A note on the numbers: The recommended dimensions and clearances are based on national building and design industry guidelines. You can—and should—adapt them to your own size, circumstances, and preferences. Just be sure to comply with local building codes to ensure your safety.
Some spaces just feel good, and you can't put your finger on why. Chances are, it's because everything is where it should be: Handles are easy to reach, drawers open unobstructed, there's light where you need it. The key is knowing the right numbers. Whether you're starting fresh or just adding a few upgrades, your home is sure to measure up.
A note on the numbers: The recommended dimensions and clearances are based on national building and design industry guidelines. You can—and should—adapt them to your own size, circumstances, and preferences. Just be sure to comply with local building codes to ensure your safety.
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Just because you have been pre-approved and have your future dream under contract doesn’t mean you can sit back and assume the home is yours. While most of the hard work is done, there are still some things you need to avoid to not have delays in your journey to home ownership. Check out our website for more Home Buying Tips.
Don’t apply for a new Credit Card! Remember that when you apply for a ner credit card it can be BAD and look poorly on your credit rating. WAIT. Don’t buy a new car! If you would like to live in a new car instead of the dream home, then go ahead and pich one up. Don’t go furnish the home before you own it! We all know you already have picked out that new couch, entertainment center and flat screen TV. Avoid buying them until after close on your home. Avoid changing jobs! Although job changes can provide better pay or a chance for advancement. It could delay your quest for home ownership. Don’t close any credit accounts! It make sense to clean up your finances by canceling unused credit cards and transferring balances to other cards to get a lower interest rate when you’re offered them. Don’t do it! This can be a bad move for your credit score. Don’t get behind on payments! Make sure you stay on top of your credit card and rent payments. Don’t move money without a paper trail! Your lender is going to need documentation for all your transactions to make sure you really have enough money. Don’t spend your savings! You’re going to need cash for down payment and if you end up paying closing costs. A Final Thought: Remember if you have any questions on the “do’s and don’ts” while buying a home, ask your REALTOR who is there to help you make your dream of homeownership a reality. Are you interested in investing in real estate? Check out this 5 Secrets to help you become a pro at investing! Then visit Metro Detroit Home Source to see a comprehensive list of foreclosure and short sale deals available that will be great real estate investment properties to get you started!
In many of the hottest real estate markets around the country the housing market is now in its fifth year of growth. Although there are still pockets of recovery here and there, the largest markets from San Francisco to New York have pretty much gone back to their 2006 or 2007 highs, or beyond. As with all long-term growth markets, homebuyers get wary. You begin to question when the market will drop and when you’ll be able to get a “deal.”
The quick answer could be “never,” but that’s a bit unrealistic and harsh. The real answer is that the deal you want, from that period of Home Buyer Fantasy Land from 2008-2010, is never, ever, going to come back. Frustrated by a lack of inventory, there is a little light at the end of the tunnel. Lending isn’t an issue The primary reason for the original housing crisis that created so many opportunities was the ridiculous lending practices of the time. I recall a story told by the checking clerk at my local grocery store who proudly proclaimed she had bought three houses on a salary ill-suited to buy one. It’s a sure bet the banks won’t be making that mistake again. So, the false demand created by loose lending is no longer possible. It was that same loose lending that inspired excessive construction. The loose lending created a significant demand that builders stepped in to fill. When foreclosures started cropping up in 2006 and 2007, there were more homes than people could buy. The result was price drops that we’ll very likely never see again. Housing starts matter In December 2005, at the height of the construction boom, seasonally adjusted housing starts were at 1.93 million units. The same figure for December 2014 was 1.08 million. Within lies the difference between how much housing is available then versus now. Construction is only meeting demand, not exceeding it, or meeting some fictional demand a year in the future. That eliminates the potential for a sudden flood of inventory that would create a market correction. With that in mind, buyers should consider that wherever they look, the available inventory is going to be relatively predictable. Just look at how much new construction there is in an area, and add in the usual 3-4 percent inventory turn for any given neighborhood. Eternal cheap money The Fed has been trying to raise interest rates for a long time. The premise