Americans Still Thankful for Home Ownership

The recession hasn’t shaken Americans’ confidence in home ownership, according to a new survey of 1,000 adults nationwide by NeighborWorks America.


About two-thirds of survey respondents say their opinion on home ownership has not changed over the past five years. Eighty-eight percent say owning a home is an important element of their “American Dream.” 
“Although the housing market took one of the largest hits ever, with home prices falling nationally and foreclosures rising to more than one million homes annually, home ownership remains a goal many want to achieve,” says Eileen Fitzgerald, CEO of NeighborWorks America. “But it’s important to also note that the poll also underscores that we need to have quality and affordable rental homes available for those people who simply prefer to rent.”

The majority of renters and home owners surveyed say they believe the home buying process is complicated. They attribute the major obstacles to personal finance issues, such as lack of job security or not having enough money for a down payment. One in four surveyed say they have no familiarity with the mortgage products available. 

Still, about half of those surveyed say they feel more prepared today than five years ago to buy a home. Forty percent, though, say they are less prepared. 

“These results tell us that most consumers believe that they know when the time is right for them to buy a home — and feel strongly that home ownership is important — but that their personal situation may have been affected in the past five years and is holding them back from pursuing home ownership,” Fitzgerald says.


Source: “Consumers’ View on Homeownership Remains Optimistic,” National Mortgage News (Nov. 22, 2013)

Can Programmable Thermostats Lower Heating Bills?

An average household spends $2,100 annually on utility bills, and with the expectation that bills will rise this winter, electric and energy companies have taken matters into their own hands with the creation of wireless programmable thermostats.

This advanced thermostat is released just in time, as more than 90 percent of homes in the United States will have higher heating bills this winter season, according to the U.S. Energy Information Administration.

With energy use predicted to pick up this month for areas from the Appalachians to the Midwest, and into the northern Rockies due to wintry conditions, these thermostats could save consumers money and energy.

According to the government-backed program, Energy Star, these thermostats when used properly could save consumers approximately $180 in energy costs every year.

How Programmable Thermostats Work:
Like any thermostat, the system regulates the temperature within a house or business through turning on or off the air conditioning or heating systems. However, the big difference is that these recently developed programmable thermostats can be controlled from any location, as long as the user has the application on their desktop or mobile phone.

With the ability to control them remotely, these wireless thermostats bring forth numerous benefits to customers.

Heating and cooling costs combined make up 45 percent of annual utility bills for the typical household, according to Energy Star.

However, with these thermostats, costs could potentially be reduced.

"The new generation of web-enabled thermostats offer promise for better comfort and more energy savings compared to early programmable thermostats," Principal Researcher for the Energy Center of Wisconsin Scott Pigg said.

The components of these contemporary thermostats allow users to program their thermostat to match their daily schedule.

"You can access them from anywhere in the world," Director of Product Marketing and Software Services for Honeywell, Brad Paine said. "You can make adjustments on the fly."


These thermostats and their corresponding applications let consumers view current temperature and humidity levels within their home or business, switch between heating and cooling modes, adjust temperatures, view energy history and set up various programming modes for vacation time or hours in which the residence is empty.

The mobile and desktop applications that go along with the thermostats also send customers various alerts for everything from temperature changes in their home to when to change a filter.
"Alerting is a big advantage," Paine said.

The company Honeywell has even developed a new wifi thermostat that is voice activated and allows buyers to interact hands-free with the device.


The Options:
While these programmable wifi thermostats can become pretty pricey, there are various options available under any budget.

Prices range from $100 to $500, depending on installation, thermostat features and companies.
Two of the leading companies in the field are Honeywell and Nest Energy, both of which offer mobile applications, various day settings and a multitude of other features.

Other companies such as LockState, Ecobee and Homeworks Worldwide also offer the thermostat product
.
Do They Actually Save Money?
"They can save several hundred dollars," Global Public Relations Manager for Honeywell Tammy Benker Swanson said.

The amount of money that can be saved is mostly based upon geographic location. However, fueling prices range by location dependent upon local weather, energy efficiency and the sheer size of the area being heated or cooled.

Despite claims that these thermostats save customers money, some studies suggest that this is only true in some cases.

