Lynn Sanborn's Blog

New Home Sales Edge Up!

Lynn Sanborn — Tue, 27 Dec 2011 10:00:00 GMT

NEW YORK (CNNMoney) -- The modest housing market winning streak continued as the Census Bureau reported Friday that sales of new homes rose again in November to an annualized rate of 315,000.

That was up 1.6% compared with the revised October rate of 310,000 and 9.8% higher than November 2010.

The good news followed other recent positive industry reports. November sales of existing homes rose 12% year-over-year; homebuilding spiked nearly 21% compared with 12 months ago; and mortgage rates hit record lows this week.

The sales hike was in line with expectations: The forecast from Briefing.com was for a 315,000 annualized rate.

The median price for a new home was $214,100 in November. Inventory shrank to 158,000 units, a 6-month supply at the current sales rate.

New homes sales are particularly important because they have a large impact on the overall economy, said Bob Denk, senior economist with the National Association of Home Builders.

"Inventories of new homes are very low: There's nothing on the shelf, so any increase in new home sales will translate directly into new housing starts," he said. "That means putting people back to work."

Residential housing construction has been a missing link in the slow economic recovery. Denk described conditions as still slow but "generating momentum." He expects steady but modest improvement through 2112 with a more robust recovery coming in 2013.

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Reduce, reuse...

Lynn Sanborn — Thu, 15 Dec 2011 12:36:00 GMT

REDUCE, REUSE...

Not sure what to do with old holiday lights and Christmas trees? Below are helpful tips on what to do:

Tree-Cycling

Most cities have curbside tree recycling or a Boy Scout Troop in the area that will take trees for a small donation. Contact your city or local boy scout troop for locations and more information:

www.kingcounty.gov/solidwaste

www.co.pierce.wa.us/treecycle

www.co.snohomish.wa.us

Holiday Lights

McLendonï¿½s Hardware

Whole Foods

Southcenter Mall

Bellevue Square

Alderwood Mall

Northgate Mall

Tacoma Mall

Toys

Think about taking some of your childrenï¿½s gently used toys and donating them to a charity after the holidays. Itï¿½s a great way to teach your children the importance of giving. For each gift they receive let them select one toy to donate. Remember, donated items are a tax write-off so save the receipt.

Gift Cards

Every now and then you might get a gift card to a store or restaurant that is not your favorite. Below are ways to put them to work for you:

Exchange or sell:

www.plasticjungle.com

www.giftcardrescue.com

www.cardpool.com

www.cardavenue.com

Donate to charity:

www.plasticjungle.com

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Winterize Your Home!!

Lynn Sanborn — Mon, 28 Nov 2011 17:45:00 GMT

10 ways to winterize your home

Here's your annual checklist of things to do to get your home ready for the change of season.

Check smoke detectors:

1. Don't neglect that smoke detector any longer! Take some time right now to check the operation of detectors, and to change the batteries. If you have an older house with a limited number of smoke detectors, install additional ones at each sleeping room, and make sure there is one centrally located on each level of the home as well.

Install a carbon-monoxide detector:

2. As houses get closed up for winter, the chances of carbon-monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a furnace, fireplace, water heater or other appliance that's fueled by propane or natural gas, or if you have an attached garage, install a carbon-monoxide detector. They're available inexpensively from many home centers and other retailers, and offer easy, plug-in installation.

Service your heating system:

3. Perform a complete system check of your furnace annually,

either by yourself or by a trained furnace technician. Check for worn belts, lubrication needs or other servicing that might be required; refer to your owner's manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing. Check the condition of duct joints and insulation, and of course change the filter.

Upgrade your thermostat:

4. An older thermostat that's a couple of degrees off can result in a lot of wasted energy, and so can forgetting to lower the thermostat at night. You can take care of both of those problems with an upgrade to a programmable thermostat. They are digital and typically very accurate, and they allow for easy, set-and-forget programming of temperatures for different times of the day, including energy-saving nighttime and workday setbacks.

Trim trees:

5. Trees that are overhanging your home can be a real hazard. They can deposit debris on your roof, scrape against shingles during wind storms and, worst of all, snap off with potentially devastating results. Have a professional tree-trimming service inspect the condition of overhanging tree limbs, and safely cut them back as needed.

Check the gutters:

6. Clear the gutters of leaf and pine-needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.

Break out the caulk:

7. A few hours and a few tubes of caulking can make a big difference in both your heating bills and your comfort levels this winter. Caulk around windows, doors, pipes, exterior electrical outlets, and any other exterior penetrations where cold air might enter. Use a good grade of acrylic latex caulk, either in a paintable white or, if you don't want to paint, use clear.

Drain sprinkler systems:

8. In colder areas, now is the time to be thinking about having your sprinkler and irrigation systems blown out. You can rent a compressor and do this yourself, or contact a landscape or irrigation-system installer and have them handle this for you. This is also the time to shut off outdoor faucets and install freeze-proof faucet covers.

Adjust exterior grade:

9. Fall is a great time to look at the grade around your home, and make sure that everything slopes away from your foundation to avoid costly problems with groundwater. Add, remove or adjust soil grades as necessary for good drainage.

Change light timers:

10. If you have exterior lights controlled by timers, including low-voltage ones, check the timer settings. Change the "on" times to an earlier hour to reflect the winter darkness.

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Local Happenings!

