How Can I Winter-Proof My House?

As I am looking outside of my office window, snow is falling from the sky. It is not just a dusting, but an expected 5-10 inches. It is wonderful to watch it falling from the sky, although I should be thinking about the drive home.

We have such a mild winter so far here in Denver, but with below freezing temperatures here and more winter to come, this master checklist is great for prepping your home for cooler weather. By following this list, you will not have to worry about a burst pipe, an unexpected $500 heating bill, or realizing in April that your patio furniture is ruined.

Outdoors

Patio furniture: Outdoor furniture is pretty resistant, particularly when you use these storage tips from Mary Ulibarri, manager of Ludeman's Fireplace and Patio in Beaverton, Oregon:

Clean-Mix warm water with a car wash solution, which is designed to cut through outside grime. Follow the package instructions, scrubbing furniture with a soft brush. Rinse with water and let air-dry.

Derust-Rub off rust with a scouring pad to stop it in it's tracks (always test in corner first to make sure you won't scratch the surface).

Wash-Cushions and fabrics should either be machine-washed, or handwashed in a large basin with dishwashing soap and warm water. "Store them completely clean and dry," says Ulibarri, to prevent rot and mold.

Store-Hardwood furniture (the heavy stuff, like teak or cherry) can stay outside. Soft woods (like pine or cedar, which age with uneven splotches) need to come indoors or be covered. If your furniture is aluminum, the heavyweight variety can be left outside; lightweight versions have hollow rails, which can hold water and crack when it freezes, so take it indoors. Store plastic or wicker indoors, and if you're not sure what your furniture is made out of, take a cell phone photo and bring it to a patio store. They will know.

Cover-Anything that's staying outdoors needs a breathable cover made of Gore-Tex-like fabric to keep moisture from coming in while allowing moisture trapped inside to escape. Attach covers tautly so water cannot pool and freeze.

Landscaping
Turn off water-Find the indoor water shutoff for all outside lines and turn it off. (If you don't know where it is, ask your plumber.) Turn on the spigots and empty them; also empty out hoses and store them indoors. If you have an irrigation system, hire an irrigation professional to use an air compressor to empty the water lines so they don't burst, says Jeremy Link, owner of EcoFriendly Irrigation in Cincinnati.

Aerate and seed-Want a lush spring lawn? Labor Day is the time to use and aerator (a rolling yard tool with spikes in it). "Aerating allows grass to get more water and grow more going into fall and winter," says Hunter Stubbs, partner in B.B. Barns Garden Company in Asheville, North Carolina. If seeding is needed, do it now, when temperatures are still warm.

Fertilize-"Fertilize the lawn at Labor Day, and again around Thanksgiving," says Stubbs. Fertilize shrubs in November too, when they've gone dormant.

Mulch flowers-Foolproof one-hour trick to a good-looking winter yard: Clear away sticks and leaves, pull up dead plants and use a rake to aerate the soil. Then mulch-it makes your flowerbeds look nice, and also prevents pests from living under debris. You can also neaten your garden by pruning back your perennials and flowering plants.

Gutters
Clean-Taking a plastic bucket with you, climb a ladder and use gloves to remove debris so it doesn't freeze and damage the gutter. (If you have someone to help, you can use a rope to raise and lower the bucket.) Consider getting gutter guards to use year round to block out most gunk. Mesh covers allow water and some debris to pass through, rather than models that promise no debris, which tend to feature tiny holes that get plugged up.

Check for moss-While you're up there, glance around the gutters and roof for moss and algae. It grows at a glacial pace, can do a lot of damage by keeping the roof below permanently wet and causing rot. If you see any, make a mixture of 5 parts water, 1 part bleach and a heaping tablespoon of trisodium phosphate (from a home improvement store), and spray it one the moss to kill it.

Chimney
Seal-To prevent costly, damaging leaks to your brick, block or cement chimney, seal it every five years. A pro charges around $75 per hour, but if you're comfortable on a ladder, apply clear acrylic water seal to all outside surfaces of the chimney, just like you're painting.

Indoors

Heating
Program thermostats-Set the thermostat to click on every time the daytime temperature drops below, say, 68 degrees (it's cheaper to maintain a temperature than to turn a thermostat up and down.) If your thermostats aren't programmable, replace them: They're easy to install and cost anywhere from $35 to $250-which you'll make back in a few months. By turning it up only when you're home, you'll save as much as 30 percent on your heating bill; setting the temperature at 68 degrees instead of 72 degrees can save you 20 percent.

Replace filters-Change the filters in your furnace and, if you have one, forced-air system. (If you're not sure where filters are or how to replace them, ask at your next heating inspection.) Dirty filters force the system to chug, wasting energy and costing you you anywhere from 10 to 30 percent more.

Clear the path-Make sure that no furniture or objects are within 3 feet of space heaters or radiators. Even if that chair looks perfect near the heater, move it-it's blocking the heat and a fire hazard.

Insulate-If you have a forced-air heating system, look for ducts running through unheated parts of the house, like the garage and attic. Measure those ducts and head to the store for precut insulation, which wraps right around them, keeping the hot air in the ducts (and in your home) and toasty warm. About $1 per foot at The Home Depot can save you 10 percent on your bill.

Weatherization

Caulk-And foam. Light a candle and move it around windows and doors; where it flickers, you've got a draft. (You can also test by dampening your hand.) Seal the gap with latex window caulk or foam sealant. You'll still be able to open the window, and in the spring you can remove the caulk with a razor blade. If you won't be opening the window, caulk the sash (where both parts of the window meet in the middle). And don't forget the attic. Plug door bottoms with stick-on weather stripping from a hardware store ($5 to $10). Winter heating bill savings: $100 to $300.

Insulate water pipes-Starting at your hot water heater, look for uninsulated pipes running along the walls or ceilings. (If they're not labeled, you can usually place a hand near them and feel the heat.) Polystyrene insulation, which has a slit in the middle, slips right over the pipe. And once you insulate, the heat stays in the pipes longer, so the hot water heater doesn't need to work as hard. 25 cents per foot at The Home Depot. Savings: $50

Insulate the water heater-Your heater should have a "blanket"-they look like giant versions of the little insulator bags for travel coffee mugs. If it doesn't, take a snapshot of your water heater, measure the length and diameter, and head to the store (blankets are $20 to $40 at Lowe's). Exceedingly smart investment, since the blanket will keep heat in and your hot water heater won't have to turn on as frequently. Winter heating bill savings: $100

How Are Existing Home Sales Doing?

Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions.
“The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”
The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009. Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales.
Total housing inventory at the end of November fell 4.0% to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30% in November from a record low 4.23% in October; the rate was 4.88% in November 2009.
“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”
A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.
Single-family home sales rose 6.7% to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3% below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2% above a year ago.
Existing condominium and co-op sales declined 1.9% to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2% below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5% from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.
Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.
Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.
In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.
Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.

More Reasons To Love Denver

I thought I would do a little different blog today. After being with my family in Louisiana for the holidays, I cannot tell you how great it was to get back to Denver, my home. I adore this city and everything it has to offer. The friends I spoke with in which Denver came up, they agreed that it is a progressive city with many wonderful things to do. This article was in the Denver Business Journal and I wanted to pass along...more reasons to be thankful we live here.

Denver is the nation's sixth-best city for business out of 102 major metro areas, MarketWatch declares in its annual ranking.
"[A] perennial top 10 city, Denver continues to attract businesses of all types looking for quality of life," the business-news-and-information website says.
It says Denver "seems to have no trouble attracting new companies," noting the recent decision by kidney-care giant DaVita Inc. (NYSE: DVA) to locate its headquarters here.
MarketWatch, which has compiled its ranking for four years, evaluated 102 large cities, using a variety of measures that break down into two categories: "company score," the concentration of businesses within a metro area, and "economic score," which takes into account unemployment, job growth, population growth, personal income and local gross domestic product.
It said it used more metric categories this year than before, partly to better reflect tourism business and the economic impact of military bases.

