Category: Real Estate

Survey: 5M Renters Have Fallen Prey to Online Scams | Realtor Magazine

More than 43 percent of renters say they’ve found online rental listings that seemed fraudulent, and more than 5 million say they’ve actually been scammed—sometimes to the tune of thousands of dollars—according to a new report released by rental website ApartmentList.com.

 

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Renters may be less diligent in researching apartments when feeling the urgency to move, says Igor Popov, chief economist at Apartment List. “There are lots of cases where there’s a lot of urgency in the rental market, especially in some of the really supply-concerned markets that are out there, where you have 10 renters fighting for one available apartment,” Popov told CNBC. “In reality, there’s a lot of urgency, and I think scammers can also sometimes prey on this.”

The survey revealed that the most common scam is a “bait-and-switch” one, where a different property is advertised than the one that is actually available. The scammer is often able to collect a deposit or get a lease signed for the fake property. Another common scam is the “hijacked ad,” where a scammer takes a home that is legitimately for sale and poses as a fake landlord to collect funds. Apartment List also warns of a growing scam in which a listing property that is already leased is posted online. The scammer then attempts to collect application fees or security deposits from an unsuspecting consumer.

“I think what really surprised us was just the prevalence of the different variety of scams out there,” Popov says. “It is surprising how many people have fallen for these types of scams. Over 5.2 million renters out there have either put down an application fee, or a security deposit, or maybe even first month’s rent, usually sight unseen.”

Median Age of Maturing U.S. Housing Stock is 37 | Realtor Magazine

The median age of owner-occupied homes in the U.S. is 37, indicating that more properties may become pricier to maintain as they grow older and vulnerable to disrepair, according to the 2016 American Community Survey.

 

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But builders view the aging housing stock as an opportunity. Rising home prices may prompt more households to spend more on home improvement, the National Association of Home Builders notes on its Eye on Housing blog. Further, “this indicates a strong rising demand for new construction over the long run, as current owner-occupied housing stock is older,” the NAHB writes.

More than half of the owner-occupied homes were built prior to 1980, and 38 percent before 1970. Sixteen percent of the housing stock was built between 2000 and 2009. The 3 million units that came to the market between 2010 and 2016, however, added only 4 percent to the owner-occupied housing stock.

A decline in new construction has prompted the share of homes that are six or fewer years old to fall greatly since 2006, according to the NAHB. Meanwhile, the number of homes that are 46 years old or older has jumped from 31 percent in 2006 to 38 percent in 2016.

Home Inspection Tips, Cost and Benefits of a Pre-Listing Home Inspection

Getting beyond the home inspection is sort of like advancing to the next level in a video game.

When you get past this step, you get to advance to a fresh, exciting place — your new home, to be exact.

In Every Inspection, There Are Stakes for Buyers and Sellers

Once the buyer has made, and you’ve accepted, the offer, your home will get the once-over from the buyer’s home inspector. The inspection is usually a contingency of the offer, meaning the buyer can back out based on serious problems discovered. The lender also expects an inspection to make sure it’s making a good investment. Makes sense, right? 

During the home inspection, an inspector will examine the property for flaws. Based on the inspector’s report the buyer will then give you a list of repair requests. 

Your agent will work with you to negotiate those requests. Don’t want to be responsible for a repair? (Maybe it’s best if the buyer has the fix made by their own contractor anyway.) Your agent may be able to negotiate a price credit with the buyer instead. 

By the way, inspections aren’t necessarily a big, scary deal. Your agent will help advise you about repairs you need to make before the inspection. In fact, she may have made those recommendations to you even before you put the home on the market. And if you’ve been maintaining your home all along (and you have, right?), your punch list may be minimal.

In addition, back when you put the home on the market, you were required to disclose to buyers the home’s “material defects” — anything you know about the home that can either have a significant impact on the market value of the property or impair the safety of the house for occupants. Material defects tend to be big underlying problems, like foundation cracks, roof leaks, basement flooding, or termite infestation.

What a Home Inspection Covers Depends on the Home

Every home is different, so which items are checked during your property’s inspection may vary. But home inspectors typically look at the following areas during a basic inspection:

• Plumbing systems
• Electrical systems
• Kitchen appliances
• Heating, ventilating, and air conditioning (HVAC) equipment
• Doors and windows
• Attic insulation
• Foundation and basement
• Exterior (e.g., siding, paint, outdoor light fixtures)
• Grounds

Depending on the sales contract, the purchase may also be contingent on a roof inspection, radon inspection, or termite inspection.

