Evolution of the Virtual Tour in Real Estate

In the early 90’s, home buyers started heading out in a new direction to look for homes. It was this thing called the internet. It provided information, or at least held that promise, convenience and most important of all – it provided anonymity! The only problem was, in the early 90’s their just wasn’t a lot of information out there when it came to real estate and homes for sale.

Realtors started to catch on and along came the concept of “Virtual Tours”. Realtors wanted to provide potential home buyers, at least those using the internet, a way of touring the home from the comfort of their computer. They provided little in the way of information, since that is what Realtors hold dear and don’t want to give up easily.

Virtual tours started to pop up around the internet. In this first incarnation a virtual tour referred to basically a page on the internet that had a picture of the front of the home and perhaps some interior photos. This evolved later into a page of photos along with some music. There was more of a wow-factor for the seller to see their home showcased this way, but provided little for the buyer.

Then came “stitching” software. This allowed Realtors to take several photos (of the exterior for example) and “stitch” them together into a 180-degree panorama. These wide panoramas could then be put on the internet either as a still photo or, thanks to JavaScript, animated to move from side to side. Realtors were getting closer to the “Virtual Tour” concept.

After a little while, the idea of “stitching” photos progressed to the next logical step. Panoramas started showing up that were 360-degrees. This gave buyers a much more realistic impression of a home and it’s surroundings.

A company called iPIX truly revolutionized this concept though with it’s creation of true 360 by 360 stitching. This meant that you could have a virtual tour that went 360-degrees horizontally AND vertically. Buyers could now see those grand two-story foyers, staircases, the tops of trees and more! This was the true virtual tour, or was it?

Realtors may have finally delivered on their promise of Virtual Tours. In the last couple of years we have seen entire websites devoted to showcasing a listing of a home for sale. This gives potential home buyers the most amount of information possible. It meets all the requirements that they were looking for years ago when they first started flocking online. It provides information, more than they could possibly hope for, convenience and most important of all – it provides anonymity! The best home websites include an unlimited amount of photos, links to maps, local schools, mortgage information, property documents such as disclosures and surveys, the ability to schedule a viewing and even print of a brochure!

So, if you’re a home buyer, be on the lookout for these websites – they will truly give you a “Virtual Tour”. And if you’re considering selling your home, don’t just ask your Realtor if they provide virtual tours – ask them what kind of virtual tours! Virtual Tours have really come a long way. What’s next? Well, wait and see!

How High Did Home Prices Really Go

The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets were during the past five years.

According to the report, median home values increased 32% from 2000 to 2005 on a national level. The survey looked at 7,000 markets with a population of 65,000 or more.

San Diego saw the highest price gains. The median home value after being adjusted for inflation increased by 127% from $249,000 to $567,000 in five years.

Of the 15 largest cities surveyed, Los Angeles came in second, with a median home-value increase of 110%. New York City came in third, with an increase of 79%.

Boynton Beach, Florida, was the top market among the 15 smallest cities surveyed. After inflation adjustments, the median home-value increased by 120%. Folsom, California, came in second where the home value increased by 100%, while Redondo Beach, California, saw a 92% gain and a third place ranking.

"Just about anyone who owns a home or has been in the market for one in the past few years knows first-hand how home values jumped from 2000 to 2005," said Census Bureau Director Louis Kincannon in a written statement.

In addition to the value of the home rising, the monthly cost of owning a home also increased during the first half of this decade, according to the survey. The median monthly cost, which includes mortgage payment and other costs, saw a 5% increase after adjustments for inflation.

In Detroit, the cost increased by 24%. Chicago experienced a 22% increase, while San Francisco came in third among the largest cities with an increase of 20%.

Among the smallest cities, Bryan, Texas, and Greenville, N.C., saw cost decreases of 10%.

The cost of renting a home has also increased over the past five years. Nationally, the cost to rent has increased by 6.7%. San Diego saw the largest increase of 27%.

Real median rent cost decreased in a few large cities. San Jose saw a decrease of 9%, while Dallas saw a decrease of 3%.

Finding The Perfect Retirement Location For You

With more and more people paying attention to their physical fitness, and with vast improvements in health care and technology, retirement is increasingly becoming a time of your life to look forward to, a time when you have fewer obligations and more opportunity to do the things you've always dreamed of doing. How you end up spending your retirement depends in large part on where you choose to retire. Your retirement location determines how much you'll be spending, what services are available to you, and what activities you can engage in.

Of course, there is no one perfect retirement spot for everyone. Finding the perfect retirement spot for you depends on what you want. But here are a few suggestions.

Here's to your health The availability of good health care is a significant consideration for the retired population. Here are twelve cities in the country where you'll find a lot of hospitals.

1. Union City, NJ - 736 hospitals within a 30-mile radius
2. Jersey City, NJ - 732
3. North Bergen, NJ - 728
4. New York, NY - 727
5. Passaic, NJ - 720
6. Clifton, NJ - 709
7. Mount Vernon, NY - 706
8. New Rochelle, NY - 704
9. Yonkers, NY - 704
10. Paterson, NJ - 698
11. Bayonne, NJ - 696
12. Newark, NJ - 693

A home of your own

If you want a good bargain on a retirement home (and who doesn't?), check these cities out. They offer the lowest median home sale prices in the country.

1. Reading, PA - $42,850 median home sale price
2. Buffalo, NY - $45,000
3. Niagara Falls, NY - $47,000
4. Camden, NJ - $55,000
5. Youngstown, OH - $55,000
6. Utica, NY - $55,000
7. Flint, MI - $59,000
8. Rochester, NY - $60,000
9. Saginaw, MI - $62,000
10. Dayton, OH - $63,000
11. Pittsburgh, PA - $64,500
12. Syracuse, NY - $64,650

The people in your neighborhood

Cities with a large population of older adults offer retired persons the greatest opportunities for socialization and activity. These twelve cities have a high percentage of residents over 50 years of age.

