how about administering a comprehensive test to legislators on the content of a bill before a vote is called. This is incredibly short sighted and as so often is the case, not reflective of an understanding of a big picture. The chilling effects of the energy inspector piece below could suck as much equity out of the housing market as the current mortgage crisis.
Real estate is local when it comes to market conditions and market trends. Real estate differs from region to region in styles, architecture and amenities generally speaking. For instance; in Florida fireplaces are not the norm whereas in cold winter areas such as Colorado, fireplaces are a standard addition to a home. In some areas of our country people have wood burning stoves and others have coal burning furnaces. There are areas of our country such as here in Florida where you would not dare live without Air Conditioning but in many homes in Washington for instance, air conditioning is more of a luxury than a necessity.
So when we are discussing the effects of cap and trade in your real estate business you will need to take into account the region in which you live as some areas will be more effected than others.
You can move your mouse over the map and see who voted, what party they belong to and their district. You will be able to see that no matter whether they were democrats or republicans if they are in the farm country of America, high manufacturing areas of America, low energy bills of America and the heartland of America- they voted NO on this bill and for very good reasons.
"For a household of four, energy costs go up $436 that year, and they eventually reach $1,241 in 2035 and average $829 annually over that span. Electricity costs go up 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent by 2035. The cumulative higher energy costs for a family of four by then will be nearly $20,000.
But direct energy costs are only part of the consumer impact. Nearly everything goes up, since higher energy costs raise production costs. If you look at the total cost of Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600." Heritage Foundation.
You will notice that the states where the votes were yes are also the states that already have the highest energy bills. The states that voted no are mostly states with presently low energy bills.
Instead of calling this to Cap and Trade- We can really call it the Tax On Electricity Bill.
How does this information pertain to real estate agents? If you live in the lower energy pricing states you are going to be seeing huge increases in household energy bills. If you live in states that are coal powered or oil powered you will see the largest increases ever in your energy bills because those energy sources are going to be punished with taxation.
How is that going to effect home prices?
How is that going to effect movement in and out of your state?
How is that going to effect your real estate office utility bills and who is going to pay for this?
The House is at it again. This was a 1,300 page bill and again as with so many large bills was not read by most of those that voted yes or no. What is it that they don't get? The American people expect our leaders to read what they vote on.
So what else is tucked away neatly into this bill that perhaps no one knows the full implications of yet?
How about the Federal imposition and takeover of building codes? Your local planning and building offices will not be qualified for any Federal funding of any kind unless they adopt what the FEDS say is the new energy efficient building standards. This will create higher prices in building new homes which is then passed on the homebuyers and then you as a real estate agent are also effected because less buyers will be able to afford to buy a new home built . Not to mention having to wait for the Feds to come and inspect the builders and the homes.
How about the new Federal EnergyNazis Inspectors who will come and rate your home before you can sell your home. So before you can list a home for sale, the seller will have to wait for the Federal inspectors to come out. DMV lines anyone? Once that inspector comes out, he or she will give the home an energy rating. If the home does not meet the guidelines the seller will be required to do the work necessary to bring the home up to energy standards before they can sell the home! Can we say money? Does that mean that there will be homeowners who will become prisoners in their homes because they can not afford to make the energy repairs that the feds require? Is that an invasion of your privacy as well as an attack on your property rights?
Hmmm, how is that going to effect short sales where the seller has no money to make the repairs and adjustments?
How is that going to effect your ability to get listings in a timely manner?
How is that going to effect your seller who is about to lose their home in a foreclosure?
How is that going to effect the seller who has to relocate for their job?
How is that going to effect the estates with heirs having to do these repairs and such when there won't be any money until the estate is sold?
I wonder if our House of Representatives and our Congress men and women EVER thought to actually ask us in the field working this business day in and day out how these bills will effect the housing market?
Of course, the US will be living Cap and Tax while the real perpetrators of dirty air like China and India get off scott free. There will be an unfair advantage in pricing products and manufacturing to the point that if a US company even stands a chance of staying in the manufacturing business will have no choice but to move their company oversees which in turn will cause a massive layoff of people increasing the already high unemployment problem we are facing in our country.
How will the unemployment effect your real estate business?
How will the unemployment effect the REOs and massive foreclosures in your community?
How will the unemployment effect home values as you get more and more vacant properties in your area?