What a home inspection won’t cover is the unseen. Your inspector isn’t going to rip open walls or mountaineer on the roof. (Though that would be kind of exciting to watch.)

 

So What Do You Need to Fix?

A home inspection report is by no means a to-do list of things that you must address. Many home repairs, including cosmetic issues and normal wear and tear, are negotiable. 

There are, however, three occasionally overlapping types of repairs that sellers are typically required to deal with after a home inspection:

1. Structural defects. This is any physical damage to the load-bearing elements of a home; these issues include a crack in the foundation, roof framing damage, and decaying floor boards.
2. Safety issues. Homes for sale have to meet certain safety standards. Depending on where you live, safety issues that you, the seller, may have to address could include mold problems, wildlife infestation, or exposed electrical wiring.
3. Building code violations. Building code violations — such as the absence of smoke detectors, use of non-flame retardant roofing material, and use of lead paint after 1978 — must be addressed by the seller.

Again, addressing these might take the form of a credit on the pirce, which in the case of structural issues could be sizeable. 

Use This Checklist to Prepare for a Home Inspection

So, are you ready for the inspection? If you take these steps (with your agent’s assistance) you will be: 

• Assemble your paperwork. Transparency is key. Ideally, you’ll have summaries or invoices of renovations, maintenance, and repairs you’ve done on your home that you can provide to the home buyer. Create a file that collects this documentation and share it with the buyer.
• Make sure your home is squeaky clean. Your home should be pristine when the inspector arrives — a good first impression will set a positive tone. Take time to declutter and deep clean the whole house. A deep clean (stuff like cleaning the range hood and upholstery and sanitizing garbage cans), averages between $200 and $400, according to Angie’s List, depending on the size and condition of your home. 
• Remove any obstacles that may block  Does the Inspector Have a View?Make sure to rake up leaves and brush from the home’s foundation so the inspector can get a good view of the grounds, grading, and exterior. the inspector’s access. Take measures to ensure the inspector has complete access to all facets of the property, including electrical panels, attic space, and fireplaces. This may require temporarily moving clothing and other items that impede access.
• Leave the utilities on. For the home inspector to test items such as the stove, dishwasher, furnace, and air conditioning system, the utilities must be connected regardless of whether the house is vacant; otherwise, the inspector may need to reschedule, which can potentially push back closing. 
• Fix minor problems ahead of time. Many cosmetic issues — say, a broken light fixture or a scratch on the wall — are minor and easy to fix, but they can make buyers more concerned about how well you’ve maintained other areas of the home. It’s best to take care of small problems yourself before the buyer’s inspection.

It’s a Good Idea to Do Your Own Inspection Before the Inspection

Some sellers choose to hire their own home inspector to check the property before their house is even listed. This is called a “pre-listing inspection,” and it has several advantages:

• It can give you time to fix deal breakers. Granted, a pre-inspection costs money — a basic inspection is about $315, with condos and homes under 1,000 sq ft. costing as little as $200 and homes over 2,000 sq ft. running $400 or more, according to HomeAdvisor.com. That said, it can enable you to address major issues that could cause a buyer to pull out of their offer. Big problems may include mold, water damage, or foundation cracks. 
• It can mean fewer surprises — and help you market your home. Knowing what needs to be fixed in your home in advance will enable you to be upfront with buyers about any big pre-existing issues, which can give buyers peace of mind. You can also make it known to prospective buyers that consideration for those items has already been factored into the sales price.
• It can speed up the negotiation process. Having a pre-listing inspection can help reduce, or even eliminate the time-consuming process of having back-and-forth negotiations.

If you discover any material defects to the property in a pre-listing inspection, you are legally required to disclose them to buyers — even if you fix them. Also there’s no guarantee that the buyer’s own inspection won’t reveal things yours didn’t find. The choice to do a pre-listing inspection is yours, but it never hurts to get a head start on repairs.

Be Aware of These Tried-and-True Tactics for Negotiating Repairs

When it comes to repairs, your agent will haggle with the buyer’s agent for you — though it’s ultimately your decision as to how you want to respond to the buyer’s home repair requests.