A study conducted by the Energy Center of Wisconsin in 1999 found that the average self-reported thermostat setting does not vary substantially by the type of thermostat used.

The results of the study showed that the difference between those who set points from a programmable thermostat versus a manual thermostat were only 0.1 of a degree.

"It's more about the people who are controlling the thermostat then the technology," Principal Researcher for the Energy Center of Wisconsin Scott Pigg said.

However, the last finding of the study showed correlation supporting that a respondent's attitudes toward energy conservation and efficiency may affect their heating bill.

"People that are very conservation-oriented set back their thermostat a lot and they save a lot of money," Pigg said. "Other people put a premium on their comfort and they get their comfort but they pay for it."
Despite the research, Pigg agrees that these modern thermostats could potentially do a better job of keeping people comfortable while helping them save money on their heating and cooling bills.


"The new generation of web-enabled thermostats offer promise for better comfort and more energy savings compared to early programmable thermostats," Pigg said.

Metro Detroit median home selling prices rose 42 percent in October

 October marked the eighth straight month that the median selling price in Metro Detroit rose by double digits annually.

According to Realcomp, the Farmington Hills-based Multiple Listing Service for southeast Michigan, the median selling price for homes in Metro Detroit was up 41.9 percent year-over-year last month to $127,000.

Realcomp defines Metro Detroit as Wayne, Oakland, Livingston and Macomb counties.

While prices again climbed at a impressive clip, the number of total sales by units was far more modest in metro Detroit, as the 4,985 homes sold there last month represented a rise of just 2.0 percent over October 2012.

A closer look at year-over-year home sales by county in October:

Wayne
The median selling price jumped 43.6 percent to $75,000, while total units sold decreased 4.6 percent to 1,845 homes.

Oakland
The median selling price grew 18.7 percent to $174,550, while total units sold increased 10.8 percent to 1,787 homes.

Macomb
The median selling price rose 46.2 percent to $119,900, while total units sold edged up 0.9 percent to 1,078 homes.

Livingston
The median selling price increased 14.5 percent to $182,000, while the total units sold rose 1.1 percent to 275 homes.

Home sales by units in the Grosse Pointe area, in which Realcomp includes all of the Pointes and Lake Township, increased 10.0 percent to 66 homes in October, making it the only other region to have a double-digit rise in unit sale besides Oakland County. The median selling price in the Grosse Pointe area climbed 38.2 percent to $213,500 last month.

In the Detroit area, which includes the city of Detroit, Hamtramck, Harper Woods and Highland Park, home sales by units fell 9.6 percent to 463 homes, while the median selling price rose 17.4 percent to $13,500.

Across Realcomp's total coverage area, which includes southeast Michigan and a small portion of northern Ohio, on-market inventory shrunk 10.9 percent to 22,309 homes. Of the 6,345 homes sold across Reaclomp's coverage area in October, 5.6 percent of the transactions were short sales, and 34.5 percent were cash sales.

Homes sold quicker in October of this year, spending 22 fewer days on the market at 56 days.

Is title insurance needed for cash purchase?

There are plenty of stories out there about property seizures being done to owners with no mortgage. Sure, it's accidental, but it's best to pay now for the piece of mind later. Also, if you purchase without title insurance then sell, there could be additional expense as a sellers what with a gap in the chain of coverage. Sellers pay much more of the total title insurance burden than the buyer does. When you sell, that cost could be more than expected since the title insurance wasn't in place during the last transaction.

 

Title insurance is more than insuring the title and is a big part of delivering the title clean to the buyer. It offers protection to the buyer in the event that someone makes a claim to the property and from paying out on existing liens.

 

Investigate title insurance and the process of getting a clear title in a cash deal.  Everyone has something to say and its best to validate the information.  

Tips for Buying a Home With Cash

Cash is king. If you are flush with cash and ready to make a deal, sometimes it’s easier to get acceptance on a lower offer in a competitive situation. Because cash buyers get to skip over the treacherous loan qualification process, cash deals are considered a “sure thing” and therefore more attractive to sellers.

Here are some tips for home buying with cash.

1. Leverage your position to the max. Because cash buyers get to skip over the loan qualification process, cash deals are more attractive to sellers in many cases. Take advantage of this position and ask for terms such as a closing timeline, home repairs, cash allowances, or a homeowner’s warranty. You can even ask sellers to cover closing costs as a cash deal contingency.

