Thursday, May 16, 2013

Housing and Mortgage Trends to Get Read for This Spring


By Polyana da Costa | Business Insider – Tue, Apr 30, 2013

Homeowners who endured years of declining home values will discover that the game has changed in their favor.  Find out The value of your home and other homes in your area. 

1. Fewer options, higher prices and bidding wars
With low mortgage rates and home prices gaining momentum, an increasing number of buyers are expected to shop for homes this spring. The good news for sellers: The inventory of homes for sale is shrinking, so they have less competition and more control of the situation. 

2. Loan modifications made easy — for some
Homeowners who are behind on their mortgages may get a hassle-free opportunity to reduce their monthly payments. 

Tuesday, April 23, 2013

Another Happy Client!



December 19, 2012

Dear Derek,

Thank you for your help in securing our mortgage.

We really enjoy our new home and would like to give our "kudos" to you and your staff!

Blue Water’s due diligence was extremely helpful and was a key to our success in getting the "property of our dreams". Thanks to Blue Water and its staff, we were able to secure an outstanding interest rate. We would definitely use Blue Water Mortgage Company in the future!

Blue Water Mortgage staff and expertise, plus personable service played a key factor in us securing our loan on-time stress free. We are recommending your services to our daughter’s family and will be recommending you and your staff to anyone of our friends and their friends as well.

Keep up the excellent service and don’t change a thing!

Thanks again to you, your staff and your company as a whole.

Sincerely,

Alan & Delena Smith

Tuesday, April 2, 2013

Experts Predict Path of Mortgage Rates in 2013

Reprinted from Foxbusiness.com


The consensus among mortgage lenders, economists and Bankrate's journalists, is that they expect the mortgage rates to be higher by the end of the year.

Here are some of the responses from mortgage experts when asked to predict what will happen with mortgage rates in 2013.


Dean Baker Co-director, Center for Economic and Policy Research, Washington, D.C.

I would expect mortgage interest rates to gradually edge up over the course of 2013 so that they are around 3.8% by the end of the year. This assumes that growth stays more or less on its current course, averaging around 2.5% for 2013. If this ends up being the case, people who are in a position to refinance their mortgage should try to do so now. In all probability, they will be looking at higher interest rates next year.


Michael Becker Mortgage banker, WCS Funding Group, Lutherville, Md.

Most forecasters are predicting that mortgage rates will rise in 2013. While that same forecast for higher rates has been made at the end of the last two years only to turn out wrong, I think that 2013 may be the year that forecasters are correct. Mortgage rates are already at all-time lows, so it's hard to see them dropping further. The Federal Reserve is doing all it can to keep mortgage rates low by buying $85 billion a month in Treasuries and mortgage-backed securities, so any rise in rates will be muted by their efforts. I see mortgage rates staying close to where they are now for the first half of 2013 and rising slightly through the remainder of 2013. If, however, the U.S. or global economy falters or the euro debt crisis worsens, there is a chance rates will hit new all-time lows in 2013. I think the risk of higher rates is greater than the chance that they hit new all-time lows, so I would be locking my rate in during the beginning of 2013 rather than hoping rates drop from their current levels.


Jay Brinkmann Chief economist, Mortgage Bankers Association, Washington, D.C.

The Mortgage Bankers Association's final forecast of 2012 predicts that the 30-year fixed-rate mortgage will average 3.9% in the first quarter of 2013, then gradually rise with an average rate of 4.4% in the final three months of the year. "Mortgage rates are likely to stay below 4% through the middle of 2013, principally due to the announced ongoing purchases of mortgage-backed securities by the Federal Reserve under its (third round of quantitative easing) program," Brinkmann said in a news release. "The Fed has committed to buying $40 billion of agency (mortgage-backed securities) per month until the labor market shows significant signs of improvement. Based on (the Mortgage Bankers Association's) originations estimate, the Fed will be buying 36% of all mortgages originated in 2013, and a much higher percentage of those swapped into agency MBS.

Given our expectation that originations will be front-loaded in the first half of 2013, the Fed's purchases during the second half of 2013 could approach 50% of all mortgages originated in the last six months of the year, obviously with the effect of holding down rates, although there is a possibility that the Fed could shift into Treasury securities before the end of 2013."


