This Month in Real Estate - Video

How To Go Green and Increase Your Home’s Resale Value – Water

Post by: Adam Waks of the Andrew Scott Group and AdamWaks.com

Right after increasing energy efficiency, the easiest (and cheapest) way to green your home and increase your property value at the same time is to cut your water consumption. The average US resident uses about 150 gallons of water per day, and the average American household’s water bill each month can run from $35 to over $100 [source: LeakBird.com]. Fortunately, with the aid of a few simple, low cost fixes, you can cut that water bill anywhere from 25-75%. Showing a potential buyer that you have already taken the steps to make your property as water efficient as possible without compromising on luxury can appeal to both their hearts and their pocketbooks.

The first thing to look for when trying to increase your water efficiency is outright waste. Take a walk around your house and inspect all of your faucets and showerheads. Are any of them leaking? Even the tiniest leak from a simple faucet can add up to 5 gallons of water a day and hundreds of wasted dollars over the lifetime of your property. Why throw that money away when all it takes to fix is two minutes with a wrench? If you notice any leaks that can’t be fixed by tightening the faucet, call in a plumber. It might cost you a few dollars now, but you will more than make up for it in the long run.

Once you’re sure there are no leaks, check to see if all of your faucets have aerators installed and that all of your showerheads use low flow technology. Serious improvements in water flow technology over the past few years have led to a whole new line of low flow devices that perform as well if not better than their high flow counterparts. For just a few cents for aerators and less than $20 for showerheads, you can cut your shower and faucet water usage by as much as 40% [water-conservation].

Next, walk around your property and check on all of your toilets. Are any of them running? If not, give them a flush and see how long before they stop running. If it takes your toilet longer than fifteen seconds to shut off, you are literally flushing money (and water) down the toilet. In most cases, all it takes to fix this problem and cut your water bill drastically is some fussing with the mechanics in the tank. Check out this great wikihow article for a simple step-by-step guide.

Finally, as long as were talking toilets, lets remember that in the average American home, toilets account for almost 30% of all water usage [source: EPA]. The best way to regulate the amount of water your toilet uses is to get a dual flush toilet. A dual flush toilet is exactly what it sounds like – the toilet has two flush settings to choose from depending on what you used it for. For a family of four, dual flush toilets can save as much as 4 gallons of water per flush and up to $90 a year [source: hubpages]. You can purchase a dual flush toilet conversion kit at your local hardware store for less that $30.

Check back in next month for tips on how to green your landscaping.

Important Change to FHA Planned for October

Post by: David Setti of Turnkey Mortgage Solutions

The FHA has announced that come early October, they will be simultaneously lowering their up front mortgage insurance fee from 2.25% to 1.25% as well as increasing their yearly mortgage insurance premium from .55% to .9%. What will the impact be on new home-buyers? There will be an overall increase in monthly payments.

Let’s put these numbers into a real world example. A client is buying a $400,000 property, using an FHA loan and planning on putting down 3.5%, or $14,000. This leaves a base loan amount of $386,000. The current upfront mortgage insurance premium of 2.25%, which equates to $8,685, when added to the loan amount, offers a total loan amount of $394,685. Assuming an interest rate of 4.5% and a yearly mortgage insurance premium of .55%, the total monthly payment (not including property tax or home-owner’s insurance) would be $2,175.43.

Once the proposed changes take place, the total monthly payment, assuming the same purchase price, down payment and rates would be $2,267.63. This constitutes a difference of almost $100 per month.

While, for most clients, this will be nothing more than an annoyance and will not disallow for a qualification that would otherwise be obtainable. However, there are some clients whose purchasing power will be reduced by this change.

If you have already been pre-approved by a lender, do yourself a favor; confirm how and if this change will impact you approval.

For more about the San Jose Real Estate Blog post, please contact the Andrew Scott Group 408-982-6636

Home Maintenance Tips

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

An ounce of prevention goes a long way when it comes to maintaining your home. Taking the time to take care of your home now can save you thousands down the road. Here are a few tips:

• Heating and cooling systems: replace or clean filters monthly to keep the system working smoothly. Check any accessible belts and hoses for tautness, tears, or wear.

• At the beginning of heating season and every other month during the cold months, use creosote cleaners on your wood-burning chimney or fireplace, to prevent this dangerous buildup.

• Check chimneys and fireplaces for cracks. You should have these periodically inspected by a professional to detect minor problems.

