Of course, if you're committed to buy and you can't...

So, right after I suggest the time might be right to buy a place, we get this discouraging bit of news...

Analysis: One-Third of Americans Highly Unlikely to Qualify for a Mortgage Today

RISMEDIA, September 28, 2010--Nearly one-third of Americans are unlikely to qualify for a mortgage because their credit scores are too low, making homeownership out of reach for many. This is according to an analysis of more than 25,000 loan quotes and purchase requests on Zillow Mortgage Marketplace during the first half of September.

Borrowers with credit scores under 620 who requested purchase loan quotes for 30-year fixed, conventional loans were unlikely to receive even one loan quote on Zillow Mortgage Marketplace, even if they offered a relatively high down payment of 15 to 25 percent. Nearly one-third of Americans, or 29.3 percent, has a credit score this low, according to data provided by myFICO.com.

Meanwhile, the lowest interest rates went to mortgage borrowers who were among the 47 percent of Americans with excellent credit scores of 720 or above.

In the first half of September, borrowers with credit scores of 720 or above got an average low annual percentage rate (APR) of 4.3 percent for conventional 30-year fixed mortgages. Borrowers with mid-range credit scores between 620 and 719 received APRs between 4.73 and 4.44 percent, with the APR rising as credit score drops. Those with credit scores below 620 received too few loan quotes to calculate average low APR.

For those with mid-range credit scores of 620 to 719, improving one's credit score can mean a significant savings in interest over time. For each 20-point credit score increase, the average low APR declines 0.12 percent, which for a $300,000 home, with a 20 percent down payment, equates to a savings of $6,400 over the life of a 30-year loan.

"We are in an era of historically low mortgage rates, reaching levels not seen in decades. Coupled with four years of home value declines, homes are more affordable than we've seen for years. But the irony here is that so many Americans can't qualify for these low rates, or can't qualify for a mortgage at all," said Zillow Chief Economist Dr. Stan Humphries. "Four years ago, in the era of easy-to-get subprime loans, many borrowers with low scores did buy homes, which in turn helped contribute to a housing bubble. Today's tighter credit is a predictable response by banks after the foreclosure crisis, but also keeps a cap on housing demand, which is important for the greater housing market recovery."

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Here's a vote in favor of buying

I have to admit, with interest rates dropping to ridiculously low levels, it's becoming more and more difficult to defend the "con" side of the fence. On that note, I will repeat my mantra, ad nauseum: if you find a house you like, can afford to pay for it on a 30-year fixed mortgage, and that mortgage is not out of line with what it would cost to rent the home, then it makes sense to buy. What follows is a blog published yesterday on CNBC.com, written by Patricia Chadwick, who is described as having "had more than 35 years of investment experience. She is the founder and president of Ravengate Partners LLC, a consulting firm that provides advice on financial markets and global economics."

In last week’s blog, I asked that question and then provided the issues facing a buyer, without supplying a firm answer. So let me directly answer my own question this week.

YES, I say emphatically, now is indeed an excellent time to buy a house in this country. Seldom in the last fifty years has a potential homebuyer been given the opportunity to take advantage simultaneously of both low prices in houses and low mortgage rates.

Under “normal” conditions, when housing prices are weak, it is generally during periods of high interest rates. This is logical because the mortgage interest rate is the key variable in determining the monthly mortgage payment. As interest rates rise, a buyer is forced to “trade down” i.e. find a less expensive house because of the cost of financing. The other side of that coin is true also – during periods of low interest rates, the buyers of houses can afford to pay up somewhat because the cost of financing is advantageous.

However, as I noted last week, these are not “normal” times. The glut of housing is keeping prices exceptionally low despite the extremely favorable interest rates that mortgage seekers can obtain.

But fair warning - interest rates will not stay at this level forever.

In fact, I believe it would actually benefit the economy to have rates rise somewhat.

(But that’s a discussion for another blog.)

