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| Whats Up in Bullhead City |
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Large Sunridge Estates Lot Great lot for building your dreams in Homes-Only area of Sunridge Estates. http://www.jrhastings.com/3472.html |
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River Close - Fully Furnished Just 3 blocks to Colorado River access. 1,400+ sq ft Fully Furnished - Just bring your Toothbrush ! http://www.JRHastings.com/1368.html |
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ADULTS 55+ PARADISE 3 Bedroom Home on Corner Lot in Gated 55+ Community with Clubhouse, Pools & Spas http://www.jrhastings.com/2350.html |
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INVESTORS DELIGHT 3 office condos on Rainbow Drive – one of the two remaining locations for the new bridge to Laughlin https://www.wardexre.com/war/maildoc/a003mF1756.html |
Articles and Advice |
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Rule of Thumb Interesting Interest Rate Information By John R. Hastings Here's a tidbit most folks probably do not know . . . an easy to remember "Rule of Thumb" that says When mortgage interest rates rise by 1 percentage point buyers lose 10% of their purchasing power. Conversely, when interest rates drop by 1 point a buyer gains purchasing power. However, given that today's mortgage interest rates are the lowest in history I think it is safe to assume that rates are only going to rise in coming months & years. Certainly anyone who wants to buy a home will benefit by moving forward and locking in an interest rate near the current low rates instead of waiting for inevitable rate increases. Case in Point: If a buyer can comfortably afford a mortgage payment of (about) $1,000 per month, in today's market with a 4.5% loan they can carry a $200,000 mortgage. Assuming a 20% down payment this translates into a $250,000 home purchase. If one waits until interest rates rise to 6.5% but wants to keep the mortgage payment roughly the same, the loan amount would drop to $160,000 - so with the same $50,000 down payment the home purchase price would need to be $210,000 or less. At 8.5% the affordable mortgage amount plummets to about $130,000. Mortgage Interest Rate history, as tracked by Freddie Mac since 1971, seems to indicate that we can reasonably expect to see rates easily in the 8.0% - 9.0% range again, creating a large negative impact on potential buyers purchasing power. So . . . What Can One Do? As we have no control over future interest rates nor real estate market values, in my opinion all we can do is be aware of the facts and base our decisions accordingly: Buyers - Qualified Buyers who are wondering if prices may continue to decline and are waiting to find the bottom of the market should ask themselves “Is it likely that real estate values will decline 10% more before interest rates rise 1 or 2 percentage points?” I personally lack the ability to accurately predict whether values will rise, decrease or remain flat in the next year or two. However I am confident that while some prices may slip a little bit more it is unlikely that the slippage will be significant. Prices are currently back down to approximately the pre-boom levels of 2001, while the mortgage rates are the lowest in history. Looks like the odds are high that future interest rate increases will more than offset any possible further price declines. Sellers - Above all else, be realistic. Acknowledge that prices are dictated by Supply & Demand. Understand that Demand for any product requires it be affordable. Demand for real estate varies greatly in different price ranges, not so much because buyers really care what the purchase price is but because they must care about how much their monthly payment will be. The odds of selling your property rise and fall with the size of the pool of potential buyers. Obviously there are far more buyers who can afford $500 a month than there are who can afford $1,500 per month. Ask yourselves “How many years will it take for my property to appreciate 10% in value versus how many months will it be before mortgage interest rates rise 1 or 2 points?” And for most sellers another question becomes “How much will I need to pay for my replacement home today compared to some time in the future?” All sellers want to get the top dollar when they sell, and that fact is completely understandable. However, I also have to say that “top dollar” is a relative term, influenced greatly by time and the ultimate use of the proceeds of a sale. |
| Seven rules for room additions By Paul Bianchina If you're happy with your home and your neighborhood but are craving a little more space, maybe adding on is a better alternative to moving out. Room additions can be a terrific alternative for many homes, adding space for a growing family and adding resale value at the same time. But be forewarned. A good room addition involves a whole lot more than just slapping on some additional square footage. Here are some important rules to keep in mind as your planning gets under way: 1. Know why you're adding on: This is the first rule, and it happens before you lift a hammer. Why do you need to add on? And no fair cheating and saying, "I need more space!" Do you need another bathroom? Bedroom space? A laundry room or mud room? An improved kitchen flow? More space to entertain? Better accessibility due to health issues? More storage? A larger garage or hobby area? The only way the addition will meet your needs is to know what those needs are in the first place. 