Here are four time-tested negotiating techniques that your agent may deploy to protect your best interests — without reducing the sales price:

1. Agree to make reasonable repairs. Unless your house is flawless — and the reality is that no one’s is — be prepared to receive repair requests from the buyer. You don’t have to offer to fix everything that buyer asks of you, but you should take responsibility for major issues.
2. Offer a closing cost credit. Don’t want to deal with the hassle of making or ordering home repairs yourself? Ask your agent to offer the buyer a credit at closing for the estimated costs. This can also help you avoid complaints from the buyer over the quality of the workmanship, since you won’t be the one overseeing the repairs.
3. Barter. One way to smooth things over with a buyer and keep the deal moving forward is to offer something of value that’s unrelated to the requested repairs. For example, if you know the buyer loves the new couch or bedroom set you bought, you could offer to leave it behind in exchange for making fewer repairs.
4. Leverage the market. You may have more negotiating power depending on where you live. In a hot seller’s market, for instance, you might be in the position to offer the buyer fewer repairs, especially if you have another buyer eager to make an offer. 

Home inspection may sound like a burdensome process, especially when you’re so close to your goal. But when you cross it off your list, you’re readier than ever to jump to the next level — and into your life’s newest phase.

Kitchen Countertops | Countertops Cost | Kitchen Counters

Want a hardworking countertop that fits your budget? We took a look at six of the most-durable kitchen countertops based on a recent “Consumer Reports” test.

After a thorough exam, we’re ready to let you in on why you should — or shouldn’t — install them in your kitchen.

#1 Quartz Kitchen Countertop ($40 to $100 per square foot)

The durability winner is quartz, the man-nature combo countertop. Crushed quartz stone is mixed with resin to produce countertops that range from solid colors to the look of real granite, but they’ll beat natural stone in toughness.

Pros

Quartz is almost indestructible under normal kitchen prep conditions. It laughs at knife cuts, and, unless you take a sledgehammer to it, it won’t chip or crack. It’s stain- and bacteria-resistant, and it doesn’t require sealing.

Cons

You pay a lot for quartz, and it’s not as heat-resistant as less-pricey materials like granite and crushed glass. Seams can be noticeable, especially if you use lighter colors, and it can discolor over time in direct sunlight.

Also, quartz can look ultra-contemporary and cold, so it may not be the best choice for a traditional-style kitchen.

#2 Granite ($40 to $100 per square foot)

Granite is still considered one of the top must-have home features, according to a survey of prospective homebuyers from the NATIONAL ASSOCIATION OF REALTORS®. Its natural beauty often is eye-popping, and granite easily fits in any style kitchen.

Pros

Granite is tough. It resists cracks and chips, and you can place a hot pot on it without catastrophe. If you apply sealer annually, granite stands up to stains. 

Cons

It’s tough but not indestructible. An accidental clunk with a wine bottle can put a chip in the edge, which you’ll have to polish down. If you don’t seal religiously, oil can seep into the stone and you’ll have to apply a poultice to get it out.

Design-wise, granite can be unpredictable. Natural variations in stone can result in countertops that don’t look exactly like the sample. Also, it can be hard to hide seams in granite countertops, so be strategic about where you put them.

#3 Crushed (Recycled) Glass ($60 to $120 per square foot)

This relative newcomer to the countertop market is as stunning as it is durable. Glass is recycled from beer bottles, traffic lights, and windshields, making it an eco-friendly countertop choice.

There are two basic styles to choose from: When set in acrylic, the glass looks like it’s floating in a lake; when set in cement, the glass creates a shimmery mosaic. 

Pros

Crushed glass counters don’t chip, scratch, stain, or burn. They’re nonporous, so they don’t need sealing, like granite. Crushed glass doesn’t fade over time, like quartz.

Cons

If you place something heavy on the corner of a crushed glass countertop, it may crack. Acidic foods, like citrus juices, can eat away at the acrylic if you don’t wipe them away quickly. 

Price can be a “con.” Where you can pick up a low-end granite for $40 per square foot, crushed glass starts at $60.

#4 Laminate ($10 to $40 per square foot)

Laminate kitchen countertops are a paper-plastic product that tops several layers of Kraft paper with a resin impregnated with near infinite colors and patterns. 

Pros

The price is right for this chameleon-like product that can mimic everything from wood to granite. It doesn’t need any special sealers or cleaners, and it’s stain resistant. 

