Farmington Valley real estate – Housing: Play the rebound – Granby CT real estate

With the clouds lifting over home sales, real estate stocks are up sharply. (Money Magazine) Housing stocks, which not so long ago looked as likely to pay off as a $2 Powerball ticket, have become a hot commodity. Anticipating the real estate recovery that surfaced in the fall — home prices in October were up 6.3% from a year earlier, and new-home construction reached a four-year high — housing-related stocks led the market in 2012.                        Homebuilders (returning 77% through early December), the lumber industry (74%), and home-improvement stores (55%) were the top-performing industries in 2012, according to Morningstar. And the Dow Jones U.S. Home Construction ETF traded in December at a lofty 27 times projected earnings  — nearly double the figure for the S&P 500. These numbers may make a housing investment look expensive, but it’s not too late for you to profit from the revival. The 2012 surge in stock prices was merely a snap back from the worst real estate correction on record, says Michael Magiera, manager of real estate analysis for investment firm Manning & Napier. “Keep that performance in the context of the long cyclical recovery we’re going to have,” he says. Related: Million-dollar foreclosures Of course, various factors could delay progress: elimination of the mortgage interest tax deduction, for example, or an unexpected surge in foreclosures. Still, economists predict a continued upswing. Moody’s housing economist Celia Chen, for one, forecasts above-average growth in construction, prices, and home sales through 2014. “After that,” she says, “growth will still be healthy.” That’s good news for the slice of your portfolio invested in real estate. Over the past 20 years, home-related stocks have roughly tracked new construction, itself perhaps the best indicator of the housing market’s health. Plus, growth over a cycle can justify the high price/earnings ratios that housing stocks might have initially; future earnings and price appreciation can make those formerly costly-looking stocks seem cheap in hindsight. Related: Housing to drive economic growth To maximize your profit, though, you have to look beyond what real estate fund managers judge to be the most expensive parts of the industry: homebuilders and real estate investment trusts that own apartment buildings. So here are three creative strategies for investing in the boom, along with stock and fund picks for each. STRATEGY NO.1: Buy the suppliers, not the homebuilders The numbers support more growth in the housing market. October’s annualized figure of 894,000 housing starts — up 42% from a year earlier — was still well below the industry’s 50-year average of 1.5 million. Existing-home prices will rise 3.3% a year through 2017, forecasts Fiserv Case-Shiller. “All signs are flashing green,” says Jeff Kolitch, manager of the Baron Real Estate Fund. Problem is, the most obvious beneficiaries of this trend — homebuilders — are the costliest stocks in this arena, say Kolitch and other fund managers. “The risk-reward proposition,” he says, “is more interesting elsewhere.” One such area: companies selling to homebuilders. The suppliers may have similarly high P/Es, but their prospects for earnings growth are better, partly because their profits come as a delayed reaction to homebuilder activity. The picks: The division of Weyerhaeuser Co. (WY, Fortune 500)  supplying lumber and plywood board to builders — a money loser in the bust — has begun to drive earnings, thanks to the minimal investment needed to boost production. The company’s profits, up 48% in 2012, are forecast by analysts to jump 88% in 2013. (Weyerhaeuser converted to a real estate investment trust in 2010, giving it favorable tax treatment in return for paying out most of its earnings as a dividend, now 2.5%.) While the company’s 30 P/E is high, a return to 2004 earnings levels — not a stretch — would translate into a P/E of only 12, says Ryan Dobratz, co-manager of Third Avenue Real Estate Value, where Weyerhaeuser is a top 10 holding. Related: $214,000 real estate bet a big risk for couple A broader way to play the growing demand for timber is via a low-cost exchange-traded fund: iShares S&P Global Timber & Forestry Index (WOOD), which has Weyerhaeuser, Rayonier, and Plum Creek Timber as its top holdings. The average-size home uses about $25,000 worth of lumber, according to the National Association of Home Builders, and construction activity powers the ETF’s performance. In December, the fund was up 19% for the year. STRATEGY NO. 2: Get in on the renovation resurgence Each percentage point of appreciation in housing prices translates to an additional $190 billion in home equity — or about $2,500 per household — says the National Association of Realtors. That uptick makes owners feel more confident about spending money to fix up their houses. U.S. remodeling spending, which by July 2010 had fallen 37% from its 2007 peak, is on the rise again, up 12% year over year in September. The NAHB predicts a 2013 rise of 3.4%. Companies tied to renovation didn’t go unnoticed in 2012; like the high-performing home-improvement