Real Estate Information Archive

When it comes to buying a home, people are often tempted to stretch themselves financially a bit in order to purchase a home they are in love with. In some cases, financial stretching for buyers can actually be a smart move, while in others, it could be disastrous. Buyers who are thinking of stretching themselves should carefully consider a number of factors in order to make the right decision.

Those who are stuck between a more expensive home that meets their needs and a less expensive one that could need extensive remodeling can sometimes benefit from stretching. That’s because the cost of the remodeling project could just be more than the price difference between the two homes. Not only that, but it could help new homeowners avoid the hassle that’s associated with remodeling as well.

The average homeowner sells approximately every five years. Rather than buying a larger home a few years down the road, it could be better to buy one now. That way, the home can be paid for sooner, and families can eliminate the hassle of moving to a bigger home whenever their situation calls for it.

Financial stretching could pay off with a larger mortgage deduction on their federal taxes. As a result, some consumers could wind up getting a refund when they otherwise might have owed money to the government.

Financial stretching for buyers also has its drawbacks. For example, those affected by seasonal unemployment could find it difficult to make their mortgage payments whenever they are laid off. Likewise, individuals who are already struggling to keep up with their monthly bills could find themselves having even more difficulty making ends meet if they stretch beyond what they can reasonably afford.

Individuals who are not planning to keep their home long may also lose out if they stretch themselves financially. Since the housing market constantly fluctuates, buyers may need to hold onto their properties longer than they did in the past if they are to notice any real financial gain as a result of their real estate investments.

Financial stretching for buyers has its advantages and disadvantages. Only after carefully weighing all of the options should individuals decide to stretch themselves. That way, they can avoid the financial pitfalls that could come with doing so.

One of the easiest ways to for people to trim money from their household budget is to save on energy consumption. Even those who are in great financial health can still benefit from these energy saving tips in order to improve their economic situation even further.

Low flow showerheads and toilets will more than pay for themselves in only a short while. House Logic claims the average family can save 15,000 gallons of water per year, for an annual savings of around $200.

Green Energy Solutions recommends fiberglass insulation to save money on heating and cooling bills. They estimate that new insulation could result in a savings of around 20% for most homeowners.

Switching from regular to fluorescent light bulbs can result in a savings of around $6 per year for each bulb, according to Energy Star. They also last up to ten times longer, so homeowners won’t have to replace them as often either.

Upgrading to a new dishwasher can reduce energy costs, since newer models tend to be more efficient than older ones. Those who cannot afford to upgrade could still enjoy energy savings simply by cleaning and maintaining it properly.

Programmable thermostats make it easy to turn the temperature up or down whenever a home is not being occupied. As a result, most consumers can expect to save around $150 per year on their heating and cooling bills according to AOL real estate.

Adding weather-stripping is one of the best energy saving tips because it is inexpensive and easy to do. Energy Star reports that this accounts for around 30 to 40 percent of all heating and cooling loss, yet the materials needed to weather-strip a home can be purchased for under $5 at home improvement stores.

Homeowners who install a new ceiling fan can save money year round, because these fans help push warm air downward in the winter, while circulating cool air in the summer. All that’s needed is to simply change the direction in which the fan operates in order to enjoy the benefits year round.

Finally, a tankless water heater costs around 20 percent less to operate than a conventional water heater does. Not only that, but one can be expected to last up to ten years longer, which means consumers can save on the cost of replacing these units as well.

More underwater homes than ever are now showing positive equity in the Portland, Oregon area. A real estate data firm known as Corelogic reports that 8.1 percent of Portland-area homes were under water in the second quarter of 2013, as compared to 12.2 percent during the first quarter. Similar decreases were reported nationwide, with 14.5 percent of all homes across the country now showing negative equity.

One reason for the increase in home values is the fact that foreclosure rates are on the decline. CNN Money claims that foreclosure filings during August 2013 were the lowest in nearly eight years. They credit rising home prices and fewer underwater borrowers for the fact that foreclosure rates are on the decline across the country. That’s because underwater borrowers are at a higher risk of foreclosure should they suffer an undue financial hardship while occupying their property.

