Latest Breaking News on Housing Market

First up is some positive breaking news for the housing market. Shadow inventory of homes is declining, providing a dose of good news for the glum housing market. Shadow inventory, or homes on the verge of foreclosure, fell to 1.6 million units representing a five-months supply in July compared to 1.9 million units representing a six-months supply a year ago, according to CoreLogic. It’s a good sign that troubled homes, normally headed toward foreclosures, are getting sold faster. Lesser inventory will help stabilize falling prices on homes for sale. Of course we won’t be seeing a drastic change in numbers, but even a small percentage of troubled homes off the market is a blessing for sellers and the industry as a whole.

"The steady improvement in the shadow inventory is a positive development for the housing market," CoreLogic Chief Economist Mark Gleming said in a press release. "However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time."

Housing Prices Increase, but not Enough

Some more indication of baby steps toward a market recovery. For the fourth consecutive month, home prices were on the upswing in July compared to the previous month. But the bump wasn’t good enough to give the market a clean bill of health, yet. According to data released by S&P/Case-Shiller Home Price Indices, home prices across 20 major urban areas in July remained flat when adjusted seasonally, and down 4.1 percent compared to a year earlier, despite showing a 0.9 percent gain. The trend of prices rising is a good sign, analysts said.

"With July's data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices," said S&P's David Blitzer, according to an AFP story. However, he said, "if you look at the state of the overall economy and, in particular, the recent large decline in consumer confidence, these combined statistics continue to indicate that the housing market is still bottoming and has not turned around." Prices across the country were at the level of 2003, according to the report.

Mortgage Rates Continue to Slide

Here’s more music for the ears of potential homebuyers. Nudged by the Federal Reserve’s proposal to reduce borrowing costs, mortgage rates fell to the lowest in Freddie Mac’s recorded history this week. Rates on a 30-year-fixed loan hit an unimaginable 4.01 percent, down from 4.09 percent. On a 15-year loan rates dropped to 3.27 percent. The lucrative rates are aimed to lure consumers toward buying and refinancing their existing mortgages. Many are taking the bait. According to the Mortgage Bankers Association, there was a 9.7 percent rise in loan applications last week. However, a good section of consumers have not been able to take advantage of the rates because of stricter lending standards.

Existing Home Sales Drop

Some good news for buyers which turns out to be not-so-good news for sellers. Sale of existing homes dropped 1.2 percent in August, according to an index by the National Association of Realtors. The measure shows that sales dipped to 88.6 percent in August from 88.7 percent the prior month. The data, which takes into consideration signed contracts but unclosed deals, shows that the numbers are higher when compared to the same period last year, but that’s hardly a consolation since last year’s showing was affected by the expiration of a federal tax credit for homebuyers. Lawrence Yun, NAR chief economist in a press release blamed the numbers on an uneven market.

“The biggest monthly decline was in the Northeast, which was significantly disrupted by Hurricane Irene in the closing weekend of August,” he said. “But broadly speaking, contract signing activity has been holding in a narrow range for many months.” If you are looking to buy, now may be a time to get involved in the market, Paul Dales, senior U.S. economist for Capital Economics, told the Wall Street Journal. But, a lot of people have been unable to cash in on the situation, he said. Some analysts blame the job market and slipping consumer confidence. In these shaky times, many people prefer to rent than invest their savings on a new home.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

Selling a Home with Cement Asbestos Tiles, Termites, or Vermiculite

Selling a home may seem like a challenge for the homeowner who has discovered termite damage, vermiculite, or asbestos components. A home that contains harmful building materials or that has been treated for termites can be sold, however, if certain steps are taken. If you know your home has been treated for termites or contains vermiculite insulation, asbestos siding, or asbestos cement tiles, or if the buyer's inspection reveals one of these issues, knowing the facts can help make your sale go more smoothly. As a seller, you're generally required by law to disclose what you know about your home's termite damage, asbestos tiles, vermiculite insulation, or asbestos siding. The regulations governing disclosures of material facts vary from state to state, but most sales do require a signed statement of known issues.

Selling a Home with Cement Asbestos Tiles

The first key to selling a home with cement asbestos tiles is to know the facts. Asbestos contamination is an issue that's received a lot of attention in the last few decades, but asbestos is only dangerous under certain circumstances. Asbestos is a mineral silicate, once admired for its fire-resistant and insulate properties. While it is no longer used in the United States due to the dangers of inhaling the glass-like dust particles, it exists in an undisturbed state in many American homes. Asbestos tiles, if left alone, are not dangerous. It is generally inadvisable to tear up cement asbestos tiles, and selling a home with cement asbestos tiles that are undisturbed and intact may in fact be easier than selling a home with airborne construction debris. You do have a legal obligation to disclose known asbestos in your home, but buyers should know that asbestos tiles are common in older homes. Friable flooring is flooring that can be crushed or turned to dust by hand. Cement asbestos floor tiles are only dangerous when particles can be inhaled, so your potential buyer may agree that leaving the floor undisturbed is the best option when dealing with asbestos.