Denver's total score is 980, its company score is 599, and its economic score is 381.
Denver's company score is second-highest of the 102 cities, after Minneapolis' 601. That may surprise some locals, since the common wisdom is that the Mile High City is home to fewer large company headquarters than other cities its size.
Nevertheless, "the region is among the top 20 in six of the seven metrics that measure concentration of companies," MarketWatch's Russ Britt writes.
But MarketWatch downgrades Denver on personal income and in change in employment. "Its jobless rate rose half a percentage point" from last year, Britt says.
Denver ranked seventh in MarketWatch's 2009 best-cities-for-business ranking, third in 2008 and second in 2007.

Denver has done well recently in business, economic and career rankings. In November, career search engine Juju.com rated it the ninth-best city for job seekers. In October, the CareerCast.com/JobSerf Index placed Denver ninth as a place to find a managerial position. Businessweek in July called Denver the nation's eighth-best city for college grads to find work. And Forbes in June ranked Denver America's eighth-best city for young professionals.
MarketWatch ranks Colorado Springs No. 54 overall, with a total score of 715, a company score of 312 and an economic score of 403.

The top city is Washington, D.C., with a total score of 1100, a company score of 585 and an economic score of 515.
"Washington has made the most out of having the U.S. government, a very large customer for any company, to keep it chugging during the tough times," Britt writes. "But the region also has seen massive expansion in suburban towns in Virginia and Maryland over the years that has boosted its economy."

Rounding out the top 10 after Washington are Omaha, Neb.; Boston; Des Moines, Iowa; Minneapolis; Denver; Richmond, Va.; New York; Harrisburg, Pa.; and Seattle.
Fresno, Calif. is at the bottom of the list at No. 102.

What Is Happening With Housing Starts At This Time?

Nationwide housing starts rose 3.9% in November 2010 to a seasonally adjusted annual rate of 555,000 units from an upwardly revised number in the previous month, according to newly released data from the U.S. Commerce Department. This marked the first upward movement in new-home production since August, and was entirely attributable to a nearly 7% gain in single-family home building.

“Builders are very cautiously adding to their diminished inventories in preparation for the spring buying season and an anticipated modest revival in buyer demand when the economy shows more signs of improvement,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Michigan. “That said, we are still looking at a very low level of housing production, due largely to builders’ inability to obtain construction financing.”

“The modest increase in single-family starts and permits in November is consistent with a very low inventory of unsold new homes and our member surveys that have shown a degree of optimism among builders with regard to sales expectations in the next six months,” said NAHB Chief Economist David Crowe. “However, builders continue to find it extremely difficult to obtain credit for acquisition, development and construction activities, and this is weighing on their ability to initiate viable new projects that could generate much-needed job growth.”

The 3.9% gain in overall housing starts this November was due entirely to a 6.9% increase to a 465,000 unit seasonally adjusted annual rate of new-home production on the single-family side. Meanwhile, multifamily housing starts declined 9.1% to a 90,000-unit rate.
Regionally, starts activity showed gains in all but one part of the country in November. The Midwest, South and West each posted gains, of 15.8%, 2.3% and 2.1%, respectively, while the Northeast posted a 2.5% decline.

Permit issuance, which can be an indicator of future building activity, declined 4% to a seasonally adjusted annual rate of 530,000 units in November, its lowest level since April 2009. However, this decline was entirely due to a 23% drop-off in the more volatile multifamily sector, where permits hit a seasonally adjusted annual rate of just 114,000 units. In contrast, single-family permits rose 3% to a rate of 416,000 units—their highest level since this June.

Regionally, permit activity was mixed in November, with the Northeast and Midwest registering declines of 8.3% and 22.2%, respectively, and the South and West posting gains of 1.9% and 2.7%, respectively.

How can I keep an eye on my roof throughout the year?

If you think roof leaks are only a problem if you live in a climate with frequent rain, think again. While roofing problems are obviously most often caused or exacerbated by rain, there are other just as insidious, but lesser-known, sources that contribute to roof leak issues. Whether you’ve got a new home or an older one, most roof shingles, on average, can go 15 years without needing repair—but that doesn’t mean you should set the alarm for a decade and a half and forget about it. A roof can get in bad shape well before the 15-year mark, and the longer you wait to repair it, the more expensive the repair will likely be.

To keep repair costs as minimal as possible, be aware of some problems that can cause serious roof leaks, and stop them at the source whenever possible to prolong your roof’s life. If you aren’t experienced with home repairs, it’s a good idea—for safety’s sake—to call in a professional home inspector to assess the damage, and a trusted repair person to fix it correctly. And if you’re in the home buying or selling process and a home inspector is required anyway, choose a professionally trained inspector who knows the importance of checking for all of the following problems, which can contribute to leaks:

1. Incorrect shingle installation. Don’t rely on looks alone; even the strongest shingles won’t stand up to rain if they’re not properly installed. Improper joint locations and a lack of underlay are two issues that are particularly hard to see, but can be extremely problematic.

2. Structural sagging. A sagging roof structure is often the result of moisture retention, and nearly always foreshadows, or coincides with, a leak issue.

3. Water “ponding.” Clogged roof drains and indented areas on flat roofs can cause water pooling—which is basically a leak waiting to happen.

4. Damaged nails. Even on shingles that have been expertly installed, nails are the first thing to show wear. Corroding nails leave microscopic holes that invite water in.

5. Improperly hung gutters. Gutter placement is critical, and if you’re in an area with strong wind, just a tiny shift can tamper with the gutter system and divert rain—meant for the gutter—onto the roof.

6. Moss. You might think it’s just an aesthetic problem, but as moss gathers, it retains more and more moisture that you might not be able to see—until it starts dripping into the attic.

7. Insufficient insulation. The roof might look great on the outside, but if it’s not properly insulated underneath, you’re in trouble. Pre-1980s homes, in particular, may not have an adequate vapor barrier; if they don’t, a replacement is warranted—surface patching and minor repairs will just amount to wasted money.

8. A deteriorating chimney. Whether its cracks, eroded joints or a decaying cap, the chimney has plenty of inroads for moisture and water. Don’t discount the chimney; sometimes it might need all the repairs, when the roof might be just fine.

9. Evidence of badly-done past repairs. From improper plastering to inadequately plugged-up holes, any past repairs that look like they’re DIY are probably not up to code, and are just a stopgap measure. Don’t look to them to provide any leak protection in the future. Have a professional inspector evaluate these half-hearted fixes, and suggest ways to re-do them properly, to prolong the roof’s life.

10. Don’t forget the attic. Leaks into the attic aren’t just a problem; but so are leaks originating in the attic. One of the most important precautions: Don’t terminate any vent or exhaust pipes in the attic.

Thinking About Purchasing a Condo With a FHA Loan?

I work with many buyers that choose to obtain FHA loans. This type of loan is backed by the government and still offers a lower rate in relation to a conventional loan, plus the opportunity to put a lesser down payment on the home. That being said, in order to avoid headaches if you are thinking about going under contract on a condominium residence, it is best to find out if the condo building is FHA approved before writing the offer. In my experience, FHA loans take a bit longer than conventional loans and there are also additional requirements that need to be met in order for the loan to be approved. For any questions on these additional requirements, please let me know. At this time, FHA project approval is a crucial step in selling condominiums in today's market.

This article from RISMEDIA explains more: Earlier this year, the FHA required all condominium developments to have their developments approved as a prerequisite to lending. Without “Project Approval,” the FHA would no longer insure loans, effectively stopping FHA lending within effected developments.

The FHA loan has become the choice of many, if not most buyers, due to its highly affordable 3.5% down payment. Without Project Approval, the FHA loan and other FHA backed loan products will no longer be available in non-approved condominium developments including loans for refinance, debt consolidation and reverse mortgages.

