Category: Real Estate

Couple Loses $130K Down Payment in Wire Scam | Realtor Magazine

 

A Kansas City, Mo., couple lost their entire $130,000 down payment on a home purchase from a money wire scam that has been increasingly targeting real estate transactions.

NAR Resources: Protecting Your Business and Your Clients From Cyberfraud

 

Ross and Melinda Fulton were purchasing a home to live closer to their daughters and new granddaughter in the Kansas City area. Ross, a retired pastor of 46 years, and Melinda found the perfect home in Independence, Mo., and were planning to pay for it with cash.

They received an email from someone they thought was their real estate agent. The message was sent from an iPhone and was signed with their agent’s name. As reported by KSHB-41 Kansas City, the email read:

Hello Ross and Melinda, In preparation for your closing on the 30th of November. The closing balance will be required to be wired 26th of November. I would like to know if you will be able to perform the wire on the 26th, so I can inform (actual title company’s name).

Melinda replied that they’d be bringing their checkbook. She then received this message back, again signed by her real estate agent:

Hello Melinda, Due to the increasing incidence of fraud with certified bank checks, we will require all funds needed for closing to be tendered in the form of a wire transfer. We no longer accept certified checks as good funds.

The Fultons wired the money. The money is now gone with little chance of getting it back.

“It looks as though someone had been monitoring our emails with our REALTOR®, and at the important time entered in and gave us instructions for wiring money to a bank account representing the title agency and we followed those instructions with our bank and sent the money away,” Melinda told KSHB-41. The scammer knew the address of the home they were buying, their REALTOR®’s name, email address, title company’s name, and closing date.

Warn your clients that this could happen to them, too, and make sure they take the proper precautions. Paul Hentzen, the couple’s attorney, offers the following tips:

1. Verify wire fraud directions through a phone call.
2. Watch email addresses closely. The Fulton’s case did show a slight difference in the email address of their agent. KSHB-41 included an example, with the names changed, of how the scammer’s email address was different: johnsmith@comcast.com (real) vs. johnsmith.comcast@mail.fr (fake)
3. Watch for any syntax errors such as words missing, or differences in how the person has talked or communicated to you previously. Hentzen provides the following example of syntax errors: “The closing balance will be required to be wired 26th of November. I would like to know if you will be able to perform the wire on the 26th, so I can inform”

Protect your transactions by reading more guidance from the National Association of REALTORS®: Protecting Your Business and Your Clients From Cyberfraud

2018 Trends: How the Hottest Design Fads Evolved | Realtor Magazine

 

Let’s face it: Looks matter to home buyers who are trying to make a connection with a property. Even in a competitive seller’s market, which characterized real estate in 2018, proper staging is essential to getting homes sold. Staging can even increase a property’s value by up to 5 percent, according to the National Association of REALTORS®’ 2017 Profile of Home Staging, the latest report available. Did you catch on to any design trends this year to improve your listing’s appearance? These were the hottest staging styles and tips of 2018 featured in REALTOR® Magazine’s Styled Staged & Sold blog.

1. Dos and Don’ts of Hiring a Home Stager
The right professional stager needs to complement your selling strategy, support your sellers’ goals, and be able to work with the home’s existing decor. Audra Slinkey, president and founder of Home Staging Resource, breaks down the questions you should ask a stager and how to judge his or her professional experience to make sure it’s a good fit for your listing.

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2. Jaw-Dropping Transformations of Outdoor Spaces
Home buyers are increasingly judging the livability of patios, terraces, and other outdoor entertainment areas. These spaces—not matter how small or large—can be a selling point, so it would be wise to explore outdoor staging for your listings. As an example, see how this once-drab outdoor space became a central entertainment area that extended the home’s appeal.

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3. By the Numbers: Home Features Buyers Sprung for in 2018
Open floor plans remained all the rage, while smart homes grew in popularity. Having a pulse on the latest design trends can help you anticipate what buyers will be seeking in their next home. Were you on top of the styles that took center stage this year? Refresh your memory with these infographics; you never know—they may spill over into 2019 home design trends.

