Fed Cuts Rate to Historic Low!

If you have been "on the fence" about whether or not to buy real estate, "Here's Your Sign!" to quote the famous comedian, Bill Engvall.



Rates were cut today to a Historic low. The federal funds rate (which is the the interest that banks charge each other) was slashed by the central bank to a range of zero to 0.25 percent.


The previous 1 percent target rate has been in effect since the last meeting in October.

This will likely mean 30 year fixed Mortgage rates BELOW 5% with no points...WOW!



Coupled with the fact that Middle Tennessee is still experiencing market appreciation, this is encouraging for those considering investing in real estate.

http://www.ofheo.gov/


Check out the good news for yourself by clicking this link then give me a call so we can get started looking for your real estate "Deal of the Century":


http://www.msnbc.msn.com/id/28223836/

2008 Realtor Magazine Cost vs. Value Report

If you are thinking about some remodeling or home improvement projects this winter, it pays to check out this report to find out which projects pay the highest return on investment, should you sell your home.

Check out the full report by following the link below:

http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008

For a summary, read on:

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)

Do you need to sell but have no time for remodeling?

Here are some "quick fixes" that add value and help improve your home's chances of selling:

8 Quick Fixes to Increase Value

With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners’ Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.

Source: December 2008 REALTOR Magazine

I'm Thankful For...

Autumn walks at Radnor Lake and the opportunity to watch the ever changing colors of nature. This week I noticed these red berries and snapped a shot with my phone.

I hope everyone has a great Thanksgiving holiday. We all have plenty to be thankful for. Take a moment to reconnect with your family, reflect on your blessings and express your gratitude...Then, go take a walk at Radnor Lake!

Visit Friends of Radnor Lake at: www.radnorlake.org/

CELL PHONE NATIONAL "DO NOT CALL" REGISTRY

Cell phone numbers go public!

A HELPFUL REMINDER....all cell phone numbers are being released to telemarketing companies and you may start to receive sales calls.

The kicker is: YOU WILL BE CHARGED FOR THESE CALLS! To prevent this, call the National Do Not Call List from your cell phone: 888-382-1222.

It takes less than one minute to complete the registration and blocks your number for five (5) years.

You must call from the cell phone number you want to have blocked.

Why not help others by passing this along so they can register too?

For more information, go to: http://www.donotcall.gov/

Blogger Buzz: Show off your Followers

Blogger Buzz: Show off your Followers

IRS Issues Guidance on First-Time Homebuyer Tax Credit

The IRS has released IR-2008-106, providing some guidance about how individuals who utilize the new $7500 first-time homebuyer tax credit will reflect the credit on their tax returns and receive the benefit from any refund.

The notice reinforces the fact that taxpayers will be required to repay the credit, starting with their tax return for 2010, which will be filed in 2011. The IRS is designing a new Form 5405 for those who utilize the credit.

Here are the Details courtesy of the NAR:

HOUSING AND ECONOMIC RECOVERY ACT OF 2008
First‐time Homebuyer Tax Credit

Amount of Credit?

Ten percent of cost of home, not to exceed $7500

Eligible Property?

Any single‐family residence (including condos, co‐ops) that will be used as a principal residence.
Refundable: Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

Income Limit?

Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively).

First‐time Homebuyer Only?

Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

Recapture?

Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.Effective Date?

Purchases on or after April 9, 2008 and on or before July 1, 2009

Source: National Association of Realtors

INTEREST RATES: LOWEST IN SEVEN MONTHS!

Great News if you have been waiting for an opportunity to re-finance or purchase a home!

Feel free to contact me if you need a good referral for a mortgage banker.

Also, if you are considering investing in Real Estate, now is a good time to take advantage of lower home prices and rates.

Daily Real Estate News September 19, 2008

30-Year Mortgage Rates Reach 7-Month Low

Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.78 percent during the week ended Sept. 18 from 5.93 percent the prior week, marking the lowest level in seven months. During the same period, the 15-year mortgage rate dropped to 5.35 percent from 5.54 percent. Meanwhile, interest on five-year adjustable mortgages slipped to 5.67 percent from 5.87 percent; and the one-year ARM slid to 5.03 percent from 5.21 percent.

Source: San Diego Union-Tribune (09/19/08) © Copyright 2008 Information Inc.

Old House Fans - Check This Out!

You may know that I live in a historic home, built in 1857.

We love living among the history and especially the architectural detail. The plumbing and lack of closets, not so much!

Anyway, this article caught my eye this week and I decided to share. If you get a wild hair and want to move to one of these locations, make sure to call me first so I can refer you to a qualified REALTOR...

