Yajnesh Rai

Statewide PSA Warns Real Estate Scams Put You at Risk | Realtor Magazine

The growing threat of wire fraud scams targeting real estate transactions is prompting the Utah Division of Real Estate to launch a statewide campaign in warning the public. A real estate email scam is trying to dupe unsuspecting buyers out of their down payment right before settlement.

The Utah Division of Real Estate has produced a public service announcement video that is airing on local television stations as well as a statewide billboard campaign through the end of August.

The email scam—affecting transactions across the country—targets real estate agents’ and title companies’ email accounts. Scammers learn when transactions are scheduled and, usually within 24 hours of a transaction closing, they’ll use the email account to send new wiring instructions to the buyer, seller, title, or escrow agent, lender, real estate agent, or broker. The new wiring instruction will have the funds directed to a bank account outside of the country. After the funds are transferred, they are usually quickly dispersed to multiple banks and quickly become untraceable and unrecoverable.

More than $149 million was lost by consumers nationwide in 2018 from this type of email real estate fraud, according to a Federal Bureau of Investigation report.

“All parties in a real estate transaction should be very wary of any last-minute changes over email,” says Jonathan Stewart, director of the Utah Division of Real Estate. “Once criminals gain access to your email account, they can make anything sound legitimate. We hope by educating consumers about this statewide email scam, we can prevent Utahns from becoming victims.”

8.2M Could Have Lower Mortgage Payments | Realtor Magazine

Mortgage rates are dropping, giving millions of homeowners an opportunity to lower their monthly payments. An estimated 8.2 million borrowers could refinance and potentially lower their monthly payments by at least 75 basis points, estimates Black Knight, a mortgage software and analytics firm. This marks the largest percentage of homeowners who stand to benefit from lower mortgage rates since the end of 2016.

Last week, the average 30-year fixed-rate mortgage reached a two-and-a-half-year low of 3.73%, Freddie Mac reports.

The average borrower stands to save about $266 per month on their mortgage by refinancing, according to Black Knight. About 1.5 million borrowers—or 35% of those who took out their loans last year—could benefit from refinancing, the report notes. Refinancing can lower monthly payments and also provide access to money for homeowners who have substantial home equity. About 44 million borrowers have at least 20% equity in their homes. The average amount available to access is $136,000, Black Knight reports.

Borrowers, however, are being more conservative in tapping into home equity than in years past. About $54 billion was withdrawn in home equity in the first quarter of this year—the lowest amount in four years. Black Knight reports that less than 1% of available equity has been withdrawn.

Real Estate Pros Reveal 3 Common Landscaping Mistakes | Realtor Magazine

Curb appeal is a big deal in real estate, and great landscapes can help get potential buyers to the front door. But real estate pros say they repeatedly see how landscapes can turn off would-be buyers.

Real estate professionals recently revealed to Apartment Therapy some of the top landscaping mistakes they most often see, including:

1. Planting trees too close to the home.

Homeowners may not realize how big a tree will grow as it matures and plant it too near the property. “Plant them several feet away from your home so their limbs won’t rub against your home,” Melissa Okabe, a real estate professional at Alta Properties in Los Angeles, told Apartment Therapy. “Overhanging limbs can also damage the roof, and spreading roots might damage the foundation.”

5 Ways to Upgrade a Landscape for Less Than $1,000

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Match the Curb Appeal to the Home’s Style

2. Failing at good yard care.

Yards require upkeep. “Sellers should always trim and thin trees and bushes so the home is the focal point,” says Nick Meyer, a real estate pro with EQ1 Real Estate in San Jose, Calif. They should “pull weeds, mulch the flower beds for a clean aesthetic, and add a pop of color with flowers, especially in areas that can accent the front door and walkways. It should all be done in a manner that is substantial enough to not look like a quick-flipped property.”

3. Not following the terrain.

Another common mistake real estate pros see is owners who are new to an area will plant what they like or grew up in their yards, not taking into account their new location. “The biggest mistake I see people make with landscaping is trying to create what they had ‘back home,’” Tamara Heidel, a broker at Heidel Realty in Las Vegas, told Apartment Therapy. “To compensate for the dry climate, I have seen people ‘plant’ fake flowers. Fake grass has become very popular here too. Embracing the desert with all its natural beauty can be tough for people coming from a greener environment, but your yard should fit into the landscape.”

Incomes Needed to Buy a Home in Every Part of America | Realtor Magazine

In the nation’s priciest areas, you’ll need to be in the top 20% to 30% of household earners to afford a median-priced home, according to a new study by Zoocasa, a real estate website.

Researchers evaluated how much income households need to qualify for a mortgage on a median-priced home in 35 of the largest cities in the U.S. They factored in a 20% down payment, a mortgage rate of 4.5%, and a 30-year fixed-rate mortgage.

The top three most accessible housing markets in the U.S., where median-priced homes are affordable to 80% of the residents, according to the study, are:

• Detroit: A median-priced home of $85,000 could be purchased with an income of $14,772.
• Columbus, Ohio: A $157,000 median-priced home requires a $27,276 income.
• Oklahoma City: The area’s median $170,000 home could be purchased with a $29,544 income.