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4. The Secret to Kitchen Envy: A Stylish Island
The star item of many kitchen makeovers is the center island. It’s not only a gathering spot for cooking but also for eating, working, and socializing. To make it even more of a focal point, many homeowners are freshening up the look of their islands, moving from traditional colors to eye-popping designs. These stylish examples will inspire you and your clients.

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5. Before and After: How Staging Makes the Difference
When staging a home, there’s a lot to consider: the potential buyer’s needs, the original purpose of the space, the layout, and the latest design trends. The wrong furnishings can make a space feel cramped. Professional stager Patti Stern offers her best insights—along with before and after visual examples—for how to stage in a way that will attract the largest buyer pool.

 

Net-Zero Growth Could Drastically Reduce Energy Use | Realtor Magazine

More homes may soon be energy-free. Homes and commercial buildings consume 40 percent of all energy used in the U.S., but the growth of net-zero homes could drastically curtail that. The Zero Energy Ready Homes—those that make the energy they use—are becoming more of a reality.

© William_Potter – iStock/Getty Images Plus

In 2017, 8,547 units of net-zero housing or zero-already housing had been built in the U.S. About 38,863 were under construction, according to the Net-Zero Energy Coalition.

The growth of net-zero is expected to get a big boost when California’s new law takes effect in 2020, which will require all new homes to be net-zero. (Commercial buildings must meet that deadline by 2030.) The European Union must meet that same goal by 2020 for all new buildings in Europe.

New technologies have reduced in price over the past decade, which has helped to make net-zero homes more possible. 

“Costs are changing quickly,” Alisa Petersen, a senior associate at Rocky Mountain Institute, an energy and environmental think tank, toldThe Wall Street Journal. “You don’t have to throw every efficiency measures at a home to make it net-zero.”

Net-zero homes are sealed tightly against drafts and are well-insulated to prevent heat leaks through the walls, windows, and doors. An energy recovery system helps prevent stale air, humidity, and mold issues. Solar panels are a big part of net-zero homes, too. The interiors of net-zero homes tend to be quieter and freer of pollution than conventional structures. 

Net-zero homes provide luxury and energy efficiency, says Sam Bargetz, co-founder of the architecture firm Loadingdock5 based in Brooklyn, N.Y. “It’s much quieter than a regular building, and it’s dust-free,” Bargetz says.

Survey: Why First-Time Buyers Chose Their Homes | Realtor Magazine

Do you believe in love at first sight? Many house hunters do: They describe stepping inside a house and instantly feeling like it’s “home.” But was it the price, the amenities, or the location that attracted them? Home improvement website Porch.com surveyed nearly 1,000 consumers about their first home purchase to find some of the top factors that influenced their buying decisions.

Aesthetic appeal, affordability, commute time, and neighborhood character were the top draws, according to the survey. Sixty-seven percent of baby boomers and 61 percent of Gen Xers say affordability was the most important factor when searching for their first home. Millennials also placed a high priority on finding a home within their budget, as well as renovated bathrooms.

Whether the home was move-in ready also was a powerful influencer, respondents say. “We know home renovations can get pricey, and one thing that appeals to potential first-time home buyers is finding a home where the kitchen and bathrooms are fresh and up to date,” according to Porch.com’s study.

 

© Porch.com

 

“Emotions obviously play an important role in purchasing a first home,” according to the Porch.com survey, which finds that Gen Xers were the most emotionally driven when deciding which home to purchase. Twenty-one percent of Gen Xers—more than both millennials and baby boomers—mentioned the importance of their partner falling for the right house.

 

© Porch.com

Credit Score Boost? Cellphone, Utility Payments Soon to Get Factored In | Realtor Magazine

Millions of consumers may soon see a boost to their credit scores, which could help when applying for a mortgage. One of the largest credit-reporting firms in the U.S., Experian PLC, announced it will give consumers the option to have their cellphone and utility payments factored into their credit scores early next year. About 46 million consumers who have limited credit data could instantly see an increase to their credit scores from the new data being added in, according to Experian.

