Jersey's housing market is doing better than most other states
Wednesday, May 14, 2008
BY SAM ALI
Star-Ledger Staff
The median price for a single-family home fell 7.7 percent, to $196,300, in the first quarter, compared with the same period last year -- the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982.
But the Northeast region bucked the national trend, with existing home prices rising 3.2 percent during the quarter, to a median of $280,000. The Northeast was the only region in the country to show a rise in home prices during the first three months of the year, according to quarterly housing data released yesterday by the NAR.
In New Jersey, the housing market continued to fare better than the nation as a whole.
Home prices in the Garden State rose in a number of areas, including the Atlantic City region, where the median sales price increased 4.8 percent in the first quarter, to $277,400, and the Trenton-Ewing market, where the median price rose 1.6 percent, to $288,200. The median is the price where half the homes sold for more and half for less.
And in stark contrast to the rest of the country, New Jersey was one of only three states where the volume of existing home sales actually rose in the first quarter compared with a year earlier.
Nationally, existing-home sales -- which generally account for 85 percent of all home sales -- dropped 22 percent from the first quarter of 2007, the NAR reported.
However, in New Jersey, the sales volume rose 4 percent. The other two states that posted increases in home sales for the quarter were Alaska and Illinois.
Kenneth Fears, an economist with the NAR, attributed the jump in existing home sales in New Jersey to a dramatic drop in 30-year fixed mortgage rates over the past six months. Fears said interest rates on conforming, 30-year, fixed-rate loans slipped to as low as 5.8 percent, from 6.8 percent, making home buying more affordable.
The low rates, coupled with sluggish sales the previous two quarters and New Jersey's proximity to Manhattan, apparently led to a spike in demand during the most recent quarter.
"Part of what we're seeing now is pent-up demand is getting released again," Fears said. "Sales in New Jersey were very slow for awhile and it was hard to get financing and rates were higher. It has since loosened up."
Also helping spur sales in New Jersey is a resurgence in the number of lenders getting approved to make FHA loans -- mortgages backed by the Federal Housing Administration that cater to people with blemished credit and low-to-moderate income households, said Lawrence Yun, chief economist of the NAR. Demand for FHA loans, which historically accounted for about 20 percent of mortgage originations, dried up during the housing boom as homebuyers were lured by the ease of securing subprime loans, Yun said.
FHA applications rose 95 percent in the fourth quarter of 2007, Yun said.
"To originate FHA loans, lenders first need to get certified from the HUD (Department of Housing and Urban Development), and more and more lenders are trying and getting approved," he said.
Yun said he expects an even bigger rise in FHA loan usage this year.
The housing market in other parts of the country clearly did not fare so well during the first quarter, according to the NAR report.
The NAR's quarterly survey of home prices showed prices in the South, dropped 7.5 percent, to a median of $164,200; in the Midwest, they fell 7.9 percent, to $142,700; and in the West, they plunged 12.3 percent, to $296,300.
All told, median prices in 100 of 149 metro areas fell in the first quarter of 2008.
In New Jersey, existing home prices in the Newark-Union area, which includes Essex, Hunterdon, Morris, Sussex and Union counties, fell 3.4 percent, to $409,300. In the New York-northern New Jersey area, the median price fell 3.9 percent, to $445,4000. And in the Edison area, which includes Middlesex, Monmouth, Ocean and Somerset counties, the median home price fell 0.6 percent, to $361,200.
But even in those parts of the state where prices fell, the declines were modest compared with most of the rest of the country.
The NAR blamed much of the record decline in home prices on liquidity problems that are making it difficult for homebuyers to secure financing for expensive homes in high-priced markets.
Indeed, lenders are charging between 1 and 1.5 percentage points more for so-called jumbo loans, compared with conforming loans under $417,000, said Keith Gumbinger, a vice president at HSH Associates, a financial publisher based in Pompton Plains. And the higher rates are discouraging sales in higher price ranges, he said.
As of last week, the average rate on a 30-year fixed jumbo mortgage was 7.18 percent, compared with 6.03 percent for a conforming loan, Gumbinger said.
