Selling one house and buying another is like putting yourself between a rock and a hard place.
If you set both closings within the same basic time frame you run the risk of ending up with two mortgages or much worse.
If you schedule them with sufficient time between to solve any closing problems you face the prospect of renting and moving twice.
This is not a rare occurrence -- the National Association of Realtors, or NAR, estimates 6.24 million homes were bought or sold during 2006, and unless you were a first-time buyer or kept your old house as an investment property, most of those transactions involved buying one house and selling another.
But there are steps you can take to protect your best interests.
A dual real estate transaction means you have two choices: a simultaneous closing or a staggered closing. With a simultaneous closing, you set these two transactions as close together as possible, often on the same day -- usually selling first and buying second. With a staggered closing, you build in some time between the two transactions -- days, weeks, months or even more.
First, the bad newsWith a staggered closing, you incur the cost of renting in the interim. You may have to find a place to store some of your belongings and deal with the hassle and added expense of moving twice. You're losing the equity you could be building in a new home. And there's the ever present danger you'll fritter away the profits you've banked from the last sale before you can get into your next home.
A simultaneous closing also has disadvantages. If something goes wrong in the first transaction, you could find yourself in big trouble.
If the first closing fails and you don't walk away with a big fat check, you may not be able to close on the house you're buying. Which could mean you're defaulting on that contract and could lose your earnest money deposit -- often as much as 10 percent or 20 percent of the purchase price.
If this happens at the last minute you, of course, have nowhere to live and have to immediately arrange to have all your possessions put in storage. Obviously this situation could lead to many other expenses and inconveniences. If you're more fortunate, you could quickly arrange for an extra loan to enable you to close on the home you're buying and to cover the period in which you own two homes -- so-called "bridge" financing. At best, you would only have the burden of making two mortgage payments every month.
Kristina Grebener has seen the problem from the inside. When she and her family planned to buy a bigger house in their same Madison, Wis., neighborhood, they didn't anticipate any problems. The market was hot and properties were moving. They found the house they wanted, made an offer and set the closing date for late July, thinking they'd have sold their old house by the end of June.
But in the interim, there was "a cooling in the market," Grebener says. A lot of nearby homes went up for sale, and "the buyers weren't there to support that," she says.
The family closed on the purchase in July as planned, using a home equity loan on their old house to make the down payment on their new home. But they have yet to sell their first home or move. Counting the new mortgage payment, the home equity loan and double utilities, keeping the old house is costing the Grebeners an extra $2,600 each month.
"Every month I make a mortgage payment is lost money," she says. And while the family can afford it for now, it's putting a dent in their budget -- especially with kids just a few years away from college, she says.
"It's like a game of musical chairs," Steven Rick, a senior economist at the Credit Union National Association, says about coordinating closings. "It's a function of the housing market. Now that it's unraveling, you definitely do not want to be buying a home without selling yours."
Ron Phipps, a broker with Phipps Realty in Warwick, R.I., agrees.
"Very few people have the ability to own two properties with ease," he says. "For some people, the closing date is as pivotal as the money." So the goal is often to schedule the home sale first, then set the home purchase within the next 24 hours -- often for later that same day. "Doing simultaneous closings is really the goal."
But finding a buyer to close on your home at the exact minute you find a home to buy yourself isn't always easy. More often than not, you've found one without the other -- and that can make setting the closing date a tricky proposition.
"For real estate practitioners, this is always the hardest part of the transaction," says Phipps. "Typically, you have to have the house you're selling cleared out at closing." But just as often, "you need money from the first house to close on the second house."
Just like staggered closings, simultaneous closings should be carefully planned. "It needs to be done with good advice and the best precautions," says Dave Dalzell, a regional vice president of the NAR and the owner/broker of Abilene, Texas-based Dalzell Realtors.
Another potential downside of a simultaneous closing: If the buyers know you're in a time crunch, they can use it to squeeze you for extra considerations at the last minute -- like getting you to pay for decorating upgrades or more of the sale costs.
A Fort Lauderdale, Fla., couple told Bankrate they were "held-up" by the buyers of their home in this manner. "An inspection had showed a slight leak in a shower and so we had it repaired by a licensed plumber a few weeks before closing. To make sure it was done right, we had the entire shower removed, a new shower pan installed and the entire bathroom retiled. At the closing table, the buyer said he wouldn't accept the repair because it had not been done by someone of his choosing and refused to close. This was the third delay in closing, and the buyer knew that we had to close on our new home that day or lose a $20,000 deposit. In the end, we had to give the buyer a $5,000 credit to get him to close. It was highway robbery."
It can wreak havoc if something goes wrong with the first part of the transaction," says Phipps. And nine times out of 10, if something does go wrong it will be with the first sale, not the second, he says.
The time constraints can also pressure you to gloss over closing details that may need further examination. This is one instance when it can really pay to have your own private closing attorney review the records ahead of time and either attend the closing with you or be available by phone to handle any last-minute questions or complications.
Before you agree to a simultaneous closing, analyze your buyer.
Do the old gut-check test, too. What do you really think of these people? Are they fiscally and emotionally sound? Are their requests reasonable? And are you getting a fairly consistent message from their camp or do their needs, demands and dates keep changing?
Look at your side of the table, too. What are your resources and risks? Can you get interim financing if you need it? Exactly how much would it cost? Do you want to put your stuff in storage and rent for a month or two? How soon must you close or move?
Dalzell remembers one friend (not a client) in another state who called for advice when his closing went awry. When the two of them put a pen to paper, Dalzell demonstrated that the man's interim financing option would only add $500 to the cost of the deal.
That's why you have to analyze all of it," he says. Ask yourself: What's the worst that can happen? And put a number on it. Then consider: What's the best that can happen? And put an estimate on that.
So which is safer -- the simultaneous closing or a staggered version?
"There's a risk no matter what you do," says Dalzell. "There's no easy way to do it."
What you can do But there are some steps you can take.
1. Specify contract terms. First, if you have to sell a home to buy your next home, put that into your contract. That way, if your first closing doesn't occur you will have the choice of whether you still want to close on the purchase. In a market dominated by sellers, this sort of contingency clause will rarely be accepted, but in a buyer's market sellers will be more likely to accept this as a condition of sale.
