from the Alabama Home Builder’s Licensure Board
Having your own home is the American dream. It is your own little corner of the universe. Don’t trust its construction or remodeling to just anybody. As much time and attention should be spent interviewing and researching a prospective builder or remodeler as would be spent searching for a home or automobile or employee.
As a consumer you have the right to ask certain questions and request certain pieces of information. With the remodeling industry exceeding $118 billion spent during 1997, you can tell that there is a lot of remodeling that goes on all over the United States. Every year thousands of Alabama citizens remodel and repair their homes.
While most residential contractors operate honest businesses, the number one complaint filed with the Attorney General’s Consumer Affairs Division is regarding home repair fraud. There are important steps that consumers can take to protect themselves before ever hiring a remodeler. Don’t be afraid to ask certain questions or to request references.
Any remodeler running an ethical business will not be offended by your inquiries about licensing, insurance and references. Below you will see a bulleted list of information that should be obtained when you are in the process of hiring a builder or a remodeler.
Whether you are making minor repairs, adding an addition to your home or building a new home, arm yourself with the information necessary to choose the right contractor.
How to Protect Yourself from Fraudulent and Unlicensed Contractors
· Verify the contractor’s name, address and phone number. Be wary of workers who give you pager numbers rather than landline phone numbers, or post office boxes rather than street addresses.
· Request references on similar work performed by the contractor. Ask to see a job in progress, and ask for the name and number of a customer who had work done over a year ago.
· Obtain two or three bids. When comparing estimates, be sure each one is based upon the same set of plans, specifications, and scope of work.
· Check with professional associations and licensing boards (see listing below) to verify the worker’s records. Ask to see the contractor’s pocket sized license card.
Visit http://www.hblb.state.al.us/consumer-info.html for more information. Happy remodeling!
Thursday, October 18, 2007
Friday, October 12, 2007
US Real Estate Market
Getting Back on Track
by Lawrence Yun, Vice President, NAR Research
The summer has been tough – historically high temperatures in many parts of the country, Midwest floods, and almost everywhere major airline flight delays. Housing didn’t have such a great summer either, with home sales and price appreciation still waiting to recover. The subprime mortgage mess didn’t help either. So everyone wants to know: now that the summer is over, when can we expect the housing sector to get back to normal? There’s actually a sequence of events we should look for that need to happen before housing is back on track, and as each of these occurs, the closer the housing recovery will be. Let’s take a look at them.
Mortgage Rates Will Stablize Favorably
Despite the headline news coverage of turmoil in the mortgage market, mortgage rates have actually been falling for borrowers who take out prime conforming loans. Because these borrowers account for the majority of home buyers, affordability conditions for most buyers have improved. FHA loans – the traditional financing vehicle for low-and-moderate income households – have also begun to build market interest and momentum. FHA loans offer very attractive rates nearly comparable to those of conforming loan rates and save homeowners a bundle – about $180,000 in lower interest payments over a 30-year loan cycle compared to high-interest rate subprime loans. A near-certain legislative change that will allow higher FHA loan limits in high cost areas will further free up the mortgage market to offer safer alternative products (i.e., FHA loans) and away from subprime loans. It is important to note, though, that subprime loans may make sense for some home buyers such as young couples with large income potential but little downpayment. But the subprime market share at most should be no more than 5% rather than the 20% market share of recent years.
While mortgage rates look good for conforming and FHA loan clients, the same is not true for jumbo loan borrowers. Without the backing of a guarantee by Fannie Mae and Freddie Mac, bond investors are shying away from jumbo loans. As a result, interest rates on these large loans have increased and will significantly hold back home sales in the high cost housing areas like California. The whiplash will be short-term, however. After sorting through the numbers, bond investors will likely conclude that jumbos are quite safe – even without the government guarantees. A million dollar borrower generally has solid credit and pays bills on time. Any temporary legislative change in raising the loan limit well above the current $417,000 or in permitting the GSEs to purchase jumbos loans to include in their portfolios will mitigate the crisis. (The median prices will artificially trend lower during the period of jumbo loan crisis just due to fewer higher priced home sale transactions).