That won’t happen just yet, but the process of finding the right house and getting the paperwork done to get a mortgage can take months and months. The sweet spot for homebuyers is now and it may not last that long.

Getting one’s foot in the door (pun intended) of home ownership is still a worthwhile long term goal. The unfortunate experience of too many homeowners over the last several years is the exception, not the rule. Owning one’s own home is still a legitimate part of the American dream, and the equity built up over twenty to thirty to forty years can be of great value in retirement.

Even if the home available today is not one’s dream house, it can still be a good investment. The “average” home is sold every seven years – we are a country on the move, scaling up and scaling back, depending on our circumstances. In that way, we are different from many other cultures. We are a mobile country. And under normal conditions, and normal conditions will come back again, selling a house is not a difficult transaction.

There is always the “caveat emptor” aspect. Do your homework! Some real estate markets may be so overbuilt that prices are still too high. Shop around and don’t be forced into anything. But get out there and hoof it; drive and walk and talk. Put energy into a search. You are making a long term investment that should serve you well.

Original article here

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Another look at the future--like it or not.

I would personally love to live in a place like

ABU DHABI, United Arab Emirates

Back in 2007, when the government here announced its plan for “the world’s first zero-carbon city” on the outskirts of Abu Dhabi, many Westerners dismissed it as a gimmick — a faddish follow-up to neighboring Dubai’s half-mile-high tower in the desert and archipelago of man-made islands in the shape of palm trees.

Designed by Foster & Partners, a firm known for feats of technological wizardry, the city, called Masdar, would be a perfect square, nearly a mile on each side, raised on a 23-foot-high base to capture desert breezes. Beneath its labyrinth of pedestrian streets, a fleet of driverless electric cars would navigate silently through dimly lit tunnels. The project conjured both a walled medieval fortress and an upgraded version of the Magic Kingdom’s Tomorrowland.

Well, those early assessments turned out to be wrong. By this past week, as people began moving into the first section of the project to be completed — a 3 ½-acre zone surrounding a sustainability-oriented research institute — it was clear that Masdar is something more daring and more noxious.

See the rest of the article here

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

I'm fascinated by this

This article really got me thinking about a lot of things. A "passive house" is basically a super-insulated house that could reduce energy usage by 90%. That's amazing. Equally amazing is that there are only 13 in the US, while there are over 2500 in Europe. Truthfully, 2500 out of hundreds of millions of houses in Europe isn't that great, either, but as usual, Europe is so far ahead of us in just about all things green. I'd love to see the floorplans of this house.

WHEN Barbara Landau, an environmental and land-use lawyer in suburban Boston, was shopping for insurance on the energy-efficient home she and her husband were building in the woods just outside of town here, she was routinely asked what sort of furnace the home would have.

“None,” she replied.

Several insurers declined coverage.

“They just didn’t understand what we were trying to do,” Mrs. Landau recalls. “They said the pipes would freeze.”

They won’t. A so-called passive home like the one the Landaus are now building is so purposefully designed and built — from its orientation toward the sun and superthick insulation to its algorithmic design and virtually unbroken air envelope — that it requires minimal heating, even in chilly New England. Contrary to some naysayers’ concerns, the Landaus’ timber-frame home will be neither stuffy nor, at 2,000 square feet, oppressively small.

Click here for the full article

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

10 Ways to Green Your Home Under Ten Bucks

(and if you don't have ten bucks, five that are free)

Free. Nothing. Nada.
Things you can do that will make a real difference for no money at all.

1. Lower water heater temperature to 120°F
2. Decrease Thermostat temperature by 3°F
3. Wash clothes in cold water
4. Air dry clothes during summer
5. Turn off unneeded lights

Under Ten Bucks

Save Heat
1. Seal your windows with strippable caulk
This is the clear stuff that is designed to peel off when it is time to open the windows again, and seals the gaps that occur at any moving part of a window. This is particularly important if you have old windows where the seals have loosened up a bit.