2. Good additions never look like additions: This is the other top rule of room-addition planning. When you're done, the addition -- no matter what its size or where it's located -- should never look like an addition. The architectural styles of new and existing need to blend. The exterior materials need to blend as well, or at least complement each other. To the extent possible, use the same type of windows, roofing, doors, siding and other materials. If the original home has wood windows, using new vinyl windows in the addition screams "add-on" and lowers the appeal and the value. Don't overlook the need to blend landscaping and hardscaping as well. 3. Out, up, down, or a combination: The how and the where of a room addition is always a fun and exciting challenge for everyone involved. Some homes are situated on larger lots and lend themselves very nicely to adding out. Others seem best suited to adding up by building on a second or even a partial third floor. Some houses are even laid out in such a way that it's possible to excavate under them and add new living space in the form of a daylight basement. Or it could be that a combination of two or even all three of these options makes the most sense for your particular home. Keep your mind open to the possibilities. Work with a good contractor and a good designer and you'll be amazed at what you can come up with. 4. Don't let the interior become an afterthought: I've seen a surprising number of additions that look great from the outside but seem to have no thought put into them on the inside. Flooring doesn't match. Trim doesn't match. Sometimes even the interior floor heights don't match. Remember that how the interior of your addition looks and flows on the inside is just as important as how it looks and flows on the outside. Use the same materials or the same style of materials. Match up ceiling, floor, and wall levels. Here again, no matter how you view the addition, inside or out, it should never look like an addition. 5. Create convenient access: This is another afterthought in a lot of additions. Let's say you have a three-bedroom, one-bathroom house, and you want to add a second bathroom. Typically, that's an addition that's going to have a good payback. But then you build the addition so that the only access to the second bathroom is through the kitchen. You now have a three-bedroom, two-bath house, but since the layout is lousy, you've actually gone backwards in terms of desirability and resale value. Are you going to create a beautiful second-floor master suite that can be accessed only by a tiny spiral staircase from the family room? Is the only way into your great new kitchen via a convoluted hallway that leads through the laundry room? When planning your addition, never lose sight of how you're going to access the new spaces, and make sure that access is both convenient and inviting. 6. Don't overwhelm your lot: Granted, room additions are expensive. So when you're doing one, and all those workers are onsite, there's a temptation to get as much square footage as you can. But don't cram your lot full of house. Remember that open space is important as well, both to you and your family, and, later on, to potential buyers. This is a good time to go back to Rule No. 1 and reconsider the "why" part of your room addition. Don't add space just to add it -- stay focused on your overall goals. 7. Understand the legalities: There are lots of rules and regulations that come into play regarding room additions. These include property line setbacks, zoning restrictions, and restrictions imposed by homeowner associations and architectural review committees. In some historic areas, your addition may have to comply with certain historic guidelines. In other areas, there may even be solar shading restrictions that limit the height or the orientation of your roof line. Be sure you check into all of this before you get too far along with your planning. |
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Market Trends in Local Real Estate By John R. Hastings How’s the Market Doing? Here’s a recap of the current Real Estate Market Statistics & Trends in Bullhead City / Ft. Mohave: CURRENT MARKET STATISTICS Residential Properties Currently Listed for Sale = 768 * Homes Sold in past 12 months = 1347 (average 112 per month) * Homes Sold in past 6 months = 738 (average 123 per month) * Homes Sold Last Month = 123 * Average Interest Rate 30 Yr. Fixed (Last Month) = 4.56% Based on the current inventory of homes listed for sale compared to the rate at which they have been sold over the past six months, we have about a 6 month supply on hand. This supply has held steady for several months and indicates we are back near a balanced market. SELLERS – Good News – Due to the fact that interest rates are at record lows, homes are affordable for many more buyers. BUYERS – You should not wait any longer to make your move, as we all can agree that Interest Rates will climb – the current rates are the lowest in history, and can only go up. MARKET TRENDS & HISTORICAL DATA Homes Sold This Year: January - July ‘10 = 828 * Average days on market = 143 * Median Sales Price = $98,000 * Average Sales Price = $113,316 * Average Sales Price/List Price Ratio = 94.6% * Average Interest Rate 30 Yr. Fixed = 4.90% Home Sales Last Year: January - July ‘09 = 642 * Average days on market = 151 * Median Sales Price = $123,950 * Average Sales Price = $143,641 * Average Sales Price/List Price Ratio = 94.8% * Average Interest Rate 30 Yr. Fixed = 5.07% Home Sales 2 Years Ago: January - July ‘08 = 514 * Average days on market = 159 * Median Sales Price = $157,950 * Average Sales Price = $182,231 * Average Sales Price/List Price Ratio = 94.3% * Average Interest Rate 30 Yr. Fixed = 6.05% It remains encouraging to see the number of units sold this year being ahead of the past 3 years. With record-setting low interest rates the dream of affordable housing becomes a reality. Let’s all hope that those interest rates remain under control and that employment numbers begin to improve quickly. The return to a truly healthy real estate market relies upon both affordable interest rates and a busy fully employed workforce. Keeping the value of long term real estate investments in proper perspective, take a look at these numbers from 2000: Home Sales 10 Years Ago: January - July 2000 = 646 * Average days on market = 156 * Median Sales Price = $68,750 * Average Sales Price = $83,539 * Average Sales Price/List Price Ratio = 96.4% * Average Interest Rate 30 Yr. Fixed = 8.27% Don’t forget – if you or anyone you know needs real estate services to buy or sell - here in Bullhead City or anywhere else - contact me and I’ll get to work for you !! The highest compliment that I can receive is a referral to one of your friends, relatives or business associates. A referral is when you send someone you care about to someone you trust. Thank you for your trust and confidence. (Data reflects residential sales reported to Western Arizona REALTOR® Data Exchange as of 08/02/2010. Interest rate information from Freddie Mac.) |
| Sellers face new dilemma in timing the market By Dian Hymer Some sellers have been biding their time for three years and now wonder if they should continue to wait or bite the bullet and sell now. Karl Case, co-creator of the widely followed S&P/Case-Shiller Home Price index, thinks there's a 50-50 chance that we're at the bottom of the market and that we'll see improvements in the months ahead. Unemployment remains a concern. An increase in the number of new households is predicated on an increase in jobs. Even if we have seen the worst of the recession, most analysts believe the housing recovery could be rocky for years. A quick turnaround is probably not on the horizon. The home-sale market is generally better this year than it was last year at this time. Interest rates are lower by about 1 percent. Mortgages are much more readily available. Home prices have dropped significantly, making it possible for buyers to afford to buy a long-term home. An increasing number of fence-sitters have turned into motivated buyers. However, they are focused on value, condition and location; they aren't overpaying, as they did in 2006. It's still a buyer's market and could remain so for some time to come. Sellers who purchased within the last five years might need to sell for less than they paid. One couple bought a home in Crocker Highlands, a coveted Oakland, Calif., neighborhood. They paid just over $1.1 million in 2005 and made improvements to the property. They sold in 2009, after investing more to prepare the property for sale. They received multiple offers, over the list price. The home sold for $905,000. These sellers weren't happy about the loss. But, their goal was to own only one home. They bought a retirement home near Sacramento and were spending most of their time there. Holding onto the Oakland home was a financial drain, particularly since they were there only part time. They couldn't rent the property out for enough to cover the ownership costs. Another homeowner realized before the recent economic downturn that she couldn't afford to continue to make hefty mortgage payments due to a drop in her income. Emotionally attached to her home that she'd improved over time, she decided not to sell then, which would have resulted in a profit. Instead, she rented the property for a few years and moved in with a friend to lower her overhead. Although the rent reduced her monthly debt load, it didn't cover the carrying costs. When she finally sold in January 2010, prices had dropped to a point that the property sold for less than the amounts of the mortgages secured against the property. To get lender approval on a short sale, the seller had to contribute cash at closing. Clearly, she would have been better off financially if she had sold years earlier. HOUSE HUNTING TIP: Deciding whether to sell now and take advantage of an improved home-sale market or wait for a better time is complicated. First, you need to know the approximate selling price of your home in this market. How much work needs to be done to get the property ready to sell? Does the house have any defects or deferred maintenance that will impact the sale price or make the property harder to sell? If so, this would negatively impact the price. This information can be obtained through your real estate agent. THE CLOSING: Low inventories of good homes in some niche market gives sellers an edge. Even so, you'll be successful in today's market only if you are realistic about the current market value of your home. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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Buyers' Tax Credit Important for Military Service Members By John R. Hastings HOMEBUYERS' TAX CREDIT !! - - The Homebuyers' Tax Credit is still available but unless you are deployed overseas in Active Military Service - you must have had a purchase contract in place by APRIL 30, 2010 - and complete the purchase by September 30, 2010 !! And don't forget it is also AVAILABLE FOR CURRENT HOMEOWNERS WHO ARE "MOVING UP" - Not just for 1st time buyers. Most importantly, qualified Active Military Service personnel have an extra year to take advantage of this credit. See all the latest details on my Web Site: CLICK HERE for more information or visit my web site at http://www.jrhastings.com/8000_tax_credit.html. |