Under guidance issued by FHA, developments granted project approval prior to January 1, 2008 had until December 7, 2010 to recertify or lose their approved status. Research reveals that to-date, most condos have not recertified.

According to Orest Tomaselli, CEO of National Condo Advisors, LLC, a consulting firm specializing in condominium project approval, the elimination of FHA lending in condominium developments will make selling condominiums more difficult, especially in today’s already challenging real estate markets. “We are seeing a ‘Perfect Storm’ forming in the condominium market.”

Tomaselli is referring to today’s lower number of transactions, lower prices, looming foreclosures and near-record unemployment. “When we see reduced lending in this sector of the housing market, we have to recognize that we will be facing harder times,” he said. “However, there is a solution.”

“Without FHA Project Approval, lenders must decline loan applicants applying for FHA loans as FHA will no longer insure loans in that condominium. The solution will be for the condominium to re-certify their project approval. FHA loan products will become available immediately upon approval restoring the availability of credit within the development.”

Tomaselli advises many, if not most, of his consulting clients to seriously consider FHA Project Approval to create such credit.

Buying a home now is a no-brainer

Buying a home now is a no-brainer

What can we expect for the real estate market moving forward?

What should we expect moving forward is a question I get asked often. Although we cannot completely predict the future, past market knowledge is a good indicator of what's to come. I liked this article from Trulia and RealtyTrac and thought it was worth sharing. 58% of Americans expect the housing market to recover after 2012.

Trulia.com, a top site for home buyers, sellers and renters, and RealtyTrac, a leading online marketplace for foreclosure properties released the latest results of an ongoing survey tracking home buyers’ attitudes toward foreclosed homes. Results of the survey conducted online from November 2-4, 2010 by Harris Interactive on behalf on Trulia and RealtyTrac showed that Americans continue to grapple with uncertainty about the housing market, with 58% of U.S. adults expecting recovery to take at least another two years.

As a result of the recent robo-signing debacle, half of U.S. adults expressed that they now have less faith in mortgage lenders, banks and the government. Another 35% believe the robo-signing issue will delay the housing market’s recovery, while only 6% of U.S. adults think the robo-signing issue will have no effect on the recovery of the housing market.

“More and more, American homeowners, -sellers and -buyers are tamping down their expectations for a swift recovery in the housing market and bracing themselves for a long, slow climb back to a healthy real estate market. Fifty-eight percent believe recovery will happen after 2012 and more than one in five U.S. adults believe recovery won’t happen until 2015 or later,” said Pete Flint, co-founder and CEO, Trulia. “Government incentives have come and gone and historic lows in interest rates have done little to spur recovery. Then, as if prospective buyers and sellers needed more to be concerned about, the robo-signing issue caused a ‘what’s next?’ fear to surface in the minds of consumers who, frankly, have lost faith in banks and their government to make good decisions.”

Nearly half (48%) of homeowners with a mortgage admitted that they would consider walking away if their mortgage was under water, an increase compared with May 2010, when only 41% said they would consider walking away if their mortgage was under water. Interestingly, men (57%) are more likely than women (40%) to consider strategic default as an option for dealing with negative equity.

If they became unable to pay the mortgage payments on their current primary residence, two-thirds of U.S. adults with mortgages said they would consider calling the lender and trying to modify the terms of the loan as their first option. The next most popular solution is to have a tenant move in to contribute to the mortgage, but only 10% of U.S. adults would do this.

Nearly half (49%) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45% in May 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure. Over the past six months, the number of U.S. adults who believe there are downsides to buying foreclosed properties has increased to 81%, from 78% in May 2010.

Two-thirds (67%) of U.S. adults would expect to pay at least 30% less for a foreclosed home than a similar home that was not in foreclosure, and one-third of U.S. adults (35%) would expect to pay at least 50% less for a foreclosed home. Overall, 97% of U.S. adults would expect at least some discount on a foreclosed home.

“It seems like consumer expectations and market realities are beginning to align when it comes to foreclosure discounts,” said Rick Sharga, senior vice president, RealtyTrac. “During the third quarter, foreclosure homes sold for an average of 32% less than homes not in foreclosure. It’s also not surprising that we’ve seen an increase in negative sentiment toward foreclosure purchases, where the recent robo-signing controversy has added more confusion to an already complicated process.”

What are Some Crafty Ideas for Winter Curb Appeal?

During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.

Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario-a city that averages 51 inches of snow per year. It just requires a little creativity. She and other home-design experts offer these eight tips.

1. Add splashes of green and purple.

Plants, grasses, and evergreens can liven up a home's winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door.

2. Give it seasonal sparkle.

Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores). For extra sparkle, roll twigs in glitter and incorporate a gazing ball-a mirrored glass ball available in various colors-into the display.

3. Light it bright.

During the winter, it's more likely that buyers will be viewing homes after sunset. Use clear flood spotlights to focus on the home's architectural features. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, take photos of your home at night with all of the interior lights on-the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash.

4. Show off the lifestyle.

Just because it's cold outside doesn't mean you can't use the deck. Shovel your backyard sitting area and leave your grill uncovered for showings so buyers can envision themselves using the space.

5. Make the deck the extension of the house.

Set up your outdoor tables and chairs just as you would in warmer months. "Home owners often cover their furniture and place lawn objects haphazardly on the deck," says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. "Glancing out onto this type of vignette can make the indoor space feel larger and more interesting," she says.

6. Create a photo display of sunnier days.

Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. "This will give a sense of what the property looks like at other times of the year," Storozuk says. If the home has a garden, make a list of what is planted where. Perennials can be expensive, so treat them as a selling feature.

7. Don't forget a clear path.

If the ground is covered in snow, the simplest and most important thing you can do is shovel the driveway and sidewalks and keep the home's patios and decks as clear as possible so buyers can get a sense of their true size.

The Road To "Normalcy"

Recently, I had the chance to hear Lawrence Yun, the National Association of Realtors Chief Economist. He is very knowledgeable on the overall housing market and had some good thoughts I wanted to share with you all. I think it is great information!

Prior to the recent mid-term elections consumers expressed their troubling unhappiness about their situations. The index measuring confidence about consumers' present situation, which is based primarily on questions related to the economy, job and personal finances, was 23.9 in October. That is much lower than the neutral 100 mark and essentially at near historic lows-even matching the levels at the depth of the recessions in the early 1980s and early 1990s.

Of course, Americans are a tough-minded people who understand that bad events occur sometimes, but they are also always ready to pick themselves up. However, what is different this time around is that consumer are decidedly less optimistic about the future. Consider-the consumer confidence index about future expectations is currently 67.8, not as bad as the "present conditions" index, but much loser than the reading of 115 in 1983 when the economy also suffered from the same 9.6 percent unemployment rate that is occurring today.

Businesses through their actions have also expressed less confidence about the economy. Corporate profits are back up to their peak before the recession, yet business spending has been lackluster. Companies are just sitting on cash and not redeploying that cash back into the economy.

Meanwhile, the housing market is trying to scratch out a decent recovery under its own power without any federal stimulus of a home-buyer tax credit. Existing-home sales (actual closings and not contracts) rose to 4.5 million units (seasonally adjusted annualized rate) in September, a solid 17 percent cumulative gain over two months following the big tumble in July when the tax credit was no longer in effect. Home sales would need to rise to at least the 5-million unit mark to be considered "back to normal" under present circumstances where the total number of jobs is equal to that in the year 2000. Back then, existing-home sales registered 5.2 million units and so 2000 would also have been considered a very normal year without any hints of a housing bubble. The 7.1 million bubble-ish home sales of 2005 is long gone and will not return until both population and job growth over many years can rightly justify such levels.