2. Shrink-wrap your windows
Get the plastic films that tape around your windows and then shrink tight under the heat from a hair dryer. They cut heat loss and are almost invisible. Not suitable for houses with cats, as we found out the hard way.

3. Weatherstrip your doors
A surprising amount of air leaks around them. Just be sure that the door will still close properly; I have added weatherstrip and then had to remove it again as the door just wouldn't close properly with the added foam.

4. Get a snake
Or make your own—a door snake stops draughts from under a door where it is hard to weatherstrip.

5. Get some cheap slippers
Or a hoodie. The easiest way to feel warmer and save energy is to wear more clothing. It also keeps your house cleaner and warmer.

6. Change your furnace filter
The furnace has to work harder to push through all the schmutz that gets caught in your filter if it is doing its job.

Save Water

7. Lose the drips
A dripping faucet can waste 20 gallons of water a day. A leaking toilet can use 90,000 gallons of water in a month. Get out the wrench and change the washers on your sinks and showers, or get new washerless faucets. Keeping your existing equipment well maintained is probably the easiest and cheapest way to start saving water.

8. Add a faucet aerator
Mixing in the air reduces the water consumed. Some aerators have an on/off lever so that you can stop most of the water flow without affecting the temperature, saving even more water.

Save Electricity
9. Get a switched power bar
Plug all your wall-warts into the power strip so that it is easy to turn things off when you are not using them.

10. Change a light bulb
Still have any incandescent bulbs lighting your home? Time to change them; they have better color, faster starts and less mercury than ever.

Just be sure to recycle them properly!

View original article: http://planetgreen.discovery.com/home-garden/green-home-ten-dollars.html

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

TIME Magazine's "The Case Against Homeownership"

Here's the TIME magazine article that the Wall Street Journal debates in my previous post. Both are instructive reading.

Homeownership has let us down. For generations, Americans believed that owning a home was an axiomatic good. Our political leaders hammered home the point. Herbert Hoover argued that homeownership could "change the very physical, mental and moral fiber of one's own children." Franklin Roosevelt held that a country of homeowners was "unconquerable." Homeownership could even, in the words of George H.W. Bush's Secretary of Housing and Urban Development (HUD), Jack Kemp, "save babies, save children, save families and save America." A house with a front lawn and a picket fence wasn't just a nice place to live or a risk-free investment; it was a way to transform a nation.

Houses owned by the people who lived in them, we believed, created social and financial stability — more-involved citizens, safer neighborhoods, kids who did better in school. No wonder leaders of all political stripes wanted to spend more than $100 billion a year on subsidies and tax breaks to encourage people to buy.

Read more: http://www.time.com/time/business/article/0,8599,2013684-1,00.html

Wall Street Journal's 10 Reasons to Buy a Home

This is such a bipolar time in the real estate market--TIME magazine ran a cover story talking about whether homeownership is passe. Then the WALL STREET JOURNAL ran a counter-story with reasons why the time is right. I'm personally in the WSJ camp--not only in their camp, but desperately trying to find a new place. One of my clients who is under contract for a great house a block from Forsyth Park just locked into a 30-year fixed rate mortgage at 4.0%. That is absurd--not to mention the price they are paying for one of the really special houses downtown. They looked at 30 houses, at least, before finding this one, but when you find the right one, you have to make your move.

Enough with the doom and gloom about home ownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

View original article here: http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Refinancing Mortgage Might Have its Drawbacks

Good article below about considering your options and alternatives when refinance opportunities come knocking in our current low interest rate environment. Short version is that you can always keep a 30-year mortgage and pay it down quicker, turning it into a 15-year mortgage. The risk of having an actual 15-year-mortgage is getting stuck with higher monthly payments, even if it's a shorter mortgage length, and then not being able to make the higher payments in the future.