is that by making the cost to borrow money more expensive, fewer buyers can afford to buy, which slows demand. That shifts the market over to sellers who might, for various reasons, have to sell, which creates more supply. In that model, prices tend to drop. Although homebuyers don’t want interest rates to rise because it impacts affordability, even if interest rates rise 1-2 points money is still cheap. We’ve grown spoiled by 30-year loans at 4 percent when for a long time we were happy to get 6 percent. Could rising interest rates ease buying and raise inventory? Sure, but not to the same extreme as happened in the crash. You’ll see a few buyers fall out of the market but not the tens of thousands it would take for a crash. My advice to homebuyers is to invest in your home, not focus on speculation. You can either buy and hold for a decade or more, which almost always works in your favor, or make improvements that build equity. Either way, counting on another crash isn’t going to happen. Barring a disaster, there are no economic factors in place now to set the stage for a repeat of 2008. The website HouseLogic recently came up with a list of items that impact the value of a home. We all know that highly rated schools are a bonus for nearby housing, but did you know that good schools have a lot in common with Wal-Mart and public transportation, for example? Advising buyers toward being near any of these might add thousands to a home’s value, but the cost of admission could be higher than a home, “not near a Wal-Mart.”
Here’s some of what HouseLogic uncovered: County or state parks and golf courses A public park might boost the property value of nearby homes by 8 to 20 percent. A recent study looked at more than 16,000 home sales within 1,500 feet of just under 200 public parks in Portland, Oregon, and found home values increased on the average:
Living near a Wal-Mart A study by the University of Chicago noted that living within a mile of a Wal-Mart that stays open 24 hours a day could raise your home’s value by 1 or 2 percent, and living within half a mile could boost your property value by an additional 1 percent. But, I don’t know why this wouldn’t naturally also apply to Target or other similar stores. Walkability According to a 2009 study from CEOs for Cities, being close enough to walk or just a minutes away from schools, parks, stores and restaurants will raise your property value anywhere from $4,000-$34,000. That sounds great, but those walkable neighborhoods are usually in town. They are therefore due to location inherently more expensive and once again the cost of admission to get into them is going to be higher. One of the “most walkable” sections of our market, for example, the average sales price over the past 15 months was $231,000. The average sales price for homes just outside this section of the MLS, a 10- to 15-minute commute by car, dropped to $161,200. Additional dwelling spaces Whether it’s an in-law apartment or carriage house, having a separate living space can increase a home’s value by 25 to 34 percent, according to a study of 14 properties with accessory dwelling units in Portland, Oregon. In our local market once again I saw a more moderate 4 percent to a mind-blowing 44 percent increase based on homes sold in the most desirable locations with an in-law suite. The article noted, and I think it is valid too, that an income stream can be generated, too, for buyers of these properties. I know in a local college town that for “decades” law students would lease space like this in town to be near campus. Professional sports arenas In the Atlanta area, we are looking at a new stadium for both the local Braves and for the Falcons. We hear that new pro sports stadiums can raise property values in a 2.5-mile radius by an average of $2,214. The downside, however, is traffic. Many times, we see home values decline until the project is completed. Tree huggers stand proudly Not a shocker, but whether trees are in your yard or just on the street, you should know they’re a valuable asset. HouseLogic gave us a nice gauge to show just how much trees are worth to a home’s value. These figures according to a University of Washington research survey:
Based on the information I shared today, we should look for homes in proximity to a Wal-Mart, or where one will be in the near future, with mature trees that also has space to be converted to an in-law suite. Throw in a nearby park located in an excellent school district and we have a property that should resell over and over again at top dollar. If you're looking to sell your home this spring, check out this list below of how to properly prepare and stage your home inside & out for the sale. If you keep these tips in mind, you'll be sure to get the most return. To find out your home's current market value, visit www.MetroDetroitHomeValues.com for a FREE and INSTANT Home Value Report. Preparing And Staging Your House For The Sale Probably the first thing you’ll need to do when getting ready to put your house on the market is preparing the house to be shown in it’s best light. Making sure your house looks it’s best on the inside and outside is key to making the right first impression and making the sale. So what are some things you can do inside the house to get ready to make sale?