Also hurting home prices and sales is the big spike in foreclosure rates over the past 12 months, Fears said.
A separate report yesterday showed the number of home foreclosures rose sharply last month compared to April 2007, jumping 65 percent nationally. Data released by the California-based research firm RealtyTrac showed more than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.
"In areas where you have a lot of foreclosed properties, lenders are fire-selling those homes at deeply discounted prices, so that is skewing median prices down as well," said Walter Molony, a spokesman for the NAR.
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Tuesday, May 20, 2008
Tuesday, September 11, 2007
Which Home Improvements Pay Off?
by SmartMoney.com StaffJune 9, 2006
GENERALLY SPEAKING, there are two ways to go about making home improvements. Either you splurge for something purely for the sybaritic pleasure of having it — the Italian marble bathroom you've dreamed about; that skylight that your spouse has been hinting at for the last six years — or you take a pragmatic approach, buying an energy-efficient furnace or repairing a leaky roof because you want to increase your home's market value.
Don't expect to score on both counts. "Just because you pour $20,000 into your home doesn't mean that your house is worth $20,000 more," says Frank Dell'Accio, a real-estate broker in Lindenhurst, N.Y. "I had a guy who invested $100,000 in a $130,000 home after he lived there for four years. He put it on the market at $225,000. He was offered $170,000." His mistake: spending money on amenities that were only peripheral to the value of the house. "He wanted phones in the bathroom," says Dell'Accio, "but [who else is] going to pay for them?"
Exactly how much you'll recoup in costs depends on several factors, including the direction of the broader housing market, the value of the homes in your neighborhood, when you plan to sell the home and the nature of the project itself, explains Jim Cory, senior editor of Remodeling magazine. In the hottest housing markets, you could indeed earn more than your investment back on a remodeling project. A new deck in San Francisco, for example, recoups 152% of its costs, according to Remodeling magazine's latest survey (which assesses the cost recouped should the house be sold within one year of project completion). But you shouldn't count on those types of returns. In Columbus, Ohio, the same project is likely to only recoup 45% of its costs.
And keep in mind that the longer you hold on to your home after a remodeling project is completed, the less likely you are to recoup its value. That's in part because design tastes can shift significantly over time. Remember when avocado green was all the rage? Also, there's little reward for having the fanciest house on the block, warns certified financial planner Dee Lee of Harvard, Mass. A house that's priced higher than its neighboring homes could be perceived as overpriced — even if it does have more value.
This section examines a few improvements that pay off more often than not — and some that rarely make a difference when it comes time to sell your home.
Kitchens Even a few basic improvements to your kitchen can pay handsome dividends, says real-estate agent Michael Murphy in his book "How to Sell Your Home in Good or Bad Times." Murphy writes: "For most buyers, [the kitchen] is the heart of the house. Paint, wallpaper, and even refloor the room if necessary. Consider sanding, staining or painting dingy-looking cabinets. Replace old cabinet hardware — a low-cost improvement that makes a big difference in appearance." Just be sure to go with a classic design and, if possible, use high quality materials, says Remodeling magazine's Cory. After all, good taste endures.
The average amount spent on a major kitchen-remodeling job in the U.S. is $42,660 for a mid-range update; an upscale designer makeover averaged $75,206, according to Remodeling magazine. The mid-range kitchen overhaul nationally recouped 79% of its cost, the upscale makeover was valued at 80%.
Creating New Space As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. It's also significantly cheaper than adding an addition to your home. Converting an attic into a bedroom suite, for example, usually costs about $35,960 and returns about 83% of its cost, according to Remodeling magazine. Turning your basement into a room for socializing will set you back, on average, $47,888, and allow you to recoup 76% of your costs.
An Extra Bathroom Adding an extra bathroom with all the trimmings — marble vanity top, molded sink, bathtub with shower and ceramic tile — almost pays for itself. At an average cost of $21,087 a full bath recoups 86% of its price tag.
