Jacque Applegate's Blog

How To Buy a Gas Grill

Sat, 05 May 2012 03:00:00 GMT

Published: April 27, 2010

With models priced from $29 to $5000 and up outdoor gas grills offer convenience and ease-of-use to fit any budget.

Cost range: $29-$5,000 and up

Likely additional costs: Assembly, natural gas hookup or propane tank, cover

Average life span: 2-16 years

Sub-$50 range

Grills in the sub-$50 range are often of the tabletop propane variety. These units are constructed of thin painted sheet metal and cheaply fabricated components, all but guaranteeing a short lifespan. Brief 90-day warranties don't offer much of a safety net.

When it comes to power, these grills are positively entry level, says Marguerite. The single, 12,000 BTU burner is satisfactory for grilling hamburgers and hot dogs but will be far less successful at charring a thick porterhouse. Still, when it comes to portability, these grills have no equal. If you are looking for a highly mobile tailgating grill, look to this sector of the market.

$50-$150 range

The biggest differences between a $50 gas grill and a $150 grill will be size and fuel source. Boasting cooking areas over twice that of their less expensive counterparts, these grills are the most economical options for families.

Models in this price range run on liquid propane stored in large refillable tanks (as opposed to the small disposable cylinders). Construction quality is moderate, featuring lightweight steel or aluminum bodies. However, the boost in price over the cheapest gas grill models yields an extra burner (albeit a low-powered one). Most are furnished with thin, steel-rod cooking grates that may warp from exposure to high temperatures, such as those from flare-ups.

$150-$350 range

Marguerite says buyers in this price range can expect to get "middle of the road" power, with burners putting out around 20,000 BTUs. Shoppers should expect a three- or four-burner grill, a roomy cooking surface, and perhaps even a storage cabinet and side burner—a separate burner used for boiling water or other independent cooking chores.

With widths of 20 to 24 inches and boasting around 400 square inches of grill surface, these units can simultaneously cook about two dozen burgers. Homeowners in cool climes who grill year round likely will lament the thin-body construction, says Marguerite. "These grills do a poor job of retaining heat in cold weather," he says. At this price range, expect less-expensive porcelain-coated steel cooking grates that tend to chip, rust and need replacing at a cost of $30 to $60.

$350-$600 range

Constructed of heavy cast-aluminum or thick-gauge steel, and utilizing high-quality stainless steel burners, these units are built to last. Parts that do fail will be covered by five- to 10-year warranties.

Averaging between 400 and 500 square inches of cook surface, these units are not substantially larger than those in the $150-$350 category. But they are constructed of heavy cast aluminum or thick-gauge steel and utilize multiple high-quality stainless steel burners. Heavy-duty castors and solid-built carts make it easy to move these grills from spot to spot.

Grills in this category can handle enough food for 15 to 18 people. Buyers are urged to select a burner configuration that appeals to them as some models arrange them front-to-back versus side-to-side, which can complicate indirect cooking.

$600-$1,500 range

Units starting around $600 feature burners that reach 40,000 BTUs, power that will make short work of even the largest barbecue payloads. Precision controls and even heat distribution give home cooks the ability to simultaneously sear, cook, and keep food warm. To step up to a 36-inch grill that approaches 900 square inches of cook space, a shopper should expect to spend at least $1,000.

Constructed of high-quality stainless steel throughout, these grills will weather years of use. These first-class rigs often include heavy cast-iron grates, side burners, under-grill storage, and even a rotisserie spit and motor. Buyers also get the peace of mind that comes with improved customer service and best-in-class warranties that range from 10 years on burners to 25 years on the body.

$1,500 to $5,000 range

When you spend upwards of $2,000 on a grill, you’ll get a host of features and quality construction. These appliances boast six or more top-of-the-line burners. Almost standard issue these days is an infrared sear burner that can reach temps topping 700 degrees.

Most include a rear-mounted rotisserie burner with motor, interior and exterior lighting, and even a spring-assisted lid for effortless opening. With the best grills also come the best warranties, typically covering most components for 10 to 25 years.

Propane vs. natural gas

Homeowners should decide before buying a grill whether they intend to fuel it with propane or natural gas, says Marguerite. While many grills can be converted for around $50, it is best to buy one factory engineered for one fuel type or the other.

Owners of built-in units typically choose natural gas as there are no tanks that need filling and the cost to operate is roughly half that of propane. According to the U.S. Department of Energy's most recent figures, propane costs $20.47 per million BTUs compared to natural gas's $12.18. Assuming a homeowner grilled once a week, he or she can expect to pay about $40 per year for propane and $24 for natural gas. Marguerite says that his company charges $150 plus $7 per foot to connect a grill to a natural gas line.

Suggested extras

A good-fitting cover will extend the life of any outdoor appliance. Expect to pay between $30 and $50. Owners of propane powered grills should consider purchasing a $20 back-up tank so that a fully charged spare is always on hand. A $20 gas gauge will take the guesswork out of estimating a tank's contents.

Now Accepting Payments Online for Rental Houses

Sat, 05 May 2012 03:00:00 GMT

Now at Elite Realtors of Georgia TeamWorks Property Management! Pay Your Rent, Security Deposit, Pet Deposit, and Rent Application Fees online. FREE for e-checks! We are accepting electronic checks, Visa and MasterCard payments.

Got a Visa or a MasterCard? You are now able to pay your rent online using a Credit Card or an e-check. Electronic checks are completely FREE of charge – it’s just like writing a check for your monthly rent. Please note that Credit Card payments are subject to service fees. Of course, we still accept your rent payments at our office in forms of cash, personal check, or money order.

PayYourRent.com, a leader in the residential housing payment industry, along with TeamWorks Property Management, your premiere Property Management Company in Warner Robins, GA, is pleased to offer you the convenience of paying rent with your credit card and electronic checks online.

Paying your rent online is quick, easy, and hassle-free. And there are two convenient ways to use RentPayment – online or by phone. To pay online, simply click on this Pay Online link. This link will take you to PayYourRent.com where you will log in with your personal account and then identify the credit card or check you want to use to make your rent payment.

Extend the Outdoor Living Season

Thu, 26 Apr 2012 03:00:00 GMT

By: Jan Soults Walker

Published: October 3, 2011

Make an outdoor living area comfy long after the sun sets or the leaves turn with outdoor lighting, a patio heater, and a glowing firepit or portable fireplace.

With both lighting types, you can:

Light deck railings and stairs

Define the patio perimeter

Illuminate the edges of paths and walkways

Draw attention to a planter or tree

Other fixtures light up dining tables, grill surfaces, and even underwater in swimmingpools.

Low-voltage fixtures clip onto a safe, 12-volt cable connected to a transformer, which plugs into a GFCI-protected 120-volt electrical outlet. A timer or light-sensitive control automatically turns lights on and off.