2. Select date carefully. Next, put a little thought into the actual closing date. Sometimes, buyers or sellers want to close in a specific number of days and will pick a date without looking at a calendar -- which can create confusion if it falls on a weekend, says Phipps. Instead, pull out the calendar. "Set it for a date you can make things happen," says Phipps. In case you need some missing piece of paper or additional information, close on a weekday and don't set it for the very end of the month. "The end of the month is crunch time for mortgage companies, title companies and escrow companies," says Phipps. "Pick another day." And set it for early in the day," he says. "Don't try to do simultaneous closings at 3 and 5 in the afternoon."
3. Have a plan B. If you schedule a simultaneous closing, have a backup plan for what you do if the first closing doesn't go off as planned.
4. Be an early bird. The real secret of any closing -- simultaneous or staggered -- is to get as much as you can done in advance. You don't want everything being done in the last 24 hours," says Dalzell. "You want to back things up as far as you can." And that includes everything from repairs and final inspections, to reading the closing documents and negotiating moving dates. Many times a sale is contingent on a professional home inspection. Get that out of the way right after the offer is accepted. That way, if the inspector finds a problem, you have time to either fix it or rework the price well before you have to actually close. "It doesn't make sense to create challenges close to the closing," Phipps says.
5. Line up your money. At the same time, finalize the financing, says Phipps. Then, when those two steps are complete, do the title search.
Dana Dratch is a freelance writer based in Atlanta.
Thursday, February 22, 2007
The Global Village and Rhode Islanders
This is not what you think it is or what you think it should be for that matter. As the global village becomes smaller and more interconnected, Rhode Island enjoys a unique place in the world. Rhode Islanders are more unique than their home. The evidence is overwhelming… Rhode Islanders are still Rhode Islanders wherever they are. They share a common language and a socio-cultural experience. Travel anywhere in the world and Rhode Islanders have RHODAR (aka rhodah)…They find each other regardless of the situation and the geography….”Jeit.”
Our family business is real estate, fertile ground for Rhode Island stories. My mother started Phipps Realty thirty years ago when our family relocated into Rhode Island. Among my mothers first Associates was Sandy Messing, mother of Debra Messing of Will and Grace. The stories of new office are hilarious. Sandy had to climb into the bathroom window to open the door, because she and my mother had locked themselves out. Or better yet, the tow truck operator landlord did not recognize Sandy’s new car, so he towed it---while she was talking on the phone fifteen feet from the car. The only separating her and the car was the plate glass window that she was facing.
My roommate from College was taking a train to Telluride, Colorado and hears two women talking with thick Rhode Island accents. He turns around introduces himself and asks if they know me or my family. Of course, one of the two women went to school with my sister Denise…ok it is Anne Denise and she will want me to include that she is significantly (six years) younger than I am. As my roommate said, you cannot miss Rhode Islanders.
Several years ago I had traveled to Washington DC staying near Regan National Airport. While going out for a late afternoon run along the Potomac, a woman who looks vaguely familiar begins running near me at a pace similar to mine. A few minutes later, as she passes me she says by the way or you Ron Phipps? Yes I am and she lives ten blocks away from me in Rhode Island.
It is amusing to be in Naples, Florida where the Rhode Island reunion is bigger than most high school reunions. Furthermore, everyone knows everyone and all the non-Rhode Islanders know where Rhode Island actually is.
Among the more humbling experience was during a trip to San Martin. My wife and I were on one of the most beautiful beaches on earth: Orient Beach. Part of the beach is a clothing optional beach. No, they were not optional for me. My wife persuades me to take a walk. Most people are speaking French and it is a great place. As we make our way back to our things, someone with a Rhode Island accent yells Ron. I really do not want this person to know me, and I really do not want to see him without clothes. We start to walk faster and my wife says, why are you ignoring your name. “It’s not me.” He calls out again: RON PHIPPS. Slowly I turn to say hello, praying that this guy has his bathing suit on. He does… Thank God!
With most of the world, there are six degrees of separation between any two random people. In Rhode Island is it closer to one and half degrees of separation. Rho-dar
is the Rhode Island version of hometown GPS. Rhode Islanders always find other Rhode Islanders regardless of where they are. Invariably if you meet another Rhode Island they will ask if you know so and so. The conversation continues until there is a common acquaintance. It is intriguing and noteworthy, that the conversation focuses on people and relationships, not places. This is a home that is about people not things. So next time you traveling the world, let your Rho-dar go to work!
Ron Phipps, February 2007
Carpe Diem: You do not know what you do not know!
It is good that you don’t know what you don’t know.This conversation is born of respect and of humility, neither of arrogance nor hubris.
As ones hair grays and the arrow of time accelerates, it is fascinating how much better we understand the costs of life. When we are in our twenties it is intriguing how carefree and risk-orientated we are. As we age, and particularly as we have children, life’s lessons become more persuasive. Perhaps it is also the “memento mores,” the reminders of our mortality that actually ring a bell that we finally are capable of hearing. For whom the bell tolls, it tolls for me.
Maybe it is when you get to that age when you read the obituaries everyday to see which of your friend’s parents have died, but are not surprised when some of people just a little older than you are there. Maybe it is also, that your body is no longer an unbreakable, endurance machine. When you run, or bike, or swim, or maybe even when you walk, your body reminds you of its ‘humanness.’
This past several months have been a time of great reading: Looming Tower, No God But God, Brothers Karamazov, and the Life of Robert F. Kennedy. One cannot avoid the fragile nature and brief nature of our time here. One also cannot ignore how close we have been and are now to our potential demise, not just as individuals, but rather as a people, and more importantly as a species.
This is a long preface to a couple of thoughts. While we do not know what we do not know, it is about time we learn. We can no longer feign ignorance about our inability to deal with the finite nature of our time here. My grandmother passed recently, by father three years ago. (His death is still an open wound; his loss a nightmare from which I still hope to awaken). Both of these are chimes on life’s clock reminding me that this is it. The lesson is clear; things and money are both replaceable. Time is not. ONCE it is spent is it gone. We need to treasure time… Once spent, it is gone.
Regardless of your religious belief, your political persuasion, your economic status, or lack there of, death treats all equally. Recently, a public speaker was commenting that in this country, all of us our born equally, “and some of us just stay that way.” It is also worth acknowledging, that we all die equally. At the twenty-third hour and the sixtieth minute, our clock stops. So does everyone else’s clock. It is a cruel irony of humanness that we are all the same in birth and in death. Some of us are better prepared than others for each event, but the fact of both is the same.
The inherent message of this reality is two fold. First if there is something you really want to do: do it. Do not put it off, because you can be only certain of the time you have at this moment. Make sure that it includes celebrating your family and friends. They share life’s path with you, it is important that you thank them. The second piece is to make sure to leave something positive behind. With very few exceptions, when we die the hole we leave is very much like the hole we leave in bay after swimming. It fills in instantly.
