If you look at new construction inventories as documented by the National Association of Home Builders, they are down substantially. Most builders have cleansed their operations of the spec homes that were caught on the books from the early downward spiral of the market. Many builders have restructured their debt and are only building on a pre-sale and as needed basis. This actually means some time in the future, perhaps sooner than later, there will be a significant demand for new homes. So how does this help the clients that want to build? It’s simple, land is more available and the price of land has adjusted where it makes sense to build a home once again. I would call this a time of great land opportunity. Building a new home and creating value starts with the land. If you do not over pay for the land or buy a building parcel with development challenges, you may actually create instant equity in this unprecedented market of difficult appraised values.

Cost
Another key motivating factor for any purchaser is always the cost. What is it going to cost me and is now the right time to buy so I am getting the best deal possible. For most people building a new home, especially a custom home, when to build is typically less prevalent than cost and need. Many of us would like to have a custom home, but if we do not need a custom home at this particular time, cost generally plays a larger part.

Now is a great time to build specifically because of cost. Certainly we have had times where the cost to build was lower, however building costs volatility in recent years has been attributed more to rising energy costs, or an occasional worldwide crisis created by hurricanes, earthquakes, etc. that have increased demand for building material periodically. The only man-made variable that has affected building costs is increased regulations of the IRC building codes. Other than that, we have been free from price increase because of reduced demand and low inflation. With that said, cost to build may have hit the bottom. Regulation will continue to be a burden for builders and certainly a low inventory of new homes will be a burden for the consumer moving forward, therefore allowing the market to “increase price!”

The NAHB/ Housing and Economics forecasts New Construction for 2012 to increase 17 percent and another 46 percent in 2013. Good news for builders, bad news for “fence sitters.”

Source: NDI Homes of Maryland

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

Start by utilizing a design that reflects the interests of the family members. Use photos, children’s artwork, mementos, maps, antiques and art collections to tell your family’s story in this room. Consider having frames that can open to switch out kids’ artwork or to showcase the latest photos from a family trip. Keep it personal, yet practical. Here are tips on how to create a family room that is both functional and attractive:

1. Comfortable seating is essential. 
Sofas, sectionals and chairs for a family room should be chosen for reading and viewing comfort. Do you like to nap on the sofa? Be sure it’s wide and deep enough. Chairs and sofas with an outside depth of 38 – 39 inches or more are ideal for both sitting and reclining.

2. Select furniture that’s the right scale for the room. 
If your room is oversized or has a cathedral ceiling, you probably need large-scale upholstered furniture that can stand up to the size of the room. Traditional sofas 72 to 78-inches wide will look diminutive in a big room. Look for large-scale sofas at least 88-92 inches wide with depth and height of about 38-39 inches for furniture with presence in a spacious room.

3. Consider sectional seating for design flexibility. 
Sectional sofas with a variety of components are a good way to create more spacious seating that can be tailored to the size and shape of the room. If you want to pack more people into a tight space, your best choice is a sectional sofa. The L-shape creates a very strong line and utilizes every square inch, even the corner.

4. Vary the scale and visual weight of the furniture in the room. 
For example, have large chairs, medium-size chairs and smaller slipper chairs. Incorporate ottomans and benches. Have firmer chair seats and cushier chair seats. Have a great reading chair or chaise. Be able to reconfigure the furniture and pull in extra seating for big family gatherings and parties. Furniture with a little variety creates a more interesting room than a matching suite that all appears to have come from the same source.

5. Ottomans are critical to reading and viewing comfort. 
Ottomans should pull up easily to chairs or sectional components to support your legs. Will they be large enough for a long-legged spouse? Or will two people want to share one ottoman? Shop accordingly. If an ottoman will serve as both footrest and coffee table, consider a large 36″ to 48″ rectangular or square ottoman to serve all needs.

6. Find a fabric you love to pull out colors for pillows, window treatments, skirted tables and accessories. 
If you have little ones, consider a more colorful combo for a family room as brighter colors really speak to kids. Start with the fabric, because there a million shades of paint and you can always find that later.

7. Lots of pillows are great for lounging, movie watching or support while reading.
Have pillows made in a variety of sizes and shapes–lumbar pillows to cradle your back while reading, smaller pillows to tuck under an elbow, larger pillows for napping–and even floor pillows for kids who love to lounge on the carpet.