retailers, furniture companies racked up big returns — 29% through early December. Still, many renovation stocks are expected to grow earnings at double the rate of the average large stock. The picks: Lowe’s (LOW, Fortune 500), operator of 1,745 home-improvement stores around the country, is one of the biggest beneficiaries of this upsurge in activity, says Dobratz; recently reported sales to professional contractors were particularly strong. The company does more business than larger rival Home Depot (HD, Fortune 500) in big-ticket items like cabinets and appliances, which are snapping back in the recovery. While its P/E ratio of 20.2, based on expected earnings, was higher than the Standard & Poor’s 500’s 14 in December, earnings at Lowe’s are expected to grow faster — 20% this year, compared with 11% for the S&P. MONEY recommended Home Depot in October, but Dobratz and other managers say Lowe’s, which had surprisingly good third-quarter results, is the better choice. Or you can buy a basket of home-improvement stocks via S&P Homebuilders ETF (XHB). Don’t be fooled by the name: The ETF has 45% of its assets in home furnishings and other remodeling-related companies (and only 25% in homebuilders). Lowe’s is its top holding; Whirlpool, Home Depot, and Pier 1 Imports are among its top 10. STRATEGY NO. 3: Profit from people on the move again Underwater mortgages and low-ball prices of distressed properties froze home sales after the housing bubble burst; sales of existing homes in mid-2010 bottomed out at the annualized rate of 3.4 million a year. That’s changing: Sales as of October were up to 4.8 million a year, reports the National Association of Realtors, which forecasts 5.1 million sales in 2013. Driving the sales, along with low mortgage rates, are rising prices. Related: 10 great foreclosure deals Longtime owners who were reluctant to match fire-sale foreclosure deals have been lured off the sidelines. And fewer shorter-term owners are stuck where they live, owing more on their mortgages than their homes are worth. Data firm CoreLogic says 1.3 million homeowners exited underwater territory as of June, and another 5% price increase would lift 2 million more borrowers above the waterline. The picks: Roughly half of all self-storage transactions are tied to relocations, according to the National Self-Storage Association. CubeSmart (CUBE) is one of the best values in the sector, says Magiera of Manning & Napier. It trades at a lower P/E than larger rivals and has better prospects as it swaps out facilities in low-growth areas for regions with more potential. A recent dividend hike boosted the REIT’s yield to 3.2%. A fresh coat of paint is a top item on the to-do list both for sellers preparing to list their homes and for recent buyers. Year-over-year growth in paint sales at Sherwin-Williams (SHW, Fortune 500) in the first half of 2012 was the highest since 2005, and the company’s cost of raw materials is falling. The stock, a top holding of veteran real estate manager Ken Heebner of CGM Funds, trades at a 30% discount to the S&P 500 when weighing its P/E against its projected earnings growth. As home sales pick up, another demographic trend comes into play: the aging of America. Fourteen percent of buyers over 50 bought senior housing in 2012, says the NAR, up from 10% in 2010. And the pool of potential buyers — purchasers’ median age is currently 64 — is expanding: The 65-and-older population will rise from 40 million in 2010 to 72 million in 2030. Two standout senior housing companies, says the Baron Fund’s Kolitch, are Brookdale Senior Living (BKD), which owns 565 properties in 35 states, and Emeritus (ESC), which focuses on assisted living and Alzheimer’s services. The firms, which are top holdings in his fund, trade for what Kolitch estimates to be 30% less than their private-market value — a wide discount compared to the REITs they resemble. Or you could simply buy Baron Real Estate (BREFX) itself, which is 18% invested in senior housing and 30% overall in housing-related stocks (much of the rest of its holdings are in hotels and gaming stocks). Manager Kolitch joined Baron Funds as a real estate analyst in 2005; the fund has topped its category in two of the three years since its January 2010 launch.                                                  The picks You can ride the housing cycle with these stocks, mutual funds, and ETFs. Stock (Ticker) P/E Earnings growth (%) Weyerhaeuser (WY) 30.1 N.A. Lowe’s (LOW) 20.2 17.3 CubeSmart (CUBE) 19.6 9.4 Sherwin-Williams (SHW) 19.0 13.0 Brookdale Senior Living (BKD) 10.3 11.5 Emeritus (ESC) 10.8 14.5 Fund (Ticker) Total return (1 year %) Total return (3 years %) S&P Global Timber & Forestry ETF (WOOD) 20.7 6.5 S&P Homebuilders ETF (XHB) 50.7 22.8 Baron Real Estate (BREFX) 39.6 N.A. NOTES: P/E ratios for stocks are based on projected 2013 profit. For CubeSmart, Brookdale, and Emeritus, P/E is price/projected funds from operations, used to measure real estate firms. Earnings growth is annualized three-to five-year projected rate; estimate is not available for Weyerhaeuser. Three-year-return figures are annualized. SOURCES: Bloomberg, Morningstar First Published: February 14, 2013: 5:53 AM ET