Several books have talked about the impact of one thing on the course of human history. The Tipping Point articulates the impact of the final straw that changes weather, history, life etc. With that much potential impact, it is not a privilege, but rather a responsibility to leave something positive behind. Whatever that is should not be limited by this author’s limited perspective. You need to make the most of your time and your life; to be authentically who you are; and to leave something positive behind. That requires that you be a participant in your life, not merely a spectator. The other observation is that a little good deed can have staggering impact.
Take a deep breathe today, celebrate the gift of your life, and make a positive difference for good.
Ron Phipps January 2007
As ones hair grays and the arrow of time accelerates, it is fascinating how much better we understand the costs of life. When we are in our twenties it is intriguing how carefree and risk-orientated we are. As we age, and particularly as we have children, life’s lessons become more persuasive. Perhaps it is also the “memento mores,” the reminders of our mortality that actually ring a bell that we finally are capable of hearing. For whom the bell tolls, it tolls for me.
Maybe it is when you get to that age when you read the obituaries everyday to see which of your friend’s parents have died, but are not surprised when some of people just a little older than you are there. Maybe it is also, that your body is no longer an unbreakable, endurance machine. When you run, or bike, or swim, or maybe even when you walk, your body reminds you of its ‘humanness.’
This past several months have been a time of great reading: Looming Tower, No God But God, Brothers Karamazov, and the Life of Robert F. Kennedy. One cannot avoid the fragile nature and brief nature of our time here. One also cannot ignore how close we have been and are now to our potential demise, not just as individuals, but rather as a people, and more importantly as a species.
This is a long preface to a couple of thoughts. While we do not know what we do not know, it is about time we learn. We can no longer feign ignorance about our inability to deal with the finite nature of our time here. My grandmother passed recently, by father three years ago. (His death is still an open wound; his loss a nightmare from which I still hope to awaken). Both of these are chimes on life’s clock reminding me that this is it. The lesson is clear; things and money are both replaceable. Time is not. ONCE it is spent is it gone. We need to treasure time… Once spent, it is gone.
Regardless of your religious belief, your political persuasion, your economic status, or lack there of, death treats all equally. Recently, a public speaker was commenting that in this country, all of us our born equally, “and some of us just stay that way.” It is also worth acknowledging, that we all die equally. At the twenty-third hour and the sixtieth minute, our clock stops. So does everyone else’s clock. It is a cruel irony of humanness that we are all the same in birth and in death. Some of us are better prepared than others for each event, but the fact of both is the same.
The inherent message of this reality is two fold. First if there is something you really want to do: do it. Do not put it off, because you can be only certain of the time you have at this moment. Make sure that it includes celebrating your family and friends. They share life’s path with you, it is important that you thank them. The second piece is to make sure to leave something positive behind. With very few exceptions, when we die the hole we leave is very much like the hole we leave in bay after swimming. It fills in instantly.
Several books have talked about the impact of one thing on the course of human history. The Tipping Point articulates the impact of the final straw that changes weather, history, life etc. With that much potential impact, it is not a privilege, but rather a responsibility to leave something positive behind. Whatever that is should not be limited by this author’s limited perspective. You need to make the most of your time and your life; to be authentically who you are; and to leave something positive behind. That requires that you be a participant in your life, not merely a spectator. The other observation is that a little good deed can have staggering impact.
Take a deep breathe today, celebrate the gift of your life, and make a positive difference for good.
Ron Phipps January 2007
Wednesday, February 21, 2007
50-year mortage a risky proposition, experts say
By Dana DratchBANKRATE.COM
NORTH PALM BEACH, Fla. — Get cold sweats just contemplating 30 straight years of mortgage payments? You ain't seen nothing yet.
Home buyers shopping for a loan might notice a new kid on the block: the 50-year mortgage.
Some mortgage lenders see the idea as an alternative to "interest only" loans and a tool to shrink those monthly obligations — especially in high-ticket areas such as California.
"It's hard for some people to conceive this is happening," says John Marcell, immediate past president of the California Association of Mortgage Brokers. "But it makes a lot of sense. You'll be able to buy a more expensive home than you could qualify for otherwise."
But some consumer advocates and financial professionals worry that buyers who need to stretch payments over 20 more years are coveting too much house.
"It's definitely a bad idea," says Dave Ramsey, author of "The Total Money Makeover," and host of a nationally syndicated radio show on finances. "The family is still not building net worth," he says. "It's still just keeping the family in debt."
Alex Diaz Jr., vice president of Statewide Bancorp Inc. of Rancho Cucamonga, Calif., says the 50-year plan is better for the borrower than an interest-only or payment-option adjustable-rate mortgage. In an interest-only mortgage, the minimum monthly payment means zero is being applied to the outstanding balance.
A payment-option ARM can be worse — sometimes the minimum monthly payment doesn't even cover the interest accrued that month. You could make a minimum payment one month and find the next month that the outstanding balance grew.
While the 50-year fully amortized mortgage certainly means a slower rate of repaying the balance, at least the balance is being reduced, not remaining stagnant or increasing.
But Allen Fishbein, director of housing and credit policy for the Consumer Federation of America, disagrees. "Some might say it's more akin to leasing than buying," he says, because the percentage of the payment applied to principal is very low. It's not the product for someone who wants a home for traditional reasons, such as creating a nest egg, he says.
Currently, you're not likely to find 50-year home loans at your bank or credit union. Most of the loans are coming from mortgage brokers, says Marcell. "We're starting to see several of the wholesale companies offering that now," he says.
And while they can fit certain buyers in special circumstances, "I don't think the average consumer will benefit from a 50-year mortgage, because of all the interest over the long term," says George Hanzimanolis, president-elect of the National Association of Mortgage Brokers.
Rates for 50-year mortgages tend to be about 25 to 50 basis points higher than the rates on 30-year fixed-rate mortgages, Marcell says. A basis point is one-hundredth of a percent.
Critics contend that, for all practical purposes, a 50-year mortgage isn't much different from an interest-only loan.
"It's basically another way of saying 'an interest-only mortgage,' " says Ramsey. "You're going to be stuck forever in that thing — it's quicksand."
While the monthly payment is lower, you'll also pay more interest.