Selling a Home Treated for Termites

Selling a home that's been treated for termites should not be particularly hard if you can demonstrate how the problem has been controlled, how the damage was repaired, and how you've continued to protect the home from ongoing termite damage. Potential buyers may ask to see paperwork, which could include descriptions of the termite damage, bills from termite treatment professionals, or inspection reports showing the extent of termite damage. If the buyer's certified termite inspection reveals untreated termite infestations or previously undetected termite damage, steps will generally need to be taken to control the problem before the sale can go through. Termite abatement should be handled by a skilled professional for reasons of safety and effectiveness as well as for the sake of adequate documentation. If a termite inspection reveals evidence of termite damage but no live insects, the home will still be considered infested unless there is proof of prior treatment. It is to your advantage, as a seller, to have a termite infestation professionally treated before selling your termite-damaged home.

In some states, there will be specific questions on seller disclosure forms which relate to termites. Oklahoma, for instance, asks sellers to answer if they are "aware of treatment for termite or wood-destroying organism infestation," and if there is a "termite bait system installed on the property." No matter where you live, your obligation as a seller is to be honest in answering all questions about termite infestations and treatment.

Selling a Home with Asbestos Siding

As in the case of cement asbestos tiles, asbestos siding is dangerous when it's damaged, crushed, or turned to dust. As long as the asbestos siding on your home is intact and in good repair, buyers may wish to cover rather than replace the siding. Whether or not you cover asbestos tiles before selling your home, you are required by law to disclose their presence to any potential buyers. Buyers may want to know what condition the tiles are in, and many inspectors will recommend simply covering asbestos tiles with vinyl or HardiPlank siding rather than undertaking an expensive removal process. The most common management procedure for undamaged asbestos siding is to encase or cover the asbestos tiles with new siding. Since many homes were covered in asbestos tile siding in the 1970s, most home inspectors will be familiar with the most affordable and safe management methods.

Selling a Home with Vermiculite

Vermiculite is a mineral substance that is often found in attics, especially as insulation in the spaces between joists. The product, which looks like course sand or gravel, is made by heating tiny mineral flakes to create puffy particles with fire-resistant and insulating properties. While vermiculite insulation can be excellent at retaining heat, it can also be dangerous: before 1990, most of the U.S. vermiculite supply came from an asbestos-contaminated mine. The mine, near Libby, Montana, produced vermiculite under the brand name Zonolite. Since so much vermiculite was produced at the Libby, Montana mine and is contaminated with asbestos fibers, it is generally advisable for homeowners to treat all vermiculite insulation as a potential source of asbestos dust. As in the case of asbestos siding or asbestos tiles, vermiculite insulation is best left undisturbed. If it can be left alone, it should be - this means not walking on it, not spending time in the attic or using the attic for storage, and not attempting to remove vermiculite insulation without consulting a professional. As a home seller, your responsibility is to disclose the presence of vermiculite insulation to potential buyers. You may want to research the cost of vermiculite removal, especially if it is in a high-traffic area or if the home is going to be remodeled. Working around vermiculite insulation can be dangerous, and renovations should be undertaken with care.

If you've discovered termite damage, asbestos tiles, asbestos siding, or vermiculite in your home, then as a seller, you have the legal responsibility to disclose these issues to a potential buyer. With appropriate management, however, asbestos, vermiculite, and treated termite damage can become minor issues that won't stand in the way of a successful home sale.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

How to Negotiate: 7 Clever Home Buying Negotiation Tactics

Getting the house you want at the price you want can be tricky – even in a buyer’s market. Sometimes a home seller just isn’t willing to budge on price. Don’t despair! There are other ways to sweeten the deal and drive it to close in a buyer’s market. Here are seven tips on how to negotiate with a home seller.

Get the Dirt on the Home Seller

Learn as much as you can about the motivations and situation of the home sellers. For instance, if they’re living in the house and they need flexibility around the closing date, you could offer to be flexible on closing if they move on terms. In the case of estate properties, take some time to learn about the heirs - where they live, what kinds of houses they live in and whether or not they are in legal or financial trouble. It sounds creepy, but most of this information is available for free online once you have the names of the home sellers. You can also research obits and marriage documents that are in the public domain. The more you know, the more leverage you have when it comes time to negotiate.

Know What the Property is Worth

Work independently or with your agent to research comparable sales in the immediate area of the home, then make an offer at least 10 percent below what the market says it’s worth. Dig into the details to figure out how the home you want to buy stacks up against comps, and look for ways to communicate the legitimacy of your offer or requests by backing it up with data. For instance, if all comparable sales have a pool, waterfront property or updated kitchens and the house that you want doesn’t, point that out. Use this data to justify your offer or other requests to create value if they won’t budge on price.

Don’t be Afraid to Ask

If there are things that you want or need to feel comfortable with the deal, ask for them. The home seller can always refuse, but if you don’t ask, you don’t know. If you’ve created leverage by learning about the property and the seller’s situation, you can use this information to ask for things, such as repair of items found during the inspection period or appliances that weren’t listed on the original contract for the house. Don’t make assumptions. Even if your realtor balks at the idea, always ask.

Offer a Quick Close

The faster a deal gets done, the more quickly the home seller can cash out their asset and move on with life. Homes that remain on the market or unsold for extended periods of time become costly to sellers (especially if they’re unoccupied) and start to decline in condition. Offering a quick close builds confidence with the seller as it means that there’s less time for things to go sour with the deal. If you’re situation allows for this negotiation tactic, you might be able to either lower your price or get other benefits in exchange.