Lynn Sanborn — Tue, 15 Nov 2011 09:10:00 GMT

N O V E M B E R 24 Fantasy Lights - Spanaway

thru January 1

www.piercecountywa.org

25 Tree Lighting & Parade

www.seattle-downtown.com

25 The Nutcracker

Pacific NW Ballet Co

Seattle thru December 27

www.pnb.org

25 Tree Lighting Celebration

and Holiday Parade

Westlake Center

www.seattlecenter.com

25 Zoo Lights - Tacoma

thru January 1 www.pdza.org

25-27 Christkindlmarkt

Leavenworth

christkindlmarktleavenworth.com

26 Holiday Tree Lighting

Tacoma

www.broadwaycenter.org

26 Garden d’Lights

Bellevue Botanical Gardens

thru December 31

www.gardendlights.org

27 Seattle Marathon &

Half Marathon

www.seattle-downtown.com

30 Victorian Country Christmas

Puyallup thru December 4

avictoriancountrychristmas.com

D E C E M B E R

1-28 Stanwood Lights of Christmas

www.snohomish.org

1-30 Issaquah Reindeer Festival

Cougar Mountain Zoo

www.cougarmountainzoo.org

11/26 Seattle Men’s Chorus: Cool Yule

Seattle thru December 12

www.flyinghouse.org

2 Lakewood Tree Lighting Festival

www.cityoflakewood.us

2 Mercer Island Tree Lighting

www.mercergov.org

206-275-7864

2 Mountlake Terrace Tree Lighting

www.cityofmlt.com

2-4 Vashon Island Winterfest

www.vashonchamber.com

2-18 Leavenworth’s Christmas Festival

www.leavenworth.org

509-548-5807

3 Arlington Hometown Holidays

www.ci.arlington.wa.us

3 Auburn Santa Parade &

Tree Lighting

www.ci.auburn.wa.us

253-931-3043

3 Country Village Tree Lighting

Bothell

www.countryvillagebothell.com

3 Burien Winterfest

www.burienwa.gov

206-433-2882

3 Federal Way Jingle Bell Brunch

www.cityoffederalway.com

3 Gig Harbor Tree Lighting

www.gigharborguide.com

3 Lake Stevens Dickens Fair

www.snohomish.org

425-335-1500

3 Merrysville for the Holidays

www.ci.marysville.wa.us

3 Mill Creek Tree Lighting & Parade

www.cityofmillcreek.com

3 Mukilteo Tree Lighting

www.mukilteochamber.org

3 Redmond Lights Winter Festival

www.redmondlights.com

3 Renton Holiday Tree Lighting

www.piazzarenton.com

7 Maple Valley Holiday Lighting

www.ci.maple-valley.wa.us

10 Kent Christmas Fun Run & Walk

www.ci.kent.wa.us

253-856-5050

10-21 The Nutcracker

Tacoma City Ballet

www.broadwaycenter.org

17 Puyallup Breakfast with Santa

www.cityofpuyallup.org

18 Home for Hanukkah Celebration

Seattle

www.sjcc.org

206-232-7115 ext 269

21 Everett Wintertide

www.everettwa.org

31 New Year’s Eve - Seattle

www.spaceneedle.com

For additional events, please visit your local Chamber of Commerce

.

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Windermere Foundation Rocks!

Lynn Sanborn — Fri, 21 Oct 2011 11:50:00 GMT

I am so proud to be the Windermere Foundation Representative for my office. Yesterday all the Windermere Eastside (of Seattle) Foundation Representatives met and reviewed grant requests from many wonderful Eastside Charities. We focus on charities that deal with families facing homelessness and in financial crisis. And clearly, this is a bigger issue than ever before for most of us.

With so many great charities in front of us and with many of us also having personal involvement with these charities, we had some tough decisions. Do you give to a camp for abused kids or do you give that money to help more families that are homeless? Do you give to charities doing amazing work, but with huge budgets and donations coming in or take care of the little guys? Many debates and opinions on where to give out our money.

Did you know a big portion of our money comes from agents commissions? Out of every real estate transaction, a contribution is made to Windermere Foundation. Those funds are kept in the area the agent serves. So, all the contributions from agents on the Eastside are kept on the Eastside of Seattle.

So, where did we give our money yesterday?

Kirkland Interfaith Transition In Housing 31,500

Eastside Baby Corner 17,000

Housing at the Crossroads 16,000

Operation School Bell (Assistance League of the Eastside) 15,000

Mama’s Hands 11,000

Bellevue Lifespring (Formerly Overlake Service League) 8,500

Friends of Youth 8,500

Harrington House 6,500

Eastside Domestic Violence 5,000

Royal Family Kids Camp 3,000

Total For 2011 $122,000 I know other Real Estate Companies have foundations, but many of them use that money to promote the company and be sponsors of fundraisers. Less than 2% of our money is admin, the rest goes straight to the charities. There are many reasons I am proud to be a Windermere Agent and this is just one of them! I love a company that takes care of it’s community and gives back.

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5 Credit Myths- Busted!

Lynn Sanborn — Tue, 11 Oct 2011 09:47:00 GMT

When it comes to credit, sometimes the largest challenge is the most difficult to surmount: we simply donï¿½t know what we donï¿½t know, so our assumptions and inaccurate beliefs run wild and free through our mental real estate. Most of the time, thereï¿½s no harm; following finance fundamentals like paying every bill on time, every time, keep us out of credit danger zones.

But when itï¿½s approaching the time to buy, refi or even rent a home, relatively small credit score differences can stop you from getting your dream home, and can cost (or save) you thousands of dollars in interest over the life of your loan.

If youï¿½re at a time in your life where it makes sense to invest some time and effort into optimizing your credit score, here are five common credit myths weï¿½d like to help you bust without further ado:

Myth #1: Having lots of cash, a great income, or tons of equity, makes your FICO score less relevant.

Fact: No matter how much cash you have, if you want a mortgage, you must meet the lenderï¿½s FICO score guidelines. Of course, if youï¿½re flush with cash, it should be relatively easy to make your monthly payments on time. But if you have come into cash relatively recently or youï¿½re coming off a rough financial patch, lenders donï¿½t not look at your credit score on the theory that your other assets diminish your credit riskiness. Most lenders want nothing more than to avoid having to foreclose on a home, even if the homeowner has other assets.

And the best predictor of whether youï¿½ll default on a loan in the future is how youï¿½ve handled your credit in the past, so your credit score will drive whether you qualify for a home loan and what interest rate youï¿½re charged, no matter how much you make.

Two exceptions: if you buy a home with all cash, or take a hard money loan, which usually requires a much larger-than-average down payment and interest rate, you might be able to bypass credit score scrutiny, but youï¿½ll pay for it.

Myth #2: Having no debt or no late payments means you have great credit.

Fact: Financial responsibility and good credit are two different things. Your FICO score is meant to be a measure of your responsibility when it comes to managing debt, as proven by the fact that you have credit accounts, use them regularly and donï¿½t abuse them.

Having no credit accounts or debts doesnï¿½t give you good credit - it gives you no credit. And on the other end of the credit usage spectrum, being maxed out on various credit accounts all the time, submitting lots of credit applications and other credit moves that indicate you may abuse your credit can actually depress your score. Best practice is to have several credit accounts (student and car loans count!) that you actively and responsibly use on a monthly basis.

Tip: FICO gives a top score to accounts with balances that are 30 percent of the credit limit, so if you can keep your credit card or loan account balances at or around that mark, even better.

Myth #3: Checking your own credit score in advance prevents surprises when you apply for a mortgage.

Fact: Your mortgage originator (broker or banker) must pull their own version of your report from their own provider, and it might have a very different score, rating scale or even different line items than the free or paid report you pulled online. This is why itï¿½s imperative to start working with a mortgage professional as early as possible - a year in advance is not overkill - so you can detect any errors or issues and get their recommended fix in the works with plenty of lead time.

Myth #4: If youï¿½ve had a foreclosure or short sale, your credit report will be damaged for 7 years.

Fact: Derogatory credit items, like late mortgage payments, foreclosures and short sales, appear on your credit report for 7 years, but your credit score can be rehabilitated enough to buy a home or obtain other credit in less time, depending on your circumstances. Your post-short sale or foreclosure waiting period depends on a number of things, including what type of loan youï¿½ll be seeking to buy your next home with, how much cash youï¿½ll have to put down and whether there were any extenuating circumstances involved in losing your home in the first place; some loans allow for an immediate purchase, others require a waiting period of 2, 4 5 or even 7 years after the loss of a home.

Of course, your FICO score is also a key criteria in a post-home loss ï¿½buy,ï¿½ but interestingly enough, the length of time it takes to get your FICO score back up depends on how high it was beforehand. Earlier this year, the New York Times reported that it would take a consumer with a 680 FICO score three years after a foreclosure to bring their score back to that level, while it might take someone with a 780 FICO score (near-perfect) seven years for full score recovery.

And keep in mind that as your foreclosure or short sale ages, its impact on your score will decrease, too.

Myth #5: Short sales have much less impact on your credit score than foreclosures.

Fact: Hear ye, hear ye - short sales and foreclosures have the same impact on your credit score, according to the FICO folks themselves. (The only exceptions are for short sales or deeds-in-lieu of foreclosure where the property was not upside down, which are few and far between, if theyï¿½re not just a real estate urban legend!)