Polyana da Costa Senior mortgage reporter, Bankrate.com

Mortgage rates reached new lows numerous times in 2012. Don't expect a repeat in 2013. As rates hover near the bottom, they are much more likely to go up than they are to drop. Does that mean rates will spike next year? They could, but it's unlikely. Rates should remain below 4%, at least during the first half of the year. They won't rise significantly until the Fed feels like it's time to let the economy walk on its own. If the unemployment rate falls to 6.5% and the Fed decides to end its bond-buying spree, rates will climb fast. Homeowners who qualify for a refinance now should lock a rate soon. While we don't know whether rates will rise in 2013, we know they won't fall much further. As for homebuyers, they shouldn't decide whether it's time to buy a home or not based on rates. But if they feel like they are ready to commit to homeownership, they should move quickly to take advantage of the low rates while they last.


Barry Habib Vice president and chief market strategist, Residential Finance Corporation, Marlboro, N.J.

Look for a drop in mortgage rates toward 3% on a 30-year fixed-rate mortgage. This should happen during the first half of 2013. Weakness in China, a sluggish U.S. and the output gap are all contributing factors. Worldwide money printing will also add to the low-rate environment. But the second half of the year may include a move higher in rates.


Dick Lepre Senior loan officer, RPM Mortgage, San Francisco

Since we had record-low rates in 2012 and the long-term technical is about to turn bearish (lower prices, higher yields), the obvious call is for higher mortgage rates in 2013. Investors believe that the "fiscal cliff" issue is over. While I may scoff at the importance of the fiscal cliff, the fact is that concern about it did affect markets and drive Treasury rates unnaturally low. I will guess that there was a fiscal cliff premium to price, which drove yields down an extra 0.2%. Assuming that inflation remains well-contained, the attention of fixed-income security buyers will become quality-based. Fiscal irresponsibility in the European Union is part of what drove rates on fixed-income securities down in the United States, and the problem there is not going away anytime soon. In the U.S., in addition to standard $1 trillion-plus deficits, we are facing entitlements, which have an underfunding with a present value of about $78 trillion. What we have is fiscal policy in the EU, Japan and the U.S. all being seriously mismanaged. What will affect interest rates in 2013 is the market perception as to which of these is the best of the bad.


Holden Lewis Assistant managing editor, Bankrate.com

Mortgage rates are going to rise in 2013, and the main reason is that the economy will start to heat up. More consumers and small businesses will borrow money, more people will buy houses, more people will have jobs, and interest rates will rise. How sure am I of this? For the past four or five Decembers, I have felt confident that mortgage rates would rise in the coming year. In that time, mortgage rates continued trending downward. A year ago, I felt sure that rates would go up in 2012. The 30-year fixed began this year at 4.18%, and now it's almost three-quarters of a percentage point lower. So I'm not wildly confident about my prediction. Nevertheless, when rates are this low -- around 3.5% -- it's hard to believe that they could go lower. The economy seems to be gathering steam, and that's why, this time, I really do think rates will rise in the coming year. Not by much, though. I still think rates will be 4.5% or below a year from now. Your home-purchasing decision will be driven more by what's happening to prices than by what's happening to mortgage rates.


Greg McBride, CFA Senior financial analyst, Bankrate.com

Had we gone over the fiscal cliff for any length of time, bringing a recession in 2013, mortgage rates would have gone lower. However, the cliff was averted, and we should see a nice bump in economic activity during the first quarter, with continued slow growth through the year. Under this scenario, mortgage rates would trend higher but not a whole lot, as the Fed's stimulus efforts aim to restrain any increase.

Wednesday, March 6, 2013

January Existing-Home Sales Hold with Steady Price Gains, Seller’s Market Developing


Reprinted from Realtor.org

WASHINGTON (February 21, 2013) - Existing-home sales edged up in January, while a seller's market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of Realtors®. Sales rose in every region but the West, which is the region most constrained by limited inventory.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.4 percent to a seasonally adjusted annual rate of 4.92 million in January from a downwardly revised 4.90 million in December, and are 9.1 percent above the 4.51 million-unit pace in January 2012.

Lawrence Yun, NAR chief economist, said tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Total housing inventory at the end of January fell 4.9 percent to 1.74 million existing homes available for sale, which represents a 4.2-month supply2 at the current sales pace, down from 4.5 months in December, and is the lowest housing supply since April 2005 when it was also 4.2 months.

Listed inventory is 25.3 percent below a year ago when there was a 6.2-month supply. Raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.