Granby CT real estate agent – Why some homeowners are turning down free money – Farmington Valley real estate agent

Borrowers who are still smarting from the mortgage crisis are passing up some real deals and missing out on real cash. By Becky Quick FORTUNE — American homeowners are in the midst of a hot and heavy love affair with low interest rates. But not every courtship has a happy ending. As the final days of 2012 slipped away, Lisa Price made her client an offer she thought he couldn’t refuse. Her client — we’ll call him John Doe — was paying a rate of 6.616% on his $435,000 mortgage, with 25 years left to go. Price, a mortgage banker for Quicken Loans, offered to refinance his loan at 4.125%, keeping the 25-year payout time. The deal would have knocked his monthly payments down to $3,383, a savings of $630 a month. Closing costs were minimal and would have been recouped through the savings within four months of signing. And with the streamlined process she proposed, it would have required very little paperwork and wasn’t contingent on any appraisal valuation. It seemed like a no-brainer. But John Doe said no thanks. “It didn’t make any sense,” says a stunned Price, reflecting on the rejection. “Usually when I call someone with a deal like that they’re really excited.” MORE: A sign the housing recovery just might stick It’s typically pretty easy for mortgage brokers to give away money, and indeed, refinancing activity has skyrocketed as interest rates plummeted in recent years. The one group of homeowners who didn’t participate in the refi boom — those whose home prices tanked, leaving them without enough equity in their home to qualify for refinancing — are now eligible to restructure their loans thanks to a new government program. But as Quicken Loans and other mortgage originators have learned, it can be surprisingly difficult to persuade some of these people to take sweet deals like the one above, even when the government is greasing the skids. The first government assistance programs after the housing bubble burst offered to help homeowners only after they stopped paying their mortgages. But a later program — the Home Affordable Refinance Program (HARP) — was designed specifically to help out those underwater homeowners still paying their mortgages on time by giving them access to the low rates so many others are enjoying. HARP has been refined several times since its inception in 2010, and every version of the plan has made it easier for homeowners to qualify. But getting the word out hasn’t been easy. Quicken and other mortgage originators have aggressively tried to let homeowners who qualify know about the program. “We get their home number, the business number, their e-mail, we express-mail packages to their house so it looks serious,” says Dan Gilbert, founder and chairman of Quicken. “We leave messages; we tell them, ‘Go look up HARP on Google and you’ll see it’s real.’ We don’t quit.” And yet almost half of these homeowners don’t respond. “If you would have told me all the facts about how this works before, I would have predicted we’d get 80% to 85%,” Gilbert marvels. MORE: We still have renters to thank for healthier housing market Ultimately, Quicken says, only about 25% of the homeowners who qualify for HARP actually end up refinancing. And that’s the shame of it all. HARP is a smart program. It rewards good behavior — those who have continued to pay their mortgages — while lending a helping hand to those who could really use it. And it attempts to even the playing field by giving more Americans fair access to the low interest rates enjoyed by big businesses and the wealthy. This program is also good for the economy, as consumers spend much of the money they save on their mortgage payments. So how do the government and mortgage originators convince the public to take advantage of a program that can truly help many who need it? It’s the classic lesson of once bitten, twice shy. Wounds from all those no-money-down loans and balloon payments have yet to heal for the homeowners bitten when the housing bubble burst. Others still feel the sting of paying hundreds for appraisals in an attempt to refinance, only to be spurned when their homes were valued at less than they owed on the mortgage. It may be hard for those consumers to trust again anytime soon. But for those with the courage to give it another go, love might actually be better the second time around. This story is from the February 25, 2013 issue of Fortune.