Decks Installing a deck may be the most cost-efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Decks average $6,917 and generally recoup 87% of their value. That may not sound terribly impressive, but other touted outdoor improvements fare much worse.
New Windows The savings on your utility bill might make up for the spotty resale value. Replacing 10 three-by-five-foot windows typically costs $9,273 and recovers 85% of its costs at resale, according to Remodeling magazine. "A good window arrangement, as long as they're standard, will make money back," says William Eccleston, a broker in Coventry, R.I. But, he warns, "as soon as you get into customizing, with fancy shapes, bays and bows you can't see from the street, you're throwing money down the drain."
Swimming Pools It's commonly agreed that a swimming pool has no resale value at all. "I've had clients spend $300,000 and fill in the pool," says one agent. The main reason pools repel more prospective buyers than they attract is that they require expensive upkeep. Running a close second is the fear of liability: Pool accidents are a quick way to end up the subject of a negligence suit. "A lot of people don't want the responsibility," says Remodeling magazine's Cory.
Manicured Gardens Fancy gardens — which will require time and money to tend — usually won't add to the offering price. "Landscaping is for your own enjoyment," says New Jersey agent Frank Dell'Accio. "It may be a $40,000 investment, but there's no way it'll add $40,000 to the value of your house." The same goes for expensive fences and stone walls. They look nice, but buyers don't pay up for them.
Basic Improvements It may not be all that enjoyable, but it's the basic improvements that may have the greatest return on your home's value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem," says Cory. So if you're thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the home's structure or mechanical systems before you, say, install that hot tub you've always dreamed of.
Don't expect to score on both counts. "Just because you pour $20,000 into your home doesn't mean that your house is worth $20,000 more," says Frank Dell'Accio, a real-estate broker in Lindenhurst, N.Y. "I had a guy who invested $100,000 in a $130,000 home after he lived there for four years. He put it on the market at $225,000. He was offered $170,000." His mistake: spending money on amenities that were only peripheral to the value of the house. "He wanted phones in the bathroom," says Dell'Accio, "but [who else is] going to pay for them?"
Exactly how much you'll recoup in costs depends on several factors, including the direction of the broader housing market, the value of the homes in your neighborhood, when you plan to sell the home and the nature of the project itself, explains Jim Cory, senior editor of Remodeling magazine. In the hottest housing markets, you could indeed earn more than your investment back on a remodeling project. A new deck in San Francisco, for example, recoups 152% of its costs, according to Remodeling magazine's latest survey (which assesses the cost recouped should the house be sold within one year of project completion). But you shouldn't count on those types of returns. In Columbus, Ohio, the same project is likely to only recoup 45% of its costs.
And keep in mind that the longer you hold on to your home after a remodeling project is completed, the less likely you are to recoup its value. That's in part because design tastes can shift significantly over time. Remember when avocado green was all the rage? Also, there's little reward for having the fanciest house on the block, warns certified financial planner Dee Lee of Harvard, Mass. A house that's priced higher than its neighboring homes could be perceived as overpriced — even if it does have more value.
This section examines a few improvements that pay off more often than not — and some that rarely make a difference when it comes time to sell your home.
Kitchens Even a few basic improvements to your kitchen can pay handsome dividends, says real-estate agent Michael Murphy in his book "How to Sell Your Home in Good or Bad Times." Murphy writes: "For most buyers, [the kitchen] is the heart of the house. Paint, wallpaper, and even refloor the room if necessary. Consider sanding, staining or painting dingy-looking cabinets. Replace old cabinet hardware — a low-cost improvement that makes a big difference in appearance." Just be sure to go with a classic design and, if possible, use high quality materials, says Remodeling magazine's Cory. After all, good taste endures.
The average amount spent on a major kitchen-remodeling job in the U.S. is $42,660 for a mid-range update; an upscale designer makeover averaged $75,206, according to Remodeling magazine. The mid-range kitchen overhaul nationally recouped 79% of its cost, the upscale makeover was valued at 80%.
