Category: Real Estate

Differences Between a Furnace and a Boiler | Home Matters | AHS

Furnaces and boilers are the same … or are they? Both heat homes, but they do it differently. Learn how they differ and the pros and cons of furnaces and boilers.

A heater is a heater is a heater, right? So is a boiler a furnace — are the names interchangeable? Or are they two different types of heaters? If so, what is the difference between a furnace and a boiler? Read on to find out.

How do boilers and furnaces heat your home?

Among all the heating options available for a home, “boilers” and “furnaces” are likely the most recognizable terms. Most people tend to refer to their heating units with the term “furnace,” but a furnace is, however, totally different from a boiler. The main difference between the two? How they heat your home. While a furnace heats air and then circulates that air throughout the home, a boiler, conversely, heats water that is then circulated throughout the home. Often, after a furnace heats the air, a blower then forces it through ducts. The warm air is then released through vents or registers throughout the home. With a boiler, a circulator pumps the heated water through pipes throughout the house that heat baseboards or radiators The water eventually returns to the unit and the cycle begins again.

Related: 9 Safety Tips For Your Furnace and Boiler

Is one heater generally preferred over the other?

Just like any other major home appliance, there are many pros and cons to consider when choosing a heating system. It all boils down (no pun intended) to what makes the most sense for you and your household. For instance, although a furnace may be louder and may not retain the warmth as long (causing it to turn on and off more frequently), initial installation is much less expensive than for a boiler, and the forced-air heating system is often compatible with central air conditioning. Likewise, although a boiler may be more expensive initially, it provides more energy efficiency, comfortable humidity levels, even temperatures and better indoor air quality (since it doesn’t blow air around and require a filter).

Which heater is more costly: a furnace or a boiler?

When comparing maintenance costs and energy efficiency of furnaces and boilers, it appears that boilers are the better choice. Although they’re usually more expensive to install, they typically use less fuel, saving you money on your monthly bills, and they don’t require the purchase of filters. However, two major drawbacks of boilers are the possibility of leaks and frozen pipes. Since the pipes are full of water, if a leak occurs, it could cause significant damage to your home, resulting in costly repairs. Likewise, if your power goes off and the temperatures are freezing outside, the water could freeze in the pipes, causing them to burst and cause extensive damage, as well.

What is hydro air?

Want the best of both heater worlds? Consider a hydro air system: a system that combines hot water and hot air. Here’s how it works: first, a hot water boiler generates heat. Then the water is pumped into an air handler unit. From there, a blower passes air over the then-heated coils and distributes that air through a duct system. The best part? You get pros from both types of heating units and that same ductwork can be used for an air conditioning unit.

 

Buyers Rush to Lock in Before the Holidays | Realtor Magazine

Home buyers were taking out mortgages in higher numbers last week. Applications to purchase a home increased 5 percent and are now 4 percent higher than the same week one year ago, the Mortgage Bankers Association reported Wednesday.

But higher home prices appear to be pushing more buyers toward adjustable-rate mortgages, the MBA reports. ARMs tend to carry lower initial interest rates. The ARM share of total mortgage applications is now 8 percent higher than a year ago.

The interest rate on the 30-year fixed-rate mortgage increased from 4.18 percent to a 4.2 percent average, the MBA reports. The higher rates caused a pullback from current homeowners, with applications to refinance dropping 5 percent last week, which is down nearly 26 percent from a year ago. Despite the slight uptick, rates are slightly lower than a year ago. This is the first time rates have been below their year-ago average in 2017, the MBA reports.

The decrease in refinance applications prompted the overall MBA loan index—which reflects refinance and home purchase demand—to basically remain flat this week, inching up just 0.1 percent for the week, the MBA reports.

Townhouse Market Attracting More Buyers | Realtor Magazine

Townhouse construction continues to post gains as home shoppers are lured to the sector.  Single-family attached housing comprised 26,000 of total housing starts during the third quarter of 2017, according to Census data. That is 18 percent higher than a year prior, the National Association of Home Builders reports in its analysis.

The share of new townhomes now stands at 11.8 percent of all single-family starts, NAHB reports. Still, the peak market share for townhomes over the past two decades was in the first quarter of 2008. At that time, the share reached 14.6 percent of total single-family construction.

During the Great Recession, the townhome sector saw a sharp drop in demand. But that is now turning around and expected to continue, builders predict.

“The long-run prospects for townhouse construction are positive given large numbers of home buyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities,” says NAHB Chief Economist Robert Dietz.

Home Sales Are Rising Despite Supply Woes | Realtor Magazine

Existing-home sales in October rose to the strongest pace since earlier this summer, the National Association of REALTORS® reported Tuesday.