The currently anticipated housing recovery is about returning to normalcy. All data point toward the market being back to fundamentally justifiable levels. The home price bubble has been fully deflated. The cost of constructing new homes is measurably higher compered to buying a nearly identical existing one. Home sales in relation to total jobs are back to normal. Home price to income ratio is slightly below historical trends, signaling a slight over correction.

the return to normalcy, however, will not be a straight upward path. We've seen evidence of that already. September's pending home sales (i.e., contract signings) took a step back after two consecutive months of increases. This type of trend-two steps forward and one step back-is likely to occur in the coming year as well. The underlying fundamentals of rising demand are present in the forms of compelling affordability condition and from job creation. But while investors appear eager to "get in" as well, they are being hampered by very tight mortgage availability for non-owner occupancy loan. In addition, the hiccups to recovery will also arise from market swings in economic data and from a a flow of foreclosed/REO properties reaching the market.

Yes, there was some good news on the job market in October with the creation of 151,000 net new jobs. Indeed, the job market has clearly turned the corner. Since January, about one million private sector jobs have been created. The pace, however, needs to kick into a higher gear. At the current job creation pace, the economy is just treading water and there will be no meaningful improvement in the unemployment rate.

The mortgage rates are at rock bottom, but are still likely to head higher. Even after the announcement of a second try at 'quantitative easing' by the Federal Reserve (QE2 in today's vernacular), which means more purchases of government bonds with freshly printed money, the long-term government borrowing rate rose, perhaps out of future inflationary fears. The 10-year and 30-year Treasury yields in mid-November were 2.6 percent and 4.2 percent, respectively. That is up from 2.4 percent and 3.7 percent, respectively, one month prior.

The QE2 attempt to keep long-term rates lower, which may or may not be working, is inconsequential to the market compared to the importance of returning lending standards to normal from their overly stringent rules currently. A well-known banker's axiom says that all bad loans are made in good times. Today's defaulting mortgages were invariably originated during the bubble years with lax underwriting standards. Both FHA-along with Fannie Mae and Freddie Mac-are reporting that those mortgages originated in the past two years are performing quite well. But the continuing anecdotal stories of good credit-worthy consumers being denied a mortgage probably hint at unreasonably tight underwriting standards.

We certainly don't want to return to any lax standards, but denying mortgages to those who are capable of making payments is holding back a true recover in both the housing market and the broader economy.

The baseline forecast is for existing-home sales to rise 6 percent in 2011 to 5.1 million units-up from 4.8 million in 2010. new home sales will rise to 400,000 in 2011 from 300,000 this year-a big increase in percentage therms but still well below normal yearly sales activity. Home values overall are not likely to move in any measurable way, up or down. We are lucky to be in Denver, where home prices in the metro area are up 2% from this time last year.

Thinking About Buying a Short Sale?

Thinking about buying a short sale? You may not like the bank's short-sale conditions, but any deviation from the rules can be risky. If you fail to agree to the terms-the sale can be put into jeopardy. There could also be civil and criminal actions if the terms are violated.

The buyer must be an owner occupant
The acceptance of a short payoff is sometimes conditioned upon the buyer living in the home. In lenders' eyes, this rule is based upon the theory that an investor would be interested in buying the home only if there were some undisclosed equity in the property-and that equity should be going toward the payoff. Even if buyers come into the transaction with the legitimate intent to become owner-occupants but then end up renting out or reselling the property soon after closing, this could be in breach of the lender's terms.

The purchase price must be highest and best
In certain instances, a practitioner might be aware at the time of the short sale that the buyer is under contract to sell the property to another party for a profit. While this may make business sense for the buyer, it would violate a condition in which the parties certify the purchase price to be the highest and best price obtainable. In transactions that are part of the Affordable Foreclosure Alternatives program, the federal government prohibits a sale by the buyer of the short-sale property for 90 days after the purchase.

Proceeds received by seller
To help the seller net more money than permitted by the lender, the buyer might make a side agreement to move in early and pay rent or the purchase personal property such as furnishings. But if the lender's terms include a condition that the seller net no more than a stated amount, then the seller cannot use these side agreements to circumvent that restriction. Payments to the seller for rent or personal property should be disclosed to the lender on the HUD-1 settlement statement, and any amount over what's stated on the HUD-1 would violate the lender's terms. Also, the short sale may not be approved in time and the home goes into foreclosure or to an auction. What if you were living in the home?

Even if the lender has already issued an estoppel letter or short-sale agreement, it could legally refuse acceptance of the negotiated payoff if its conditions aren't met. And considering how much effort and energy go into a short sale transaction, that is an outcome no one would like. The bottom line: Once the lender has made clear what it's willing to take to accept a short sale payoff, anything a buyer may do to get around those terms can spell big trouble.

There are some short-sale bargains on the active market at this time and these are important things to think about before writing an offer on one.

How can I cut my electric bill painlessly this winter?

Try these few simple tricks that can save you a bundle.

Compact fluorescent lamps (CFLs) are much more efficient than incandescent bulbs and last six to 10 times longer.When Mom told you to turn out the lights, she was thinking of saving energy dollars, not rolling blackouts and bankrupt utility companies. Rarely have Mom's words of wisdom been as fitting as they are now and not just in California. Electricity rates are going up everywhere.

Besides switching off lights, there are several other painless methods to conserve energy and save money on your electric bills.

Plug ins
Look for those electronic devices, especially those with digital time and date displays that are infrequently used such as alarm clocks, TVs and VCRs in a guest room and unplug them.
Unplug devices used to recharge electronics/batteries when they're not being used.
Transformers consume energy. Consider unplugging devices like calculators that are not in use.

Appliances
Wait until you can fill up your dishwasher before running it. And if you have a heated-dry option, switch it off. Prop open the door a bit after the cycle to air dry your load.
If you have an electric cooktop, turn the burners off a few minutes before the allotted cooking time. The heating element will stay hot long enough to finish the cooking without using more electricity.

Refrigerators
Refrigerators use more power than any other appliance in the home and deserve special attention. Although rushing out to buy a new refrigerator may not be in your budget, it is important to know that new models are more efficient and use as little as half the electricity of older units. Full refrigerators run more efficiently than ones that are only partially full. So buy more food and save some energy.

If you have two refrigerators, or an additional freezer, decide if the extra expense is really worth it. Cram as much as you can into your primary refrigerator or consider disposing of two older refrigerators and replacing them with one larger, newer and more efficient model.
Make sure the refrigerator door seals are tight. Test them by closing the door over a piece of paper or a dollar bill so it is half in and half out of the refrigerator. If you can pull the paper or bill out easily, the latch may need adjustment or the seal may need replacing.
Place food and liquids in airtight containers. Uncovered foods release moisture and make the compressor work harder.
Move the refrigerator away from the wall and vacuum its condenser coils yearly unless you have a no-clean condenser model. Refrigerators will run for shorter periods with clean coils.
Maintain a consistent temperature in the refrigerator and freezer. Recommended temperatures are 37 to 40F for the fresh food compartment of the refrigerator and 5F for the freezer section. If you have a separate freezer for long-term storage, it should be kept at 0F.

Lighting

Its obvious, but true: Turn off lights that are not being used. Consider installing timers or photo cells on some lights. Another option is occupancy sensors that turn on and off automatically when someone enters or leaves a room.
Rather than brightly lighting an entire room, focus the light where you need it. For example, use fluorescent under-cabinet lighting for kitchen sinks and countertops
Consider dimmer switches and three-way lamps. These provide low light levels when bright lights are not necessary.
Use linear fluorescent and energy-efficient compact fluorescent lamps (CFLs) in fixtures throughout your home to provide high-quality and high-efficiency lighting. Fluorescent lamps are much more efficient than incandescent bulbs and last six to ten times longer. Although fluorescent and compact fluorescent lamps are more expensive than incandescent bulbs, they pay for themselves by saving energy over their lifetime.

Realty Times - Value in Homeownership

Realty Times - Value in Homeownership

Easy Fixes for 4 Household Problems

Problems like squeaky stairs and oil stains on the garage floor can be quick turnoffs to buyers. But these common household troubles need not hold your home back from selling-particularly if they're relatively easy for a do-it-yourselfer to fix. While it is best to bring in an expert to correct big problems, below are tips from Lynda Lyday for capable home owners who want to try their own hand at a solution.