Make an As-Is Offer and Ask for the Furniture

If you want to make a reasonable but low offer on a property, consider the pros and cons of presenting an “as-is with right to inspect “ offer. The upside is that you can walk away from the deal if the inspection frightens you. The downside is that what you see is what you get, leaky plumbing, termites, mold and all. If you really want a property and are willing to take it as-is, but aren’t really comfortable with the seller’s floor price, ask for the furniture or other non-fixed assets that make the deal more palatable such as a boat or fitness equipment.

Ask the Home Seller to Cover Closing Costs

If you’re apart on price for the home itself, one way to get around the cash crunch and get a deal done is to meet the home seller on price, but ask them to cover all or part of the buyer’s closing costs. Some home sellers might balk, but if they’re able to do this and want to finish the deal with a sale at a particular price point, this technique can work.

Be Willing to Walk Away

Buying a home can be an intensely emotional experience, but at the end of the day it is really just a business transaction. This means you can’t get attached, and you have to be willing to walk away if you’re unable to negotiate with a home seller or if the seller becomes unreasonable. If the seller’s agent senses desperation or over-eagerness on your part, they might interpret that as a signal that they have the upper hand. Silence can be your friend. Hold your cards close and always be willing to walk away.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

New Houses vs. Old: How Do You Know Which is Right for You?

Finding your perfect home is not always as easy process. With the surplus of homes for sale in most cities, buyers may find there are many properties –both new and old - that meet their search criteria. Choosing whether to renovate an old house or buy a new one can be a tricky decision for some.

Should I Completely Renovate an Old House or Buy a New House?

When deciding on which type of house is right for you, it’s important to take into consideration the following factors:

Style – For many, the allure of an older home is its character and uniqueness. Many of the homes being built today are tract houses that lack personality and quality of construction. An older home will have the charm that many buyers are looking for, rather than being a “cookie cutter” model that someone else has. However, they require a lot of TLC that many buyers aren’t cut out for. Knowing whether to choose an old house or buy a new one largely depends on your style preferences. Do you prefer clean lines, open concepts and a modern look, or are you into a more traditional floor plan with closed rooms, built-ins and nooks?

Lifestyle – Think about how you like to spend your free time. Do you enjoy working on projects, building or creating things at home? Or would you rather spend the evenings and weekends outside of the house, traveling, hiking or shopping? If you answered the latter, an old house may not make sense for you in the long-term as they typically require more maintenance and care.

Resources – Aside from the funds needed to purchase the home, do you have the budget and resources to update and maintain an old house? Even an older home that has been updated can be expensive to maintain due to scarce availability of certain building materials and original fixtures. Many buyers become “house poor” after making their down payment and buying a house. With no savings they have little budget left over for these house updates. If you don’t have the resources to dedicate to updating and maintaining the home, it may be a better choice to buy a new house. Newer houses typically need no initial repairs, no additional budget and are move-in ready.

Patience – Old houses have character, but maintaining that sense of charm doesn’t come easy. Unless they were recently updated, older homes require time and energy to restore. Because they were built in a different time period, older houses may require custom or hard-to-fit materials, appliances and fixtures that many contractors are not skilled in using. These material and construction delays can greatly extend your project deadlines.

Knowledge – Are you knowledgeable about construction and home improvement? Knowing how long restoration and maintenance projects will take and how much they will cost is a major prerequisite for purchasing an older home, especially if you’re planning to completely renovate an old home. If you’re tight on budget and resources, are you able and willing to do some of the work yourself?

An older home can be a quality investment with long-term potential and timeless style. A newer home can be a no-hassle, peaceful retreat that doesn’t require extra money or time to move in. If you do the right planning and homework ahead of time, you’ll be able to find the house that fits your needs, budget and lifestyle and relax, knowing you made the best decision in choosing your new home.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

Should I Sell or Rent My Home? A Quiz to Help You Decide

To sell or to rent. It’s a tricky question, especially in a down market. If you are relocating or just ready to move on from your ball and chain of a house, renting might make more sense than selling. Here is a quiz to help you decide whether you should sell or rent your home.

Can You Afford to Sell Your Home?

Here’s an example of a situation where a couple had to examine how affordable it was for them to sell their house. The couple knew they wanted to move to a new home, but they live in an area of Florida where houses have halved in value since the peak in 2006 - the same year their house was purchased. As they debated whether to sell their home, they realized that if they chose to sell, they would be forced to take a $150,000 cash loss, not including closing costs. They looked at the numbers and decided they could not afford to sell their home. For them, it made more sense to rent their home and purchase a second home that then became their primary residence. When you rent, you may take a loss on a monthly basis, but you do not have to come up with the cash to satisfy the loan immediately upon sale. If you sell at a loss, then there is no tax benefit.

Can You Afford to Rent Your Home?

Research the going rents in your market using tools like the MLS listings and craigslist.org. Look for comparable properties in your neighborhood or similar neighborhoods to get sense for what your home might bring in as a rental. It is important to take features like square footage, number of rooms and upgrades such as granite kitchen counter tops, location and proximity to desirable schools into consideration while looking for comps. You can also talk to real estate agents and property managers to get their take on pricing. If it turns out that you can’t cover your mortgage with the projected rent, then calculate how much of a loss you can take to still be able to afford to rent the house.