Cons

Laminates crack, scratch, and scorch more easily than the countertop materials it resembles. It’s also a bear to repair.

More important, many buyers avoid laminate in droves. A study from the National Association of Home Builders says that 40% of prospective homebuyers would be unlikely to buy a house with laminate counters.

#5 Tile ($5 to $30 per square foot)

Tile countertops can look crafty or contemporary, making them a beautiful and versatile countertop material.

Pros

Tile is tough and easy to clean. It resists cuts, stains, and heat. And if a tile cracks, it’s easily replaced. 

Tile also comes in an infinite number of colors and styles. You can mix and match to achieve a unique look that makes your counter one of a kind.

Cons

Tile easily cracks if skillets and pots are accidentally dropped on it. It’s an uneven surface that can make glasses, plates, and cutting boards wobbly and unstable. 

Unlike stone surfaces, you can’t roll out dough on a tile countertop. And grout lines are common catchers of dust and grime; if you don’t keep up on annual sealing, they’re a great medium for bacteria growth.

#6 Solid-Surfacing ($35 to $100 per square foot)

You probably know it as Corian, but that’s just one manufacturer of this solid-surface countertop that’s made from acrylic, polyester resins, and even marble dust. 

Pros

Solid-surfacing comes in many patterns and colors. It’s nonporous and doesn’t require special sealers or cleaners. Scratches are easily sanded out. It can be molded to include a seamless backsplash or integrated sink bowl.

Cons

It’s pricey, and it doesn’t have the charm of granite or quartz. It scratches and burns easily. Plus, it’s made of non-renewable resources, it’s energy-intensive to manufacture, and it’s difficult to recycle — not a great “green” choice.

Home Buyer and Seller Generational Trends | www.nar.realtor

Highlights

Since 2013, the National Association of REALTORS® has been writing the Home Buyers and Sellers Generational Trends Report. This report provides insights into differences and similarities across generations of home buyers and home sellers. The home buyer and seller data is taken from the annual Profile of Home Buyers and Sellers.

• Millennials are the largest share of home buyers at 36 percent. Sixty-five percent of these buyers were also first-time home buyers.
• Gen Xers consists of 26 percent of recent home buyers. They are the most racially and ethnically diverse population of home buyers, with 26 percent identifying they are a race other than White/Caucasian.
• Younger Baby Boomers consist of 18 percent of recent buyers. They have higher median household incomes and are more likely to have children under the age of 18 in their home.
• Older Baby Boomers consist of 14 percent of recent buyers. They typically move the longest distance at a median of 30 miles and are less likely to make compromises on their home purchase.
• The Silent Generation are 6 percent of recent buyers. They are least likely to purchase a detached single-family home. Twenty-eight percent purchased in senior-related housing and they tend to purchase the newest homes.
• All generations of buyers continue to consult a real estate agent or broker to help them buy and sell their home.

Dip in Rates Provides ‘Stability’ for Home Sales | Realtor Magazine

 

 

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Borrowers saw a little relief from recent increases. Mortgage rates dropped slightly this week, with the 30-year fixed-rate mortgage averaging 4.59 percent, Freddie Mac reports.

“This stability is much needed for home sales, which have crested because of the multiyear run up in prices, tight affordable inventory, and this year’s higher rates,” says Sam Khater, Freddie Mac’s chief economist. “Going forward, the strong economy will support the housing market, but with affordability pressures mounting, further spikes in mortgage rates will lead to continued softening in home price growth.”

Home prices are still climbing and rates are up from 3.90 percent a year ago. “Some prospective buyers are definitely feeling an affordability crunch,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 9:

• 30-year fixed-rate mortgages: averaged 4.59 percent, with an average 0.5 point, dropping from last week’s 4.60 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
• 15-year fixed-rate mortgages: averaged 4.05 percent, with an average 0.5 point, falling from last week’s 4.08 percent average. A year ago, 15-year rates averaged 3.18 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.90 percent, with an average 0.3 point, falling from last week’s 3.93 percent average. A year ago, 5-year ARMs averaged 3.14 percent.

Another ‘Client’ to Please: The Family Pet | Realtor Magazine

Home buyers are increasingly being swayed by their pets when choosing which property to purchase. Three-quarters of home buyers say they would even pass up an otherwise perfect home—their dream home—if it did not meet their pets’ needs, according to a new realtor.com® survey of more than 1,000 consumers who’ve closed on a home in 2018.