If you are an agent in America's farmland you will begin to see farms no longer being able to produce a profit. Farms use a lot of energy. Energy use will be punished. This is why nearly every politician from a farm land state no matter what party they are affiliated with voted no to this bill. Their districts will suffer terribly. As this happens we will be buying more and more produce from other countries with far less health standards than our own. I don't trust foods, especially produce from China or other countries except Europe. But we don't import our veggies from Europe!
How is this going to effect your real esate business if you live and work in a farm land state?
When it comes down to the nitty and the gritty about this bill you must remember that GE is the biggest supporter of this bill. They stand to make billions of dollars from the passage of this bill. The politicians voting yes on this bill, many of them are getting paid to vote yes. And Al Gore will become the very first GREEN billionaire. It is just too bad that he is not a real capitalist. He could not become a billionaire playing fair and square. Instead, he has an unfair advantage, legislation to make him filthy rich. Not exactly the free market way. It is all about the money.
Contact your Senators now to vote NO now. Click on this link to find your Senators and contact them by email, phone and fax today. Let them know how this is going to effect your business and your community homeowners and buyers. Pass this on...
Save Listing A home designed for entertaining. Indoor and outdoor living at their best here in the Village of Whispering Pines. You will love all that this special home has to offer, and at this unbelievable price it may well be the best buy in the county! Begin your tour of this terrific home in the beautifully updated kitchen, gorgeous granite tops and backsplash set off the ginger glazed maple cabinets. Be sure and notice the under-cabinet lighting, the double undermount stainless steel sink, granite-topped breakfast bar, Hansgrohe HighArch Swing pull-out dual spray faucet; Whirlpool kitchen appliances include dishwasher, Stainless ceramic top Range/Convection Oven, Stainless Stainless microwave, side-by-side refrigerator/freezer with cubed/crushed ice & water in the door: this sunny kitchen is one you have dreamed about, and it shares the sunlight with a spacious dining space with garden window and a vaulted ceiling family room. Enjoy the warmth of the gas logs brick fireplace and the convenience of the granite wet bar. And from here catch a glimpse of the beautiful, private backyard with sparkling in-ground pool, patio and pool surround, and views of Whispering Woods 5th hole beyond the yard. Add the formal dining room, living room and sunny Carolina room and you have a home designed for entertaining. A master bedroom and bath, with twin vanity sinks, jetted tub and separate tiled shower, a second bedroom and a spacious, ‘wired' office round out the main floor of this fabulous home. Laundry room, roomy pantry cupboards, half bath and extra large two car garage are also found on the first floor. The lower walkout basement is full of surprises: additional double door entrance, walkout, covered patio area, mud room, windows, 36" wide doors, Den, Game/Exercise/Media Room, plumbed and wired for future galley Kitchen, pantry, large storage room (phone & electrical outlets), Bedroom(s) have air conditioned large walk-in closets, bathroom has two mirrored medicine cabinets, double sinks, shower, vanity table, large linen closet, and second laundry room. Perfect as a guest suite, your teenagers' rooms, or a mother-in-law suite, this level offers nearly 2000 square feet of living space.
Golf views from EVERY window in this charming cottage! Beautiful built-ins flank the wood-burning fireplace in great room.Formal Dining Rm with tray ceiling and moldings. Double pocket doors to bright Carolina rm. Overlooks professionally landscaped yard and tee boxes of Whisp Wds par 3. Kitchen, dining rm, Carolina rm, and great room have handsome hardwood floors thru-out. Ceiling fans, vaulted ceilings. Bonus rm is perfect guest suite, w/ full bath and w/i closet. Oversized garage w/ plenty of storage.
Yesterday a long-awaited closing was set to take place. The contract was written before the end of last year, but the seller needed several months to arrange her relocation, so we put a closing date almost 4 months out. A lovely home, in excellent shape, happy seller, excited buyers, $435,000 price tag and a VA mortgage. The walk-through was done, HUDs were approved, papers were signed, when the lender said "WHOA....we don't like this language on the termite inspection. We are not going to fund the loan until that is fixed."
The termite inspection showed no sign of infestation, but the last line, that refers to conditions conducive to termites referenced moisture damage to a piece of brick mold to the left of the main door.
You should know the lender had had this very termite report in hand for about 12 days--but apparently no one cared about that reference until yesterday, because it was never mentioned until everyone thought the deal was done. The selling broker's office pulled a bright white bunny out of this ridiculous hat and got the home inspector to go out and fix it, create an invoice and satisfy the lender.