1. Tamarac, FL - 50.84% of residents are over 50 years old
2. Lake Havasu City, AZ - 47.13%
3. Port Charlotte, FL - 46.97%
4. Prescott, AZ - 46.85%
5. Palm Desert, CA - 46.06%
6. Largo, FL - 45.96%
7. St. Simons Island, GA - 45.88%
8. Spring Hill, FL - 44.67%
9. Surprise, AZ - 44.53%
10. Walnut Creek, CA - 44.22%
11. Port Orange, FL - 42.91%
12. Deerfield Beach, FL - 42.91%

Perfect to a tee

If you love golf and couldn't get enough of it during all those years you were working, you might want to retire in one of these twelve golf-playing cities.

1. Coconut Creek, FL - residents play golf 1.41 times the national average
2. Palm Harbor, CA - 1.39 times
3. Palm Desert, CA - 1.34 times
4. Lake Havasu City, AZ - 1.33 times
5. Woodbury, MN - 1.33 times
6. Yorba Linda, CA - 1.32 times
7. Boca Raton, FL - 1.31 times
8. Rancho Santa Margarita, CA - 1.30 times
9. Greenville, NC - 1.30 times
10. Diamond Bar, CA - 1.29 times
11. Cape Coral, FL - 1.29 times
12. Burke, VA - 1.29 times

Game, set, love

If it's tennis you prefer, here are twelve cities where residents play a lot of the game you love.

1. Bethesda, MD - residents play tennis 1.63 times the national average
2. Greenwich, CT - 1.61 times
3. Davis, CA - 1.61 times
4. Rancho Santa Margarita, CA - 1.61 times
5. Newport Beach, CA - 1.60 times
6. Williamsburg, VA - 1.59 times
7. Laguna Niguel, CA - 1.58 times
8. West Bloomfield Township, MI - 1.57 times
9. McKinney, TX - 1.57 times
10. Asheville, NC - 1.56 times
11. Mission Viejo, CA - 1.55 times
12. Sandy Springs, GA - 1.55 times

Welcome to the club

If you like the idea of belonging to a country club, you might want to retire in one of these twelve cities, where country-club members make up a relatively high percentage of the population.

1. Palm Desert, CA - 2.0% of households belong to a country club
2. Bethesda, MD - 2.0%
3. Greenwich, CT - 1.8%
4. West Bloomfield Township, MI - 1.8%
5. Lower Merion, PA - 1.7%
6. Lake Havasu City, AZ - 1.7%
7. Newport Beach, CA - 1.7%
8. Palo Alto, CA - 1.7%
9. Spring Hill, FL - 1.6%
10. Carmel, IN - 1.6%
11. Burke, VA - 1.6%
12. Prescott, AZ - 1.6%

The groves of academe

Does the idea of well-educated neighbors appeal to you? These cities have a high percentage of residents with graduate degrees.

1. Arlington, VA - 35.7% of residents have graduate degrees
2. Davis, CA - 34.6%
3. Brookline, MA - 32.5%
4. Evanston, IL - 31.2%
5. Bloomington, IN - 31.2%
6. Towson, MD - 31.2%
7. Oak Park, IL - 29.1%
8. Bethesda, MD - 29.1%
9. Alexandria, VA - 29.0%
10. West Hartford, CT - 28.9%
11. College Station, TX - 27.7%
12. Ames, IA - 27.5%
13. Columbia, MO - 27.5%

Making The Best Use Of Your Cash

You’ve gotten a home equity loan. You’ve jumped through all the hoops and now have that much needed cash in hand. How can you make the best of it? First, decide exactly what you really needed the cash for? Was it for medical bills or educational expenses? Or did you incur too much other debt and need to pay that off with your cash? Whatever the reason, be sure and stay steadfast to the cause. It’s very easy when you have that green in your palm to forget what you truly needed it for in the first place. Write down exactly where you needed the money to go before you begin to write the money orders and checks out.

As you pay off whoever the debtor is, mark them from the list. Mark off everyone! This is very important. Keep your goals in mind. It’s so easy to get caught up and want to spend the money elsewhere. This is really not wise. If you needed the money so desperately you took out an equity loan in the first place, then you really should stay clear to your initial goals. If you took out the loan for medical bills and you buy a new washer and dryer when you really didn’t need one, this is most likely not going to help your financial situation. Sure, you’ll have a shiny new washer and dryer, but you’ll still owe those medical bills and not gain anything else financially. Your payments won’t be lower and after a while the new washer and dryer will remind you of the old one. So, in summary, be sure and be careful when distributing that cash and enjoy achieving those goals!

Where Can I Research About Home Equity Loans?

You need cash and you need it fast, so you decide to take out an Equity Loan on your home. How do you protect yourself? Where do you look for information to make sure you know all the facts before signing on that dotted line and marrying yourself to a long contract? If you live in America, the first place to check is the Federal Trade Commission. The Federal Trade Commission is a federal organization designed to protect and educate the American consumer. And that person is you if you are taking out a loan. They have a website which is located at http://www.ftc.gov and you can go to it for free information. Many rules and regulations are posted to protect the American consumer and explain the different types of Equity loans available in detail.

It also contains a plethora of information on other subjects regarding home ownership and is a great tool provided to you at no cost. Also, you can check with H.U.D. or the United States Department of Housing and Urban Development. Also, don’t forget to check with your state department of housing for information about different types of loans as well. If you’re not very Internet savvy and would feel more comfortable talking with a person, each of these departments have a phone number, as well as offices you may feel inclined to visit. Remember, at the end of the day it is you that has to live with the terms of your loan, not the bank or mortgage company. And most of the time it’s for a very, very long time.

Need Cash Fast?