"We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth," Yun explained.

The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases; that last occurred from July 2005 to May 2006. The January gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

Distressed homes - foreclosures and short sales - accounted for 23 percent of January sales, down from 24 percent in December and 35 percent in January 2012. Fourteen percent of January sales were foreclosures and 9 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in January, while short sales were discounted 12 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December; it was 3.92 percent in January 2012.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said homes are selling faster. "The typical home is selling nearly four weeks faster than it did a year ago," he said. "In this environment, Realtors® can help buyers strike a balance between moving quickly and protecting their interests, such as making offers contingent upon a satisfactory home inspection and obtaining a loan; of course, a loan pre-qualification may help too."

The median time on market for all homes was 71 days in January, down from 73 days in December and is 28.3 percent below 99 days in January 2012. Short sales were on the market for a median of 94 days, while foreclosures typically sold in 47 days and non-distressed homes took 75 days; 31 percent of all homes sold in January were on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in January, unchanged from December; they were 33 percent in January 2012.

All-cash sales were at 28 percent of transactions in January, down from 29 percent in December and 31 percent in January 2012. Investors, who account for most cash sales, purchased 19 percent of homes in January, down from 21 percent in December and 23 percent in January 2012.

Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December, and are 8.5 percent above the 4.00 million-unit level in January 2012. The median existing single-family home price was $174,100 in January, up 12.6 percent from a year ago.

Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December, and are 13.7 percent higher than the 510,000-unit level a year ago. The median existing condo price was $169,600 in January, up 9.4 percent from January 2012.

Regionally, existing-home sales in the Northeast increased 4.8 percent to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago.

Existing-home sales in the Midwest rose 3.6 percent in January to a pace of 1.16 million and are 17.2 percent higher than a year ago. The median price in the Midwest was $131,800, which is 8.6 percent above January 2012.

In the South, existing-home sales increased 1.0 percent to an annual level of 1.96 million in January and are 14.0 percent above January 2012. The median price in the South was $152,100, up 13.4 percent from a year ago.

Existing-home sales in the West fell 5.7 percent to a pace of 1.15 million in January and are 5.7 percent below a year ago. The median price in the West was $239,800, which is 26.6 percent above January 2012.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.

# # #

NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1 Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Annual Revisions: Each February, NAR Research publishes revisions to existing-home sales, which incorporates a review of seasonal activity factors to fine-tune historic data for the past three years based on the most recent findings. Revisions were made to monthly seasonally-adjusted annual sales rates for 2010 through 2012, as well as the month's supply data. There are no revisions to inventory or price data. Those revisions are posted at: www.realtor.org/topics/existing-home-sales/data.

Existing-home sales differ from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample - about 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2 Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

3 The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to a seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR's quarterly metro area price reports.

4 Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR's Realtors® Confidence Index, posted at Realtor.org.

Tuesday, February 5, 2013

10 great winter home projects

By Leah L. Culler
Reprinted from MSN Real Estate


Feeling cooped up inside your house? Now’s the perfect time to tackle indoor projects that make your home more livable, from changing furnace filters to regrouting bathroom tile to dye-testing your toilet.


When it's cold and wet outside, it can be tempting to curl up in front of the fireplace with a good book and a cup of cocoa. But winter is a great time to complete some indoor home projects. Some of these tasks require only a few hours — even minutes — of your time; others will need a much larger investment of time and, in some cases, money.

For most of these projects, we'll give you a rough idea of what special skills, if any, you'll need to complete them, as well as an estimate of the cost and time involved. This is not a how-to, however. You'll want to do your research before you drag out the power tools and try to make "improvements."

Easy and cheap

Let's start with a few quick, simple projects that anyone can do. Yes, even you.


1. Change your furnace filter.

Ideally, you should have completed this task, along with a few other winter prep essentials, before the chilly weather arrived. Filters last about three months when you're using your furnace regularly, so you may need to do this more than once if it's an especially long and brutal winter.

Skills: Any homeowner can do this. You'll just need to note the size and type of filter you're replacing before you go out and buy a new one, and make sure the new one is facing in the same direction as the old.
Cost: You can find furnace filters for as little as $10. High-quality filters will catch dust mites and other allergens and are often worth the extra cost if you're prone to allergies, says David Lupberger, home-improvement expert for ServiceMagic and past president of the Master Builder Group Inc., a design/build remodeling company.