The punch line is the "piece of brick mold to the left of the main door" is a piece of wood trim about 4" x 2.5" by .5" deep. The picture below is actually a little bigger than the chunk of wood that some overzealous underwriter was going to stop a sale because of. The damage was about two inches wide, by half an inch high.
So glad we have these folks protecting our buyers from getting over their heads in costly repairs.
The recently passed 2008 Housing and Economic Recovery Act has created a unique opportunity for seniors: the ability to purchase a home with a reverse mortgage in a single transaction. Reverse mortgages have been around since 1987, when they were originally established by the Housing and Community Development Act as part of the U.S. Department of Housing and Urban Development (HUD). They have provided a way for many seniors to stay in their homes while tapping the equity of those homes. A reverse mortgage, for those of you who have heard the term but are a little fuzzy on what it means or how it works, provides cash based on the equity in a home, and is not paid back during the time you live in and own the home. Traditional products have provided the equity in a line of credit or monthly payments to the home owner, in exchange for a lien on the property that is paid back when the home is sold.
Effective January of this year, thanks to the Housing and Economic Recovery Act, it is now possible to purchase a home with a reverse mortgage in one transaction, with the only FHA guaranteed reverse mortgage, called a Home Equity Conversion Mortgage, or HECM, in this case and HECM for purchase.
Let's consider a scenario: Your parents, both age 70, are ready to downsize and move into a more manageable home. They have equity in the home they are now in and expect to net $300,000. The home they have their eye on is only $250,000, a nice comfortable ranch, with everything they need at this stage of their lives. As they are on a fixed income, they hope to avoid mortgage payments, and so intend to pay cash. In a traditional scenario, they would sell and use the proceeds to purchase and keep the difference as part of their retirement savings. With an HECM they could use as little as $94,641 of their proceeds to purchase their $250,000 retirement cottage and live payment- free. The balance of their proceeds from the first sale can be used to enhance their retirement lifestyle. Instead of $50,000 cash on hand, they have $205,359, and no worries about mortgage payments. The HECM loan is repaid when they sell the home. The loan also becomes due if they permanently move to a new principal residence, or the last borrower fails to live in the home for 12 months in a row. An example of this situation would be if the last borrower were to have a 12-month or longer stay in a nursing home. At the time of sale, the principal, interest (at a fixed rate in this scenario) and the FHA insurance premium are paid. Any equity above that goes to the homeowner, or their estate. In the scenario above, assuming 10 years in the house and 4 percent annual appreciation, they would receive $58,930 at the time of sale. That means they would have lived in the house for about $3,600 a year. (Their $205,359 cash, invested at just 1.75% would pay more than that!) And the FHA insurance guarantees that the total debt can never be greater than the value of the home, so it can never create an economic burden on the heirs.
In these crazy economic times I can think of a thousand scenarios where this product makes terrific sense. For instance, if health issues have created a situation that has affected a senior buyer's credit score-with an HECM the buyer DOES NOT HAVE TO MEET ANY CREDIT QUALIFICATION REQUIREMENTS. And what if the current housing situation has put downward pressure on the price of their existing home and their net is going to fall short of what they need to buy? An HECM for purchase may be just what they are looking for. You can find an HECM for purchase calculator on my website at www.jillsellspinehurst.com. Select "Is Reverse Mtg. for Me" from the column on the left.
If you or someone you know is 62 years old or older, and facing a retirement not quite what it was designed to be, you may want to consider the value of the peace of mind that this product offers. For more details or to see if you qualify, I would be happy to discuss the options with you. Feel free to give me a call any time at 910-315-9977.
There appears to be a new product in the reverse mortgage arena that may be a lifesaver for baby-boomers looking at a retirement that is different than the one they designed because of the market turmoil and erosion of capital and real estate values. They can purchase a home with a reverse mortgage and an FHA guarantee.
When Congress passed, and the President signed into law, the Housing and Economic Recovery Act of 2008 (HERA) it increased the loan limits for the FHA Home Equity Conversion Mortgage (HECM) product and authorized HECMs for home purchase.