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Green value in going green?

Lynn Sanborn — Tue, 30 Aug 2011 09:04:00 GMT

WASHINGTON — Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two consistent, pesky questions:

Beyond the documentable savings on utilities bills, do such steps add to the resale value of a home? And do they make it easier or faster to sell your property?

Officials and housing groups say definitive statistical data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington and California offer promising hints.

In a study covering existing and new houses sold between May 2010 and April 30, 2011, the Earth Advantage Institute, a nonprofit group based in Portland, found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8 percent more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30 percent more.

The raw sales data in the study came from the Portland Regional Multiple Listing Service. "Certified" houses were defined as those carrying Energy Star or LEED for Homes designations, or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design.)

The latest study was the fourth in an annual series conducted by Earth Advantage, each of which has shown clear price premiums for certified houses.

However, officials caution that using average sales prices pulled from MLS data without attempting to measure "comparable" homes against one another directly may not be conclusive.

For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where homeowner adoption rates for energy-efficiency measures are greater.

Nonetheless, said Dakota Gale, Earth Advantage's manager of sustainable finance, looking back at four years of studies, "we can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when home sales were down."

A study the institute conducted two years ago in Seattle and Portland identified what may be another plus: Homes marketed with energy-efficiency certifications appear to sell faster on average than those without.

The study attempted to come up with rough comparability in appraisal terms between certified and noncertified properties, and found that in Portland, certified homes spent 18 days less time on the market than noncertified counterparts.

In both Portland and Seattle, researchers documented price premiums — 9.6 percent in Seattle, 4.2 percent in Portland — in a statistical analysis with a 95 percent confidence level.

Meanwhile, a recent study in San Diego and Sacramento, Calif., published by the National Bureau of Economic Research, took a different tack: When you install photovoltaic solar panels on your roof, how much do you get back in resale terms, beyond monthly energy savings?

Researchers examined home sales in both metropolitan areas between 2003 and 2010 and found that, on average, solar-panel installations cost owners in a sample of homes in the $500,000 range $35,967. But with federal and state subsidies, the net average cost came down to $20,892.

This net expenditure, in turn, yielded an increase in appraised value by $20,194, a 97 percent rate of recovery on the investment.

Though less than 100 percent, a 97 percent recovery rate is much higher than most home improvements in the most recent "Cost vs. Value" study conducted by Remodeling magazine — well above major kitchen and bathroom renovations.

Kevin Morrow, senior program manager for green building at the National Association of Home Builders, said that while many newly constructed homes have energy and sustainability certifications, banks don't necessarily recognize their value when it comes to providing mortgage money.

For example, bank underwriters often do not include reduced monthly utilities costs in the household income/household expense ratios that affect the maximum mortgage amounts available to buyers.

"The case needs to be made (to lenders)," Morrow said, "that, hey, these (highly efficient) houses will cost less to operate, so they should be worth more."

Morrow added that appraisers are part of the issue as well if they don't have the training to recognize and credit extra value to houses that have money-saving solar installations, geothermal heating and cooling, Energy Star appliances throughout, water-conservation features and other green improvements.

The Appraisal Institute, the largest group representing that industry, said it has sponsored "green" appraisal courses for 2,300 appraisers during the past two years, and that it strongly supports efforts to better incorporate energy and environmental factors into mortgage underwriting and home valuations — including a possible congressional mandate requiring it.

By Kenneth R. Harney

Syndicated columnist

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Recycle Event at Redmond Windermere!!

Lynn Sanborn — Wed, 10 Aug 2011 07:42:00 GMT

We have scheduled a recycling event for Saturday September 17th from 10am – 2pm with 1 Green Planet Recycling at Redmond Windermere 16261 Redmond Way, Redmond. Please feel free to drop off any of the items listed. Hope to see you there!!

Here is what you can recycle:

• Appliances – washers, dryers, refrigerators, etc.
• Electronics – televisions, stereos, etc.
• Scrap • Appliances – washers, dryers, refrigerators, etc.
• Electronics – televisions, stereos, etc.
• Scrap metal, machinery – circuit boards, etc.
• Computers (Secure data destruction) – PCs, laptops, printers,
metal, machinery – circuit boards, etc.
• Computers (Secure data destruction) – PCs, laptops, printers, monitors, etc.
• Batteries – car, computer, etc.
• Medical equipment
• Ink & toner
• Cell phones
• Vehicles

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Foreclosure Mediation Program

Lynn Sanborn — Fri, 22 Jul 2011 14:44:00 GMT

The Foreclosure Fairness Act, passed during the 2011 legislative session, created the Foreclosure Mediation Program to provide homeowner foreclosure assistance. State law now requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation. Foreclosure counseling will help homeowners understand all of their options and determine the best course of action.

Foreclosure mediation will begin July 22, 2011. Homeowners who wish to participate in mediation must be referred by a housing counselor or an attorney. To participate in this program homeowners should seek housing counseling or an attorney promptly. To find a counselor now, please call Washington State's foreclosure prevention hotline: 1-877-894-HOME (1-877-894-4663).

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Seattle area housing market heats up!

Lynn Sanborn — Tue, 19 Jul 2011 08:06:00 GMT

The latest home sale numbers give local real estate professionals confidence that the Seattle area's housing market has bottomed out.

"It feels like we have hit the bottom of the market," Lennox Scott, chairman and chief executive officer of John L. Scott Real Estate, said in a news release accompanying the Northwest Multiple Listing Service's report on June home sales, released Wednesday. "Buyer confidence has definitely returned."

The number of sales in King County was up 0.6 percent from a year earlier and 12 percent from May. Pending sales, which may not close but represent more-recent activity, were up 35.6 percent from a year earlier but down 3.4 percent from May.

Of course, local real estate professionals have mistakenly called the bottom more than once since the market peaked in 2007. And the expiration of a homebuyer tax credit in April 2010 meant the subsequent months were the peak of the post-credit hangover, with particularly low sales. That may make this June look particularly rosy compared with a year earlier.

Matt Deasy, the general manager of Windermere Real Estate East, said the combination of fewer homes on the market and rising sales is shifting buyer priorities and "causing the median home price to stabilize, despite being lower than last year."

The median King County house sales price was $345,000, unchanged from May but down 9.9 percent from June 2010. Seattle's median was $382,500, down 0.6 percent from May and 6.7 percent from a year ago.

Analysis company CoreLogic reported last week that "distressed sales" – homes in or under threat of foreclosure – account for most of the continued drops in home prices. It said prices in King and Snohomish counties fell 5.8 percent in May from a year earlier, but just 1.75 percent excluding distressed sales.

That said, there still appears to be a large inventory of distressed homes that are on the market or waiting to enter the market. That could hold back prices for some time.

As for the actual inventory in June, the listing service reported King County has 4.7 months worth of homes on the market at the current sales pace in June, down from 5.2 months worth in May and 5.9 months' worth in June 2010.

Seattle sales were up 13.7 percent from May but down 0.8 percent from a June 2010. Pending sales were down 6.8 percent from May but up 23 percent from a year earlier. The city had 3.9 months of inventory in June, down from 4.3 months in May and 5.3 months a year ago.