Creating New Space As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. It's also significantly cheaper than adding an addition to your home. Converting an attic into a bedroom suite, for example, usually costs about $35,960 and returns about 83% of its cost, according to Remodeling magazine. Turning your basement into a room for socializing will set you back, on average, $47,888, and allow you to recoup 76% of your costs.
An Extra Bathroom Adding an extra bathroom with all the trimmings — marble vanity top, molded sink, bathtub with shower and ceramic tile — almost pays for itself. At an average cost of $21,087 a full bath recoups 86% of its price tag.
Decks Installing a deck may be the most cost-efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Decks average $6,917 and generally recoup 87% of their value. That may not sound terribly impressive, but other touted outdoor improvements fare much worse.
New Windows The savings on your utility bill might make up for the spotty resale value. Replacing 10 three-by-five-foot windows typically costs $9,273 and recovers 85% of its costs at resale, according to Remodeling magazine. "A good window arrangement, as long as they're standard, will make money back," says William Eccleston, a broker in Coventry, R.I. But, he warns, "as soon as you get into customizing, with fancy shapes, bays and bows you can't see from the street, you're throwing money down the drain."
Swimming Pools It's commonly agreed that a swimming pool has no resale value at all. "I've had clients spend $300,000 and fill in the pool," says one agent. The main reason pools repel more prospective buyers than they attract is that they require expensive upkeep. Running a close second is the fear of liability: Pool accidents are a quick way to end up the subject of a negligence suit. "A lot of people don't want the responsibility," says Remodeling magazine's Cory.
Manicured Gardens Fancy gardens — which will require time and money to tend — usually won't add to the offering price. "Landscaping is for your own enjoyment," says New Jersey agent Frank Dell'Accio. "It may be a $40,000 investment, but there's no way it'll add $40,000 to the value of your house." The same goes for expensive fences and stone walls. They look nice, but buyers don't pay up for them.
Basic Improvements It may not be all that enjoyable, but it's the basic improvements that may have the greatest return on your home's value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem," says Cory. So if you're thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the home's structure or mechanical systems before you, say, install that hot tub you've always dreamed of.
Friday, August 24, 2007
Monday, August 6, 2007
9 Home Staging Tips for Faster Sale
- First impressions count Roll out the red carpet for potential homebuyers by sprucing up your entryways, especially the one on a lockbox. Welcome mats, planters filled with seasonal flowers, and clutter-free foyers and hallways set the stage.
- Sell the space, not your stuff. Remember that the goal of a successful showing is to make a prospect feel at home – like it’s theirs, not yours. Put away your extensive personal collections. Less is more: open up your space so prospects can actually see what they’re buying.
- Paint and elbow grease work wonders. Fresh paint and a thorough cleaning will give you the greatest “bang for your buck.” Remember that neutral walls are your best bet when staging a home for sale. Lowe’s has all the right shades to make your home more inviting. Check out lowes.com for fun tools like the Paint Visualizer http://www.valsparatlowes.com/ coordinate-colors.html.
- Go with the flow. Arrange furniture for easy traffic flow. Consider placing a major piece of furniture at an
angle, such as a couch or desk. Angles add interest and can create a more open feel. - See the light. Move lamps to dark corners and arrange window treatments so that natural light
floods your rooms. Brighter is better, and your rooms will look larger. Visit Lowe’s extensive lighting section for the latest in fashionable, functional lighting. - Go green. Live plants can add decorative flair, without spending a bundle. Plants and cut flowers have a way of warming up a room.
- Don’t forget the outdoors, especially this time of year. If you have a porch, deck or patio, clean the furniture and replace worn cushions. Breath new life
into your deck with a fresh finish; Lowe’s has a variety of deck staining and sealing products that are easy to apply. - Make the kitchen sparkle. De-clutter the countertops by removing toasters, food processors and other
non-decorative items. If you have a breakfast table or counter, put out a couple of table settings complete with place mats, napkins and dinnerware. - Warm up an empty home. If your home is vacant, consider renting furniture for key rooms, but don’t
go overboard. Ask your real estate professional for
advice, based on your home’s unique features and selling points.