Here's a scenario: Your clients, at least 62 years old, have taken a hit in their retirement account over this last year of market turmoil. They would prefer not to carry a mortgage and they aren't going to realize what they had planned on out of their current home. Besides all of that, for some reason their credit has been adversely affected. Using the new improved FHA HECM, they can use the cash out of their current home to create an equity position in a home adequate to allow the creation of an HECM. With as little as 30% of the home's cost, and no credit qualifications (the home has to qualify, the buyer doesn't!) they can move in and live there with no mortgage payment until they move on or die. Insurance associated with the HECM is part of the package and provides for any shortfall at the time of resale. Any access equity beyond the costs of the loan at the time of resale goes to the owner or their estate.
I know we all have clients for whom that peace of mind is worth far more than the equity that they are not building for their heirs in their home. Those dollars not spent on a mortgage can perhaps be invested elsewhere for greater return than the real estate might have yielded. You'll find a reverse mortgage scenario calculator here: http://www.goldengateway.com/dothemath/trmcc/wl/purchase-step1.do?cid=kw
It will also tell you the return on cash in over time, based on various annual appreciation rates.
I got a short text message from one of my colleagues last night, one of the owners of my market center.
Most of our ownership group (with the exception of the one who is returning from an awesome adventure travel vacation involving both a motorcycle and Antarctica!) and a few of the office staff attended the Moore County Chamber of Commerce Annual Banquet last evening, where our market center was among the three finalists for Entrepreneur of the Year.
The text message said "we won"
Congratulations to the best bunch of Realtors every assembled under one roof, and especially to an awesome and courageous ownership group who hatched the plan to create a Keller Williams office from scratch. It took us some time to earn the franchise, but what a wonderful accomplishment, and what a terrific acknowledgment of the effort.
The award is pictured below and I know that each and every one of my associates is thrilled and proud to be a part of this company and to have contributed to earning this honor. It will certainly be displayed with pride!
This cute cape style home provides one-story living and convenience, spacious half-acre+ lot. You'll find yourself living in your Carolina room with all the light and comfort that it offers. Large eat-in kitchen for casual meals, formal dining space for dinner parties, a wonderful expansive multi-level deck and private back yard for barbeques. Living room/Dining room combination features built-in cabinetry and wet bar, brick fireplace, sky light, and new paint and carpet.
In fact there is new paint and carpet throughout most of this terrific Pine Needles area home. I would LOVE to show you this adorable 3 bedroom, 2 bath home.
Check out the virtual tour: http://client.imprev.net/71/19771/194585/index.ipv
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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A home designed for entertaining. Indoor and outdoor living at their best here in the Village of Whispering Pines. You will love all that this special home has to offer, and at this unbelievable price it may well be the best buy in the county! Begin your tour of this terrific home in the beautifully updated kitchen, gorgeous granite tops and backsplash set off the ginger glazed maple cabinets. Be sure and notice the under-cabinet lighting, the double undermount stainless steel sink, granite-topped breakfast bar, Hansgrohe HighArch Swing pull-out dual spray faucet; Whirlpool kitchen appliances include dishwasher, Stainless ceramic top Range/Convection Oven, Stainless Stainless microwave, side-by-side refrigerator/freezer with cubed/crushed ice & water in the door: this sunny kitchen is one you have dreamed about, and it shares the sunlight with a spacious dining space with garden window and a vaulted ceiling family room. Enjoy the warmth of the gas logs brick fireplace and the convenience of the granite wet bar. And from here catch a glimpse of the beautiful, private backyard with sparkling in-ground pool, patio and pool surround, and views of Whispering Woods 5th hole beyond the yard. Add the formal dining room, living room and sunny Carolina room and you have a home designed for entertaining. A master bedroom and bath, with twin vanity sinks, jetted tub and separate tiled shower, a second bedroom and a spacious, ‘wired' office round out the main floor of this fabulous home. Laundry room, roomy pantry cupboards, half bath and extra large two car garage are also found on the first floor. The lower walkout basement is full of surprises: additional double door entrance, walkout, covered patio area, mud room, windows, 36" wide doors, Den, Game/Exercise/Media Room, plumbed and wired for future galley Kitchen, pantry, large storage room (phone & electrical outlets), Bedroom(s) have air conditioned large walk-in closets, bathroom has two mirrored medicine cabinets, double sinks, shower, vanity table, large linen closet, and second laundry room. Perfect as a guest suite, your teenagers' rooms, or a mother-in-law suite, this level offers nearly 2000 square feet of living space.
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