Total existing-home sales—which comprise completed transactions of single-family homes, townhomes, condos, and co-ops—rose 2 percent month over month to a seasonally adjusted annual rate of 5.48 million. Sales are now at the strongest pace since June’s 5.51 million.

However, sales remain 0.9 percent below a year ago, NAR reports. Continual supply shortages have led to fewer closings on an annual basis for the second consecutive month.

“Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,” says Lawrence Yun, NAR’s chief economist. “While the housing market gained a little more momentum last month, sales are still below year-ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.”

Lower sales are still evident in parts of Texas and Florida from Hurricanes Harvey and Irma, Yun notes. He predicts that sales will rebound to their pre-storm levels by the end of the year “as demand for buying in these areas was very strong before the storms.”

October Snapshot

Here’s a closer look at existing-home sales in October, according to NAR’s report:

• Home prices: The median existing-home price for all housing types in October was $247,000, up 5.5 percent from a year ago.
• Inventory: Total housing inventory at the end of October dropped 3.2 percent to 1.80 million existing homes available for sale. Inventory is now 10.4 percent lower than a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, down from 4.4 months a year ago.
• All-cash sales: All-cash transactions comprised 20 percent of sales in October, down from 22 percent a year ago. Individual investors make up the biggest bulk of cash sales. They accounted for 13 percent of sales in October, unchanged from a year ago.
• Distressed sales: Foreclosures and short sales accounted for 4 percent of sales in October, down from 5 percent a year ago. Broken out, foreclosures comprised 3 percent of sales and short sales made up 1 percent.
• Days on the market: Forty-seven percent of homes sold in October were on the market for less than a month. Properties, on average, stayed on the market for 34 days in October, down from 41 days a year ago.

6 Outdated Features in Your Clients’ Homes | Realtor Magazine

Home buyers say they want the latest design trends in their next property—but 70 percent admit to having outdated features in their current house, according to a new consumer survey by home builder Taylor Morrison. The most common of these outdated features are:

1. Linoleum floors (40 percent)
2. Popcorn ceilings (29 percent)
3. Wood paneling (28 percent)
4. Ceramic tile countertops (28 percent)
5. Shag carpeting (19 percent)
6. Avocado green appliances (8 percent)

“This is why real and virtual house hunting is so popular,” says Taylor Morrison Chair and CEO Sheryl Palmer. “We all love to daydream and envision ourselves in a beautiful new environment. But keeping up with ever-evolving preferences for paint colors, home features, new technologies, and how we expect to use our homes over the years is difficult. We also know that home interior preferences vary by generation, by home style, by region, and even by city.”

Taylor Morrison found that the features home buyers say they most desire are:

1. Better energy efficiency (62 percent)
2. Personalized floor plans (58 percent)
3. Easier maintenance (56 percent).

Also, the interior features home shoppers called most essential are:

1. Wood flooring (65 percent)
2. USB and Ethernet ports (44 percent)
3. Whirlpool tub (36 percent)
4. Sun room (34 percent).

House Passes 5-Year Flood Insurance Extension | Realtor Magazine

The House passed legislation Tuesday to reauthorize the National Flood Insurance Program for five years, which would include reforms. But because the bill—which is backed by the National Association of REALTORS®—still needs Senate approval, it’s unclear whether the long-sought five-year extension will be passed before Dec. 8, when the NFIP is set to expire. Lawmakers could instead pass another short-term extension to give them time to debate NFIP reforms and pass a long-term reauthorization.

NAR President Elizabeth Mendenhall said REALTORS® want to work with lawmakers to avoid a lapse in the program. “REALTORS® know first-hand what happens when the NFIP expires, and it isn’t good for consumers, businesses, or our communities,” she said.

Flood insurance is required for any property that’s in a flood zone and has a federally related mortgage. Any loan backed by Fannie Mae, Freddie Mac, the FHA, the VA, or the Rural Housing Services is a federally related mortgage.

The House bill is called the 21st Century Flood Reform Act, and the measures it provides include:

1. An authorization of $1 billion in new money to elevate, buy out, or mitigate high-risk properties.
2. A cap for flood insurance premiums at $10,000 per year for homeowners.
3. Removal of hurdles to the private flood insurance market, which often offers better coverage at a lower cost than the NFIP.
4. Provisions for community flood maps and a homeowner’s ability to appeal their flood designation.
5. Better alignment of NFIP rates to match a property’s true risk, particularly for inland and lower-value properties.
6. Improvement of the claims process for flood victims.
7. Provisions for properties that are repeatedly flooded, which account for 2 percent of NFIP policies but 25 percent of claim payments.