On the other hand, the least affordable cities tended to be in California. San Francisco topped Zoocasa’s list, with a median home price of $1,418,500, which requires buyers to have an income of $246,432 to buy a home. In San Jose, Calif., buyers would need an income of $177,204 to buy a $1,020,000 median priced home. Buyers in Los Angeles would need to earn $147,672 to buy a median priced home of $850,000.

 

© Zoocasa

Mortgage Rates Haven’t Been This Low Since 2016 | Realtor Magazine

© REALTOR® MAGAZINE

 

For the seventh time in the last nine weeks, the 30-year fixed-rate mortgage dropped, reaching the lowest average since November 2016, Freddie Mac reports in its weekly mortgage market survey.

“While the industrial- and trade-related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Through late June, home purchase applications improved by five percentage points compared to the previous month. In the near term, we expect the housing market to continue to improve from both a sales and price perspective.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 27:

• 30-year fixed-rate mortgages: averaged 3.73%, with an average 0.5 point, falling from last week’s 3.84% average. Last year at this time, 30-year rates averaged 4.55%
• 15-year fixed-rate mortgages: averaged 3.16%, with an average 0.5 point, falling from last week’s 3.25% average. A year ago, 15-year rates averaged 4.04%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.39%, with an average 0.4 point, falling from last week’s 3.48% average. A year ago, 5-year ARMs averaged 3.87%.

Older Homeowners Turn to Equity for Retirement | Realtor Magazine

The equity of homeowners ages 62 and older has reached an all-time high, according to the latest index reading from the National Reverse Mortgage Lenders Association report. Seniors saw their housing wealth grow by 2.7% or $104 billion in the first quarter of this year, reaching a $7.14 trillion record.

The increase in elderly homeowners’ wealth was mostly attributed to an estimated 2.4%, or $110 billion, increase in senior home values.

As older owners find greater equity, they’re starting to rely on it to help fund retirement, according to NRMLA.

“Reverse mortgages have become an essential component for addressing a huge problem for many Americans—funding retirement,” says NRMLA President and CEO Peter Bell. “More than 1.12 million families have used a reverse mortgage alongside side their 401(k)s, IRAs, savings, investments, Social Security, Medicare, and Medicaid to cover life’s daily expenses, so they could live more financially secure lives. As with all major financial decisions, a reverse mortgage should be part of an overall strategic plan, with input from knowledgeable professionals, and family members who may be impacted.”

Reverse mortgages are available to homeowners ages 62 and older who have significant home equity. These mortgages allow owners to borrow against the equity in their home without having to make monthly principal or interest payments. The outstanding balance is not due until the last borrower leaves the home, sells, or passes away. However, these loans do come with risks. Homeowners are encouraged to talk to with financial planners to evaluate the risks of these loans.

3 Living Room Design Fads to Watch | Realtor Magazine

The living room is one of the most popular and central areas in a home. And a few easy updates can instantly transform it into an inviting space.

Apartment Therapy recently interviewed interior designers to learn some of the latest trends in living room design. Here are a few trends they noted:

1. Offer up a more relaxed vibe.

The living room is getting less formal in its design, moving away from some of the modern straight edges that have been dominating in recent years. “This year, you’ll see living rooms that feature furnishings with relaxed, natural textures (read: a whole lot of rattan and cane) and whimsical, organic shapes, such as curvy or rounded edges,” Caitlin Murray, founder and interior designer at Black Lacquer Design, told Apartment Therapy. “Light, airy fabrics like linens and sheers will be layered in and the outside will creep outdoors a bit by way of botanical and floral patterns.”

2. Go for earth tones.

Natural elements are being infused into more living room designs. That means more wood floors, and organic materials and lots of plants. Try adding more natural textures, such as rattan side tables, untreated woods, natural fiber textiles, and live edge wood surfaces, says Amber Dunford, lead stylist at Overstock.com.

3. Mix it up.

Don’t get too matchy with your decor. A variety of chairs is better than coordinating ones. “These days it’s all about the mix,” says Donna Garlough, style director at Joss & Main. “We’re definitely moving away from matched living room sets and pairing streamlined sofas with funky safari-style leather-and-wood chairs or low-slung armless chairs.”

Remodeling Clients Who Put Style Over Function Hurt Resale | Realtor Magazine

The era of real estate-focused reality television is encouraging too many homeowners to put aesthetics before function in their remodeling projects, industry experts note in a recent Forbes.com article. For example, the trend toward no-door kitchen cabinetry, which has been made popular by home improvement shows, isn’t a smart choice for a homeowner who isn’t a neat freak or who doesn’t have matching dishes.

“Everyone wants a kitchen or bathroom that looks like it belongs in a showroom, but when you’re remodeling, there is such a thing as getting too into aesthetics,” the Forbes.com article reads. “If you make your remodel look magnificent but forget to take function into account, odds are good that you’ll be itching to remodel again sooner rather than later.”