Do you ever feel as though you’re drowning in payments? Have you extended your salary until there’s barely any left, in order to make your monthly obligations? Well, chances are you’re not alone. With the economy in a state of uncertainty, it’s difficult to plan from one day to the next with layoffs and job losses always a risk.

So why wait? Do something about those payments to help you plan for an emergency. If you are making high interest payments, chances are you may never see the proverbial end of the tunnel, especially if you only make your minimum monthly payment. And credit cards interest is at an all time high, considering so many people have incurred debt and have been unable to repay those obligations.

They have to make up the money some way, so they pass down the loss to the consumer in the form of even higher interest rates. But if you’re a homeowner, there is a solution. If you’ve owned your home long enough to have something built up called equity, you can actually get a quick loan for cash on your mortgage. That’s right. With a simple call to your mortgage broker and some minor paperwork, you can take out a loan (often referred to as a second mortgage) in exchange for cash to pay off all those high interest credit cards or other miscellaneous loans.

Sound like an easy solution? It can be, but remember you can’t borrow your way out of debt. The only way to become completely debt free is to pay off all balances. The second mortgage must be repaid. And as a rule, most consumers are advised to cut up their remaining plastic so the temptation is removed. Most financial advisors suggest having only one credit card with a minimal credit limit and ask their clients to pay off the balance every month. Be sure to check with your mortgage broker or financial advisor if you have any questions before signing your contracts and enjoy that left over money at the end of your month!

Biophilic Design Shy Relation of Green Building

Green building is more than just a trend. An often overlooked part of Green building is what is called Biophilic design. The goal of this sub-genre is to bring the outdoors into interior living spaces, either residential or commercial. The introduction and interaction with natural elements for aesthetic and health purposes is beginning to receive wider acceptance as indoor air pollution becomes a growing concern for urban dwellers and suburban ones who live in air-tight energy efficient homes.

Biophilic design injects real or simulated natural components into living and working spaces to promote emotional and physical wellness. Morning sun exposure, water features, natural vistas through window-walls, sky-ceilings, and greenhouse rooms where plants dominate and restore air quality while providing an indoor forest refuge are some common applications of this recent design extension. Biophilic design is based more in a emotional or Zen-like perspective than save-natural-resources Green building. Understanding that nature and natural settings allow humans to relax and is part of our DNA, professors at major universities study ecology and it's effect on our home environments as well as dispositions.

Here are some tips to get a start on Biophilic design in your home.

-Find a room that faces good morning sun and install floor-to-ceiling windows to receive a daily dose of high-powered natural light. Studies show that hospital patients who receive morning sunshine need almost a quarter less pain medication that those with north facing windows.

-Install a sky ceiling in a family or living room. These new ceiling systems mimic full-spectrum light emitted from mid-day skies.

-Place a waterfall or pond with fountain in side a favorite room. Flowing or spraying water adds a relaxing sound to your environment and helps screen out exterior noise pollution.

-Build a green house room with many indoor and outdoor plants, more the better. Put a comfortable chair to use for reading or relaxing in your home garden.

-Use window-walls to allow outdoor vistas in. I have seen homes that installed large glass areas in a well-used room. The increase in natural light and the ability to see from the ground to the sky is welcomed especially in the dark days of winter.

Blessings Or Transgressors

Estate agents are there to help people in need of properties for housing, commercial or other purposes. They are there to provide their services that varies from giving advices for properties, making two parties meet up for a deal. They are there to lend a hand to tenants, property sellers and buyers, to landlords etc. They are can provide an interested party with all the technicalities, particulars, prices and everything through their own medium, right at the party's doorstep. It is convenient to involve a middleman when a person wants a property so that he can save his time and energy. These estate agents carry out these services in return of what is known as commission.

The darker side of their business is that while they are offering their services they are filled with greed and they aim at gaining their commissions as much and soon as possible. In trying to achieve this they cause a misbalance in the proper flow of country's economic development.

Many of the agents in greed of earning commission mislead buyers through false information concerning the peculiars about the property. Rental housing acquired with the aid of agents for middleclass people often have them facing a huge financial loss. They end up having a totally contradictory situation to what they had been informed about by the agents. The extra loss is rendered for the commission paid by them. Mental stress plays its own part. They may sell properties already been sold off. The property owners pay agents extra if they manage to fish and convince buyers who are willing to buy their properties at double prices. This is especially a trait that these middlemen possess of convincing their clients and talking them into making deals they would otherwise get at much lower rates. It is more like a trend these days to involve these middlemen to escape and avoid efforts required for buying property whether it involves residential, business, trade or commercial purposes.

The other thing that agents do is they hardly ever let the two parties that he's dealing with meet one another and interact on their own, making their own false statements. Make people believe the buyer or the seller is out of reach and there is no way the can have direct contact with them. Real, professional agents would never turn to such acts but many unemployed people adopt these measures in order to earn easy money and pretend that they are professionals and thus looting innocent people. Estate agents are both a blessing and curse to people in the business world at the same time.

Real Estate Marketing; Prewritten Reports Can Boost Your Business

Looking for a Real Estate and Marketing Idea that can take your business to new heights? Then you should Prewritten Real Estate Marketing Reports!

Why Real Estate and Marketing Reports? Because Marketing Reports are effective tools for educating consumers. Unlike days of old, most consumers looking to buy, sell, or trade real estate first look for information.

Once, it cost a lot to run a website - but those days are long gone. There are "pay as you go" services out there now charging as little as $1 per gigabyte of bandwidth. If you're sensible about the size of your pages, that dollar could last you a whole month, or even longer!

If you don't want to pay for design, it's never been simpler to do it yourself, or find free and/or reasonable cost software and pre-written content to do it for you. Really, it's never been cheaper to have a website than it is today, nor easier to market your message 24 hours a day, seven days a week.