Granby Real Estate Broker – 30-Year Fixed Mortgage Rates Rise Slightly – Farmington Valley Real Estate Broker

30-Year Fixed Mortgage Rates Rise Slightly Date:February 19, 2013|Category:Finance|Author:Camille Salama Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.46 percent, up from 3.43 percent at this same time last week. The 30-year fixed mortgage rate hovered between 3.44 and 3.5 percent for the majority of the week, dropping to the current rate this morning. “Rates remained fairly flat this week with little news to suggest a change in slow-but-steady growth trends both in the United States and abroad,” said Erin Lantz, director of Zillow Mortgage Marketplace. “Due to the short week, we expect to see very little movement in mortgage rates this week.” Additionally, the 15-year fixed mortgage rate this morning was 2.65 percent, and for 5/1 ARMs, the rate was 2.32 percent. Contact Santa Realty a Real Estate Company in Granby, CT

East Granby real estate – Tax Benefits of Rental Property – East Granby realtor

Tax Benefits of Rental Property Tax Deductions for Owner-Occupied Rental Property How to Calculate Rental Property Appreciation for Income Tax Purposes Tax Deductions for Condo Fees on Rental Property Tax Implications of Owning a Residential Rental Property The Definition of Gross Receipts for a Rental Property 65 and Over Property Tax Benefits in North Carolina Owning rental property brings you a number of benefits. Many properties offer an attractive mix of equity growth and cash flow, but the tax shelter is probably the most appealing benefit. Since rental properties straddle the line between investments and businesses, you typically get liberal write-offs and tax advantages, including tax deferrals for exchanging rental properties. Tax-Sheltered Growth Most real estate investors hope their properties will gain value every year. Some of the growth comes from monthly payments on your mortgage, which increases your equity ownership in the property. Additional growth comes from your property increasing in value due to a healthy market or, in the case of rental properties, due to growing net operating income. Since the Internal Revenue Service does not recognize capital gain until you sell the property, your money continues to grow as long as it stays in the property. Sponsored Link 12% Yield Stocks to Buy These stocks yield 12%, yet most US investors don’t know they exist. www.GlobalDividends.com Tax-Sheltered Cash Flow The IRS only requires you to pay tax on the profit that you earn from your rental properties. To calculate your profit, add up all your rental and other income and subtract all your expenses. Your rental property expenses include obvious things like mortgage interest, repairs, property taxes and management fees. It can include expenses related to travel. For instance, if you own a beach house in Hawaii and spend a week there to work on it, the entire trip would be tax deductible. Depreciation of your property allows you to write off a portion of the property’s purchase price every year as a way of acknowledging that it gradually wears out. You don’t spend anything to get the depreciation deduction; it just helps to cancel out other income, reducing your tax liability. Passive Activity Loss Deductions With all the expenses you can claim on your investment property, it’s not that hard to end up with a taxable loss. In most cases, you can’t use losses from passive activities, like investing, to offset active income that you earn from your job. However, the IRS will allow you to claim up to $25,000 in passive activity losses from rental real estate against your regular income. To qualify for the tax benefit, your modified adjusted gross income must be below $100,000 — or below $50,000 if you are married and file separately. For income over the modified adjusted gross income threshold, your ability to claim a passive activity loss falls $1 for every $2 of income. Tax-Free Exchanges If you sell your rental property and use the proceeds to buy more investment property, even if it is of a different type or located in a different state, you can structure the sale as a tax-deferred exchange. By following the IRS’ rules, you can carry your cost basis from your old property forward into your new property. Since the IRS doesn’t look at this type of transaction as a sale, you won’t have to pay any capital gains taxes or depreciation recapture taxes on the exchange. Contact Santa Realty a Real Estate Company in Granby, CT

East Granby Real Estate Broker – When Is a Real Estate Agent a REALTOR®? – East Granby Real Estate Company

When Is a Real Estate Agent a REALTOR®? A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world’s largest professional association. The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics. Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry. Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice. Working for America’s property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members. Check out the Public Awareness Campaign television and radio spotsthat encourage consumers to rely on the expertise and integrity of REALTORS®. The NAR advertising campaign runs February through November on network and cable television and network and satellite radio, helping consumers understand the real value of working with REALTORS®. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS® are the experts of residential and commercial property transactions. Santa Realty are REALTORS located in the Farmington Valley, proudly serving all of Hartford County, and surrounding areas.  Contact the #1 Real Estate Company in CT today for all of your real estate needs!