Time: This task should take just a few minutes once you have purchased a replacement filter.


2. Wash your windows.

Even if you're stuck indoors, that doesn't mean you can't improve your view of the winter wonderland outside. Winter's a great time to wash the inside of your home's windows. You can tackle the other side of the glass when it's bearable to step outdoors.

Skills: All you need is some basic hand/eye coordination, and possibly a decent sense of balance if you'll be cleaning tall windows using a step stool.

Cost: Most homeowners have window-cleaning supplies on hand. Use crumpled newspapers to polish your windows until they shine.

Time: Lupberger estimates you'll spend 15 to 30 minutes for an average window. Break it up into several shorter sessions if you're short on time and/or have lots of windows.

3. Insulate your water pipes.

Adding insulation will save you money by reducing heat loss in the pipes that carry hot water. You also won't wait as long for hot water when you turn on your faucet.

Skills: Any homeowner can do this.

Cost: You can insulate pipes by wrapping them in several layers of newspaper and duct tape, or you can buy pipe insulation made of foam or other materials. The cost is minimal, typically around 30 cents per foot.

Time: A few minutes to an hour or so, depending on how many pipes you have and the type of insulation you use.

4. Dye-test your toilet.

Monica Ryan, president of Village Plumbing in Houston, says most people whose toilets are wasting water don’t even know it.

"A toilet that is constantly running wastes a lot of water and could cost little to repair," she says.


Put five drops of food coloring in your toilet’s tank, wait 10 minutes and see if the color comes into the bowl. If it does, you know you have a leak. The most common cause for a leak is a defective flapper, the rubber mechanism that allows water to exit the tank when you flush. That 10 minutes of your time could end up saving you a lot of money on your water bill.

Skills: No special skills required.

Cost: All you need is some food coloring, which many homeowners will likely have on hand.

Time: Just 10 minutes.


Medium-difficulty projects

These tasks will require a bit more of your time, and you may need to do a little research before you get started to be sure you understand all of the steps involved. Don't be afraid to hire a professional to consult on a do-it-yourself job or even to get you started.

If your project involves plumbing or electrical work, it's probably a good idea to get a permit.


"A permit means someone is inspecting your work and making sure it is being done to county codes," Lupberger says. "When they know a homeowner is doing it, the inspector will take more time and explain how to do things."

5. Regrout your bathroom tile.

This project is a little more labor intensive, but definitely doable, Lupberger says. You may want to regrout the tile because it's old and dirty, or because you've decided to go with a different color of grout. Either way, you'll first want to clean out the old grout.

"My first stop would be a tile store," Lupberger says. 'Tell them what you're trying to do and they'll get you the right tools."

You'll be using some version of a grout scraper, which is designed to remove the loose and aging grout from between tiles. You'll also be using a lot of elbow grease.

"It's hard work," Lupberger says. "You're trying to manually remove all that old grout, because you do have to clean all of those gaps before you regrout. You're scraping up and down every grout line."


Be careful not to scratch the tile as you're cleaning out the grout. Once you've scraped out the old grout, remove it by vacuuming and wiping down the tiles. Then you'll usually use some kind of primer to prepare the surface before you go in with new grout.

Putting in the new grout will be much faster than removing the old. Once your grout is mixed, you'll trowel it onto the entire surface, working it into the joints between tiles. Let it sit for 20 or 30 minutes — read the instructions on the grout you purchased — then wipe down the tile surface, leaving the grout that is embedded in the joints. Once it sits for 24 hours or so, you can apply sealant.

Skills: Patience and a steady hand.

Cost: Grout scrapers start at about $13; a pound of grout powder starts at $2 or $3.

Time: A handy homeowner can complete this in a weekend, including drying time. Just remember that your bathroom will be unusable while you're working.


6. Paint a room or two

Whether it's time for a new coat or you're sick of the pale pink the last homeowner loved, painting can be a quick and inexpensive way to renew and change a room. Painting is a perfect winter project, but it can be time-consuming. And Lupberger warns that even water-based paint has a smell.

You can ask a local paint store for help selecting a paint color and deciding how much paint you'll need to cover the walls in a room. They can also help you pick the right brushes and rollers.