Problem: Oil Stains on Garage Floor
Lyday's solution: "You can remove most of a stubborn oil stain with a bit of elbow grease and scrubbing. First, remove the surface oil by sprinkling some cat littler on it to soak it up. Then clear away the cat littler and focus on the stain. Make a paste of hot water and dry dish or laundry detergent. Use a stiff bristle scrub brush to scrub the area with the paste. Hose the area and let it dry. Another method is to use a product such as Spray 'n Wash on a stain for ten minutes, along with a dry detergent. Your last option is to spray on some oven cleaner. Use this sparingly, wash it down thoroughly, and keep children and pets away from it."

Problem: Leaky Faucets
Lyday's solution: "Most faucet leaks can easily be fixed with a rubber washer, an O-ring, depending on what type of faucet it is. By fixing the problem yourself, you can save a good bit of money since plumbers can be expensive and will charge you a standard fee even if it takes only ten minutes to fix the problem."

Problem: Nail Pops
Lyday's solution: "Nail pops are a problem across the country. The term comes from the nails that hold the drywall to the studs actually popping out through the face of the drywall. This is from either a house settling or the wood studs drying out over time, squeezing the nail out of the wood and pushing it through the drywall. The fix for this isn't terribly hard, but it's tedious because there are up to 32 nails in a 4-foot by 8-foot sheet of drywall. My suggestion is to pound the nail through the drywall to the stud. Then, just above it, place a drywall screw to hold the drywall to the stud, and finish it off with a few coats of spackle or join compound. Finally, seal and paint it. Most home-improvement stores also sell nail pop kits that can make this job easier."

Problem: Squeaky Stairs
Lyday's solution: "The most common problems that occur in a staircase are the treads (horizontal surface of the steps) coming loose, which causes squeaking. Also common are the spindles or balusters coming loose. If you can get underneath the staircase, fixing the treads is easy. You will need to attach an L bracket from the underside of the tread to the stringer (the long piece of wood that connects the treads and runs diagonally up the wall). If you can't get underneath the staircase, you'll have to make the repair from above. Squeaky stair kits are available that allow you to make this fix even through carpet. Otherwise, you can secure the tread to the stringer with a trim screw."

What is happening with Colorado urban foreclosures?

The below article was recently in the Denver Business Journal. It has some good statistical information for your review. Please let me know if you have any questions.

Foreclosure filings in Colorado's largest counties fell 10.1 percent in August from a year earlier, but were up 15.6 percent from the previous month, the Colorado Division of Housing reported Tuesday. Meanwhile, foreclosure sales in the state's urban areas were up 29.7 in August from 2009 and up 11.5 percent from July 2010.

"This movement upward ends several months of generally declining foreclosure sales totals, although an upward trend has not been established at this point," the state report says.
However, "given recent declines in foreclosure filings, foreclosure sales are likely to continue a general downward trend," the report adds.

A three-month moving average shows foreclosure-filing rates gradually dropping in the urban counties since mid-2009. Foreclosure sales usually come several months after a filing.
The state's monthly "Metropolitan Foreclosure Report" covers 12 urban counties of Colorado: Denver as well as Adams, Arapahoe, Boulder, Broomfield, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo and Weld counties.

According to the state report, there were 3,142 new foreclosure filings in the urban counties during August, down from 3,496 in the same month of 2009 but up from 2,718 in July 2010.
There were 1,763 foreclosure sales at auction last month, up from 1,359 a year earlier and up from 1,581 in July 2010.

Foreclosure filings are the first stage in the foreclosure process, which can either lead to a foreclosure sale of a property several months later or a homeowner avoiding a sale by settling with a lender. Foreclosure sales figures include properties that revert to the lender as well as sales to a third party.

By county, Adams County saw the greatest year-over-year decline in new foreclosure filings in August among the state's urban counties, down 24.2 percent, followed by Denver County (down 20 percent) and Arapahoe County (down 15.2 percent).
New finings increased the most in Pueblo County (31.6 percent) and Jefferson County (8 percent). Of the 12 counties in the report, Adams County had the highest rate of foreclosure sales in August (one per 616 households) and Boulder County the lowest (one per 2,029).

For the eight-month period ending in August, foreclosure filings in the 12 urban counties declined 11.8 percent from the same months of 2009, while foreclosure sales rose 21.4 percent.
Of the 12 counties, Denver saw the greatest decline in new filings between the two eight-month periods, down 22.1 percent, followed by Adams (down 17.9 percent) and Larimer counties (down 17.3 percent). Only Mesa County saw a rise in filings (up 51.3 percent) between the two periods.

In a separate Division of Housing report released August 5th, covering the entire state and giving second-quarter numbers, officials said new foreclosure filings in Colorado fell 15.7 percent in the quarter from the same period of 2009, but foreclosures sales rose 17.7 percent.
It was the third consecutive quarter with a decline in Colorado filings from the previous quarter, and the lowest quarterly filings tally in five quarters.

What are some ideas for selling your home in today's market?

On paper, now may be a great time to buy a home. Interest rates are at historic lows. Many sellers are motivated and there is a substantial amount of inventory in many markets.

However, taking a property from "Just Listed" to "Just Sold" can be a difficult task in today's market. As Realtors, we see that reality every day. Some buyers are having difficulties in securing financing. There are more challenges in getting properties to appraise. More effort is needed to get a listed property to stand out in a sea of available listings.

As a seller, how can you best position your property for sale in today's market? I've put together a few tips to help:

Make Your Home More Marketable: As the saying goes, you only get one chance to make a good first impression. You can maximize curb appeal by trimming trees, planting flowers and even rolling out a new lawn if needed. A fresh exterior coat of paint might also improve the appearance of your home. Also, consider having a professional "stage" your home to make it even more attractive for buyers.

Choose a Realtor With a Proven Marketing Plan: Now more than ever, you need a professional Realtor who will help you merchandise and market your home. According to the National Association of Realtors Profile of Home Buyers and Sellers 2009, 90% of buyers used the Internet to search for homes. You therefore need a Realtor who offers an aggressive online marketing campaign on the country's most visited real estate websites. Just to give you an idea, as a Coldwell Banker Residential Brokerage Agent, my listings are marketed thought the use of over 300 websites around the country to create more exposure for your listing. Other marketing techniques like "Just Listed" postcards, professional photography and brochures, virtual tours, property websites and more can also help generate more interest in your listing. It is important that you choose a Realtor, like myself, who will create an effective marketing campaign to help you sell your property.

Conduct a Full Home Inspection: If repairs are required, it is a good idea to go ahead and repair the problems. Potential buyers will cast an extremely critical eye over your home and, in when there are more houses to pick from, buyers may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers and disclose all of the repairs that have been made along with the cost of each repair.

Price Your Home According to the Current Market: Just because a home that may have been comparable to your sold for a very high price last year does not mean that you will be able to realize the same price when selling your home now. According to Chris Mygatt, President of Coldwell Banker Residential Brokerage in Colorado, "It's probably not a good idea in today's market to simply pick a price to 'test the water.' Listing a home at a competitive price at the inception of the marketing period usually brings greater success to today's sellers." Work with a full-service real estate professional to help you determine an appropriate, competitive listing price for your home on current market conditions.

Finally, try not to worry. Properly priced home that can stand out from the competition are selling. Feel free to ask me how long properly priced homes may remain on the market in your area. This information will enable you to better understand the marketing process.

What is the Denver market doing at this time?

This is a question I get asked a lot and one of great importance to home buyers and home sellers. Although things have slowed down since the expiration of the tax credit, rates are still extremely low, which increases buyer's purchasing power. Also, with rates being so low, buyers can save much more than the federal tax credit over time, which was valued at $8,000. Denver is still faring better than many cities in the country, but I believe in the next few months, sellers may need to be more willing to negotiate if they would like to sell their homes as we move into the fall and winter months since the Denver market is slightly cyclical.

