Property Management Nation

Entries from January 2010

Home Prices Still Dropping: 5 Cities Hit the Hardest

January 26, 2010 · 1 Comment

The real estate market has yet to hit rock bottom as was predicted at the end of 2009, but rather continues to slide in many markets.  While this slide isn’t nearly as devastating as the drop in 2008, prices are still dropping 1.4% nationwide.  According to Forbes and Altos Research, these five cities have had the fastest drop in medium single-family homes in the past three months:

  1. San Diego, California
  2. Salt Lake City, Utah
  3. Charlotte, North Carolina
  4. Denver, Colorado
  5. Portland Oregon

Altos Research looked at 27 of the most closely monitored real estate markets in the United States and considered the inventory, days on the market and asking price of single-family homes in their January market update.  San Diego fell the fastest with a drop of 7.3% between the months of October and December 2009 due to a highly unstable market.  Prices started to rise at the start of 2009 but once fall hit dived quickly.  As for the third worst city, Charlotte, the drop was mostly due to the crash of Wall Street.  Charlotte is the home to major financial corporations such as Bank of America Corp.

The only city to actually see a rise in home prices was Miami, Florida.  Home prices there rose to a median of $495,000 which is up 2%.  While this can be looked at as a good thing, it should actually be taken with a grain of salt.  This area was one of the hardest hit markets in the original real estate crash and is therefore regaining momentum slowly.  Homes in Miami stay on the market the longest of any market with an average of eight months.  Also the Altos research does not include condominiums which is a large part of the Miami market.

While this news is depressing for the housing market and especially those that were optimistic about an upswing in 2010, keep in mind that these falling numbers are just a gentle slide compared to the crash we experienced a few years ago.

Categories: Real Estate Trends

Prince William Relocating to Australia?

January 20, 2010 · Leave a Comment

Prince William walks to an awaiting car after arriving in Sydney

Photo from ABC news Dina Rosendorff

Prince William, 27  was so impressed by the warm welcome and weather he received upon his arrival in Sydney on Tuesday that he joked about moving there.  He said “it’s been a terrific couple of days in Sydney and because of that I’ve joked that I will actually try to buy a house in Sydney” and “so if any of you have got any properties for sale then please let me know,” (yahoo news).

Second in line to the English throne, Prince William spent two days in Sydney, Australia a trip he requested unofficially, to get to know the people and the country better.  His last trip to Sydney in 1983 he was only nine months old and accompanied by his late mother Princess Diana.  William or “Wombat Willie” as he was nicknamed on that trip, was welcomed to the country in the poor, innner-city neighborhood of Redfern with a traditional Aboriginal “smoking ceremony” that was presided over by a painted elder holding smoking gum leaves.  William spent his time meeting with elders, visting a drug rehab center, enjoying a marksmanship contest at an army base, an open-air barbeque, a night out at a popular nightspot and a ride accross the harbour on a high-speed boat.  On Thursday he will visit some of the areas near Melbourne that were decimated by bush fires before returning home.

Categories: just for fun

15 Ways to Upgrade Your House Cheap!

January 15, 2010 · Leave a Comment

With the current economy you most likely can’t afford a new home or a costly home remodel.  There are some things you can do without breaking the bank in the highest traffic areas of your house- the bathrooms and the kitchen.

In the Bathroom:

  1. Replace switchplate covers, drawer knobs and door handles for around $20 and coordinate them for a modern look.
  2. Paint a wood floor with high traffic paint designed for moisture areas instead of using costly tile.
  3. If privacy is needed and you have windows to cover, consider frosted glass or glass brick instead of the old fabric window treatments.
  4. Shop in the teen section for vibrant and bright-colored washclothes, handtowels and a new shower curtain and if you have room in the budget- new towels.
  5. Ask the hardware store employees if there is any paint that other customers had made and didn’t want and use it to sand and repaint your bath cabinets.
  6. If you have a classic footed tub, have it professionally refinished and fitted for new fixtures as this is way cheaper than buying a new one.
  7. Use removable adhesive hooks instead of buying new towel racks- there are many different styles available and they are very sturdy.
  8. Replace a bulky cabinet with a petite pedestal sink and use a tall basket underneath for storage.

In the Kitchen:

  1. Add new light fixtures over your counters and island and remember they don’t have to be the same as long as you stick with a common element like a color.
  2. Find clearance tiles to create a medallion instead of retiling or painting the entire backsplash.
  3. Replace the kitchen sink faucet, this small change can really make a difference!
  4. Instead of expensive blinds, consider a valance up top and a half curtain in the middle of the window frame using basic café curtains.
  5. Paint a focal wall a bright color- this usually takes less than a quart of paint and can also be done with unwanted or extra paint.
  6. High impact accessories like countertop storage canisters, new table runners or bowls of fruit add texture and color for cheap.
  7. Replace only the granite or marble in your island instead of all the countertops for a high-end change without the high-end cost.