A low-voltage lighting kit with eight LED stainless steel fixtures, 50 feet of cable, and a transformer starts at $60. Individual low-voltage fixtures range in price from $7 for a simple poly-resin fixture up to about $150 for architectural-grade, cast-brass models.

Solar outdoor lighting fixtures don’t need cables and transformers. They simply turn themselves on automatically after dark. Each stand-alone fixture stakes into the ground or secures to a deck or exterior surface. You’ll save energy, as a sunlight-charged battery powers the bulb.

The downside to solar fixtures is a dimmer glow than low-voltage fixtures, and fewer lighting hours – many solar fixtures run out of stored energy after 4-5 hours on the job. Cloudy days also reduce power.

A four-pack of solar light fixtures that mount on top of deck posts starts at about $30. Or, check out a cast-aluminum solar lantern for about $60.

Get glowing with a firepit or portable fireplace

Bring a cozy glow and a stylish focal point to your outdoor living area with a firepit or portable fireplace. Irresistible for gathering, warming up, and roasting marshmallows, firepits and portable fireplaces come in a variety of materials, sizes, and styles. You’ll also find options for fueling your fire with wood, propane, gas, or gel cans.

Check local fire codes first to find out if your community allows the use of a firepit or portable fireplace on the patio or lawn. (Never use a fire feature on a wood deck.)

A firepit ($100-$500) is an open bowl, dish, or pan that varies in size from 24 inches across to about 40 inches. A firepit may come on a stand (some with wheels) or nestle into a tiled tabletop. Select a model with screening to contain flyaway sparks.

A portable fireplace ($100-$600) features a chimney to vent smoke up and away from people. Some portable fireplaces offer 360-degree views of the fire.

Warm up with a patio heater

Boost the warmth of your outdoor living area by as much as 15-25 degrees in the fall or spring with the addition of a portable patio heater. You’ll find three basic models:

Freestanding units resemble large floor lamps. Set them anywhere on your patio that will accommodates their 7-8 foot height. Some models include wheels for mobility. Expect to pay from $150 to $1,500, depending on heat output and fuel source.

A tabletop patio heater rests on a table, bench, or garden wall. These compact units typically produce less heat than tall, freestanding models. Prices range from $100 to $450.

Ceiling- or wall-mount patio heaters free up floor and table space, and typically emit heat via a halogen lamp. Prices vary from $175 to $1,500.

Make your selection based on how much outdoor living area you want to heat and whether you want a model powered by electricity or natural gas (each requiring a connection) or with a propane tank, which allows mobility.

As a rule of thumb, a 47,000 BTU propane-powered, floor-standing patio heater ($200) will heat an 18-foot diameter space. A 20-pound propane tank (about $36, plus $13 for fuel) offers about 10 hours of heating time.

Electric patio heaters use a quartz tube or halogen lamp that emits radiant heat. An infrared wall-mount electric patio heater ($450) equipped with a 1500-watt bulb heats a 9-foot area around the heater and uses about 14.4 kilowatts for a 10 hour period. At 8 cents per kilowatt for electricity, you spend about $1.15 to operate the unit for 10 hours.

Verizon Wireless bringing 4G technology to Warner Robins

Thu, 19 Apr 2012 03:00:00 GMT

Verizon Wireless will be bringing 4G technology to Macon that will affect areas from north Bibb County to Houston County.

It will allow customers to access the Internet faster and watch videos on their phones with speeds up to 10 times faster than before, according to a news release. No time line was given in the release, only that it would be “in the coming weeks.”

When Verizon Wireless turns on its 4G long-term evolution network in Macon, customers in commercial, downtown and residential areas of Macon, Warner Robins and Perry will have access. As of March 15, Verizon’s 4G network covered 203 markets across the country and the company plans to more than double that.

Read more here: http://www.macon.com/2012/04/16/1992580/verizon-wireless-bringing-4g-technology.html#storylink=cpy

Warner Robins area one of fastest growing in nation

Tue, 10 Apr 2012 03:00:00 GMT

Author: wcrenshaw@macon.com (WAYNE CRENSHAW)

Posted: 04/06/2012 7:35 AM

WARNER ROBINS -- Census data released Thursday showed the Warner Robins metro area was one of the fastest growing parts in the country between 2010 and 2011.

Metro Macon, meanwhile, showed only slight growth while some Middle Georgia areas lost population.

The figures, based on the metropolitan statistical area including all of Houston County, show the Warner Robins area grew by 2.9 percent to 143,925 between April 1, 2010, and July 1, 2011. That makes it the sixth fastest-growing metro area in the nation, according to the Census Bureau.

The fastest growing metro area was the Kennewick-Pasco-Richland, Wash., area, population 264,133, with 4.3 percent growth.

Metro Macon, which includes Bibb, Crawford, Jones, Monroe and Twiggs counties, grew by .03 percent to 232,920. The Dublin and Milledgeville areas, termed micropolitan areas by the Census Bureau, lost population, and the Fort Valley area saw marginal gains.

The 2010 figures are based on the census, while the 2011 figures are estimates. For the estimates, the Census Bureau looks at births, deaths, administrative records and survey data.

The estimates reflect changing growth patterns nationwide, according to a Census Bureau release. Of the 50 fastest growing areas in the last decade, only 24 were on the fastest growing list since the 2010 census.

Houston County Commission Chairman Tommy Stalnaker attributed metro Warner Robins’ growth to a variety of factors, including a low crime rate, good school system, low cost of living and the overall quality of life in the community. Many people move here to work at Robins Air Force Base, then stay here when they retire, contributing to a continuous source of growth, he said.

“People are moving here obviously because Warner Robins and Houston County have gotten a lot of good publicity as a great place to raise a child, and once they do that they end up staying here,” Stalnaker said.

He said he believes the 2.9-percent growth estimate is probably a good one, and if anything it may be on the low side. As evidence of that, he cited growth in sales tax revenues during a time when revenues have dropped in other areas and more people are pinching pennies. Houston County has generally been isolated from the economic woes that have impacted the country, he said.

“I remind people not to be too down in the dumps because we are a lot better off than they think we are,” he said.

Warner Robins Mayor Chuck Shaheen said he was not surprised the Warner Robins area was identified as a fast growing one.

“We are the greatest city in the country,” he said. “We are a military town, a faith-based town and we are a giving town. The future is going to continue to be bright.”

He said the construction of the new law enforcement center near Robins Air Force Base and $2.5 million in sales tax funds to spur economic development in that area will help spur growth in a part of the town that has struggled.

Perry Mayor Jimmy Faircloth said he has seen the signs of growth in his city. One indicator is commercial and residential building permits, which were stagnant a couple of years ago but have been growing steadily since then. He attributed the growth to Robins and people coming to area to retire, among other factors.