RISMEDIA, September 14, 2010--(MCT)--Mark your calendars. The Van Ripers have moved up the date of their mortgage-burning party. When the couple purchased their St. Paul, Minn., home in 2005, they locked in a 6 percent interest rate for 30 years. But with mortgage rates at jaw-dropping lows, they were able to refinance into a 4.125 percent, 15-year mortgage that will save them more than $100,000 in interest and allow them to pay off the mortgage by the time their 3-year-old son is in college. All this for a $100 increase in their monthly mortgage payment.

Shorter-term mortgages are deliciously low. Last week, the average rate for a 15-year fixed-rate mortgage was 3.83 percent with an average 0.6 point (a point equals 1 percent of the loan value), according to Freddie Mac. The rate on a 30-year, fixed-rate mortgage wasn't much higher, weighing in at an average 4.35 percent with an average 0.7 points paid.

Refinancing to a shorter-term mortgage if you can afford the payment seems like an obvious smart-money move. You'll pay far less in interest, get rid of the monthly fixed expense earlier, and have freer cash flow in retirement. Plus there's the high that homeowners feel when they imagine making their last mortgage payment.

"It's just nice to think it's going to be done," said 33-year-old David Van Riper.

But there's a camp out there that believes locking into a shorter-term mortgage is unwise, especially when rates are so low on 30-year mortgages and economic uncertainty so high.

When Kevin McKinley, a Wisconsin financial planner and co-host of Wisconsin Public Radio's "On Your Money," learned I refinanced into a 15-year loan, he e-mailed me a list of reasons why I shouldn't have. His primary concern? That I've locked myself into higher payments at a time when the job market is shaky and home equity is tougher to access. "It's about having the cash right now and being able to do what you wish instead of being at the mercy of the bank, or the real estate market if you have to sell, or your own job," he said.

McKinley would have refinanced into a 30-year loan and stashed any money freed up by the lower payment in a savings account or CD.

I could also have taken the excess and put that money to work in the stock market or even in bonds. Considering my mortgage interest rate after the tax deduction is in the 3 percent territory, it wouldn't be hard to beat that in the market. But that's not a sure thing.

"Given the recent variations in the stock market and whatnot and the low interest rate in savings, it just seemed to make sense to put it into the house," Van Riper said.

Alex Stenback, a mortgage banker with Residential Mortgage Group in Minnetonka, Minn., said this difficult economic stretch has brought out the conservative side in most of us.

"When savings rates go up, when people start talking about 15-year mortgages or paying their mortgages off ahead of schedule, that's really just a form of self-insurance. They're no longer as comfortable with the fact that the sky's the limit and the ladder goes up for them economically," he said.

Anticipating your financial future is hard, but that's exactly what Bill Schwietz, president of the Minnesota Mortgage Association, tries to get clients to do when choosing between loans. He's seen several friends who started with 30-year mortgages, then refinanced to 15-year loans with a big promotion and then refinanced into a 30-year loan again when their children's hockey fees and private school tuition became too much.

Problem is, if you lengthen your loan and roll in closing costs with each refinancing, you'll never pay down the principal.

Kate Wilson, branch manager for Fairway Independent Mortgage in Bloomington, Minn., said 15-year loans can certainly make sense. But she always reminds her clients that there's no law against paying off a 30-year mortgage on a 15-year schedule. You'll still save a boatload, even if your rate on a 30-year mortgage is half a percentage point higher than a 15-year would have been.

Here's the example she calculated: On a $200,000, 30-year mortgage at 4.5 percent, you'll pay $164,813 in interest with a monthly payment of $1,013.37. Pay down that loan in 15 years (by making prepayments of about $517 per month on the mortgage balance) and your monthly payment would be $1,529.98 and you'd pay $75,396 in interest. If you went with a 15-year mortgage at 4 percent instead, you'd pay $66,286 in interest and have a payment of $1,479.37.

So ask yourself if you'd be willing to pay a few thousand dollars more in interest for the flexibility of having an extra $500 a month to cover life's expenses without tapping home equity. Also assess whether you're disciplined enough to actually prepay the loan. If the answer is no, then a shorter-term mortgage is a good fit, provided you can truly afford it.

