handicap accessible. Homeowners can address this issue by creating multi-level closet spaces so individuals can place their clothes at accessible heights. Closet shelves can be lowered and doors can be widened so disabled persons can easily manage their wardrobes. In addition, consider installing a light inside the closet and make sure the light switch can be easily reached from a wheelchair. Making a home more handicap accessible can be a significant undertaking, but many of the adjustments homeowners must make are small in scale and won’t take long to complete. FH139453
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