Pent-Up Demand Will be Unleashed
Consider this – four million net job additions in the past two years during the housing market slump. Yet, home sales have fallen. As home sales fell, people doubled and tripled up because apartment rents increased at their highest pace in five years. These people are waiting to buy a home. Then there are the approximately two million marriages that occur each year. Those newlyweds are waiting to buy a home. About four million babies are born each year – forcing some families to consider trading up from a smaller house or condo to a larger one.
Homebuilders Take Heed
The inventory of both new and existing homes is at high levels. Builders have already cut back production and are encouraged to cut back even further. The market needs less inventory additions in a time of transition. Wall Street should and will punish any builders who add to inventory in the current market. Why build only to lose money on the home? With builders cutting back, inventory will fall. Some home owners of vacant homes will also consider the juicier rent growth and take their “empty” home off the market. In addition, many owners are in a no hurry to sell their home that they actually occupy (except perhaps for those in the few areas of the country that are losing jobs), and they may also choose to delay listing their home for sale or de-list it. Unleashing of that pent-up demand for home buying will also eat into inventory.
Drawing Down the Inventory
The law of (lower) supply and (higher) demand will then firm up home prices. The media will be forced to report on the price gains. Many potential buyers, with solid financial wherewithal, will regain confidence. The wheels of housing turn faster and faster. The full unleashing of the pent-up demand could mean about two million additional homeowners. Such absorption into the marketplace will bring down the current existing-home inventory of four million units and the new home inventory of one million units to a total of three million homes (new and existing) available for sale. That level of inventory equates to a 5-6 months’ supply – generally considered a balanced market condition.
Balanced Gains Ahead
As the housing market recovers, potential home buyers (both first-timers and repeat purchasers) will gain more confidence in the housing sector. This, in turn, will drive more demand for homeownership, helping to keep inventory at or slightly below market balance and spur additional increases in home price appreciation. In sum, a closing of the subprime market does not directly mean equally lower home sales. FHA/VA and conforming government-backed loans will pick up a large chunk of the former subprime market. The jumbo loan concerns will be mitigated over time with better market knowledge, and will be assisted by changes in legislation permitting higher loan limits. Pent-up demand is strong. Inventory will move in the right direction. Builders are assisting by holding back production. A market recovery in 2008. Back-to-the-historical norm in 2009.
by Lawrence Yun, Vice President, NAR Research
The summer has been tough – historically high temperatures in many parts of the country, Midwest floods, and almost everywhere major airline flight delays. Housing didn’t have such a great summer either, with home sales and price appreciation still waiting to recover. The subprime mortgage mess didn’t help either. So everyone wants to know: now that the summer is over, when can we expect the housing sector to get back to normal? There’s actually a sequence of events we should look for that need to happen before housing is back on track, and as each of these occurs, the closer the housing recovery will be. Let’s take a look at them.
Mortgage Rates Will Stablize Favorably
Despite the headline news coverage of turmoil in the mortgage market, mortgage rates have actually been falling for borrowers who take out prime conforming loans. Because these borrowers account for the majority of home buyers, affordability conditions for most buyers have improved. FHA loans – the traditional financing vehicle for low-and-moderate income households – have also begun to build market interest and momentum. FHA loans offer very attractive rates nearly comparable to those of conforming loan rates and save homeowners a bundle – about $180,000 in lower interest payments over a 30-year loan cycle compared to high-interest rate subprime loans. A near-certain legislative change that will allow higher FHA loan limits in high cost areas will further free up the mortgage market to offer safer alternative products (i.e., FHA loans) and away from subprime loans. It is important to note, though, that subprime loans may make sense for some home buyers such as young couples with large income potential but little downpayment. But the subprime market share at most should be no more than 5% rather than the 20% market share of recent years.
While mortgage rates look good for conforming and FHA loan clients, the same is not true for jumbo loan borrowers. Without the backing of a guarantee by Fannie Mae and Freddie Mac, bond investors are shying away from jumbo loans. As a result, interest rates on these large loans have increased and will significantly hold back home sales in the high cost housing areas like California. The whiplash will be short-term, however. After sorting through the numbers, bond investors will likely conclude that jumbos are quite safe – even without the government guarantees. A million dollar borrower generally has solid credit and pays bills on time. Any temporary legislative change in raising the loan limit well above the current $417,000 or in permitting the GSEs to purchase jumbos loans to include in their portfolios will mitigate the crisis. (The median prices will artificially trend lower during the period of jumbo loan crisis just due to fewer higher priced home sale transactions).