Savvy real estate agents are getting onboard by offering consumer information formatted as real estate web site content, special buyer and seller reports and email ecources. They're informing their visitors about closing costs, appraisals, preparing their homes for the market, what to expect at closing, gardening tips and even information about how to quit smoking and other health related information.

When you're on the web, it doesn't matter whether someone is next door to you or on the other side of the world - they can see your website just the same as anyone else can, at no extra cost to you or to them.

Phone and postage both cost enormous amounts of money, but a website lets you send information anywhere without any extra effort or expense. You can make friends and contacts in places you've never been and will never go. Suddenly, working globally is no more effort than working locally.

The beauty about using pre-written reports is that when you find really good ones you can practically use them "as is." But if you spend even just a few minutes personalizing them and making them uniquely yours the results could be huge. Although others may buy the same reports as you, your personalized approach will go a long way in distinguishing you as a helpful, and successful real estate sales professional.

Some agents think that a 30-40 page web site is enough to generate leads and result in high search engine rankings, and it might, but probably won't! While most real estate web sites appear to have just a few pages, the more dynamic ones frequently have hundreds of hidden, hard working pages feeding the search engines and directing visitors to them.

Why? Because each web page acts as a doorway to your web site by which visitors arrive from all over the Internet. So it makes sense that the more web site pages you have on your site the more visitors you can expect.

Prewritten reports can provide excellent content at affordable prices, plus they can be uploaded to your web site in a matter of minutes. Their cost and utilization can't be beat!

You'll be able to convert more leads to paying customers with great content. They visit your web site, like the information on it and keep returning for more. And after they have gotten familiar with you, your style and the information you provide they may then surprise you with the call requesting your help in making a real estate transaction.

If you don't know what to write don't worry about it. Stop struggling with what to say with prewritten content; content ready for instant use. Use it "as is" or make it uniquely yours with little effort, then get ready for a boost in business!

The Finances Of Your First Home Purchase

Buying your first home can be a time of many questions. For example, how do you even get started?

The steps to buying a home are simple. If you take the time, you will find the process faster and less stressful. The key is to avoid jumping into something you aren't ready for yet. Preparation is the key.

The first step is to get your personal finances in order. You need to know how much you can afford to spend. Take the time to prepare a budget, if you don't already have one. When figuring how much you can afford to spend on housing, don't forget the additional costs that come with ownership. You won't simply have a mortgage payment, you will have property taxes, homeowner's insurance, repair and maintenance costs and the possibility of PMI.

A good indicator of how much you can afford is your current rent payment. If you already have trouble making ends meet each month, you probably can't afford any higher a monthly mortgage payment than your rent currently is. Take your monthly amount and enter it into an online calculator to show you what the overall mortgage you can afford is.

Once you have an idea of how much you can spend, take the time to look over your credit report. Almost everyone is guaranteed to have a mistake on their report at one time or another. In just ten years, I have found two on mine. Check your report early enough to be able to correct any mistakes. Contrary to popular belief, checking your own credit report will not raise your credit score.

But having too many lenders pull your report will, so don't apply for a mortgage with every lender you are considering. Go ahead and spend the money and find out what your credit score is. The lender will most likely be reported a score close to what you find on the internet -- they can range up to 50 points in difference. It is a good idea to know what your credit score is, so that you know where you stand as a borrower.

Next, research the type of mortgage you want. The best mortgage decision for any borrower is a 15-year, fixed-rate mortgage with at least 20% downpayment. I realize that this is hard to conform to. So bare bones, you need to have at least a fixed-rate mortgage and as large a downpayment as possible. This is the most sound financial choice for most borrowers. However, there are some advantages to other mortgage options, so be sure that you do your research.

When you finances are in order, now is the time to shop for a lender. Ask your friends, family and coworkers for recommendations. Make sure your list includes local and national lenders, though keep in mind the differences that may be seen in service. Ask each of the lenders on your list for a rate quote on the type of mortgage you want. You should expect them to all be in the same ballpark. Beware of those that are way under the rest, they may not be the same in terms.

The key to buying a home is in proper preparation. Once you have found the lender that fits your financial needs, go ahead and become pre-approved for your mortgage. Then you are ready for the next step -- finding the house of your dreams.

Commercial Real Estate Brokerage

Whether you are updating your current facility, entering a build-to-suit location or looking to build a property, commercial real estate brokerage associates or simply called brokers can help you manage the construction process. From property rehabilitation to inspection, from zoning restrictions to building codes, associates guide you through all necessary steps to ensure your project is completed efficiently and within budget.

Commercial real estate brokerage offices use sales associates who market office buildings, hotels and many other types of commercial real estate for brokers. Commercial real estate brokerage sellers usually specialize in a particular property type such as apartments, retail, office, and hospitality, shopping centers and industrial plants.

In commercial real estate brokerage, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed.

Commercial real estate brokerage is a risky business. Brokers are paid in straight commission – cashing out only if they were able to close deals. Brokers negotiate leases for retail, healthcare, high-technology, and other industries that are seeking office and industrial spaces. They represent both landlords looking to market office and industrial space and tenants looking to relocate or expand. They help secure the rights to redevelop the space. They spend some of that time away from the office, touring clients’ conditions and trying to understand their corporate culture and what kind of office or industrial space they need to operate. Brokers’ pay usually depends on market conditions, not years of work experience, said Al Marco, a partner in Joseph Chris Associates, a national recruiting firm in Chicago that specializes in placing commercial real estate brokerage executives.

The risks of the commercial real estate brokerage are certainly offset by financial rewards. A leader in the commercial real estate brokerage industry, Coldwell Banker Commercial® was founded in 1906 after a devastating earthquake in San Francisco.