The median condo sold for $208,750 in King County and $246,000 in Seattle in June, down 2.9 percent and 1.6 percent, respectively, from May and 13.7 percent in both places from a year earlier.

Read more real estate news. Visit seattlepi.com's home page for more Seattle news.

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U.S. Home Prices Poised to Climb as Foreclosures Wane, HUD’s Donovan Says

Lynn Sanborn — Tue, 05 Jul 2011 09:04:00 GMT

Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said.

“It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”

Home sales have increased in six out of the past nine months and the number of property owners in default is declining, Donovan said on CNN’s “State of the Union” program. Housing prices will begin rising as the number of foreclosures declines, he said.

“In the long run, it’s a good time to buy,” Donovan said. “It’s so affordable today compared to where it’s been for generations.”

Contracts to buy previously owned U.S. homes rose 8.2 percent in May, following a revised 11 percent drop in the previous month, the National Association of Realtors said on June 29. A separate report by the Chicago-based group on June 21 showed sales of existing houses, which make up about 96 percent of the market, declined in May to a six-month low.

Home prices fell 4 percent in April from a year earlier, the biggest drop in 17 months for the S&P/Case-Shiller index of values in 20 cities.

An estimated 1.7 million U.S. homes were in the foreclosure process and expected to be put on the market as of April, down 18 percent from the peak, as fewer loans entered delinquency and more distressed homes were sold, CoreLogic Inc. said in a report on June 22.

Shadow Inventory

The so-called shadow inventory represented a five-month supply at the current sales pace, the Santa Ana, California- based real-estate information company reported. The inventory’s size is a barometer of housing-market health because foreclosed homes sell for lower prices and falling values discourage buying, said Sam Khater, CoreLogic’s chief economist.

Donovan said lenders are adding requirements “that don’t make sense” for risky borrowers after the government, through the Federal Housing Administration, raised the minimum down payments for a house purchase.

“We can’t over correct,” Donovan said. “We can’t go so far in the other direction that we cut off homeownership for people who really can be successful homeowners.”

Encouraging home ownership should avoid giving buyers an expectation of making $1 million overnight, Donovan said. “We can get back to the place where it’s a good investment and we will be able to make money over time.”

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Economy, Affordability to Drive Home Sales Growth

Lynn Sanborn — Mon, 16 May 2011 22:05:00 GMT

Home sales are on track to outperform last year, even though the market doesn’t have the benefit of the home buyer tax credit. This is thanks to sustained economic growth, the slowly recovering jobs picture, and historically high affordability conditions, NAR Chief Economist Lawrence Yun told a packed room on Thursday during the Residential Economic Update at the 2011 REALTORS® Midyear Legislative Meetings.

Although unemployment remains high at about 9 percent, the country is seeing steady job growth. More than 100,000 jobs are being created a month, and the U.S. could see 1.5 million net new jobs this year, Yun said.

Frank Nothaft, chief economist for secondary mortgage market company Freddie Mac, who spoke later at the same session, said he expects a bit more robust job growth, closer to 2 million, but both economists said the unemployment rate will remain high despite the new jobs because of the size of the hole that needs to be filled. More than 8 million jobs were lost during the 2008-09 recession, and new entrants to the labor force, such as recent college graduates, add another 2 million to the hole.

Both Yun and Nothaft are predicting home sales a little higher than 5 million, which would improve upon last year even though 2010 had the artificial stimulus of the tax credit, they said.

Historically high affordability is one of the key drivers of the improved sales performance. NAR’s affordability index is at its highest level ever, at nearly 170, which means households earning the national median income have 170 percent of the income needed to buy a home at the national median price.

Behind the affordable conditions are low interest rates, which today are below 5 percent, and home prices that, while rising in some areas (like booming North Dakota), remain quite a bit below their peak during the housing boom. The high number of distressed homes (those in which the value is below the amount of equity the owners have in them) is one of the main reasons values are struggling to get off the bottom.

Yun said that overly strict lending standards are holding back more robust sales: 2010-vintage mortgage originations have a lower serious delinquency rate than in 2002, when serious delinquencies were barely above 1 percent, and 2011 is shaping up to be another stellar year in delinquency rates, but lenders are still requiring extraordinarily high credit scores and putting up other hurdles to obtaining financing. “If lenders would just go back to the normal standards that were in place prior to the boom years, sales might be 20 percent higher,” Yun said.

Although he’s seeing no signs of lenders opening up on lending yet, Yun said conditions are in place for lenders to start easing up. They’re sitting on plenty of money, and they could be reaching the point at which they can earn more revenues at reasonable risk levels by making home loans than by doing other things with their money. “I’m not seeing that yet, but that is a potential upside,” he said

In some ways, the heroes of housing today are the all-cash buyers. They’re 40 percent of the market now, so they’re helping to drive sales despite the tight availability of financing. Yun thinks all-cash buyers are investors who either can’t get financing or think they can get a better return on their cash by putting it into real estate than they can in savings instruments or stocks, particularly given the rock-bottom process of so many houses. He also thinks some empty-nest baby boomers might be acting as the lender for their children, buying a home for them on an all-cash basis and taking back a note. “I’m seeing this anecdotally. I don’t know if it’s a trend,” he said.

Yun’s forecast: The U.S. economy will grow about 2.5 percent this year, with between 1.5 and 2 million new jobs added to the economy. Home sales will reach about 5.1 million, up 7-10 percent from last year, with home values staying virtually unchanged. Nothaft had a largely similar forecast.

— Robert Freedman, REALTOR® Magazine

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The Best Cities For An Active Retirement

Lynn Sanborn — Sat, 09 Apr 2011 15:29:00 GMT

Living Well In Retirement

The Best Cities For An Active Retirement

Willian P. Barrett

Sure, you may not want to work at all in retirement--after all, it's the day-to-day grind you're leaving. But if you're able to, you probably want to keep on the go, both mentally and physically.

To that end, we've put together a roster of what we consider the 25 best cities for an active retirement. It's an eclectic list of cities big and small, across the country.

Our metrics were pretty simple. We used four equally weighted factors to evaluate cities with populations of 100,000 and above. The first is Bicycling magazine's latest periodic list of the top 50 cities for bicycling. This measure factors in miles of bike paths, which often can be used by walkers as well, while reflecting a civic culture encouraging outdoor activity.

In Pictures: 25 Best Cities For An Active Retirement

The second metric is the percentage of the adult population in a given city who volunteer their services for worthy causes, as measured by volunteeringinamerica.org. We view this as a proxy for overall volunteer opportunities, as well an indication of the encouragement a community can generate.

Of course, you don't want to be out and about while worrying all the time about being mugged. So we factored in the FBI's latest statistics on violent crime rates. Finally, since you want to stay healthy, we took U.S. Census Bureau data on which areas have the most physicians per capita. We consider this a measure both of health-care quality and ease: The more doctors around, the easier it is to get in to see one when needed.

We didn't take into account a city's economy--remember, you're retired and don't need a job. Nor did we consider scenery or weather. And we also ignored quality of the local schools, since that's not a factor for most retirees.

No. 1 on our list: Madison, Wisc. Both a state capital and a college town (home to the University of Wisconsin), it is tops in volunteering (a full 40% of the adult population), No. 7 in the Bicycling magazine ranking and No. 6 in doctors per capita.

Next on our tally is Boulder, Colo., another university town (the University of Colorado) right behind Madison in volunteering and just ahead of it on the bicycle front.