Do You Need Tax Deductions?

You can often take losses and costs from rental properties as tax deductions. In addition to deducting the cost of your mortgage beyond the rental income, landlords can often deduct all expenses associated with the rental, including property management and maintenance fees. Consult your accountant to ensure that you know what the costs and benefits will be from a tax perspective before you make the decision to rent rather than sell your home.

Can Your Credit Take the Hit of a Short Sale?

If you don’t mind sacrificing your credit score for a few years, you can’t afford to rent and you really need to get out of your house, then a short sale is always an option. A short sale is a real estate transaction in which the bank agrees to accept less than the amount owed on the mortgage to release the owner from their financial obligation. For example, if the mortgage on a home is $200,000 and a buyer makes an offer for $150,000, the bank may accept this offer and forgive the additional debt. Besides mucking up your credit, a short sale can also contribute to your tax bill. Often, the forgiven amount (in this case, $50,000) can be added to your tax bill as taxable income. It is important to consult a lawyer or accountant so that you know the details of how a short sale will impact your taxes and your credit before you move ahead.

Should You Sell or Rent Your Home?

Depending on your immediate financial situation and long-term outlook, it can make more sense to rent rather than sell. In some cases, a short sale is the best remedy for escaping an underwater property and moving on with your life. Before you make any decision about renting or selling, be sure to consult a lawyer or accountant for customized consultation so that you fully understand the tax ramifications and benefits given your unique situation.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

How to Pick a Property Manager

Investing in rental property? Think of property management as a tool, and possibly leverage your resources:

A stranger is about to move into what very likely used to be your home. And you're busy. You don't have time to manage the details of your own household much less fix broken toilet handles at your rental property. Enter property management companies. For those of you who enjoy finding renters, running background checks and putting up with service calls from your residential tenants, have fun. If you'd rather not deal with the grit, grime and daily responsibility of renting out a residential property, here are some tips on finding a property manager who will find a responsible tenant and give you comfort that your property is well-leased and is being properly maintained.

Do your own research
Research local rents by checking out rental listings on craigslist.org, and check zillow.com rent Zestimates for homes in your area with similar features and square footage. Property managers are motivated to rent your home for the maximum that they can get since they typically take a percentage of the rent as their fee, but they might not be tuned into values for your type of home in your particular neighborhood. Also, laws differ from state to state. Do your due diligence on the tenant-landlord laws for the state that you live in to understand your rights as a landlord before you enter into conversations with property management companies.

Get recommendation
Never hire a property management company without a recommendation or two that you trust. If you can, try to find both a realtor and a landlord who have worked directly with a given company. Get local recommendations and keep in mind that performance of a national company can vary from market to market.

Explore your options
Some companies offer leasing services only, which can be cheaper than leasing and maintenance. It really depends on how much time you have to dedicate to the rental. Make sure you understand the tenant-landlord laws in your state so that you know how long you have to respond to a tenant request - and whether you want to deal with that.

Tune into their communication processes
Interview a few different companies and see how they respond to your inquiries. If they get back to you immediately, that's agood sign. If it takes a few days, weeks or months to connect - not so good. If they're late to appointments, don't show up or don't call, also not so good. Take this as a sign of how they'll work with you throughout your relationship.

Read the leasing agreement
Ensure that you're covered and have the power to remove a tenant who doesn't pay the contractual rent and that property damages are covered by an extra month's rent and security deposit. Also make sure that, based on the laws in your state, the leasing agreement allows you to release yourself from the relationship with the property management company if they do not hold up their part of the agreement.

Gut check their process
Ask your property management company representative about tenant approval process. Find out how they market properties, what kinds of tenants they install, and what a typical lease period looks like at their company. Also make sure that you understand their background checking process to ensure that both credit and criminal background checks are performed, as well as character references.

Expect to pay for it
Most property management companies charge one month's rent plus 10 percent of the monthly rent, which normalizes out to an 8.5 percent fee. You have to decide if this is worth it to you. Choosing to go with a property management company can make your life easier since all you have to do is wait for the direct deposit. Just make sure that you understand what you're getting into before you sign up.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

TEN GREAT REASONS TO BUY A HOME IN 2012

Re-claim the American Dream!

1. Quality of life – a home provides stability and security for you and your loved ones, and membership within a community of neighbors.

2. Pride of home ownership – a home is a personal haven, a place that you can decorate, shape, and share over time because it’s yours.

3. Excellent affordability – lower home prices combined with low interest rates means there are tremendous opportunities for buyers. 

4. Historically low interest rates – around 4 percent in the U.S. gives better purchasing power to those who qualify.

5. Appreciation potential – your home investment can grow in value. 

6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters. 

7. Leverage – where else can you buy an investment of this magnitude with about 3 percent down? 

8. Tax deduction advantages – property tax and mortgage interest write-offs.

9. Tax exemption – up to $500,000 per married couple or $250,000 per person on sale of a primary residence in the United States.

10. The real cost of renting – at $800 per month, with the average 6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.