• Keep the gutters and your roof clean and free of debris and leaf build up. Check for proper fastening and attachment to the fascia of the home.

• Check for termite or carpenter bee damage, and contact an inspector and exterminator immediately if either of these pests are suspected

• Check and replenish the caulking around the perimeter of the foundation Look for cracks where ceilings and walls join.

• Inspect the condition of wiring in exposed areas such as the attic, basement and crawl spaces.

• Check faucets, plumbing joints, and toilets for faulty parts, low pressure, and leaks.

August Mid-Month Market Outlook

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

Housing activity continues to remain above year-ago levels despite some setbacks resulting from the now-expired tax credit. Improved stability in home prices with similar levels of distressed properties seen last year offers a hopeful sign the market is holding its ground. However, the economy still has a considerable way to go to achieve its full recovery.

Overview

Consumers are saving more and being picky about how they spend their money. While a higher savings rate means less spending in the near term, this is a positive sign that households are taking control of their finances to build some cushion that can be used to pay down debt and/or support future spending.Existing home sales marked the twelfth consecutive month of year-over-year increase in June. On a monthly basis, sales activity eased 5.1% from May. The moderation in home sales reflects “understandable swings as buyers responded to the tax credits,” according to Lawrence Yun, NAR chief economist. He anticipates such impact to show up in the next two months.


June’s median home price increased for thefourth consecutive month. Distressed homes, accounting for 32% of sales last month, continued holding home prices at highly affordable levels for the time being. While distressed sales hovered around the same level as a year ago, the gain in home prices is pointing to a sustained stability in the making.

Interest Rates

Mortgage rates set a new record low in July as consumer confidence softened and unemployment remained elevated. This presents a great opportunity for buyers and investors. Coupled with lowered home prices and a robust rental market, investors are finding their way to cash-flow opportunities. As recovery gains deeper roots, rates will need to rise to keep inflation in check. Rates below as of August 6.

Please send me an email or give me a call at 408-982-6636 if you want more information.

This Month in Real Estate - Video

Basics of Buying

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

If you are looking to buy a condo or buy a home in San Jose or the surrounding cities, there are many different strategies used. There are a number of factors that can affect success as well, including factors outside your control. Here are a few ways to make sure that you're on top of the game when you're looking for a great deal:

Educate Yourself: Learn the ins and outs of the real estate market. Being

familiar with market trends doesn't make you trendy, it makes you a well-informed person who can make an educated choice about investments.

Always Keep an Eye Out: Investing in real estate is something that can take time. Keep your eyes and ears out for potential investments, even when you're not actively looking. Likewise, when you are looking and aren't finding exactly what you want or need, expand the scope of your search.

Know Your Focus: For the most effective results, you'll need to narrow your focus down to a certain type of real estate. Some of your options include residential single-family homes, vacation homes, multi-family homes, commercial buildings, and industrial buildings. Learn which publications and agencies focus on the type of real estate you are most interested in.

Call (408) 982-6636 today to begin your home search or to buy investment property in the bay area. You can also email AndrewFlachner@kw.com

How To Go Green and Increase Your Home’s Resale Value – Energy

Post by: Adam Waks of the Andrew Scott Group and AdamWaks.com

Go Green and Increase Your Home’s Resale Value

Going green isn’t just good for the environment – it can also be good for your pocketbook. Multiple studies by the United States Green Building Council (USGBC) have shown that in addition to saving you money in the short term, simple, cost effective green additions to your home can pay huge dividends on the eventual sale price of your property. Over the next few weeks I’ll be posting articles to help you take advantage of some of these additions and add real lasting value to your home.

How To Go Green and Increase Your Home’s Resale Value – Energy Efficiency

According to a 2007 study by the National Association of Appraisers, every $1 a homeowner knocks off their yearly energy bill translates into a $20.73 increase in the resale value of their home [source: Eco-Smart]. Considering that the average Americans annual energy bill runs somewhere around $2,200, that leaves a lot of low hanging fruit you can use to increase your property value [source: Energy Star].

There are lots of ways to reduce your energy bills, but sometimes the simplest and cheapest are actually the most effective. Before you do anything drastic like buy new windows or replace your central air/heating unit, try the simple step of re-caulking any places in your home where expensive heated or cooled air might be escaping. We’re talking windows, doorframes, cracks, and penetrations (for example, where cables or ducting come into your home). In fact, so much energy is wasted in the average home just from simple leaks like these that the USGBC estimates you could save as much as $100 A MONTH just from sealing them [source: USGBC].