Thursday, August 2, 2007
Selling Your Home in a Cooling Market
by Stacey L. Bradford
June 9, 2006
IF YOU'RE THINKING OF selling your home, chances are all the headlines warning of the real estate bubble bursting have you feeling a little anxious.
Already, the buying frenzy has slowed substantially in places like New York City, Miami, Washington, D.C., Las Vegas and San Diego — areas that reported very slow price growth in the fourth quarter of 2005, according to the National Association of Realtors (NAR). At the national level, the real-estate market has slowed down significantly compared with the frantic 2004 and 2005.
The NAR expects that as mortgage rates rise this year, home sales will drop: about 400,000 fewer people will buy homes this year compared to 2005, according to NAR spokesman Walter Molony. Already, the real-estate market is returning to what the trade group calls a balanced market between buyers and sellers. "What's happening now is with buyers being on more equal footing with sellers, they don't feel like they need to make snap decisions," says Molony. "They don't have to bid over the asking price, they can take the time to do the due diligence."
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what's selling, what's not and why. Finally, don't expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. "The first question a buyer asks is how long the house has been on the market," says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. "If it's been on a while, they ask what is wrong with the house."
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. "Overpricing leads to low bids," Liebman says. "Proper pricing leads to high bids."
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don't forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. "If your grass isn't green, make it green," Liebman says. "If you have weeds, get rid of them. If the shrubs are overgrown, cut them." Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. "If there are any doubts about the mechanical functions, a buyer will walk," Remodeling Magazine's Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don't forget to paint over ugly water stains. If you don't, a potential buyer could see it as a warning sign of a larger issue.
If you're inclined to leave your home as is, prepare to drop your asking price. "I hate to say it, but price cures everything," says Era Key Realty's Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There's some basic advice that's worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group's Liebman even suggests fresh flowers. "Baking cookies could be a bit silly and obvious," she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.
June 9, 2006
IF YOU'RE THINKING OF selling your home, chances are all the headlines warning of the real estate bubble bursting have you feeling a little anxious.
Already, the buying frenzy has slowed substantially in places like New York City, Miami, Washington, D.C., Las Vegas and San Diego — areas that reported very slow price growth in the fourth quarter of 2005, according to the National Association of Realtors (NAR). At the national level, the real-estate market has slowed down significantly compared with the frantic 2004 and 2005.
The NAR expects that as mortgage rates rise this year, home sales will drop: about 400,000 fewer people will buy homes this year compared to 2005, according to NAR spokesman Walter Molony. Already, the real-estate market is returning to what the trade group calls a balanced market between buyers and sellers. "What's happening now is with buyers being on more equal footing with sellers, they don't feel like they need to make snap decisions," says Molony. "They don't have to bid over the asking price, they can take the time to do the due diligence."
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what's selling, what's not and why. Finally, don't expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. "The first question a buyer asks is how long the house has been on the market," says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. "If it's been on a while, they ask what is wrong with the house."
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. "Overpricing leads to low bids," Liebman says. "Proper pricing leads to high bids."
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don't forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. "If your grass isn't green, make it green," Liebman says. "If you have weeds, get rid of them. If the shrubs are overgrown, cut them." Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. "If there are any doubts about the mechanical functions, a buyer will walk," Remodeling Magazine's Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don't forget to paint over ugly water stains. If you don't, a potential buyer could see it as a warning sign of a larger issue.
If you're inclined to leave your home as is, prepare to drop your asking price. "I hate to say it, but price cures everything," says Era Key Realty's Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There's some basic advice that's worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group's Liebman even suggests fresh flowers. "Baking cookies could be a bit silly and obvious," she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.
Eight Ways to Cut Summer Energy Bills
by Stephanie AuWerter
June 9, 2006
WITH SUMMER FINALLY kicking into gear across the country, you can almost hear the gentle hum of air conditioners ratcheting up. And with it, climbs home energy bills.