*** For more real estate market tips and resources, visit TulsaHomeGuru.

How to Find the Right Neighborhood for You

There are many factors to consider when selecting a neighborhood that is right for you. Think about the location in terms of commute time to work, distance from leisure-time activities, and proximity to shopping, schools or any other places you frequent. You may think of others factors that are important to you. Please take some time to write them on your Home Search Criteria form.

Scout out the Neighborhood!

• It is important that you scout the neighborhood in person.  
• Talk to people who live there. 
• Drive through the entire area at different times of the day, during the week, and on weekends. 
• Look carefully at how well other homes in the area are being maintained - are they painted; are the yards well cared for; are parked cars in good condition? 

Neighborhood Factors to Consider

• Look for things such as access to major thoroughfares, highways, and shopping.  
• Listen for noise created by commerce, roads, railways, public areas, schools, etc.  
• Smell the air for nearby industry or agriculture.  
• Check with local civic, police, fire, and school officials to find information about the area.  
• Research environmental topics such as soil and water quality, as well as floodplain implications. 
• Study traffic patterns around the area at different times of the day and measure drive time from the area to work.  
• Is the neighborhood near parks, places of religious worship, recreation centers, shopping, theaters, restaurants, public transportation, schools, etc.?
• Does the neighborhood have a Homeowner’s Association?

*** For more real estate market tips and resources, visit TulsaHomeGuru.

Considering Alternative Energy for Your Home

Whether or not one believes global warming is an issue to be concerned about, it’s hard to refute the evidence that the world’s carbon dioxide production is the main cause of the warming of our planet. To slow the effect, more individuals and corporations are doing their part to minimize their carbon footprint.

Recent advancements in and an explosion of research on alternative, or renewable, energy are making it possible for homeowners to lessen the impact of their energy usage. Increasingly, there are more options that provide comparable or better performance to current energy sources.

Three of the more common renewable energy sources are solar power, wind power and hydro power. Note that while these are “more common,” they are not necessarily widely used in homes … yet.


Solar power is exactly as it sounds: power that comes from the sun. By the same token, wind power comes from the wind. Hydro power comes from the force of moving water. This article focuses on solar energy.

Determining solar power for homes

By various estimates, sunlight can meet the energy needs of the entire human population many times over. Imagine, using the sun’s energy to heat your home, take hot showers, power up all your electronic gadgets and kitchen appliances and keep your lights on!

There are, of course, heavy initial costs involved to using solar power to run your house. At the same time, there are ways you can use the sun’s energy for many years without a long-term expense.

If you’re building a new home, work with your designer to make the most use of the sunlight that falls on your lot. For example, place doors and windows where they’ll work best for you. If you live in a cooler climate, don’t put windows on the shady side. Also in this environment, avoid high ceilings unless you absolutely must have them (they are really nice to have, just keep in mind that you’re heating a lot of space you don’t use).

In warmer temps, plan for the back of the house to get the hottest sun of the day and put fewer windows on the hotter sides.

If you’re in an existing home, plant trees and perennial bushes near doors and windows. During the summer the growth will keep your house cool and in the winter the bare branches will let the sun in. You might also board up windows on the “wrong” side of the house or use insulated window coverings.

For either a new home or existing one, consider installing a solar power water heater. It can be a big expense initially, but you’ll recover the cost through energy savings within 10 years. Even if you don’t plan to be in your house that long, having a solar power water heater will add to your home’s value at the time of sale.

Installing a solar power system

There are a variety of factors to consider when researching solar energy for your home. How much you intend to use it will determine how many solar panels you’ll need. If you’re going completely off the grid, i.e., independent of your local power company, you’ll obviously need more than if you continue to use supplemental power.

Another factor is where to put the system. Rooftops are the logical choice, but since solar energy systems are designed to last for several decades, will your roof hold up that long? (Much solar power installation happens with new construction.) If not, you could mount the panels on poles, on a shed or on the ground.

As with any purchase, you’ll want to shop around for your solar power system and interview a few installers to make sure you’re comfortable with the product and service you’re getting. The outfit you buy it from may offer installation or at least have suggestions for reputable installers. Another option is the ever-increasing “do-it-yourself” project.

For an in-depth look at solar energy technologies, go to the Department of Energy website.

Why is solar power a great way to save money?

Sunlight is free! It’s really as simple as that in the long-term. But as indicated earlier, the short-term, up-front costs can be steep.

One way to reduce your costs is to do it yourself. Build your own panels and install them with a little help from your friends. It does seem like a daunting task, but it is possible and more people are turning to this solution.

One D-I-Y’er offers a number of articles and insights on building and installation.

IMPORTANT: Before you commit to a system, be sure to check with your city or county government permitting office to ensure your system meets current laws such as zoning and height restrictions. Better yet, know what they are before you even begin the process!

Is it true that solar power = no pollution?

Not entirely. There are the fumes associated with manufacturing, transporting and installing solar power systems. Once in place, however, they don’t contribute to acid rain or urban smog! You can be assured that your energy system is much better for the environment all around.

A word of caution: while a solar power system doesn’t emit pollution once installed, its efficiency can be affected if used in heavily polluted areas.

*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Alternative Home Energy Installation: What are Forms of Renewable Energy

Three forms of renewable energy (the most common) are solar, wind and hydro. Less-known are tidal (sea waves), geothermal (natural heat), biomass (decomposed matter), fuel cell (hydrogen and oxygen) and nuclear energy.