“We’ve had a slow but steady growth rate, and that to me is the best kind to have because you don’t have those wild swings that cause problems,” he said.

Among those retiring in the Warner Robins area are Tim and Gina Parish, who are looking to return to the city this year after a six-year absence. The couple lived in Warner Robins for 18 years before Tim Parish’s job as a air-traffic controller took them and their two children to Prattville, Ala., in 2006.

But Warner Robins always felt like home, Gina Parish said Thursday.

So when Tim Parish retired this year, they looked to move back to Warner Robins. Good schools along with continued growth influenced the Parishes’ decision. Their daughter, a rising 10th-grader, will attend a Houston County school. Their son is a student at Auburn University.

“The schools are a big part of it because you have excellent schools there,” Gina Parish said. And while other cities struggle in a tough economy, Warner Robins “is just wonderful because it’s growing.”

“You see new stores and restaurants opening up,” she said.

The Parishes are in the process of purchasing a home and hope to move to Warner Robins after school is out in late May.

Meanwhile, Macon Mayor Robert Reichert said the growth in Houston County is good news for the entire region.

“I’m one of those who thinks regionally and that we are joined at the hip,” he said. “What’s good for Warner Robins is good for Macon, and what’s good for Macon is good for Warner Robins.”

He also pointed out that the census figures look at where people are at night. During the day, he said, Macon’s population swells as people drive in from surrounding counties to work.

“We continue to be a prospering and dynamic economic center,” he said.

Staff writer Caryn Grant and Houston office editor Jennifer Burk contributed to this story. To contact writer Wayne Crenshaw, call 256-9725.

Boost Your Neighborhood’s Walkability

Mon, 12 Mar 2012 03:00:00 GMT

By: Sacha Cohen

Published: November 18, 2010

You can’t move your neighborhood closer to shops, restaurants, and offices, but if you can improve its walkability, you might make it more valuable.

How much is that walkability worth?

Having shops and gathering spots like schools and restaurants located within a quarter-mile to one-mile from the homes in your neighborhood can add from $4,000 to $34,000 to home values, according to “Walking the Walk,” a study from CEOs for Cities, a nonprofit that works to improve cities. The increases were largest in large cities like San Francisco and Chicago and smaller in smaller cities like Tucson, Ariz., and Fresno, Calif.

What are walkable communities?

Dan Burden, founder of Walkable Communities, defines them with his a 12-step checklist, which includes:

Great public places to get together and socialize

Speed-controlled key streets

Pedestrian-centric design

A town center with a wide variety of shops and businesses

Maybe you’ve been to one of the communities he says has high walkability, like:

Warner Robins, GA
Bonaire, GA
Kathleen, GA
or even a neighborhood close to Robins AFB

How do I make my neighborhood more walkable?

To have great walkability, you have to have something worth walking to, such as restaurants or parks, and a critical mass of people living around those amenities. To make a difference, get your neighbors together and go talk to local officials. Your group can push the planning and zoning board for changes that make your town more walkable, like putting multifamily housing to the town core or allowing home owners in nearby neighborhoods to build a rental apartment in their home.

All those new residents will want to mingle somewhere. So plan to lobby for more welcoming public spaces where you can mix and socialize (think library, park, coffee shop) to increase your neighborhood’s walkability.

How does walkability affect drivers?

To heighten walkability, make the streets kinder to walkers and, possibly, crueler to drivers. Put these items on your city planning list:

More and wider sidewalks

Lower speed limits

Pedestrian-friendly laws, like New Hampshire’s rule that drivers have to hit the brakes for pedestrians in crosswalks even if the light is green

Try applying peer-pressure power to get drivers to ease up on the gas pedal. Pedestrian safety advocates persuaded 6,000 Atlanta home owners to put up yard signs asking drivers to slow down.

If you’re serious about increasing walkability, gather neighbors and town officials for awalking audit, where the group walks along a particular route and stops periodically to discuss how to improve the walking experience with landscaping, safety improvements, or accessibility improvements.

If mixing it up with politicians and planning committees isn’t your bag, try these much easier tips for improving walkability from John Wetmore, producer of Perils For Pedestrians Television:

Trim shrubbery that’s blocking the sidewalk in front of your house.

Pick up trash and litter as you walk along.

Support initiatives in your town to build new sidewalks and repair existing sidewalks.

Be polite to other drivers and pedestrians when you drive.

And maybe the best walkability tip of all? Just get out and walk.

Latest Warner Robins Crime Statistics

Thu, 23 Feb 2012 03:00:00 GMT

Submitted by Lorra Lynch-Jones, 13WMAZ Anchor & Reporter

Wednesday, February 22nd, 2012, 6:45pm

The number of violent crimes in Warner Robins held steady from 2010 to 2011, while the number of thefts jumped 23 percent.

That's similar to the trend Macon police reported, when they released their annual crime statistics last month and consistent with national numbers reported from police departments to the FBI.

Warner Robins Police Chief Brett Evans explained how they use the numbers to better protect the community.

Evans says crime numbers don't share the whole story, but provide police and the community with a snapshot of what's happening around them.

He said, "If they pay attention to the crime statistics. They can say, hey, our crime is staying at a good level. So, the money were spending is not going to waste."

From 2010 to 2011, homicides stayed the same with five. So did car thefts.

Rape, robbery and simple assault increased slightly.

Aggravated assault, burglary and arson cases decreased.

The big jump came in theft, up 583 cases to 3,172. Of those more than 700 were car break-ins. 735 were shoplifting cases.

Evans says extra enforcement boosted the number of reports.

He said, "A couple of the larger retail chains did a significant enforcement of shoplifting. The brought in people from other stores and did enforcement in one particular store. So, there were days when we processed 14 or 15 shoplifters from one retail store."

A further break down shows police where to patrol in the future.

Evans said the majority of the shoplifting crime happened in the retail section of Watson Boulevard. They'll now send more officers here during the time of year and the time of day they saw those crimes happen.

"It's changed where we go on a daily basis", he said.

Evans said the numbers can also translate the numbers into how best to protect themselves and their property, along with helping police.

Macon police attributed their spike in thefts to metal theft. Evans said he believes that is one factor in their statistics, but did not know how much.

The other foreclosure settlement: Millions of homeowners eligible

Mon, 20 Feb 2012 03:00:00 GMT

By Les Christie @CNNMoney February 20, 2012: 8:40 AM ET

NEW YORK (CNNMoney) -- Millions of borrowers who suffered financial losses because their mortgage lenders played fast and loose while processing their foreclosures now have two ways of getting a payback.

They can tap the $26 billion settlement between the state attorneys general and the nation's five biggest banks that was inked two weeks ago.