These easy steps can really make a difference in some of the most used rooms in your house and won’t bust your wallet to do so!

Categories: Property Upkeep

New Year, New House?

January 13, 2010 · Leave a Comment

According to many experts we have seen the worst of the housing market and although we are far from where we were a few years ago, the market is slowly recovering.  With the extension of the first time homebuyers federal tax credit coupled with builders building less homes to cover the housing demand while the American population continues to  increase, the real estate market should start to look up in 2010. 

Foreclosures are still occurring however due to very high unemployment and underemployment rates.  With so many jobs being outsourced, these high rates will have a hard time recovering and with it so will the American economy.  The housing market is slowly recovering, but this is slow going due to so many people being jobless and unable to pay their current mortgages.  Areas that were the hardest hit like Nevada, Arizona, Florida and California are starting to level out and existing home sales are improving.  With cuts in production many housing markets across the country are starting to achieve a better balance.  Go to the housing predictor website for more exact information.

All this being said, if you can afford to buy a home this is the time to do it.  Terry Hudson of Weichert Realtors says that “more wealth is created when you buy at the bottom of a cycle instead of at the top.”  The time is right for first time buyers with all the government assistance available and interest rates still at a record low.  The market seems to have reached rock bottom and hopefully has no where left to go but up.

Categories: Uncategorized

Is Your Credit Score Good, but Not Good Enough?

January 6, 2010 · Leave a Comment

Back in the early 2000s a credit score of 620 was considered good, then in 2008 it jumped to 680 and now if your score is not upwards of 740 you may not qualify for a loan or refinance.  Not only may you not qualify, you may actually be charged every time your score drops 20 points!  These changes are due to the two biggest mortgage lenders in the country, Freddie Mac and Fannie Mae redefining risk when they suffered major losses in last year’s market.  These trends are likely to get worse rather than better in coming months as well.

So what can you do to raise your score?  Most everyone has the ability to raise their score 10 to 20 points in as low as 30 days by taking simple measures.

  1. Know your credit score and how it affects your loan rates and ask your lender to use a credit analysis to check for inaccuracies.
  2. Report any discrepancies.  If necessary take proof of the inaccuracy to a credit agency and have them work on your behalf.
  3. Increase your credit limits and pay down balances.  Ideally keep your credit card balances drastically below the 30 percent of available credit limit and as close to zero as possible.
  4. If possible move debt around.  For example if only one income is being used for the loan, move the debt to the other party’s name if applicable.
  5. Use your lender and a rescoring company to get a rapid rescore.

If these tips aren’t enough to bring your credit score up, you can pay for points to buy down the interest rate or shop around for a lender who may be willing to hold on to the loan instead of reselling it which may exempt them from the blanket credit score rules.  If you are looking to refinance or take out a loan in the near future, start working on your credit score now.  Remember that if you can save money on a refinance now,  it might be worth paying extra up front to save money down the road.

Categories: Property Upkeep · Real Estate Trends

Crowded Buildings that Burnt Down

January 5, 2010 · Leave a Comment

Buildings rise, cities spread.  And sometimes, when the mood strikes them, they come burning down.  With mankind’s long history with fire, it’s almost surprising how long it has taken us to take fire safety seriously.  When corners are cut, fire will most certainly follow.  Today, modern technology and fire-prevention techniques have fortunately minimized the sheer amount of damage fires can do.  But prior to the 20th century (and even during it), little regard was given to fire danger.  Sure, the entire city could go up in flames, but it would probably wouldn’t, right?  Worst of all, however, is when fire safety was ignored in buildings that would be regularly crowded with people.  Here are just a few of those buildings.

Cocoanut Grove

Image via Wikipedia

The second worst single building fire to ever occur within the Unites States.  If we’re just counting nightclubs, then this is the worst fire ever.  The Cocoanut Grove was a nightclub designed to hold 460 people.  On the night of November 28th, 1942, one thousand people were inside.  Downstairs, in the dimly lit “Melody Lounge”, a busboy replaced a light bulb that had been removed by one of the guests to provide a little more privacy.  Whether it was, the heat from the bulb, or the extinguished match, something set the club’s highly-flammable tropical decorations on fire.  Side exits had been welded shut to prevent patrons from leaving without paying, and the main entrance was a narrow revolving door.  A large front window had also been boarded up.  Alternate exits that did exist all opened inward.  492 people would die, and hundreds more would be injured.  The club’s owner would be convicted of involuntary manslaughter.

Iroquois Theater

Image via Wikipedia

Quite simply, this is the worst single-building fire ever to occur in the United States.  For lack of a better word, this tragedy was disgusting.  The building was flat-out advertised as fire-proof even though construction had been rushed, and the fire inspectors bribed with free tickets.  On December 30th, 1903 in Chicago Illinois, during the second act of a performance attended mostly by mothers and their children, an arc light shorted and ignited a curtain.  Within 20 minutes, 571 people, mostly women and children, would be dead.  The death toll would climb to 602 as more would die in the hospital later.  For aesthetic reasons, most of the fire escapes had been disguised.  Those who did find a door (which opened inward) would quickly discover them locked with bascule locks that most Americans would be unfamiliar with.  Fire escapes were unfinished, and the asbestos curtain meant to protect the audience was likely not even made from asbestos.  Ultimately, those responsible would get away with their crimes, but the tragedy did result with the creation of many safety standards that are still in use today.