The monthly payment — not including taxes and insurance — would be $148 lower with the 50-year mortgage, but the entire $148 saved would be taken away from principal. Over the course of the 30-year mortgage the total interest paid would be $231,676, but with the 50-year loan the total interest would be a whopping $431,685 — $200,000 more. Over the 20-year difference in the loans, that would mean paying an average of $10,000 more per year in interest to get monthly payments lowered by $148, or $1,776 a year.
Not all 50-year loans are the same. While some loans offer a fixed rate for 50 years, others offer options that include a fixed rate for the first three or five years, then switch to an adjustable rate. Still other versions amortize the principal over 50 years but require a balloon payment after 30 years for the balance of the loan.
California-based Statewide Bancorp started offering 50-year loans last year, with fixed-rate, as well as ARM, versions. Both types run for 50 years with no balloon payments required. So far, more than 1,000 borrowers have opted for the mortgages, says Diaz, the institution's executive vice president.
Borrowers are likely to "be looking for a short-term solution, knowing they want to be using this as a starter home," says Diaz.
"In a state like California, we're having housing become more and more unaffordable," he says, so borrowers are looking at longer mortgages — and smaller payments — to help them get into the market.
Proponents of the product warn that it's not for everyone. "It doesn't fit everyone's bill," says Marcell.
Buyers who consider these products should "step back from the buyer's frenzy," he says. "Ask yourself: Does it make sense? What are the pros and cons? What's the best thing that could happen to me? What's the worst thing?"
Because you pay so little toward the principal, it's not a good choice for someone who might want to move within a few years. "I like to think these people are going to stay with that particular product for at least five years," says Marcell.
A buyer should be anticipating some sort of increase in income, he says.
But when that money comes, "Go ahead and pay more money against it," says Hanzimanolis. At that point, the smart buyer starts making payments equivalent to a 30-year or 15-year note. But, similar to handling credit cards, many consumers mean well but don't follow through.
Some loans also carry prepayment penalties through the first few years of the note. Since you're already not building much equity, this can make it more expensive to refinance in the early years of the loan.
Since buyers often look at a 50-year loan as a temporary solution, refinancing or resale before the home is paid off is a virtual certainty. Weigh that going into the deal, too.
Analyze how a shortage of equity could affect refinancing. Unless you pay extra money toward the equity or see a dramatic increase in the value of your house, refinancing will probably be a lot like simply buying the same house all over again.
Remember, the length of the 50-year loan also means it takes many more years before meaningful equity buildup kicks in. With almost any conventional mortgage, you pay more interest and less principal during the earliest years of the loan. Because you're paying significantly less principal each year than with a 15-year or 30-year mortgage, you really don't want to use it for a property that you're going to keep less than five to 10 years, says Ron Phipps, broker with Phipps Realty in Warwick, R.I.
With a 50-year loan, you can't count on pulling out a chunk of equity when you go to the closing table to refinance, which means you may have to come up with closing fees and other costs out of your own pocket.
Prime candidates for 50-year mortgages would be professionals who don't have the current income to qualify for their dream homes but are anticipating significant increases in their earnings. A longer term, where buyers are paying mostly interest, allows them to get the house now.
In many cases, that goes against conventional financial wisdom, which holds that counting on — and living off — future earnings is often a bad idea.
"It's a very dangerous situation," Ramsey says.
February 11, 2007
NORTH PALM BEACH, Fla. — Get cold sweats just contemplating 30 straight years of mortgage payments? You ain't seen nothing yet.
Home buyers shopping for a loan might notice a new kid on the block: the 50-year mortgage.
Some mortgage lenders see the idea as an alternative to "interest only" loans and a tool to shrink those monthly obligations — especially in high-ticket areas such as California.
"It's hard for some people to conceive this is happening," says John Marcell, immediate past president of the California Association of Mortgage Brokers. "But it makes a lot of sense. You'll be able to buy a more expensive home than you could qualify for otherwise."
But some consumer advocates and financial professionals worry that buyers who need to stretch payments over 20 more years are coveting too much house.
"It's definitely a bad idea," says Dave Ramsey, author of "The Total Money Makeover," and host of a nationally syndicated radio show on finances. "The family is still not building net worth," he says. "It's still just keeping the family in debt."
Alex Diaz Jr., vice president of Statewide Bancorp Inc. of Rancho Cucamonga, Calif., says the 50-year plan is better for the borrower than an interest-only or payment-option adjustable-rate mortgage. In an interest-only mortgage, the minimum monthly payment means zero is being applied to the outstanding balance.
A payment-option ARM can be worse — sometimes the minimum monthly payment doesn't even cover the interest accrued that month. You could make a minimum payment one month and find the next month that the outstanding balance grew.
While the 50-year fully amortized mortgage certainly means a slower rate of repaying the balance, at least the balance is being reduced, not remaining stagnant or increasing.
But Allen Fishbein, director of housing and credit policy for the Consumer Federation of America, disagrees. "Some might say it's more akin to leasing than buying," he says, because the percentage of the payment applied to principal is very low. It's not the product for someone who wants a home for traditional reasons, such as creating a nest egg, he says.
Currently, you're not likely to find 50-year home loans at your bank or credit union. Most of the loans are coming from mortgage brokers, says Marcell. "We're starting to see several of the wholesale companies offering that now," he says.
And while they can fit certain buyers in special circumstances, "I don't think the average consumer will benefit from a 50-year mortgage, because of all the interest over the long term," says George Hanzimanolis, president-elect of the National Association of Mortgage Brokers.
Rates for 50-year mortgages tend to be about 25 to 50 basis points higher than the rates on 30-year fixed-rate mortgages, Marcell says. A basis point is one-hundredth of a percent.
Critics contend that, for all practical purposes, a 50-year mortgage isn't much different from an interest-only loan.
"It's basically another way of saying 'an interest-only mortgage,' " says Ramsey. "You're going to be stuck forever in that thing — it's quicksand."
While the monthly payment is lower, you'll also pay more interest.
The monthly payment — not including taxes and insurance — would be $148 lower with the 50-year mortgage, but the entire $148 saved would be taken away from principal. Over the course of the 30-year mortgage the total interest paid would be $231,676, but with the 50-year loan the total interest would be a whopping $431,685 — $200,000 more. Over the 20-year difference in the loans, that would mean paying an average of $10,000 more per year in interest to get monthly payments lowered by $148, or $1,776 a year.
Not all 50-year loans are the same. While some loans offer a fixed rate for 50 years, others offer options that include a fixed rate for the first three or five years, then switch to an adjustable rate. Still other versions amortize the principal over 50 years but require a balloon payment after 30 years for the balance of the loan.