2. Work with a real estate broker or lawyer experienced in closing cash deals. This tip could save you money and prevent legal hassles down the line. You want someone on your side with experience and perspective on this kind of deal within your market. Even cash deals can hit snags and you want to ensure that you have all of your legal bases covered and that you have clear title on the property when the transaction is complete.

3. Make sure that buying a home with cash is right for you financially. Before you plow all of your cash into purchasing a residence, you want to carefully consider all of your investment options. By choosing a different financial instrument with a rate of return higher than the cost of mortgage interest, you may be able to make more on your money than a mortgage costs in interest. Before you tie your cash up in a home, be sure to have plenty of additional money stashed for emergencies and other needs. Also, do your due diligence and look for investments that could make you more than a mortgage would cost you (if you’re eligible for a mortgage).

4. Give yourself an out with a “right to inspect.” Because you’ll have generally less information about the property prior to close, you definitely want to provide yourself with an easy out should the home end up being a lemon. While a home inspection may add a few days to the closing cycle, it is worth it if you’re buying a home with cash. If you’re feeling especially gutsy and the property has been on the market for a while or the seller seems desperate to close, ask him or her to pay for the inspection. Take advantage of your position! Remember, cash is king.

5. Estimate sale AND post-sale costs. Buying a home with cash can save a pretty penny on the cost of a transaction – and on mortgage interest over the lifetime of a loan. Cash buyers are able to avoid loan origination fees, the cost of a property appraisal, some closing costs and other lender imposed fees. Although you save a lot of money upfront, the transaction can end up costing you in the end. You’ll make a purchase decision with less information – which could mean a lower valuation or higher taxes than anticipated down the line. It also might end up costing you in terms of unexpected home improvement costs or survey and title issues. You also may be getting less house for your money by forgoing a mortgage.

6. Understand the benefits of holding a mortgage that you may be sacrificing. In addition to the tax benefits that you’ll be walking away from, mortgages for primary and secondary residences can provide a high-quality installment loan for your credit report. This type of “good debt” can make it easier to borrow money or get favorable rates on other financial products such as credit cards.

7. Ask your agent to check the “appraisal contingency” box on the purchase agreementand have the home appraised. Although the appraisal may cost a few hundred dollars, an appraisal is the only way to ensure that you are purchasing the home at its true current market value.

20 Things the Rich Do Every Day

Tom Corley, on his website RichHabits.net, outlines a few of the differences between the habits of the rich and the poor:

1. 70% of wealthy eat less than 300 junk food calories per day. 97% of poor people eat more than 300 junk food calories per day. 23% of wealthy gamble. 52% of poor people gamble.

2. 80% of wealthy are focused on accomplishing some single goal. Only 12% of the poor do this.

3. 76% of wealthy exercise aerobically 4 days a week. 23% of poor do this.

4. 63% of wealthy listen to audio books during commute to work vs. 5% for poor people.

5. 81% of wealthy maintain a to-do list vs. 19% for poor.

6. 63% of wealthy parents make their children read 2 or more non-fiction books a month vs. 3% for poor.

7. 70% of wealthy parents make their children volunteer 10 hours or more a month vs. 3% for poor.

8. 80% of wealthy make hbd calls vs. 11% of poor

9. 67% of wealthy write down their goals vs. 17% for poor

10. 88% of wealthy read 30 minutes or more each day for education or career reasons vs 2% for poor.

11. 6% of wealthy say what’s on their mind vs. 69% for poor.

12. 79% of wealthy network 5 hours or more each month vs. 16% for poor.

13. 67% of wealthy watch 1 hour or less of TV. every day vs. 23% for poor

14. 6% of wealthy watch reality TV vs. 78% for poor.

15. 44% of wealthy wake up 3 hours before work starts vs.3% for poor.

16. 74% of wealthy teach good daily success habits to their children vs. 1% for poor.

17. 84% of wealthy believe good habits create opportunity luck vs. 4% for poor.

18. 76% of wealthy believe bad habits create detrimental luck vs. 9% for poor.

19. 86% of wealthy believe in life-long educational self-improvement vs. 5% for poor.

20. 86% of wealthy love to read vs. 26% for poor.