 

Oliur – Unsplash

 

This marks the first time consumers will be able to have such data factored into their credit reports and scoring. It follows on the heels of several other changes. Fair Isaac Corp., the creator of the FICO credit score, will soon be launching a new credit score with Experian that will take into account a consumer’s history managing their checking and savings accounts. That move also could give consumers a boost to credit scores for those who at least keep several hundred dollars in their accounts and don’t overdraw.

Also, all three major credit reporting firms—Experian, Equifax, and TransUnion—have all recently removed negative information, like tax liens and judgments, from consumers’ credit reports. This move has also helped lift many consumers’ credit scores.

Experian’s latest change, named Experian Boost, will allow consumers to opt in and link the bank accounts they use to pay their phone and utility providers to Experian. The company can then track their monthly payments to utilities, cellphone, and landline phone and cable TV accounts. It will not track missed payments, according to The Wall Street Journal. Experian will delete the account from its credit report if consumers stop paying their bills for three consecutive months from the accounts linked to Experian Boost. Consumers’ scores will then be recalculated without the additional account. In such cases, that could then cause a drop to the credit score.

How to Keep Your Home Safe During the Holidays | Realtor Magazine

While people focus on spending time with family and friends, shopping for gifts, and traveling during the holiday season, it’s also important for them to pay attention to keeping their homes safe.

Without putting a damper on the holiday spirit, here are some simple precautions from Brian Collins, a writer for Hippo, an InsurTech company, that you can share with your clients.

 

© Arman Zhenikeyev/Getty Images

 

If you’re home for the holidays:

• Track all your online orders and make sure you’re aware of delivery times and days. Do your best to be home to receive packages when they are scheduled to arrive.
• Even when you’re home, it’s wise to keep all doors locked.
• Keep in mind that gifts under the tree can attract thieves. If you do put gifts out, keep them away from windows.
• Burn or cut up packaging for expensive gifts before discarding it. Some thieves will dig through trash for clues about what valuables may be inside your home.
• When shopping online, shop at websites you trust, create strong passwords for your accounts, pay with credit cards for more liability protection, and be very wary of email scams (don’t open attachments from people or businesses you don’t know).
   

Read more: Brokers Offer Tips for the Ultimate Holiday Gifts

If you’re away for the holidays:

• Web-based security cameras are the best method to remotely monitor your home. You can see who is coming and going, when packages are delivered, and othre activity that occurs when you’re away.
• Leave a key with a neighbor or make copies for family and friends instead of hiding it outside your home., where a would-be home invader might find it.
• Don’t make announcements on social media that you will be leaving for the holidays.
• Wait until you return home to make holiday-related posts online, and don’t post your location while you’re away.
• Put your lights on a timer and have them turn on during hours when you would ordinarily be home, so your home doesn’t appear unoccupied.
• Make sure mail and packages are held for you until your return.
• Record the make, model and serial number of your valuables (artwork, electronics, firearms, etc.) and photograph or make a video log of your jewelry and other important belongings. Stolen property is much easier to recover if you have solid identifying information.
• Tell a neighbor or friend when you’re going to be out of town, and have them drop by to check on your home.
   

Fire Prevention

According to the National Fire Protection Association, unattended cooking appliances are the leading cause of house fires in the United States, with Christmas Day and Christmas Eve among the times when these kinds of fires most frequently occur. Decorations, such as candles, are also to blame for many fires in homes.

Here are some tips to help clients to stay safe:

• Keep a close eye on your oven and stove when cooking.
• If possible, opt for a freshly cut Christmas tree, since natural trees are more fire-resistant than artificial ones. Also, be sure to keep your tree watered and away from open flames, radiators, or space heaters. If you’re shopping for an artificial tree, make sure it is labeled as “fire-resistant.” Never use candles to decorate Christmas trees.
• Avoid putting wrapping paper, which can ignite suddenly and burn intensely, in your fireplace.
• Ensure your flue is open before igniting a fire, and remove any decorations from around the fireplace.
• Test your smoke alarms and keep exits from your home clear.
• Don’t overload your circuit breaker or extension cords.
• When you leave the house or go to bed, turn off all your holiday lights to avoid a potential fire.