Get Your Clients Ready for a Renovation

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Top Remodeing Projects at Resale: NAR’s Remodeling Impact Report

Experts suggest choosing timeless updates that can stand the test over many design cycles. Remodeling experts also say it’s critical to put function first before embarking on a home improvement project. That may mean having to let go of a few aesthetic details in the process if they don’t work in your home style, are beyond your budget, or just don’t make sense for your lifestyle.

Before taking on a remodel, experts recommend that homeowners ask themselves: How does this space function, and what do I wish was different? Will a renovation change how I use the space then?

Another common problem remodelers see often: skipping out on a permit. Obtaining a proper permit for the renovation could ensure fewer “function” issues after the work is complete, contractors say. Inspections of the renovation by local authorities are also crucial when an owner decides to sell later. Any issues with the work could derail a sale if they haven’t been addressed. A permit also protects the homeowner: A buyer who gets hurt as a result of unapproved work in the home could successfully sue the seller.

For homeowners who embark on home remodeling projects themselves, the responsibility of filing and getting a permit for the work falls on them. A professional contractor can help navigate the process and ensure everything is up to code.

 

© Houzz

Freddie Debuts Remodeling Loan for Fixer-Upper Buyers | Realtor Magazine

As homes age, more homeowners are looking to remodeling to spruce up their properties. Of the nation’s stock of 137 million units, nearly 80% are at least 20 years old, and 40% are at least 50 years old.

Freddie Mac says its new mortgage product is to help home buyers finance or refinance fixer-uppers. Eligible buyers will be able to finance the purchase of their home and the cost of renovations into a single-close mortgage.

“Research indicates a large number of older homes need repair and renovation, either to meet the needs of current owners or as a viable option for new home buyers,” says Danny Gardner, Freddie Mac’s senior vice president of single-family affordable lending and access to credit. “The ‘ChoiceRenovation’ solution gives borrowers the opportunity to make improvements, renovations, and upgrades to a home using a purchase or no cash-out refinance loan that will be eligible for sale to Freddie Mac. This provides the borrower with a convenient cost saving option for financing renovations.”

Borrowers can also use the ChoiceRenovation mortgage to renovate and repair a property that has been damaged in a natural disaster or for renovations that will help the borrower prevent damage from a future disaster, such as storm surge barriers, foundation retrofitting, or retaining walls.

Remodeling projects have been growing. BuildFax reported this week that markets like Los Angeles, Miami, Philadelphia, Chicago, and Washington, D.C., are seeing some of the most significant increases in remodeling activity. 

Gardner says Freddie Mac is launching the new mortgage to offer more flexible financing options in responding to “the increasing age of existing housing stock, the growing number of millennial and other first-time home buyers looking for more affordable homebuying options, and the increase in retirees opting to age in place.”

Would-Be Sellers Appear Ready to Boost Inventory | Realtor Magazine

There’s a fresh sign that more inventory may be coming to the market, as homeowners deepen their faith in selling. The percentage of consumers who are “strongly” optimistic that now is a good time to sell hit 46% in the second quarter of this year, a significant increase from the 37% who said the same thing in the first quarter, according to the National Association of REALTORS®’ Housing Opportunities and Market Experience Survey, which was released Wednesday.

Home prices have begun moderating in recent months, which may be prompting homeowners to consider selling sooner in order to cash in before prices go any lower. “With home price appreciation slowing, home sellers understand the days of large price gains from holding an extra year are over,” says NAR Chief Economist Lawrence Yun.

Homeowners have been putting off a move in recent years, reluctant to give up low interest rates on their current loans and fearing the difficulty of finding another home to buy amid an inventory crunch. The inventory problem, though, could be eased if more would-be sellers decide to put their homes up for sale.

Other findings from the HOME Survey include:

• Not just seller optimism. More Americans also believe now is a good time to buy. Thirty-eight percent of respondents to NAR’s survey say they “strongly agree” that now is the right time to purchase a home, and 27% “moderately agree.” Thirty-five percent say it’s not a good time to buy, according to the survey.
• Confidence in the overall economy. A rosier economic outlook may be generating some of the optimism in the housing market. Fifty-five percent of consumers now say they think the economy is improving, up from 53% in the first quarter of 2019. Consumers who are the most upbeat about the economy tend to earn $100,000 or more and reside in rural areas, the survey shows.
• Generation X offers important clues. The most notable change in consumer economic perceptions, Yun says, is among Gen Xers, who have tended to face the most financial pressures in recent years compared to other age groups. Fifty-three percent of Gen Xers say they believe the economy is improving, up from 50% in the first quarter. “Many in the Generation X population find themselves needing to purchase multigenerational homes,” Yun says. “Also, they may be feeling financial stress from caring for aging parents and children of all ages. Nonetheless, they have an optimistic outlook about the future.”
• Mortgage rates boost sales. Overall, of the respondents surveyed who don’t currently own a home, 27% say they believe it would be difficult to qualify for a mortgage due to their financial situation; 30% said it would be somewhat difficult to qualify. Mortgage affordability showed some improvement in the second quarter, and the trend likely will continue, Yun says. “Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters.”