The author of the new book, “Pop! Why Bubbles Are Good for the Economy,” says that if home owners, buyers, sellers, builders, lenders and real estate can hold on, there are good times ahead. “Bubbles have always been good in the past, and historically, we recover from them quickly,” business columnist Daniel Gross said at the Urban Land Institute’s annual fall meeting last week in Las Vegas. Home owners have learned a thing or too about housing finance when the high-flying mortgage market was offering all sorts of products, including some very toxic ones. The notion that refinancing may be beneficial is now part of everyone’s mindset.

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search for : Why Bubbles Are Good for the Economy, refinancing

For owners who can’t afford to move up to a larger or nicer home, a makeover may offer the perfect solution. But recouping those costs depends on what gets done. Remodeling is an option many homeowners turn to when the housing market experiencing a downturn. Typically, after home sales slide, remodelings climb, but contractors say it’s a mixed bag now. Elite contractors haven’t noticed a change, but industrywide, the numbers are down from the rapid growth of the early 2000s. Tightening consumer credit and financial unease have some homeowners holding back. The recent survey shows that bathroom and kitchen remodelings and additions remain highly valued by buyers. Updated kitchens always provide a certain pride of ownership. Upgrades such as stainless-steel appliances and granite countertops impress even buyers who don’t cook much. (more…)

search for : remodeling, Updated kitchens

After three decades of a level increase in homeownership, the national rate began rising around 1995. The rush for consumers to buy homes was fueled by an enormous surge in housing construction and affordable home prices. Surprising new research published by the Federal Reserve Bank of Atlanta concludes that the bulk of the increase was caused by innovations in the mortgage market. In particular, the explosion of “piggyback” or “combo” loans made it possible for people to make small or zero down payments. Young families with little savings flocked to those loans to buy their first homes. Many analysts have fingered easy lending as a contributor to the housing boom, but the Atlanta Fed paper may be the first to quantify its effect in a rigorous way. Using math-heavy econometric analysis, the authors conclude that the availability of new kinds of mortgages, mainly ones with low down payments, accounted for 56% to 70% of the decade long increase in the U.S. homeownership rate, while demographic changes accounted for only 16% to 31% of the effect.

search for : homeownership, piggyback, low down payment

According to the latest government reports, the number of vacant homes for sale rose in the third quarter. The numbers cast a harsh shadow, indicating a continued weakness of the housing market. The Census Bureau report puts the number of vacant homes for sale at 2.07 million in the period, up about 2 percent from the second quarter, and 7 percent above year ago levels. However, the number is down 5 percent from the record high reading reached in the first quarter. There are always some homes vacant and for sale, even in a booming real estate market. But the combination of overbuilding by home builders in the middle of the decade and problems in mortgage markets this year that made it more difficult for buyers to get the financing they needed to buy a home has swelled the inventory of vacant homes on the market. (more…)

search for : vacant homes for sale, overbuilding by home builders

Americans spent a record $200 billion on home remodeling, according to the National Association of Home Builders Remodeling Market Index. A large portion of that figure can be attributed to new and improved kitchens. Remodeling your kitchen is one of the very best investments you can make in your home, one that promises an 80 percent to 90 percent return when it’s time to sell. The biggest breakthrough in countertops is the use of quartz composite. It is stain-proof, heat-resistant, extremely hard and durable, and antibacterial. You can even cut on it without damaging your countertop although you’ll dull you knife. Since quartz composite does not absorb, you can work with meats and poultry directly on the surface. The color choices are varied and manufactures are answering the call for this surface to look more natural as demand grows.

search for : National Association of Home Builders, Remodeling your kitchen

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search for : We Buy Ugly Houses, debt-ridden homeowners

Beautiful Wilkes County NC Executive Country Club Home.

MLS Number: 51211 List Price: $359,000

Bedrooms: 3, Full Baths: 2, Half Baths: 1, Est Total SqFt: 3425+
Type/Style: Tudor, Two Story, Area: 6
Elementary School : Moravian Falls Elementary
Middle School: Central Wilkes
High School: Wilkes Central

Construction: Brick Veneer & Other, Solid Masonry Foundation: Basement, block & brick. Roof: Shingle – Composition, Two Years Old, Floors: Carpet/Hardwood/Tile
Garage/Carport: Garage-Double Attached
Interior Features: Smoke Detector(s), Ceiling Fan(s), Newly Decorated, Painted and Carpeted, Central Vacuum, Large Master Bedroom, Walk-In Closets, Hardwood Floors, Basement, Two Fireplaces (Rock and Brick), Gas Logs, Workshop in Basement, Walk-in Cedar-lined closet, Formal Living Room, Dining Room, Den with Oak Bookshelves and Cabinetry, Cable TV w. broadband Internet