“We appreciate the leadership that members of Congress have shown passing sound reforms, which will strengthen the program, protect property owners, and deliver good results for taxpayers,” Mendenhall said.

5 Trends the Housing Market Will Regret | Realtor Magazine

Home buyers say tight inventory and rising home prices are causing several negative trends in the housing market. According to ValueInsured’s latest Modern Homebuyer Survey, a quarterly report based on more than 1,000 responses, buyers say the following trends will leave the housing market in a weaker position:

1. The “no inspection” trend: 58 percent 
2. The “offer sight unseen” trend: 57 percent 
3. The “co-buying with strangers” trend: 54 percent 
4. The “cashing out from retirement savings” trend: 37 percent 
5. The “tiny home” trend: 36 percent

Mortgage Rates Rise to 4-Month High | Realtor Magazine

 

 

The 30-year fixed-rate mortgage reached its highest average since July this week.

“The 10-year Treasury yield ticked up 6 basis points, while the 30-year mortgage rate jumped 5 basis points to 3.95 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Today’s survey rate is the highest rate in nearly four months.” 

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 16:

• 30-year fixed-rate mortgages: averaged 3.95 percent, with an average 0.5 point, rising from last week’s 3.90 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.5 point, rising from last week’s 3.24 percent average. A year ago, 15-year rates averaged 3.14 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.21 percent this week, with an average 0.4 point, falling slightly from last week’s 3.22 percent average. A year ago, 5-year ARMs averaged 3.07 percent.

6 Extra Costs In A Home Buyer’s Budget | Realtor Magazine

Most home buyers put in the effort to save for their down payment, but that is only a fraction of the cost they should expect for homeownership. There are many other lesser-known costs that can sometimes come as a shock to buyers. Make sure your home shoppers plan accordingly for the following extra expenses, including:

Earnest money: The amount of earnest money required varies by state and local market. In a slower market, $500 to $1,000 might suffice. But a home with multiple bids may require a larger deposit of 2 percent to 3 percent of the offer price. Reassure buyers that the earnest money they put down will go toward the purchase of the home. To avoid being scammed, experts recommend making sure buyers receive a receipt and confirm the deposit is payable to a reputable third party, such as a real estate brokerage, legal firm, escrow company, or title company.

Inspection fees: Home inspections aren’t required prior to closing, but they are highly recommended in the real estate industry. The typical inspection may cost between $300 to $500, according to the U.S. Department of Housing and Urban Development. The home inspector may be able to spot any problems in the home and may be able to prevent a more costly repair later on.

Closing costs: These costs cover things like notary services, title company search fees, attorney expenses, real estate transfer taxes, insurance premiums, and more. Again, these vary by state and on the value of the property. Financial experts recommend setting aside 2 percent to 5 percent of the purchase price for closing costs. These funds must be available on closing day.

Mortgage reserves: Home buyers shouldn’t close on a home without a dime left in the bank. They’ll likely be required to show extra personal financial reserves, which are accessible liquid assets available to withdraw from after their mortgage closes. Lenders have different requirements, and some may not require it. But many lenders often want to see some type of assets left to show that buyers can continue to make mortgage payments even if they face a financial setback.

Moving costs: The cost of hiring a moving company or renting a truck can add up, too. And buyers will want to buy new furniture or items to decorate their home, so those costs will need to be factored in as well.

Maintenance costs: Many financial experts recommend putting aside 1 percent of a home’s value per year for maintenance expenses. On a $250,000 home, for example, that would mean budgeting $2,500 annually.

Kitchen Updates That Don’t Require a Remodel | Realtor Magazine

You can do these upgrades without major remodel work!!!!

• Install under-cabinet lighting. This simple project is low in cost and leaves a big impact, giving the whole kitchen a beautiful glow. Try LED rope lights that plug into an outlet or battery-operated single lights.
• Clear the counters. This is imperative for sellers. Change out the dish drying rack for a smaller dish drain that fits over one side of the sink.
• Create kitchen zones. For example, set aside space for a “breakfast zone” where the coffeemaker and toaster sits along with a fresh fruit basket and napkins.
• Rethink cabinets. If your clients are considering an update, cabinets that reach the ceiling are an ideal use of space. But if that’s out of the question, clear off the dusty tops and declutter the space so there’s visible storage. Place an indoor, shade-friendly plan to add some life to the space.
• Choose one appliance to update. Consider the kitchen space itself and what would have the most impact. If the kitchen opens into a family room, a quieter new dishwasher could be a game changer for some buyers.