These days, the average household spends $1,400 annually on energy (based on electricity and gas usage), according the Environment Protection Agency. But much of that, say energy conservationists, is money wasted.
The good news: Cutting back doesn't mean you need to be a tree-hugging naturalist, suffering stoically as you read by candlelight. These days, you can do right by the environment and your pocketbook — without any major lifestyle sacrifices. In fact, by taking some relatively painless steps, you can cut your bills by one-third or more.
Here are eight easy ways to save this summer (including a few tips that will work year-round).
1. Upgrade Your Thermostat
Are you the type who likes to chill after a sticky workday by coming home to a house that's as cool as a meat locker? You can live this dream and cut your energy costs by investing in a programmable thermostat. These handy little devices allow you to cool your home at different temperatures at specific times, explains Mark Hopkins, acting co-president of the Alliance to Save Energy (ASE).
So you could, for example, turn down the AC during the day, when your family is away from home — and crank it up again 30 minutes before the first family member returns. Or, you could turn it down during the wee hours of the morning, when no one's likely to notice a shift in temperature.
Installing a programmable thermostat shouldn't set you back more than $100 to $150 — and the energy savings can be substantial. According to the U.S. Department of Energy, you could cut your heating and cooling bills by 10% annually just by turning your thermostat back 10% to 15% for 8 hours a day.
2. Go Green
OK — this will require a bit of effort on your part, but the returns are twofold: Planting just three shady trees around your house not only can whack $100 to $250 off your annual heating and cooling costs, according to the DOE, but will most likely make your yard more attractive, to boot. (Leafy trees can shield the house from direct sunlight, keeping temperatures down, while still permitting sunlight to hit your house during the winter months.)
Not interested in nurturing your green thumb? Simply pulling the shades (or drawing your curtains) can cut energy costs as well, says Mel Hall-Crawford, an energy efficiency expert at the Consumer Federation of America.
3. Keep It Clean
Keeping your air-conditioning unit clean and in peak performance is another big money saver. To kick the summer off, your AC unit should have a professional tune up (expect to pay somewhere between $90 and $120), says Wendy Reed, an Energy Star spokesperson at the EPA. (Energy Star is a joint program run by the EPA and the DOE that, among other things, deems certain products energy-efficient.) And air-conditioning filters (regardless of whether you have central air or an individual unit) should generally be checked every month or so to see if they need cleaning or replacement. This is something you should be able to do on your own.
Another item to add to your spring cleaning list: Dusting off your refrigerator condenser coils, says Hall-Crawford. This will make the unit run more efficiently.
4. Buy a Better Bulb
Compact fluorescent light bulbs (called CFLs) require 75% less energy than traditional (officially called incandescent) light bulbs, and last up to 10 times longer, according to the ASE. Be sure to look for CFLs with the Energy Star label, since these bulbs won't have any buzzing or humming problems, promises Energy Star's Reed. These bulbs now come in smaller sizes (called subcompacts) that can fit into any lamp, and they have a wider color spectrum. According to the ASE, replacing just four well-used 100-watt incandescent bulbs with equivalent 23-watt CFLs will save you $108 over three years. (For a table of equivalent wattages, click here.)
Also, do you still have one of those halogen lamps leftover from your college days? (You know — those tall lamps that didn't cost much more than a couple of pizzas to buy?) Do yourself a favor: Dump it. Not only are these dangerous fire starters, but their bulbs, which can generate temperatures of 700 to 1,100 degrees Fahrenheit, are energy hogs as well, says Reed. That makes them considerably less inexpensive than they seemed back in the day.
5. Join the Fan Club
As many as 73% of homes have ceiling fans, according to the International Housewares Association. Are you using yours? A ceiling fan can balance out a room's temperature, allowing you to turn down the AC and still feel cool, says Reed.
6. Unplug
Even when all of your home electronics are turned off, many continue to suck down energy. The main culprits: televisions, VCRs, DVD players, stereos, phones and microwave ovens. (Generally, anything that has a clock, a remote control or an on/off light falls into this category.) In fact, idle TVs and VCRs cost U.S. consumers $1 billion annually, or $30 per household, according to ACE. One solution: Plug the items that can truly be turned completely off into a power strip, and then use that as your on/off switch.