Home prices in the Denver-area rose by 1.8 percent in the year ending in June, according to the closely watched S&P Case-Shiller report released today. Denver ranked No. 9 of the 20 metropolitan statistical areas tracked in the S&P/Case-Shiller Home Price Indices. Overall, the 20 MSAs rose by 4.2 percent.

Market rebounds
In June 2009, the Denver area housing market showed a 3.6 percent drop from June 2008, according to Case-Shiller. Despite the drop a year ago, that was good enough for third place out of the 20 MSAs, showing how much the market has changed during that 12-month period.
That is true about the entire country’s housing market, noted David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year,” Blitzer said.

National outlook
“The monthly composites cover June and the national index covers the second quarter, when the government’s program for first time home-buyers was winding down,” noted Blitzer, of Standard & Poor’s.
“While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead,” said Blitzer. He noted that California’s cities “have moved from some of the hardest hit to three of the four leading cities based on year-over-year gains. Among the other hard hit cities, the news is also a bit encouraging – Las Vegas, however, remains among the weaker cities.” And 17 of the 20 MSAs and both composites “saw home prices increase in June over May – LasVegas was down 0.6%, Phoenix and Seattle were both flat. Through the second quarter, 15 of the 20 MSAs and both Composites have positive annual growth rates, and no market is registering a double-digit decline. The worry starts when you remember that the Homebuyers’ Tax Credit has expired, foreclosures are still at high levels, and July data on home sales and starts were very, very weak. The inventory of unsold homes and months’ supply data were particularly troubling. If this relative weakness in demand continues, it will likely filter through to home prices in coming months.” San Francisco showed the biggest one-year percentage gain, rising by 14.3 percent. San Diego was No. 2 at 11.2 percent. Phoenix, showed a 6.0 percent gain, while Las Vegas, declined by 5.2 percent.

Long-term, Denver’s housing market has gained about 29.19 percent from January 2000, compared with an overall appreciation of just under 48 percent for the 20 MSAs. Denver’s long-term appreciation is very close to the inflation rate during that period. Washington, D.C., showed the most appreciation, with home prices rising an average of 85.77 percent from January 2000. Detroit continued to be the only MSA to lose value over the long-term, with homes values falling by almost 30 percent since 2000.

What is happening in our national and local market at this time?

What an interesting past couple of months! I hope this update will help you to decide if this is the right time to buy a home in Colorado.

With the expiration of the federal tax credit, the housing market is facing a key inflexion point as we head into the thick of the summer vacation season. The government stimulus has certainly helped spur a rebound in the real estate market, but the recovery is fragile and observers are watching closely to see if the market can grow without the support of government aid.

Several key economic announcements out this week could possibly bolster the nascent recovery. Mortgage finance giant Freddie Mac announced that U.S. mortgage rates have fallen to a record low. Rates for 30-year fixed loans declined this week to 4.57 percent from 4.58 percent. That is the lowest since Freddie Mac began tracking rates in 1971.

While the overall level of real estate activity has eased in recent weeks with the expiration of the tax credit deadline, many economists believe that low mortgage rates will spur growth in the market by reducing borrowing costs for home buyers. Mortgage interest rates have tumbled in the past two months as concern that a debt crisis in Europe may spread boosted demand for the safety of bonds, including mortgage-backed securities.

Meanwhile, Reuters recently reported that consumer sentiment rose in June to its highest level since January 2008 while reports of job losses were down sharply from a year ago.
The Thomson Reuters/University of Michigan’s survey of consumers, a key gauge of consumer sentiment, rose to 76 from 73.6 in May. The figure was above the median forecast of 75.5 among economists polled by Reuters. At the same time, reports of job losses fell by half since last June, from 65 percent of respondents to 29 percent, the survey showed.

“The June 2010 survey recorded the most favorable news heard by consumers about jobs in five years,” Richard Curtin, director of the surveys, said in a statement. But he cautioned that consumers “do not anticipate significant declines in unemployment during the year ahead.”
Consumer sentiment is seen as a proxy for consumer spending, which fuels around 70 percent of the U.S. economy. Positive consumer sentiment is particularly critical to the housing market. If buyers are more optimistic about their future, they’re more likely to take out a mortgage and buy a home.

So where does this all leave us as we look at the Colorado housing picture? As reports from our local offices indicate, the market continues to be steady in most communities. But the recovery from last year’s recessionary lows will likely be a gradual one with its share of fits and starts along the way. Unemployment levels will play a key role in the recovery, as will the health of the stock market and the overall national economy.

While there are certainly economic challenges right now, for buyers with a long-term view, the current market provides an attractive opportunity to invest in real estate while mortgage rates are at historic lows and homes are priced more competitively. Savvy buyers are taking advantage of this great combination of home prices and interest rates.

Is it time to remodel or buy a new house?

Have you been pondering whether or not to remodel your kitchen or bathroom? Does there just not seem to be enough space? Are you things constantly getting cluttered? Many homeowners are facing similar issues and are starting to pose the question to themselves, "Is it time to remodel or buy a new home?"

Interestingly, in today's market, thanks in large part to the market correction we've seen over the last few years, many homeowners are comparing the high cost of remodeling with the opportunities in the move-up real estate market and realizing that it may make better sense to move rather than remodel. I recently came across this article on MSNMoney.com, written by Liz Pulliam Weston, which poses the question, "Is it time to remodel...or buy a new house?" and wanted to share a few excerpts with you. I feel it gives an accurate portrayal of the pros and cons associated with remodeling and moving and may give you some food for thought in making your own real decisions.

"When his clients ask whether they should remodel their homes, financial planner Phillip Cook of Torrance, California likes to recount the night he and his wife spent trying to keep El Nino rains from flooding their partially renovated home.

"All these tarps over the construction came loose, and we were up there trying to pound nails at 2 a.a. to keep them from blowing away," Cook said. My poor wife. And the neighbors..."

That wasn't the only nightmare the Cooks faced in the year-long transformation of a 900-square foot beach bungalow into a 2,600 -square foot home. The ongoing hassles, the unexpected expenses, the now-you-see-time-now-you-don't workmen - all have left Cook with little question about whether remodeling or moving is better.

"It's like asking if you should poke yourself in the eye or go on a cruise," Cook said. While he likes the end result, I wouldn't do it again."

Americans love (or say the love) to remodel

There are, of course, plenty of people who are happy with their renovations, and remodeling is certainly a thriving business. For many people, though, moving is the simpler, less expensive and certainly less stressful option

At first glance, there seems to be plenty of cost advantages to staying put and renovating. If home prices re accelerating rapidly in your area, you may be able to add on for less than than it would cost you to buy a bigger home.

You also avoid the considerable costs of selling your home, building a new one and moving, which can drain away 10% or more of the value of your home each time you change abodes.

How necessary is this project?

The word "necessary" is in quotes, because a bigger or nicer home is a want, not a need.

that's easy to forget when you're drooling over the neighbor's newly-redone kitchen or tripping over your kid's toys in what feels like an incredibly shrinking house. But generations of families have lived in homes that are probably a lot smaller than and perhaps not as nice as yours.

The average new home in 1970 was about half the size of new construction today -- and it had more people living in it. "The average household size was 3.14 people back then, and 21% of household had five or more people. Toddy the average is 2.62 people, with only 11% containing five or more."

Before you assume moving or modeling are your only choices, consider alternatives:

De-clutter. Getting rid of excess stuff and organizing what's left can transform you space, said designer Nancy Geoghegan, without the expense of a move or remodel. "Once they clean out and clear up, they discover they have more space than they thought they did," said Geoghegan, whose Fort Lauderdale company One Day Decor specializes in helping clients redesign their homes using their existing stuff. "Everything takes on a completely different feel."