Exterior Features: Tiled Patio/Deck and Walkways, Very Private Yard, Level Lot, Set Back From Street.
Subdivision: Farmington
Lot Size: 1.14 acres

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

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Across the nation, that once-feverish housing market has cooled. Investors who’d bought a large percentage of the properties in many locales found they couldn’t flip them for a quick profit, and brought in tenants instead. As a result, close to half of the residents in the some subdivisions are now renters. Developments and condos that once were largely owner-occupied are filling up with renters who some neighbors say are less engaged in their communities and less concerned about maintenance. Fearful of declining property values, some homeowner associations are fighting back — targeting lax landlords and renters with “good neighbor” letters, limiting the number of units that can be rented at any one time, and, in some cases, banning investors from buying altogether.

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search for : owner-occupied

With interest expense and property taxes on the increase, landlords in record numbers are ignoring requests to make repairs to their rental property. One remedy, known as “repair and deduct”, exists as an option for renters. However, it’s a last resort to consider after exhausting all other options. Renters can’t just stop paying the rent and start wielding a hammer. Like all laws, there’s a procedure to follow to avoid getting into hot water and getting scorched by landlord retaliation. Consulting with a legal resource such as an attorney, mediator or tenant organization is vital.

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search for : property taxes

A loan modification is defined as a change in the loan contract that has been requested by the borrower and subsequently agreed to by the lender and the borrower. In today’s interest sensitive market, the modifications are usually those designed to reduce the payment burden on borrowers faced with impending rate increases. An increase in payment makes the mortgage un-affordable. Most who request the loan mods are subprime borrowers. Homeowners faced with prospect of afford ability should consider requesting a modification. They are unlikely to get one if they don’t ask. The stakes are high, they can save their house and their credit.

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search for : loan modification, reduce the payment, subprime borrower

Prospective investors are now increasingly looking to foreclosure sales for real estate bargains. As with most all investing scenarios, newcomers to this market will sometimes experience unpleasant surprises if they go in without adequate knowledge of the downfalls. All homes should be thoroughly inspected by a professional home inspector before sealing the deal. But, foreclosure homes are usually sold “as-is”. This means that buyers cannot negotiate for the cost of needed repairs, as they may do in a traditional home purchase. If pre-auction property inspections are not permitted at the foreclosure sale, buyers will need to weigh that risk carefully. Even with a significant influx of newly foreclosed properties due to the sub prime mortgage mess, the foreclosure market can be competitive, and it is often dominated by experienced real estate investors.

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search for : foreclosure homes, property inspection, foreclosed properties

Proper attic ventilation is critical for a healthy home. Determining what you need is simple. All you need is the size of your house and a calculator. Attic ventilation should equal approximately 1 square foot of vent area for every 300 square feet of attic, so figure out roughly how many square feet the footprint of your attic is, and then divide by 300. To ensure effective air movement throughout the attic, the total vent area should be split approximately evenly between high and low vents, so now divide that number by two to get a rough idea of how much low ventilation and how much high ventilation your home needs.

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FSBO (pronounced fiz-boh) is an acronym for “for sale by owner” and the shorthand way to refer to houses that sellers market themselves. With home prices expected to fall this year and next, more sellers are going the FSBO route. Their goal: to keep a bigger share of the proceeds from a sale by forgoing the services of a listing broker and saving the 3 percent commission she’d likely charge (when you do a FSBO, you typically still have to pay a 3 percent commission to the buyer’s broker). Last year about 20 percent of sellers unloaded their homes without an agent, up from 12 percent in 2005, reports industry newsletter Real Trends. And that’s expected to rise again next year.

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search for : FSBO, for sale by owner

$5,850,000

MLS Number: 50913

City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.

39.4 acres with 360 degree view of Blue Ridge Mountains.

5,200 sq. ft. main house built in 1990 on 1.24 acres.

