The news on home values has been consistently bad for almost two years.  Articles are written about the price of homes on a daily basis and everyone has to have been exposed to these facts.  Yet, somehow, homeowners who have decided to sell their homes, continue to believe that all of those facts do not refer to their home.  They actually believe that their home has retained its’ value and, in some cases, they feel that their homes have actually increased in worth over this period of time.

Real estate professionals are consistently reporting how difficult it is to get sellers to understand today’s market and the current value of homes.  They continue to believe that they know the true worth of their home and expect it to be listed at that price.  When all arguments fail, the listing agent generally goes ahead and lists the price that the homeowner wants.  The house, of course, sits on the market without a potential buyer.

One realtor reported on a customer who fought her about the price.  It took Comparative Market Analysis figures, an appraisal, and a great deal of persuasion to get the homeowner to realize that his price was not in line with today’s values.  They wanted their home listed at $525,000 and it recently sold, after only two weeks on the market, for $380,000.  This is an extremely large drop in price but it is happening everywhere.  Of course, the upside of this situation is that they will get a lot more home for their money today when they go to purchase another home.  The only ones who truly are benefiting from the current housing market are the first-time homebuyers if they can obtain the necessary financing.

As strange as it may seem, having a lovely home in a great location that is priced right does not necessarily translate to a quick sale for the owner. The missing link is that, if high speed internet is not available in the area, many people will not even consider purchasing the home. A number of people have sold their home in one area and moved further away from work and school just to be certain that they would have access to high speed internet.

Of course, the only person who can truly understand this is someone who has lived with dial-up for many years and knows the frustrations it can bring. However, many of those who already have high speed access do realize that they would never want to revert back to dial-up, so they, too, would not consider a home that did not have availability to good internet service.

The real estate market has reached the point where areas with faster service become the ideal “location”, and those with slower service move down on the list of favorites. Location used to be determined by such factors as school district ratings, easy access to work, beautiful neighborhoods, and proximity to family. Today, however, you must add to that list high speed internet access. It is a requirement for many and may just be moving up to the top of the list for prime locations.

Once you have made the decision to sell your home, your next step should be to increase its market appeal.  The major area to concentrate on is the kitchen.  The appeal of the kitchen can make or break a sale.  Here are some ideas for affordable ways to freshen up your kitchen area.

A new coat of paint can make a large difference in the appearance.

Be sure that all counters are clear of clutter and consider installing some useful storage options.

Think about new lighting for dark corner areas.

Attractive window treatments can greatly improve the appeal of the room.

Remove all personal clutter and invest in a few new decorative items.

When you are ready to put the house on the market, or are looking for a new home for yourself, consider these suggestions:

Understand your local market so that you can be certain your home, or the one you are considering purchasing, is priced right.

Look for cosmetic repairs and do the work yourself to save money.

Be aware of which features will help sell a home quickly.

Do not procrastinate if a quick sale meets your needs.

When considering a purchase, be sure you have a realistic budget in place.

Order a professional inspection of the property being considered and be well aware of your financing options.

It is a generally accepted practice to use CMA’s (Comparative Market Analysis) information in arriving at an accurate selling price for a property that is for sale.  This is the practice of analyzing similar properties that have sold over a specific period of time and using their selling price as a means of determining the value of a specific piece of property.

In today’s market environment, it has become much more imperative that the market analysis be based on very recent sales.  Because the market has rapidly decreased in value, only sales information for the past 90 days is considered acceptable by banks and mortgage companies considering the financing of a property.  In the past, comparative pricing from the past year was more than acceptable.  The current market fluctuation has determined that this information must be much more current so that it reflects an accurate picture of the market in that specific area as it is today. 

One of the current issues is that, if a person signs a contract for a piece of property and then has an appraiser value the property, a much lower appraisal will cause the buyer to request a lower price, even after the contract has been signed.  This is happening on a regular basis and home values are decreasing because of it.

CMA’s have long been a tool used to evaluate the current value of a property.  Only today have the restrictions become so rigid, requiring that the sale used for comparison be very current.  In some cases, appraisers are coaxing real estate agents to give them sales prices that have not yet been recorded so that they can include them in their CMA’s.

We’ve been hearing for years about employees who show many symptoms of illness while at the office, but feel just fine soon after they leave the building.  No, they are not allergic to their jobs.  Many, however, are getting ill from their working environment.  Buildings containing mold, emitting chemicals from carpeting and paints, and those that have poor ventilation systems are often known as “sick buildings”.  Unfortunately, it is very difficult to prove that your building is making you sick, so many employees suffer in silence so they can retain their positions.

Even though these illnesses are often valid, they are generally met with suspicion.  It should be within your rights to ask that the building be tested for air quality if you find you are only sick while in this building.  Consider trying to work from another location if possible to test if the problems still exist. 

An employee who associates illness with their job performance is likely to have lower morale which will eventually lead to higher turnovers of employees.  It is in the employer’s best interest to resolve the issue so that employees will again be motivated to work at maximum efficiency.    