California-based Statewide Bancorp started offering 50-year loans last year, with fixed-rate, as well as ARM, versions. Both types run for 50 years with no balloon payments required. So far, more than 1,000 borrowers have opted for the mortgages, says Diaz, the institution's executive vice president.
Borrowers are likely to "be looking for a short-term solution, knowing they want to be using this as a starter home," says Diaz.
"In a state like California, we're having housing become more and more unaffordable," he says, so borrowers are looking at longer mortgages — and smaller payments — to help them get into the market.
Proponents of the product warn that it's not for everyone. "It doesn't fit everyone's bill," says Marcell.
Buyers who consider these products should "step back from the buyer's frenzy," he says. "Ask yourself: Does it make sense? What are the pros and cons? What's the best thing that could happen to me? What's the worst thing?"
Because you pay so little toward the principal, it's not a good choice for someone who might want to move within a few years. "I like to think these people are going to stay with that particular product for at least five years," says Marcell.
A buyer should be anticipating some sort of increase in income, he says.
But when that money comes, "Go ahead and pay more money against it," says Hanzimanolis. At that point, the smart buyer starts making payments equivalent to a 30-year or 15-year note. But, similar to handling credit cards, many consumers mean well but don't follow through.
Some loans also carry prepayment penalties through the first few years of the note. Since you're already not building much equity, this can make it more expensive to refinance in the early years of the loan.
Since buyers often look at a 50-year loan as a temporary solution, refinancing or resale before the home is paid off is a virtual certainty. Weigh that going into the deal, too.
Analyze how a shortage of equity could affect refinancing. Unless you pay extra money toward the equity or see a dramatic increase in the value of your house, refinancing will probably be a lot like simply buying the same house all over again.
Remember, the length of the 50-year loan also means it takes many more years before meaningful equity buildup kicks in. With almost any conventional mortgage, you pay more interest and less principal during the earliest years of the loan. Because you're paying significantly less principal each year than with a 15-year or 30-year mortgage, you really don't want to use it for a property that you're going to keep less than five to 10 years, says Ron Phipps, broker with Phipps Realty in Warwick, R.I.
With a 50-year loan, you can't count on pulling out a chunk of equity when you go to the closing table to refinance, which means you may have to come up with closing fees and other costs out of your own pocket.
Prime candidates for 50-year mortgages would be professionals who don't have the current income to qualify for their dream homes but are anticipating significant increases in their earnings. A longer term, where buyers are paying mostly interest, allows them to get the house now.
In many cases, that goes against conventional financial wisdom, which holds that counting on — and living off — future earnings is often a bad idea.
"It's a very dangerous situation," Ramsey says.
February 11, 2007
When It's Home Sweet Cul-De-Sac
From: Providence Journal Date: 1/22/2007
Jan. 22--Jennifer Goldstein bought a house on a cul-de-sac in North Kingstown with her husband, Adam, in 2003, when Adam was working for Amgen. Adam recently took a job with another biotechnology firm in southern California. Their house went on the market last month.
The Goldsteins have two children, 6 and 2, and their first priority is to find a community with good public schools. The second priority is to find a safe, friendly neighborhood, and Jennifer Goldstein said she finds herself once again drawn to cul-de-sacs.
During a recent house-hunting trip in California, Goldstein found plenty of cul-de-sacs in the suburbs near San Diego, and she noticed that the prices go up as you go "further in the sac." She said that while prices are generally higher, many of the houses she has seen in California have smaller lots than those typically seen in Rhode Island.
Why does she prefer cul-de-sac neighborhoods? They have "less traffic, and more security," Goldstein said. If 10 houses are placed around a circle, she said, "you have ten houses looking at each other." There happen to be 18 houses in her North Kingstown cul-de-sac, Woodmist Way, and "we're away right now. If a moving van pulled up to our house, there would be at least 15 calls to the police" in a matter of minutes.
Goldstein had her second baby, a daughter, one year after moving to Woodmist Way, and out of the 17 neighboring households, "there were only two people that didn't come by with a gift or a card."
"You get that sense of community" in a cul-de-sac, Goldstein said. "You get to know your neighbors."
They may be favored in suburbia, especially with young parents, but to some advocates of Smart Growth and New Urbanism, traditional cul-de-sac developments feed sprawl and promote inefficient use of limited open spaces and municipal resources. Concerned about the rapid development of land, and wishing to encourage sustainable growth, Rhode Island's Division of Planning has recommended that municipalities "discourage cul-de-sac street patterns in favor of interconnected streets that encourage walking."
Critics say many suburban housing developments, with large house lots in isolated areas, also promote reliance on automobiles as the primary means of transportation. New Urbanism is a movement that champions walkable, densely populated "multi-use" neighborhoods that offer a mix of housing types in addition to stores, schools, libraries, offices and other public spaces.
Rhode Island offers generous historic tax credits for developers and homeowners to encourage renovation in older urban and village centers. Many decaying mill sites across the state have been targeted for redevelopment as a result, and many of these projects are "multi-use" and are generally supported by groups such as Grow Smart Rhode Island, an anti-sprawl public interest group.
The state planning division's "Land Use 2025" report, issued last year, outlines state land use policies and plans; many of the concerns and goals in the plan refer to Smart Growth and New Urbanist principles.
Yet in many of Rhode Island's suburban towns, the forces of post-Word War II sprawl grind on unabated. Builders keep building cul-de-sacs, they say, because buyers like them so much.
"We find families really like that style of neighborhood. Cars don't come buzzing through it. Through traffic doesn't exist. There's an appearance, and probably a reality, of safety," said builder Alex Mitchell, of Meridian Custom Homes in Providence.
"Cul-de-sacs really create such great neighborhoods ... because there isn't through traffic," said Realtor Ron Phipps, of Phipps Realty. He said many buyers also find cul-de-sacs more aesthetically pleasing than grid street patterns. Phipps said he recently met with a buyer, a parent who was looking for a house with a "good-sized, level lot" so her sons could play ball outside on her lawn. She also preferred a cul-de-sac, Phipps said, so the boys could play safely near the street.
"We have a great deal of land that comes in with a cul-de-sac plan," said Merrick Cook, interim planning director in Cumberland. Town regulations limit the length of a cul-de-sac to 600 feet, and anything longer requires a waiver from the Planning Board.
"The Planning Board is fairly reluctant to grant waivers," Cook said. "Accessibility is really a big concern."