Realtor East Granby CT – 5 Secrets Your Contractor Doesn’t Want You to Know – Real Estate East Granby CT

5 Secrets Your Contractor Doesn’t Want You to Know You’ve asked friends to recommend great contractors, picked your favorite,  checked references — and maybe even conducted an online background check on his business. So  you know you’ve found a top-notch guy for your home improvement project. But remember that his bottom line is getting you to sign a  contract, and he’s not going to mention anything that might get in the way.  Before you make a commitment, here’s what you need to know in order to protect  your own bottom line. 1. He’s desperate for your business As tough as the  economy has been overall, the construction industry has been in far worse shape.  While the national unemployment rate has hovered around 8%, for construction  workers it’s been a whopping 17% and higher. What you should  do: It doesn’t mean you should play hardball with your contractor on  his price (because he might cut corners on the job if you do), but if you ask  for an itemized bid, and explain that you’re getting them from a few  contractors, he’s going to sharpen his pencil and give you his most competitive  price. 2. He’s going to farm out the work General contractors  often don’t do the physical work themselves. They might have been carpenters or  plumbers, but now that they run their own businesses, they’ve retired their tool  belts. Instead, their role is to sign clients, manage budgets, and  schedule a cast of subcontractors. When he’s trying to win your  business, a contractor can be pretty vague about how involved he’s going to  be — and who will be running the job day-to-day. What you should  do: Inquire who will be in charge of the jobsite. Ask to meet the job  foreman, preferably while he’s at work on a current jobsite. “Maybe he’s a chain  smoker or doesn’t speak English or who knows what?” says Stockbridge, Mass.,  contractor Jay Rhind. “You want to make sure you feel comfortable with  him.” 3. A big deposit is unnecessary — and possibly  illegal When you sign  a contract, you’re usually expected to pay a deposit. But that’s not for  covering the contractor’s initial materials or set-up costs. If his  business is financially sound and he’s in good standing with his suppliers, he  shouldn’t need to pay for anything up front. In fact, many states limit a  contractor’s advance. California maxes out deposits at 10% of the job cost, or  $1,000 — whichever is smaller. What you should do: If  your contractor is asking for, say, 25%-30% of a job that’s not even due to  start for a while, offer to give a more nominal amount (5%-10%) with the  contract and the rest on the day the work commences. 4. He’s not  only marking up labor, but materials too No contractor wants to  talk about it, but he’s going to mark up everything he pays out to make your job  happen. That’s fair; it’s how he pays his own overhead and salary. Keep it in  mind that the 10% to 20% mark-up applies not just to materials but labor costs,  too. What you should do: If you can handle buying items  such as plumbing fixtures, cabinets, countertops,  and flooring, ask your  contractor to take them out of his bid price. Be sure to agree on specific  numbers and amounts of what you’ll be buying, and that you’ll have the items to  the jobsite when they’re needed. You could save 10%-20% or more from what your  contractor might charge. 5. He’s not the design whiz he claims to  be Sure, there are contractors who have strong design abilities.  Chances are, however, they’re spending a lot more time running their businesses  than honing their design chops. What you should do:  Don’t count on a contractor to design your space and add clever details, unless  he clearly demonstrates his abilities and has a portfolio of his own designs.  Ask his references specifically about his design skills. Otherwise, you’re  better off hiring  an architect for overall planning, and a kitchen and bath designer for the  details. The cost of those design professionals usually is compensated by  efficient planning and problem-free design work.  

Real Estate agent East Granby – Home Buyers With Foreclosures On Their Credit Get Back In The Game – Real Estate Agency East Granby CT