*Refurbish instead. Kitchens, for example, can be updated by refacing cabinets, resurfacing countertops and replacing worn flooring. That's going to be a whole lot cheaper than ripping out all the cabinetry and starting over.

*Repurpose rooms. Never use the formal dining room, but need a home office/ Rather than build or buy, consdier reusing the space you've got.

What are the real costs involved?

Getting a handle on cost may be one of the toughest parts of any move vs. remodel decision, largely because renovations can be hard to predict. Once you tear into a wall or start excavating, who knows what you will find.

An architect can help give you a ballpark on a remodel, and they may even point out some ways to save money.

But for the real scoop, you'll need to get detailed quotes from a few contractors or builders who do work of the same type and quality that you want. You need to talk to someone who buys materials and bids projects every day to get an accurate price.

Remodeling veterans recommend building in a safety net by adding 10% to 20% to whatever estimates contractors give you. Then consider:

*The out-of-pocket costs of construction (any saving or other funds you plan to devote to the cause).

*The cost of any financing (usually your monthly payments multiplied by the time you plan to remain in the house).

*If you're adding on rather than renovating, the cost of higher utility bills, bigger homeowner's insurance premiums and greater property taxes form your addition space.

When computing the costs of moving, consider:

* Real estate commissions, closing costs and moving, which typically equal 10% or more of the house you're selling.

*The cost of the new, presumably bigger mortgage, multiplied by however long you plan to be in the house.

*The cost of higher utility bills, bigger homeowner's insurance premiums and greater property taxes over the same period.

*Any new furniture, window treatments, landscaping or other fix-up changes over the years.

How are foreclosures looking in Colorado?

New foreclosure filings in Colorado rose 6 percent in the first quarter compared with the same period in 2009, according to date released Thursday.

There were 11,136 new filings, compared with 10,509 during the first quarter last year, according to the report by the Colorado Division of Housing. But foreclosure filings are down 4.3 percent compared with the first quarter of 2008.

"Foreclosures aren't really going up much, and there's no sign of a big increase, but they're not going away anytime soon," said Ryan McMaken, spokesman for the division. "We will only start to see big dips when there's job growth. This ties into the larger economy."

Since the first quarter of last year, foreclosure filings have dropped in 22 counties, with the largest declines in Larimer and Pueblo counties, which fell 15.1 percent and 9.7 percent respectively. Mesa County reported the largest year-over-year increase at 126.9 percent.

"Statewide, the numbers are stable, but that doesn't mean all counties are stable," McMaken said. "The plateau that's occurred on the Front Range doesn't apply to the mountains and the Western Slope."

Meanwhile, the number of foreclosures sold at auction rose 53.6 percent compared with a year ago, but the increase is largely because of the end of a national moratorium on processing foreclosures that was instituted in late 2008 and early 2009.

Foreclosure sales were up 13.3 percent from the first quarter of 2008, rising from 5,899 to 6,686.

As the moratoriums have lifted, banks have started offering more options to help borrowers work out their loans, said Shannon Peer, director of housing counseling at Brothers Redevelopment Inc.

"Banks are working with borrowers more than ever before," he said.

Why is my home not selling?

In today's market and with the tax credits set to expire at the end of the month, sellers now realize that every showing counts and perspective buyers are out in the market and motivated.

Nothing is more frustrating to a seller than getting a lot of showings, but no offers or nibbles. The question then becomes: "Why is this occurring, and how many showings are normal before getting an offer?"

I will answer the latter question first. Usually after the 10 to 15 showings mark, an evaluation is in order. If you have had this many showings and there is no offer, then it is time to find out what needs to be changed.

Which brings us to the first question: "Why isn't the home getting an offer?" First, always have your agent check and go over with you all of the feedback sent in from other agents that have shown the home. Not all agents provide feedback, but do look at all the feedback that was submitted. Sometimes, this tells the entire story on why your home has no offer. Listen to it and adjust to what the buyers and their agents are telling you about your home.

If that does not help, then you can bet your bottom dollar that there are two things that are holding up the sale of your home. Either the listing price is too high or the home is not showing well. Let us say the home is not showing well from the feedback received. Try having a professional stager to come in and give their honest opinion. If you believe they have some worthwhile tips and information, hire them to stage the home to sell.

More than likely though in this market, the reason why your home is not getting an offer is because of the price. Buyers are very knowledgeable and in today's marketplace, it really is coming down to price. Sometimes you are closer than you think on zeroing in on the right price to obtain an offer. Again, if you are getting showings but no offers, you may just be 3-5 percent off. If you are not getting many showings, you may be 5-8 percent off. Additionally, if you are getting no showings at all, you could be 10 percent or more off the real price of your home.

Now is the time to sell and move on to a new, wonderful home!

Top Seven Home Improvement Investments

If you want your home to have "curb appeal" and get a great return on the improvements you make, take note of best home improvement investments; these will make it easier for you to sell your home when you decide on making a move.

Below are some home improvement ideas that are more budget-friendly and will still give you back a good return and value for your money.

Kitchen remodel
Updating your kitchen's look may come in various ways. You can choose to remodel the whole kitchen or just one aspect of it; i.e. lighting, tiles or cabinetry. Kitchens help sell homes, so if a prospective buyer likes your kitchen, there is a great probability the buyer will look more favorably on the whole house. One good example is getting a new kitchen counter top. For a little below $300, you can buy new kitchen counter tops; counter top laminates now come in a wide variety of colors and are stain resistant. You can easily install it yourself; the trickiest part is cutting the whole for the sink. Tile and granite counter tops are more expensive, but will give your kitchen an elegant look that will not depreciate for years to come.

Tile floors
Houses with beautiful and durable tile floors will give would-be buyers the impression of quality. To get the best value from your new tiles, make your they are installed correctly; e.g. the tiles have been laid evenly and securely.

Bathroom remodel or addition
Another investment that will boost your home's value you can do is remodeling or adding furnishings to your bathroom. A new set of light fixtures, faucet or shower will help sell your home faster. Updating your current bathroom's look will also improve your daily routine. A few examples of this type of remodel are artistic sink fixtures, jetted tub, skylight, storage or new cabinetry.

Siding
Siding improvements aside from vinyl are also options for increasing value. You can choose metal, stucco, wood, brick or stone siding. There are many choices of new siding products today that are "high tech"; they insulate, are fire resistant, do not require painting and are weather resistant.

Basement remodel
With a basement remodel, not only do you expand your living space, it is also cost effective. You can convert part of it into a guest suite, children's playroom or home office. You can do also add new windows for additional lighting or add soundproofing to cut down on noise.

Roofing
Choose from a variety of colors that will best compliment your home's exterior. Roofing materials come in different types; metal, wood, slate or tile. By using slate roofing, it can potentially last more than fifty years. Be sure to choose a color that is suited to your particular climate; i.e. houses in more sunny climates should have lighter color roofs that absorb less heat from the sun. Certain roofing materials can also help save on insurance costs.

Why it should be a great spring for real estate

A year ago this time, this headline wasn’t imaginable. We were in the throes of one of the worst recessions of our time and the market was at a near standstill.

But what a difference a year makes. Today our market is seeing drastic signs of recovery and we are finally moving in a positive direction. To build on that momentum, I’ve put together my top reasons why I believe it’s going to be a good spring real estate market. Only time will tell if my theory is correct but until then, let’s take a look at the facts:

1. Tax Credits Are Helping Drive the Entry Level Market – Thanks to the $8,000 first time home buyer tax credit and the $6,500 existing home buyer tax credit, we are seeing some very strong signs of recovery in these two market niches. With the impending expiration set for April 30, we anticipate that the next two months will bring a surge of buyers looking to get in on a home prior to the credit’s expiration. That results in good news for our market and will help to decrease some of the surplus inventory and bring greater demand for those entry level sellers.

2. Interest Rates Remain Low – Even though we have seen interest rates tick up a bit in recent months, rates are still relatively low. When rates are low, it means a buyer has increased purchasing power and ultimately can get more home for less money.