But there is also an earlier settlement that has been nearly forgotten -- and that could lead to an even bigger payoff, in some cases.

As part of a enforcement action by federal authorities last April, 14 mortgage servicers, including Bank of America , Chase, Citibank, HSBC, MetLife Bank, PNC Mortgage and Wells Fargo, agreed to hire independent consultants to investigate foreclosure abuses and compensate those who suffered financial harm.

As a result of the program, up to 4.3 million mortgage borrowers who were foreclosed on in 2009 and 2010 will have a chance to request an independent review of how their foreclosure was handled.

So far, only 90,000 eligible homeowners have submitted claims, prompting the feds to extend the deadline for applications by three months to July 31.

The exact amount of money borrowers will receive has yet to be determined. But if a review finds that "financial injury" occurred -- say a bank charged inappropriate fees or it went forward with a foreclosure without a valid claim to the property -- a homeowner could be repaid in full for job losses.

Borrowers who were improperly charged even just a single fee could be repaid for it, according to Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency, one of the federal regulatory agencies that negotiated the agreement.

And borrowers who suffered much larger losses could be in line for much bigger repayments than promised by the AG's settlement, which will pay up to $2,000 to the estimated 750,000 who lost their homes to foreclosure between 2008 and 2011.

The compensation could even repay the cost of regaining a wrongfully lost home if warranted by the facts of the case, according to Hubbard.

The Independent Foreclosure Review was sparked by the robo-signing scandal that exposed the bank's treatment of borrowers in the foreclosure process. The lenders lost documents and recreated them, had low-level employees with no knowledge of what they were attesting to sign legal papers and bent the rules requiring them to halt foreclosures if borrowers sought mortgage modifications.

What the $26B foreclosure settlement means for you

Unlike the $26 billion settlement with the state attorneys general, borrowers didn't have to lose their homes in order to receive compensation, according to Hubbard.

"It could be anyone who suffered financial loss because of errors made in the foreclosure process," he said.

Since the settlements are completely independent of one another, claimants can double-dip, filing for compensation under both settlements. (To seek compensation under the state attorneys general settlement, contact your lender or servicer and ask them to review your case).

To make a claim for the Independent Foreclosure Review, borrowers have to fill out a five-page form that identifies some examples of situations that may have led to financial injury. Borrowers do not have to provide documentation. That will be handled by an independent agency.

No reviews have been completed yet, according to Hubbard. And individual cases may take months to come to decision.

For more information on the forms, go to the website set up by the servicers. And for a full list of the mortgage services involved in the Independent Foreclosure Review, go to the Federal Reserve website.

Biggest mortgage deal could bring billions in relief

Thu, 09 Feb 2012 03:00:00 GMT

By Chris Isidore and Jennifer Liberto @CNNMoney February 9, 2012: 12:40 PM ET
retrieved from http://money.cnn.com/2012/02/09/news/economy/mortgage_settlement/index.htm?hpt=hp_t1

WASHINGTON (CNNMoney) -- In the largest deal to date aimed at addressing the housing meltdown, federal and state officials on Thursday announced a $26 billion foreclosure settlement with five of the largest home lenders.

The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.

The settlement includes the Justice Department and the U.S. Department of Housing and Urban Development, as well as 49 state attorneys general -- all but Oklahoma.

"We are using this opportunity to fix a broken system," said U.S. Attorney General Eric Holder at the news conference announcing the settlement.

The settlement sets up a federal monitor to oversee the process and try to prevent the roadblocks and redtape that tripped up many homeowners seeking help in earlier programs designed to address the housing crisis.

Most of the relief will go to those who owe far more than their homes are worth, known as being underwater on the loans. That relief will come over the course of the next three years, with the banks having incentives to provide most of the relief in the next 12 months.

"This settlement is about homeowners, homeowners in distress," said Iowa Attorney General Tom Miller.

What the settlement means to you

Principal reduction: At least $17 billion will go to reducing the principal owed by homeowners who are both underwater and behind on their mortgages.

The agreement calls for principal reduction for as many as 1 million people. But it's unlikely the money will go that far, because many people need more than the $17,000 average reduction that would result if the money is split among 1 million homeowners.

At the same time, total principal reduction could go higher -- to as much as $34 billion -- since the agreement requires deeper principal reductions for the most troubled loans.

Refinancing: Officials say up to 750,000 other underwater homeowners who are current on their mortgages will be able to refinance their current loans at lower rates. They will not receive a reduction in principal, but with mortgage rates now near record lows, they could receive substantial savings on their monthly payments.

The settlement sets aside $3 billion to account for the reduced interest payments the banks will receive after the refinancing.

Robo-signing payments: About $1.5 billion of the settlement will go to homeowners who had their homes foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011, and who meet other criteria. They will receive up to $2,000 each.

Accepting that payment does not preclude homeowners who lost their home in an improper foreclosure from suing the bank to recover damages, Donovan said.

Participating banks: The five mortgage servicers that are parties to the settlement -- Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Ally Financial -- will pay a total of $5 billion to the states. Some of that money will go to foreclosed homeowners and the rest to the states.

Federal officials say negotiations are underway to expand the settlement to nine other major servicers, which would raise the overall value of the settlement to $30 billion.

Related settlements: The deal spurred pacts between the federal government and banks in similar cases.

The Federal Reserve said it had reached an agreement with the five banks to pay a $766.5 million in sanctions related to their servicing practices.

And Loretta Lynch, the U.S. Attorney in Brooklyn, N.Y., announced a $1 billion settlement with Bank of America to resolve claims of underwriting and mortgage origination fraud by BoA and mortgage lender Countrywide Financial, which BofA bought in 2008.

The $26 billion deal announced Thursday is the second biggest settlement ever involving states. It trails only the $206 billion pact in 1998 with the tobacco industry.

And it dwarfs any settlements that major Wall Street firms have reached to resolve other allegations of misdeeds related to the financial markets meltdown and the Great Recession.

Still it only will help a faction of those homeowners who are struggling with mortgages.

There are 1.5 million homeowners who are 90 days or more delinquent on their mortgages but not yet in foreclosure, according to the most recent estimate from the Mortgage Bankers Association. An additional 1.9 million are in the foreclosure process. And CoreLogic estimates that 11 million homeowners are underwater on their mortgages.

Obama proposes new home refinancing plan

The settlement does not preclude criminal prosecutions from being pursued. It also doesn't stop investigations into other allegations of misdoings, such as the process of bundling loans into mortgage-backed securities and selling them to investors.

"It wasn't the servicing practices that created the bubble nor caused the collapse," said Donovan. "It was the origination and the securitization of these horrendous products. We will be aggressive about going after those claims."