8. Use window treatments to control glare on a television screen. 
Light falling from a window onto a television screen creates sun glare. Window treatments that can be drawn, or shutters or shades that can be closed, will help to control glare and add privacy.

Source: CalicoCorners.com 

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

So if you want to give a room a makeover, or just freshen it up a bit, use these tips from the lighting pros at SYLVANIA to brighten things up.

Types of Lighting
Not only does a good lighting plan make a room more inviting, it also makes it more functional. To create a good lighting plan, you’ll need different kinds of light:
• Ambient – Provides overall illumination and a comfortable level of brightness, allowing people to see and move around safely and easily.
• Task – Helps you perform a specific activity, such as reading or playing games, by concentrating light in a particular place.
• Accent – Sets the mood and highlights certain areas and objects, such as paintings, walls and collectibles.
• Decorative – Fixtures become an element of the space themselves, such as chandeliers or pendants.

The type of light bulbs you use matter as well. Due to the EISA Act of 2007, traditional incandescent light bulbs will eventually be phased out; however there are several energy-efficient options, ranging from CFLs to halogen or LED light bulbs. No matter what room you’re looking to improve, there is an energy-efficient light option that will be a perfect fit.

Dining Room
• Using dimmers and layering with light gives you flexibility for different occasions.
• For an elegant look, blend low levels of light sources throughout the room.
• When installing light over the dining room table, be careful not to create shadows on the faces of your guests. Placing additional light sources elsewhere in the room helps to balance the light.
• Use adjustable accent lamps with SYLVANIA halogen bulbs to highlight plants, artwork, or special furniture pieces. These bulbs are fully dimmable and use between 22 and 33 percent less energy than standard incandescent bulbs.

Living Room
• For general lighting, use fixtures with a dimmer. The light source is concealed, and with dimming capabilities you can change the lighting of the room for various activities from reading to movie watching.
• Wall sconces and floor lamps are good sources of task lighting for reading or playing games, while track fixtures can be used to highlight art work or unique wall treatments such as wall washing or glazing.
• Place light sources at various heights within the room to add visual interest.
• Use translucent shades on table lamps to contribute to the ambient light level.
Bedrooms
• General lighting can be provided by ceiling fixtures, chandeliers, fan lights, recessed downlights or wall sconces that use halogen or LED bulbs.
• Use a floor-mounted directional fixture to project light through plants from the floor to soften a room with interesting shadows. Place the light behind a large plant or indoor tree and aim it through the leaves towards the ceiling.
• Use a low wattage energy efficient bulb to brighten up the closet. These bulbs have a long life and offer energy-efficiency and quality color.
• Provide light for reading by choosing swing-arm or flexible bedside lamps.

Source: www.SYLVANIA.com

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

A qualified insurance agent or insurance company representative can guide you in your choices. Here are six basic questions the I.I.I. advises everyone to ask before buying or renewing a homeowners insurance policy:

1. How much would it cost to rebuild my home in its current location in the event of a total loss? Your homeowners insurance policy should cover the cost of building a new home from scratch. Your insurance agent or insurance company representative will have knowledge of your neighborhood, and familiarity with the construction materials used when your home was originally built and can accurately calculate this cost. In general, homeowners policies cover partial or total damages caused by fire, hurricane, hail, lightning or any other disaster listed in your policy. Flood and earthquake-related losses must be insured separately because both perils are excluded in standard homeowners insurance policies.
2. How much is the personal property in my home worth in the event of a total loss? Your homeowners insurance policy should cover the cost of replacing all personal property (furniture, appliances, clothing) should it be stolen or destroyed by fire, hurricane or another insured disaster. Most companies provide personal property coverage equal to about 50 to 70 percent of the amount of insurance you have on the structure of your dwelling. So if you have $100,000 worth of dwelling protection, most insurers would recommend $50,000 to $70,000 worth of personal property coverage. The best way to determine if this recommendation is appropriate for your specific situation is to conduct a home inventory. Consider using the I.I.I.’s Know Your Stuff® – Home Inventory app in the iTunes App Store.
3. How much liability protection do I need? Liability covers you against lawsuits for bodily injury or property damage that you, or your family members, cause to other people. It also pays for damage caused by your pets. The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world. Liability limits generally start at about $100,000. Most insurance agents and company representatives recommend that you purchase at least $300,000 worth of liability protection. If you have significant assets and need more liability protection than is offered under the standard homeowners policy limits, ask your agent about umbrella liability.
4. What level of additional living expense coverage do I need? The Additional Living Expenses (ALE) provision is found in standard homeowners insurance policies. It pays for the costs of living away from home if you cannot reside there due to damage from an insured disaster. ALE covers hotel bills, meals and other expenses over and above your customary living expenses. ALE coverage differs from company to company. Many policies provide coverage equal to about 20 percent of your dwelling protection. For example, if the structure of your home is insured for $100,000, you would have $20,000 of ALE coverage. Some companies impose a time limitation, such as 12 to 24 months.
5. Should I buy a separate flood and/or earthquake insurance policy? There were numerous flooding events and earthquakes in the U.S. in 2011, but relatively few Americans had coverage for either type of natural disaster because these perils are excluded from standard homeowners insurance policies. Check with your insurance agent or insurance company representative to see whether you might need specialized coverage beyond your standard homeowners insurance policy.
6. Do I qualify for any discounts? If you have smoke detectors, burglar alarms and/or dead-bolt locks in your home, you can often get a premium rate discount. Sophisticated sprinkler systems and alarms that ring at monitoring stations often reduce your homeowners insurance premium, too. Ask your agent or company representative about discounts available to you. If you are at least 55 years old and retired, for instance, you may qualify for a discount of up to 10 percent at some companies. If you have completely modernized your plumbing or electrical system recently, a few companies may provide a price break.

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

1. Secure your own domain name. It’s important to have a domain name that you can use with your company-provided site or a site of your own. Domain names allow you to start branding from the beginning so that you have a solid foundation in place from the get-go.

2. Make sure you have a stand-alone website that can easily grow with you. Ask your Web provider if you can add unlimited pages, photos, videos, social media elements and even your own links and PDFs. This allows you to have a solid foundation in place even if you end up switching companies down the road.

3. Have your own IDX (MLS search tool). There may be rules in your MLS that prevent you from having your own MLS search, but you’ll want to investigate this. While your broker or MLS may provide a free MLS search link, you want to have a search tool that brands you as the point of contact for every listing. In addition, the search tool should have built-in lead capture elements so you can generate as many leads as possible and ensure that you are the one getting the lead.

4. Additional domain names that extreme target-market. Additional domain names are a powerful way to garner additional leads. For example, potential sellers will be drawn to an ad that indicates they can get information on their local market conditions, so having a domain name like www.FortMillHome-Values.com compels the homeowner to visit. Be sure the domain name points to a page within your site, or even better, have it point to a specific landing page.

5. Put together a letter that you can send to your sphere of influence that explains the services you provide and any unique tools offered on your website. Your sphere already has a connection to you, so give them the incentive to come to your site, and enter them into a drawing when they provide their email address. This will help to build up your email pipeline and save money in the long run on communication.

6. Get to know Craigslist. Craigslist is a great place to run ads for free and drive traffic to specific pages within your site as well as search properties on the MLS. Be sure to place ads in the real estate-services section as well as the for-sale section.

7. Become the “GURU” of your market. Learn the MLS and how to run market-condition reports that show what’s selling, the number of days on the market and more. Learn everything you can about your market in order to position yourself as the go-to person in your area. Be sure to share the information on your website so that you’re providing true value to anyone who visits.

Tricia Andreassen is the CEO/founder of Pro Step Marketing.

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

First, prioritize those renovations that will have a maximum impact, both in terms of aesthetics and investment values. Also prioritize the projects that will enhance the livability and enjoyment of your home.

Next, decide whether or not it makes sense to handle these projects on your own or call in a professional for help. According to the experts at Sears Home Services, while taking on home remodeling yourself can seem daunting , enlisting the right help can make the process simple and seamless.

Here are three areas of the home to put at the top of your list this year:

The Bathroom
According to the National Association of REALTORS®, one of the best investments in a home is a bathroom renovation. Remodeling a bathroom that’s more than 25 years old substantially increases the value of your home. While your bathroom may not need a complete makeover, updating cabinets, lighting, tiling or countertops can go a long way toward improving design and functionality. Or, consider a few quick fixes, such as a new towel bar, shower-curtain rod, robe hooks or showerhead.