3. Affordability Remains High – Due to the market correction we’ve seen over the last few years, affordability remains quite high. What this means is a larger percentage of individuals are able to purchase a home.

4. Despite Unemployment Figures, Housing Demand Will Eventually Rise – Yes, unemployment figures are high comparative to the earlier part of the decade. In fact, on a national level, the latest counts were approximately 9%, according the United States Bureau of Labor. Here in Colorado we’re running at about a 7.7% unemployment rate. While yes I would agree that the number is concerning, on the flipside it means that 93% of Coloradans are employed. If the economic outlook continues to improve, that’s going to boost the confidence of the 93%. That’s a lot of people who can boost housing demand.

5. Colorado is an Awesome Place to Call Home – It sounds a little trite and yes, I may be a bit biased, but it’s a fact. Colorado offers one of the most diverse and unique living experiences and economies in the country. From our beautiful terrain, our diverse blend of activities and our overall thriving economy, we are fortunate to live in somewhat of a thriving microclimate comparative to the rest of the country. That all adds up to a demand for housing that will help to drive our market towards recovery, possibly sooner than other states.

Let me remind all of us that the current housing is in a place of recovery. Overall what we’re seeing is a tale of two markets. The luxury market is generally seeing increased inventory and price discounting is the norm. Last I checked we had far above a six-month supply of inventory of our luxury homes. In some cases anywhere from 9-12 months+.

However, if you look at our entry level market, things really haven’t slowed down much at all. In fact, in many cases, they’re rising! We’re still seeing lots of interest for well-priced properties in good neighborhoods.

Checklist for first-time homebuyers

Good questions to ask yourself when embarking on a new home search.

1. Where do you want to live?

Do you want to live close to your family? What kind of schools do you want your children to go to? How important is it to be close to shopping, work, hospitals, community amenities, entertainment? Is a morning commute important to you?

Looking for a home really starts with looking for a neighborhood. Deciding where you want to live will save you a lot of time as well as miles on your odometer if you narrow your search in the beginning.

2. What kind of home do you want or need?

Before you start looking at home, it's a great idea to determine not only what you want in a home, but what you need. It focuses the hunt for a home and saves time because you are only looking at homes that meet your criteria.

3. How long do you expect to live in your new home?

If you plan on living in your new home for only a few years, or if you do not have children, then proximity to schools may not be an issue, but resale value will be. On the other hand, if you have a family and plan on staying put for 10 or more years, schools and home size will be your priorities.

4. What don't you like about where you are living now?

Making a list of what you do and do not want in a home will also help you weed out homes. If there are two decision makers, make sure you have common needs and wants and a couple "must haves."

5. What is your lifestyle?

Do you work from home? Do you entertain often? Are you a gardener? These are all important questions to ask yourself so you may further narrow down your search for a home. Also remember to keep your needs list somewhat flexible in case you cannot find a home in your price range with all the amenities you want. Put the list in order of importance. For example, an eat-in kitchen may be more important to you than a fireplace.

6. How much home can you afford?

The best way to know how much home you can afford is to find out how much money you can qualify to borrow. There are two thing you will wan to consider before talking with a home lender. Check your credit by getting a copy of your credit report. This determines your credit score for the three major credit bureaus, make sure to check them thoroughly for any discrepancies and errors. Also calculate how much of a monthly mortgage payment you're comfortable paying. You may qualify for a higher loan amount, but feel more comfortable paying less in your monthly budget. Think about items like home maintenance, taxes, insurance and association fees, if applicable.

How Important is a Home Inspection

Your buyer's offer has been accepted and it is time for the inspection. Often times home inspections go well, but that also depends on how well the current owners take care of their home. Is there deferred maintenance? Did the seller refinish an unfinished basement without pulling any permits to do so? What if there are high radon levels?

Whether you are buying a $100,000 home or a $1,000,000 one, getting a home inspection is perhaps one of the single-most important checks you need to conduct to make sure the home is safe and secure. If you are selling a home, however, is having an inspection as important? Some people might say no, but below presents some strong reasons why you should get an inspection, whether you are the buyer or the seller.

Buyer reasons:
Peace of mind — Puts the buyer’s mind at ease that the home is in good shape.

Renegotiate – If problems do arise, the buyer can negotiate a lower price or ask the seller to make repairs.

Opt-out — If the problems are too big or unsettling, the buyer can opt-out of buying the home.

Future needs — Buyers can learn about potential maintenance and upkeep.

Seller reasons:
Smooth sale – Sellers can deal with any issues early that could impede the sale of their home.

Make repairs — Sellers can repair problems before putting the house on the market.

Help set/increase price — By making repairs, it will help set the price of the home and could even enhance the value.

Transparency — Having a pre-inspection report available for buyers tells them that the seller has nothing to hide.

As you can see, having a home inspection is crucial for both buyers and sellers and the cost is usually only a few hundred dollars— well worth it to provide peace of mind and to know what kind of house you’re getting and the condition it is in.

Why should I fix a dripping faucet?

I received this information from my inspector. Way to look at the big picture. It seems if you have a dripping faucet and cannot fix it on your own, go ahead and call that plumber! You will be saving money in the long run and of course, water, which is a great resource in need of conservation.

Drip Calculator: How much water does a leaking faucet waste?

Check your faucets at home — do any of them drip? Well, maybe it’s just a small drip — how much water can a little drip waste? True, a single drip won’t waste much water, but think about each faucet in your home dripping a little bit all day long. What if every faucet in every home on your block … in your town … in your state also dripped? The drips would add up to a flood of water wasted down the drain.

There is no scientific definition of the volume of a faucet drip, but after measuring a number of kitchen and bathroom sink faucets, the volume seems to be between 1/5th and 1/3rd if a milliliter (mL). Drips from bathroom tubs come in a bit more, though, at about 1/2 mL. So, for our calculations below (numbers are rounded), we are going to use 1.4mL as the volume of a faucet drip. So , by these drip estimates:

One gallon: 15,140 drips

One liter: 4,000 drips

Looking at it this way, it seems like that drop of water down the drain is pretty insignificant. But, as you can see by using the form below, all those drops flowing in “real time” can really add up to a flood.

Approximate Water Wastage

Drips per day: 259,200

Liters per day: 65
Gallons per day: 17

Gallons per year: 6,248

The above information and calculator can be found at http://ga.water.usgs.gov/drought/dripcalculator.html

What documents do I need when purchasing a home?

The new year is under way and many homebuyers, first time or otherwise, are thinking about purchasing a home. With the holidays behind us and spring right around the corner, many new listings will be coming on the market. I have been finding in our local Denver metro market that homes in good condition and priced right are selling quickly, often getting multiple offers.

Since no document and stated income loans are now a thing of the past (thankfully), this article can help get you ready and make the loan process faster and easier. By being prepared, you will be ready to submit an offer and be more likely to get the best home available when you find it.

Have these items available when you are prepared to complete your mortgage application:

Proof of income
You will usually be required to show original pay stubs for the last 30 days.

Copies of your W-2 forms
These are required for each applicant on the mortgage. This will help your lender verify employment and income history.

Copies of asset information
This includes any accounts where money may come from for closing. You may need to provide statements for your savings, checking and 401(k) accounts; as well as investment records for any mutual funds or stocks.

Credit history
When you apply for a mortgage, it is necessary for lenders to pull your credit report to know how credit worthy (or risky) you are as a borrower. Be prepared to give your Social Security number and date of birth.

When the offer is written, the lender will need a copy of the signed purchase agreement and a copy of the earnest money deposit. The lender will also need to see that the home you are purchasing has clear title and that you have obtained homeowners insurance for the home.

With the recent credit crunch in the last couple of years, many lenders will verify and re-verify. It is not personal, they just want to make sure that you are fully prepared to carry a mortgage and have your debt to income ratios in order. That way, you will feel comfortable with your monthly payment and still be able to enjoy life outside your home without being "house poor."