Conservation and Financial Fitness: Going Green Can Be Golden!

The world is all abuzz with going green. No home improvement show is without stressing the ability to use recycled and re-purposed materials in home renovations. No daily talk show host has failed to embrace this issue. It is being addressed everywhere you look: Green is 'in'. While I will be the first to admit that there are aspects of home improvement where going green is outright expensive (recycled glass countertops, for instance, cost as much as granite and marble), the truth is that having your attitude in the proper shade of green means that you are thinking conservatively-- how to save in resources can translate into how to save in your pocketbook. And the Lauri Kent real estate team loves win-win situations like this! Here is an article that has several ideas on how to increase your conservation prowess. Maybe there are a few notions here that will work for you:

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Dedicated to Going Green? Follow These 10 Easy Steps

Given the pressing environmental challenges facing the world, one day just doesn’t seem like enough to celebrate the earth and make long-term environmental changes. Why not use this month as inspiration and make a commitment to do environmentally friendly activities throughout the year?

Here are just 10 ideas, along with some online resources, that you could try.

Green your office–Establish a green team with colleagues to address ways to reduce your office’s impact. A recycling program is obvious. Other strategies could entail ridding the kitchen of disposable goods, replacing equipment that hogs energy, improving lighting and HVAC systems, installing a bike rack, and replacing grass around the office with a vegetable garden or native plants. For more information, visit www.greenyour.com/office.

Shop locally–Swear off buying stuff from faraway places, even if it saves some pennies. Just consider the impact that packaging and shipping your goods has on the environment. Instead, shop locally. Walking to shops saves energy and you also help neighborhood businesses thrive.

Make mini moves–Build new habits that will have an ongoing impact. Those could include the basics, such as switching to CFL bulbs, fixing water leaks (www.epa.gov/WaterSense), or cutting the phantom power at home.

Do an energy audit–Invest in an energy audit to figure out exactly how your house wastes energy. Even if you’re on a tight budget, commit yourself to making some of the changes the auditor suggests, and start setting aside money for costlier upgrades. Find an auditor at RESNET, www.resnet.us/trade/find-raters-auditors.

Go car-free–Reorganize your schedule so you can take public transit or walk to work and errands at least a day a week.

Become a locavore–Rely on local providers for your weekly produce by shopping at a farmers’ market or joining a CSA (Community Supported Agriculture) program. And when it’s time for gift giving, consider buying CSA memberships for friends and clients. www.localharvest.org

Share your knowledge–Offer to make a presentation to colleagues at a weekly sales meeting about green changes they can make. Or pass the torch to the next generation by organizing an environmental event at a school or with a Girl Scout troop.

Raise your profile–Whether it’s a community garden, a rails-to-trails group, or a transit improvement committee, get involved in your community. Your participation raises your profile and connects you with new prospective clients, and your efforts have a direct impact on improving your community.

Learn something new–Still fuzzy on the details of programs like LEED or Energy Star? Wondering about new rebates and incentives? Spend two hours each week getting up to speed on industry programs and trends. One resource for such education is the Green REsource Council’s Webinars, one of the many great benefits available to NAR Green Designees. All the Webinars are archived at http://greenresourcecouncil.org/webinars.cfm for deisngees, and they include sessions on Energy Star, EPA’s WaterSense, USGBC’s REGREEN , LEED for Homes, and NAHB’s Green Building Program.

RISMEDIA, April 26, 2011

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So armed with these suggestions, hopefully the idea of going green is not so daunting anymore, nor so foreign from you current lifestyle. Financial fitness incorporates conservation just as much as it includes credit scores. The point is to always use your head and keep the priority that the best conservation efforts are the efforts you can sustain as lifelong habits. And can you quantify how much money you save by your Green efforts? You might be smiling when, after you fix that leaky faucet and improve that insulation, you see beautiful results appearing in your next utility bills! Now that's Financial Fitness!

The National Real Estate Outlook: Existing Home Sales Rise in March

Real Estate conditions and home sales tends change not merely from city-to-city, but there can be dramatic differences neighborhood-to-neighborhood. There is so much that feeds into how a potential home buyer evaluates a property: the corresponding school district, proximity to shopping or recreational outlets, the ease of commute from the home's neighborhood to places of work all feed in to how well home prices maintain value. It is therefore necessary, and helpful, to gauge the micro-markets with the greater real estate outlook on the greater scales of regional and national evaluation. It can answer important questions, and maybe most importantly, put a lens on the general value of homes in your area, in spite of local fluctuations. Here is the latest report that gives great news about home values.

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Existing-Home Sales Rise in March 2011

Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84% in March, down from 4.95% in February; the rate was 4.97% in March 2010.

Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.

“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.

A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.

All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.

The national median existing-home price for all housing types was $159,600 in March, down 5.9% from March 2010. Distressed homes—typically sold at discounts in the vicinity of 20%—accounted for a 40% marketshare in March, up from 39% in February and 35% in March 2010.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”

Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.

Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.

Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.

Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March, but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.

Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million, but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.

In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March, but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.

Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.

~RISMedia April 21, 2011

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What is your home's value? If your home is in the region of Southeast Texas, Lauri Kent is happy to  provide you with an evaluation of your home's value. IF you are in the market to buy or sell a home in Greater Houston, Spring, The Woodlands, Conroe or any of the towns and communities around Lake Conroe, let Lauri Kent earn your business. She welcomes your interview. Contact Lauri Kent at 936.447.6000.

Agent vs. FSBO: Is there more money to be made by Do-It-Yourself Home Selling?

Why pay someone else to do something that you can do perfectly well yourself?