There are also quite a few things you can do outside the home to make sure that it has great curb appeal.
Selling your home can be quite the undertaking, but if you put in the time, do your research and do what it takes to make the sale, you could end up with thousands more in your pocket because of your hard work. It is difficult to know what a future buyer might be looking for in your home if you're selling. You want to get the most bang for your buck and get the biggest return possible while having to make the least (if any) home improvements before selling. Check out these tips below on some of the worst and best home improvements sellers can make to get the biggest return.
Our job is to make your life as a seller or buyer easier and to help make the transition into your new home as easy as possible. Check out these 7 reasons why using a Real Estate Agent to help sell (or buy) your home will help make the process go smoothly and quickly for you. Check out www.MarkerTeam.com for more reasons and tips on selling or buying your home!
There has been a great deal of discussion regarding the consistently low housing inventory levels throughout the nation. Very little, however, has been written about the reasons why inventory levels are so low, especially following the economic disruption of 2008-2011. Understanding the why can be helpful in predicting how these factors might influence longer-term supply levels and future appreciation potential. This knowledge might also shed light on why inventory might remain constrained over the long run. In the second half of 2011 we began to see an acceleration in the decline of inventory levels nationally, and since that time the available housing inventory has continued to remain historically low. The graph (figure 1) below highlights the continuous low-inventory environment. Why is this so? There are numerous conditions that have contributed to this phenomenon and bundled together have created an inventory control dynamic that, as prices rise, only serves to limit the number of homes available for sale. Capital gains exclusion on primary residence: Prior to May 7, 1997, the only way you could avoid paying taxes on your home-sale gain was to use the funds to buy another, equal or more-expensive house within two years. I recall my father being motivated by a “move up” mentality. Every few years, he would sell our existing home for a bigger, more expensive property. He would explain to us that he was using tax-free money or “playing with the house’s chips” to leverage into a bigger home that only “someday” he would owe capital gains on. By leveraging his gains, he contributed to the health of the local real estate market. This dynamic created a steady supply and demand equilibrium not only in our local market, but in markets throughout the country. When he turned 55, another option became available. He could take a once-in-a-lifetime tax exemption of up to $125,000 in capital gains. However, when the Taxpayer Relief Act of 1997 became law, the rollover or once-in-a-lifetime options were replaced with the current per-sale exclusion amounts. The Taxpayer Relief Act allows homeowners to take a $250,000 (for singles) or a $500,000 (for married couples) capital gains/appreciation exclusion, which could be used under certain conditions every two years. While the Taxpayer Relief Act eased the home-sale tax burden for millions of homeowners, higher-priced real estate markets experienced an unintended outcome: fewer move-up buyers because their gains on their existing home exceeded the $250K/$500K maximum, thereby creating an unwanted tax burden. This frozen segment of the real estate pipeline has upset the flow of buying and selling activity. The typical move-up buyer has caused a bottleneck by remaining in place thereby reducing available supply to new entrants. The current law does not create the compelling motivation for individuals to continually move up into “bigger and better” higher-priced properties. In areas such as Silicon Valley, it is not uncommon for homeowners to exceed the $250K/$500K exclusion amounts if they have owned their primary residence for a period of time. Once a homeowner eclipses this threshold, their motivation to sell in order to move up diminishes as the possibility of a financial tax consequence looms. Many move-up buyers have begun their research only to discover they would be subject to capital gains tax on a portion of their gain — another sacrifice they are not willing to make in order to buy that bigger, better property. Step-up in basis: This factor is one of the least understood. Mainly because most people do not have large enough real estate gains to care or they are not old enough to begin pondering their longer-term estate plans and how the timing of their home sale might be impacted by capital gains tax exposure. For couples, upon the death of one spouse the tax basis of the ownership interest that belonged to one spouse is stepped up, the tax basis of the entire asset might be stepped up to “Fair Market Value” (FMV).