No restrictions and no zoning offer many other options:

* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

Treasury Secretary Hank Paulson is calling on Freddie Mac and Fannie Mae to work closely with private lenders to make affordable mortgage products more available and to increase funds so those in risky adjustable mortgages can refinance. Starting in April 2007, Freddie Mac began to dedicate billions to buying refinanced mortgages designed to help troubled borrowers stay in their homes. Paulson would expand on initiatives like this. Offering affordable mortgage products, through such agencies as the Federal Housing Administration (FHA), is part of Paulson’s prescription. In August, President Bush announced a plan to make these loans available to more Americans. FHA loans carry competitive interest rates, require little in the way of down payments and are popular with lenders because they are backed by the Federal Government. They are aimed at increasing home-buying opportunities for low- and moderate-income Americans.

search for : Freddie Mac, Fannie Mae, adjustable mortgages

There is no need to stop you from buying a house or condominium even though you may be “cash challenged“. In this buyer’s market, home sellers and home builders, as well as their real estate agents, have never been more eager to sell you a home. If you have good income and a FICO score over 620, you can probably qualify for a conventional mortgage. Qualified veterans can obtain no-down-payment VA mortgages with minimal closing costs. PMI (private mortgage insurance) home loans for 90 percent, 95 percent and even 100 percent are grabbing a rising share of the mortgage market. FHA is talking with Congress about eliminating its 3 percent down-payment rule and raising its maximum mortgage limit.

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search for : cash challenged, buyer’s market, home sellers, FICO score

The first step in buying any property is to make sure that you have a clear understanding of the title issues. In some states, title companies check the record and issue a title report that includes such things as the recorded owner and title liens, easements and encumbrances affecting the property. In other states, buyers hire attorneys to search the title record and produce a report. In the aftermath of the subprime lending crisis, it’s especially important to investigate the status of any liens secured against the property. A preliminary title report will give you the original amount of such items as mortgages and taxes owed. But, the preliminary report won’t necessarily tell you the amount the sellers currently owe. All liens secured against the property must be paid in full in order for the seller to pass clear title to a buyer.

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search for : recorded owner, title liens, easements, subprime lending

Foreclosure Investing involves buying and selling properties whose owners are in or near foreclosure on their mortgages. The process may start at the pre-foreclosure stage with the investor approaching the mortgagee directly. Or, the property can be bid-on at a foreclosure sale. Alternately, the investor could buy the property from the lender’s real estate owned mortgage department after the foreclosure sale has occurred.

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search for : Foreclosure Investing, mortgage, pre-foreclosure, real estate owned mortgage department

Home Depot has started testing a warm-and-fuzzy approach to selling its wares. This somewhat innovative approach to marketing hardware is targeted exclusively at the female shopper. Responding to longtime criticism that its warehouse environment was simply too rough for many women, the nation’s largest do-it-yourself retailer is set to open the two test stores, called Home Depot Design Centers, later this month in Charlotte, N.C., and Concord, Calif. They are fashioned as a hybrid of the typical Home Depot store and its Expo stores, the retailer’s upscale design-studio concept. Big professional construction products like lumber and building materials will make way for bath and kitchen showrooms that are more extravagant and carry more products than those in the traditional Home Depot store. There is also a bigger section concentrating on home organization. The new products, for example, will give color to the home’s interior design, as will other home-improvement items for products such as doors and windows.

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search for : Home Depot, Home Depot Design Centers

Today, as many buyers of condo units aim to avoid closing on their purchases (many were speculators who had hoped to flip their properties), lenders may be forced take a big hit on its loans. This year, with the number of condos completed expected to rise 45% and with condo sales down (sales fell 12% through August of this year), other banks may find themselves in a similar predicament. In addition, builders are likely to feel more pain next year when adjustable-rate mortgages are due to reset, which could push the number of U.S. foreclosures higher and hurt sales of newly built homes and condos.

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search for : foreclosures

A short sale is the sale of a home in which the sale’s price is less than what the owner still owes on the mortgage. It is a procedure sometimes agreed to by lenders, who would often would rather take a small loss than go through the lengthy and costly foreclosure process. There can be significant negative consequences to a short sale;however, an ever-increasing number of properties are being advertised with that term prominent in the sales ad. While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit by not having to go through the protracted process of foreclosing on the borrower.

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search for : short sale, foreclosure process, foreclosing on the borrower

Over the term of the loan, mortgage interest accounts for a significant expense in your household budget, To leave you with more dollars at the end of each month, look for a mortgage like you shop for a car. Haggle. It’s tougher to haggle today, but you can negotiate the rates and terms of a loan, especially if you comparison shop. Set your goal to go with a fixed rate even if the adjustable rate mortgage (ARM) carries a lower initial interest rate. A fixed-rate loan gives you a monthly interest-and-principal mortgage payment that won’t change. That’s piece of mind when other costs, including taxes, insurance and maintenance can change. If you are thinking about an ARM, make sure you know how much and how often the interest rate and payment could go up before you sign on, and be comfortable that you can meet those higher monthly payments. Don’t let a low teaser rate lure you in; you may be surprised later.