The Kitchen
The kitchen is the heart of the home. And kitchen renovations don’t need to be dramatic to be impactful—updates such as new countertops, cabinets, appliances or flooring can all dramatically improve the kitchen. These improvements can also help yield increased functionality and space throughout the kitchen. For a simple refresh, homeowners can give their kitchen a new look by replacing the hardware on cabinets, painting or updating fixtures.

The Floors
A great way to upgrade an area of your home and pull a room together is to install new floors. There are myriad options to choose from: carpeting, tile, laminate, porcelain or ceramic tile, vinyl or hardwood. Consult a home-improvement retailer or flooring expert to help make the best choice and to ensure proper installation.

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

Tip 1. Compare the Cost Of Moving to Remodeling. Moving is expensive, typically involving a 6 percent commission on the sale of your current home, plus another 2-4 percent for closing, moving, and other costs. If you like the present neighborhood then look into what improvements you could make with 8-10 percent of your home’s current value before you decide to move.

Tip 2. Design Ahead. You don’t want to come up with an additional brilliant idea right after the job is complete. You can reduce the risk by doing some advance research. Read up on design, talk to friends with knowledge and experience with the type of remodeling you’re considering, and get suggestions (and references) from architects and remodelers while you’re in the early stages of planning. If you’re changing current floor plans get some graph paper or a floor planning kit and play around. Start a file for literature about components and finishes.

Tip 3. Don’t Over Improve. This may be of less concern if you plan to remain in the home for a long time, but it’s very important if you’re remodeling to sell your home. Some remodeling jobs, such as a prudent overhaul of a very dated bath or kitchen, or the addition of a second bath to a one bath home, can return more than 100 percent of the cost at the sale of the home, and help you sell it faster. However, if you want a different look, you’ll probably not recover the investment in a home that is already significantly more valuable than most of the others in the neighborhood.

Tip 4. Allow Plenty of Time for the Job. Murphy’s law applies to remodeling. If you expert a contractor to compress a six week job into four weeks, you’re asking for trouble. Also, you can save money and probably get the job done faster if you have the ability to schedule it in the off season when contractors have fewer jobs to bid on.

Tip 5. Check the Remodeler’s Credentials – Carefully. Are they licensed and insured for workers compensation, property and personal liability? If in doubt, ask to see their insurance certificate. Do they belong to the National Association of the Remodeling Industry, the National Association of Home Builders Remodelers Council, and/or any of the more specific trade associations in the remodeling sector? That’s a sign of commitment to the trade and to professionalism. Most also offer certification and/or management training and keep their members up to date on the latest products and techniques. Ask for recent references on similar jobs (employee and subcontractor turnover is often fairly high, so recent jobs are a reliable indicator of their current capability). Check their record with the Better Business Bureau while you’re at it.

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.
Courtesy of the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners

1. Don’t buy if you can’t stay put. Given today’s challenging marketplace, don’t buy a home unless you can commit to staying there for at least a few years. The days of flipping for profit are long gone and you stand to lose money if you sell too soon after buying.
2. Shore up your credit. Securing a mortgage in today’s market requires excellent credit so take the time to clean up your credit report well before you begin looking for a home.
3. Be honest about what you can really afford. The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But CNNMoney recommends using one of the many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
4. If you can’t put down the usual 20 percent, you may still qualify for a loan. There are a variety of public and private lenders who, if you qualify, can provide options in terms of interest rates and down payments.
5. Schools affect home values. Even if children aren’t a part of your life now or in the near future, look at homes in areas supported by a good school system. Good schools are paramount for many homebuyers and have a direct impact on the value of your home.
6. Work with a real estate professional. Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Today’s market requires expert guidance through every stage of the home-buying process.
7. Choose carefully between points and rate. When picking a mortgage, you usually have the option of paying additional points – a portion of the interest that you pay at closing – in exchange for a lower interest rate. If you stay in the house for a long time – say three to five years or more – it’s usually a better deal to take the points, says CNNMoney. The lower interest rate will save you more in the long run.
8. Get pre-approved. This will help you avoid the emotional rollercoaster of falling in love with houses you can’t afford. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
9. Make an educated bid. Work with your real estate professional to make the right opening bid. Bids should be based on the sales trend of similar homes in the neighborhood, so review with your agent sales of similar homes in the last three months.
10. Hire a home inspector. In addition to the appraiser your lender hires, you should also hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

For more information about buying or selling a home in the Springs area, visit our website at www.bevschow.com. To search like an agent in Southern California, sign up for a Listingbook account with the link on this page.