The deal is supposed to protect consumers when it comes to robosigning, and ensure that mortgage servicers agree to communicate better, avoid delays and give homeowners who are late on mortgage payments a fairer shake.

New York's participation had been shaky this week, because some of the banks involved in the multi-state deal had also been sued by Attorney General Eric Schneiderman last week. Those banks -- Bank of America, Wells Fargo and JPMorgan Chase -- had also asked for a legal pass from Schneiderman's lawsuit, which accuses them of deceptive foreclosure practices for relying on the Mortgage Electronic Registration System.

On Tuesday, Schneiderman's office organized a media briefing to talk about the deal and then canceled it minutes before it was supposed to begin.

The big question throughout the negotiations was how much money would be available to help homeowners, which depended on how many states agreed to the deal. California's participation raises the total settlement value by several billion dollars.

At least one consumer advocacy group, the Center for Responsible Lending, has said the deal -- while "no silver bullet" -- leaves room to hold banks accountable in other mortgage probes, said Kathleen Day, a spokeswoman for the nonprofit.

But other left-leaning groups, including Move On and the New Bottom Line, are continuing to urge states to hold out for a big criminal investigation and a $300 billion settlement award.

--CNN's Jessica Yellin contributed to this story.

Foreclosure deal: Closer, but not there yet

Mon, 06 Feb 2012 03:00:00 GMT

By Jennifer Liberto @CNNMoney February 6, 2012: 4:01 PM ET
retrieved from http://money.cnn.com/2012/02/06/news/economy/mortgage_settlement/index.htm?hpt=hp_t1

WASHINGTON (CNNMoney.com) -- States have until the close of the business day to agree to the latest draft deal aimed at relieving homeowners struggling with mortgages bigger than their home's value.

Attorneys general from California and New York, who had been cold to the deal in past weeks, are now involved in talks that could signal their participation.

A source close to the talks told CNN that California Attorney General Kamala Harris is now inclined to sign on to the deal.

New York Attorney General Eric Schneiderman is also talking with negotiators, sources say.

Federal officials and state attorneys general could announce -- perhaps as early as this week -- a deal with some of the nation's largest banks that could yield up to $25 billion for those homeowners. That would be more than any housing relief program has produced since the financial crisis began.

Obama proposes new home refinancing plan

Under the latest draft, about 1 million U.S. homeowners who are "underwater" on their mortgages -- with principal exceeding the home's value -- could be eligible for as much as $20,000 in relief of principal owed, according to U.S. Housing and Urban Development Secretary Shaun Donovan.

In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims -- although homeowners could pursue claims against banks and states could still pursue criminal investigations, according to reports.

Driving the deal originally were allegations that mortgage servicers cut corners and enlisted robo-signers that improperly foreclosed on homeowners. However, the deal under negotiation now wouldn't be able to return houses to those who have already been foreclosed on, according to reports.

What the deal would do is ensure that mortgage servicers agree to communicate better, avoid delays and give homeowners who are late on mortgage payments a fairer shake.

The big question is how much money would be available to help homeowners, but that depends on how many states agree to the deal. If all 50 states sign on, the mortgage servicing settlement has the potential to offer as much as $25 billion. But without California, the nation's largest state, the pot would be several billion dollars smaller.

Last week, California's Harris and Attorney General Beau Biden of Delaware said the deal, as drafted, wasn't good enough for their states.

New York's Schneiderman was tight-lipped about his participation when asked. Calls to his office on Monday weren't returned.

Generally, the attorneys general have said they're worried they if they agree to the deal it would cripple their own investigations into mortgage cases.

But California's Harris is more comfortable that the deal will leave her room to pursue her own investigations and lawsuits, a source close to the talks told CNN.

The negotiations are between federal agencies, including the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, as well as the state attorneys general and the five largest mortgage servicers:Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500) and Ally Financial (GJM). A few other regional banks that service mortgages are reportedly considering signing on as well.

The big banks aren't as keen to sign off on a multi-state deal that doesn't include immunity from mortgage servicing claims from California's and New York's attorneys general, said a source familiar with the deals.

And left-leaning groups, including Move On and the New Bottom Line, are continuing to urge states to hold out for a big criminal investigation and a $300 billion settlement award.

-- CNN's Jessica Yellin and CNNMoney's Erica Fink contributed to this report.

Schedule A Form: 6 Home Deduction Traps

Sat, 04 Feb 2012 03:00:00 GMT

By: Barbara Eisner Bayer

Published: January 5, 2012

Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.

Trap #1: Line 6 - real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:

Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes

Your annual property tax bill: $5,500

Now do the math:

Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.

Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.

Trap #2: Line 6 - tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2011, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here’s why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.

Trap #3: Line 10 - properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.

Trap #4: Line 10 - HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.

For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you’ll deduct more than you’re entitled to.

Trap #5: line 13 - Private mortgage insurance

You can deduct PMI on your Schedule A Form, as long as you started paying the insurance after Dec. 31, 2006. Unless Congress acts to extend the PMI deduction, however, 2011 is the last year for which you can take this deduction. (Also, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you’ve had a change in loan-to-value status.)

Trap #6: line 20 - casualty and theft losses

You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn’t always obvious or simple:

Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).

Fill out Form 4684, which involves complex calculations for the cost basis and fair market value. This form gives you the number you need for line 20.

Bottom line on line 20: If you’ve got extensive losses, it’s best to consult a tax pro. “I wouldn’t do it myself, and I’ve been dealing with taxes for 40 years,” says former IRS official Marti.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Down Payment Gift a Leg Up to Home Ownership, But Know Tax Rules

Thu, 02 Feb 2012 03:00:00 GMT

By: Dona DeZube

Published: December 28, 2011

We explain the tax details around giving the gift of a home down payment.

With lots of inventory and low home prices, your gift of a down payment to your credit-worthy children can be a stepping stone to getting into a first or next house. A nice thought at this time of year. (I’m speaking both of the holidays and the upcoming tax season.) Speaking of which, there are rules — like there’s no tax deduction for giving a non-charitable gift. But your gift of up to $13,000 can be given tax-free.

My husband and I used our parents’ generous wedding gift as a down payment rather than spend it all on the wedding. And we’re not the only couple boosted into home ownership by parents, according to blogger Amy Hoak. She says about one-quarter of first-time home buyers get a down payment gift from relatives or friends (note to my friends: My birthday is coming up in February and nothing says you’re my BFF like a down payment!).

“Many times a gift will allow a buyer to make a down payment without severely depleting their savings — a big plus in an uncertain economy,” writes Hoak. “Most lenders will require borrowers to have some money in the bank after closing. And some parents would rather their adult children keep saving for a rainy day than use all of their funds to make a down payment.”

The rules for using down payment gifts differ depending on which lender you use and whether your loan is guaranteed by Fannie Mae, Freddie Mac, or FHA. Hoak outlines the rules for each in her blog.