Indeed, college towns, which often fare well in quality-of-life evaluations, account for nearly one-fourth of our list. Other entries include Ann Arbor, Mich; Eugene, Ore.; Lexington, Ky.; and Gainesville, Fla.

But big cities are well represented too. Brimming with outdoor opportunities and doctors, and surprisingly safe, New York ranks No. 11. Other bigger cities on our list include San Francisco; San Jose, Calif; Denver; and Seattle. Despite a higher crime rate than we might like, we also included Washington, D.C., due to high marks in bicycling, volunteerism and doctors.

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Did you know...

Lynn Sanborn — Sun, 03 Apr 2011 02:12:00 GMT

That Earth Day is April 22? There are many things you can do that are great for the planet and are free or inexpensive for you. They will also help lower your energy bills, saving you money!

FREE

□ Cut your shower each day by 2 minutes

□ Turn off the faucet while brushing your teeth

□ Turn off lights when you are not in the room

□ Carpool or take the bus to work 1 day a week

□ Recycle your food scraps in the yard waste (if available in your area) or start your own compost bin

□ Pay all your bills online

□ Unplug appliances (coffee maker, toaster, printer, etc) when they are not in use

□ Rather than drive, walk to dinner at your local restaurant (weather permitting)

LOW COST

□ Switch your light bulbs to CFLs

□ Use a programmable thermostat

□ Lower your heat at night

□ Use reusable bags for shopping

□ Try to shop & eat locally

□ Buy a low flow shower head

□ Buy appliances that are energy efficient (not always low cost but will save you money on utility bills)

□ Buy compostable trash bags

□ Buy biodegradable products (cups, napkins, plates, etc)

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Home Maintenance

Lynn Sanborn — Fri, 18 Mar 2011 20:27:00 GMT

Spring has sprung! Spring is a great time to get your home in tip top shape for summer. Here’s a checklist to help you.

OUTDOORS

□ Check your roof for debris build-up. Check the valleys of your roof and remove sticks, leaves, and tree needles.

□ Clean out the gutters.

□ Check for water under your house. With all the recent heavy rain you’ll want see if there is any water that has accumulated.

□ Examine foundation walls for cracks, leaks or signs of moisture and repair as needed.

INDOORS

□ Replace the furnace filter.

□ Clean the garbage disposal.

□ Check for condensation or water around windows and underneath faucets.

□ Clean window sills and screens. Repair any holes in the screens.

□ Have your fireplace and chimney cleaned and serviced.

□ Cut back trees and shrubs from exterior walls if needed.

□ Check the attic for evidence of leaks or condensation.

□ Check fire detectors and replace batteries if needed.

□ Clean stove top fan and hood. It gets used a lot in the winter months.

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Motivated buyers returning to the housing market!

Lynn Sanborn — Thu, 10 Mar 2011 22:50:00 GMT

KIRKLAND, WA, February 3, 2011. Dramatic increases in open house activity and shrinking inventory are fueling optimism among members of the Northwest Multiple Listing Service. Commenting on the just-released MLS report on January's housing activity, one director stated, "There is a strong belief in the industry that the worst is behind us and we can look forward with confidence."

Darin Stenvers, managing broker at John L. Scott in Bellingham, who made that comment, also noted consumers are gaining confidence and buyers may be seeing what they believe is the bottoming of the market. "I'm very optimistic about the housing market for 2011 and the buyers and sellers should be as well," he exclaimed.

Year-over-year pending sales were down somewhat, the volume of new listings declined more than 23 percent, sales prices continued to slip, but the number of closed sales increased slightly across the 21 counties in the Northwest MLS service area.

Last month's pending sales lagged totals for the same month a year ago, but only by 186 units system- wide, a decline of about 3.3 percent. Northwest MLS director Matt Deasy, the broker at Windermere Real Estate/East in Bellevue, said he considered anything within 5 percent of a year ago when tax incentives were boosting sales a "home run."

Members reported 5,393 pending sales (mutually accepted offers) of single family homes and condominiums during January. That compares to 5,579 pending sales for the same period a year ago, and marked a big gain from both January 2009 (4,353 pending sales) and January 2008 (4,499 pending sales).

"I expect sales to be soft through April when compared to last year since first quarter sales volume was artificially inflated by the rush to take advantage of the tax credit that expired on April 30," said OB Jacobi, president of Windermere Real Estate Company. "A more apples-to-apples assessment of sales will be to compare first quarter this year with first quarter 2009," he suggested.

Closed sales rose a modest 2.1 percent from a year ago, increasing from 3,142 transactions to 3,207 sales. Prices on those completed sales were down about 6.3 percent. The overall median price for last month's closed sales of single family homes and condominiums was $243,500, which compares to the year-ago selling price of $259,903. For single family homes (excluding condominiums) the median selling price was $250,000, down about 5 percent from a year ago; for condos, last month's sales had a median price of $200,000, down 16.7 percent from twelve months ago.

Only four counties (Clallam, Cowlitz, Kitsap, and Okanogan) reported year-over-year price gains.

In King County, the median sales price on last month's sales was $333,500, a drop of 4.7 percent from twelve months ago when it was $350,000.

Brokers attribute part of the price drop to sales of distressed homes (in general, meaning homes under foreclosure or impending foreclosure).

"Distressed properties are making up an increasingly greater share of sales than a year ago, and that trend is expected to continue," observed Jacobi. Noting the sales price for distressed properties could be 20-to-30 percent less than for normal sales, he said "it's no surprise that a greater percentage of low-priced distressed properties is pulling down the median price."

Whether considering a property classified as distressed or a conventional listing, house-hunters can choose from 32,647 active listings in the Northwest MLS system at the end of January. That selection is 4.7 percent smaller than a year ago when there were 34,256 properties listed with member-brokers.

Not nearly as many newly listed homes were offered for sale last month compared to twelve months ago. MLS members recorded 8,556 new listings, which included 7,167 single family homes and 1,389 condominiums. The combined total is down nearly 24 percent from the same month a year ago when members added 11,206 new listings to inventory.

MLS director Bobbie Petrone Chipman said overall, January was a positive month around Pierce County, where her office is located. Noting that area experienced a 27 percent reduction of new listings, a 2.4 percent increase in pending sales and a 10.8 percent jump in closed sales, Petrone Chipman, co-managing principal broker at Coldwell Banker Bain Tacoma/Puyallup, said the month reflected "a bit more balance as we dip our toe into the new year."

Deasy also expects more balance, with sales more evenly distributed during the year, unlike 2010 when sixty percent of their sales occurred in the first half of the year. He also predicts closed sales will increase year over year, while at the same time pending sales might decrease year over year. This is the result of a higher percentage of pending sales actually closing, he explained, citing various factors. "Banks are better at short sales, brokers are better at short sales, appraisal issues are less frequent, and lending standards are becoming more stable."

Based on anecdotal reports of open house traffic, brokers are hopeful of upticks in sales.

"The buyer activity at open houses in the close in Seattle neighborhoods has increased dramatically in the past month, said Northwest MLS director Mike Skahen. "If there were more good new listings coming on the market there would be more sales," he suggested.