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search for : mortgage interest, adjustable rate mortgage, mortgage payment

Beautiful Wilkes County NC Timber Frame Home and Mountain Property.

MLS Number: 51166, List Price: $898,500

2 Bedrooms, 2 Baths, 2 half baths, 2 car attached garage, full basement, and a barn on 5 acres of land.

These terms are used to describe thousands of homes and yet some things just can’t be described, they have to be experienced. This is one of those homes that really has to be seen to be appreciated.

This majestic Timber Frame home of the Bob Timberlake genre is not just another house, it provides a feeling of home that is not about walls and floors and windows and doors. It creates a feeling of the flow between your outdoor and your indoor environment that is seamless. Everywhere you look there is a view. Everything you touch feels natural and beautiful in a way that cannot be described, only owned.

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

There are many components involved in a new home, such as the roof, the foundation, the electrical and plumbing and the heating and air conditioning systems. When you contact a home inspector, inquire of his/her qualifications and background. In the past few years, when real estate sales were quite strong, many people with little or no experience opted to hang up their shingle as “home inspectors.” Many states have some form of laws involving certification of home inspectors. There is one controversial provision in most home inspector’s contract, called “an exculpatory clause.” This states that should the inspector make a mistake and negligently fail to pick up problem areas in the house, your only remedy is to get full refund of the contract price.

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Pricing property can be more art than science in some of today’s markets. New home builders probably have the easiest time of it — at least without shocking the buyers — because everything is new. There are no bare areas in the carpet, fingerprints on the appliances, nicotine stained ceiling tiles in the rec room — and definitely no cat and dog odors that are promised to be dealt with by installing new carpet after the buyer moves in. With resale homes, the first weapon to use in the battle to sell the home is to price it correctly. The challenge for sellers is that they want as much as the last sale, however, in today’s market that’s not as guaranteed as it was a year ago.

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search for : New home builders

The current buyer’s market means it is a great time to be a buyer. Sellers are eager to sell. Equally important, their real estate agents are anxious because home-sales volume is down in most cities. Even if you have bad credit, if you have good income you can probably buy a home. Before shopping for a home, it pays to check your credit reports from all three nationwide credit bureaus, Experian, Equifax and Trans Union. free credit reports will not provide your very important FICO (Fair Isaac Corp.) credit scores. Today’s mortgage lenders look primarily at your FICO score, rather than your credit reports.

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search for : bad credit, Trans Union, FICO, Fair Isaac Corp

A little knowledge is a dangerous thing. Home-repair wannabes should have that tattooed on their foreheads. Because, as any do-it-yourselfer knows, a little success with small repairs gives you a false sense of ability, a feeling you can pretty much handle the big stuff, too. But sometimes, our optimism is met by an equally strong force: the spouse as the Voice of Reason. Perhaps she (to continue the stereotype) knows you don’t have the skills, based on the historical evidence. Or she recognizes that you don’t have the time you think you do — that with all the games, the car pooling, the grocery shopping, your day job, there aren’t enough hours in the day to devote to this project.

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Beautiful Wilkes County NC Log Home and Mountain Property.

MLS Number: 50863, List Price: $359,900

Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log

Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 – 2800 SF, Basement: None

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

Foreclosure assistance counseling with various nonprofit organizations used to start almost immediately. Now, weeks may go by before consumers are served. The organizations don’t have enough counselors to serve everyone on a case-by-case basis anymore. Some nonprofits are scheduling more group sessions. Tracy Morgan is a spokeswoman for the Home Ownership Preservation Foundation, which operates a foreclosure hotline (1-800-995-HOPE) for Neighborworks. Last year, she said, the hotline handled about 75 calls a day nationwide. By June, 2007, the number ballooned to 750. For this September, the average day has brought about 1,300 calls.

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search for : Home Ownership Preservation Foundation, foreclosure hotline

Recent forecasts show many housing markets in some areas are looking at double-digit drops in home prices. Although smart money is thinking about buying there right now, it may be six to 12 months early, but it’s a good time to be searching for deals. Local housing markets that have fallen far, yet have the potential to recover soon, are ripe targets for “vulture investors,” who buy cheap in the hope that prices will rebound. There are areas where prices are expected to drop as much as 12 percent. The correction comes after years of intense real estate speculation.

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search for : home prices, vulture investors