Buying Verses Renting - Its REAL!

The ironic thing about people who think they can’t afford to buy a home for themselves, end up buying the home for their landlord. There are several facts that support this notion.
Mortgages, whether held by an owner-occupant or an investor, are usually amortized so that each payment reduces the principal amount owed so that the loan will be repaid totally over the term. A tenant is inadvertently retiring the landlord’s mortgage with his monthly rent.
In most cases, the mortgage payment including taxes and insurance will be lower than the rent tenants are paying. Some experts are saying that we may never again experience the incredibly low mortgage interest rates currently available.
Renting precludes a person from enjoying the advantage a home has as a leveraged investment. When the borrowed funds cost less than the investment is returning, the rate of return on the down payment grows much faster. As you can see from the chart, a 2% appreciation on a home could result in big returns on the down payment. In most cases, there are very few or no alternative investments that offer homeowners similar returns.
Even if a buyer agrees with all of these things but doesn’t have the down payment or cannot qualify for a loan, they still need to investigate further. To find out exactly what types of loans are available and the specific down payment required which can be a whole lot less than 20%, they need to consult with an experienced, trusted loan professional (an Internet lender or a “BIG” bank may not be the best choice.) Call for a recommendation.

Tax benefit you or your loves ones should know about.

Special consideration is made by IRS for the sale of a jointly-owned principal residence after the death of a spouse. Surviving spouse may qualify to exclude up to $500,000 of gain instead of the $250,000 exclusion for single people if certain requirements are met.

• The sale needs to take place no more than two years after the date of death of the spouse. 
• Surviving spouse must not have remarried as of the sale date. 
• The home must have been used as a principal residence for two of the last five years prior to the death.  
• The home must have been owned for two of the last five years prior to the death.
• Survivor can count any time when spouse owned the home as time they owned it and any time the home was the spouse’s residence as time when it was their residence.
• Neither spouse may have excluded gain from the sale of another principal residence during the last two years prior to the death.

If you have been widowed in the last two years and have substantial gain in your principal residence, it would be worth investigating the possibilities. Time is a critical factor in qualification. Contact your tax professional for advice about your specific situation. Contact me to find out what your home is worth in today’s market. See IRS Publication 523 – surviving spouse.

Real Estate Photos Are Extremely Important

Listing photos may be one of the most important marketing efforts that lead to a potential buyer.
Nearly, all buyers use the Internet during the home search process. They usually start looking at homes online before they contact an agent. It’s far more efficient to screen properties by looking at the pictures that have been posted than to make appointments with each homeowner, drive all over town and waste a lot of time looking at homes that would never meet a buyer’s criteria.

• There needs to be enough pictures of a property to adequately represent the home; most websites allow for at least 24 and more may be needed if it is a large home.
• Take horizontal shots to accommodate the format of most listing websites.
• The pictures should be well-lit so that it is easy to see all of the features of the room. Natural light is preferred over the limitations of flash.
• They should be taken with a wide-angle lens so that you can see the majority of the room in one picture.
• Large rooms can be taken from different angles to give the buyers a different perspective.
• Rooms should be set if not staged prior to taking the pictures so they will give the buyer an idea of what the room might look like with their own things in it.
• Arrange pictures in website to help buyers visualize the floorplan as if walking through it.
• Think about using a tripod; professionals do to absolutely hold the camera still.
• They should definitely not be “photoshopped” to modify factual elements like removing power lines.

Everyone occasionally takes a great picture but it doesn’t make them a photographer. Since the photography can be one of the most important marketing efforts, consider using a professional photographer to show the home to its best advantage.

Refi? Should you or should you not!

It is estimated that seven million out of 50 million homeowners could save money by refinancing their existing mortgages. Obviously, if the replacement mortgage has a lower rate than your existing one, you will save money.
If you bought a home before 2011 and are paying mortgage insurance, you should investigate refinancing to eliminate that requirement. Even if you don’t get a lower interest rate, the savings could amount to hundreds of dollars a month.
If a home you purchased since 2011 has appreciated enough, it could easily justify refinancing to eliminate the required mortgage insurance. Most loans don’t require mortgage insurance if the loan-to-value is 80% or less. There are some programs for 90% mortgages that don’t require mortgage insurance. It is certainly worth investigating with a trusted mortgage professional.
Continuing to pay mortgage insurance that could be eliminated is like having a broken cell phone and continuing to make the monthly payments for something you can’t use and don’t need.
If your current mortgage is several years old, instead of getting a new 30 year mortgage, you might consider a 15-year term. The money you save with a lower interest rate could help you to retire your loan in a shorter time so that your home would be paid for.