Skahen, the owner/broker at Lake & Co. Real Estate in Seattle, believes the shortage of new listings is causing an increase in multiple offers. As an example, he said a small Green Lake townhouse project that had been on the market for more than four months with no offers finally had one unit sell a few weeks ago. Last weekend four offers came in on another unit. "I have not seen buyers this motivated in three years," he remarked, adding, "Sellers should not wait for spring flowers to bloom to put their homes on the market as they usually do because there is much less competition now than there will be soon."

Industry leaders have recommendations to benefit both sellers and buyers.

Accurate pricing is paramount. "Sellers are learning there is a small window of opportunity to have consumers sees their home before ruling it out and moving on," suggested Stenvers.

"My advice to buyers in today's market is to get pre-approved prior to starting their home search in order to avoid any delays that might result from the new lending standards process," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate." This way," he explained, "buyers are ready to act quickly when they do find a home on which to make an offer."

As for sellers, Scott said pricing and presentation have never been more important. "Pricing must be comparable with the other properties that have recently sold in their local area and the home must be in pristine show condition from day one."

MLS director Pat Grimm, owner/broker at Windermere Real Estate/Capitol Hill, detected some hesitancy to list properties now. Distressed properties sell for less, but buyers face uncertainty and a long timeframe, he explained, noting the large percentage of distressed properties on the market has resulted in an interesting side effect: sellers of non-distressed properties are having an advantage.

"On one hand, I'm seeing sellers that are hesitant to bring their listings onto the market and compete with the price of short sale properties," Grimm commented. On the other hand, he said buyers are looking at all the inventory and, because of the complications of purchasing distressed properties, are favoring properties that are not short sales or bank owned.

In Seattle, Grimm said the sweet spot is homes priced $400,000-500,000, in good shape that are not distressed. "They appeal to both first-time buyers and downsizers," he reported, citing two examples:
A Capitol Hill home went on the market at $450,000, received seven offers and sold in a week for significantly more than asking price. In the second example, a View Ridge listing priced at $499,000 had 25 groups through an open house in a two-hour span. It has a view and a great location above the Burke-Gilman trail. "Both homes were in the $400-$500,000 price range, well maintained, and not distressed."

Several other NWMLS directors commented on the impact of distressed properties:

"We still have the better part of the next five years to work through short sales and bank owned property but this is a start," commented Frank Wilson, branch managing broker at John L. Scott Real Estate in Poulsbo. He described January 2010 as an anomaly due to the tax credit, and said even though last month was down in many respects compared to last year, it better reflects the true market. "It is good to start a new year off without any government incentives and is hopefully the start of returning to normal."
Some owners are opting to rent their homes as the market recovers. As demand increases and rents rise, investors are returning, said Stenvers. Also emerging is a new group of renters – past owners who lost their home to foreclosure or short sale, he noted, adding, "These renters are willing to sign long-term contracts so they can get their credit rating repaired." For example, Stenvers said his office recently listed a rental. The renters were a professional couple in the midst of a short sale in Florida. "They are looking at a very long term commitment to renting to help them save money and recover from their loss."
"Buyers are reluctant to look at distressed properties not because of the characteristics of the property, but because of the process," said Grimm. He called the long delays with lenders regarding the sale of distressed properties "a major choke point." Grimm acknowledged there has been significant progress with the banks trying to figure out the situation, but stated, "We're still a long way from making it buyer-friendly."

Figures from the National Association of Realtors® show distressed homes rose to 36 percent of sales of existing homes in December, up from 33 percent in November and 32 percent a year ago. Such homes are typically discounted by 10 to 15 percent, according to NAR research.

Commenting on the volume of distressed homes on the market, Windermere's Jacobi said, "Hopefully new regulations requiring banks to speed up the sales process for distressed homes will help move that inventory more quickly."

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10 common errors home owners make when filing taxes!

Lynn Sanborn — Wed, 23 Feb 2011 17:08:00 GMT

As you calculate your tax returns, consider each home tax deduction and credit you are and are not entitled to. Running afoul of any of these 10 home-related tax mistakes which tax pros say are especially common can cost you money or draw the IRS to your doorstep.

Sin #1: Deducting the wrong year for property taxes

You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind that is, you're not billed for 2010 property taxes until 2011. But that is irrelevant to the feds.

Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.

Sin #2: Confusing escrow amount for actual taxes paid

If your lender escrows funds to pay your property taxes, don't just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The

regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don't just add up 12 months of escrow property tax payments.

Sin #3: Deducting points paid to refinance

Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.

Sin #4: Failing to deduct private mortgage insurance

Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.

Sin #5: Misjudging the home office tax deduction

This deduction may not be as good as it seems. It often doesnï¿½t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS interest in your return. Hampton's advice: Claim it only if it's worth those drawbacks.

Sin #6: Missing the first-time home buyer tax credit

If you met the midyear 2010 deadlines, don't forget to take this tax credit into account when filing.

Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.

Sin #7: Failing to track home-related expenses

If the IRS comes a-knocking, don't be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturerï¿½s certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.

Sin #8: Forgetting to keep track of capital gains

If you sold your main home last year, don't forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you're a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you're single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.

Sin #9: Filing incorrectly for energy tax credits

If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.

Sin #10: Claiming too much for the mortgage interest tax deduction

You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

G.M. Filisko is an attorney and award-winning writer who was once mortified to receive a letter from the IRS but relieved to learn the IRS had simply found a math error in her favor. A frequent contributor to many national publications including AARP.org, Bankrate.com, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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Get a Jumpstart on Spring Cleaning!

Lynn Sanborn — Fri, 18 Feb 2011 08:20:00 GMT

Did you know...that March is a great time to do some spring maintenance around your home? Below are a few tips to get you started!

Clean your kitchen exhaust hood and filter. You probably cooked a lot more hot food on the stove top during the cold winter.

Replace your furnace filters. They will be especially filthy after the winter months.

As the weather warms, spend a day and check your roof for winter damage. You should also check fences, carports and sheds.

Check all smoke and carbon monoxide detectors.

Clean out the gutters.

Aerate, thatch and fertilize your yard.

Be sure the air vents inside and out are not blocked by fallen debris.

Have your fireplace and chimney cleaned and serviced.

Clean the windows and screens. Repair any holes or replace screens if needed.

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Low Interest Rates Over?

Lynn Sanborn — Tue, 15 Feb 2011 07:55:00 GMT

Era of super-low mortgage rates appears to be over

The days of the absurdly low mortgage rate are over.

By MICHELLE CONLIN and JANNA HERRON

AP Business Writers

NEW YORK —

The days of the absurdly low mortgage rate are over.

The average rate for a 30-year home loan rose above 5 percent this week for the first time since last April - just as Americans are feeling more secure in their jobs and confident about the economy, and just before the big spring home-buying rush.

Freddie Mac said Thursday that the average rate was 5.05 percent, almost a full percentage point higher than in November, when it hit a 40-year low.

Economic signals suggest the recovery is gaining momentum. New claims for jobless benefits came in this week at the lowest in three years, and the unemployment rate has fallen nearly a full percentage point in two months. Americans are spending more and saving less.

The exception is the beleaguered housing market. Record foreclosures have forced home prices down, and last year was the worst for sales in more than a decade. About the only good news was that qualified buyers could get the deal of a lifetime from their lenders, if they had the means - and the stomach - for the market.