Source: Money.cnn.com.

Let’s say you just purchased a new home that has a large property tax commitment. You may be able to do something about it. In today’s housing market, having the property reassessed is very in vogue.

“A tax assessment is an estimate on the value of your property solely for the purpose of determining how much you owe in property taxes,” says Peter Hoegen, an attorney with Hoegen & Associates, PC in Pennsylvania who specializes in tax assessments.

It’s a good bet that you may have bought the house for a price lower than the property value, so sometimes taxes can be lowered if the value has changed.

Not that it’s only about the taxes. Another reason for a reassessment is for insurance purposes, to make sure the home has an appropriate level of coverage. A third reason might be due to the changes in value that the downturn in the economy has caused.

For those who may be thinking of selling, an assessment is a good way to learn if the house is worth more than one even owes, and can provide valuable data for one looking to get a lower mortgage rate.
“If you are thinking of having your home assessed for possible readjusting of the value, it’s important to understand the protocols and timelines that your city or state has, because all are different,” Hoegen says.

The first step is to begin with the county assessor’s office. In 2012, the process has become much simpler for some, as more places are allowing you to appeal online. If that’s not an option, plan a visit to your local assessor’s office to register for an appeal.

The most common way this is done is by someone coming out and inspecting the property and comparing it to neighboring houses. Some will rely on computer models, but that could be problematic because you’re not seeing everything that can be viewed with the naked eye.

Although the appeal process itself can be relatively quick if it’s clear that a change needs to be made, actually having someone come out to your property to perform the assessment can take anywhere from a month to a year, depending on the amount of people following suit. In today’s housing market, with property values decreasing in many areas, more people are turning to reassessments to get their taxes down.

When making your case for a lower value, have at the ready documents that show what homes in the neighborhood have sold for. Prices of comparable homes that have sold in the past six months up to a year will be most helpful to build your case. Much of this data can be found on the Internet, but your real estate agent who helped you buy the home can help as well.

Remember, assessed value is often not equal to market value. Many times, an assessment is only a percentage of what the home could actually be sold for, so appealing might not be as financially advantageous as you think it will be. The last thing you want is for your taxes to rise because the house is worth more.

If you have questions about buying or selling a home; or just have a question about the current market conditions, contact me.

According to REALTOR® Ginny Zukowski, the “money pit” can not only be a home that has hidden repair costs, but homeowners insurance policies may require the repairs to be made before they will write a policy. Also, banks are not accepting all appraisals and often require a second and sometimes third appraisal before they will provide a loan. This can lead to a lower price than the original appraised amount and less than the contract price.

To help potential homebuyers, Zukowski reveals the following tips:

Tip 1: Be prepared for the new changes and have open communication with the real estate agent and lender. Try to meet with them together and find out all of the upfront cash that will be needed to purchase the home. Buyers will need to pay for all inspections, appraisal, good faith money, and provide a down payment. With new private mortgage insurance, this could be several thousand dollars.

Tip 2: Once the buying process starts, be prepared for the closing to take some time. If it is a short sale, this could be four-to-five months. The loan process is also taking longer, around 45 days on the average, and additional delays often occur.

Tip 3: Be on the lookout for properties that will soon need a new roof or A/C. Home insurance policies can require new ones before they issue a policy and the mortgage lender requires homeowners insurance. This can cost the buyers more upfront dollars.

Tip 4: Before putting in an offer, ask the REALTOR® to explain all the possible things that could require more time and money at or before closing. As an example, the bank may require additional appraisals. A bank-approved appraiser may be required.

Tip 5: Be sure the REALTOR® goes over all of the fine print before an offer is submitted. Be aware of all the possible things that could go wrong and how it could impact the buying process up front.

With a real estate professional to help both buyers and sellers navigate the process, you can be know what to expect in the home buying process…and what to avoid.

If you have questions about buying or selling a home; or just have a question about the current market conditions, contact me.

Source: GoToRealty.net