Millennials Are Taking Over!

Survey Finds Younger Buyers Taking Over

DAILY REAL ESTATE NEWS | WEDNESDAY, MARCH 11, 2015 

A new survey released today suggests concerns about younger buyers waiting in the wings are overblown. The 2015 National Association of REALTORS® Home Buyer and Seller Generational Trends study, which evaluates age-based differences of recent home buyers and sellers, found that the Millennial generation represented the largest share of recent buyers.

This was the second consecutive year that NAR’s study found that the largest group of recent buyers came from those who were 34 and younger, comprising 32 percent of all buyers in 2014 and 31 percent in 2013. Buyers aged 35 to 49, often considered part of Generation X, followed closely behind with a 27 percent share of 2014 sales. Millennial buyers represented more than double the amount of Baby Boomer buyers.

“Over 80 percent of Millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by Millennials for their purchase,” says Lawrence Yun, NAR chief economist. “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.” 

The survey also found that fears over younger consumers using the Internet to bypass real estate professionals aren't necessarily credible either. While an overwhelming majority of all buyers (88 percent) search for homes online, most then purchase their home through a real estate agent, with Millennials using agents the most, at 90 percent.

“Nothing can replace the real insights and guidance REALTORS® deliver to help consumers navigate the complex buying and selling process,” says NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark.

Methodology: NAR mailed a 127-question survey in July 2014 using a random sample weighted to be representative of sales on a geographic basis. A total of 6,572 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 9.4 percent. The recent homebuyers had to have purchased a home between July of 2013 and June of 2014. 

Still, challenges remain for these younger buyers. Yun says their share of purchases would be higher if not for the numerous obstacles they face: “Many Millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a downpayment. For some, even forming households of their own has been a challenge.” 

The survey also found these common characteristics of younger buyers in 2014:

• The median age of Millennial homebuyers was 29, their median income was $76,900 (up from $73,600 in 2013) and they typically bought a 1,720-square foot home costing $189,900 ($180,000 a year ago).
• The typical Gen X buyer was 41 years old, had a median income of $104,600 (up from $98,200 a year ago) and purchased a 1,890-square foot home costing $250,000 (same as last year).
• Generation X buyers were the most likely to be married (68 percent), and Millennial buyers were more likely (compared to other generations) to be part of an unmarried couple (14 percent).
• On their primary reason for purchasing a home, a desire to own a home of their own was highest among Millennials at 39 percent. A change in a family situation – likely the birth of a child – was the highest (13 percent) among Gen X buyers. 
• The share of Millennials buying in an urban or central city area increased to 21 percent in the past year (19 percent a year ago), compared with only 12 percent of older boomers.
• In terms of neighborhood choice, Millennials were most influenced by the quality of the neighborhood (75 percent) and convenience to jobs (74 percent). Convenience to schools was most desired by Gen X buyers.

Source: "NAR Generational Survey: Millennials Lead All Buyers, Most Likely to Use Real Estate Agent," NAR (March 11, 2015).

Lee County area residential sales in January increase 10% from prior year

Lee County area residential sales in January increase 10 percent from prior year

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By Alabama Center for Real Estate (ACRE) 
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on February 27, 2015 at 11:48 AM, updated February 27, 2015 at 11:57 AM

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Click here to view or print the entire January report compliments of the ACRE Corporate Cabinet.

Sales: Lee County area residential sales totaled 66 units in January, an increase in sales growth of 10.0 percent or 6 units above the same period last year. 2014 sales increased 7.7 percent from the prior year.
Forecast: January sales were 4 units below our monthly forecast. The Center's 2014 sales forecast projected 1,344 closed transactions while the actual sales were 1,378 units, a favorable variance of 2.5 percent.

View full sizeLee County residential sales increase 10% in January from last year. Housing Inventory has been favorably reduced by 41% from the January 2011 peak. Infograph courtesy of ACRE. All rights reserved.Alabama Center for Real Estate (ACRE) 