Triangle Shirtwaist Factory

Image via About.com

Before 9/11 this was the worst workplace disaster to ever take place in New York City.  So when did it happen?  All the way back in 1911.  The Triangle Shirtwaist Factory was located within what is now known as the Brown Building of Science (then known as the Asch Building).  On the afternoon of March 25th a fire broke out on the 8th floor of the building.  Strangely, while the the 10th floor was warned in time, the 9th floor was not.  In all, 146 people died and 70 were injured.  But this does encapsulate the true horror of what happened.  There were only two main exits from the floor, one was locked, and the other blocked by flame.  The elevator was rendered inoperable and the fire escape outside  hadcollapsed under the weight of people trying to flee.  Left with no other choice, as crowds of bystanders stood and watched, 62 women began jumping a few at a time from the 9th story buildings, choosing suicide over being burning alive.  The mass suicide took several minutes as the women filed out of the sparse windows.  Some who hesitated would be caught by the flames and fall from the building as horrific, human torches.

The World Trade Center

image via wikipedia

Need we say more?  Few moments in history come down only needing their date to define them.  There are still a lot out there, however, who believe it was the impact of the planes alone that brought down the towers.  On the contrary, credit must be given where it is due.  The World Trade Center towers were awesome buildings, and not just for their size.  The buildings survived direct impacts from full sized passenger jets traveling hundreds of miles an hour upon impact.  But the planes did not directly take down the World Trade Center… the resulting fires did.  The World Trade Center towers utilized an unusual type of construction.  A good amount of their structural support was provided by the buildings’ outer shells.  Unfortunately, while this allowed the buildings to survive a massive collision, it also allowed for the fuel within the planes to penetrate far inside the tower.  Had the towers been more traditionally built, it’s likely the fuel would have remained mostly on the exterior of the building, or at least more towards the perimeter.  As it was, the fuel ignited and began to burn the core of the two buildings.  Support columns were weakened and floors began to sag.  This pulled perimeter columns inward reducing their ability to support the building above.  Both buildings would collapse, cascading down.  2,750 people were killed.

It has taken millennia, but it is fortunate that now, finally, fire seems to be taken seriously and given the respect it deserves.  One can only imagine the sheer amount of treasures, artifacts, and just plane history that have been lost to fire’s indiscriminate flames.  Today, our cities are built and our treasures stored with fire very much in mind.  Thank heaven.

Categories: just for fun

Protect Yourself From Mortgage Fraud!!

January 4, 2010 · Leave a Comment

Mortgage crime is a serious threat to homeowners, business owners and the national economy with annual losses estimated to be between $4 and $6 billion (FBI).  There are two distinct areas of mortgage fraud to be aware of:  fraud for housing and fraud for profit.  Fraud for housing is usually done by a borrower in which the fraud is to acquire and/or maintain a property under false pretences such as when a borrower misrepresents their income or employment history in order to receive a loan.  Fraud for profit is usually perpetrated by an industry insider like when loans are made based on fake properties, the value of a property is falsely inflated, or resolve equity.

The most current mortgage fraud trends see mortgage based identity theft, property flipping and equity skimming on the rise.  Home and business owners need to be aware of mortgage debt elimination scams, predatory lending schemes and foreclosure fraud scams as well.  Scamming people out of hard-earned money is nothing new, but with the advancement of technology many scammers are learning to be more sophisticated.  Below are some tips to avoid becoming a victim of mortgage fraud.

  1. Remember there is no easy way to eliminate your debt and if seems too good to be true it most likely is.
  2. Use referrals for your real estate and mortgage professionals and be sure to check their licences with the proper agencies.
  3. Do not sign any blank forms and never sign loan documents that include blank lines.
  4. Understand any forms you are signing and if you don’t, consult an attorney.
  5. Be sure you understand the terms of your mortgage and check it against all your personal information to make sure everything is accurate.
  6. Be wary of high-pressure sales techniques, strangers and unsolicited contacts.
  7. Make sure to review the title history on any property you are purchasing to make sure it hasn’t been “flipped” and the value falsely inflated.
  8. Review tax assessments and comparable property sales to verify your property’s value.
  9. Do not enter into a loan with a lender that claims to be your only chance at owning a home or receiving a loan and avoid “no money down” loan gimmicks.
  10. Do not be persuaded to make false statements about your income, length and nature of your employment or the source of your down-payment.
  11. Be wary of any web-based or email-based advertisements that requests upfront fees.

For more tips check out the MBA’s website.

Categories: Real Estate Trends · property management