Remove curtains, light fixtures, electric outlet covers and as much furniture as you can from the room you'll paint. Protect the floors and any remaining furniture with dropcloths and tape off doorways and windows. Fix any holes and cracks before you start painting the room, and be sure the wall is clean and smooth. Depending on the paint you use, you may want to apply a layer of primer. If you're painting the ceiling, it's usually best to do that before you start on the wall.

Make sure you allot plenty of time for your painting project and remember that any furniture you move out of the room will probably stay out of the room for a day or two, depending on how many coats of paint you apply and how long it takes to dry; read the label on the paint you purchase.

Skills: Previous painting experience is helpful, but a patient first-timer can get the job done.

Cost: Varies. A gallon of paint averages $20 to $40. Plan on one gallon per 350 to 400 square feet. You may also need to purchase other supplies such as primer, brushes, rollers and dropcloths.

Time: A day or two per room, including drying time, depending on the size of the room and the number of coats of paint you apply.

7. Install flooring.

Pergo and laminate flooring is designed to go on top of an existing floor and is a great project for do-it-yourselfers, says Arthur Walters, a flooring contractor in Orange County, Calif.

Walters says he prefers Pergo to laminate, and encourages homeowners to spend a little more per square foot to get higher-quality flooring. Be ready for a small learning curve if you've never installed a floor yourself.

"I would recommend taking one of those classes at a home-improvement store," he says.

Installing hardwoods is a lot more complicated and time-consuming, but Walters says it's still doable if you're willing to put in the time and effort to do it right.

"It takes practice and practice and practice," he says. "If they took one of those classes where they can tell you the best place to start and what to look out for and which areas to undercut, then you can see what you're getting into before you make your decision."

Installing carpet may be a job best left to a professional. It involves putting down carpet tack, seaming the carpet in the joints and stretching it. Lupberger says do-it-yourselfers without previous experience are not going to be able to pull it off.

"Buy the carpet and get it in the house, then hire an installer," he says. "You're going to just go crazy if you see ripples where it's not stretched properly, and you'll end up paying someone to come out and fix it."

If you have commercial carpet with rubber backing that just lies over a floor, you can do that yourself, he says.

Skills: Patience

Cost: The price for flooring ranges widely, but starts at $1 or $2 per square foot for laminate. Walters warns against going with the very cheapest, however.

Time: Plan to spend at least a weekend installing Pergo or laminate. "The first time they do it, even a small bedroom is going to take a couple of days," Walters says.

8. Install new lighting.

Justin Merritt, owner of JM Electric Inc. in the Denver area, says homeowners can do basic electrical work themselves, but that "caution must be taken to do things correctly and not cut corners."

"I see a lot of simple mistakes made that do not seem to matter to someone who is not a trained professional, but can become a major safety hazard," he says.



He advises homeowners to get a how-to book and brush up on methods and materials to keep themselves safe from electrical hazards.

If you're taking on an electrical project at home, including installing new lighting or changing out a switch or wall outlet, do your homework. Merritt says to be aware of these four things:


  • Shut off the power, then test to be sure the power is off. Some rooms in your home may have more than one circuit, so don’t trust that the power is off just because one light in the room no longer works.
  • Always read the instructions completely.
  • Never cut wires short; this creates loose connections, which cause most electrical fires.
  • Don't leave green, bare or grounding wire disconnected.
  • Pay careful attention to how a light fixture is installed so you can put the new one in correctly, Merritt says.


Skills: Basic understanding of electrical wiring, and willingness to do your homework.

Cost: Depends on the light fixture being installed.

Time: An hour or two.

9. Replace a faucet.

Ryan says most faucets can be replaced by a handy homeowner. She suggests downloading the manufacturer's instructions online so as not to damage the faucet body by using incorrect tools or parts.

"Remember that replacing the insides to the faucet is the easy part," she says. "Acquiring the correct part, locating the correct tool and resisting the temptation to pry out the old part or bang on the faucet to loosen the old part is the more difficult aspect of the repair."

A professional at your local hardware store can help you determine which faucet fixture will be the correct fit for your sink and be sure you have the right tools for the job. Videos online, including one from Home Depot, can walk you through each step of the process.

Always remember to turn off the water source before attempting any repair, Ryan says.

Skills: No special skills needed; just be sure that you know what you're doing and that you have the correct tools before you get started.

Cost: The cost for a bathroom faucet ranges from less than $10 to well over $100.

Time: A couple of hours, after you have the new faucet and all the tools.