“It’s heartwarming to find that people will put their pets’ needs first, even when it comes to one of the biggest financial decisions they will ever make,” says Nate Johnson, chief marketing officer for realtor.com®. “This survey shows that we really do consider pets part of the family—and that their needs are a critical part of finding the perfect home.”

Pet owners comprised 80 percent of recent home buyers—with dogs and cats being the most common types of pet—according to the survey. Younger buyers and those with children appeared to be the most influenced by their pets’ needs when shopping for a home, according to the survey.

Pet owners gave their two most desired features in a home: a large backyard and outdoor space. Other top features pet owners say they valued in a home included a garage, large square footage, a dog run, sturdy flooring, and close proximity to outdoor spaces.

No Housing Recession Over the Horizon | Realtor Magazine

Media reports are increasingly focused on whether a major home sale slowdown, or maybe even a crash, is in the making, in part because many hot housing markets are seeing slackening buyer demand, and nationally 2018 is expected to end with fewer home sales than 2017. But the possibility of a crash is unlikely, says Lawrence Yun, chief economist for the National Association of REALTORS®.

 

In a piece he contributed to Forbes, Yun says hot markets are seeing a slowdown not because of weak buyer demand, which could be an indicator of a true slowdown, but insufficient supply. When homes come on the market, especially in areas like Seattle and Denver that have strong job growth and little unemployment, they are typically snapped up.

In other positive signs, home price growth remains strong in markets across the country—about 5 percent on a nationwide basis so far this year—and there are no signs of the credit excesses that characterized the housing crisis 10 years ago. “Lending standards today are still stringent, as evidenced by the higher-than-normal credit scores of those who are able to obtain a mortgage,” Yun says. “That is why mortgage default and foreclosure rates are at historic lows.”

In short, Yun says, today’s housing problem stems from insufficient inventory. The supply problem is driving up home prices and worsening affordability and keeping sales from matching demand. That is a serious problem and the answer is to encourage builders to increase supply, Yun says, but it is not a prelude to a crash.

Apartment Rents Just Jumped Higher in Most Cities | Realtor Magazine

Apartment rents climbed in 88 percent of the 250 largest U.S. cities, with the national average rent reaching an all-time high in July, RentCafe reports. Seasonal demand and a rise in rental activity has offset a wave of new apartments that have opened up this year, the national rental listing service notes.

The national average rent climbed to a record high of $1,409 in July, up 2.8 percent year over year.

The largest apartment rental increases were in Orlando (7.7 percent year over year); Las Vegas (6.4 percent); and Phoenix (6.2 percent). On the other hand, the slowest growing rents were in San Antonio, Texas (1.6 percent); Manhattan (1.7 percent); and Washington, D.C. (2 percent).

“The apartment industry has experience significant supply growth nationwide in cities with substantial job growth, expanding public transport and changing land use policies,” says Doug Ressler, director of business intelligence at Yardi Matrix. “Demand is split between affordable apartments and luxury class apartments, with an increasing need for workforce housing.”

 

© RentCafe

Hike in Mortgage Rates Erases Affordability Relief | Realtor Magazine

 

 

© REALTOR® Magazine

 

Borrowers got stuck with higher mortgage rates again this week. The 30-year fixed-rate mortgage climbed for the second consecutive week, averaging 4.6 percent. Mortgage rates are now at their fourth highest level of the year, Freddie Mac reports.

“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” says Sam Khater, Freddie Mac’s chief economist.

The Federal Reserve this week voted to hold off on raising its short-term rate, “but the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in the coming months,” Khater adds.

Even with home price growth easing slightly in some markets, Khater notes that mortgage rates hovering near a seven-year high will certainly create affordability challenges for prospective buyers looking to close on a home purchase.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 2:

• 30-year fixed-rate mortgages: averaged 4.60 percent, with an average 0.4 point, rising from last week’s 4.54 percent average. Last year at this time, 30-year rates averaged 3.93 percent.
• 15-year fixed-rate mortgages: averaged 4.08 percent, with an average 0.4 point, increasing from last week’s 4.02 percent average. A year ago, 15-year rates averaged 3.18 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.93 percent, with an average 0.2 point, rising from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.15 percent.