Most communities require room for garbage collection and public safety vehicles to turn around. And some municipalities, including Cumberland and Woonsocket, limit the overall length of cul-de-sacs. "At a certain point, a long dead-end street is a public safety issue," said Joel D. Mathews, Woonsocket's planning director.
The location and configuration of many subdivisions are such that they can't be connected to existing neighborhoods, Cook said. Issues with wetlands, and geographic and topographic features, can limit options. Builders find "you have to take whatever access ... will make it work, and oftentimes, that's a cul-de-sac."
"For small parcels that cannot easily be connected to other streets, sometimes [cul-de-sacs] are the only way to go," Bristol planner Ed Tanner agreed.
"We try to discourage them if possible," Cook said. "They are accepted if they meet certain design standards."
"In rural areas, cul-de-sacs can be a good use of land," said David Schweid, interim town planner in Charlestown and a part-time town planner in Exeter. They can be particularly well-suited to small subdivisions with 8 to 16 lots, he said, but they are often less desirable for larger subdivisions. "There are very valid planning reasons why you don't want a lot of cul-de-sacs," Schweid said, "but in a rural area they're not always a bad idea."
Schweid pointed to the ideas and designs of conservation planner and author Randall G. Arendt, a Narragansett resident, who has presented "real alternatives" for suburban and rural cluster developments that combine housing with open space (see related story).
Mitchell said building regulations vary from town to town, and some municipalities are more open than others to creative development ideas.
"I think they're a great idea," Mitchell said of multi-use developments, "but it can be really tough to pull off due to local zoning regulations." Mitchell pointed to South Kingstown as an example of a community that is more open to new concepts. He recently completed a 38-lot subdivision there, and exceptions to the regulations were allowed to save more trees and leave more space untouched, he said.
Phipps said zoning rules are "well-intentioned" but often "preclude creativity" for builders and developers. "You end up with a formula that makes doing something creative with land a real challenge," he said.
Despite a cooling in the residential real estate market last year, Rhode Island's population density and small size will ensure continued development pressures.
Mathews said Woonsocket is "about 90 percent built out," but there were 60 single-family houses built in the city last year. "There has been quite a bit of interest in the few scraps of land that are left," he said.
Jan. 22--Jennifer Goldstein bought a house on a cul-de-sac in North Kingstown with her husband, Adam, in 2003, when Adam was working for Amgen. Adam recently took a job with another biotechnology firm in southern California. Their house went on the market last month.
The Goldsteins have two children, 6 and 2, and their first priority is to find a community with good public schools. The second priority is to find a safe, friendly neighborhood, and Jennifer Goldstein said she finds herself once again drawn to cul-de-sacs.
During a recent house-hunting trip in California, Goldstein found plenty of cul-de-sacs in the suburbs near San Diego, and she noticed that the prices go up as you go "further in the sac." She said that while prices are generally higher, many of the houses she has seen in California have smaller lots than those typically seen in Rhode Island.
Why does she prefer cul-de-sac neighborhoods? They have "less traffic, and more security," Goldstein said. If 10 houses are placed around a circle, she said, "you have ten houses looking at each other." There happen to be 18 houses in her North Kingstown cul-de-sac, Woodmist Way, and "we're away right now. If a moving van pulled up to our house, there would be at least 15 calls to the police" in a matter of minutes.
Goldstein had her second baby, a daughter, one year after moving to Woodmist Way, and out of the 17 neighboring households, "there were only two people that didn't come by with a gift or a card."
"You get that sense of community" in a cul-de-sac, Goldstein said. "You get to know your neighbors."
They may be favored in suburbia, especially with young parents, but to some advocates of Smart Growth and New Urbanism, traditional cul-de-sac developments feed sprawl and promote inefficient use of limited open spaces and municipal resources. Concerned about the rapid development of land, and wishing to encourage sustainable growth, Rhode Island's Division of Planning has recommended that municipalities "discourage cul-de-sac street patterns in favor of interconnected streets that encourage walking."
Critics say many suburban housing developments, with large house lots in isolated areas, also promote reliance on automobiles as the primary means of transportation. New Urbanism is a movement that champions walkable, densely populated "multi-use" neighborhoods that offer a mix of housing types in addition to stores, schools, libraries, offices and other public spaces.
Rhode Island offers generous historic tax credits for developers and homeowners to encourage renovation in older urban and village centers. Many decaying mill sites across the state have been targeted for redevelopment as a result, and many of these projects are "multi-use" and are generally supported by groups such as Grow Smart Rhode Island, an anti-sprawl public interest group.
The state planning division's "Land Use 2025" report, issued last year, outlines state land use policies and plans; many of the concerns and goals in the plan refer to Smart Growth and New Urbanist principles.
Yet in many of Rhode Island's suburban towns, the forces of post-Word War II sprawl grind on unabated. Builders keep building cul-de-sacs, they say, because buyers like them so much.
"We find families really like that style of neighborhood. Cars don't come buzzing through it. Through traffic doesn't exist. There's an appearance, and probably a reality, of safety," said builder Alex Mitchell, of Meridian Custom Homes in Providence.
"Cul-de-sacs really create such great neighborhoods ... because there isn't through traffic," said Realtor Ron Phipps, of Phipps Realty. He said many buyers also find cul-de-sacs more aesthetically pleasing than grid street patterns. Phipps said he recently met with a buyer, a parent who was looking for a house with a "good-sized, level lot" so her sons could play ball outside on her lawn. She also preferred a cul-de-sac, Phipps said, so the boys could play safely near the street.
"We have a great deal of land that comes in with a cul-de-sac plan," said Merrick Cook, interim planning director in Cumberland. Town regulations limit the length of a cul-de-sac to 600 feet, and anything longer requires a waiver from the Planning Board.
"The Planning Board is fairly reluctant to grant waivers," Cook said. "Accessibility is really a big concern."
Most communities require room for garbage collection and public safety vehicles to turn around. And some municipalities, including Cumberland and Woonsocket, limit the overall length of cul-de-sacs. "At a certain point, a long dead-end street is a public safety issue," said Joel D. Mathews, Woonsocket's planning director.
The location and configuration of many subdivisions are such that they can't be connected to existing neighborhoods, Cook said. Issues with wetlands, and geographic and topographic features, can limit options. Builders find "you have to take whatever access ... will make it work, and oftentimes, that's a cul-de-sac."
"For small parcels that cannot easily be connected to other streets, sometimes [cul-de-sacs] are the only way to go," Bristol planner Ed Tanner agreed.