Pent-Up Demand Will be Unleashed
Consider this – four million net job additions in the past two years during the housing market slump. Yet, home sales have fallen. As home sales fell, people doubled and tripled up because apartment rents increased at their highest pace in five years. These people are waiting to buy a home. Then there are the approximately two million marriages that occur each year. Those newlyweds are waiting to buy a home. About four million babies are born each year – forcing some families to consider trading up from a smaller house or condo to a larger one.
Homebuilders Take Heed
The inventory of both new and existing homes is at high levels. Builders have already cut back production and are encouraged to cut back even further. The market needs less inventory additions in a time of transition. Wall Street should and will punish any builders who add to inventory in the current market. Why build only to lose money on the home? With builders cutting back, inventory will fall. Some home owners of vacant homes will also consider the juicier rent growth and take their “empty” home off the market. In addition, many owners are in a no hurry to sell their home that they actually occupy (except perhaps for those in the few areas of the country that are losing jobs), and they may also choose to delay listing their home for sale or de-list it. Unleashing of that pent-up demand for home buying will also eat into inventory.
Drawing Down the Inventory
The law of (lower) supply and (higher) demand will then firm up home prices. The media will be forced to report on the price gains. Many potential buyers, with solid financial wherewithal, will regain confidence. The wheels of housing turn faster and faster. The full unleashing of the pent-up demand could mean about two million additional homeowners. Such absorption into the marketplace will bring down the current existing-home inventory of four million units and the new home inventory of one million units to a total of three million homes (new and existing) available for sale. That level of inventory equates to a 5-6 months’ supply – generally considered a balanced market condition.
Balanced Gains Ahead
As the housing market recovers, potential home buyers (both first-timers and repeat purchasers) will gain more confidence in the housing sector. This, in turn, will drive more demand for homeownership, helping to keep inventory at or slightly below market balance and spur additional increases in home price appreciation. In sum, a closing of the subprime market does not directly mean equally lower home sales. FHA/VA and conforming government-backed loans will pick up a large chunk of the former subprime market. The jumbo loan concerns will be mitigated over time with better market knowledge, and will be assisted by changes in legislation permitting higher loan limits. Pent-up demand is strong. Inventory will move in the right direction. Builders are assisting by holding back production. A market recovery in 2008. Back-to-the-historical norm in 2009.
Tuesday, October 2, 2007
Wetumpka area 12 MLS Statistics
39 Homes closed, or SOLD during the month of September!
24 Homes became Sale Pending from Sept 1st to Oct 1st!
Highest price of all homes sold in the greater Wetumpka area was a: 4,000+/- sq ft home on Ann St in Eclectic, which sold for $335,000 after 33 Days on Market.
Your home can sell, too!
Ask me how I differentiate YOUR home from the others on the market so your home sells FASTER and for MORE $$$!
With all the properties on the market, only the top "move-in ready" and "smart buy" homes are moving fast. Make your home IRRESISTABLE.
Here are the top 3 things you can do to make a difference in your home sale.
1) Leave the home for all showings. If you absolutely must be present, stay in the back or front yard during the showing.
2) Keep your home and furniture clean.
3) Remove all unnecessary items from the floors, shelves and closets. Pack as many things as you can, and place these boxes in an attic, garage or off-site storage location.
Contact me for more tips on selling your home!
24 Homes became Sale Pending from Sept 1st to Oct 1st!
Highest price of all homes sold in the greater Wetumpka area was a: 4,000+/- sq ft home on Ann St in Eclectic, which sold for $335,000 after 33 Days on Market.
Your home can sell, too!
Ask me how I differentiate YOUR home from the others on the market so your home sells FASTER and for MORE $$$!
With all the properties on the market, only the top "move-in ready" and "smart buy" homes are moving fast. Make your home IRRESISTABLE.
Here are the top 3 things you can do to make a difference in your home sale.
1) Leave the home for all showings. If you absolutely must be present, stay in the back or front yard during the showing.
2) Keep your home and furniture clean.
3) Remove all unnecessary items from the floors, shelves and closets. Pack as many things as you can, and place these boxes in an attic, garage or off-site storage location.
Contact me for more tips on selling your home!
Subscribe to:
Posts (Atom)