Some brokers of a commercial real estate brokerage focus on the sale, purchase, lease, and development of commercial-use land properties. Associates specializing in multi-family property transactions are well versed in the unique elements and trends that shape successful multi-family transactions.

Condo Buyers Can Charge Down Payments, Home Prices to Keep Falling National Association of Realtors

Condo Buyers Can Charge Down Payments

Question: This might seem like a crazy question but is it possible to charge a down payment on a credit card? Answer. In an article in The Wall Street Journal, Jane Kim says that American Express is rolling out a plan to allow condominium buyers to charge down payments.

The plan is currently limited to select luxury-condo buyers in New York. American Express is working in partnership with real-estate firm Moinian Group, which has properties in mid-town under construction. But both companies say that this is just the beginning.

Bill Glenn, American Express's head of merchant business, says the move is part of the company's efforts to expand the ways its clients can use its cards.

The companies didn't disclose the terms of the agreement, although Moinian will pay American Express a fee on each transaction. The condo buyer won't be charged an additional fee. American Express says the program is available across all of its cards.

The move comes at a time when more landlords are allowing tenants to pay their rent with plastic. About 15 percent of the rental apartments in the U.S. accept credit-card payments, estimates Matt Golis, chief executive of YapStone Inc.'s RentPayment, a San Francisco processing firm that works with apartment owners and managers to enable acceptance of credit cards.

Most of its new customers this year are offering to pay the costs incurred by offering credit cards as a payment alternative in order to have a competitive advantage over other properties, he says.

Home Prices to Keep Falling National Association of Realtors Says

Question: What are the projections for home prices for the rest of this year? Answer: Home prices are expected to continue on a modest decline for the remainder of the year the seller’s market transitions to a buyer’s market, the National Association of Realtors (NAR) testified today at a Senate committee hearing.

Yet, contrary to some news reports, there is no housing bubble, and the slowdown is actually a good thing for many local economies, NAR president Thomas M. Stevens said at the hearing, titled “The Housing Bubble and Its Implications for the Economy.”

“After five years of outstanding growth, the housing market is undergoing a period of adjustment and becoming more and more of a balanced market between buyers and sellers,” he said.

Many Local Markets Still Going Strong

Question: You have said that the Summit County market has seemed to remain strong. Is the softening of the market specific to just certain areas? Answer: Even with falling demand and increased supply, home prices are still appreciating — although at no where near the double-digit rates of the past few years. While recent developments raise concern, it is important to remember that the housing market varies significantly across the country.

One-third of the country (by population) is still seeing rising home prices, including Alaska, New Mexico, Vermont, and many states in the South, excluding Florida. States that experienced the greatest increases in home prices in recent years are experiencing significantly lower sales. These states include Arizona, California, Florida, Nevada, and Virginia.

Also contributing to the cooling housing market is a nearly one-point increase in mortgage rates, speculative investors pulling back, and first-time buyers being priced out of the market. Pressure is being felt in the housing market due to rising mortgage rates. Home buyers have become exhausted financially, which explains why sales have tumbled in higher-priced regions of the country.

Slow Home-Price Growth

Question: What is projected for home sales for the end of this year and into 2007? Answer: The National Association of Realtors (NAR) forecasts a drop in home sales of around 8 percent in 2006, followed by another 2 percent decline in 2007. The forecast takes into account stabilizing mortgage rates and a modest economic expansion. However, a significant shift in interest rates or a change in the economy would alter the forecast.

Slow home-price growth — of less than 3 percent in 2006 and 2007 — also is predicted.

NAR notes that a soft landing is possible under the right circumstances and affordable mortgage financing is an important component in achieving this.

Because the housing market strongly supports the economy and drives consumer spending, it is imperative that the Congress adopt policies that encourage home ownership and make purchasing a home obtainable for the millions of families who desire to own a home. NAR stands ready to work with Congress to continue to open the door to the American dream of home ownership.

Link Between Real Estate Market, Stock Prices, Home Repairs That Really Dent Your Wallet

Link Between Real Estate Market, Stock Prices Question: Question: Allison, is there a correlation between the real estate slowdown and declining stock prices?

Answer: In an interesting article in Business Week, Peter Coy says that observers are trying to figure that out and reaching many different conclusions.

Merrill Lynch prepared a chart overlaying the Standard & Poor’s 500 stock index with an index of homebuilding activity from the National Association of Home Builders. The chart shows that the S&P goes up one year after the home-building index goes up, and goes down one year after the home-building index goes down.

Tuesday, the National Association of Home Builders reported its monthly sentiment index fell to a 15-year low. That leaves believers in the Merrill Lynch theory certain that stocks aren’t far behind.

Another chart from InvesTech Research correlates changes in private residential construction with recessions. Going back to 1968, it shows that with just one exception — in 1995 — every time there has been a downturn in residential construction, a recession has occurred at the same time or shortly after. Because residential construction has shrunk over the past year, followers of this index are worried.

But there are some optimists. Bob Carey, chief investment officer for First Trust Advisors, says to get ready for a bull market, noting that the stock market is 20 percent to 25 percent undervalued at current levels and should reach full valuation by sometime next year.

Carey says the demand for housing is driven by incomes and jobs, and since corporate profits are extremely strong, the outlook for income and job growth is good. "It's hard to imagine Corporate America doing well and somehow people not doing well on the employment side," he says.

Cool Market Keeps Mortgage Rates Affordable Question: Joyce, what is the relationship between a cooling real estate market and interest rates? Answer: The national average interest rate on a 30-year, fixed-rate mortgage was 6.4 percent for this week, down from the previous week’s 6.43 percent, according to Freddie Mac. Last year, the average rate for 30-year, fixed mortgages was 5.8 percent.

“A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable,” says Frank Nothaft, Freddie Mac vice president and chief economist. “For example, housing starts dropped to a three-year low in August and the Producer Price Index (PPI) fell below market expectations.”