10. Replace a toilet.

While a homeowner could complete this task himself, Ryan warns that it requires a strong body to lift a toilet, and a handy mind to complete an installation.

"Toilets are made of china and can easily cut someone, so the utmost care must be displayed when working with a toilet," she says. "I would not suggest this to a 'weekend warrior' unless they are committed to spending a lot of time and have someone to help them."

If you are committed to do it, do your research. Watch a video online, read a how-to book or take a class. Again, remember to turn off the water to the fixture. You'll also need to drain the tank by flushing the toilet to remove excess water.

Skills: Physical strength, patience, previous experience.

Cost: Toilets cost from less than $100 to well over $2,000 for fancy, designer models.

Time: To be on the safe side, plan to have your toilet out of commission all weekend.

3 more projects for the handiest DIYers.

These projects are only for homeowners who have experience or are willing to take the time to acquire the knowledge needed to get the job done.

1. Tile a bathroom floor. This project is time-consuming and requires a lot of attention to detail. You'll lay the tile out on a dry floor first to determine the layout, then mortar, lay tile, grout and seal.

2.  Finish a basement. Finishing a basement requires knowledge of framing, electrical work and insulation.  "If somebody wants to, you bet you can do it," Lupberger says. "Most of your weekends are gone, but you can finish it in a winter."

3. Refinish a hardwood floor. This is one that Lupberger doesn't recommend for homeowners, unless they have previous experience. It's a dusty, dirty project and usually involves a very powerful floor sander. "If you've done it before, more power to you," he says.

Lupberger and Ryan advise homeowners to expect a project to take at least twice as long as your original estimate, and require an extra trip or two to the hardware store.

"Any project is doable if you have the correct tools and experience," Ryan says. "That is what a homeowner pays a professional to provide. If you do not have the correct tools or are not willing to acquire the tools or the knowledge for your project, then I would leave it to the professional and do something you enjoy."

Thursday, January 24, 2013

January home-maintenance checklist


By Leah L. Culler of MSN Real Estate
Reprinted from MSN.com

The most important job this month is to prevent water damage from bursting pipes and leaks in your home.

The dead of winter is the time for the greatest vigilance in your home-maintenance routine. The most important job this month is to head off damage to your home from water and dampness from a number of sources:

• Groundwater and rain seeping into your home.

• Leaky pipes inside the walls.

• Pipes bursting from freezing and thawing.

Take a tour

After a winter storm, get outside as soon as you can. Walk around the house, checking for damage from wind and broken tree limbs. Use binoculars if you can't see your entire roof. Scan for loose or missing shingles

Give special attention to vulnerable pipes — indoors and out — that are exposed to the cold, including hose bibs, pipes in outside walls, garden sprinkler lines, swimming pool pipes and pipes in unheated attics, basements and garages. A frozen pipe needs only a one-eighth-inch crack to leak as much as 250 gallons a day.

If practical, insulate any pipes exposed to the cold. Ask hardware-store personnel for the best materials for the job.

Seal any leaks that are letting cold air in, especially around dryer vents and pipes and where electrical wiring enters the house.

Search for uninsulated water supply lines in the attic, garage, basement and crawl spaces and in bathroom and kitchen cabinets adjacent to outside walls. During a cold spell, open cupboard doors in the kitchen and bathroom so the home's heat can reach them.

Keep doors shut tight in the garage and outside closets and cupboards during freezing weather.

When temperatures drop below zero, open both hot and cold faucets a trickle to relieve pressure in the pipes.

Locate your home's water shut-off valve; learn how to turn off the water quickly in case a pipe bursts.
If you'll be gone in freezing weather, even overnight, ask a friend or neighbor to check on your house for broken or leaking pipes. Show him or her how to shut off the water.

Keep temperatures inside the house at 55 degrees Fahrenheit or above, night and day, even when you're gone.

Promise yourself that when the weather improves you will add to the installation in the basement or crawl space and attic.

Leak prevention

Install small, battery-powered individual leak alarms, also called flood alarms, under the refrigerator, kitchen and bathroom drain pipes, dishwasher and laundry appliances and behind toilets. Cost: around $10-$15 each.

Check to make sure your sump pump is operating properly. If it has a battery backup, unplug the pump from the wall and test it.

Look for pests seeking shelter

Cold weather drives mice and insects into the walls of your home. Even unheated parts of the house invite these pests. Insects need only a crack to enter, and mice can get in through a dime-sized hole. Houseflies, particularly, pose a health risk because they can transmit disease.

