Restarting this Blog....It has been too long!

Friends and followers of this blog, little did I realize that more than 1100 viewings have occurred on "Winning Home Advice."  That is encouraging to this author and good reason for restarting the blog.  I owe the followers an explanation of my long absence.  Since the last post, I have retired from my Director job at a large insurance company, have had two new grandbabies, had two major surgeries, have gotten married, and have moved to Rhea County....still within easy reach of my primary customers in Chattanooga but in better reach of new clients in the Greater Knoxville Area....and reaching all the way to Roane County.  My new husband and I have done a lot of traveling, and I have caught up and "grandbaby watching."

I am ready to settle back down now and plunge back in to real estate.  For your information, I now have access to MLS information all the way from Greater Chattanooga to Greater Knoxville....from Lookout Mountain to the Smoky Mountains and from Athens to Oak Ridge and in between.  This is beautiful historic country with rolling, productive farm lands and with sky scrapers looking out on bustling cities with interested tourists.  This includes top secret research in Oak Ridge and the new Volkswagen Plant with the newest technology in Chattanooga. 

We have magnificent institutions of higher learning in East Tennessee from the University of Tennessee system that includes UTC and a medical branch in Chattanooga to many proud institutions established by people of faith and private founders.  We also have a fine network of two-year colleges churning out vibrant graduates with skills to get high-paying jobs that are in demand in our area and outside for those who want to travel. 

From the Appalachians to the Cumberland Plateau with beautiful forests, hiking trails and streams of clear water to tourist attractions like the Chattanooga salt and fresh water Aquariums and the many lakes bustling with boats, pontoons, and para sailors; we have a way of life that any one would envy. 

We have the arts and playhouses located in our major cities like the Chattanooga Theatre Center and Clarence Brown Theatre in Knoxville and stretching out to smaller areas such as the Spring City Playhouse and the historic Cumberland County Playhouse in Crossville.

But I digress.  This blog is primarily for real estate purposes....for me to assist those with home buying, home selling, or home improvement interests.  I provide information on the latest news and ideas in these areas.  I am a Realtor®, and I enjoy staying in touch with those who read this column and offering insights from others who are experts in mortgage interest rates, home staging, or other areas to those who might want to buy, sell, or better stage their own homes - even if only for their own enjoyment.  So...here we go again.  I plan to post more regularly on this blog in the future.  Nice to see you again!

Hasta la vista.....Pat

Home Staging for a More Successful Sale; Eliminate Negatives

A March 2012 artile in Zillow's Blog published by "Inman News" on line offered home stagers' suggestions for what is seen as negatives to a successful sale of homes. Think about these items as you prepare your home for viewing so that negatives will not distract from the better features your home enjoys.

1. Fake plants. While some artificial plants look more real than others, most becomeo dust collectors over time. Living plants often cost less than fake ones and usually improve air quality rather than adding allergens.

2. Clutter. Clutter prevents buyers from seeing the character of a room and make rooms feel smaller. Group like items, and think of what you really need to keep. Could Goodwill or the Salvation Army use your clutter more than you?

3. Unmade beds and dirty windows. Remember that clean windows and made beds show better than sticky fingerprints and piles of bedcovers.

4. Wood paneled walls. Consider painting as one of the least expensive ways to update your home, especially if you are willing to properly prepare the room and put careful labor to bringhten up those dark, paneled walls.

5. Overly full kitchen cabinets. Clean out your kitchen cabinets from unneeded, unmatched items. Too many storage containers without matching lids, old empty coffee cans and similar items distract from the room and make the cabinet space appear too small.

6. Too many pet reminders. Some buyers like pets and others do not. Even if your pets are put away for home viewings, keep only the most needed pet items out. Put away other items to keep your home tidy. A neat food and water dish with no stray spills or scattered food on the floor is more impresseive than a mess. Lots of pet toys, pet blankets, and fur all over the furniture detract from the beauty of your home.

A home that appears "move in ready" and invites you into the room is more successful in keeping a buyer's interest than one that is cluttered, messy or dated. Use these simple tips from home stagers to prepare your home for viewings, to show off the features of your home, and to make the rooms and cabinets appear more spacious.

Mortgage Rates, Sales Prices and Other Housing News

Fixed mortgage rates remain at near record lows according to Freddie Mac, with the 30-year average at 3.9 percent for the week ended March 1. For the same week, 15-year fixed loans were 3.17 percent.

Meanwhile, the National Association of Realtors (NAR) members were polled recently for their confidence index and were upbeat to the tune of 67 percent predicting some price gains in housing. Agents who participated in the NAR survey reported a slight fall in median time on the market. Unfortunately a recent CoreLogic report showed almost 28 percent of homeowners were at or near underwater at the end of 2011.