"We try to discourage them if possible," Cook said. "They are accepted if they meet certain design standards."
"In rural areas, cul-de-sacs can be a good use of land," said David Schweid, interim town planner in Charlestown and a part-time town planner in Exeter. They can be particularly well-suited to small subdivisions with 8 to 16 lots, he said, but they are often less desirable for larger subdivisions. "There are very valid planning reasons why you don't want a lot of cul-de-sacs," Schweid said, "but in a rural area they're not always a bad idea."
Schweid pointed to the ideas and designs of conservation planner and author Randall G. Arendt, a Narragansett resident, who has presented "real alternatives" for suburban and rural cluster developments that combine housing with open space (see related story).
Mitchell said building regulations vary from town to town, and some municipalities are more open than others to creative development ideas.
"I think they're a great idea," Mitchell said of multi-use developments, "but it can be really tough to pull off due to local zoning regulations." Mitchell pointed to South Kingstown as an example of a community that is more open to new concepts. He recently completed a 38-lot subdivision there, and exceptions to the regulations were allowed to save more trees and leave more space untouched, he said.
Phipps said zoning rules are "well-intentioned" but often "preclude creativity" for builders and developers. "You end up with a formula that makes doing something creative with land a real challenge," he said.
Despite a cooling in the residential real estate market last year, Rhode Island's population density and small size will ensure continued development pressures.
Mathews said Woonsocket is "about 90 percent built out," but there were 60 single-family houses built in the city last year. "There has been quite a bit of interest in the few scraps of land that are left," he said.
13 tips for selling your home in winter
By Dana Dratch • Bankrate.com
What makes selling a home more stressful? Selling it in the middle of winter.
The lawn is brown, the weather is usually bad and, unlike the longer days of summer, you have less time to show it off during daylight hours.
But not everyone has the luxury of waiting until the traditional spring or summer home buying season to plant that "for sale" sign, and while it's true that in most areas you'll probably have fewer buyers during the winter, you will have less competition from other sellers.
That makes staging -- the concept of showing your house at its best -- even more important.
Be prepared to put a little effort into it. "It's more difficult to make something look really appealing this time of year," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. If you do it right, you can really make your house stand out.
Staging a home
When the snow is swirling and would-be buyers are scarce, you need to take those extra steps to get your home sold. So put another log on the fire and curl up with these suggestions on how to make your home more attractive for sale in the winter.
13 tips for selling your home in winter
1. Keep snow and ice at bay. The top tip from Realtors: If the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. Just like trimming the lawn in the summer, you want to make the home look like it's been maintained. If you're away frequently or live in an area that's subject to bad weather, it can pay to hire a service to regularly salts or shovels the driveway and sidewalks.
2. Warm it up. If you're showing during the winter, think "warm, cozy and homey," says Ken Libby, owner of Stowe Realty in Stowe, Vt., and a regional vice president of the National Association of Realtors.
Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. "Sellers like to turn the temperature down because of heat costs," says David Ledebuhr, president and owner of Musselman Realty in East Lansing, Mich., and a regional vice president of the National Association of Realtors. "But buyers who come in and aren't comfortable won't stay long."
If you have a gas fireplace, turning it on right before the tour can give the house "a little ambience," says Libby.
With a wood-burning fireplace, you've got to be a little more careful. If the house is vacant, don't chance it. If you're still living there and will be there during the tour, it can be a nice touch.
Many times, sellers leave right before the agent and prospective buyers arrive. In that case, adjust the heat to a comfortable temperature and have the hearth set for a fire. Buyers feel the warmth and see the potential, and you don't have to worry about safety concerns.
3. Take advantage of natural light. "Encourage showing during the high-daylight hours," says Ledebuhr. At this time of year, "if you show after work, you're totally in the dark."
Make the most of the light you do have. Have the curtains and blinds cleaned and open them as wide as possible during daytime showings. Clean all the lamps and built-in fixtures, and replace the bulbs with the highest wattage that they will safely accommodate. Before you show the house, turn on all the lights.
4. Get the windows washed. "Buyers act on the first impression," says Ledebuhr. Windows are one thing that many sellers don't even consider. In winter that strong southern light can reveal grime and make it look like the home hasn't been well-maintained.
5. Play music softly in the background. To create a little atmosphere, tune the radio to the local classical station. Turn it down so that you just hear it quietly in the background. "It's soothing," says Libby, who finds that soft classical music tends to have the most appeal to buyers. "I think people tend to stay around a little longer and look a little longer."
6. Make it comfortable and cozy. Set the scene and help the buyers see themselves living happily in this house. Consider things such as putting a warm throw on the sofa or folding back the thick comforter on the bed. Tap into "the simple things this time of year that make you feel like you're home," says Phipps.
7. Emphasize winter positives. Is your home on a bus route or some other vital service that means it's plowed or de-iced regularly in bad weather? Be sure to mention that to the buyers.
8. Set up timers. You want your home to look warm and welcoming whenever prospective buyers drive past. But you're not home all the time, so put indoor and outdoor lights on timers, says Phipps. Look at the outside lighting around the door. Is there enough illumination to make it inviting? If not, either get the fixtures changed or have new ones added.
9. Make it festive. Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party, says Phipps. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider or even chilled bottles of water.
"First impressions are so powerful," says Phipps. "If it looks like you're expecting me and greeting me as company, that's a powerful impact."
10. Give the home a nice aroma. The No. 1 favorite? "Chocolate chip cookies," says Libby. "Just about everybody likes that smell."
Other popular scents: cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.
"But don't overdo it, either," says Ledebuhr. Scented candles in every room or those plug-in air fresheners can leave buyers wondering what you're trying to mask.
Watch the bad smells, too. Pet smells, smoke and musty odors can cling to curtains and carpets. Ask your real estate agent or a friend to give it a sniff test. Then clean the house, air it out and replace drapes, carpets or rugs before you show it.
11. Protect your investment. Some sellers (or their agents) will ask buyers to either remove shoes or slip on paper "booties" over their footwear before touring the house. Many buyers like that, says Phipps. It indicates a "pride of ownership and meticulousness that resonates with buyers," he says.
12. Use the season to your advantage. While the holidays are over (and the Christmas and Hanukkah stuff should come down), you can still use winter wreaths and dried arrangements around the door to give interest. "Anything seasonally appropriate is fun," says Phipps.
In the winter, with the leaves off the trees, you might also have a nice view that isn't as apparent in the spring and summer months. It's a great time to sell waterfront properties, says Phipps. "You can see the views better this time of year."