If you’re the one making the down payment gift, you won’t have to pay federal income tax, nor will the recipient, as long as you give $13,000 or less in 2011 or 2012. You can give up to $13,000 per person without tax implication to any number of people in one year.

In addition, you and your spouse can each give separate gifts to your child. The IRS calls this gift splitting. For instance, if you’re planning to give to your two children, you and your spouse can each give each child up to $13,000 for a total of $52,000 ($13,000 x 4), says CPA Sue Medicus, owner of Liberty Tax Service in Catonsville, Md.

If you want to give more, you still may not owe taxes, but you have to inform the IRS of your gift using Form 709. Check with your tax adviser to see if the amount above $13,000 counts against a lifetime exclusion that we all get to use to pass along assets via gifts and estates, Medicus says.

You can’t deduct the value of gifts you make (other than gifts that are deductible charitable contributions) or any federal gift resulting from making those gifts.

For more, IRS Publication 950 outlines the rules about gift and estate taxes.

What do you think about making down payment gifts to children? Have you done it? Would it have helped you?

Finally, Some Talk on Home Ownership; Will Action Follow?

Mon, 30 Jan 2012 03:00:00 GMT

By: Gavin Mathis

Published: January 26, 2012

In his third State of the Union address, President Barack Obama called on Congress to expand refinancing opportunities to millions of Americans.

It was nice to finally hear a politician talking about solving our housing market woes — the bull's-eye in terms of economic recovery.

Aiming to strike a populist chord with voters, President Barack Obama asked Congress Tuesday night during the State of the Union address to pass a mass refinancing effort that would help home owners take advantage of today’s lower mortgage rates.

“I’m sending this Congress a plan that gives every responsible home owner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates,” the president said. “No more red tape. No more runaround from the banks."

The proposal is an extension of the administration’s Home Affordable Refinance Program, which made it easier for home owners with loans owned or backed by Freddie Mac and Fannie Mae to refinance at record low interest rates. The proposal would broaden refinancing opportunities to home owners whose loans aren’t backed by the federal government.

To pay for the plan, Obama said that a small fee on the nation’s financial institutions would be implemented to ensure that the plan is deficit neutral.

Although Obama’s words were music to the ears of many home owners (especially since politicians on both sides of the aisle have been relatively mute on housing issues) — more needs to be done to help underwater home owners modify their loans and encourage banks to streamline the lending process. In the weeks ahead, Obama needs to leverage his refinancing proposal by emphasizing it on the campaign trail and letting every home owner know how easier rules and lower interest rates will help them.

Housing is a key driver of the economy. The NATIONAL ASSOCIATION OF REALTORS® estimates that for every two homes sold, one job is created. Plus, housing accounts for more than 15% of the U.S. gross domestic product. In past recessions, a rebound in housing has usually been one of the first signs that economic conditions are improving.

Besides stepping up refinancing efforts with banks, the president outlined the creation of a new mortgage fraud unit to investigate misconduct by lenders. “This new unit will hold accountable those who broke the law, speed assistance to home owners, and help turn the page on an era of recklessness that hurt so many Americans,” Obama said.

As we get closer to Election Day, the need for comprehensive housing solutions must not become just populist rhetoric in a speech. Effective housing policy is too important to too many Americans to be lost in election year jockeying.

In fact, housing and mortgage issues are make-or-break election issues for many voters and perilous territory for politicians. In a recent survey of voters, 60% believe dealing with mortgage and foreclosure issues is key to stabilizing the economy, including 57% of Republicans and 66% of Democrats.

The clearest way for Obama and his Republican opposition to prove to the American people that they’re fighting for the interests of their fellow Americans is to help home owners by making housing a priority.

What did you think of the comments President Obama made about housing issues and mortgage lending?

A Clean Slate

Tue, 24 Jan 2012 03:00:00 GMT

Clearing the nation's inventory of short sales and foreclosures will require fortitude and business savvy. Take an in-depth look at how practitioners are making distressed sales work.

January 2012 | By Ken Fears

Until the amount of distressed inventory returns to a normal level, under 5 percent, real estate pros face the unenviable task of clearing these sales as efficiently as possible.

Distressed listings typically sell for 15 to 20 percent below market value, which can cause a drag on home prices overall, according to data assembled by the NATIONAL ASSOCIATION OF REALTORS®.

The sharp price discount on today’s distressed sales is a symptom of an inbalanced housing market. In better times, a distressed property might be snapped up at market value. Consequently, the market needs stronger home sales volumes to reduce the number of homes on the market and to stabilize prices. As rising prices allow troubled and underwater home owners, who account for roughly 22 percent of mortgaged home owners, to refinance, their hopes are raised. Robust home sales and home price growth also breed confidence in the market for would-be buyers.

By far the best remedy for the ailing housing market is a stronger economy. Job growth and stock market gains are closely tied to consumer confidence, with consumers commonly citing concerns about jobs as the main reason for not purchasing a home.

Behind the Drag

Ongoing concerns that Europe’s debt crisis could spread and reduce domestic economic growth, a lack of consensus in Congress over the deficit reduction plan, and a major revision to economic growth in the first half of 2011 combined to send stocks on a roller coaster ride in the second half of 2011. In August, consumer confidence fell to its lowest level since the recession began in 2007, and neither businesses nor consumers appear willing to drive the economy. Indeed, job creation has averaged less than 150,000 jobs per month over the last year, below the amount needed to absorb college and high school graduates entering the workforce.

The economy isn’t the only factor restraining the demand for housing. Credit standards and down payment requirements have been ratcheted up in recent years at the FHA and government-sponsored enterprises, but banks have raised their standards even further in an attempt to limit potential lawsuits. As a result, FICO scores on loans backed by Fannie Mae rose from an average of 719 in 2005 to a peak average of 756 in the second quarter of 2011. Likewise, FICO scores on loans originated through the FHA averaged 632 in the second quarter of 2007 but reached 700 in the second quarter of 2011. And anecdotal evidence suggests that down payments greater than 20 percent are the norm outside of the FHA. Although traditional credit standards are a good thing, the pendulum has swung too far in this direction. Punishing quality borrowers for the mistakes of the past is not good for the health of the markets or the economy.

Another factor keeping the level of distressed properties high is the so-called “shadow inventory,” the cache of homes not yet on the market but already—or likely to end up—on the balance sheets of banks, the FHA, Fannie Mae, or Freddie Mac and thus for sale.