Most mortgage bankers, including Wilson, have calculators on their websites. The financial calculator site dinkytown.net has several calculators to choose from, including a 15-year vs. 30-year mortgage calculator.

Of course, there's that little problem of declining home values that's making it hard for people who put little money down or bought at the peak to refinance. But having little equity doesn't slam the door. Borrowers with an FHA loan can reduce their rate without an appraisal using the FHA streamline refinance option if they meet the requirements, which include paying the mortgage on time, having income and meeting the minimum credit score requirements set by their lender (generally around 640 these days, Stenback said).

There's also the government's Home Affordable Refinance Program as well as the recently launched short refinance program for non-FHA borrowers who are underwater.

Even if your current circumstances lock you out of a refi, there's nothing stopping you from prepaying a longer-term mortgage. Make an extra payment on your 30-year loan each year and you'll retire it approximately seven years earlier.

"That's a huge pile of money," Wilson said.

By Kara McGuire, (c) 2010, Star Tribune (Minneapolis)
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Homebuyer Tax Credit: 950,000 must repay

By Les Christie, staff writer
September 9, 2010: 2:40 PM ET

NEW YORK (CNNMoney.com) -- Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.

According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.

The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.

Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home's purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years.

Had they waited to buy until 2009, they could have gotten a much sweeter deal. Congress extended the credit and made it a refund rather than a loan.

Now, the IRS is developing a strategy for separating the 2009 taxpayers who are required to repay the credit from those who are not.

A review by the Inspector General earlier this year found that the IRS could not easily distinguish between home purchases made in 2008 and 2009. That heightened concerns that some claims could be erroneous or even fraudulent, that buyers could, for example, claim their purchase came later than it actually occurred.

Thursday's release reported that 73,000 claims, more than 4% of the 1.8 million homebuyers who received the credit, had incorrect purchase dates recorded by the IRS.

Some of the inaccuracies counted against the taxpayers, Nearly 60,000 were listed as purchasing in 2008 (meaning they had to repay the credit) or had no purchase dates at all, rather than their correct 2009 purchase dates, which would free them of the obligation to pay it back.

It is also taking a look at all those deceased taxpayers who received credits.

The inspector general reported that 1,326 single people listed as dead by the Social Security Administration claimed more than $10 million in credits. The IRS threw out 528 of those 1,326 claims, saving $4 million.

View original article: http://money.cnn.com/2010/09/09/real_estate/who_repays_tax_credit/index.htm

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Small Spaces and Teeny-Tiny Homes All Under 400 Sq. Feet!

Remember the "Death of the McMansion" blog from a few weeks ago? Now here's how to go smaller. Check out this article and slide show from Re-Nest.com with great ideas for making small spaces work. http://www.re-nest.com/re-nest/small-spaces/small-spaces-and-teenytiny-homes-all-under-400-sq-feet-roundup-104433

Run your home on an iPad

The expanded energy tax credit gives homeowners a break on green improvements done by the end of 2010. Here are 8 ways to spend your green.

Long Island Deal of the Week: Half of a House

A complicated deal, to say the least. This reminds me of the story of Jeanne Calment, France's oldest woman, who, when she was 90 years old, sold her apartment to a lawyer who agreed to pay 2500 francs per month until her death, allowing her to remain in the apartment. 21 years later, the lawyer died at age 77. 22 years later, Calment died at age 122! So sometimes these deals backfire.

A complicated bankruptcy means half of a Long Island house will be auctioned off-and the 81-year-old widow living there is part of the deal, the New York Post reports.

For decades, Joan Fleming has lived alone in a modest Bay Shore ranch home. She reportedly transferred the title of the Lombardy Boulevard address to her two children, but things went awry after son Michael, 49, declared bankruptcy in April.

His share of the home is expected to be auctioned off to the highest bidder Oct. 7. Here’s the twist: Ms. Fleming can live in the house alone until her death.