13. Consider the area. In some parts of the country, such as ski areas or warmer regions where the snow birds flock, winter weather can actually be a selling point. "We're right in the middle of our selling season," says Libby. "It's not always spring and summer."
Posted on Bankrate 1.11.2007
What makes selling a home more stressful? Selling it in the middle of winter.
The lawn is brown, the weather is usually bad and, unlike the longer days of summer, you have less time to show it off during daylight hours.
But not everyone has the luxury of waiting until the traditional spring or summer home buying season to plant that "for sale" sign, and while it's true that in most areas you'll probably have fewer buyers during the winter, you will have less competition from other sellers.
That makes staging -- the concept of showing your house at its best -- even more important.
Be prepared to put a little effort into it. "It's more difficult to make something look really appealing this time of year," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. If you do it right, you can really make your house stand out.
Staging a home
When the snow is swirling and would-be buyers are scarce, you need to take those extra steps to get your home sold. So put another log on the fire and curl up with these suggestions on how to make your home more attractive for sale in the winter.
13 tips for selling your home in winter
1. Keep snow and ice at bay. The top tip from Realtors: If the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. Just like trimming the lawn in the summer, you want to make the home look like it's been maintained. If you're away frequently or live in an area that's subject to bad weather, it can pay to hire a service to regularly salts or shovels the driveway and sidewalks.
2. Warm it up. If you're showing during the winter, think "warm, cozy and homey," says Ken Libby, owner of Stowe Realty in Stowe, Vt., and a regional vice president of the National Association of Realtors.
Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. "Sellers like to turn the temperature down because of heat costs," says David Ledebuhr, president and owner of Musselman Realty in East Lansing, Mich., and a regional vice president of the National Association of Realtors. "But buyers who come in and aren't comfortable won't stay long."
If you have a gas fireplace, turning it on right before the tour can give the house "a little ambience," says Libby.
With a wood-burning fireplace, you've got to be a little more careful. If the house is vacant, don't chance it. If you're still living there and will be there during the tour, it can be a nice touch.
Many times, sellers leave right before the agent and prospective buyers arrive. In that case, adjust the heat to a comfortable temperature and have the hearth set for a fire. Buyers feel the warmth and see the potential, and you don't have to worry about safety concerns.
3. Take advantage of natural light. "Encourage showing during the high-daylight hours," says Ledebuhr. At this time of year, "if you show after work, you're totally in the dark."
Make the most of the light you do have. Have the curtains and blinds cleaned and open them as wide as possible during daytime showings. Clean all the lamps and built-in fixtures, and replace the bulbs with the highest wattage that they will safely accommodate. Before you show the house, turn on all the lights.
4. Get the windows washed. "Buyers act on the first impression," says Ledebuhr. Windows are one thing that many sellers don't even consider. In winter that strong southern light can reveal grime and make it look like the home hasn't been well-maintained.
5. Play music softly in the background. To create a little atmosphere, tune the radio to the local classical station. Turn it down so that you just hear it quietly in the background. "It's soothing," says Libby, who finds that soft classical music tends to have the most appeal to buyers. "I think people tend to stay around a little longer and look a little longer."
6. Make it comfortable and cozy. Set the scene and help the buyers see themselves living happily in this house. Consider things such as putting a warm throw on the sofa or folding back the thick comforter on the bed. Tap into "the simple things this time of year that make you feel like you're home," says Phipps.
7. Emphasize winter positives. Is your home on a bus route or some other vital service that means it's plowed or de-iced regularly in bad weather? Be sure to mention that to the buyers.
8. Set up timers. You want your home to look warm and welcoming whenever prospective buyers drive past. But you're not home all the time, so put indoor and outdoor lights on timers, says Phipps. Look at the outside lighting around the door. Is there enough illumination to make it inviting? If not, either get the fixtures changed or have new ones added.
9. Make it festive. Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party, says Phipps. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider or even chilled bottles of water.
"First impressions are so powerful," says Phipps. "If it looks like you're expecting me and greeting me as company, that's a powerful impact."
10. Give the home a nice aroma. The No. 1 favorite? "Chocolate chip cookies," says Libby. "Just about everybody likes that smell."
Other popular scents: cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.
"But don't overdo it, either," says Ledebuhr. Scented candles in every room or those plug-in air fresheners can leave buyers wondering what you're trying to mask.
Watch the bad smells, too. Pet smells, smoke and musty odors can cling to curtains and carpets. Ask your real estate agent or a friend to give it a sniff test. Then clean the house, air it out and replace drapes, carpets or rugs before you show it.
11. Protect your investment. Some sellers (or their agents) will ask buyers to either remove shoes or slip on paper "booties" over their footwear before touring the house. Many buyers like that, says Phipps. It indicates a "pride of ownership and meticulousness that resonates with buyers," he says.
12. Use the season to your advantage. While the holidays are over (and the Christmas and Hanukkah stuff should come down), you can still use winter wreaths and dried arrangements around the door to give interest. "Anything seasonally appropriate is fun," says Phipps.
In the winter, with the leaves off the trees, you might also have a nice view that isn't as apparent in the spring and summer months. It's a great time to sell waterfront properties, says Phipps. "You can see the views better this time of year."
13. Consider the area. In some parts of the country, such as ski areas or warmer regions where the snow birds flock, winter weather can actually be a selling point. "We're right in the middle of our selling season," says Libby. "It's not always spring and summer."
Posted on Bankrate 1.11.2007
Wednesday, February 14, 2007
2006: A Normal Market
The Multiple Listing Service and the Rhode Island Association of Real Estate have just released the attached statistics for 2006. The numbers demonstrate the strength and depth of the Real Estate Market in Rhode Island.
While value may ebb and flow, the change is minor. Between 2005 and 2006 the average single family home had virtually no change in median price: $282,900 in 2005 to $282,500 in 2006. Median Condominium price showed a significant increase. It is true that the number of sales had dropped significantly, but the market remains consistent and robust. In short, real estate remains a wise and prudent, long term investement.
View Statistics Here
While value may ebb and flow, the change is minor. Between 2005 and 2006 the average single family home had virtually no change in median price: $282,900 in 2005 to $282,500 in 2006. Median Condominium price showed a significant increase. It is true that the number of sales had dropped significantly, but the market remains consistent and robust. In short, real estate remains a wise and prudent, long term investement.
View Statistics Here
Subscribe to:
Posts (Atom)