Home Buyers With Foreclosures On Their Credit Get Back In The Game Real Estate News There’s an interesting phenomenon happening in the real estate buying cycle. Now that most of the country is five to seven years out from its real estate peak, and most major cities are actually into the upswing of home prices, distressed homeowners of yesteryear are becoming the home buyers of today. Rules for qualifying for a mortgage vary widely between lenders and loan programs, but one of the most-often used loans today is the FHA mortgage. Today’s FHA mortgage requirements for foreclosures and bankruptcies (see your lender for exact details): A foreclosure that was discharged three years ago A bankruptcy discharged two years ago The initial reaction by many to this situation is: Again?  We’ve certainly all seen enough shoddy lending and lax credit practices during the last boom-bust cycle and, on the face of it, this seems like an invitation to more. However, the details of how these home buyers must qualify diverges widely from the way sub-prime home buyers were qualifying for loans in the past.  The new practices, while still generous to the buyer, create far greater protections for the lender and the American public who, in the long run, foot the bill for defaults. Home buyers with foreclosures and bankruptcies on their records need to show a consistent history of pristine credit since the time of their foreclosure. Additional FHA requirements (there are more, refer to a lender): On-time bill payment on all credit accounts since the foreclosure/bankruptcy A 640 credit score (responsible credit use is absolutely essential to gain this score 3 years out of foreclosure) A verified down payment (3.5% or higher, depending on the borrower) Upfront and ongoing mortgage insurance (which protects the lender from debts in case the buyer defaults) Significantly lower debt-to-income ratios (ensures the buyer has ample discretionary income to make payments long-term) Underwriters scrutinize these borrowers’ loan applications far more than an average home buyer.  In contrast, during the real estate boom, a buyer could be approved for a mortgage with very little credit history to support it. Sub-prime mortgage approvals at the height of the real estate boom: 580 credit score 100% Financing or 80/20 1st/2nd mortgages (no money down) Foreclosure 2 years out Bankruptcy 2 years out No income verification Total debt ratios up to 60% While the changes in lending to borrowers who have past foreclosures and bankruptcies may not satisfy all critics, there are also mitigating factors that underwriters take into consideration.  Remember that even though a home buyer’s past foreclosure may have been closed as of three years ago, the banks sometimes take up to a couple of years to push a foreclosure through.  That person may have essentially handed the home back to the bank five years ago and been repairing their credit ever since.  Underwriters can take this into account. Moreover, there are many different situations that lead to foreclosure.  Certainly some buyers overspent, got in over their heads, and walked away from a bad investment.  Those are going to be viewed less favorably by a lender.  Others have lost their homes due to job loss, divorce, deaths in the family, and a host of other reasons. When an underwriter can see that home buyers have been responsible with credit in every instance of their lives except for under one unforeseen loss of income or spouse, there is great reason to believe that these people, under the newer, more restrictive lending guidelines, are a good credit risk.  The lender and the public are protected by these buyers paying for mortgage insurance, and their re-introduction to the housing market in a new economy will allow them to re-establish a long-term credit track record and keep the housing market moving. Contact Santa Realty, the top real estate broker in Connecticut for all of your real estate needs!

realtor Granby CT – Owning a Rental Property Is ‘Sweet Spot’ in Market – realtor East Granby CT

Owning a Rental Property Is ‘Sweet Spot’ in Market Daily Real Estate News |      Thursday, February 07, 2013   Ultra-low mortgage rates mixed with housing affordability has made investing in a rental property pay off for investors. Many investors have eyed foreclosures, snagging them at rock-bottom prices, and turning them into rentals. Some home owners have also used the downturn in housing to purchase second homes and then rent out their first property, the Associated Press reports.Demand for rental housing remains strong. “In this market, at this point, it’s a sweet spot,” says Chris Princis, a senior executive at financial advisory firm Brook-Hollow Financial and owner of two rental properties in Chicago. “You’re getting the market where it’s just starting to rebound, but still at the bottom, with what’s looking to be a great recovery.” In earning a profit on a rental investment, Princis uses a formula: He charges 15 percent above monthly mortgage and maintenance costs. But it’s also important to know what comparable apartments are going for, and to be flexible in case you’re unable to find a tenant for months, experts note. The best investments for rentals typically prove to be in areas with a strong history of rental demand, such as neighborhoods near universities or homes in residential areas that are near schools to attract families. Source: “Got Cash, Good Credit? Experts Say Owning Rental Housing Can Pay Off Even as Market Recovers,” The Associated Press (Feb. 6, 2013) Santa Realty are rental experts in the Farmington Valley.  We have rental properties of our own and have investors who also peruse the market for opportunities.  Contact us today if you are seeking a rental property or looking for a rental!  We are the top real estate company in the rental market in the Farmington Valley.