Keep in mind that if you sell your home at a lower price than you hoped for, you can often make up the difference or more when you buy another home; particularly if you plan to buy a more expensive home.

Impacts on the 2011 Housing Industry

“RealtorMag” the on-line magazine published for the National Association of Realtors, listed issues impacting the housing industry in 2011. These were noted by Trulia’s chief economist, Jed Kolko in a “Time” magazine article. Some of these issues and their impacts, paraphrased, are:

1. Fallout from banks approving foreclosures without proper review procedures. The consequence is that banks now have to take extra precautions. Regulators and banks are working on a settlement that could improve the pace of foreclosures in 2012.
2. Natural disasters: tornadoes, floods and hurricanes pushed the National Flood Insurance Program into the spotlight. This program was still strapped financially from Hurricane Katrina. Thus, insurance premiums did not fully cover the Katrina disaster. Home owners living in flood-prone areas must now have flood insurance to get a mortgage. If the National Flood Insurance Program is not taken beyond its current May 2012 extension, the future of mortgages in areas prone to floods is uncertain.
3. Loans backed by Fannie Mae, Freddie Mac and FHA. Mortgage lenders are willing to charge lower rates for loans backed by Fannie and Freddie with a lower conforming loan limit. A smaller number of loans now qualify for this backing according.

Regardless of impacts to the housing industry in 2011, it is now 2012. The future is ahead. While understanding negative impacts on the past can help us plan for the future, it is time to look for new ways around obstacles to make the dreams of home buyers and home sellers come true.

Energy Efficient or Green Homes

A major expense squeezing homeowners today is heating and cooling cost. Although green upgrades are often expensive, their benefits can be large over time. Witness solar panels, double pane windows, and replacing appliances. All of these require sizable investments up front. But energy efficiency doesn't have to be expensive or labor intensive.

Small changes such as weather stripping can add up over time. Flourescent light bulbs can replace incandescent with minimal investment. Wrapping hot water heaters with insulation is inexpensive and requires little effort. In addition, the temperature on a hot water heater can be turned down to reduce waste and reduce accidental burns. Some laundry can be washed in cold or warm water rather than hot. Shorter showers will reduce hot water costs. Adjusting the heat and air thermostat 2-3 degrees can make a sizable difference in utility bills. These options require minimal effort and investment.

Check off energy efficient and environmentally-friendly changes one at a time, starting with the least expensive if you wish. You may be surprised at how quickly you see a difference in your utility bill. Most worthwhile and important changes in life take time. "Going green" may bring attractive results in your budget with minimal effort and investment. The extra money at the end of the month can provide the motivation you need to help you decide to use that bonus or income tax refund so you can install more costly green options, benefiting you and your neighbors.

Lending Down by Banks

According to data from the FDIC, in the year ending March 2011, loan volumes fell $260 billion. This is in the wake of deposits that grew by $300 billion and assets that have grown by $80 billion. In addition, profits were up by $12 billion.

Lawrence Yun, Chief Economist of the National Association of Realtors®, noted in a recent article that the economy is slowed when banks accumulate profit at the expense of lending.

Unemployment, underemployment, the trace deficit, tornadoes, and many factors can affect the economy; but banks have traditionally paid interest on deposits and loaned to depositors while investing to make additional profits.

Tight lending conditions can result in further price declines in home values, although prices in some areas are solid or heading up according to Yun.

The housing recovery and economic recovery can be sped up by banks returning to their roots of lending more when deposits are up. Although caution has been in order as more homeowners have defaulted, particularly when mortgages are under water, reducing lending to a trickle is not the way to keep the economy healthy. In the long term, what is good for America is good for the banks.

Another Big Dip in Home Prices

Home prices have dipped again, in the 3rd straight quarterly drop, down 5.1 percent from a year ago. According to a 5/31/2011 internet article on the CNNMoney website authored by Les Christie, prices are the lowest they have been since 2002. Prices are down almost 38 percent from the peak five years ago according to S&P/Case-Shiller national home price index.

A spokesman for S&P, David Blitzer, said the downward spiral in homes prices continues with no relief in sight.

Mr. Christie pointed out that the housing market went through a brief recovery in mid-2009, recovering nearly 5 percent of losses but resumed a slump after homebuyer tax credits expired last April.

Foreclosures and repossessed homes continue to flood the market, making it difficult for conventionally sold homes to compete and keep their value. This has a devastaing effect on new construction which typically contributes to economic recovery. But new construction frequently cannot compete with today's existing homes. The sale of existing homes does not contribute nearly as much to economic recovery as new home sales which bring with them jobs for construction workers.

And what is the good news? Now may be a good time for people who wish to buy a home at a reduced price or invest in existing homes they fix up for resale or utilize for rentals. Carefully evaluate your own circumstances with specialized professionals so you can make the most of your search and wisely use any investment dollars.