The next simple, easy way to cut your energy bills and increase your property value is to replace all of your light bulbs with CFLs. CFLs have come a long way in the past few years, and gone are the days of ugly twisty bulbs that put out a light you can’t even read by. Nowadays, consumers have a wide range or choices concerning light frequency, shape and color, resulting in a much more satisfying experience. But most important, it will also save you big money: replacing just five incandescent bulbs in your home with CFLs can save you up to $100 a year [source: USGBC].

Finally, look into getting a programmable thermostat. A programmable thermostat works by regulating the temperature in your home based on a schedule you set. After all, why should you waste money heating or cooling your house when you aren’t in it? With a programmable thermostat, you set the temperature you want and the hours you’ll be home, and let the thermostat do the work. The best part is that these thermostats deliver savings without sacrificing comfort, because the thermostat will have your house back at the temperature you want before you even walk through your door. And we’re talking serious savings here: the US Department of Energy estimates that using a $40 programmable thermostat can lower your heating bill by as much as 10-15% [source: USDE].

Can I Invest w/ No Money or Credit?

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

Question: Can I Invest in Real Estate w/ No Money or Credit?

As far as using none of your own money or credit, it is possible. Many skeptics shun these phrases because they are used inappropriately to sell the dream of real estate investing for thousands of dollars in book/seminar sales. The key is finding people who believe in your ability to generate a positive return on investment (ROI) to partner with.

If you provide most of the legwork (find the property, negotiate the deal, manage the property) then you can usually arrange to own a percentage of the property, even if you contribute little or no money to the project.

There are MANY laws and regulations you should be aware of when embarking on a joint venture and you should definitely do your research to mitigate your risk

You can begin to search for properties in California here: http://andrewscottgroup.com/search.asp or, if you're looking for commercial property, www.Loopnet.com is a great tool.

Source(s):

www.Loopnet.com, www.AndrewScottGroup.com, www.CanDoCondos.com

New Campbell Listing a "Must See"

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

You don't often see a 20+ year old home show as if it is new construction. 146 Sunnyside Avenue, in Campbell, is a must-see listing that boasts fine finishes and hardware, modern--and included--appliances, abundant storage, and eco-friendly building materials. Visit andrewscottgroup.com/sunnyside.asp for more details.

July Mid-Month Market Outlook

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

The U.S. housing market continues to benefit from the tax credit: home prices and sales remain above year-ago levels. As the summer progresses, however, the positive impact of government stimulus will wind down. Experts point to improved stability as a sign the market can likely hold its ground without further support from the government.

However, economists indicate that the key for the housing market through the end of 2010 will be job growth and a manageable level of distressed properties.The economy continues its journey to recovery with two steps forward and one step back, but the ground lost during the recession was great and the progress so far should be celebrated. The road to this particular recovery has been expected to be more prolonged than many previous recovery periods. Consumer confidence lowered from its high in May primarily due to a disappointing employment report, while the swelling federal deficit has also raised concern. Unmanageable debt levels have lead some European countries into their current situation, and Americans do not want to follow suit.A job bill that would have further extended unemployment benefits has not gotten off the ground due to concerns over the deficit. Sited as a top priority for the government, a financial overhaul bill continues to proceed though Congress. The bill’s goal is to protect the financial system and the average consumer from unnecessary risk and unsound lending practices in an effort to build a stronger system for the long-term stability of the U.S. economy.

Affordability Remains Positive

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

Affordability remains advantageous, supported by some of the lowest mortgage rates in decades as well as less expensive home prices. The home price-to-income ratio continues to remain well below the historical average of 25%. The ratio now stands at 14.9% (Freddie Mac, National Association of Realtors)

Welcome to San Jose's Premier Real Estate Blog

Post by: Andrew Flachner of the Andrew Scott Real Estate Group

Welcome to the San Jose Real Estate Blog on AndrewScottGroup.com. Each week we feature blog posts by industry experts.

From market outlook to current mortgage rates, this blog is designed to provide current and relevant information to the Silicon Valley's home buyers, home sellers, and real estate professionals.

If you would like to feature an article on our blog, please contact AndrewFlachner@kw.com.