* This means a surviving spouse can potentially sell their property and owe only federal capital gains tax on the property’s appreciation after the death of the spouse, which might drastically reduce the tax consequence of the sale. It is very likely that a good percentage of longtime married homeowners in the higher-priced areas of the U.S. understand this dynamic and will opt to stay and wait, surprisingly to some, for one or the other to pass away before a move makes practical financial sense. If so, this would mean that potentially thousands of multimillion-dollar properties with swollen appreciation are being held off the market until an unfortunate family loss occurs at some point down the road. Sustained low-rate environment: Given the sustained low interest rate environment, many homeowners and investors have either purchased or have now refinanced and are locked into tremendously low interest rates over the past six years. It is highly unlikely that these homes will be coming up for sale anytime soon as a result of this favorable financing. Value disruption/reset in 08/09: In addition to the sustained low interest rate environment and its potential damper on those properties actually coming up for sale anytime during the life of their loans, we should mention the “value disruption” factor that occurred between 2007 and 2010. A number of areas experienced a complete “reset” of values and in some cases to nearly half their peak values. Buyers purchased properties in these marketplaces at significant discounts from the high point, resulting in additional “frozen inventory.” If you combine the sustained low interest rate climate with the thousands of homes purchased at up to 50 percent discounts or more, it’s unreasonable to expect that these homes will be coming up for sale anytime soon. In addition, an unprecedented number of institutional investors entered the residential real estate market acquiring large pools and blocks of properties. This inventory is now also frozen and held. Values not at peak levels across the country: In some regional areas sales prices have reached or even surpassed the peak levels in 2007. However, this not a national phenomenon; some cities and regions across the U.S. are still below the historical highs of the mid-2000s. Until prices reach peak levels across the board these homeowners won’t be listing their homes for sale. Sense that values will continue to climb: Additionally, there is the current mentality among some homeowners that home values will continue to rise. Very similar to the mindset of people holding on to a stock because they expect it to rise, people believe their properties will increase over time. Right or wrong, this mindset has become another factor in the tightening of inventory. What typically happens is that once homeowners realize the up cycle has turned, they electively decide or are forced to sell due to job loss or other negative economic pressures. This would result in a significant inventory increase. Where would I go? Move up: We have already mentioned a few of the constraints on the move-up buyer. The aforementioned forces feed on each other and further exacerbate the move-up opportunity. Lower inventory begets lower inventory; a downward pressure cycle continues. If one cannot find properties to move up to, they will not list or sell their current homes. This same dilemma plagues retirees finding limited or no options for retirement communities in their local area. This also limits housing supply on the top end of the market since seniors are not motivated to sell unless they know exactly where they are going. Stunted new development: Over the past seven years (since the beginning of 2008) there has been an unparalleled low level of new housing starts (figure 2). This prolonged decrease in new home development dramatically multiplies the low-inventory gap. To further the dilemma, the start-to-finish build cycle is lengthy, often requiring multiple years to plan, approve, build and market, which slows market momentum. Until the new housing development engine gets moving at an accelerated pace it will continue to have a lingering impact. These major factors have created this extraordinary nationwide low-inventory environment we are currently experiencing. Given the factors above, inventory will remain low for an extended period of time, the natural solution of which remains unknown.
*This depends/varies by state of residence and ownership. References: Figure 1 & 2 – National Association of Realtors, Lawrence Yun, Ph.D., NAR chief economist, presentation at Residential Real Estate Forum at the 2014 Realtors Conference & Expo in New Orleans, Louisiana, on Nov. 7, 2014. Retrieved from: http://www.realtor.org/presentations/presentation-residential-real-estate-trends-and-outlook. |
About The Marker TeamThe Marker Team offers unparalleled service to ALL clients in Metro Detroit Michigan and the surrounding area real estate market. Archives
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