Rain Delay

On the bright side, both MLS inventories and shadow inventory showed signs of easing in 2011. In September 2011, an estimated 3.5 million homes appeared on MLSs across the country, 13 percent fewer than a year earlier. Meanwhile, from February 2010 to July 2011, the shadow inventory dropped from 1.9 million to 1.6 million, according to calculations by NAR researcher Selma Hepp. The reduced inventory was partly a result of firming home prices and employment growth that carried into 2011. Taken together, these factors lowered the national 90-day delinquency rate from 5 percent of all mortgages in the first quarter of 2010 to 3.5 percent in the third quarter of 2011. However, the foreclosure rate remains historically high. Not only that, the temporary moratorium on foreclosure sales by many large banks in the latter half of 2010 and early 2011 to correct processing problems held up the sale of a large number of properties that will eventually be sold.

In all, short sales rose by 26,000 last year while foreclosures fell by 255,000, according to Hope Now, a mortgage industry alliance. September 2011 marked the 12th straight month in which foreclosure activity decreased on a year-over-year basis, according to RealtyTrac. In October, however, filings spiked 7 percent from the previous month, and the month-over-month activity was much higher in the housing markets of California, Nevada, Arizona, and Florida, where the downturn was sharpest, as well as in markets where the judicial process held up foreclosure sales. In a Nov. 10 press release, RealtyTrac CEO James Saccacio said, “The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year."

Government programs aimed at helping struggling home owners haven't had the effect many hoped for, but some retooling is underway. In November, the Home Affordable Refinance Program program was revised with relaxed criteria that observers hope will double the number of home owners who’ll eventually benefit. Meanwhile, private loan modifiers have shifted their strategy to focus on reducing monthly payments; the share of loans that are six or more months in default 12 months after modification has improved, from 58.1 percent in 2008 to 26.6 percent in 2010.

It’s not too late to make distressed sales part of your repertoire. This special report looks at how these sales have changed since the wild, wooly days of 2008 and provides insights on how to run a successful short sale or foreclosure operation.

Ken Fears
Ken Fears is manager of regional economics for the National Association of REALTOR®.

Tax Rules Encourage Short Sales Sooner, Rather than Later

Fri, 20 Jan 2012 03:00:00 GMT

By: Dona DeZube

Published: January 18, 2012

Tax rules that let you escape paying federal income tax after a short sale expire this year.

If you can’t afford your mortgage and know you’re going to eventually have to sell your home via short sale, you might want to get going on that sooner rather than later.

If you complete your short sale in 2012, you won’t owe federal taxes on the transaction. If you wait until 2013, you could owe a hefty federal tax.

In a short sale, the lender lets you sell your house for less than what you owe on the mortgage.

For example:

You have $200,000 left on your mortgage.

You can sell your house for $150,000.

Your lender agrees to let you sell the house and takes $150,000 instead of the $200,000 you owe.

Your lender forgives the $50,000 difference between the $200,000 you owe and the $150,000 you sold your house for.

If you did the short sale in this example this year, you wouldn’t owe taxes on the $50,000 the lender forgave. That’s because in 2007 and again in 2008, Congress told the IRS to stop collecting taxes on forgiven debt until 2013.

Before the 2007 law passed, you had to pay federal income tax on forgiven debt. If your lender forgave $50,000, the IRS said that $50,000 was income. If you were in a 28% tax bracket you’d owe $14,000 (.28 x $50,000) in federal income taxes.

Here we are 12 months away from the deadline, and it’s anybody’s guess whether Congress will renew that no-taxes-on-forgiven-debt rule. It’s just one of literally trillions of dollars of tax benefits expiring at the end of this year, and there’s no signal yet as to what, if anything, Congress will do about any of them.

And if that’s not confusing enough, states have their own tax laws on debt forgiveness that you have to consider, too.

Silver tax lining for 2013?

If you end up having to short sale in 2013, you may be able to escape taxes another way. If what you owe all your creditors exceeds the value of everything you own, you may not owe tax. Read about the insolvency rule in Publication 4681. (Note: The IRS includes all your assets in determining if you’re insolvent before the short sale.)

Despite its name, a short sale often takes a long time to complete. To ensure you have short sale success before the tax rule changes, work with a real estate agent who has done short sales, promptly give your lender any paperwork it asks for, and pray for patience. You’ll need it.

Did you buy or sell in a short sale? How long did your transaction take?

Foreclosures fall to lowest level since 2007

Thu, 12 Jan 2012 03:00:00 GMT

By Les Christie @CNNMoney January 12, 2012: 8:18 AM ET

NEW YORK (CNNMoney) -- Foreclosure filings and repossessions fell to their lowest level since 2007 last year.

Total filings, including default notices and bank repossessions were down 33% for the year to 2.7 million, according to RealtyTrac, the online marketer of foreclosed properties.

One in every 69 homes had at least one foreclosure filing during the year, while 804,000 homes were repossessed. That's a significant improvement from the peaks reached in 2010 -- when 1.05 million homes were repossessed -- and the lowest levels seen since 2007.

More than 4 million homes have been lost to foreclosure over the past five years.

While the declines seem like good news for the housing market, where a flood of foreclosed homes has depressed home prices, much of it is due to processing delays caused by fall-out from the "robo-signing" scandal that broke in late 2010.

During the year, banks spent more time making sure paperwork was legal and proper, creating a backlog in the foreclosure pipeline. As a result, the average time it took to process a foreclosure climbed to 348 days during the fourth quarter, up from 305 days a year earlier.

"Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year," said Brandon Moore, chief executive officer of RealtyTrac.

However, Moore said there were "strong signs" during the second half of the year that lenders are working through foreclosure backlogs in certain markets. He expects foreclosure activity to rise above 2011's level but remain below the peak hit in 2010.

Low rates offer some help for homeowners

Early in 2011, many forecasters were predicting a wave of foreclosures due to resetting adjustable-rate mortgages, but low mortgage rates helped many borrowers refinance into more affordable loans, said Moore.

The government helped as well, through efforts like the Home Affordable Refinance Program (HARP), which made refinancing easier for borrowers who owe more on their mortgage than their homes are worth.

Government foreclosure prevention programs, including HARP and the Home Affordable Modification Program (HAMP), have started about 5.5 million mortgage modifications since April 2009, according to the U.S. Department of Housing and Urban Development.

"Programs like HAMP and HARP have definitely made a dent in the foreclosure problem," said Moore "However, they are certainly not living up to their billing of preventing several million foreclosures. In addition, many [HAMP] homeowners fall back into foreclosure later on."

Of course, there were still plenty of factors working against homeowners in 2011, including the continued erosion in home prices. Falling prices rob homeowners of home equity, which they can tap if they need emergency cash.

Foreclosure hot spots

Hot spots for foreclosures remain mostly in "bubble states," where speculative investors helped drive up home prices beyond their fundamental values during the mid-2000s housing boom.

Nevada, where one out of every 16 households received some kind of default notice during the year, was the worst hit of all, a distinction it has held for the fifth consecutive year.