We continue here with a look at wind power for home use, along with sources for further research and information.

Why is wind power important?

Simply put, it's good for your pocketbook and for the environment. At a time when saving money is on top of everyone's mind, regardless of an individual's financial health, opportunities to reduce the cost of basic expenses such as utilities are worth considering. And just as wind is a renewable resource, the savings on wind power are sustainable for the life of your home.

Natural gas power vs. wind power

From a short-term cost perspective, natural gas power, currently at a low price, is the better deal. However, even after considering the expense of installation, a wind power system is the most cost-effective way to go, thanks to a 30 percent tax credit for systems in service before December 31, 2016.

Environmentally speaking, although natural gas is among the cleanest of the fossil fuels, it still releases pollutants. Wind power systems do not, once the manufacturing and installation processes are complete.

In terms of reliability, natural gas power comes out on top. It's readily available, whereas wind can be intermittent. This takes us to a look at the most ideal circumstances for wind systems to be most effective.

A flat, open expanse makes for the best situation in harnessing wind energy, as tall buildings and close, surrounding homes break wind patterns. In this situation, you have the option of going completely off the grid. In a more developed area, it's not practical to expect there will be enough wind to run all your energy needs.

Want to see if you live in a region that has powerful winds? Find high-resolution wind maps and estimates of wind resource potential at Wind Powering America.

How does a wind energy system work?

The most common home system involves the use of turbines, which convert the kinetic energy into mechanical power. (Wind turbines/windmills are among the oldest forms of renewable energy, dating back to medieval times!) The kind of turbine you'll need depends on where you live and how much you plan to use wind as your source for energy.

If you live in a remote area where wind is easy to come by (and height restrictions are less stringent), you have a choice of a rooftop turbine or one that sits on the ground and towers over your home. The latter can go as high as 120 feet!

As noted, living in a developed area isn't conducive to using wind for all your power needs so a small rooftop turbine should be enough to generate the most feasible amount of energy in that environment.

Learn more about small wind systems for your home through the U.S. Department of Energy's FAQs.

Where can I find home energy kits?

Save money at the start by doing it yourself! A quick search on the Internet yields a long list of sources for wind energy systems, so finding one will be easy enough. The key to finding the right one is doing some thoughtful research. Whether you make and install your own system or have it done for you, refer to the American Wind Energy Association for some helpful tips first.

In general, alternative home energy installation is the wave of the future. In fact, already there are those who would prefer the word “alternative” no longer be used as “renewable energy” becomes more mainstream.

Converting to renewable energy in an existing home is a major commitment. Be prepared to spend a lot of time on research, looking at the history of your energy use and predicting what it will be in the future. A growing family will gradually need more while empty-nesters may begin to use less. Saving money and “doing good” can only be positive things, but you'll have to decide if all the work is worth it. We close with some general comments for your consideration.

Is renewable energy for me?

If you're thinking about transitioning from fossil fuels for your energy needs, whether for financial or environmental reasons, the same considerations apply.

How much do you intend to use it? Where will you put it? (A wind or water turbine is more cumbersome than the nice flat panels of solar power.) What is your budget? What are the local zoning laws? Do you want to do it yourself?

Advantages and disadvantages of renewable sources of energy

First, the good news. The sun will shine and the wind will blow. Generations hence, these natural sources will be in abundant supply. The same can't be said for fossil fuels.

Renewable sources don't release toxic chemicals into the atmosphere, making them environmentally sound and safe for all.

While initial costs to transition to renewable energy can be steep, the long-term cost-savings can be substantial. If you start with these alternatives in a new home, the savings are more immediate.

As for the not-so-good news, the main drawback (other than initial costs for existing homes) relates to the first note above. While the sun will shine, there will be cloudy days when not enough sunlight can be harnessed. Likewise, the wind may be, well, less windy. These can be worked around by storing energy during peak conditions, but it will take extra effort and solid planning.


*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Are Relocation House Purchases a Good Deal?

Relocation... to purchase or not to purchase
A lot of people ask, "Are relocation house purchases a good deal?" If you're asking this question,
you are most likely interested in purchasing a house from a relocation company. By buying a house from a relocation firm, often called a "relo," you can get a good deal if you take a few precautions as you go through the home buying process.

Relocation companies typically buy homes at a discount, but with the increased number of foreclosures and short sales in the past couple of years, they may be more willing than ever to make a deal. With the glut of properties available at great prices, take your time, do your due diligence, and you should be able to drive a hard bargain.

Steps to Make Relocation House Purchases a Good Deal

Find a reputable real estate agent from a well known company who specializes in relocation properties. Make sure this agent works with more than one relocation company. In order to get a good deal on a relocation house purchase, you want to know that you're not being steered to only one relocation company's listings. Let the real estate agent know you are interested in seeing listings of properties owned by relocation companies.

You need to find out the pricing history for the home and the neighborhood. Is the relocation company pricing the property to move? Get pricing opinions on the properties you select. This will usually be called a Comparative Market Analysis or CMA. Make an offer only after you have all of this information. Also, remember that a relocation company is an unemotional seller, and this can help you get a good deal on a relocation house purchase. Unlike an individual owner, there's virtually no risk of ôoffendingö the seller with a low offer.