Now rates are rising, and analysts expect that will continue through the end of the year, to about 5.5 percent. The next few months are the busiest for the housing market - about one in three home sales happens in the spring.

"It doesn't help," says Greg McBride, a senior financial analyst with Bankrate.com. "Any increase in mortgage rates takes away buying power and dilutes the incentive to refinance."

Rates have been rising since the fall, mostly because of fears that higher inflation is coming. Investors have been demanding higher yields on Treasury bonds ever since the Federal Reserve announced its program to pump up the economy by spending $600 billion to buy government debt. Mortgage rates tend to track the yield on the 10-year Treasury note.

Mortgage rates are still extremely low by historical standards. Anyone who bought a house 30 years ago might remember paying 18 percent on their loan.

And many analysts say low lending rates are less likely to persuade people to buy than, say, reasonable home prices or a steady job market.

"You'll see some effect on demand, but it's really how secure people are in their jobs and how much money they feel they have relative to their homes," says Cristian deRitis, an economist specializing in housing for Moody's Analytics.

"Many of those people just won't buy a house," says Wells Fargo senior economist Mark Vitner. "They'll hold off."

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Owning a Home is a Smart Decision

Lynn Sanborn — Mon, 31 Jan 2011 08:54:00 GMT

Owners, Renters Agree: Owning a Home is a Smart Decision

Washington, January 19, 2011

A substantial majority of both home owners and current renters agree that owning a home is a smart decision over the long term. That’s according to the results of a National Association of Realtors® survey of 3,793 adults conducted online by Harris Interactive.

The American Attitudes About Homeownership survey found that in today’s challenging economy, 95 percent of owners and 72 percent of renters believe that over a period of several years, it makes more sense to own a home. In addition, an overwhelming majority of home owners are happy with their decision to own a home – 93 percent of owners surveyed would buy again.

“Home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The results of this survey illustrate just how important issues related to home ownership are to people in this country.”

The survey uncovered some differences between home owners and renters, as well. While more than half of owners are “very” or “extremely” satisfied with the overall quality of their family life, only one-third of renters report the same levels of satisfaction. Similarly, 43 percent of home owners are very/extremely satisfied with their community life, compared with 30 percent of renters.

A majority of renters – 63 percent – said that it was at least somewhat likely that they would purchase a home at some point in the future. Among this group, young adults (18-29 years old) have the strongest aspirations for home ownership; only 8 percent of young adults said that it was “not at all likely” that they would purchase a home at some point in the future.

In today’s market, many aspiring home owners are faced with worries about job security and creditworthiness. Among renters who are very or extremely likely to buy a home in the future, three out of five consider confidence in job security and creditworthiness to be an obstacle.

One point of agreement between renters and home owners was support of the mortgage interest deduction (MID). Seventy-four percent of owners and 62 percent of renters say it’s “extremely” or “very” important that the MID remain in place.

“At a time when the middle class is under increasing economic pressures, both home owners and renters agree that the mortgage interest deduction should not be targeted for change,” said Phipps. “Given strong public support of and aspirations toward owning a home, we need to keep policies in place that support and encourage responsible, sustainable home ownership for our future.”

This survey was conducted online within the U.S. and fielded October 6-20, 2010. A total of 3,793 adults, 18 and older were surveyed, including 1,880 home owners, 1,115 renters, and 798 young adults. All samples came from the Harris Poll online database and were weighted for age, sex, race/ethnicity, education, region and household income to be representative of the U.S. general population of adults 18 and older. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Results are available online at www.realtor.org/statsanddata/homeownership/attitudes_homeown.

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Important Tax Changes!

Lynn Sanborn — Fri, 21 Jan 2011 16:52:00 GMT

Tax Season is Here *Below are some of the important changes that took effect in 2010 regarding taxes.*


Due Date of Return Form 1040 must be filed by April 18, 2011 (due to the Emancipation Day holiday in the District of Columbia). Standard Deduction You can no longer increase your standard deduction by: state or local real estate taxes, new motor vehicle taxes (for vehicles purchased in 2010) or disaster losses (for disasters occurring in 2010). Standard Mileage Rate Below are the 2010 standard mileage rates for the use of a car: Business: 50 cents / mile Medical/moving: 16.5 cents / mile Charitable service: 14 cents / mile Non-business Energy Property Credit You can take credit based on what you spend on various energy-saving improvements made to your main home. The rate is 30% of the cost of all qualifying improvements, with a maximum credit limit of $1,500, for improvements placed in service in 2010. Exemption/Deduction Limits For 2010, you will no longer lose part of your deduction for personal exemptions and itemized deductions, regardless of the amount of your AGI. Repayment of First-Time Homebuyer Tax Credit If you claimed the credit for a home you bought in 2008 and you owned and used the home as your main home during all of 2010, you must begin repaying that credit with your 2010 tax return. (see Chapter 37) Roth IRAs Beginning in 2010, you can make a qualified rollover contribution to a Roth IRA regardless of the amount of your modified AGI. (see Chapters 10 and 17). Tax Assistance Toll Free Lines 1-800-829-1040 Individual 1-800-829-4933 Business The above information was compiled from the Tax Guide 2010 for Individuals publication on January 18, 2011. Please consult a tax accountant or visit the IRS websites listed below for complete details on tax credits and deductions. http://www.irs.gov/pub/irs-pdf/p17.pdf www.irs.gov

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Energy & water saving maintenance tips!

Lynn Sanborn — Mon, 10 Jan 2011 12:36:00 GMT

Energy & water saving maintenance

Proper home maintenance will help reduce your energy use:

Check your furnace air filters monthly. Clean and/or replace as needed.

Every six months, unplug your refrigerator, pull it away from the wall and clean the coils on the back or on the bottom. This allows the fridge to run more efficiently and prolong its life.

Fix leaky faucets, showers and toilets. One leaky faucet will waste five gallons per day, or 152 gallons per month.

Seal ductwork to save energy and improve comfort and air quality. Leaking ducts can waste as much as 30 percent of the heat your furnace produces

Seal air leaks around doors, windows, electrical outlets.

Install compact fluorescent light bulbs to cut your lighting energy use by up to 75%. You'll save even more in the long run because they can last up to 10 times longer than your standard incandescent bulbs.

Install a programmable thermostat to maintain comfortable temperatures when you're home while conserving energy when you're away.

Keep in mind the for the average person, showering requires far less water than taking a bath.

For more energy saving ideas visit:

US Department of Energy www.energysavers.gov Seattle City Light Stretch Your Dollar www.seattle.gov/light/accounts/stretchyourdollar/ac5_save.htm

Green Seattle Guide: In Your Home www.seattle.gov/environment/cag/home.html

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Be Green!

Lynn Sanborn — Thu, 16 Dec 2010 12:52:00 GMT

Be Green!!

Christmas Trees

Most cities have curbside tree recycling or a Boy Scout Troop in the area that will take trees for a small donation. Contact your city or local boy scout troop for locations and more information:

King County - curbside recycling

Lynnwood - curbside Jan 1-2

Tacoma, Puyallup, Gig Harbor, UP

curbside, MUST be cut in pieces & placed into yard waste bin

Holiday Lights

McLendon’s Hardware

Whole Foods

Southcenter Mall

Bellevue Square Mall

Alderwood Mall

Northgate Mall

Tacoma Mall

Toys

Think about taking some of your children’s gently used toys and donating them to a charity after the holidays. It’s a great way to teach your children the importance of giving. For each gift they receive let them select one toy to donate. Remember, donated items are a tax write-off so save the receipt.