7. Fight Leaks
Your pricey, cooled air might be leaking right out of your house. Leaky windows and ducts (which carry the air to the rooms in your home) are two ways that cool air can be lost, making your air conditioner work harder. "We have found that as many as 70% of ducts are installed with leaks," says Reed. Having your ducts properly sealed and insulated could save you as much as 10% in energy costs, according to the EPA. So if you think your duct system is faulty, try to have it checked out by an HVAC (heating, ventilation and air-conditioning) technician. (One way to find one is to visit the North American Technician Excellence web site, says Reed.)
8. Be a Savvy Shopper
By far the biggest way to save is to invest in energy-efficient appliances. When shopping around, look for the Energy Star label. There are more than 35 product categories that qualify.
Of course, replacing your appliances (particularly the biggies, like a refrigerator or dishwasher) will require an upfront investment. But if you've got an old clunker, you could recoup your costs quickly. For example, if your central-air-conditioning unit is more than 10 years old, replacing it with an Energy Star-rated model could cut your operating costs by 40%.
June 9, 2006
WITH SUMMER FINALLY kicking into gear across the country, you can almost hear the gentle hum of air conditioners ratcheting up. And with it, climbs home energy bills.
These days, the average household spends $1,400 annually on energy (based on electricity and gas usage), according the Environment Protection Agency. But much of that, say energy conservationists, is money wasted.
The good news: Cutting back doesn't mean you need to be a tree-hugging naturalist, suffering stoically as you read by candlelight. These days, you can do right by the environment and your pocketbook — without any major lifestyle sacrifices. In fact, by taking some relatively painless steps, you can cut your bills by one-third or more.
Here are eight easy ways to save this summer (including a few tips that will work year-round).
1. Upgrade Your Thermostat
Are you the type who likes to chill after a sticky workday by coming home to a house that's as cool as a meat locker? You can live this dream and cut your energy costs by investing in a programmable thermostat. These handy little devices allow you to cool your home at different temperatures at specific times, explains Mark Hopkins, acting co-president of the Alliance to Save Energy (ASE).
So you could, for example, turn down the AC during the day, when your family is away from home — and crank it up again 30 minutes before the first family member returns. Or, you could turn it down during the wee hours of the morning, when no one's likely to notice a shift in temperature.
Installing a programmable thermostat shouldn't set you back more than $100 to $150 — and the energy savings can be substantial. According to the U.S. Department of Energy, you could cut your heating and cooling bills by 10% annually just by turning your thermostat back 10% to 15% for 8 hours a day.
2. Go Green
OK — this will require a bit of effort on your part, but the returns are twofold: Planting just three shady trees around your house not only can whack $100 to $250 off your annual heating and cooling costs, according to the DOE, but will most likely make your yard more attractive, to boot. (Leafy trees can shield the house from direct sunlight, keeping temperatures down, while still permitting sunlight to hit your house during the winter months.)
Not interested in nurturing your green thumb? Simply pulling the shades (or drawing your curtains) can cut energy costs as well, says Mel Hall-Crawford, an energy efficiency expert at the Consumer Federation of America.
3. Keep It Clean
Keeping your air-conditioning unit clean and in peak performance is another big money saver. To kick the summer off, your AC unit should have a professional tune up (expect to pay somewhere between $90 and $120), says Wendy Reed, an Energy Star spokesperson at the EPA. (Energy Star is a joint program run by the EPA and the DOE that, among other things, deems certain products energy-efficient.) And air-conditioning filters (regardless of whether you have central air or an individual unit) should generally be checked every month or so to see if they need cleaning or replacement. This is something you should be able to do on your own.
Another item to add to your spring cleaning list: Dusting off your refrigerator condenser coils, says Hall-Crawford. This will make the unit run more efficiently.