The number of foreclosures peaked in September 2010, and the market has seen steady decreases since that time. During the month of August, there was a slight increase in foreclosures over July; however, when compared to figures from August 2011, there was a 25% decrease noted. This number is also around 60% lower than the highest numbers recorded since the housing market crashed around eight years ago.

Even though property values have increased, many people still have very little equity available in their homes. Approximately 10.3 million homeowners have less than 20 percent equity, which essentially makes them unable to buy a new home as a result. These homeowners may be stuck for now, but if home prices continue to rise, they could be able to sell in only a short while. Basic laws of supply and demand would then lead to even higher home prices, because these individuals would also be able to purchase a new home rather than holding onto the one they have.

It is important for all homeowners to understand indoor air quality and mildew elimination. The primary cause of indoor air quality problems for homeowners is indoor pollution sources that release gases and particles into the air. Although it’s an uncommon problem, homeowners may experience inadequate air flow problems in the home due to poor ventilation that can increase pollutants. High humidity and temperatures may also be factors.

The ventilation of outdoor air is important for homes because it can help filter out indoor pollutants that may already be in the home causing adverse health effects to its inhabitants. The two forces must work in tandem to create optimal air quality and mildew reduction.

To improve air quality, homeowners must adopt the following strategies:

1. Air Cleaners - Air cleaners can be effective solutions to air quality and mildew issues in the home, depending on how well pollutants are collected from indoor air and the amount of air it filters at a time. Maintenance of the air filter will directly impact the effectiveness of the air cleaner. Whatever the pollution source may be, (air conditioning unit, oven or stove, refrigerator, etc.), the air cleaner must be able to absorb its pollutants more effectively than the source's output.
2. Improved Ventilation - Improved ventilation increases indoor air quality and mildew removal. According to the United States Environmental Protection Agency, "Most home heating and cooling systems, including forced air heating systems, do not mechanically bring fresh air into the house. Opening windows and doors, operating window or attic fans, when the weather permits, or running a window air conditioner with the vent control open increases the outdoor ventilation rate. Bathroom or kitchen fans that exhaust outdoors remove contaminants directly from the room where the fan is located and also increase the outdoor air ventilation rate."
3. Source Control - Air quality and mildew reduction in the home must be managed by controlling the source of indoor pollutants. Although compact and powerful, table-top air cleaners may not completely remove source pollutants because of their size. In some cases, the source of indoor pollutants may have to be removed while using an air cleaner.

Using these strategies, all homeowners will be able to effectively maintain a healthy standard of living, indoor air quality and reduction of harmful indoor toxins.

It is common for potential homeowners to decide between buying a pre-existing home or new construction. With so many variables presented in favor of both options, it is difficult to discern which type of home is suitable for new owners. Explored are the exciting positives and potential pitfalls new homeowners may face when making a purchasing decision that impacts their future.

A few key items for new homeowners to consider when buying a pre-existing home or new construction are:

• Location and neighborhood – Depending on the liveliness of the neighborhood, choosing an older home is best when looking for a more established community and culture within the epicenter of an urban area. More established areas also tend to have more diversity of people, from single renters to older homeowners and families. Newer constructions mean less established neighborhoods that are typically located on the outer reaches of urban areas. Commuting to and from work, school and general purpose shopping centers is also a consideration.
• Price and energy efficiency – Costing less than new construction homes, pre-existing houses often cost less per square foot. Prices for pre-existing homes also tend to be more negotiable. However cost effective these established houses may be, new constructions offer more overall energy efficiency. Updates to building materials and technology that regulate in-home energy consumption make new construction homes less wearing on the pocketbook.
• Living space, design and customization – For many new homeowners, customization is a key factor when buying a pre-existing home or new construction. Picking a new wall color, installing custom wiring for stereos and televisions, creating walk-in closets and bathrooms are all viable options when owning a new construction home. These items may be limited or altogether excluded when owning a pre-existing house due to the established construction and wiring system. New homes also tend to promote a more efficient use of space than many established homes.
• Maintenance – Maintaining an established home may pose difficulties if its previous owner was not diligent with upkeep. Newer homes have fewer maintenance issues but still need to settle into their newer foundations.

The prospect of becoming a new homeowner is thrilling and all new owners should be aware of the many factors when buying a pre-existing home or new construction as outlined above.