Supply: The Lee County housing inventory in January was 817 units, a decrease of 2.0 percent from January 2014 and 41.3 percent from the month of January inventory peak in 2011 (1,393 units).
January inventory in Lee County did increase 1.9 percent from the prior month. This direction contrast with historical data indicating that January inventory on average ('10-'14) decreases from the month of December by 5.6 percent.
The inventory-to-sales ratio in January was 12.4 months of housing supply. Restated, at the January sales pace, it would take 12.4 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 9.0 months during the month of January.
Demand: January residential sales decreased by 34.7 percent from the prior month. This direction is consistent with seasonal buying patterns and historical data indicating that January sales on average ('10-'14) decrease by 48.6 percent from the month of December. Existing single family home sales account for 56 percent (up from 52% in Jan'14) of total sales while 30 percent (up from 28% in Jan'14) were new home sales and 14 percent (down from 20% in Jan'14) were condo buyers.
Pricing: The Lee County median sales price in January was $178,700, a 9.2 percent decrease from last January. The January median sales price also slipped 6.2 percent compared to the prior month. Historical data ('10-'14) indicates that the January median sales price traditionally increases from the month of December by 4.5 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate and we recommend contacting a local real estate professional for additional market pricing information.
Industry Perspective: "Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Consumers are more optimistic about the environment both for buying and for selling a home today, and the share who plan to own on their next move has jumped back up, reversing a three-month trend toward renting. These results are in line with lender optimism about future growth in their mortgage origination business, as shown in our Mortgage Lender Sentiment Survey™. Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery." For full report, go HERE.
See how Lee County compares to other Alabama real estate markets.

2014 Summary Recap - Sales Up 8%

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The Lee County Residential Monthly Report is work product developed in conjunction with the Lee County Association of REALTORS to better serve Opelika/Auburn consumers. The ACRE monthly report is provided to illustrate the "general" market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for "specific" advice associated with your market.
The foundation of the Lee County Association of REALTORS is to promote and enhance the success of its members through education, professionalism, and ethical conduct.
The Alabama Center for Real Estate's core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach. ACRE was founded by legislative act in 1996 due to the efforts of the Alabama Real Estate Commission, the Alabama Association of REALTORS and the Office of the Dean, UA Culverhouse College of Commerce to serve the State of Alabama real estate industry and the consumers it serves. ACRE is not a state-funded entity, rather its operates in part because of the goodwill & generosity of the ACRE Corporate Cabinet, Alabama real estate licensees and our statewide ACRE Partners. For other Alabama real estate resources & news, please visit our website and our ACRE blog. You can also follow ACRE from our facebook page and on twitter @uaacre.

REALTOR.com Architecture Guide

Architecture Guide

Residential Styles | Structural Elements

Guide to Residential Styles

Know of a style you don't see here?

Let us know.

Every house has a style. Sometimes it has two or more; because of renovations and new, eclectic mixes, fitting a home into one specific category can be daunting or even impossible. Thankfully, there’s no need to memorize complicated architectural terminology. REALTOR® Magazine has compiled a convenient compendium of common styles. Delve in and learn to highlight the details that give a home character, history, and romance.

Residential Styles

ART DECO	BUNGALOW	CAPE COD	COLONIAL	CONTEMPORARY	CRAFTSMAN
CREOLE	DUTCH COLONIAL	FEDERAL	FRENCH PROVINCIAL	GEORGIAN	GOTHIC REVIVAL
GREEK REVIVAL	INTERNATIONAL	ITALIANATE	MONTEREY	NATIONAL	NEOCLASSICAL
PRAIRIE	PUEBLO	QUEEN ANNE	RANCH	REGENCY	SALTBOX
SECOND EMPIRE	SHED	SHINGLE	SHOTGUN	SPANISH ECLECTIC	SPLIT LEVEL
STICK	TUDOR	VICTORIAN

HOUZZ: Dream Spaces: 12 Beautiful White Kitchens

Dream Spaces: 12 Beautiful White Kitchens

Snowy cabinets and walls speak to a certain elegance, while marble counters whisper of luxury

Lisa Higgins

Houzz Contributor. I am a longtime design editor/writer based in New York... More 

Crisp, clean white kitchens with gleaming marble counters and backsplashes are everywhere you look these days. It’s easy to see why: White makes a space look bigger and airier, and enhances other design elements. Wood floors look richer against white, pendant lights stand out as sculptural elements, and stainless steel appliances sparkle. Adding marble to the mix introduces a luxurious touch.

That said, there are drawbacks to this kind of simple elegance. A white kitchen demands upkeep; all that white isn’t going to stay clean without maintenance. And marble is definitely not for everyone. It’s soft and porous, so it scratches and stains easily, and acidic foods can cause surface etching. Marble aficionados learn to love the patina (or live with the patina) that time brings. If you can’t abide the inevitable signs of wear and tear, consider alternative materials, such as quartz. 

But if you’re ready to take on the challenge, or just want to do a little daydreaming, check out the collection assembled here. You won’t be disappointed.