Daily Real Estate News June 27, 2008

Top Places to Buy an Old House

This Old House magazine, is forever on the hunt for the greatest old houses. In the July issue, the magazine identifies 12 neighborhoods nationwide that it considers the best old-house neighborhoods in the United States.The winners were chosen because of their architectural diversity, the preservation momentum in the area, and neighborhood amenities, including walkability, services, and the level of community.The magazine also identifies dozens of other good neighborhoods.

Here are the magazine's top 12:

Centre Park Historic District, Reading, Pa.: five-bedroom townhouse can be purchased for about $60,000, a large Queen Anne for $135,000, and a mansion for less than $600,000.
Hampton Heights Historic District, Spartanburg, S.C.: homes range from $50,000 for a 1930s Arts and Crafts fixer-upper to $250,000 for a restored Queen Anne.

Galena, Illinois: a Greek Revival or Second Empire home can be bought for as little as $130,000.
Kempton's Corners, New Bedford, Mass.: prices run the range in this area, starting at $180,000 and then running as high as $800,000 for a Victorian.

Old Louisville, Ky.: a rehabbed manse might cost about $275,000, with prices topping out at $800,000.

Pleasant Ridge, Mich.: prices range from the low $100,000s for a modest bungalow to more than a million for a big Colonial Revival or Tudor.

Victorian Flatbush, Brooklyn, N.Y.: fixer-uppers are available for $600,000 to $900,000; a restored home will run you upward to a million or more.

Albany, Ore.: home prices in Albany's national historic districts range from $90,000 for a run-down Italianate to $400,000 for a fully restored one.

Georgetown, Texas: price tags on fixer-upper bungalows can be purchased for as little as $90,000; grander homes can run in the millions.

Centralia, Wash.: homes in the Edison District range from $250,000 for an 1,800-square-foot Craftsman to $600,000 for a massive Queen Anne.

New Castle, Del.: a brick Federal in good shape will run you $385,000, while large historic homes with river views cost close to a million.

Washington, Ga.: Antebellum mansions run as low as $350,000, while a 2,000-square-foot Victorian cottage might go for $130,000.

Source: This Old House online, by Keith Pandolfi, Allison Goldstein, Taryn Lonergan, and Melissa Thomas

Now Is The Time To Be "Movin' On Up!"

Does Moving Up Make Sense?

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

We are experiencing a "harmonic convergence" of abundant supply and historically low interest rates, which provides buyers in Middle Tennessee with the most favorable opportunity to buy in 35 years!

If you are considering moving up in house or possibly purchasing a second home, please shoot me a quick email to let me know if I may be of assistance. I can even sell you the house pictured above!

Dawne@bobparks.com

*Reprinted from REALTOR Magazine with permission from National Association of REALTORS Photo Courtesy of Ben Teague

Vacation/Investment Property 1031 Exchange Advice

The ice and snow this week has me thinking of warmer places and vacation!

The RealtyTimes had this great article which provides solid advice for managing your investment/vacation home if you plan to do a 1031 exchange when you sell it. Link below to read:

http://realtytimes.com/rtpages/20080204_vacationexchange.htm

(photo of our farm in the snow )

Top Home Improvement Values for 2007

Remodeling Magazine has released their 20th annual "Cost vs. Value Report" for 2007. Surveying Realtors in 64 markets nation-wide, the top "return on your money" list puts replacing existing siding with fiber cement at the top of the list.

If you are considering making improvements in preparation of marketing your home in the Nashville area, read on to learn the top projects from 2007's survey in the East South Central Region...

#1 REPLACE SIDING

Replacing siding recoups up to 93% making this the number-one cost vs. value home improvement for 2007. For a upscale home, fiber cement siding brings 93.6% with an average cost of $10,600 for our area. Replacing vinyl siding on a mid-range home should cost roughly $8,600 and recoup 89.6%.

#2 ADD A DECK

If you add a wooden deck ($9,000 avg. cost) on a mid-range home you sould be able to recoup 91.4% of your investment when selling. A composite deck ($14,000 on avg.) on a upscale home yields 80%.

#3 UPDATE THE KITCHEN

Minor updates (avg. cost of $20,000) should recoup 85% on a mid-range home. A major kitchen re-do ($52,000 on avg.) yields 81.2%

#4 (TIE) BATHROOM REHAB

Updating your bathrooms ($14,000 avg. cost) will net you 83.5% on a mid-range home.

#4 (TIE) CONVERT ATTIC TO ADD A BEDROOM

If you are lucky enough to have a large attic space, adding a bedroom can gain back 83.5% of the cost ($41,000 on avg.).

For more information and to read the article in REALTOR Magazine, you can go to

www.Realtor.or/realtormagazine and click on the "Cost vs. Value" link.