May your Holidays be Merry and Green!

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7 Tips for Improving Credit!

Lynn Sanborn — Tue, 23 Nov 2010 11:08:00 GMT

7 Tips for Improving Your Credit

By: G. M. Filisko

Here’s how to clean up your credit so you get the least-expensive home loan possible.

1. Know your credit score

Credit scores range from 300 to 850, and the higher, the better. They’re based on whether you’ve paid personal loans, car loans, credit cards, and other debt in full and on time in the past. You’ll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms.

You’re entitled to a free copy of your credit report annually from each of the major credit-reporting bureaus, Equifax, Experian, and TransUnion. Access all three versions of your credit report at www.annualcreditreport.com. Review them to ensure the information is accurate.

2. Correct errors on your credit report

If you find mistakes on your credit report, write a letter to the credit-reporting agency explaining why you believe there’s an error. Send documents that support your case, and ask that the error be corrected or removed. Also write to the company, or debt collector, that reported the incorrect information to dispute the information, and ask to be copied on any materials sent to credit-reporting agencies.

3. Pay every bill on time

You may be surprised at the damage even a few late payments will have on your credit score. The easiest way to make a big difference in your credit score without altering your spending habits is to diligently pay all your bills on time. You’ll also save money because you’ll keep the money you’ve been spending on late fees. Credit card or mortgage companies probably won’t report minor late payments, those less than 30 days overdue, but you’ll still have to pay late fees.

4. Use credit carefully

Another good way to boost your credit score is to pay your credit card bills in full every month. If you can’t do that, pay as much over your required minimum payment as possible to begin whittling away the debt. Stop using your credit cards to keep your balances from increasing, and transfer balances from high-interest credit cards to lower-interest cards.

5. Take care with the length of your credit

Credit rating agencies also consider the length of your credit history. If you’ve had a credit card for a long time and managed it responsibly, that works in your favor. However, opening several new credit cards at once can lower the average age of your accounts, which pushes down your score. Likewise, closing credit card accounts lowers your available credit, so keep credit cards open even if you’re not using them.

6. Don’t use all the credit you’re offered

Credit scores are also based on how much credit you use compared with how much you’re offered. Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it. Occasionally opening new lines of credit can boost your available credit, which also affects your score positively.

7. Be patient

It can take time for your credit score to climb once you’ve begun working to improve it. Keep at it because the more distance you put between your spotty payment history and your current good payment record, the less damage you’ll do to your credit score

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Get Ready For Winter!!

Lynn Sanborn — Thu, 11 Nov 2010 22:38:00 GMT

It seems the winter is settling in early through much of the West Coast this year, with October frost and early winter warnings.The Seattle Times reported, “This year will bring the most intense La Niña conditions since 1955 … Meteorologists say more rain, colder temperatures and bigger snowstorms are likely.” Whether the meteorologists are right this year or not, now is the time to do some home repair so you can enjoy the winter inside your warm house.

Weatherizing your home should be more than just packing in your patio furniture, checking your furnace and cleaning out your rain gutters, though these make a big difference in preparing your home and avoiding December disasters. Weatherizing your home–especially in light of harsh warnings–will protect your investment from preventable damage, save money on energy costs and, most importantly, keep your home safe and warm for you and your loved ones throughout the winter season. Here is a useful checklist to manage your weatherization project.

Getting started: Check your toolbox to make sure you have all the materials you need for home maintenance in one place. This NY Times article provides a good list of the tools you’ll really need to maintain your home. After your toolbox is put together, you can confidently begin the maintenance on your home.

Insulation: According to the Sustainable Energy Info Fact Sheet “Insulating a home can save 45-55% of heating and cooling energy”. For the best results, your home should be properly insulated from the ceilings to the basement. However, if insulating your complete home is not in your budget, the U.S. Department of Energy states, “one of the most cost-effective ways to make your home more comfortable year-round is to add insulation to your attic.” By starting in your attic and progressively adding insulation to other areas of your home over time, you will avoid spending a large sum of money up-front.

Cracks & Leaks: Do a run-through of your entire house for cracks and leaks, from your roof to your baseboards. Winter weather is unpredictable. Whether your area gets rain, wind or snow, cracks in your house can lead to cold drafts or leaks that cause water damage. Do-it-Yourself.com reports, “The average house, even when well-insulated, contains cracks and gaps between building materials that add up to a hole about 14 inches square. All year long, a leaky house not only wastes energy, but can lead to water damage and provide a path for insects”. Depending on your house type, most cracks can be easily filled with supplies from your local hardware store in a do-it-yourself fashion. Use caulk to seal any cracks in the permanent building materials.

Windows & Doors: Another common place for heat leakage is in your windows and exterior doorways. Make sure seals are tight and no leaks exist. If you have storm windows, make sure you put them on before the cold season begins. This 5 minute video, How to Caulk Windows & Doors, demonstrates how to find leaks, pick the correct tools to use, and fill in the leaks. Don’t underestimate the difference some weather strips and a door sweep can provide in preventing drafts and keeping the heat in.

Rain Gutters: Clean your rain gutters of any debris. Buildup will cause gutters to freeze with ice, crack and then leak. Once you have removed the residue from the drains, test them by running hose water to make sure cracks and leaks have not already formed.

Pipes: Pipes are a number one risk in winter climates. A burst pipe can become a winter disaster in a matter of seconds. Remember to turn off your exterior water source and take in your hose. Internally, wrapping your pipes is a recommended precaution to take. This article from Insights, Natural Hazard Mitigation advises, “Vulnerable pipes that are accessible should be fitted with insulated sleeves or wrappings, the more insulation the better”.

Heating System: What is one thing gas fireplaces, wood burning stoves, and central air heating systems all have in common? They all need to be cleaned and maintained. Check and clean your indoor heating system thoroughly. This is important to avoid dangers such as house fires. If you use an old fashioned wood stove, make sure there is no leaks and that all soot build up or nests are removed. If a furnace is what you have remember to change the filters as recommended or clean out your reusable filters.

Fireplace & Wood burning stoves: Make sure to have chimneys and air vents cleaned early in the season if you are planning on warming your home with a wood-burning source. When your fireplace is not in use make sure to close the damper, some resources estimate an open damper can increase energy consumption as much as 30%.

Outside: As we mentioned before make sure you bring your patio furniture inside (or cover) for the winter- but don’t forget other, smaller items such as your tools, including a hose and small planting pot. These items can be damaged or broken in extreme cold. Clear out any piles around the side of your house, checking for cracks as you go so to avoid providing shelter for unwelcomed guests over the cold season.

If your property has large trees check for loose branches and call someone to trim back any items that may fall in your yard, on your roof or even damage a window.

Emergency Kit: Make sure your emergency kit is up-to-date with provisions, batteries, fresh water, food for animals, entertainment for kids, etc- especially if you live in an area prone to power outages.

When it comes to protecting our investments and our families’ safety “an ounce of prevention is worth a pound of cure” is a good philosophy. Your winter preparedness plan will fit your property, schedule and needs. What are some tips you have for preparing for winter? What are some of your favorite activities to do at home over the winter while weathering out a storm?

By Brittany Lockwood

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