The average rate for 15-year, fixed mortgages was 6.06 percent, compared with 6.11 percent the previous week and 5.37 percent a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.08 percent, down from the previous week’s 6.1 percent. A year ago, the five-year ARM averaged 5.31 percent.

The average rate for one-year ARMs was 5.54 percent, compared with 5.6 percent a week earlier and 4.48 percent a year ago.

“Going forward, the economy is expected to expand at a somewhat slower rate than it did in the first half of the year," Nothaft says. "This should continue to keep inflation in check, and therefore, mortgage rates low.” Home Repairs That Really Dent Your Wallet Question: Allison, we are having an inspection done on a home that we are buying in Frisco. What do we look for? I would imagine that some home repairs will be beyond my budget. Answer: Some home repairs are known for being far more costly than originally thought, says Mike Kuhn, author of The Pocket Idiot's Guide to Home Inspections.

Kuhn, who's also a veteran technical director at HouseMaster home inspection service, analyzed data from nearly 2 million home inspections and 1,000 HouseMaster inspection reports from different regions of the U.S. and Canada. As a result, he's compiled a list of common repairs that can end up costing home owners a bundle.
• Asphalt shingle roof replacement. If the original roof already has two layers on it, the cost of replacing the roof may increase by 40 percent because the existing layers most likely will need to be removed before a new roof can be installed.
• Wet basement. Moisture in the basement is all too common. For some the solution can be as simple as directing the downspout discharge away from the foundation. But for others, the only way to solve the problem may be to install an expensive interior foundation drainage system and/or excavate around the exterior of the foundation for water proofing. Potential costs can be tens of thousands of dollars.
• Central air conditioning system. Replacing the system's compressor may run $1500 or more, but if the entire systems needs an upgrade that number can go up exponentially, into many thousands of dollars.
• Insect damage. Treating for termites or other wood destroying insects can only be part of the problem. Repairing the hidden structural damage left behind can be extremely costly.

The Attractions of Owning Property in Provence

France is the world's number one tourist destination, and within this country of wondrous natural beauty one of the most-visited regions is the area of southeast France known as Provence.

The classic region of Provence, as named by the Romans, was a huge area that stretched west from the current Italian border near Nice to Marseille at the mouth of the Rhône. Nowadays when we refer to Provence we generally exclude the Mediterranean coast, now called the Côte d'Azur (or Côte Varoise near Saint-Tropez), and think of the area that stretches north of the coast a 150 kilometers or so to the vineyards and rolling countryside, dotted with tiny villages, in the area around Aix-en-Provence and Avignon.

Provence offers a number of unique attractions not only for a tourist but also for those who would like to buy property and settle down here. A Mediterranean climate featuring more than 300 days of sunshine per year is a major drawing card. Whether you enjoy swimming at nearby seaside beaches or hiking in the hills, the climate of Provence offers numerous advantages for those who are physically active and enjoy the out-of-doors. And even with its well-deserved reputation for warm and sunny weather, major ski resorts in the Alps are only a drive of two hours or less from most parts of Provence.

While Provence is best known for its warm-weather attractions, many visitors especially enjoy visiting in the winter, when there are few tourists and the days are bright and sunny with mild temperatures. If you purchase property and take up residence in Provence, you will not have to worry about heavy heating bills in the winter, for even in the coldest month of the year the temperature during the day ranges from 3° to 15° degrees centigrade (37° to 59° Fahrenheit).

Provence is also rich in history. Well before the arrival of Caesar's legions in the first century BC, Greeks and Phoenicians fishermen and traders established villages along the coastline. The region got its name when it became a province of the Roman Empire. Many antiquities from the Roman era remain, as do churches, monasteries and cathedrals dating back to the Middle Ages. Many villages still have their original ramparts constructed in medieval times to ward off invaders.

While it is best known for its countryside attractions, in recent decades Provence has evolved into one of the most sophisticated regions of France, thanks partially to the fact that many Europeans and North Americans rent seasonally or have purchased homes here. Marseille, France's second largest city, is a major port and features world-class boutiques, as do Avignon and Aix-en-Provence, both of which are university towns. Orange, north of Avignon, and Aix are also famous for their summer opera festivals, and Avignon for its world-renowned theatre festival in July. Aix hosted a major Cézanne exhibition in the summer of 2006 that drew visitors from all over the world.

If you fancy life in a small village set in the vineyards for which the region is famous, there are many picturesque localities that beckon in Provence. Travel magazines rhapsodize about the constellation of villages perchés in the Luberon region east of Avignon. Each of these hilltop villages - Gordes, Bonnieux, Lacoste and Roussillon, to name only a few - seems more charming than the last. Equally seductive are the towns and villages of the Alpilles area south of Avignon, among them Saint-Rémy-de-Provence (many of Van Gogh's paintings were created near here), Eygalières and Les Baux-de-Provence. Provençal villages are especially enjoyable to visit when the weekly open-air markets are taking place.

In addition to its beautiful countryside and vivid colors, which drew many of the Impressionist painters here, Provence is also renowned for its herbs and its aromas. In the springtime, take a walk in the countryside and you can breathe in the fragrances of thyme, rosemary and lavender. In the spring the apple and cherry trees are in full bloom. One of the most enjoyable times to visit Provence is in autumn, when the annual grape harvest is underway and the vines are just beginning to take on their fall colors.

During any time of the year you can enjoy the fine food and drink for which France and this region are well known. Restaurants abound everywhere in the region, ranging from sidewalk cafés to family-run village restaurants that routinely offer regional cuisine of a level that would be awarded high marks by restaurant critics in other countries. For fine dining there are numerous Michelin-starred establishments, among them Bistro d'Egaylières at Eygalières, and the famed L'Oustaù de Baumanière at Les Baux-de-Provence.