Tour dozens of white Kitchens of the Week

Crisp Architects

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Big and beautiful, this kitchen has it all, from original wide-plank oak floors to expanses of beautifully designed and fitted cabinetry. Note the netted-glass Sorenson Lanterns and the French café stools around the island, with its columned legs and Carrara marble top. The textural backsplash is done in a skinny pencil tile fashioned from Bianco Carrara marble.

Melissa Miranda Interior Design

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This petite, light-filled brownstone kitchen in Boston almost has a feminine feel, with its silvery Bertazzoni range hood and its filmy pendant drum shades. White Calacatta marble wraps around the island and is used on the counters, while Calacatta subway tiles adorn the backsplash. Floor-to-ceiling windows flood the space with sunlight.

Carrara vs. Calacatta: What’s the Difference?

Renaissance Design Studio

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Gleaming white Carrara marble counters take center stage here. But this kitchen is as functional as it is glamorous. There are seven seats at the peninsula and the island, so the cook never has to feel left out of the party. Other nice touches: the discreet wine fridge, the built-in paper towel holder next to the sink, the old-fashioned station clock, and bell-jar pendant lights. The maple cabinets are by Wood-Mode and are painted Nordic White.

Chelsea Atelier Architect, PC

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Clean and sleek, this modern kitchen — with its stunning waterfall marble island — is in a Manhattan loft. Four iconic white Norman Chernier stools provide seating, and the lighting comes from delicate glass pendants. A dark floor adds contrast, allowing each of the elements to pop.

Green Couch Interior Design

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The marble island, fashioned out of Calacatta Oro Extra, makes a splash here — especially when paired with the heavy-metal industrial-style stools. Two pendants (from Arteriors) with striking carved wooden shades provide light and pizzazz.

Molly Frey Design

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Benjamin Moore’s White Dove covers the cabinets and beadboard walls of this Cape Cod kitchen. The Carrara-topped table/island is paired with slipcovered Pottery Barn stools and two delicate mercury glass honeycomb pendant lights. The handsome floors are oak with a dark Jacobean stain.

Croma Design Inc

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Who needs custom cabinetry? These glossy white beauties are from Ikea (Akurum Abstrakt) and are accented with angular dark bronze pulls from Rocky Mountain Hardware. The showstopping herringbone marble backsplash is fashioned out of 2- by 8-inch Calacatta Michelangelo tiles. HanStone quartz (Aurora Snow) covers the countertops.

The lesson here? It’s OK to splurge in some areas and save in others.

Liz Schupanitz Designs

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White works beautifully with gray, as evidenced by the silvery backsplash in this Minnesota kitchen (made from Encore 3- by 6-inch silver ceramic tiles). The custom cabinetry — including the island, with its artfully turned legs — is painted in Benjamin Moore’s Simply White. Honed Calacatta marble covers the counters and island top, while the warm wood floors (by Stang-Lund) are walnut with a hard-wax-oil finish.

Green Couch Interior Design

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Marble rules in this modern kitchen — Calacatta Oro runs along the counters and up the backsplash; the island is Thassos. The “whitewashed” floor (stained with Rubio Monocoat) picks up the gray striations in the stone.

There’s a quartet of three-legged swivel stools (available from Arteriors) at the island, and oversize pendants from Visual Comfort.

Sarah Gallop Design Inc.

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There are two kinds of marble in this Vancouver kitchen: 3- by 6-inch Cararra subway tiles on the backsplash (accented with gray grout) and a more pristine Statuario on the counters and that beautiful island. The cabinets are painted in Benjamin Moore’s Simply White.

Pickell Architecture

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This warm and welcoming kitchen, with its gleaming wood floors (long-plank fir finished with Minwax’s Puritan Pine), features an island covered in Calacatta gold marble. (Note the storage cabinets tucked behind the bar stools.) Other nice touches: the two large Hudson Valley Haverhill brushed-nickel pendants, classic Philippe Starck Emeco brushed-aluminum bar stools and contrasting gray countertops of Pietra del Cardoso.

LKM Design

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In this pretty New Hampshire farmhouse kitchen, a blue wall adds interest, as do the silver lamps on the counter (the cords are transparent). Although they’re unorthodox, the lamps work with the white furniture-like cabinetry, Carrara marble counter and antique nickel pulls. As one wise Houzzer has pointed out, “Cabinetry is just furniture — put a lamp on it if you want.” I second that sentiment!

More photos: Browse thousands of white kitchen designs

White not for you? Tour dozens of inspiring colorful kitchens

Using White Marble: Hot Debate Over a Classic Beauty

Dream Spaces: 14 Fabulous Indoor-Outdoor Bathrooms