FHA Raises Loan Limits for 2019 | Realtor Magazine

The Federal Housing Administration has announced that most of the country will see an increase to loan limits in the new year. The loan limit for lower-cost areas will be set at $314,827—or 65 percent of the national conforming loan limit of $484,350. In high-cost areas, the new FHA limit for 2019 will increase to $726,525, up from $679,650. The new loan limits will take effect Jan. 1.

The FHA sets single-family forward loan limits at 115 percent of median home prices, which is subject to a ceiling on limits. For the past few years, the FHA has been increasing loan limits in a greater number of counties. In 2016, the FHA raised loan limits for 188 counties. In 2019, 3,053 counties will see an uptick in FHA loan limits. View the FHA’s letter on 2019 forward mortgage limits.

 

Low Mortgage Rates Make for Surprising Holiday Gift | Realtor Magazine

Mortgage rates moderated this week after posting a big drop last week, and the Federal Reserve’s decision on Wednesday to raise its short-term key interest rate hasn’t had much on an effect on rates. (The Fed’s key rate is not directly tied to mortgage rates, but does often influence it.) 

How Will the Fed’s Vote to Raise Rates Impact Mortgages?

“The response to the recent decline in mortgage rates is already being felt in the housing market,” says Sam Khater, Freddie Mac’s chief economist. “After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. This modest rebound in sales indicates that home buyers are very sensitive to mortgage rate changes—and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 20:

• 30-year fixed-rate mortgages: averaged 4.62 percent, with an average 0.4 point, dropping slightly from last week’s 4.63 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.4 point, unchanged from last week. A year ago, 15-year rates averaged 3.38 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.98 percent, with an average 0.3 point, falling from last week’s 4.04 percent average. A year ago, 5-year ARMs averaged 3.39 percent.

Median Down Payments Reach Nearly 15-Year High | Realtor Magazine

Home buyers are bringing more money to the closing table. The median down payment on single-family homes and condos purchased with financing in the third quarter was $20,250—up 7 percent from the previous quarter. The median down payment as a percentage of the median home sales price was 7.6 percent in the third quarter—the highest percentage since the fourth quarter of 2003, according to ATTOM Data Solutions, a real estate data provider.

Among the 96 metro areas ATTOM tracked, the cities with the highest median down payments as a percentage of the median home sales price were:

·       San Jose, Calif. (24.7%)

·       San Francisco (23.3%)

·       Los Angeles (20.6%)

·       Oxnard-Thousand Oaks-Ventura, Calif. (19%)

·       Fort Collins, Colo. (18.6%).

 

Biggest Regrets of First-Time Home Buyers | Realtor Magazine

Buying a home that was too small is the biggest regret among first-time home buyers, according to a new survey by Porch.com, based on about 1,000 surveyed consumers about their mistakes when buying a home. Not saving enough money before buying is another main concern cited in the survey.

 

The first-time buyers surveyed, on average, went over budget by $3,615 in their first year of homeownership. Within their first-home budget, they spent the most money on new appliances, a new roof, a new furnace or air conditioning, and landscaping. Forty-eight percent of first-time buyers said they did not set aside enough money for their first year of ownership.

© Porch.com

“Purchasing a first home is not only expensive but can be emotionally exhausting,” Porch.com researchers note in the study. After a home purchase—despite a few regrets—most buyers, however, are satisfied with their purchase, the survey found. Baby boomers were the most satisfied with the purchase of their first home at 22 percent, followed by millennials and Generation Xers at 17 and 15 percent respectively. More buyers said they were “mostly satisfied” (47 percent for baby boomers; 53 percent for Generation X; and 49 percent for millennials).

© Porch.com