| Legacy wiring sparks questions By Paul Bianchina Q: My wife and I are looking at buying a home that was built in 1955. Some of the wiring is paper wrap. We aren't sure how much. I was wondering if any of the paper wrap was ever made with a ground wire. Also I was wondering about the safety of paper wrap. We have to travel about 750 miles to look at this home and would like to know if it should be a big concern. A: There's no easy answer to this one. Some of the cable you refer to did not have a ground wire, and some of it did. Also, older wiring such as this was not as heat resistant as the jackets used today, and it's not unusual to find wiring that has heat damage to it, especially behind light fixtures. Finally, a house that is more than 50 years old is almost certainly going to have had some remodeling work done, and it's impossible to know what different homeowners, contractors and electricians may have done with the wiring. If you are seriously considering buying the house, you need to have a qualified electrician examine the wiring and determine its condition, as well as determining whether subsequent repairs and remodeling were done correctly. The electrician can also determine if the house is safe and up to current code and, if not, what would be required to get it there. Incidentally, I would suggest the services of a licensed electrician for this -- not a home inspector. Because the house is so far away, if you are working with a real estate agent in that city perhaps he or she could arrange to have the electrical evaluation done for you and save you a trip. That way, if the work is too extensive you can have the opportunity to reevaluate your purchase plans, or perhaps talk with the sellers about a price reduction. Q: We remodeled our kitchen a few years ago. We replaced the recirculating stove hood and installed a better system that vents to the roof. I don't recall if they used six- or eight-inch piping but it was the size recommended by the manufacturer. The total amount of piping is probably about 12-15 feet from fan to roof vent. I think the bigger problem is that this ventilation piping takes a few turns via a few 45-degree turns before it exits the roof. The fan mounted in the stove hood was very powerful (based on the manufactures specs), but I think the turns and pipe lengths are impeding the airflow and it's an inefficient system. The amount of air that leaves the stove vs. the noise it produces makes it easier to tolerate the smoke. Reconfiguring the vent piping is nearly impossible, although access to the attic is very possible. I was considering a rooftop ventilator. Instead of attempting to push out the air through a fan, this device works more like a vacuum and pulls the air out from the roof. A little extra power and noise would not be a problem because it would be mounted outside on the roof and the existing vent pipe would remain. The old fan would come out and the metal filters would remain. Any recommendations or am I wasting my time? A: First, let's look at the situation with the existing range hood. Contained within the instructions and specifications that came with the hood will be a chart of some sort that lists the maximum length of duct that is allowable for that particular unit. The chart will also tell you how much equivalent length is taken up by a fitting -- for example, it may say that an elbow is the equivalent of four additional feet of duct. So if you add up the actual number of feet of duct and then factor in the number of feet that's added by the fittings, you can determine if what you have exceeds what the manufacturer recommends. You mentioned "they used," so I assume you had this done by a contractor. If the contractor did not install the hood to the manufacturer's specifications, you may have some recourse there for getting them to make some repairs or adjustments. All that being said, however, you may still not get the type of exhaust results you're hoping for with the existing hood, even if the duct is redone to fall within the manufacturer's specs. This leads us to your idea of an exterior vent motor, which I think is a great idea. (I've had one for years with very good results). Exterior vent motors that pull instead of push work very well, for the two reasons that you mention. Because they're outside, the motors can be considerably larger than what's possible inside a range hood. And the exterior mounting means that the noise the larger motor generates is not nearly as much of an issue. It's why you almost always see restaurants and other commercial applications utilizing exterior vent motors. The downside is typically one of cost. The exhaust motor is more expensive, and it requires more labor to cut and flash it into the roof, and to run the necessary ducting and wiring. If an exterior vent motor fits into your budget, then I would certainly recommend making the change. |
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