Senior citizens interested in the possibility of obtaining a reverse mortgage for their homes may be very happy about a new law which lowers the fees on reverse mortgages, while raising the amount that homeowners can borrow against.  These new provisions took effect on November 1st and a large increase in applications is anticipated.

Mostly available to people 62 and older, reverse mortgages allow homeowners to convert the equity they have in their home into cash.  Rather than making mortgage payments to the bank each month, the reverse is taking place.  The bank sends money to the homeowner.  There is a choice of a lump sum, a line of credit, or monthly payments.  When the homeowner dies, moves, or sells the home, the loan is due and payable.  If in some cases the sales price is less than the balance, the homeowner is not required to supply the difference. 

Limits in the past have ranged from $200,000 to $362,790, but the new law has increased the limit to $417,000.  The age of the homeowner is a factor in how much can be borrowed.

In the past, an origination fee of 2% was charged.  Under the new law, however, origination fees will be calculated at 2% of the first $200,000 and 1% on the rest up to a cap of $6,000.  There are additional fees involved in obtaining this type of mortgage and costs can run as high as 10% of the home’s value.  If a person is planning to move within a short period of time, a reverse mortgage would not be right for them.  However, if a homeowner is committed to remaining in their home forever, this could be an excellent opportunity for them to live more comfortably. 

There are many ways to reduce energy costs. The following could well result in possibly a 30% reduction in your heating and cooling costs so it is definitely worthwhile considering these suggestions:

An HVAC system that is older than 10 years is probably not running very efficiently. You should consider updating to a more energy-efficient current unit.

Insulation should always be checked and added at the beginning of the fall season.

Be sure that you have closed off the space between the foundation and cladding. Many overlook this area and it has the potential to be very costly.

Confirm that you have vapor barriers underneath the crawl space and over insulation in the attic.

If you have old and poor fitting windows and doors, consider replacing them with today’s energy efficient products. If this expense is not realistic right now, consider sealing up all of the gaps with caulk and hanging very heavy insulated curtains or window shades as a temporary solution.

Check for drafts by electrical switches and outlets and use additional insulation if necessary to prevent cold air from entering the room.

Check weather stripping and replace any caulking that is no longer providing the required seal.

Consider Energy Star appliances if you can possibly afford to replace the existing ones. If this is not feasible, be certain that you only wash full loads of dishes and clothing.

Replace air filters regularly as dirty filters will cut down on efficiency.

Consider investing in a programmable thermostat which will automatically set the proper temperature and eliminate waste.

Today’s economic problems have caused many of us to suddenly realize that we have to change our priorities. Other countries have long said that Americans are pampered and spoiled. Maybe they have been right. Today, however, most of us have seen what is happening to our economy and have decided to tighten our belts and do without many of what we thought were necessities. Health insurance is definitely a necessity, but in other areas today, we have not become cheapskates, we are simply “in style” by saving money wherever the opportunity exists.

Many people have gone from shopping the “current fashions” in a store to perusing the “sale rack”. Saving money on something you really like is a fun experience. I just love when I feel as though I have gotten a great deal on something.

Many people are eating at less expensive restaurants and waiting for movies to come out on DVD’s as opposed to spending a great deal of money on movie theaters and popcorn. The current thought is that “cheap is chic”. Discussing great savings is the “in” thing to do. Grocery shoppers are using coupons in record numbers while many are purchasing store brands for additional savings. Buying in bulk at warehouse stores is definitely a cost saving move. Brown bag lunches are “in”, especially for professionals between 35 and 54.

A McDonald’s franchise owner of three stores recently stated his strategy for attracting more customers. In addition to company promotions, he decided to add bacon onto the $1.00 double cheeseburger and sell it for $1.69. His customers love it and his profits are higher than ever. This was definitely a good decision on the part of the franchise owner.

There is hundreds of cost saving measures that we can take to help us balance our budget. Look around and see what is available to help your family live better and save money at the same time. The opportunities are there, just keep searching and you will find what is right for your family.

There are many ways to save energy in your home and these are just a few ideas of things you can do. Remember, when saving energy, you are also saving money. This is definitely a win-win situation for every homeowner.

Allow nature to assist in energy savings as much as possible. Leave windows unobstructed so the natural warming sunlight can help to heat your home.

When heating a room, close doors and curtains so the heat remains in the intended area.

If you are not using specific heaters and vents, turn them off during this period of time.

If you are using a portable heater in your home, be sure to locate it far away from the windows.

If a fireplace is not in use, block it off so heat is not lost.

Heat should only be running in your home when absolutely necessary. A good investment is the purchase of automatic thermostats and heaters with timers. If you use them correctly, these have the potential to provide substantial savings.

Forego the electric blanket and just add an additional quilt or blanket to the bed for extra warmth.

Be certain that your home is fully insulated and be sure that you have draft excluders on all of the doors.

These are just a few tips that, if incorporated into your everyday life, can help save both energy and money.