With all of these attractions it is no wonder that Provence is a must-see destination for anyone who visits France. And for the visitor who is interested in establishing a residence or owning a vacation home in France, Provence should be at the top of locations to consider, both in terms of an enjoyable lifestyle and a sound investment that will appreciate in value.

FHA Mortgage Loans

FHA mortgage loans are alternatives to conventional financing for your home purchase. The FHA (Federal Housing Administration) helps to make low cost home loans available to thousands of new and current homeowners each year. FHA mortgage loans require minimal down payments and the interest rate is typically slightly lower than prevailing conventional rates.

The FHA currently insures more than 800,000 mortgage loans. This agency has helped originate more than 33 million since it was created in 1934 as part of the New Deal. The FHA does not fund the mortgage loans itself. It does insure the lender that it will not incur any loss if the borrower defaults. In this way, lenders are encouraged to make loans to low and middle income borrowers to whom they would not otherwise extend credit.

Buyers of single family homes can put as little as 3% down when obtaining an FHA mortgage loan. Good credit history is not necessary, although is definitely a "+." Income to loan payment, and to total monthly payment, ratio requirements are slightly less stringent than for conventional mortgage loans. The FHA sometimes will also help finance the closing costs. Ask your lender about this. Requirements for this kind of assistance vary widely from locale to locale.

This sounds pretty good, doesn't it? Well, "not so fast..." The FHA requires extensive property inspections that cost the seller lots of time and money. Largely because of this, most sellers will not accept an offer if the buyer intends to obtain FHA-insured financing. The acronym "FHA" unfortunately has acquired bad connotations for many real estate professionals and their clients.

Also, the FHA severely limits how much the lender can charge in fees. The bank cannot lose money because of the FHA insurance. However, it cannot profit as much as when it commits its money to other mortgage loans. Lenders have to be FHA-approved in order to make FHA mortgage loans. Few lenders choose to become FHA-approved.

However, there is a big exception to this circumstance. The FHA serves locales (and, of course, the people who wish to obtain financing for homes in these areas) that would not otherwise be attractive to lenders. Most very large, big city lenders are FHA-approved, and a significant portion of the home loans that they originate are FHA mortgage loans.

If you intend to move into your own home in the country or in an "upper middle class" suburb, the FHA probably won't be of use to you. But perhaps you want to live right in a major metropolitan area with all its amenities close by. If so, and if a large down payment is a problem, an FHA mortgage loan could be a great way for you to finance the purchase of your home.

California Anyone?

Finding an affordable home can prove discouraging at times, but those looking should not give up easily. It just takes a little research and elbow grease to get you into that affordable home in no time. The first step you should take toward owning that dream home is to research. The Internet is a great place to begin the search for your new affordable home. If you don’t have Internet access in your current home, don’t despair. Most local libraries offer free Internet access, so you might want to begin there.

Also, check the local newspaper, magazines, and auction listings offered in the areas you’re interested in moving to. The next thing you need to do is figure out what to research about. Sure, you know you need information, but you may not know what info you really need. The second thing you should do is to take out a pen and paper. Think about what you want to know and begin listing topics you want to include in your conversation with your real estate agent. It’s always best to make a list before hand, that way you won’t leave any important information out.

Lastly research again. Research everything from local mortgage companies to foreclosures. No one knows better than you what home and price range you’re looking for. Keep that in mind before calling a real estate agent. Have a list of your bills ready and your budget already worked out, so you know for sure what you can afford. Once you have a price range in mind and have studied what area you’d like to live in, you’re ready for that last step of calling a local real estate agent. Enjoy your journey to owning that new home.

California Dreams

Have you ever dreamed of owning a home in California? If so, there’s never been a better time to dive right in and begin working on getting that dream home. With so many different things to think about when you begin to search for your perfect home, sometimes it is difficult to know where to start. But when searching in the state of California, you will be glad to know they’ve thrown out their welcome rugs and have done the dirty work of research for you.

Having put into place several programs that assist the consumer, California’s future home owners should be well equipped and armed with knowledge before they set out on their real estate venture for the home of their dreams. The California Department of Real Estate, as well as the California Department of Housing, has developed websites and packets chocked full of information for the first time homeowner. There is also a wealth of information for second and third time buyers.

With programs such as Home Owners Counseling Services, Home Ownership Vouchers, state license inquiry for Real Estate brokers, as well as the development of many sites that lead to information to protect the consumer against predatory lending prevention, why wait? California has definitely taken great strides in providing the home consumer with knowledge of programs and the information they need to know in order to own a home. With all of these resources, a consumer should feel secure in their pursuit of home ownership in California. So don’t hesitate, put those dreams into action and enjoy your new home.

Sarasota Housing Market: Behold the "Three-Buyer" Rule

The buyer, appraiser and underwriter must all agree with the price of the house before it can go to settlement (particularly if there is no large down payment involved.) Here's how it happens.

Buyer is First

When you visit the grocery store and examine the prices of produce and goods, you normally do not walk up to the check out and bargain the price listed on the sticker. The eggs are $1 per dozen all day long and most everyone will pay that amount or go without eggs.

In real estate (and other large investment items), the price is not necessarily what one is going to pay. It is merely the list price or asking price set by the seller. While Sarasota real estate agents may have some sort of control in determining if a house is overpriced or under-priced, they are not the ones buying the house. Hence, the real decision maker is the buyer. Thus, the buyers must be confident enough that the asking price and the terms almost certainly reflect the real market value of the house.

The savvy real estate seller will make sure that the asking price is as close to the realistic price in order to draw offers. Particularly, in a transitional market or dropping sales price environment, such as the Sarasota housing market at present, do not squander time holding off for the “right” buyer to come along and pay the price being asked for. The smart real estate seller will realize what the price trend is and move in front of it.