Real Estate agent Simsbury CT – Affordability Options For First-Time Buyers – Real Estate agency Simsbury CT

Affordability Options For First-Time Buyers Try fixer-uppers and smaller homes By Broderick Perkins First-time home buyers who want affordable homes may want to take a hard look at fixer-uppers, smaller homes and cheaper commutes to work to save on the costs of buying and owning a home. Real estate brokers say many home buyers expect more than they can afford in a home and once they start pounding the pavement for housing their disconnect could be discouraging. In an online survey of 150 of its brokers, Coldwell Banker discovered some disturbing trends among first-time home buyers. While nearly half of the Coldwell Banker brokers surveyed said affordability was the No. 1 concern for first time buyers, 81 percent of those buyers also consider move-in conditions to be very important when searching for homes. Only 7 percent are considering fixer-upper homes. The real estate company suggests more buyers should examine the fixer-upper option — among others — to get the affordability they seek. “In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate, LLC. “It is important for first-time homebuyers to remember that by considering a fixer-upper for their first home purchase, they can build equity over time and later move up and into their second-stage home that better reflects their expectations,” he added. Buyers looking for affordability who go with the fixer-upper option should get the home professionally inspected to determine what fixing up is necessary, and certainly not bite off more than they can chew. Even homes that need a basic face lift — paint, carpeting, landscaping, window treatments and other cosmetic touches — can come with big savings. Homes that may require professional upgrades cost even less, but the buyer has to weigh the discounted price against the cost of the improvement. Coldwell’s study also found some disconnect between affordability desires and what buyers want in home size and its location. The vast majority of first-time buyers, 71 percent, were looking for larger homes than they were 10 years ago, brokers reported, but bigger isn’t better when it comes to price. A smaller single-family home or a condo or townhome can be cheaper by virtue of the smaller footprint and square footage. The smaller cost on a smaller home also could come with affordability Forty-one percent of brokers also said, for their buyers, proximity to their workplace was numero uno when it came to considerations made when looking for a home. Higher gasoline prices have made the job center location factor even more crucial, however, in most metros, a home’s proximity to employment centers comes with an added cost. Homes nearer job centers cost more because of the added value of reduced transportation costs and time (which is money) spent commuting. However, buyers can enjoy the best of both worlds if they purchase a cheaper home away from job centers, but in a transit oriented development (TOD) or other distant community that offers low-cost public transit to work. Carpooling, trip sharing and car sharing communities boost the idea of affordable housing. Coldwell Banker also said 46 percent of the survey respondents reported that first-time home buyers look at five to 10 homes, on average, before making a purchase. The message is simple here. Spend more time looking at more homes for sale. Instead of five to 10, make it 10 to 20. Take the time to find affordability. Discounts were more likely available from homes that had been on the market for 90 days or more; homes for sale that were owned by long-time owners; homes for sale from flipping investors down on their luck; and properties owned by we-want-to-sell-real-estate banks who now know what it means to be careful what you wish for. While nearly half of the Coldwell Banker brokers surveyed said affordability was the No. 1 concern for first time buyers, 81 percent of those buyers also consider move-in conditions to be very important when searching for homes. Only 7 percent are considering fixer-upper homes. However, buyers can enjoy the best of both worlds if they purchase a cheaper home away from job centers, but in a transit oriented development (TOD) or other distant community that offers low-cost public transit to work. Carpooling, trip sharing and car sharing communities boost the idea of affordable housing. Coldwell Banker also said 46 percent of the survey respondents reported that first-time home buyers look at five to 10 homes, on average, before making a purchase. The message is simple here. Spend more time looking at more homes for sale. Instead of five to 10, make it 10 to 20. Take the time to find affordability. Discounts were more likely available from homes that had been on the market for 90 days or more; homes for sale that were owned by long-time owners; homes for sale from flipping investors down on their luck; and properties owned by we-want-to-sell-real-estate banks who now know what it means to be careful what you wish for. The real estate company suggests more buyers should examine the fixer-upper option — among others — to get the affordability they seek. “In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate, LLC. “It is important for first-time homebuyers to remember that by considering a fixer-upper for their first home purchase, they can build equity over time and later move up and into their second-stage home that better reflects their expectations,” he added. Buyers looking for affordability who go with the fixer-upper option should get the home professionally inspected to determine what fixing up is necessary, and certainly not bite off more than they can chew. Even homes that need a basic face lift — paint, carpeting, landscaping, window treatments and other cosmetic touches — can come with big savings. Homes that may require professional upgrades cost even less, but the buyer has to weigh the discounted price against the cost of the improvement. Coldwell’s study also found some disconnect between affordability desires and what buyers want in home size and its location. The vast majority of first-time buyers, 71 percent, were looking for larger homes than they were 10 years ago, brokers reported, but bigger isn’t better when it comes to price. A smaller single-family home or a condo or townhome can be cheaper by virtue of the smaller footprint and square footage. The smaller cost on a smaller home also could come with affordability Forty-one percent of brokers also said, for their buyers, proximity to their workplace was numero uno when it came to considerations made when looking for a home. Higher gasoline prices have made the job center location factor even more crucial, however, in most metros, a home’s proximity to employment centers comes with an added cost. Homes nearer job centers cost more because of the added value of reduced transportation costs and time (which is money) spent commuting. Copyright © byRealty Times To meet with Santa Realty, the #1 realtor in Connecticut, pick up the phone and call Rick or Kristina today!