Buying a House from a Relocation Firm

Most properties owned by relocation companies will be sold "as-is." This means your home inspector's inspection needs to be as thorough as possible when buying a house from a relocation firm. Be sure the home inspector knows the home is a relocation house being sold by a relocation company. This is really important for all real estate transactions, but especially when buying from a relocation company. The relocation company's property disclosure form will likely say that they have "no knowledge of any problems." In other words, they can say whatever they want, and you'll have a virtually impossible time trying to prove otherwise. Make sure your inspector is extra thorough on your inspection and looks for things like water damage, evidence of poor drainage, foundation settling ... anything that could cost you money fixing after you've purchased the house.

Get pre-approved and not just pre-qualified by your mortgage lender. Pre-approved means you've filled out a mortgage application. This way your offer, even if it's a low one, will get more attention. The more complete your offer is, and the quicker and easier the relocation company perceives the closing to be - regarding what percentage you can put down, how quickly you can get settlement, and your credit score - may end up being more important than your offer.

As with other real estate listings, the length of time a house is on the market will have an impact on how willing the relocation company will be to negotiate on price. You will have the greatest bargaining power with homes that have been on the market longer. If you offer a low price on a house that has only been on the market a few weeks, the relo company may not budge. But, if you find a relocation house that has been on the market for a few months or one that has already had several price reductions, you may be able to get a really good deal.

It all depends on inventory, time on the market, and market conditions. You cause no harm by offering low, and you just might get a deal. The worst that can happen is the relo company says no. Unless you are in a seller's market or the home is already deeply discounted, your chances of getting a good deal on a relocation house purchase are good.

If the relocation company purchased the house, they are paying the utilities and taxes as well, so they may be in a good position to sell at a lower price to a quick and secure settlement. Ask if they'll pay or split closing costs if they won't lower the price.

You want someone looking out for your interests, not those of the relocation company, so you should hire a real estate attorney to review the documents. Most relocation companies require the use of their sales agreement forms, which differ from standard realtor-approved forms, and you don't want to end up in a bad mortgage deal.

Many people have successfully purchased houses from relocation companies. With a good real estate agent and a well-constructed offer, in this market, you should be able to get a good deal on a relocation house purchase. Which brings us back to the question, "Are relocation house purchases a good deal?" With the right market and a little effort from the buyer, they can be.

*** For more real estate market tips or to search for a relo, visit TulsaHomeGuru.

Home Mortgage Interest Deduction Could be Reduced

Summary of the National Commission of Fiscal Responsibility and Reform

Many Americans just finished filing their taxes for 2010, and roughly a third of taxpayers itemized deductions on their tax returns. For many taxpayers, the decision to itemize or not is driven primarily by the amount of their home mortgage interest deduction. The average homeowner deducts over $10,000 in home mortgage interest, which for a taxpayer in the 25 percent tax bracket, results in a tax savings of approximately $2,500.



All of that could change; however, as the bipartisan National Commission of Fiscal Responsibility and Reform slices and dices tax breaks in an effort to reduce our nation's $14.3 trillion debt. Economists, lawmakers, tax analysts and Obama administration officials question whether the United States can afford to give generous tax breaks when the country is carrying such massive debt. One of the national debt reduction commission's recommendations involves reducing the tax deduction on home mortgage interest. This would not only affect homeowners' taxes. It could also have detrimental effects on an already fragile housing market.

Our earlier article on Home Mortgage Interest Deductions explained the history of the home mortgage interest deduction, how the removal of the home mortgage interest deduction could affect the housing market, and earlier proposals by the National Commission of Fiscal Responsibility and Reform. Let's take a more detailed look at the recent summary of the National Commission of Fiscal Responsibility and Reform's report as it relates to the home mortgage interest deduction.

The national debt reduction commission's report recommends reducing or eliminating several tax breaks claimed by millions of middle-income Americans, and President Obama has proposed limiting itemized deductions for the wealthiest 2 percent of taxpayers. The reduction of the home mortgage interest deduction is just one of these itemized deductions, but it is a big one. As quoted in our earlier article, according to the Tax Policy Center:

In 2012, the MID [mortgage interest deduction] will cost the federal Treasury an estimated $131 billion, much more than the total of all outlays by the Department of Housing and Urban Development ($48 billion). Homeowners also benefit from other federal tax preferences, including deductibility of residential property taxes on owner-occupied homes ($31 billion), and exclusion of tax on the first $250,000 ($500,000 for joint returns) of capital gains on housing ($50 billion).

Unfortunately, the home mortgage interest deduction is not a target simply because of its cost to the U.S. Treasury. Many feel that tax breaks on home mortgage interest contributed to the collapse of the housing market. Critics argue that home mortgage interest deductions acted as an incentive for people to go deeper into debt, funneling capital into the housing market, and causing the real estate bubble that eventually popped.

The summary of the National Commission of Fiscal Responsibility and Reform proposed replacing the home mortgage interest deduction with a 12 percent tax credit and reducing the one million dollar limit on home mortgage interest deduction to $500,000. A tax credit helps reduce the amount of tax a taxpayer owes the government, and a tax deduction helps lower the taxpayer's taxable income. The National Commission of Fiscal Responsibility and Reform's proposal would also eliminate tax breaks on second homes and home equity loans.