Sellers over the last few years in the Sarasota housing market have had the benefit of price trending upward. Negotiation for buyers seemingly went up on its head—"You want $350,000. What, are you crazy? I'll pay $375,000 and not a dollar less." Of course, they got beat out by the guy willing to pay $400,000 and include a vacation for the sellers.

When the Sarasota housing market begins to trend downward, a seller must get at the forefront of the trend. This is even more important than a market heading upward if you do not want your house floating on the market over a long waiting period. Every week you wait, you literally lose money, which sometimes could be thousands of dollars each week. Do not wait. When prices trend downward, sellers must forget what their neighbor's sales price was two months ago. It certainly has no bearing the day you receive your contract.

The moral here for the seller is that the buyer must believe the house is worth the asking price. Next, one has to convince the appraiser.

Appraiser is Second

Despite what others may believe, the appraiser is the most important visitor who is going come by your house. Sometimes even the appraiser understates his or her visit to the property.

If you have to impress the buyer to persuade him or her to write a contract, then you better mesmerize the appraiser. This is the person who is going to take a first stab in confirming that the buyer and seller have come up with a realistic price for the property.

With a contract price of $351,990, you want an appraisal of at least $351,990. If the appraisal is high, it has no bearing on the contract. If the price comes too far below, and the buyer does not possess enough down payment funds to cover the difference, then the seller and buyer will have to renegotiate who is going to absorb the financial hit to make the loan work. Is the seller coming down in price, the buyer up in price or are they going to split the difference?

Underwriter is Third

Finally, one has to satisfy the person in the back office—the underwriter of the mortgage. Underwriters calculate the risk factors for the lending company or group of investors. If they underestimate the risk of default on a loan and the buyer indeed defaults on the mortgage in time, then either their investors lose or they must sell the loan at a loss. Because of this, while they are not on the street monitoring if prices increase in the Sarasota housing market and if their analysis reveals that the house may not be worth what the contract is asking, they can withhold the loan process and the negotiations must start anew.

Let’s say I want to sell my house for $1 million. The problem is, while I might think it is worth that amount, I keep running into buyers who disagree. Thus it is worth $1 million solely in my perception.

I therefore have to satisfy three other people to get my price. In pricing my property, I must keep these three other people in mind if I want my “asking” price to become my “sold” price.

Real Estate Websites - The Center of Your Marketing Campaign

Studies indicate that 70 percent of home buyers begin their search for homes online, so by not having a real estate website to promote yourself, you are missing out on valuable leads! Those buyers are choosing someone, so why shouldn't it be you? Getting a website started is easier than ever, so don't wait!

How Will a Website Help My Business?

Print advertising can be very expensive, and direct mailings are time consuming in addition to the cost. Once you set up your website, it will be working for you each and every day, getting you business. Many potential customers will start with a search on their favorite search engine. Making your website rich in keywords will help buyers see your site first. If you specialize in rental properties in Oak Park, use the phrase "Oak Park rental" as many times as you can. This ensures that a buyer who searches for that phrase will see you first. You can also set up banner ads that run at the top of the screen and advertise specific properties, open houses or events. It's a great way to keep current clients and potential clients in the know.

Using Email With Your Website

Email is a great resource for Realtors. It allows you to maintain casual contact with many clients, and to keep them in the loop about updates and new listings. There are many programs that allow you to set up automatic email responses. This means that clients can fill out a quick form detailing what they are looking for in a property, and emails will be sent out to them every time a new property meets their criteria. It saves them search time, and they feel they're receiving quality service. This also helps you build a database of email addresses for you to send marketing materials to.

With just a little time to set up, your website will bring you business all day, every day!

Is Now The Time To Buy A Condo

Is now the time to buy a condo?

If you plan on living in it for 2 or more years the answer is yes! After a big condo boom in Tampa, Fl there are now 1,256 condos, townhomes and lofts on the market according to the Tampa MLS. This is just in and around the downtown Tampa area (a 5 mile radius). Prices range from under 100K to 6.3m for a swanky Trump Tower unit with over 6,000 sq ft.

There are also New Construction and Condo Conversions that are not listed in the Multiple Listing Service (MLS). Sites like http://www.TampaBayLofts.com provide a list of condos, lofts, and townhomes. The site also offers a custom search emailed to you based on your price range, size and location.

So if you are a buyer looking for a good deal what are your options?

Consider a re-sale: Sellers are very motivated to sell and if they purchased 1 or 2 years ago you may be able to negotiate a great price. Since building costs have gone up so have new construction condos. Only owners of re-sales have the ability to sell for what they paid for the unit and guess what? They are selling for little or no profit..........even losing money just to get the financial burden off their back. A Realtor can give you information like how long a property has been on the market and how much they paid.

For instance: A 2/2 condo was listed for 214K, there were about 15 other condos in the same complex all listed for around the same price. This unit had been on the market 124 days. Can you say motivated??? My buyer asked me to find out what the owner paid and offered the exact same price. After negotiations the price was settled on at only 5K more than what they originally paid for the condo in May of 05'.

Things to watch out for when buying new:

How long does the developer have to finish building? Most new construction contracts state that the builder has 2 years to complete construction and close. All builder contracts are written by the builder so be sure to read all the fine print.

Engage a Realtor who knows new construction. Builders compensate Realtors so it won't cost the consumer to have representation. Most Realtors will know where the new projects are located and can show you any of the properties and provide comparable sales data. They can also assist in negotiating pricing and incentives. Newly constructed condos and condo conversions are listed at today's prices so it's best to view all your options before making a decision.

If a builder doesn't meet their contract quota what happens to your new dream condo? Many projects have not realized their quota within the timeframe allocated by the bank for financing. They are now ditching the project and giving back deposits. If you are buying a new condo conversion or new construction find out if they have reached their quota and if they are ready to close.