Most Young Consumers Want to Buy a Home, Survey Finds

Today, the vast majority of consumers between the ages of 25 and 44, comprising both millennials and those in Generation X, say that home ownership is at least somewhat important to them, according to a new survey from Prudential Real Estate. In all, 96 percent of all consumers feel this way. But 77 percent of those aged 25 to 34, and 78 percent of people between 35 and 44, say it's "very important." Further, 74 percent say that the current levels of affordability lent by historically low interest rates mean that now is a great time for them to buy a home.


In addition, 63 percent of those polled say they currently have a favorable view of the real estate market in general, and those in the younger generations were typically more enthusiastic about it than their older counterparts, the report said. Further, the number of people who contemplated getting into the market but did not buy or sell a property in the previous year was up 10 percent in the last six months of 2012 when compared with the end of the second quarter.

However, many consumers are still understandably cautious about wading into real estate even with all the improvements and good sentiments, the report said. In all, 62 percent say they're having more trouble getting financing from lenders than they would have faced prior to the downturn, and 72 percent want to have a trusted partner in their lender. It's believed that more buyers will continue entering the market in the next year at least, driven largely by interest rates and prices that have remained extremely low when compared with historical norms.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Why You Might Want to Add More Photos to Your Listing

Selling a home is a lot of work, you have to find the right realtor, find the best marketing strategy, and make sure you listing gets published to the internet in as many places as possible. But do you take the time to make sure you have enough good pictures of your home?

Studies have shown that you could increase the sale price of you home by 3.9 percent simply by adding one picture. A new study of 4,000 homes evaluated by researchers Justin D. Benefield, Christopher L. Cain and Ken H. Johnson, shows that the more photos you add to you listing the more you stand to gain. Each photo could net the seller about $150 to $200, not bad for a little bit of extra work.

A good working ratio Johnson told The Wall Street Journal is to have a ratio of four to five interior shots of a home to every one exterior shot. Interior shots were found to have a bigger effect in increasing the sales price than exterior photos. Interior shots were found to increase the value 4 percent vs 1.9 percent increase from exterior shots.

Although the study shows that adding photos could increase the sale price of you home there is a bit of a catch 22 for some people. The same study found that adding photos to a listing increased the time that it takes to sell a home by 16.5 extra days. The reason Johnson suggests is that photos provide buyers with more information to consider and can slow the decision process.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

Controlling Allergens in the Home

Household allergens can cause a variety of symptoms in many people, including sneezing, watery eyes, coughing, and shortness of breath. Allergens may also be a contributing cause of asthma, especially in children. However, it is possible to minimize the effects of such allergens by taking steps to control their presence and dispersal in the home.

The most common household allergens include dust mites, mold, mildew, pollen, and pet dander (dried flakes of skin shed by pets, particularly cats and dogs). Effective control relies on a combination of measures that, when used properly, will reduce the levels of allergens

• Increase ventilation to the home. Opening windows whenever possible promotes good air exchange and will reduce the concentration of airborne allergens, especially pet dander.

• Wash bedding and stuffed toys once a week in hot water to control dust mites and cat allergens in particular.

• Keep pets clean and well groomed to control dander.

• Use mite-resistant mattress covers and pillow covers and wash these frequently.

• Dust and vacuum regularly, and use microfiltration or HEPA filter vacuum bags. The jury is still out on whether bagless vacuum cleaners are more effective in removing allergens than those that require bags; some studies indicate that many bagless vacuums are not sealed tightly enough and can actually exacerbate the problem. Wearing a dust mask while dusting and vacuuming is also a good idea.

• Consider removing wall-to-wall carpeting and use easily-cleaned area rugs instead, particularly in bedrooms.

• Make sure bathrooms, especially those with showers, are well ventilated. Open the window and use exhaust fans that vent to the outdoors to prevent a buildup of moisture, which can encourage growth of mold and mildew.

• If possible, reduce indoor humidity to 50% or less by using room dehumidifiers or the dehumidifier feature available with many central air conditioning systems.

• Clean or replace furnace and central air conditioner filters on a regular basis. Make sure that air conditioner drain pans are clean and allow the water to drain properly.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com

FHA Mortgage Insurance Premiums on the Rise

The Department of Housing and Urban Development and the Federal Housing Administration will increase FHA Mortgage Insurance Premiums according to a press release dated February 27, 2012.

The press release, HUD No. 12-037, states, “FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.50 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.”

The increases are scheduled take effect in April 2013, so if you are in the market for a FHA insured loan it is advised to start the paperwork before March 24th so you can be sure you have a case number issued before the April 1st deadline.

FHA mortgage insurance premiums may be going up, but according to the press release, the changes are not severe, adding to about five dollars per month for most new FHA home loans where applicable or $100 per year for each $100,000 in loan amount.







The Bigger hit announced however is the fact that borrowers may be paying the mortgage insurance premiums for longer. Under the old rules a borrower could get rid of the PMI premiums after paying them for 5 years if the Loan dropped below 78 percent of the value of the home. But under new rules home owners who's loan is 90 percent or higher to the value of the home will have to make those PMI payments for the life of the loan.

As stated previously, the FHA Up Front Mortgage Insurance Premium is also affected; the current rate of one percent will increase to 1.75 percent of the base loan amount.

According to FHA.gov, “This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2013,”

The press release also adds, “Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.”

For more information on the announced FHA mortgage insurance premium increases, visit the FHA official site.

iDeal Realty & Management

9051 W Kelton Lane, Suite 10

Peoria, Arizona 85382

(623) 201-3544

www.idealrealtyaz.com