And, if that’s not enough, sources tell the Post that any buyer of the son’s share can’t move in — even if Ms. Fleming dies — without striking a deal with his sister on payment of an outstanding $66,000 mortgage. “If they can’t reach an agreement on the mortgage, the buyer would have to litigate in order to sell the home,” the Post writes.

Ms. Fleming, whose house is assessed at about $300,000, did not return a request for comment.

Auctioneer Richard Maltz says he can’t get inside the home to see what will be on the block. While interest the site will likely be sold at a steep discount, this is a deal for sophisticated investors, he tells Developments.

“Basically it’s not going to produce any return on investment until the life tenant, the woman living there, passes away,” he says. “It’s kind of a morbid thing to be betting on, but the longer she lives, the lower the rate of return on your investment.”

View original article here: http://blogs.wsj.com/developments/2010/08/12/long-island-deal-of-the-week-half-of-a-house/

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

5 Simple Money-Saving Green Remodeling Ideas

I remember as a kid in the late 1970s, there were kiosks at the mall demonstrating low-flow shower nozzles. 30 years later and it's still an "option." When will this country get with the program? Anyway, onto the green remodeling tips.

It's a rough, uncertain time to be a homeowner. Plunging value, tightening credit and a soft economy mean fewer people have the funds to invest in major home-renovation projects. This trend is reflected in the slumps facing Home Depot, Lowe's and other home-improvement stores.

But there is some (green-tinged) light at the end of this dark tunnel; there are easy ways you can make quick fixes to your abode to boost its property value, without needing to refinance or inherit a fortune from a deceased uncle. Here are 5 steps that will save you money on those rising home bills, while improving your dwelling.

1. Dodge Drafts and Seal Air Leaks

Perhaps one of the easiest ways to save money around the house is to seal off drafts, which can reduce your energy bills 5 to 30 percent, according to the U.S. Department of Energy. With today's heating and cooling prices, that amounts to real money.

Check for window drafts by carefully holding an incense stick up to each frame and watch the smoke to see if there is a leak. (Be sure to remove all curtains first to avoid a fire.) Then use caulking or weather-stripping to seal the cracks. Make sure you cover any pipe outlets or cracks in the foundation. Also roll up an old towel, or buy or make a cute 'draft snake' to put over the crack in the bottom of doors (at the 'sill' or 'saddle').

You'll find that a less drafty house will also win applause from your residents and guests, as no one wants to feel like they're getting a cold shoulder.

2. Install a Programmable Thermostat

It may not be the most thrilling piece of electronics you could buy yourself, but a programmable thermostat will pay for itself in one season, and save you time and hassle. By maintaining more constant heating and cooling levels, and always 'remembering' to turn down the heat at night, the average family will save $150 a year, according to the EPA.

That's impressive, considering that programmable thermostats can be picked up from major manufacturers for as little as $50. They don't contain mercury like the olden days, and are available at most home-improvement and hardware stores.

Installing one is usually only a matter of connecting up a few wires in the back once you remove your old one (shut off the power to the area). Generally anyone can do it with a screwdriver and the instructions. But if you have any doubt, it's a quick fix for an electrician or handyman.

3. Fix Those Water Leaks

A dripping faucet or pipe joint is more than just an auditory annoyance. Besides driving you crazy, it can really add up to substantial water waste. One faulty faucet wastes 3 gallons of water per day, reports the U.S. Geological Survey.

Sometimes a leak is just a matter of a quick tighten, which almost anyone can do with pliers or a pipe wrench. Other times you get befuddled, or have a leak that is too hard to get to. In those cases it is worth calling a plumber, because not only will you see lower water bills over time, but you decrease the risk of mold, which is a serious threat both to home value and indoor air quality.

It may be a cliché, but every drop does add up.

4. Install Low-Flow Showerheads and Toilets

You'd probably rather not spend much time thinking about toilets, but it's a fact that most older models waste large amounts of water. In fact, more than 30 percent of indoor residential water use is flushed down the porcelain throne.