Real Estate Brokerage Simsbury CT – How to Negotiate the Best Deal – Realtor Simsbury, CT

Buyers have the advantage in this shifting market By Rick Hazeltine Buyers are finally being able to take advantage of cooling trends in previously hot markets. Multiple offers are no longer being thrown at sellers as soon as the For Sale sign hits the front yard. Competition has dwindled in many areas as investors disappear and buyers take to the sidelines. Unless a buyer thinks his local market is headed for a big downturn, this could be the pause that allows him to get into the market with a few perks unheard of in recent years as a bonus. So how do you know what shape your market is in? Economists believe that real estate is closely tied to employment, so if you’re in an area of growing employment, don’t expect to see double-digit depreciation anytime soon. In areas such as the Midwest, where auto manufacturing is king, prices have fallen sharply and will likely continue until the industry rebounds. Here are 10 things buyers need to know to negotiate the best deal in a market shifting to their favor: 1. Human nature is the biggest problem for sellers and buyers to overcome in a changing market. Prices stagnate or drop a few percentage points and it’s amazing how different buyers and sellers react. Sellers still think their house is “special” and immune to the market. Buyers figure every seller is about to be foreclosed on and make ridiculous low-ball offers. Smart buyers do their homework, know what size home they need, how much they can afford and then search the market for what they want and negotiate fairly. 2. When you make an offer, know the recent comparable sales; it’s the best bargaining tool. “See what’s going on out there,’’ says Beverly Durham of ReMax Gold Coast Realty in Camarillo, Calif., where entry-level single-family homes begin at $500,000. “Make an offer $10,000 to $15,000 under what the last one sold. Even in this market, if you insult your seller, they won’t want to deal with you. Sellers know what the last one sold for. You want them to at least look at your offer.” 3. Find out as much as you can about the seller’s motivation — retirement, job, divorce, wants to move up but only if he gets the right price. Durham says if a buyer knows the seller’s motivation they can negotiate a better deal or move on to the next property. 4. Multiple Listing Service (MLS) properties usually state what the seller owes. If not, your agent should be able to track down the figures. There’s a big difference in negotiating with an owner who owes more than the house is worth and one who has a lot of built-up equity. 5. “After 45 to 60 days the seller is usually absolutely sick of keeping their house spotless and sick of people walking through,’’ said Durham. This is when a seller may be the most anxious about selling their house as traffic to their house has likely fallen sharply. 6. Unless you’re incredibly handy and have time and cash, go after houses that are as updated as you can afford. This is easier to do in a stagnant or falling market and fixers aren’t usually discounted enough to be worthwhile. 7. In a tighter market, it’s not too much to ask the seller to add the closing costs to the price of the house. It’s better to put 20 percent down and add the closing costs to the loan than put 15 percent down and pay the costs upfront. 8. Items to ask for that shouldn’t offend sellers are paying for new kitchen appliances or washer and dryer. Most sellers will be willing to do so to close the deal. Durham also says it’s OK to ask sellers to pay up to the first year of homeowner association dues. 9. Don’t request anything that requires quality workmanship. “Don’t ask them to paint,’’ Durham said. “They won’t do it the way you want. They’ll do a lousy job.’’ Also, don’t get carried away and ask for the entire store. Be reasonable. 10. Make sure to look at the big picture. In changing markets you should be planning to stay for at least five years, so don’t get caught up in a $2,000 price difference. Remember, the goal is to get the house you want to live in for some time, not to impress friends with how you worked the previous owner. Copyright © by Move, Inc. Get the Realtor.com Real Estate Search App for iPhone and for Android.