In addition to the work being done by the National Commission of Fiscal Responsibility and Reform, a bipartisan task force led by former Republican chairman of the Senate Budget Committee, Pete Domenici, and the former Clinton administration director of the Office of Management and Budget, Alice Rivlin, is proposing replacing the home mortgage interest deduction with a 15 percent tax credit, and President Obama's 2012 budget would limit the deduction for families in the top tax brackets.

How Would Changes to the Home Mortgage Interest Deduction Affect the Real Estate Industry?

Changes in the home mortgage interest deduction will not happen easily. This is not a tax deduction that only affects the rich; the home mortgage interest deduction is enjoyed by millions of Americans. Plus, limiting the home mortgage interest deduction could result in a further decline in home prices. The National Association of Realtors President Ronald Phipps said that the proposals to limit the home mortgage interest deduction have upset potential homebuyers at a time when the housing market is still recovering:

"Since income taxes were first introduced into the tax code in 1913, the deductions for home mortgage interest were included," Phipps says. "My grandparents, my parents and I have taken advantage of that deduction. We think it's a matter of fairness for future generations that they have it."

The NAR has asked its one million members to contact their congressional representatives and urge them to preserve the tax break. Homeowners interested in preserving the home mortgage interest deduction could do the same.

*** For more real estate market tips or insider information, visit TulsaHomeGuru.

How Do I Calculate the Value of My Home?

What is the fair market value of my home?

These are two very common questions when people are considering selling a home. Talk to any real estate agent, and the first thing they'll tell you about calculating home value is that location is a big factor, but not the only factor. After the big real estate crash many people are asking themselves, ôWhat is the fair market value of my home?ö

Most of us understand there are more factors involved in calculating home value than just granite counter tops and stainless steel appliances. We also know that there are online sources like TulsaHomeMarket.com that can assist with determining house values by address. 

TulsaHomeMarket.com has one of the best ways to calculate the market value of your house because it doesn't just use algorithms and general housing data. TulsaHomeMarket.com has a local real estate expert in the Tulsa area to determine the real fair market value of your home. It's okay if you are just checking out the value of your home and aren't actually ready to sell your house. Asking an agent to help with calculating your home value is very common in today's economy. Many people are wondering, "Could we sell our home if we had to or wanted to?"

Whether you are trying to calculate the value of your home because you are thinking of selling or just out of curiosity, here are five factors to consider.

Factors that Help Determine the
Market Value of Your Home

Home LocationLocation is the key influence for calculating the value of your home. Besides the proximity of the home to a major metropolitan area or a breathtaking view, these are a few more location factors that can increase home value:

  Proximity to schools, parks and points of interest:

Homes within reasonable walk-ability to schools or parks will strongly influence buyers with small children. However, homes that boarder school or park property lines may suffer in home value due to unwanted traffic, parking limitations and the likelihood of youth mischief.

•   Neighborhood with increasing desirability:

Where is new growth heading in town? Will there be any new business areas, grocery stores, or libraries in the future?

•   Proximity to infrastructure: 

Is the house surrounded by other houses? Apartment complexes? Other buildings? The best possible situation for your home is to be situated between two other houses and located along a road without yellow traffic lines.

Homebuyer Demographics
After you buy a house, the market value of your home is affected by who else is likely to purchase the property. If the property is a perfect starter home for pre-family newlyweds, and the main homebuyers in town are senior-citizens, the fair market value of your home might be lower than you think.

Older buyers typically look for one story homes without stairs, whereas families with small children often desire homes with a front yard away from a busy street and multiple bathtubs.

Home Storage SpaceThe more closets, garages and laundry rooms a house has, the higher the fair market value of your home. Most homebuyers look for a walk-in closet in the master bedroom, as well as closets in high traffic areas like front entryways, bathrooms and other bedrooms.

The two-door garage is the most common size for most homes, yet three-car garages are becoming more and more common.

As for the laundry room, the washer and dryer units should be located together in a common access space without creating an eyesore.

KitchenThe kitchen is the most active area of a home. Typically, the following features add value to the kitchen:

• Granite countertops
• Stainless steel appliances
• Gas stovetops
• Convection ovens and microwaves
• Ice machines
• Cable television access ports
• Also, the proximity of the kitchen to the dining room and family room will impact the usability of the house and thus is a factor in calculating the value of your home.

Home Layout and Size

Homebuyers typically look for homes with three to five bedrooms with an average of one shower per every two bedrooms. Split bedroom plans with bedrooms on opposite sides of the house are a popular trend with modern homes. Also, many real estate professionals love to use the phrase ôlight and brightö to highlight homes with lots of natural lighting.

As for size, most residential neighborhoods will have a slight variation in square-footage and number of rooms, but they all should be within a standard deviation of one another. If resale value of your home is a big concern, it's in your best interest to not buy the largest home in the neighborhood. When calculating the market value of your home, real estate professionals measure the homes in the surrounding area against yours, and if most of the nearby properties are smaller than yours, it can act as an anchor to drag down your fair market value.

For more real estate market tips or insider information, visit TulsaHomeGuru.