Foreclosure free ride: 3 years, no payments

Arizona had the second highest foreclosure rate and California came in third. Florida, which had been running neck-and-neck with the other "Sand States" in past years, fell to seventh, behind Georgia, Utah and Michigan.

Among metro areas, Las Vegas suffered from the highest foreclosure rate in 2011. California put seven cities in the top 10, led by Stockton in the second slot. Other cities in the top 10 included Phoenix, which finished sixth, and Reno, Nev. was eighth.

How to Use Comparable Sales to Price Your Home

Sun, 08 Jan 2012 03:00:00 GMT

By: Carl Vogel

Published: August 5, 2010

Before you put your home up for sale, use the right comparable sales to find the perfect price.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?

Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights

Even if you live in a subdivision, your home will always be different from your neighbors'. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price

If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

Carl Vogel, a freelance writer and former editor of The Neighborhood Works magazine, lives in a home in Chicago that is not typical of those nearby, so he appreciates a savvy comp.

Solar Christmas Lights: Should You Make the Switch?

Mon, 12 Dec 2011 03:00:00 GMT

Published: December 01, 2011
By: Alyson McNutt English

Solar Christmas lights don’t cost anything to operate, but the high purchase price might not add up to savings.

In the last few years, energy-efficient LED Christmas lights have largely replaced more wattage-thirsty incandescent strings, resulting in significant savings — LED lights use 70% less energy than their incandescent predecessors, and they last up to 10 times longer as well.

Now there’s a new kid in the string-light neighborhood: LED solar Christmas lights are appearing at retailers around the country, promising grid-free festive lighting for holiday-happy consumers.

Powering up solar Christmas lights

A string of solar Christmas lights uses a small solar panel for power; there are no extension cords that must be plugged into outlets. The panel — about the size of a hockey puck — powers rechargeable batteries that illuminate a 25- to 100-bulb string of LED lights.

Panels come with small stakes so you can put them in the ground, where they can take advantage of the sun. A fully-charged string of lights should glow for 6 to 8 hours after the sun goes down.

Solar lights vs. LED plug-in costs

Most consumers expect new technologies to cost more, but if saving energy and money is your main reason for considering solar-powered LED holiday lights, solar lights may not offer enough cost-saving to offset the higher initial purchase price.

Compare purchase prices:

The average cost for a 100-light string of miniature solar-powered LED lights is about $0.30 per bulb, or about $30 per string.

The average cost for a 100-light string of miniature plug-in LED lights is $0.08 per bulb, or about $8 per string.

Compare costs to operate:

Operating a string of plug-in LED Christmas lights for 300 hours — more than enough hours for an entire holiday season — costs about $0.30, using an average energy cost of $0.11 per kilowatt hour.

Solar-powered Christmas lights, of course, don’t cost anything to operate. That means you’re saving 30 cents per year in energy costs.

Do the math, and you’ll see that it’ll take about 45 years for the energy savings from solar-power to equal the difference in purchase price between a plug-in string and a solar-powered string.

Advantages of solar lights

no extension cords

no need for exterior electrical outlets

withstand cold temperatures and precipitation

zero cost to operate

light output comparable to plug-in lighting

a green option

Disadvantages

higher initial cost to purchase

may not operate under cloudy skies

unproven longevity (too new on the market for results)

Top 10 Dream Home Features

Sun, 27 Nov 2011 03:00:00 GMT

Source: Macon Telegraph, 11/27/2011

If you were given a chance to design a dream home, what features would you choose first? Take a look at the most popular wish list in 2011 from Nudura, a leading firm in building technology:

Curb appeal. Home exterior, driveway, and landscaping must attract admiring attention.
Concrete and natural stone, rather than wood framing and brick. These homes (Nudura.com) are not only beautiful, they are stronger, more sound resistant, and far more energy efficient than wood frames and brick.
Maximum energy efficient throughout from top to bottom.
Solar panels in the roof to generate a personal energy source.
A large, designer kitchen with natural stone countertops and futuristic appliances, cabinetry and waterworks.
Natural hardwood flooring like Brazilian cherry and sustainable bamboo.
A sunroom, a front porch, and a backyard finished patio.
Vessel sinks, or free-standing bowls above the bathroom countertop, accompanied by wall-mounted faucets.
Bedroom walk out or balcony.
Designer bathtubs and walk0in shower with marble tile, a seating bench and rainfall showerhead.

At Jon's Custom Homes, we include these ameneties into our homes. We pride ourselves with building energy efficient homes that exceed the GA Energy Efficient Code. Visit us online at Jons Custom Homes or call us about our energy compliant homes.

Friday Five: Housing Gets Spotlight; Foreign Buyers to the Rescue

Mon, 07 Nov 2011 03:00:00 GMT

By: Gavin Mathis

Published: November 4, 2011

In this week’s top news, the president and the Federal Reserve go on the offensive to help the housing market, but do their plans have what it takes to get the job done?

Last week, President Obama announced an executive order to help home owners refinance their mortgages, and now the Federal Reserve is considering measures to reduce borrowing costs. Is housing finally getting the attention it deserves? Read the top housing news, including more on the bipartisan housing commission and how foreign home buyers could help our economy, in this week’s Friday Five.

Huffington Post: Housing is Back on the National Agenda

Last week, President Obama and Ed DeMarco, the overseer of Fannie Mae and Freddie Mac, announced their intention to remove barriers that have kept working home owners from refinancing home loans into low-interest rates. Huffington Post blogger Janis Bowdler thinks this looks promising for Latino families and home owners.

Bloomberg Businessweek: Bernanke Housing Rebound May Hinge on Access to Refinancing

Federal Reserve Chairman Ben S. Bernanke can’t go it alone when it comes to reviving the U.S. housing market. Federal policymakers are considering buying mortgage-backed securities to push down borrowing costs and help home owners refinance their debt.

U.S. News & World Report: Can Foreign Buyers Save the U.S. Housing Market?

Ultra-low and declining home prices are a headache for home owners, but they might also be the key to healing the housing market as foreign investors snap up real estate bargains in the United States.

HouseLogic: Housing Commission: A Sign Policymakers Finally Get Home Ownership?

Reaching consensus in Washington is more difficult today than ever before, but the housing crisis is too big of an economic burden for a new bipartisan commission to get bogged down in politics.

NPR: Official: No 'Silver Bullet' to Solve Housing Crisis

The White House says it will help millions of people hold onto their homes through a government-backed modification program. But critics are skeptical the plan will be a success, in part because of the dependence on the goodwill of banks to voluntarily join up. Raphael Bostic, the assistant secretary for Policy Development and Research at the U.S. Department of Housing and Urban Development, tells NPR that he doesn't think there is a "silver bullet" for solving the housing crisis.