Every year, approximately 12% of the homes on the market are For Sale By Owner, FSBO for short, which is the process of selling real estate without the representation of a real estate broker or agent. The merit is considered to be, of course, the avoidance of paying commission fees for selling the home. If you are considering the on-your-own approach to home sales, then the next question you must ask yourself is this: How likely am I to successfully sell my house for the price I want? How successful are FSBOs, in general, on the open market?

Only you can determine your level of confidence in engaging the home sales market, and there are some experienced individuals who claim great success at it. But if this is completely new territory for you, here is a survey that you may consider:

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Survey: Sellers Fare 50% Better With Agents

Sellers have a better chance at getting their house sold by using a REALTOR® (real estate professional) than opting for the do-it-yourself approach, according to a survey of 1,000 homeowners by HomeGain.com, an online real estate resource.

Nearly 60 percent of homeowners who used a REALTOR® to sell their home were successful compared to 39 percent of “For Sale By Owners,” the survey found.

In the survey, 83 percent of homeowners said they used a REALTOR® to sell their home, whereas 17 percent said they tried to sell it themselves. This corresponds to results from NAR’s 2010 Profile of Buyers & Sellers, which found 88 percent of sellers were assisted by a real estate agent. (Additionally, 83 percent of buyers bought their home through an agent.)

“It is especially striking that homeowners fare significantly better in selling their homes using a REALTOR® than selling on their own,” said Louis Cammarosano, General Manager at HomeGain.

“Due to that relative success, the level of satisfaction in the home-selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”

Among the findings in its For Sale by Owner vs. REALTOR® survey:

• 88 percent of homeowners who sold their homes using a REALTOR® said they would use a REALTOR® again.
• 24 percent of FSBOs eventually contacted a REALTOR® to help sell their home.

Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)

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What Fannie Mae Chief Economist Doug Duncan Sees in His 2011 Economic Forecast Crystal Ball

Rising gas prices. Rising milk prices. Unemployment rates that fail to fall. That is what we see in our present. It can make a person rather skeptical about what may be in our immediate economic future. While the prices at the pump suggest gloom and doom, there are others who foretell a bright economic future this year. One is Doug Duncan, a chief economist for Fannie Mae, positively sees a positive future. Check out his perspective:




Financial fitness is all about keeping your eye on economic trends. If you are in a position of buying or selling a home in the Southeast Texas market and would like assistance evaluating your real estate property, Give Lauri Kent a call.

The First Time Homebuyer Credit and Your 2010 Tax Return

The day is quickly approaching: The deadline is Monday, April 18th (the IRS extended the deadline because Emancipation Day is April 15th, a holiday observed by the District of Columbia). Do you have your 2010 taxes prepared?

And did you buy a home in 2008 with the First Time Homebuyer Credit? If so, it may affect how you file this year. Take a look:

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Update on First Time Homebuyer Credit and Tax Refunds

The IRS recently released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds, and it has assigned additional staff and resources to address the issues promptly.

It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns.

Here’s an update on the source of the processing issues:

1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase

There seems to be an identified processing issue primarily impacting refunds for married couples filing joint returns this year who received the First Time Homebuyer credit on their 2008 tax return. This credit was an interest-free loan, and must be paid back beginning this year under the provisions of the law.

This issue, related to Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, primarily impacts Married Filing Jointly taxpayers who filed their tax returns this year before Feb. 22. The IRS is working aggressively to manually process tax returns for this group of taxpayers. It expects most, if not all, of these refunds to be available by April 5, and others the following week. (The date assumes that there are no other issues with their return, and that their refunds are not subject to any offsets for unpaid federal taxes or other debts.)

2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home

3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500)

These two issues require changes to IRS’ core tax processing systems. The IRS is actively working on the development and testing of the required changes that will allow these impacted tax returns to be processed and appropriate refunds issued. The IRS does not currently have a definitive date for when these changes will be complete, although it will be in April.

What should taxpayers do?

The IRS understands that taxpayers affected by this issue are anxious to get the status of their refund. For those who have already filed, no action is necessary. They can check “Where’s My Refund” at www.IRS.gov for updates. Because the IRS is already aware of this issue and is taking corrective action, there is no need to call.

For those who have not yet filed and are making a repayment of a First Time Homebuyer Credit this year, there is a simple step taxpayers can take to help speed processing. Couples filing a joint return for tax year 2010 who received the credit on their jointly filed 2008 tax return should file two 5405 forms, one for each taxpayer. For couples filing a joint return for 2010 but who had a different filing status in 2008 and only one spouse received the credit, the IRS recommends filing one Form 5405 for the taxpayer who received the credit.

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If you are in the market as a first time home buyer, be aware that the government tax credit window has expired, but incentives still remain. Working with a good real estate agent will go a long way you to make sure you take advantage of all available home buying incentives and breaks.

What Documents Do You Need To Buy Or Sell A Home?

Buying or selling a home can be intimidating from the strict point of view of the paperwork involved. What documents do I need? Where do I find these papers? What do I do if I can't find them easily? Who needs to produce what documentation to whom?

One of the things a good real estate agent will do is help their buyers and sellers get all the needed paperwork together. Great real estate agents are perfectly capable of assisting clients when documentation is missing or if there are problems that need to be fixed -- like a 20-year-old lien that was never lifted, or a deed was never properly transferred in a previous sale. Like it or not, things of that nature do come up and will completely destroy a sales process. So getting your paperwork together is an important first step. To make it a little easier for you, here is a list of 10 documents you need to gather together if you are about to buy a home or sell your home.

10 Pieces of Paper You Must Round Up to Buy (or Sell) a Home