4. Buy a Better Bulb
Compact fluorescent light bulbs (called CFLs) require 75% less energy than traditional (officially called incandescent) light bulbs, and last up to 10 times longer, according to the ASE. Be sure to look for CFLs with the Energy Star label, since these bulbs won't have any buzzing or humming problems, promises Energy Star's Reed. These bulbs now come in smaller sizes (called subcompacts) that can fit into any lamp, and they have a wider color spectrum. According to the ASE, replacing just four well-used 100-watt incandescent bulbs with equivalent 23-watt CFLs will save you $108 over three years. (For a table of equivalent wattages, click here.)
Also, do you still have one of those halogen lamps leftover from your college days? (You know — those tall lamps that didn't cost much more than a couple of pizzas to buy?) Do yourself a favor: Dump it. Not only are these dangerous fire starters, but their bulbs, which can generate temperatures of 700 to 1,100 degrees Fahrenheit, are energy hogs as well, says Reed. That makes them considerably less inexpensive than they seemed back in the day.
5. Join the Fan Club
As many as 73% of homes have ceiling fans, according to the International Housewares Association. Are you using yours? A ceiling fan can balance out a room's temperature, allowing you to turn down the AC and still feel cool, says Reed.
6. Unplug
Even when all of your home electronics are turned off, many continue to suck down energy. The main culprits: televisions, VCRs, DVD players, stereos, phones and microwave ovens. (Generally, anything that has a clock, a remote control or an on/off light falls into this category.) In fact, idle TVs and VCRs cost U.S. consumers $1 billion annually, or $30 per household, according to ACE. One solution: Plug the items that can truly be turned completely off into a power strip, and then use that as your on/off switch.
7. Fight Leaks
Your pricey, cooled air might be leaking right out of your house. Leaky windows and ducts (which carry the air to the rooms in your home) are two ways that cool air can be lost, making your air conditioner work harder. "We have found that as many as 70% of ducts are installed with leaks," says Reed. Having your ducts properly sealed and insulated could save you as much as 10% in energy costs, according to the EPA. So if you think your duct system is faulty, try to have it checked out by an HVAC (heating, ventilation and air-conditioning) technician. (One way to find one is to visit the North American Technician Excellence web site, says Reed.)
8. Be a Savvy Shopper
By far the biggest way to save is to invest in energy-efficient appliances. When shopping around, look for the Energy Star label. There are more than 35 product categories that qualify.
Of course, replacing your appliances (particularly the biggies, like a refrigerator or dishwasher) will require an upfront investment. But if you've got an old clunker, you could recoup your costs quickly. For example, if your central-air-conditioning unit is more than 10 years old, replacing it with an Energy Star-rated model could cut your operating costs by 40%.
Thursday, May 31, 2007
Sellers Tips: Setting The Stage Sells Your Home
by Marcie Geffner
The age-old observation that "you never get a second chance to make a first impression" certainly applies when it comes to attracting buyers to a home for-sale. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying.
How can you ensure that your home will make the best impression possible? Here are six tips for savvy home sellers:
1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.
2. Clear out the clutter. Real estate agents say buyers won't purchase a home they can't see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won't be able to see your home. Get rid of anything you don't need or use. Fill up your garage or rent some off-site storage space if that's what it takes to clear out your home.
3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.
4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice - and likely magnify - minor maintenance problems you've ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you've taken good care of your home.
5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.
6. Get a buyer's-eye view. Walk up to your home and pretend you've never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!
The age-old observation that "you never get a second chance to make a first impression" certainly applies when it comes to attracting buyers to a home for-sale. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying.
How can you ensure that your home will make the best impression possible? Here are six tips for savvy home sellers:
1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.
2. Clear out the clutter. Real estate agents say buyers won't purchase a home they can't see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won't be able to see your home. Get rid of anything you don't need or use. Fill up your garage or rent some off-site storage space if that's what it takes to clear out your home.
3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.
4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice - and likely magnify - minor maintenance problems you've ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you've taken good care of your home.
5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.
6. Get a buyer's-eye view. Walk up to your home and pretend you've never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!
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