Decades ago, toilets used 5 gallons per flush, but readily available low-flow models use less than a gallon, and work great. American Standard, Toto and Kohler are leaders in the field.

Also save water and money, and still have ample water pressure, with a low-flow showerhead, which can slash bathing-water consumption 50 to 70 percent. The devices are simple to install and start at around $8. Many styles and features are available, including flow-adjusting dials and a pause button.

5. Buy Energy Star Appliances

Energy Star was designed by the EPA to take the guesswork out of appliance buying. Look for the blue-and-white label, which means the item is at least 10 to 50 percent more efficient than standard models (depending on the class of product). That means lower energy bills and less pollution, like you'll find with this Asko 'hidden' dishwasher.

More than 18,000 products in 35 different categories are covered in the Energy Star program, and most major manufacturers participate. Energy Star is a fixture in the showrooms of most retailers coast to coast.

A home fully equipped with Energy Star products will use about 30 percent less energy than a typical house, saving $600 a year. But remember, you don't have to rush out and replace every whiz-bang you own tomorrow. Go to energystar.gov to see qualified products and learn more.

View original article here: http://www.thedailygreen.com/green-homes/latest/5-simple-green-remodeling-ideas-460205

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.

Home Prices Gain 3.6% in Past Year

Well, things aren't ALL bad on the housing front. It's so difficult to isolate the gains. For instance, is the house down the block worth 3.6% more this year than last year? I'd guess not. But is the big house, 10 blocks away, with the higher price, which sat on the market all last, year has proudly finally sold at a much discounted price. What I'm seeing are larger and higher priced homes selling at discounts, but they are selling and thus the average price for a town or state or country may seem higher, but it's a bit of apples and oranges. The higher priced (discounted) homes selling may be only one component of the 3.6% increase which is why, again, it's difficult to isolate just what's happening.

NEW YORK (CNNMoney.com) -- Despite a recent spate of bad news coming out of the housing industry, home prices show signs of stabilizing.

National home prices jumped a substantial 3.6% in the past year, according to the S&P/Case-Shiller Home Price Index released on Tuesday. Prices also climbed 4.4% in the second quarter compared with a 2.8% plunge in the first quarter.

"While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year."

Of course, the positive report was buoyed by the government's tax credit program, which refunded as much as $8,000 for homebuyers. With that program now over, markets could cool.

"We all know what happened to housing after the homebuyers tax credit ended," said Mike Larson, real estate analyst for Weiss Research. "It's been an Acapulco-sized cliff-dive."

QUIZ: Are you an All-American homeowner?

And because this report is a lagging indicator, Larson adds that "it would be foolhardy to think that this report tells us that prices will continue to rise." Instead, he expects prices to slowly deteriorate over the next several months.

In fact, home prices across the country could be substantially lower a year from now, according to Pat Newport, an analyst with IHS Global Insight. "It's now apparent that the demand for housing is a lot weaker than anyone thought," he said.

That has resulted in a glut of inventory, which a slew of bank repossessions of foreclosed properties is only making worse. Plus job gains are still proving elusive.

"These three factors are enough to bring home prices down," Newport said.

Winners and Losers

A market basket of 20 metro areas tracked by the S&P/Case-Shiller home price indexes showed that prices gained in all markets but one. The index is up 4.2% year-over-year, well above a 3.1% forecast from industry experts as compiled by Briefing.com. The month-over-month gain was 1%.

"Las Vegas was the only city to record a fall in prices during June (-0.6%), compared with a month earlier. All 19 other markets were either up or flat, with Chicago, Detroit and Minneapolis the biggest winners. Each gained 2.5%.

Fifteen of the 20 cities recorded 12-month price rises, with San Francisco leading the way. Its 14.3% increase was one of three cities posting double-digit gains, with San Diego prices jumping 11.2% and Minneapolis 10.7%.

View original article here: http://money.cnn.com/2010/08/31/real_estate/June_Case_Shiller/index.htm

Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.