  1. Seal any cracks where pests enter.
  2. Empty compost and garbage frequently.
  3. Keep food covered and put away; keep counters clean.
  4. Fix leaky pipes quickly.
  5. Pour boiling water down bathroom and kitchen drains monthly, preventing the buildup of bacteria-laden sludge; scrub removable drain covers weekly.
  6. Check basement, attic, crawl spaces and the back of cupboards and cabinets for mice droppings or holes. If you find evidence, install traps immediately or call a pest-control service.
  7. Pick up and dispose of outdoor pet waste promptly; turn compost piles frequently.

Make an inventory

An inventory is a record of your home's features, conditions, furnishings and valuable possessions. If your home is damaged or destroyed by fire, flood, mudslide or other disaster, you can use the inventory to substantiate your insurance claim to get the maximum replacement value for what was lost.

Your inventory doesn't have to be fancy. You can get started and add to it later. Supplement your record with photos or video. The Insurance Information Institute has free software for making a room-by-room home inventory.

Tips:

  1. Save receipts for valuable home purchases and for work you have done to upgrade the interior or exterior of your home.
  2. Keep a copy of your inventory in a bank safe-deposit box or on a hosted server online, so you can get it even if your computer is destroyed.

Here are a few more winter tasks:

Check the labels on the switches in your electrical circuit-breaker panel and make new labels if necessary.

Check your furnace filter monthly in the winter to see if it needs replacing.

Use a vacuum-cleaner tool or a long-handled brush to clean under and behind the refrigerator, including the coils.

Clean lint from under laundry appliances, especially the dryer, carefully work the cleaning tool down into the lint filter; outdoors, clean the dryer vent outlet, reaching as far as possible into the pipe.

Gather product documents and warranties into a folder. Go through the contents and discard outdated materials.

Walk around inside the house with a screwdriver, pencil and paper. Tighten any loose knobs and attachments and list repairs to tackle later.

Examine the ducts of your forced-air furnace and seal any leaks with duct tape.

Thursday, January 10, 2013

Case Shiller: Home prices up 4.3% latest 12 months


By Julie Schmit
Reprinted from USA Today

Home prices rose 4.3% the 12 months ended in October, according to a widely watched survey, outpacing analyst expectations and underscoring a strengthening housing recovery.

Still, the Standard & Poor's Case-Shiller index of 20 major cities, out Wednesday, dipped 0.1% in October from a month earlier. That was expected given that home prices tend to be lower in fall and winter than in spring and summer.

Year-over-year trends are more meaningful. In 19 of the 20 cities surveyed, annual returns in October were higher than September, the data show.

"It is clear that the housing recovery is gathering strength," said David Blitzer, chairman of the home price index committee.

He also says it's clear that housing is now contributing to the broader economy. Last week's final revision to third-quarter GDP showed that housing represented 10% of the growth while accounting for less than 3% of GDP.

Chicago and New York were the only two cities with negative annual returns in October, down 1.3% and 1.2% respectively, the Cae-Shiller survey says.

In Phoenix, which has led the recovery, home prices rose for the 13th month in a row, posting an almost 22% one-year change. Detroit, which also fell severely during the downturn, posted a 10% annual gain.Minneapolis followed at 9.2%.

Home price increases are being driven by rising demand, strong investor interest, a shrinking inventory of homes for sale and fewer foreclosed properties, which tend to sell at a discount to others.

The supply of existing homes for sale fell in November to 4.8 months, based on the current pace of sales. That was the lowest level in more than seven years, the National Association of Realtors reported last week. Realtors consider a 6-month supply to be a balanced market between buyers and sellers.

At the same time, existing home sales grew last month to the highest level in three years, NAR said.

The Case-Shiller numbers are similar to those reported by other home price trackers.

Mortgage watcher Lender Processing Services reported Wednesday that its October home price index shows national home prices up 4.3% from a year ago.

The housing market helped pulled the economy into recession in 2007 but it has emerged as a positive contributor for the past six quarters, government data shows.

Higher demand — and higher prices — are inspiring more home builders. The National Association of Home Builders expects housing starts to be up 25% this year from 2011. That recovery will come off the worst year for new home building in more than 50 years. Builders expect the recovery to be slow and stronger in some cities than in others.